Document:

ex_200747.htm

Exhibit 10.1

 

SECOND AMENDMENT TO NOTE PURCHASE AGREEMENT

 

 

THIS SECOND AMENDMENT TO NOTE PURCHASE AGREEMENT (this “Second Amendment”) is entered into as of August 19, 2020 by and among ONTRAK, Inc., a Delaware corporation formally known as CATASYS, Inc. (the “Company”), the Purchaser signatory hereto and GOLDMAN SACHS SPECIALTY LENDING GROUP, L.P., as collateral agent for the Purchasers (in such capacity, the “Collateral Agent”).

 

RECITALS

 

A.      The Company, certain subsidiaries of the Company, the Purchaser and the Collateral Agent are parties to a certain Note Purchase Agreement, dated as of September 24, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the “Note Purchase Agreement”; capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Note Purchase Agreement), pursuant to which the Purchaser has agreed to purchase the Notes issued by Company;

 

B.     The Company has requested an amendment to the Note Purchase Agreement in relation to the Company’s issuance of its [9.50]% Series A Cumulative Perpetual Preferred Stock (the “Series A Preferred Stock”) and, subject to the terms and conditions hereof, the Purchaser (being the sole Purchaser under the Note Purchase Agreement) executing this Amendment is willing to do so;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, and intending to be legally bound, the parties hereto agree as follows:

 

A. AMENDMENTS

 

1.     Section 1.1 of the Note Purchase Agreement is hereby amended by:

 

	 	
			a.

				
			replacing the defined term “Consolidated Interest Expense” in its entirety with the following:

			

 

“‘Consolidated Interest Expense’ means, for any period, total interest expense (including that portion attributable to Capital Leases in accordance with GAAP and capitalized interest) of Company and its Subsidiaries determined on a consolidated basis with respect to all outstanding Indebtedness, including all commissions, discounts and other fees and charges owed with respect to letters of credit and net costs under Interest Rate Agreements but excluding, however, any amounts referred to in Section 2.10 payable on or before the Closing Date and excluding any dividend payments on the Series A Preferred Stock to the extent paid solely with amounts on deposit in the Initial Dividends Account. Notwithstanding anything to the contrary contained herein, for purposes of determining Consolidated Interest Expense for any period that would otherwise start before the Closing Date, such period shall instead start on the Closing Date and Consolidated Interest Expense shall be an amount equal to Consolidated Interest Expense from the Closing Date through the last day of such period multiplied by a fraction the numerator of which is 360 and the denominator of which is the number of days from the Closing Date through the last day of such period.”

 

 

 

 

 

	 	
			b.

				
			replacing the defined term “Consolidated Total Debt” in its entirety with the following:

			

 

“‘Consolidated Total Debt’ means, as at any date of determination, the aggregate amount of all Indebtedness of Company (excluding (a) obligations in respect of performance, appeal or other surety bonds or any obligations in respect of a lease properly classified as an operating lease in accordance with GAAP; (b) any customer deposits or advance payments received in the ordinary course of business and (c) the Series A Preferred Stock) and its Subsidiaries determined on a consolidated basis in accordance with GAAP (or, if higher, the par value or stated face amount of all such Indebtedness).”

 

	 	
			c.

				
			adding the defined term “Initial Dividends Account”:

			

 

“‘Initial Dividends Account’ shall have the meaning set forth in Section 6.15.”

 

2.     Section 6.1 of the Note Purchase Agreement is hereby amended by adding clause (o) containing the following:

 

“(o)     the incurrence of the Series A Preferred Stock in an amount not to exceed $[50,000,000].”

 

3.     Section 6.2 of the Note Purchase Agreement is hereby amended by replacing clause (h) thereof in its entirety with the following:

 

“(h) with respect to Controlled Accounts, Liens (i) of a collecting bank arising under Section 4-208 of the Uniform Commercial Code on items in the course of collection, (ii) attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary course of business, (iii) in favor of a banking institution arising as a matter of law encumbering deposits (including the right of set-off) and which are within the general parameters customary in the banking industry, (iv) in favor of the holders of the Series A Preferred Stock solely to the extent of the Company’s undertaking that amounts on deposit in the Initial Dividends Account may be used solely for the payment of the first eight (8) dividends with respect to the Series A Preferred Stock following its issuance;”

 

4.     Section 6.5 of the Note Purchase Agreement is hereby replaced in its entirety with the following:

 

“Restricted Junior Payments. No Note Party shall, nor shall it permit any of its Subsidiaries through any manner or means or through any other Person to, directly or indirectly, declare, order, pay, make or set apart, or agree to declare, order, pay, make or set apart, any sum for any Restricted Junior Payment except that (a) any Subsidiary of Company may declare and pay dividends or make other distributions to Company or any Note Party that is a Wholly-Owned Guarantor Subsidiary, (b) Company and any Subsidiary of Company may make dividends or bonus payments to employees and directors payable solely in shares of Capital Stock, (c) Company may declare and pay the first eight (8) dividends with respect to the Series A Preferred Stock following its issuance solely from amounts on deposit in the Initial Dividends Account, and (d) commencing with the ninth dividend after issuance with respect to the Series A Preferred Stock, Company may declare and pay dividends as long as (i) no Event of Default shall have occurred and be continuing and (ii) Company has delivered evidence, reasonably satisfactory to Collateral Agent, showing compliance with the financial covenants set forth in Section 6.8 after giving effect to each such dividend payment.

 

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Notwithstanding anything in this Section 6.5 to the contrary, no amount shall be permitted to be distributed by any Note Party to pay, or otherwise in connection with, any Tax resulting from the cancellation or discharge of Indebtedness.”

 

5.     Section 6.8 of the Note Purchase Agreement is hereby amended by replacing clause (d) thereof in its entirety with the following:

 

“(d)     Consolidated Adjusted EBITDA. Company shall not permit Consolidated Adjusted EBITDA as at the end of any Fiscal Quarter, beginning with the Fiscal Quarter ending September 30, 2019, for the four Fiscal Quarter period then ended to be less than the correlative amount indicated below:

 

	
			Fiscal Quarter

				
			Consolidated

			Adjusted EBITDA

			
	
			September 30, 2019

				
			-$17,250,000

			
	
			December 31, 2019

				
			-$24,000,000

			
	
			March 31, 2020

				
			-$28,500,000

			
	
			June 30, 2020

				
			-$23,750,000

			
	
			September 30, 2020

				
			N/A

			
	
			December 31, 2020

				
			N/A

			
	
			March 31, 2021

				
			N/A

			
	
			June 30, 2021

				
			N/A

			
	
			September 30, 2021

				
			$15,000,000

			
	
			December 31, 2021 until the Maturity Date

				
			$20,000,000

			

 

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For the purposes of determining compliance with the covenant set forth in this Section 6.8(d) following consummation of a Permitted Acquisition each of the minimum Consolidated Adjusted EBITDA amounts set forth in this Section 6.8(d), following the consummation date, shall be increased by 100% of Consolidated Adjusted EBITDA of the entity or assets being acquired for the four Fiscal Quarter period most recently ended prior to the consummation of such Permitted Acquisition.”

 

6.     Section 6.8 of the Note Purchase Agreement is hereby amended by replacing clause (h) thereof in its entirety with the following:

 

“(h)     Minimum Consolidated Liquidity. Company shall not permit Consolidated Liquidity at any time (i) on or prior to June 30, 2020 to be less than $7,500,000, (ii) after June 30, 2020 but prior to September 30, 2021 to be less than the greater of (x) $20,000,000 and (y) an amount equal to the product of 2.00 multiplied by the absolute value of any negative Consolidated Adjusted EBITDA for the three month period then ending, and (iii) on or after September 30, 2021 to be less than the greater of (x) $5,000,000 and (y) an amount equal to the product of 3.00 multiplied by the absolute value of any negative Consolidated Adjusted EBITDA for the three month period then ending.”

 

7.     Section 6.8 of the Note Purchase Agreement is hereby by replacing clause (i) thereof in its entirety with the following:

 

“(i)     Minimum Revenue. Company shall not permit Consolidated Recurring Revenue as of the end of any Fiscal Quarter, beginning with the Fiscal Quarter ending September 30, 2019, for the two Fiscal Quarter period then ended, on an annualized basis, to be less than the correlative amount indicated below:

 

	
			Fiscal Quarter End Date

				
			Consolidated

			Adjusted Revenue

			
	
			September 30, 2019

				
			$26,750,000

			
	
			December 31, 2019

				
			$31,750,000

			
	
			March 31, 2020

				
			$40,500,000

			
	
			June 30, 2020

				
			$55,500,000

			
	
			September 30, 2020

				
			$75,000,000

			
	
			December 31, 2020

				
			$90,000,000

			
	
			March 31, 2021

				
			$100,000,000

			
	
			June 30, 2021 until the Maturity Date

				
			$110,000,000

			

 

4

 

 

8.     Section 6.15 of the Note Purchase Agreement is hereby replaced in its entirety with the following:

 

“Deposit Accounts and Securities Accounts. No Note Party will establish or maintain a Deposit Account or a Securities Account that is not a Controlled Account, deposit proceeds in a Deposit Account that is not a Controlled Account or deposit, acquire, or otherwise carry any security entitlement or commodity contract in a Securities Account that is not a Controlled Account; provided, that, the foregoing shall not apply to Excluded Accounts and provided further the Note Parties shall be permitted to establish and maintain a segregated account (the “Initial Dividends Account”) funded upon the issuance of the Series A Preferred Stock with the proceeds from the issuance of such Series A Preferred Stock in an amount equal to the first eight dividend payments on the Series A Preferred Stock so long as (i) the Initial Dividends Account becomes a Controlled Account within 30 days after the execution of this Second Amendment and (ii) amounts on deposit in the Initial Dividends Account shall be used solely for payment of dividends on the Series A Preferred Stock and not for other corporate purposes. Within 90 days after the Closing Date, the Company shall establish a primary banking relationship with a financial institution other than Heritage Bank of Commerce (the “New Bank”), and shall promptly notify all accounts debtors to make all payments to a Controlled Account at the New Bank. The Company shall diligently work in good faith to transition its primary banking relationship to the New Bank and within 150 days after the Closing Date, shall close all deposit accounts at Heritage Bank of Commerce, which date may be extended with the consent of the Collateral Agent in its sole discretion.”

 

9.     Section 6.17 of the Note Purchase Agreement is hereby replaced in its entirety with the following:

 

“Prepayments of Certain Indebtedness. No Note Party shall, nor shall it permit any of its Affiliates to, directly or indirectly, purchase, redeem, defease or prepay any principal of, premium, if any, interest or other amount payable in respect of any Indebtedness of any Note Party or any of its Subsidiaries prior to its scheduled maturity, other than (i) the Obligations, (ii) Indebtedness secured by a Permitted Lien if the asset securing such Indebtedness has been sold or otherwise disposed of in accordance with Section 6.9, and (iii) the prepayment of Indebtedness owed by a Managed Company to any Note Party pursuant to the terms of the Managed Company Documents. Without limiting the generality of the foregoing, no redemption of the Series A Preferred Stock shall be permitted until all the Obligations are Paid in Full in cash, provided that, the foregoing prohibition shall not prevent the holders of the Series A Preferred Stock from converting shares of Series A Preferred Stock into common stock of Company in accordance with the terms of the Series A Preferred Stock.”

 

B. PURCHASE OF ADDITIONAL NOTES

 

Upon the effectiveness of this Second Amendment, the Purchaser shall purchase Additional Notes in an aggregate original principal amount equal to the balance of the Purchaser’s Additional Notes Purchase Commitment (such balance being equal to $10,000,000 (Ten Million Dollars) and, in connection therewith, the Purchaser waives the conditions precedent set forth in Sections 3.2(a)(vi), 3.2(a)(vii)(x) and 3.2(a)(viii).

 

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C. CONDITIONS TO EFFECTIVENESS 

 

Notwithstanding any other provision of this Amendment and without affecting in any manner the rights of the Purchaser hereunder, it is understood and agreed that this Amendment shall not become effective, and the Note Parties shall have no rights under this Amendment, until:

 

1.     the Purchaser shall have received: (i) reimbursement or payment of its costs and expenses incurred in connection with this Amendment or the Note Purchase Agreement (including reasonable fees, charges and disbursements of counsel to the Purchaser); (ii) executed counterparts to this Amendment from the Company and the Purchaser; (iii) a fully executed Funding Notice with respect to the Additional Notes to be purchased by the Purchaser;1 and (iv) the Additional Notes issued in the name of the Purchaser in accordance with Section 2.2 of the Note Purchase Agreement; and

 

2.     the Company shall have received net proceeds of not less than $23,500,000 Twenty-Three Million Five Hundred Thousand Dollars2 from the issuance of the Series A Preferred Stock, the terms and conditions and documentation for which shall be satisfactory to the Collateral Agent.

 

D. REPRESENTATIONS

 

To induce the Purchaser and the Collateral Agent to enter into this Amendment, each Note Party hereby represents and warrants to the Purchaser and the Collateral Agent that:

 

1.     Each of the Note Parties and its Subsidiaries (a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, (b) has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Note Documents to which it is a party and to carry out the transactions contemplated thereby, and (c) is qualified to do business and in good standing in every jurisdiction where its assets are located and wherever necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has not had, and could not be reasonably expected to have, a Material Adverse Effect; and

 

2.     The execution, delivery and performance of this Amendment has been duly authorized by all necessary action on the part of each Note Party that is a party hereto.

 

1            NTD:  Under Section 2.1(c) of the NPA, the Company shall deliver to Purchasers a fully executed Funding Notice no later than 10:00 a.m. (New York City time) at least three Business Days in advance of the proposed Credit Date in the case of a LIBO Rate Portion, and at least one Business Day in advance of the proposed Credit Date in the case of an Additional Note that is a Base Rate Portion.  The timeline here contemplates closing of the Series A Preferred Stock on T+2, and the Purchaser is willing to waive the three Business Day requirement upon request from the Company with the draw notice.

2           NTD:  Proceeds net of underwriting discount, structuring fee and offering expenses.

6

 

 

E. OTHER AGREEMENTS

 

1.     Continuing Effectiveness of Note Documents. As amended hereby, all terms of the Note Purchase Agreement and the other Note Documents shall be and remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligations of the Note Parties party thereto. To the extent any terms and conditions in any of the other Note Documents shall contradict or be in conflict with any terms or conditions of the Note Purchase Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified and amended accordingly to reflect the terms and conditions of the Note Purchase Agreement as modified and amended hereby. Upon the effectiveness of this Amendment such terms and conditions are hereby deemed modified and amended accordingly to reflect the terms and conditions of the Note Purchase Agreement as modified and amended hereby.

 

2.     [Reserved].

 

3.     Acknowledgment of Perfection of Security Interest. Each Note Party hereby acknowledges that, as of the date hereof, the security interests and liens granted to Collateral Agent and the Purchasers under the Note Purchase Agreement and the other Note Documents are in full force and effect, are properly perfected and are enforceable in accordance with the terms of the Note Purchase Agreement and the other Note Documents.

 

4.     Effect of Agreement. Except as set forth expressly herein, all terms of the Note Purchase Agreement, as amended hereby, and the other Note Documents shall be and remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligations of the Note Parties to the Purchasers and Collateral Agent. The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Purchasers under the Note Purchase Agreement, nor constitute a waiver of any provision of the Note Purchase Agreement. This Amendment shall constitute a Note Document for all purposes of the Note Purchase Agreement.

 

5.     Governing Law. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of New York and all applicable federal laws of the United States of America.

 

6.     No Novation. This Amendment is not intended by the parties to be, and shall not be construed to be, a novation of the Note Purchase Agreement and the other Note Documents or an accord and satisfaction in regard thereto.

 

7.     Costs and Expenses. The Note Parties agrees to pay on demand all costs and expenses of Purchaser and Collateral Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable fees and out-of-pocket expenses of outside counsel for Purchaser and Collateral Agent with respect thereto.

 

8.     Counterparts. This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, each of which shall be deemed an original and all of which, taken together, shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile transmission, electronic transmission (including delivery of an executed counterpart in .pdf format) shall be as effective as delivery of a manually executed counterpart hereof.

 

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9.     Binding Nature. This Amendment shall be binding upon and inure to the benefit of the parties hereto, their respective successors, successors-in-titles, and assigns. No third party beneficiaries are intended in connection with this Amendment.

 

10.     Entire Understanding. This Amendment sets forth the entire understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotiations or agreements, whether written or oral, with respect thereto.

 

11.     Release. (a) Each Note Party hereby releases, acquits, and forever discharges Collateral Agent and each of the Purchasers, and each and every past and present subsidiary, affiliate, stockholder, officer, director, agent, servant, employee, representative, and attorney of Collateral Agent and the Purchasers (each a “Releasee”), from any and all claims, causes of action, suits, debts, liens, obligations, liabilities, demands, losses, costs and expenses (including attorneys' fees) of any kind, character, or nature whatsoever, known or unknown, fixed or contingent, which such Note Party may have or claim to have now or which may hereafter arise out of or connected with any act of commission or omission of Releasee existing or occurring on or prior to the date of this Amendment or any instrument executed on or prior to the date of this Amendment including, without limitation, any claims, liabilities or obligations arising with respect to the Note Purchase Agreement or the other of the Note Documents. The provisions of this paragraph shall be binding upon each Note Party and shall inure to the benefit of Releasees, and their respective heirs, executors, administrators, successors and assigns, and the other released parties set forth herein. No Note Party is aware of any claim or offset against, or defense or counterclaim to, any Note Party’s obligations or liabilities under the Note Purchase Agreement or any other Note Document. The provisions of this Section shall survive payment in full of the Obligations, full performance of the terms of this Amendment and the Note Documents, and/or Collateral Agent’s or each Purchaser’s actions to exercise any remedy available under the Note Documents or otherwise. Each Note Party warrants and represents that such Note Party is the sole and lawful owner of all right, title and interest in and to all of the claims released hereby and each Note Party has not heretofore voluntarily, by operation of law or otherwise, assigned or transferred or purported to assign or transfer to any person any such claim or any portion thereof.

 

[remainder of page intentionally left blank]

 

8

 

 

 

IN WITNESS WHEREOF, this Amendment has been duly executed as of the date first written above.

 

	
			 

				
			ONTRAK, INC., as the Company and as a Note Party

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Brandon LaVerne

				
			 

			
	
			 

				
			Name: Brandon LaVerne

			Title: Chief Financial Officer

				
			 

			

 

 

[Signature Page to Second Amendment to Note Purchase Agreement]

 

 

 

	
			 

				
			GOLDMAN SACHS SPECIALTY LENDING GROUP,

			L.P. as Purchaser

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Greg Watts

				
			 

			
	
			 

				
			Name: Greg Watts

			Title: Senior Vice President

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	 	 	 
	 	
			GOLDMAN SACHS SPECIALTY LENDING GROUP,

			L.P. as Collateral Agent

				 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Greg Watts	 
	 	
			Name: Greg Watts

			Title: Senior Vice President

				 

 

[Signature Page to Second Amendment to Note Purchase Agreement]EX-10.1

 Exhibit 10.1 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT 

BOTH (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY 

DISCLOSED 
 TEXT OMITTED
FROM THIS EXHIBIT IS MARKED WITH [***] 
  
  

License & Supply Agreement 

KYE PHARMACEUTICALS INC. 

- and - 
 CATALYST
PHARMACEUTICALS, INC 
 Dated as of: 14 AUGUST 2020 

 
  

 THIS LICENSE & SUPPLY AGREEMENT is made as of 14th August 2020
(“Effective Date”) by and between KYE Pharmaceuticals Inc., 2233 Argentia Road Suite 302 and 302A, Mississauga Ontario Canada L5N 2X7 Canada, a corporation incorporated under the laws of Ontario, Canada
(“KYE”) and Catalyst Pharmaceuticals, Inc., 355 Alhambra Circle, Suite 1250 Coral Gables, Florida (“CATALYST”) a corporation incorporated under the laws of the state of Florida, United States of America. 

WHEREAS: 
  

	A.	 CATALYST has significant experience in developing, registering, manufacturing and supplying pharmaceutical
products; 

  

	B.	 KYE has significant experience in registering, marketing and selling pharmaceutical products and carries on
business in Canada; 

  

	C.	 CATALYST possesses a Health Canada NDS in relation to the Product herein referred to as the
“Dossier”. 

  

	D.	 Subject to the terms and conditions of this Agreement, CATALYST wishes to license the Health Canada Approved
Dossier to KYE and KYE wishes to license the Health Canada Approved Dossier from CATALYST to allow KYE to market and sell the Product in the Canada; and 

  

	E.	 Subject to the terms and conditions of this Agreement, KYE wishes to engage with CATALYST to be KYE’s
exclusive supplier of the Product in Canada, and CATALYST wishes to supply the Product to KYE exclusively for sale in Canada. 

NOW THEREFORE in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties hereto agree as follows: 
 ARTICLE 1 - INTERPRETATION 

 

	1.1	 Definitions. In addition to the terms defined elsewhere in this Agreement, the terms set forth below
shall be defined in this Agreement (including the recitals) as follows: 

  

	 	i.	 “Affiliate” means, in respect of any party, a legal entity controlling, controlled by or
under common control with that party, control meaning ownership of more than 50% of the capital or the voting power in such entity. 

  

	 	ii.	 “Agreement” means this License & Supply Agreement, together with all schedules
attached hereto and all modifications and amendments hereto. 

  

	 	iii.	 “API” means the active pharmaceutical ingredient of the Product(s), being any substance or
mixture of substances that when used in the manufacture of the Product becomes the active ingredient thereof. 

  
 1 

	 	iv.	 “API Supplier” means any third party who supplies the API used to manufacture the Product.

  

	 	v.	 “Applicable Laws” means, with respect to any Person, any domestic or foreign, federal,
state or local statute, treaty, law, ordinance, rule, regulation, administrative interpretation, order, writ, injunction, judicial decision, decree or other requirement of any Governmental Authority applicable to such Person or any of such
Person’s respective properties, assets, officers, directors, employees, consultants or agents (in connection with such officers’, directors’, employees’, consultants’ or agents’ activities on behalf of such Person) as
it relates to this Agreement. 

  

	 	vi.	 “Business Day” in relation to each Party means any day other than a Saturday, a Sunday, or
any statutory or public holiday on which banks are generally closed for regular business in the jurisdiction in which the Party’s offices are located as specified in Section 18.1 hereof. 

 

	 	vii.	 “Commercially Reasonable Efforts” means exercising such reasonable efforts and diligence in
accordance with a Party’s reasonable business, legal, financial, medical and scientific judgment and in a manner consistent with and in accordance with the efforts and resources such Party would use for a pharmaceutical product owned, licensed
in, or controlled by such Party which is of similar market potential at a similar stage of its product life cycle, taking into account the competitiveness of the marketplace (including the number of competing products and differing pricing and
reimbursement status), the proprietary position of such product, issues of safety and efficacy, the regulatory environment and the profitability of such product 

 

	 	viii.	 “Defective” means any Product which fails to comply with the representations and warranties
set out in Section 8.8 and 12.3 and as a result is rendered unfit for sale. 

  

	 	ix.	 “Development” means all activities relating to the development of the Product as required:
(i) to produce an acceptable product formulation, manufacturing protocol and stability profile; (ii) to establish the Product’s efficacy and safety profile; all as further described in Section 3 hereof

  

	 	x.	 “DMF”, where applicable, means a drug master file governing the development and manufacture
of the API. 

  

	 	xi.	 “Facility” means the manufacturing facilities of CATALYST or its Affiliate or subcontractor
where the Product is manufactured. 

  

	 	xii.	 “GCP” means current Good Clinical Practices as established under Applicable Law.

  

	 	xiii.	 “GLP” means current Good Laboratory Practices as established under Applicable Law.

  
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	 	xiv.	 “GMP” means current Good Manufacturing Practices for the manufacture of finished
pharmaceutical products in effect from time to time in the Reference Jurisdiction, which set minimum standards to ensure that pharmaceutical products meet established requirements for identity, strength, quality and purity, as established under
Applicable Law 

  

	 	xv.	 “Health Canada” means the department of the Government of Canada whose authority oversees
the regulation, approval, and sale of drug products in Canada from time to time. 

  

	 	xvi.	 “Intellectual Property Rights” means any patent, trade secret, right in unpatented know-how, right of confidence and any other intellectual or industrial property right of any nature whatsoever in any part of the world, whether registered or unregistered, but excludes any Trade-mark rights.

  

	 	xvii.	 “IP Claim” means any claim, action or demand commenced or made against any Party by a third
party in relation to the Product that is based upon the contention that CATALYST’S attempt to obtain a Marketing Authorization for the Product in Canada, and/or the marketing and sale of the Product in Canada by KYE infringes the Intellectual
Property Rights of any third party in Canada. 

  

	 	xviii.	 “Launch Date” means the date upon which the Product is released and first becomes available
for commercial supply and sale in Canada. 

  

	 	xix.	 “Losses” means any
out-of-pocket damages, liabilities, obligations, costs, expenses or losses, including reasonable legal fees and expenses, court costs, arbitration fees, penalties,
fines, and amounts paid in settlement of claims. 

  

	 	xx.	 “Market” means, sell, offer to sell, promote, advertise, market, import and/or distribute.

  

	 	xxi.	 “Marketing Authorization” means the approval granted by Health Canada following review of
the New Drug Submission, as required to permit KYE to promote, market, distribute and sell the Product in Canada. 

  

	 	xxii.	 “NDS” means a New Drug Submission filed with Health Canada pursuant to the Food and Drug
Regulations Part C.08.002 (1), (2) and (3) that includes the documentation resulting from the development of the Product and: (i) describes the processes, techniques, studies and data in relation to the Product; and (ii) has been
prepared by CATALYST in electronic Common Technical Document (eCTD) format as per the current Health Canada requirements. 

  

	 	xxiii.	 “Net Sales” means [***] 

 

	 	xxiv.	 “Packaging” means all material used to prepare fully packaged Product, including
containers, cartons, labelling, blister packs, inserts and shipping cases, as applicable. 

  
 3 

	 	xxv.	 “Party” means any party to this Agreement referred to individually, and
“Parties” means the Parties to this Agreement referred to collectively. 

  

	 	xxvi.	 “Pharmacovigilance” means certain obligations regarding the collection and assessment of
data pertaining to, and the monitoring and prevention of, adverse effects associated with the Product. 

  

	 	xxvii.	 “Product” means the pharmaceutical product that the subject of this Agreement, as described
in Schedule A and amended upon mutual agreement of the Parties. 

  

	 	xxviii.	 “Product Monograph” means a factual, scientific document on the Product approved by Health
Canada that, devoid of promotional material, describes the properties, claims, indications and conditions of use of the drug and contains any other information that may be required for optimal, safe and effective use of the drug.

  

	 	xxix.	 “Quality Agreement” means a Quality Assurance/Quality Control Agreement to be
entered into by the Parties which will set forth certain obligations of the Parties in relation to the manufacture, packaging, quality control and testing of the Product in accordance with GMP. 

 

	 	xxx.	 “Quarter” means the following three (3) month periods during a calendar year:
(i) from January 1 to March 31; (ii) from April 1 to June 30; (iii) from July 1 to September 30; and (iv) from October 1 to December 31. 

 

	 	xxxi.	 “Regulatory Authority” means the applicable foreign governmental regulatory health
authorities in a jurisdiction, outside of Canada, responsible for regulating the manufacture, distribution, and sale of pharmaceutical products. 

  

	 	xxxii.	 “Safety Data Exchange Agreement (SDEA)” means a pharmacovigilance agreement to be entered
into by both Parties which will set forth certain obligations of the Parties in relation to drug product safety in accordance with Good Pharmacovigilance Practices and Applicable Laws. 

 

	 	xxxiii.	 “Specifications” means the specifications for the Product as set out in the approved NDS in
Canada as conditions of the Marketing Authorization. 

  

	 	xxxiv.	 “Supply Price” means the unit cost to be paid by KYE to CATALYST for the right to use the
Marketing Authorization, Licensed Know How and the right to import, market and sell the Product within Canada, as per Schedule A of this Agreement. 

  

	 	xxxv.	 “Trademarks” means any trademarks, trade names, trade-dress, logos, whether or not
registered, for the Product. For clarity this includes the trademark FIRDAPSE® which is registered in Canada by CATALYST. 

  
 4 

	1.2	 Interpretation of “Include”. Where the words “include”, “includes” or
“including” are used in this Agreement, they shall mean, respectively, “include without limitation”, “includes without limitation”, or “including without limitation”. 

ARTICLE 2 - LICENSE 
  

	2.1	 License. Subject to the terms and conditions of this Agreement, CATALYST hereby grants to KYE: the
exclusive license (i) to the NDS and Marketing Authorization for the Product in Canada, including the right for KYE to obtain a Marketing Authorization under KYE’s name in Canada after approval of the NDS by Health Canada; and (ii) to
the Trademarks, in each case, solely for use in Canada to Market the Product within Canada. Nothing herein shall limit CATALYST’s research and development activities and clinical trial investigating additional indications and other activities
other than the sale and distribution of Product in Canada. 

  

	2.2	 Right to License. CATALYST represents and warrants to KYE that the NDS is, and the Marketing
Authorization if obtained, will be owned or licensed by CATALYST or its Affiliates, and CATALYST has the right to grant to KYE the license provided for in this Agreement. 

 

	2.3	 Restrictions. KYE shall not: 

 

	 	i.	 Sub-license or subcontract the Product and Marketing Authorization
to a third-party without the prior written consent of CATALYST or as expressly authorized under this Agreement; 

  

	 	ii.	 use or register the NDS or any information or data contained therein, in any jurisdiction other than Canada;

  

	 	iii.	 use the NDS or any information or data contained therein for any purpose except as contemplated under this
Agreement; or 

  

	 	iv.	 Market, directly or indirectly, any Product which has been manufactured and supplied to KYE in any
jurisdiction outside of Canada and shall prohibit (and strictly enforce such prohibition) its contractors or Affiliates, from doing so. 

ARTICLE 3 - PRODUCT DEVELOPMENT 
  

	3.1	 Regulatory Status. CATALYST represents and warrants to KYE that it submitted an NDS for the Product
to Health Canada, the NDS has been accepted by Health Canada for review and the NDS is currently under review with Health Canada. 

  

	3.2	 Development Activities. CATALYST represents and warrants that all Development Activities performed by
or on behalf of CATALYST in connection with the Product have been performed in a good scientific manner and in compliance in all material respects with Applicable Law. The Parties hereby acknowledge that any other local tests or studies required by
Health Canada for approval of the Product in Canada shall be the responsibility of CATALYST, of which CATALYST shall bear the related costs of such tests and studies. 

  
 5 

	3.3	 Authority for Development Activities. For clarity and not without limiting the foregoing, CATALYST
has full discretion and authority regarding research, clinical development and clinical trial activities relating to the PRODUCT for indications (in addition to LEMS) within Canada, including without limitation, the selection and operation of
clinical sites within Canada. 

 ARTICLE 4 - MARKETING AUTHORIZATION 

 

	4.1	 Marketing Authorization Deadline. If, despite CATALYST’s Reasonable Commercial Efforts, after
eighteen (18) months from the effective date of this Agreement, Health Canada has not granted to CATALYST the Marketing Authorization in Canada for any reason, or CATALYST is unable to deliver commercial product that meets all conditions of the
Marketing Authorization, either Party shall be entitled to terminate this Agreement upon delivering written notice to the other Party. Termination shall otherwise be without further obligation or liability on the part of either Party other than the
confidentiality obligations herein. 

  

	4.2	 Maintenance. Once the Marketing Authorization has been granted to CATALYST, in a mutually agreed upon
timeframe, CATALYST shall transfer or assist KYE in having the Marketing Authorization granted to KYE for the purpose of ongoing maintenance of the regulatory file in Canada. Once the Marketing Authorization in the name of KYE is obtained, it will
be KYE’s responsibility, at its own expense, to maintain and update its Marketing Authorization and for all communications with Health Canada relating to maintenance of the Marketing Authorization. as may be required, provided that during the
term of this Agreement CATALYST shall provide all necessary manufacturing data and technical information as may be required by Health Canada and as set out in Section 6.3. KYE will promptly provide copies of all communications and with
Health Canada and Supplemental New Drug Submissions to CATALYST for its records. CATALYST will use Commercially Reasonable Efforts to assist KYE with all requests to the API manufacturer(s) but shall not be held responsible in the case the API
manufacturer(s) will not agree to comply with such requests. 

  

	4.3	 Designation of Manufacturer. The NDS for the Product, and any subsequent submissions for the purpose
of maintaining the regulatory file, will state that CATALYST or designated subcontractor is the manufacturer and supplier of the Product. 

  
 6 

	4.4	 Expansion of Indications in the Product Monograph. [***] 

ARTICLE 5 - EXCLUSIVITY AND COMMERCIALIZATION 
  

	5.1	 Exclusive License in Canada. CATALYST hereby agrees to exclusively supply the Product to KYE in
Canada for the Term of the Agreement. 

  

	5.2	 Exclusive Licensing Fee. KYE agrees to pay the following
one-time license payments: 

  

	 	i.	 Upon attainment of the Marketing Authorization and the delivery of commercial product that meets the
conditions of the Marketing Authorization in Canada $US [***]. If the Marketing Authorization is obtained prior to the approval of any other 3,4-diaminopyridine product for LEMS, then KYE will pay an
additional $US [***] for a total Milestone Payment of $US [***]; regardless of delivery date of commercial product. The additional $US [***] will be payable upon KYE executing a Letter of Intent with the Pan Canadian
Pharmaceutical Alliance for the provincial reimbursement of the Product. 

  

	 	ii.	 KYE will pay CATALYST a one-time milestone payment of $US
[***] upon Marketing Approval for the first alternative indication in Canada. KYE will pay CATALYST (A) a further one-time milestone payment of $US [***] when Net Sales of the Product in any
calendar twelve (12) month period after such Marketing Approval are [***]Canadian Dollars ($CAN [***]) greater than the Net Sales of the Product in the twelve (12) month calendar period immediately prior to such Marketing
Approval, and (B) a further one-time milestone payment of $US [***]when Net Sales of the Product in any calendar twelve (12) month period after such Marketing Approval are [***]
Canadian Dollars ($CAN [***]) greater than the Net Sales of the Product in the twelve (12) month calendar period immediately prior to such Marketing Approval. KYE will use Commercially Reasonable Efforts to Market all alternative
indications for the Product. For the avoidance of doubt, there will be no further milestones payments for any subsequent alternative indications. 

  
 7 

	5.3	 Exclusive Supplier. During the Term of this Agreement, KYE shall source and purchase the Product for
sale in Canada exclusively from CATALYST and shall not Market any product that could be considered as a substitute or competitive with the Product. This provision shall apply even in the event of assignment of this Agreement. 

 

	5.4	 General Diligence Obligation: KYE will exercise Commercially Reasonable Efforts to Market the Product
to customers in Canada during the Term at its sole cost and expense in accordance with the terms of this Agreement and with Applicable Law. Such efforts shall include, without limitation, the Launch of the Product,, the preparation and delivery to
CATALYST of: (i) an annual marketing plan for the Product (the first of which shall be delivered prior to the Product’s Launch); and (ii) sales projections for the Product on an annual basis. KYE will provide CATALYST an opportunity
to comment on such annual marketing plans, and will consider CATALYST’s comments in good faith, but the final marketing plan shall be determined by KYE. 

  

	5.5	 Pricing: KYE shall have final decision-making authority for determining the selling price for the
Product in Canada subject to the provisions set forth herein. KYE will use Commercially Reasonable Efforts to obtain and maintain pricing and reimbursement approvals for the Products for Canada, [***]. 

 

	5.6	 Bartering and Bundling Prohibited: KYE shall not accept or solicit any bartered goods or services
relating to the sale of a Product. The Product shall not serve as a loss leader or be bundled with other products to serve as a loss leader. The term “loss leader” shall refer to a situation in which (1) the Product is sold on
terms that are less favorable than terms that could otherwise have been obtained in order to benefit sales of one or more products other than a Product and/or (2) the Product’s price is discounted to induce the sale of other products. In
addition to and without limiting CATALYST’s other remedies hereunder, the Net Sales shall be adjusted to reverse any discounts in such bundling and loss leader arrangement which were given to a customer that were in excess of the then customary
discounts for a Product (or, in the absence of relevant data for the Product, other similar products under similar market conditions). 

  

	5.7	 Reports: After the Launch of the Product, KYE shall within forty-five (45) days after the
completion of each calendar year during the Term, provide to CATALYST, a report describing the selling resources deployment, including without limitation, budget and spend on marketing of the Product for such year, as well as a report summarizing
the status of reimbursement approvals and pricing approvals and filing in terms of formulary listings and reimbursement pricing tiers for the Product in Canada. 

  
 8 

	 	i.	 KYE shall provide to CATALYST such other information and materials with respect to its activities in
connection with marketing of the Product as CATALYST shall reasonably request from time to time, including information regarding its pre-launch marketing plans, including providing to CATALYST a pre-launch marketing plan as soon as practicable but in no event later than six (6) month from the Effective Date. 

  

	 	ii.	 For the avoidance of doubt, KYE, at its own cost and expense, shall be responsible for training of all sales
representatives who are, or will be, marketing the Products in Canada, development of websites, advertising, and supporting materials (including, without limitation, print advertising, brochures, leaflet and similar materials).

  

	 	iii.	 CATALYST shall use Commercially Reasonable Efforts to provide to KYE copies of all CATALYST training
materials, marketing plans, advertising and supporting materials (including, without limitation, print advertising, brochures, leaflet and similar materials) as KYE may reasonably request from time to time for use in the development of its own
training and promotional materials for Canada. 

  

	5.8	 Trademarks: KYE hereby acknowledges that CATALYST has been granted an exclusive license to use of the
Trademarks in Canada, and that CATALYST is sublicensing the Trademarks to KYE for use in Canada in connection with the Product during the Term of this Agreement. KYE shall not, during the Term or thereafter, register, use, or attempt to obtain any
right in and to any Trademarks or in and to any name, logo or trademark confusingly similar thereto, including, without limitation, by adding to or supplementing the Trademarks with additional words or phrases. CATALYST shall have the right to
exercise quality control over KYE’s use of the Trademarks to a degree reasonably necessary to maintain the validity of the Trademarks, as applicable, and to protect the goodwill associated therewith. CATALYST shall be solely responsible for the
filing, prosecution and maintenance of the Trademarks in the Canada and all costs and expenses related thereto. 

ARTICLE 6 - MANUFACTURE OF PRODUCT 
  

	6.1	 Supply Obligation. Subject to the terms and conditions of this Agreement, CATALYST shall manufacture
and supply to KYE the quantities of the Product ordered by KYE hereunder for commercial import and sale in Canada. 

  

	6.2	 API. [***] 

  
 9 

	6.3	 Restrictions on Changes to Product. The Parties acknowledge that, once the NDS has been approved by
Health Canada and the Marketing Authorization has been successfully transferred to KYE, any change whatsoever to the Product or any related process, method or procedure may impact the regulatory status of the Product in Canada. Without limitation to
any other provision of this Agreement, CATALYST shall not make any changes whatsoever to the Product without first informing KYE who will obtain all necessary approvals from Health Canada. Examples of such changes include, changes to the API
Supplier, the Facility, methods of manufacture or other processes, or any other changes. KYE will use Commercially Reasonable Efforts to submit any changes without delay and shall pay all fees and charges payable to Health Canada which may be
required to update the Marketing Authorization in connection with any change to the Product. 

  

	6.4	 Packaging. CATALYST shall supply the Product to KYE fully packaged, labelled, and ready for sale.
CATALYST shall label and package the Product in accordance with the label text and Packaging Specifications set forth in the approved NDS as conditions of the Marketing Authorization. KYE shall promptly inform CATALYST of any changes to the
labelling and/or packaging required by Health Canada. 

  

	6.5	 Manufacturing Facility. 

 

	(1)	 Product Manufacturer. All Product supplied to KYE pursuant to this Agreement shall be manufactured
only by CATALYST’s designated Facility described in Schedule A, or at such other Affiliate or subcontractor as may be mutually agreed between the Parties in writing, such agreement not to be reasonably withheld, and which complies with
the requirements of this Section 6. If CATALYST has the Product manufactured on its behalf, CATALYST shall cause and obligate its Facility to comply with all provisions hereof applicable to the manufacture of the Product, and any
reference to CATALYST in such provisions shall, as appropriate, be deemed to include a reference to the applicable Facility of CATALYST. For avoidance of doubt, CATALYST shall not manufacture the Product in any other Facility that will result in a
delay in supply to KYE, and until approval has been obtained from Health Canada (if applicable) and satisfactory audit, if necessary, and GMP status of the Facility are verified by KYE in writing. 

 

	(2)	 Location of Facility. CATALYST shall not change the location of the Facility without the prior
written consent of KYE, which consent shall not be unreasonably withheld except as described in Exhibit A. 

  

	(3)	 Qualification of Facility. CATALYST shall be required to maintain the Facility in compliance with all
Applicable Laws. CATALYST shall throughout the term of this Agreement obtain and maintain, at its own cost, any and all licenses, permits, orders, authorizations and consents (including facility licenses and permits) as required by Applicable Law to
manufacture the Product for supply to KYE in Canada in compliance with GMP, or as otherwise required to perform CATALYST’s obligations under this Agreement. 

  
 10 

	6.6	 Inspections. 

 

	(1)	 KYE Inspections. During the term of this Agreement and as long as KYE is not distributing a product
that can be substituted in some manner for the Product, until one year after the expiration date for the last Product supplied hereunder, and thereafter in the event a claim against KYE regarding use of the Product is threatened or commenced,
CATALYST shall permit KYE’s representatives to enter the Facility, upon reasonable prior notice and during normal business hours, for the purpose of inspecting the Facility and quality control procedures and confirming compliance with all
Applicable Laws, the Quality Agreement and this Agreement. The date of such an inspection shall be mutually agreed by the Parties and designated subcontractor and shall have a duration of maximum two (2) working Business Days. KYE will be
responsible for any costs associated with an inspection requested by KYE. 

  

	(2)	 If during any such inspection KYE discovers evidence in which the Facility has not complied with Applicable
Law or the Quality Agreement, then KYE shall present such findings to CATALYST. CATALYST shall make Commercially Reasonable Efforts to (1) coordinate with the Facility to provide to KYE a written plan for correcting such deficiencies, including
a proposed timetable for implementing such corrections, and (2) ensure that such deficiencies are corrected, at the Facility’s and/or CATALYST’s sole expense, as soon as reasonably practicable. CATALYST shall not be held responsible
in case the Facility does not agree to correct the deficiencies identified. In the event KYE requests a material change to the Facility that is not to correct non-compliance with Applicable Law or the Quality
Agreement, KYE will present the requested change to CATALYST for approval, such approval not to be unreasonably withheld. If CATALYST approves such change, CATALYST will present request to the Facility for implementation and KYE will be responsible
for the cost for changes requested by KYE and accepted by the Facility. 

  

	(3)	 Inspection by Governmental Authorities. If CATALYST receives any notification of any inspection of
the Facility by any Regulatory Authority, or any warning letter or similar correspondence from any Regulatory Authority relating to the Product, then CATALYST shall (i) promptly provide KYE with notice of the inspection and all notices,
correspondence and related documents received by CATALYST from the applicable Regulatory Authorities; (ii) promptly furnish KYE with copies of all reports and notices received by CATALYST as a result of any such inspection; (iii) provide
to KYE a written plan for correcting such deficiencies documented by the Regulatory Authorities, including a proposed timetable for implementing such corrections; and (iv) ensure that any deficiencies are corrected, at CATALYST’s expense,
as soon as reasonably possible. CATALYST shall not be held responsible in case the Facility does not agree to correct the deficiencies identified. 

  

	6.7	 Quality Assurance/Quality Control. The Parties shall enter into a separate Quality Agreement before
the earlier of: (i) the first commercial supply of any Product; and (ii) eight (8) weeks from the signing of this Agreement. The terms of the Quality Agreement shall apply to all Product manufactured and supplied by CATALYST pursuant to
this Agreement. In the event of a conflict between the Quality Agreement and this Agreement with respect to quality-related matters, including compliance with GMP and all other quality obligations, the provisions of the Quality Agreement shall
prevail. In the event of a conflict between the Quality Agreement and this Agreement with respect to any commercial matters, including allocation of risk, liability, and financial responsibility, then the provisions of this Agreement shall prevail.

  
 11 

 ARTICLE 7 - PHARMACOVIGILANCE 

 

	7.1	 Both Parties agree to mutually respect and be responsible for their respective Pharmacovigilance systems for
the Product. Legal responsibility in respect of pharmacovigilance and other regulatory requirements or agreements, rests with the Marketing Authorization Holder(s) in their respective jurisdictions meaning for Catalyst, the US and for KYE, Canada.
Regular safety data exchange will occur according to current guidelines on Good Pharmacovigilance Practice, FDA and Health Canada requirements and in accordance with the Pharmacovigilance Agreement. In addition to the provisions hereof, the Parties
shall enter into a separate Safety Data Exchange Agreement (SDEA), the terms of which shall apply to the Product manufactured and supplied by CATALYST pursuant to this Agreement. In the event of a conflict between the Pharmacovigilance Agreement and
this Agreement with respect to any safety-related matters, including compliance with all regulatory obligations, the provisions of the Pharmacovigilance Agreement shall prevail. In the event of a conflict between the Pharmacovigilance Agreement and
this Agreement with respect to any commercial matters, including allocation of risk, liability, and financial responsibility, then the provisions of this Agreement shall prevail. 

ARTICLE 8 - PRODUCT SUPPLY 
  

	8.1	 Forecasts and Purchase Orders. 

 

	(1)	 [***] 

  

	(2)	 [***] 

  
 12 

	8.2	 [***] 

  

	8.3	 Price & Payment. 

 

	(1)	 Method of Payment. [***] 

 

	(2)	 Delays in payment. [***] 

 

	(3)	 Product Purchase Pricing and Reporting. [***] 

 

			
	 Calendar Year Net Sales
	  	Quarterly Transfer
Price Rate
	 [***]
	  	[***]%
	 [***]
	  	[***]%

  
 13 

 [***] 

 

	(4)	 Sales Milestone Payment: As part of the Product Supply Price KYE will pay CATALYST a one-time sales milestone payment of $US [***] when KYE’s Net Sales of the Product exceed $CAN [***] in a consecutive twelve (12) month period. KYE shall report this to CATALYST within five
(5) days after the end of the calendar month in which it occurs. KYE shall make payment to CATALYST within ten (10) Business Days of said notification in accordance with Section 8.3(1). 

 

	(5)	 CATALYST Audit Rights: KYE shall maintain accurate and complete books and records of the Net Sales in
such form and in such reasonable detail as to enable CATALYST to verify the Net Sales. Upon the written request of CATALYST, which shall not more than once per calendar year unless discrepancies of five percent (5%) or greater in the aggregate
Transfer or Supply Price paid or particular bona fide concerns exist (in which event such audits may be on a quarterly basis), KYE shall permit an independent certified public accounting firm selected by CATALYST to have access during normal
business hours to such of the records of KYE as may be reasonably necessary to verify the accuracy of the Net Sales of the Product, and Supply Price for the Product for any calendar year ending not more than three (3) full years prior to the
date of such request. The accounting firm must execute a confidentiality agreement with KYE prior to being given access to KYE’s records. If such accounting firm concludes that there are discrepancies in the reporting or calculation of the Net
Sales or the Supply Price, such accounting firm shall recalculate such amounts and: (a) KYE shall pay any additional sums underpaid to CATALYST within thirty (30) calendar days of such
re-determination; or (b) CATALYST, at its option, shall repay or, credit KYE for any overpaid amounts. The fees and expenses charged by such accounting firm shall be paid by CATALYST. However, if the
audit discloses that the aggregate Supply Price and/or Transfer Price relating to the Product to CATALYST was underpaid during the audit period by more than five per cent (5%), then KYE shall pay the reasonable fees and expenses charged by the
accounting firm. Each Party shall forthwith pay any amounts discovered to be due by it to the other pursuant to an audit. The results of such audit shall be final and binding on the Parties. 

  
 14 

	8.4	 Taxes: KYE shall deduct or withhold from payments to CATALYST only those taxes that are required or
enacted by Applicable Laws and shall use all reasonable and legal efforts to minimize the tax withholding obligations hereunder. KYE shall submit to CATALYST appropriate proof of payment of tax withholdings as well as official receipts within a
reasonable period of time not to exceed sixty (60) days following any tax payment. KYE shall provide CATALYST reasonable assistance, which shall include the provision of such documentation as may be required by the tax authority, in order to
allow CATALYST obtain the benefit of any present or future treaty against double taxation which may apply to such payments or to claim an exemption from or obtain a repayment or a reduction of such tax. The Parties acknowledge that as of the
Effective Date, provided that CATALYST has delivered a properly executed NR301 claiming eligibility under the Canada-US Tax Treaty in respect of the payments hereunder and certification that such payments are
not attributable to a permanent establishment in Canada, there are no applicable withholding taxes under applicable law. For the avoidance of doubt, CATALYST shall remain liable for all withholding taxes related to this Agreement and this
Section 8.4 shall survive termination of the Agreement. 

  

	8.5	 Delivery. Delivery of each order of the Product shall be made
ex-works (Incoterms 2010). Each planned delivery shall be accompanied by advanced notice specifying the Product, KYE’s purchase order number and the quantity of Product to be delivered. Upon
written request by KYE, CATALYST will assist with transportation logistics and arrange for delivery of the products to the destination port or airport in Canada. In such case, the cost of the transportation and other direct costs will be
communicated by CATALYST to KYE in advance of the shipment. KYE will be charged separately on the specific invoice for the Product issued by CATALYST to KYE. 

  

	8.6	 Delays. 

  

	(1)	 Notice. CATALYST shall notify KYE as soon as possible of any potential delay in the delivery of any
Product shipment for which a purchase order was accepted. 

  

	(2)	 Remedy for Late Delivery. If CATALYST fails to deliver any shipment of the Product to the agreed upon
port of entry by the delivery date specified by KYE in a purchase order submitted in accordance with the terms of this Agreement, and the delay is not due to the failure to receive any materials to be procured by KYE, then the following shall apply
(without limitation to CATALYST’s indemnification obligations): 

  

	 	i.	 If delivery of a Product shipment is more than ninety (90) days late from the issued purchase order
delivery date, then KYE shall be entitled to cancel its purchase order regarding the late shipment upon ten (10) Business Days written notice. 

  

	 	ii.	 If delivery of a Product shipment is more than one hundred and eighty (180) days late from the issued
purchase order delivery date, then KYE shall be entitled to cancel its purchase order regarding the late shipment upon ten (10) Business Days written notice if it has not done so already. In addition, should three (3) or more purchase
orders be more than one hundred and eighty (180) days late from the issued Purchase Order delivery date due to CATALYST actions in any calendar year, then KYE may terminate the Agreement and return the Marketing Authorization to CATALYST.

  
 15 

	8.7	 Testing. CATALYST shall test as outlined in the NDS all Product prior to delivery to KYE to ensure
that the Product meets the Specifications. Upon the delivery of each shipment of Product, CATALYST shall provide to KYE a certificate of analysis in accordance with the terms of the Quality Agreement and which verifies that the Product complies with
the Specifications. CATALYST shall be responsible for all applicable release testing of the Product in accordance with the requirements of the Quality Agreement and all applicable GMPs and other Applicable Laws. 

 

	8.8	 Defective Product. 

 

	(1)	 Notification. If any shipment of Product is Defective in relation to any matter discoverable upon
visual inspection made with reasonable care, then KYE will notify CATALYST within thirty (30) days of receipt of the Product. If any shipment of Product is Defective in relation to any matter which is not discoverable upon visual inspection
made with reasonable care, then KYE will immediately notify CATALYST upon discovery. CATALYST shall promptly notify KYE as to whether it confirms or disputes that the Product is Defective. Pending resolution of KYE’s claim, KYE shall not be
obligated to make any payment to CATALYST in relation to any Product which KYE justifiably and reasonably claims in good faith to be Defective. 

  

	(2)	 Review; Independent Testing Laboratory. If CATALYST does not agree with a claim by KYE that any
Product is Defective, then the Parties shall submit information regarding the disputed shipment to each other for review. If the Parties cannot agree as to whether the Product is Defective within four (4) weeks of KYE’s initial claim, then
upon the request of either Party the dispute shall be submitted to a mutually acceptable independent laboratory with a minimum of ten (10) years of experience in testing pharmaceutical products and complying with guidelines and regulations in
Canada. The independent laboratory shall act as an expert whose determination shall be final and binding upon the Parties, except in the case of manifest error. If the independent laboratory determines that the Product is not Defective, then KYE
shall pay for the Product (if it has not already done so) within thirty (30) days of receiving notice of the independent laboratory’s decision. The costs of the independent laboratory shall be borne by the Party with whom the independent
laboratory disagrees. 

  

	(3)	 Remedy for Defective Product. If any Product delivered by CATALYST to KYE is finally agreed or
determined to be Defective by CATALYST or by an independent laboratory as described in 8.8(2), then CATALYST shall, at KYE’s discretion, and without limitation to CATALYST’s indemnification obligations, either replace the Defective Product
at no additional cost to KYE or (to the extent that KYE has already paid for the Defective Product) give credit to KYE for the Defective units and all costs paid by KYE in relation thereto (including freight, insurance and all applicable taxes). KYE
will, at CATALYST’s expense and in accordance with CATALYST’s written instructions, either return or destroy all Defective Product. 

  
 16 

	8.9	 Manufacturing Process Events. If a manufacturing process event occurs during the manufacture of any
Product batch which is likely to materially affect the safety, efficacy or regulatory status of the Product in Canada, CATALYST shall notify KYE as soon as reasonably possible (but in any event within two (2) Business Days of becoming aware of
the process event). KYE and CATALYST shall consult with each other as to the disposition of all affected batches of the Product, which disposition shall be at the expense of CATALYST. CATALYST agrees to report to KYE, on a semi-annual basis, any
atypical process events, regardless of whether they are or are not likely to materially affect the safety, efficacy, or regulatory status of the Product. No Product may be reworked unless the rework procedure is in conformity with GMP and the
Quality Agreement or otherwise agreed in writing between the Parties. 

 ARTICLE 9 - RECORDS 

 

	9.1	 Records. CATALYST shall maintain all records necessary to comply with all Applicable Laws relating to
the Development, testing, manufacture, packaging, storage and supply of the Product, and the performance of its obligations under this Agreement. All such records shall be maintained for such period as may be required pursuant to Applicable Laws;
provided, however, that all records relating to the manufacture, stability and quality control (including deviations) of each batch of the Product shall be retained at least until the second anniversary of the end of the approved shelf life for all
Product from such batch. 

  

	9.2	 Samples and Batch Records. CATALYST shall prepare and maintain batch records and file samples,
properly stored, for each lot or batch of Product manufactured and shipped hereunder in compliance with all GMPs and other Applicable Laws pertaining thereto. KYE will retain samples properly stored in Canada in conformity with GMP and the Quality
Agreement. 

  

	9.3	 Ongoing Stability. CATALYST shall, at its own cost, conduct ongoing stability studies for the Product
according to specifications that meet the conditions of the Marketing Authorization in Canada and shall create and compile all other data and documentation required by GMP, regulatory and any other Applicable Laws. CATALYST will provide the results
of ongoing stability on such Product to KYE, free of charge, upon reasonable request. 

  

	9.4	 Inspection of Books and Records. During the term of this Agreement, and thereafter for a period of
two (2) years from the end of the shelf life of the last Product supplied by the CATALYST to KYE under this Agreement, either Party may, at reasonable times upon reasonable prior notice, inspect the manufacturing books and records of the other
Party, including audits of any manufacturer, pertaining to its obligations under this Agreement for purposes of ensuring compliance with the terms of this Agreement. 

ARTICLE 10 - PRODUCT RECALL 
  

	10.1	 Product Recall. 

  
 17 

	(1)	 If any Regulatory Authority or other governmental agency issues or requests a recall or takes similar action
in connection with the Product in Canada, or if either Party reasonably determines after consultation with the other Party that an event has occurred which may result in the need for a recall or market withdrawal of the Product, then the Party
notified of or wishing to implement such recall or similar action shall, within one (1) Business Day, inform the other Party thereof. The Parties shall promptly discuss and work together to effect an appropriate course of action to implement
any recall, provided that neither Party shall be prohibited from unilaterally taking any action which it determines in good faith it is required to take to minimize risk to public health and safety or to comply with Applicable Laws, KYE shall be
responsible for notifying Health Canada of any recall of the Product in Canada once it becomes the Marketing Authorization holder. 

  

	(2)	 Without limitation to the Parties’ respective indemnification obligations under this Agreement
regarding third party claims, if a Party (the “Innocent Party”) is reasonably required to incur any out-of-pocket expenses due to a Product recall in
Canada (“Recall Expenses”), and if the reason for the recall in Canada is a matter for which the other Party (the “Responsible Party”) is obligated to indemnify the Innocent Party as provided in Article 16 of
this Agreement, then the Responsible Party shall be liable for all Recall Expenses of both Parties. Without limitation, the Recall Expenses for which the Responsible Party shall be liable include notification expenses, costs for the return of
recalled Product, costs of reporting to Health Canada, costs to destroy recalled Product, and customer fees and penalties arising due to the recall. The Innocent Party shall provide to the Responsible Party documentation which verifies all Recall
Expenses for which liability or reimbursement is claimed. 

  

	(3)	 If a recall is not due to the fault or responsibility of either Party, then the Parties shall share the
Recall Expenses equally. 

  

	(4)	 The Parties will cooperate and assist each other on all Recalls. If possible, the Parties shall discuss and
agree on Recall Expenses prior to being incurred, provided that neither Party shall be prohibited from unilaterally taking any action or incurring any reasonable Recall Expenses which it determines in good faith it is required to take or incur to
minimize risk to public health and safety or to comply with Applicable Laws. 

 ARTICLE 11 - INTELLECTUAL PROPERTY RIGHTS

  

	11.1	 Reservation of Rights. Except for the exclusive license granted to KYE under this Agreement, no
right, title, or interest is granted, whether expressly or by implication, to any technology or Intellectual Property Rights owned by either Party. Each Party hereby reserves all rights not expressly granted under this Agreement.

  

	11.2	 Trademarks. CATALYST shall be responsible for the selection, registration and maintenance of all
Trademarks used by KYE in connection with the Product in Canada. KYE shall not acquire or assert any right, title, and interest in and to the Trademarks or marks substantially similar to the Trademarks. KYE shall not use any Trademark in connection
with the Marketing of the Product other than as contemplated herein. 

  
 18 

	11.3	 IP Claims. 

 

	(1)	 Intellectual Property Representation. CATALYST represents and warrants that, to the best of its
knowledge, the manufacture of the Product by CATALYST (including the route of synthesis, formulation and manufacturing process) for supply to KYE and the distribution and sale of the Product by KYE in Canada in accordance with the provisions of this
Agreement does not, infringe upon the Intellectual Property Rights of any third party in the country of manufacture. CATALYST also represents and warrants that it does not own or license any granted or pending patent applications in Canada with
respect to the Product, including any patents/applications relating to the use or manufacturing of the Product. 

  

	(2)	 Termination Due to IP Claim. If an IP Claim is threatened or commenced against any Party, and if the
Parties reasonably determine that the likelihood and consequences of an unfavourable rulings warrants that KYE refrain from Marketing the Product in Canada, or if KYE agrees to refrain from Marketing the Product in Canada pursuant to a settlement of
an IP Claim, or if a court of competent jurisdiction makes a final determination that the Marketing of the Product in Canada infringes the Intellectual Property Rights in Canada of a third party and all rights to appeal have been exhausted or
expired, then KYE may terminate this Agreement upon delivering written notice to the CATALYST. 

 ARTICLE 12 -
REPRESENTATIONS & WARRANTIES 
  

	12.1	 Mutual Representations and Warranties. Each Party represents and warrants to the other Party as
follows, which representations and warranties shall be true as at the date hereof and throughout the term of this Agreement: 

  

	 	i.	 it has full corporate power and authority and has taken all corporate action necessary to enter and perform
its obligations under this Agreement; and 

  

	 	ii.	 this Agreement is its legal, valid, and binding obligation, enforceable in accordance with the terms and
conditions hereof. 

  

	 	iii.	 it has not violated and will not violate any provision of the U.S. Foreign Corrupt Practices Act of
1977, the OECD Convention on Bribery of Foreign Public Officials in International Business Transactions, Canadian Corruption of Foreign Officials Act and the rules and regulations thereunder and any other similar foreign or domestic law or
regulation; or made or make any bribe, rebate, payoff, influence payment, kickback or other unlawful payment in connection with this Agreement and it has policies and procedures to ensure, and which are reasonably expected to ensure, continued
compliance with the provisions of this paragraph. 

  

	12.2	 CATALYST General Warranties. CATALYST represents and warrants to KYE as follows:

  

	 	i.	 Technical Expertise. CATALYST has and throughout the term of this Agreement will continue to have the
technical expertise, experience and personnel necessary to manufacture (including use of contract manufacturers) and supply the Product in the manner contemplated by this Agreement; 

  
 19 

	 	ii.	 Agreement Will Not Cause Breach. The execution, delivery and performance of this Agreement by
CATALYST will not result in CATALYST’s violation of or default under any Applicable Laws or any material agreement or instrument by which CATALYST is bound; 

 

	 	iii.	 No Lawsuits. To the best of its knowledge, and as of the date hereof, there have not been any claims,
lawsuits, arbitrations, legal or administrative or regulatory proceedings, charges, or complaints or investigations by any third party or government authority threatened, commenced, pending or proceeding against CATALYST, and CATALYST has not
received any notice thereof, which relate to NDS, the Product, the API, or CATALYST’s right to develop, manufacture, use or sell the Product and/or the API, or which could materially prevent CATALYST from complying with its obligations under
this Agreement; and 

  

	 	iv.	 Information. To the best of its knowledge, all information relating to the Product delivered to KYE
or to be delivered to KYE during the term of this Agreement by or on behalf of CATALYST was and shall be, as of the date of delivery, in all material respects accurate and correct and CATALYST is not and shall not be aware of any information which
would be required to be disclosed to make such information not misleading. 

  

	12.3	 CATALYST Manufacturing and Supply Warranty. CATALYST warrants and represents to KYE that all Product
delivered to KYE hereunder shall: 

  

	 	i.	 comply with the applicable purchase order given in accordance with this Agreement; 

 

	 	ii.	 be manufactured by CATALYST in accordance with (i) the terms of this Agreement and the Quality
Agreement, (ii) the requirements of the Marketing Authorization, and (iii) all applicable GMPs and Applicable Laws; 

  

	 	iii.	 be manufactured at the Facility which is approved by the Regulatory Authorities and subject to Sections
6.3 and 6.5 of this Agreement; 

  

	 	iv.	 not be adulterated or misbranded under any Applicable Laws in Canada; 

 

	 	v.	 have at least [***] of the approved Product shelf-life remaining at the time of delivery to agreed upon
destination port or airport, and 

  

	 	vi.	 be free from unacceptable defects in material, manufacturing, and workmanship when delivered to KYE for the
shelf-life of the Product, subject to the provisions of Article 10. 

  

	12.4	 KYE General Warranties. KYE represents and warrants to CATALYST that: 

 

	 	i.	 Agreement Will Not Cause Breach. The execution, delivery, and performance of this Agreement by KYE
will not result in KYE’s violation of or default under any Applicable Laws or any material agreement or instrument by which KYE is bound; and 

  
 20 

	 	ii.	 No Lawsuits. As of the date hereof there have not been any claims, lawsuits, arbitrations, legal or
administrative or regulatory proceedings, charges, or complaints or investigations by any third party or government authority threatened, commenced, pending or proceeding against KYE, and KYE has not received any notice thereof, which could prevent
KYE from complying with its material obligations under this Agreement. 

  

	 	iii.	 Without limiting anything herein, KYE shall comply with all Applicable Laws in performing this Agreement,
including all marketing, promotional material or advertising activities conducted by it. 

 KYE shall be
responsible for all price reporting for the Products to all governmental agencies, as well as any Third-Party pricing publications in Canada and shall do so accurately and in a timely manner. 

 

	12.5	 Disclaimer. EXCEPT FOR THE WARRANTIES AND REPRESENTATIONS PROVIDED OR REFERENCED IN THIS AGREEMENT,
THE PARTIES MAKE NO OTHER WARRANTIES OR REPRESENTATIONS TO EACH OTHER, EXPRESS OR IMPLIED, INCLUDING THOSE WITH RESPECT TO THE PRODUCT, WHETHER STATUTORY OR OTHERWISE, AND EACH PARTY SPECIFICALLY DISCLAIMS ALL OTHER WARRANTIES, INCLUDING ANY IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 

 ARTICLE 13 - COVENANTS OF CATALYST 

 

	13.1	 Compliance. CATALYST’s at its designated Facility shall manufacture and supply the Product and
shall otherwise comply with its obligations under this Agreement all in strict compliance with all applicable GMPs, GLPs, the Laws in the Reference Jurisdiction, and all applicable licenses, governmental permits or applications in the Reference
Jurisdiction. 

  

	13.2	 Permits and Licences: CATALYST shall throughout the term of this Agreement, at its expense, obtain
and maintain any and all licenses, permits, orders, authorizations and consents required by the Regulatory Authorities to perform its obligations under this Agreement as developer and registered manufacturer of the Product. 

ARTICLE 14 - COVENANTS OF KYE 
  

	14.1	 Compliance. KYE shall be solely responsible for compliance with all Applicable Laws in Canada
relating to the Marketing of the Product. 

  

	14.2	 Permits and Licenses. KYE shall throughout the term of this Agreement, at its expense, obtain and
maintain any and all licenses, permits, orders, authorizations and consents required by Health Canada to perform its obligations under this Agreement as Marketing Authorization holder and as importer and distributor of the Product.

  
 21 

	14.3	 Sale of Product. KYE shall use its Commercially Reasonable Efforts to Market the Product in Canada.
KYE shall be responsible for all costs and expenses incurred in marketing and commercializing the Product in the Canada. 

  

	14.4	 Expansion of Monograph. KYE shall use Commercially Reasonable Efforts to submit Supplemental New Drug
Submissions to Health Canada based on the corresponding FDA submission in order to obtain approval in Canada and expand the indications in the Product Monograph, subject to Section 4.4 of this Agreement. 

ARTICLE 15 - TERM & TERMINATION 
  

	15.1	 Term. This Agreement shall commence upon the date hereof, and, unless terminated earlier in
accordance with the provisions hereof, shall continue for a period of [***] from the Launch Date (the “Initial Term”). This Agreement shall automatically renew (“Renewal Term”) for successive [***] year periods
if Net Sales of the Product exceed $CAN [***]over a [***] month period in the last year of the Initial Term or $CAN [***] during the first [***] of any Renewal Term. If this sales threshold is not exceeded during the applicable
period, this Agreement will only renew upon the mutual agreement of both Parties. 

  

	15.2	 Termination. If any one or more of the following events occur, then this Agreement may be terminated
in its entirety as set forth herein: 

  

	 	i.	 if a Party files a petition in bankruptcy or is adjudged as bankrupt, or a petition in bankruptcy is filed
against it and is not dismissed within sixty (60) days, or it becomes insolvent, takes advantage of legislation for creditor relief, has a receiver or receiver-manager appointed in relation to its assets, or discontinues its business, then the
other Party may terminate this Agreement immediately upon delivering written notice of termination; 

  

	 	ii.	 if a Party violates or fails to perform any of its material undertakings, agreements, covenants or
obligations under this Agreement (excluding matters otherwise specifically addressed with a termination right elsewhere in this Agreement) and the failure is not capable of cure or, if capable of cure, is not remedied within sixty (60) days (or
fifteen (15) Business Days in the event of a payment default) after receipt of written notice from the non-defaulting Party, then the non-defaulting Party may
terminate this Agreement immediately upon delivering written notice of termination; and 

  

	 	iii.	 if a Party wilfully or fraudulently misrepresents any fact, information or report required to be made or
disclosed under this Agreement, then the other Party may terminate this Agreement immediately upon delivering written notice of termination. 

  

	 	iv.	 [***] 

  
 22 

	 	•	 	 [***] 

  

	 	•	 	 [***] 

  

	 	•	 	 [***] 

  

	 	•	 	 [***] 

  

	15.3	 Termination – Effect on Confidential Information and Intellectual Property.

  

	(1)	 Expiration of Term/Termination Due to Fault of CATALYST. If the term of this Agreement expires
pursuant due to a fault of Catalyst or if this Agreement is terminated by KYE pursuant to Section 15.2 (Insolvency, Default or Fraud), 18.3 (Assignment Without Consent) or 18.6 (Force Majeure), (i) the Parties shall
continue to honor their obligations under all outstanding, and binding, purchase orders including, but not limited to payment and supply obligations in accordance with their terms; (ii) the applicable provisions of this Agreement with respect
to indemnity and other matters shall remain in full force and effect; (iii) upon expiration or written notice of termination of the Agreement, KYE may, where permitted by Applicable Law, purchase from CATALYST through purchase orders for a
period of nine (9) months post notice of termination and sell the remaining Product in its inventory. KYE shall return ownership of the Health Canada NDS and the Marketing Authorization. Each Party shall destroy all of the other Party’s
Confidential Information in its possession (whatever the format) except for documents that must be retained in order to comply with Applicable Laws, which information may be retained, but only for so long as required and subject to the
confidentiality obligations herein. 

  

	(2)	 Other Reasons for Termination. If this Agreement is terminated by CATALYST pursuant to 15.2
(Insolvency, Default or Fraud, [***], 18.3 (Assignment Without Consent) or 18.6 (Force Majeure), or if this Agreement is terminated pursuant to 11.3(2) (IP Claim), then KYE shall not have any further rights in relation to the
Health Canada Approved NDS, and neither Party shall be under any further obligation to the other in relation to the Product in Canada. KYE shall return the Health Canada Approved NDS to CATALYST and shall have no rights in relation thereto. KYE
will, at its own cost, promptly transfer to CATALYST ownership of any Marketing Authorization which has been granted to KYE for the Product in Canada. Each Party shall destroy all of the other Party’s Confidential Information in its possession
(whatever the format) except for documents that must be retained in order to comply with Applicable Laws, which information may be retained, but only for so long as required and subject to the confidentiality obligations herein.

  
 23 

	15.4	 Termination Not Exclusive Remedy. Except as may otherwise be expressly provided for herein,
termination of this Agreement due to a Party’s breach shall be without limitation to any other remedy a non-defaulting Party may have because of the breach. 

ARTICLE 16 - INDEMNIFICATION & INSURANCE 
  

	16.1	 Indemnification of CATALYST. KYE shall defend, indemnify, and hold harmless CATALYST, its Affiliates
and their respective officers, directors, employees, agents and representatives from and against all Losses arising in connection with any third-party claim, action, cause of action or demand resulting from: 

 

	 	i.	 any breach of this Agreement by KYE; 

 

	 	ii.	 any negligent or intentionally wrongful act or omission of KYE or any person acting on KYE’s behalf;

  

	 	iii.	 KYE’s specific written instructions to CATALYST regarding the Product Packaging; 

 

	 	iv.	 the transportation, storage (after delivery to KYE), or Marketing of the Product; and 

 

	 	v.	 any infringement claim as to any patent granted after the Effective Date provided that CATALYST shall
equally share (50%/50%) with KYE such Losses. 

  

	16.2	 Indemnification of KYE. CATALYST shall defend, indemnify, and hold harmless KYE, its Affiliates and
their respective officers, directors, employees, agents and representatives from and against all Losses arising in connection with any third-party claim, action, cause of action or demand resulting from: 

 

	 	i.	 any breach of this Agreement by CATALYST; 

 

	 	ii.	 the negligent or intentionally wrongful act or omission of CATALYST or any person acting on the
CATALYST’s behalf; 

  

	 	iii.	 any infringement claim as to a patent granted prior to the Effective Date; 

 

	 	iv.	 the manufacture of any Product that is Defective; 

 

	 	v.	 as to any patent granted prior to the Effective Date and equally share (50%/50%) with KYE any Losses
resulting from any infringement claim as to any patent granted after the Effective Date; and 

  
 24 

	 	vi.	 Any infringement claims involving use of a Trademark. 

 

	16.3	 Indemnification Procedure. If either Party (the “Indemnified Party”) becomes aware
of any event, circumstance, assertion, demand, suit, action, claim or proceeding in respect of which the other Party (the “Indemnifying Party”) is obliged to indemnify the Indemnified Party pursuant to this Agreement, then the
Indemnified Party shall promptly give written notice thereof to the Indemnifying Party. The notice shall specify the nature and amount of the third-party claim, to the extent that such information is available. The Indemnifying Party shall, at its
expense, assume control of the negotiation, settlement, defence or other handling of the third-party claim for and on behalf of the Indemnified Party. The Indemnifying Party shall have the sole right to select and direct legal counsel to defend the
claim. The Indemnified Party may, at its own expense, appoint its own legal counsel to participate in defending the claim, in which case the Indemnifying Party’s counsel will consult with the Indemnified Party’s counsel and will give the
Indemnified Party’s counsel the opportunity to provide comments on the defense strategy. The Indemnified Party shall cooperate with the Indemnifying Party, including assisting in the location and production of evidence and having its employees
and other representatives testify in any court proceeding, if necessary, all at the Indemnifying Party’s reasonable cost. If the Indemnifying Party assumes control of the claim, the Indemnified Party shall not settle or compromise the claim
without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld, and in any event an Indemnifying Party may settle without the consent of the Indemnified Party if there no admission of fault by the Indemnified
Party and the Indemnified Party has no further obligations in respect of the claims.. The Indemnifying Party shall not settle the claim or consent to judgment without the Indemnified Party’s written approval, which approval shall not to be
unreasonably withheld. If the Indemnifying Party fails to assume control of the defence of any third party claim, or, having elected to assume control, thereafter fails to diligently defend the claim, then the Indemnified Party shall be entitled to
contest, settle or pay the amount of the claim in good faith, and the Indemnifying Party shall be bound by the results obtained by the Indemnified Party with respect to the claim and shall remain liable to indemnify the Indemnified Party in relation
thereto. 

  

	16.4	 Insurance. CATALYST and KYE shall, during the term of this Agreement and for a period of [***] after
the expiration date of the last unit of Product sold in Canada, maintain a policy of general commercial liability and of product liability insurance for the Product insuring against, among other things, personal injury, death and damage to property.
The said policy shall have a general commercial liability limit of not less than [***] per occurrence and in the aggregate and a product liability limit of not less than [***] per occurrence and in the aggregate and shall be maintained with a
financially sound and reputable insurer. 

  

	16.5	 Survival. The expiration or earlier termination of this Agreement shall not relieve any Party hereto
from any obligations which accrued prior to such expiration or earlier termination, and shall not destroy or diminish the binding force and effect of any of the terms and conditions of this Agreement that expressly or by implication come into or
continue in effect on or after termination or expiration. Without limiting the foregoing, the obligations set forth in this Article 16, Article 17 and Section 8.4 shall survive the termination of this Agreement and
remain in full force and effect for an indefinite period after termination 

  
 25 

	16.6	 Disclaimer. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, NEITHER PARTY SHALL BE LIABLE
TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES OR EXPENSES, WHETHER IN CONTRACT, TORT OR OTHERWISE IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT. 

ARTICLE 17 - CONFIDENTIALITY 
  

	17.1	 Confidentiality. During the term of this Agreement and for five (5) years thereafter, each Party
shall maintain in strict confidence the Confidential Information (as defined below) of the other Party. A Party may not use the Confidential Information of the other Party for any purpose other than the purposes contemplated under this
Agreement, and shall not disclose such Confidential Information to any third party (including in connection with any publications, presentations or other disclosures) except to its employees, agents, consultants or advisors who have a need to know
such Confidential Information to achieve the purposes of this Agreement, or as otherwise contemplated herein for the purposes of this Agreement. Each Party shall ensure that any person to whom it discloses the other Party’s Confidential
Information is informed of the confidential nature of and duty not to disclose the information and is obligated to maintain the confidentiality thereof to the same or greater extent as provided herein. Each Party may also disclose such of the
Confidential Information of the other Party as may be required by Applicable Law or by any governmental authority having jurisdiction, provided that the Party required to disclose shall, if possible, notify the other Party prior to disclosing any
Confidential Information and provide such other Party with a reasonable opportunity to contest or limit the scope of the required disclosure and assist the other Party in obtaining any protective orders as may be appropriate. 

 

	17.2	 Definition. “Confidential Information” means all proprietary technical
information, marketing, business and financial information, scientific data, information marked confidential and all other information which a reasonable person would treat confidentially that relates to the Product or the business of a Party.
Confidential Information shall not include any information which the receiving Party can show: 

  

	 	i.	 was known to or in the possession of the receiving Party prior to its receipt from the disclosing Party;

  

	 	ii.	 is readily available to the public other than through any act or omission of the receiving Party in
contravention of this Agreement or any other agreement between the Parties; 

  

	 	iii.	 was disclosed by a third party not under an obligation of confidentiality to the disclosing Party; or

  
 26 

	 	iv.	 is subsequently independently developed by the receiving Party without use of the Confidential Information
as demonstrated by written records. 

  

	17.3	 No Publicity. Except as required by Applicable Law, neither Party shall originate any publicity, news
release or other public announcements, written or oral, whether to the public press, to stockholders, or otherwise, relating to this Agreement or any amendment hereto without the prior written approval of the other Party, which approval shall not be
unreasonably withheld. Nothing in the provision shall be deemed to prevent a Party from making such disclosures or announcements that, in the opinion of legal counsel, are legally required of such Party; provided that in any event the non-disclosing Party shall have the right to review any such disclosure and revise such disclosure to the extent it relates to the use of the non-disclosing Party’s name
or Confidential Information. 

 ARTICLE 18 - MISCELLANEOUS 

 

	18.1	 Notice. Any notice or other document required or permitted to be given pursuant to this Agreement
shall be in writing and shall be delivered by hand; by internationally recognized overnight courier or by email, in each case addressed to the Party to whom it is to be given at the contact information shown below or at such other contact
information as the Party to whom such notice is to be given shall have last notified the other Party in accordance with the provisions of this section: 

In the case of the CATALYST at: 

Catalyst Pharmaceuticals, Inc. 

355 Alhambra Circle, Suite 1250 

Coral Gables, FL 33134 

Attention: Brian Elsbernd, Chief Legal and Compliance Officer 

Email: belsbernd@catalystpharma.com 

With a copy (which shall not constitute notice) to: 

Torys LLP 

|79 Wellington Street West 

30th Floor 

Toronto, On Canada 1N 

Attn: Cheryl Reicin 

Email.creicin@torys.com 

And in the case of KYE at: 

KYE Pharmaceuticals Inc. 

2233 Argentia Road Suites 302 and 302A 

Mississauga, ON 

Canada 

L5N 2X7 

  
 27 

 Attention: Douglas Reynolds – Office of the President 

Email: dougr@kyepharma.com 

Any such notice or other document shall be deemed to have been given and received on the date of delivery, provided that if
delivery is other than during business hours (9:00 a.m. to 5:00 p.m., local time) on a Business Day in the place of receipt, such notice shall be deemed to have been given and received on the first Business Day thereafter. 

 

	18.2	 Relationship of the Parties. The relationship of the Parties is that of independent contractors. This
Agreement does not constitute any one Party hereto as the agent or legal representative of the other Party for any purpose whatsoever. Neither of the Parties grants to the other any right or authority to assume or create any obligation or
responsibility, express or implied, on behalf of it or in its name in any manner whatsoever, unless otherwise agreed to in writing by the other Party. 

  

	18.3	 Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and
their respective successors and permitted assigns. Except as otherwise expressly provided herein, KYE may not assign or transfer it rights or obligations under this Agreement, in whole or in part, or effect a change of control, without the prior
written consent of the other Party, which consent shall not be unreasonably withheld or delayed. Any assignment or transfer by KYE other than in accordance with the terms hereof shall be void and shall entitle the CATALYST to terminate this
Agreement. CATALYST may assign or transfer its rights and obligations hereunder or effect a change of control. 

  

	18.4	 No Waiver; Remedies. No Party to this Agreement shall be deemed or taken to have waived any provision
of this Agreement unless such waiver is in writing, and then such waiver shall be limited to the circumstances set forth in such written waiver. No failure or delay on the part of a Party in exercising any right, power or remedy shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies provided for hereunder shall be cumulative
of and in addition to any and all other remedies which any Party may have under this Agreement and/or under Applicable Law, and the exercise of any one or more of such remedies shall not preclude the exercise of any others. 

 

	18.5	 Time. Time shall be of the essence of this Agreement and every part hereof. 

  
 28 

	18.6	 Force Majeure. If either Party is prevented from complying, either totally or in part, with any of
the terms or provisions of this Agreement by reason of force majeure, including fire, flood, earthquake, storm, general strike, lockout, riot, war, terrorism, rebellion, accident, infestation, epidemic/pandemic, governmental action, acts of God
and/or any other cause or externally induced casualty beyond its reasonable control, whether similar to the foregoing matters or not (a “Force Majeure Event”), then, upon written notice by the Party liable to perform to the other
Party, the requirements of this Agreement or such of its provisions as may be affected, and to the extent so affected, shall be suspended during the period of such disability, provided that the Party asserting force majeure shall bear the burden of
establishing the existence of such Force Majeure Event by clear and convincing evidence, and provided further that the Party prevented from complying shall use its Commercially Reasonable Efforts to remove such disability, and shall continue
performance with the utmost dispatch whenever such causes are removed, and shall notify the other Party of the Force Majeure Event not more than five (5) Business Days from the time of the event. When such circumstances arise, the Parties shall
discuss what, if any, modification of the terms of this Agreement may be required in order to arrive at an equitable solution. If a Force Majeure Event continues for a period of longer than six(6) consecutive months or one hundred and eighty
(180) days in any twelve (12) month period, then the Party unaffected by such event may terminate this Agreement upon giving not less than thirty (30) days written notice of termination to the other Party, provided that if the Force
Majeure Event ceases within such thirty (30) day period this Agreement shall remain in full force and effect. 

  

	18.7	 Governing Law & Dispute Resolution. 

 

	(1)	 This Agreement shall be governed by and construed in accordance with the laws of the State of New York. Each
Party waives any defenses to inconvenient forum. 

  

	(2)	 All disputes arising in connection with this Agreement shall be determined by arbitration in accordance with
the Rules of Arbitration of the American Arbitration Association the place of arbitration shall be New York City, and the language of arbitration shall be English. Within twenty (20) days of one Party notifying the other Party that it wishes to
commence an arbitration, each Party shall nominate two (2) candidates (for a total of four (4) candidates) to be the sole arbitrator. If the Parties are unable to agree on one arbitrator from the four (4) candidates within seven
(7) days of exchanging names of candidates, then within five (5) days thereafter, each Party shall select one (1) arbitrator and those two (2) selected arbitrators shall select a third arbitrator as promptly practicable but in
any event within seven (7) days after they are selected. The mutually selected arbitrator shall serve as the chair of the arbitration panel. All candidates for arbitrators and selected arbitrators shall have experience and familiarity with
pharmaceutical distribution and license agreements. The determination of any such arbitration shall be final and binding on the Parties and no appeal shall lie therefrom. Any award rendered may be entered in any court having jurisdiction.
Responsibility for the costs of the arbitration proceeding shall be determined in the discretion of the arbitration panel. The Parties shall keep all details of the arbitration proceeding and arbitral award strictly confidential and shall use all
reasonable efforts to take such action as may be appropriate to prevent the unauthorized disclosure of the proceedings, any information disclosed in connection therewith and the award granted, including requiring all participants (including any
witnesses) to agree to abide by such confidentiality. Notwithstanding the foregoing, neither Party shall be precluded from applying to a court of competent jurisdiction for any relief in the nature of injunction, specific performance, or other
equitable remedy. 

  
 29 

	18.8	 Severability. If any provision in this Agreement is held to be invalid, void or unenforceable, then
that provision shall be severed from this Agreement, and the remainder of this Agreement shall not be affected thereby and shall be enforced to the fullest extent permitted by Applicable Law. The Parties agree to renegotiate any such invalid, void
or unenforceable provision in good faith in order to provide a reasonably acceptable alternative consistent with the basic purposes of this Agreement and to as closely as possible give effect to the intent of the invalid, void or unenforceable
provision. 

  

	18.9	 Entire Agreement. This Agreement (including the Schedules attached hereto and any Quality Agreement
and Safety Data Exchange Agreement (SDEA) entered into by the Parties,) constitutes the entire agreement between the Parties with respect to the subject matter hereof, and all prior or agreements, whether written or oral, are superseded hereby. This
Agreement may be amended only in writing executed by the Parties. 

  

	18.10	 Headings. The captions and headings contained herein are for convenience of the Parties and in no way
define, limit, or describe the scope of this Agreement. 

  

	18.11	 Language. The language of this Agreement and all proceedings taken in relation thereto shall be
English. 

  

	18.12	 Currency. Unless otherwise specifically provided, all references to money amounts are expressed in
terms of United States dollars and all payments made pursuant to this Agreement shall be made in that currency. 

  

	18.13	 Counterparts and Delivery. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. This Agreement may be executed and delivered by pdf or other form of electronic transmission, and the Parties may rely on a pdf or
electronic signature as though it were an original signature. 

  
 30 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
Effective Date 
  

									
	 KYE Pharmaceuticals Inc.
	 		 	 CATALYST Pharmaceuticals, Inc

					
	 By:
	 	 /s/ Douglas Reynolds
	 		 	 By:
	 	 /s/ Pat McEnany

	 Name:
	 	 Douglas Reynolds
	 		 	 Name:
	 	 Pat McEnany

	 Title:
	 	 President
	 		 	 Title:
	 	 President and CEO

	 I have authority to bind the corporation
	 		 	 I have authority to bind the corporation

 Schedule A: Product Information 

  
 31 

 SCHEDULE A 

PRODUCT INFORMATION 

[***]

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