Document:

Issuer Share Repurchase Transaction Confirmation

 Exhibit 10.9 
 EXECUTION COPY 
  

															
		 		 		 		 		 		 	Deutsche Bank	  	

							
		 		 		 		 		 		 	 Deutsche Bank AG, London Branch

		 		 		 		 		 		 	 Winchester house

		 		 		 		 		 		 	 1 Great Winchester St

		 		 		 		 		 		 	 London EC2N 2DB

		 		 		 		 		 		 	 Telephone: 44 20 7545 8000

							
		 		 		 		 		 		 	 c/o Deutsche Bank Securities Inc.

		 		 		 		 		 		 	 60 Wall Street

		 		 		 		 		 		 	 New York, NY 10005

		 		 		 		 		 		 	 Telephone: 212-250-2500

  

			
	DATE:	 	April 9, 2008
		
	TO:	 	Endo Pharmaceuticals Holdings Inc.
	ATTENTION:	 	Chief Legal Officer
	TELEPHONE:	 	610-558-9800
	FACSIMILE:	 	610-558-9684
		
	FROM:	 	Deutsche Bank AG, London Branch
	TELEPHONE:	 	44 20 7545 0556
	FACSIMILE:	 	44 11 3336 2009
		
	SUBJECT:	 	Collared ASR: Issuer Share Repurchase Transaction
		
	REFERENCE NUMBER(S):	 	252011

 The purpose of this facsimile agreement (this “Confirmation”) is to confirm the terms and
conditions of the transaction entered into between Deutsche Bank AG, London Branch (“Deutsche”) and Endo Pharmaceuticals Holdings Inc. (“Counterparty”) on the Trade Date specified below (the
“Transaction”). This Confirmation constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below. This Confirmation constitutes the entire agreement and understanding of the parties with respect
to the subject matter and terms of the Transaction and supersedes all prior or contemporaneous written and oral communications with respect thereto. 
 DEUTSCHE BANK AG IS NOT REGISTERED AS A BROKER OR DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. DEUTSCHE BANK SECURITIES INC. (“AGENT”) HAS ACTED SOLELY AS AGENT IN CONNECTION WITH THE TRANSACTION AND HAS
NO OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE OR OTHERWISE WITH RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION. DEUTSCHE BANK AG, LONDON BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

 The definitions contained in the 2006 ISDA Definitions (the “2006 Definitions”) and the definitions contained in the 2002 ISDA Equity
Derivatives Definitions (the “Equity Definitions” and, together with the 2006 Definitions, the “Definitions”), 
  

			
	 Chairman of the Supervisory Board: Clemens Börsig
  
 Board of Managing Directors: Hermann-Josef Lamberti, Josef Ackermann, Anthony Dilorio, Hugo Banziger

	  	Deutsche Bank AG is regulated by the FSA for the conduct of designated investment business in the UK, is a member of the London Stock Exchange and is a limited liability company incorporated
in the Federal Republic of Germany HRB No. 30 000 District Court of Frankfurt am Main; Branch Registration No. in England and Wales BR000005, Registered address: Winchester House, 1 Great Winchester Street, London EC2N 2DB.

 
in each case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”), are incorporated into this Confirmation. In
the event of any inconsistency between the 2006 Definitions and the Equity Definitions, the Equity Definitions will govern. In the event of any inconsistency between the Definitions and the terms of this Confirmation, the terms of this Confirmation
shall govern. 
 This Confirmation evidences a complete and binding agreement between Deutsche and Counterparty as to the terms of the Transaction to which
this Confirmation relates. This Confirmation shall supplement, form a part of, and be subject to an agreement (the “Agreement”) in the form of the ISDA 2002 Master Agreement as if Deutsche and Counterparty had executed an agreement
in such form (without any Schedule but with such other elections set forth in this Confirmation). For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement. 
 2. The Transaction constitutes a Share Forward Transaction for purposes of the Equity Definitions. The terms of the particular Transaction to which this Confirmation
relates are as follows: 
  

			
	General Terms:	  	
		
	 Trade Date:
	  	April 9, 2008
		
	 Effective Date:
	  	The closing date for the initial issuance of the Convertible Notes
		
	 Convertible Notes:
	  	1.75% Senior Subordinated Convertible Notes of Counterparty due April 15, 2015, offered pursuant to an Offering Memorandum dated April 9, 2008
		
	 Seller:
	  	Deutsche
		
	 Buyer:
	  	Counterparty
		
	 Shares:
	  	The common stock of Counterparty, par value USD 0.01 per share (Ticker Symbol: “ENDP”)
		
	 Number of Shares:
	  	As provided in Annex B to this Confirmation.
		
	 Prepayment:
	  	Applicable
		
	 Variable Obligation:
	  	Applicable
		
	 Prepayment Amount:
	  	As provided in Annex B to this Confirmation.
		
	 Prepayment Date:
	  	The Effective Date
		
	 Forward Floor Price:
	  	As provided in Annex B to this Confirmation.
		
	 Forward Cap Price:
	  	As provided in Annex B to this Confirmation.
		
	 Initial Price:
	  	As provided in Annex B to this Confirmation.
		
	 Exchange:
	  	The NASDAQ Global Select Market
		
	 Related Exchange:
	  	All Exchanges

  

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	Valuation Terms:	  	
		
	 Valuation Date:
	  	The final Averaging Date
		
	 Averaging Dates:
	  	As provided in Annex B to this Confirmation.
		
	 Averaging Date Disruption:
	  	In lieu of Section 6.7(c) of the Equity Definitions, if any Averaging Date is a Disrupted Day, the Averaging Date that would have occurred on such date shall be postponed to the first
succeeding Scheduled Trading Day that is not a Disrupted Day and that is not or is not deemed to be already an Averaging Date; provided that if the final Averaging Date has not occurred on or prior to the 8th Scheduled Trading Day immediately following the scheduled final Averaging Date (the “Final Disruption Date”), the Final Disruption Date shall be the Averaging Date
for all remaining Averaging Dates and the VWAP Price for that Averaging Date or those Averaging Dates shall be determined by the Calculation Agent based on its good faith estimate of the value of the Shares on the Final Disruption Date. The
Calculation Agent shall be entitled to extend the Final Disruption Date if a Disrupted Day occurs other than as the result of a Market Disruption Event or of a Scheduled Trading Day not being an Exchange Business Day.
		
		  	Notwithstanding the foregoing and anything to the contrary in the Equity Definitions, if any such Scheduled Trading Day is a Disrupted Day because of a Market Disruption Event, the
Calculation Agent may determine that such Scheduled Trading Day is a Disrupted Day only in part, in which case such Scheduled Trading Day shall be an Averaging Date and the Calculation Agent shall determine the VWAP Price for such Averaging Date
based on Rule 10b-18 eligible transactions in the Shares on such Disrupted Day effected at times on such day during which the relevant Market Disruption Event had not occurred and/or was not continuing, and the Settlement Price shall be determined
using an appropriately weighted average of VWAP Prices instead of an arithmetic average.
		
	 Averaging Period:
	  	The period beginning on, and including, the first Averaging Date and ending on, and including, the Valuation Date.
		
	 VWAP Price:
	  	For any Scheduled Trading Day, the Rule 10b-18 dollar volume weighted average price per Share for such Scheduled Trading Day based on transactions executed during such Scheduled Trading Day,
as reported on Bloomberg Page “ENDP.Q <Equity> AQR SEC” (or any successor thereto) on such Scheduled Trading Day in respect of the period from 9:30 A.M. to 4:00 P.M. (New York City time) on such Scheduled Trading Day or, in the event
such price is not so reported on such Scheduled Trading Day for any reason, as reasonably determined by the Calculation Agent.
		
	 Market Disruption Event:
	  	Section 6.3(a) of the Equity Definitions is hereby amended by deleting the words “during the one hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in
Valuation Time or

  

 3 

			
		  	Knock-out Valuation Time, as the case may be,” in clause (ii) thereof, and by amending and restating clause (a)(iii) thereof in its entirety to read as follows: “(iii) an Early
Closure that the Calculation Agent determines is material.”
		
		  	Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line
thereof.
		
	Settlement Terms:	  	
		
	 Initial Repurchase:
	  	On the Effective Date, Seller shall deliver to Buyer a number of Shares equal to the Initial Repurchase Amount.
		
	 Initial Repurchase Amount:
	  	As provided in Annex B to this Confirmation.
		
	 Settlement Date:
	  	The date one Settlement Cycle following the Valuation Date.
		
	 Physical Settlement:
	  	Applicable
		
	 Settlement:
	  	On the Settlement Date, Seller shall deliver to Buyer the Number of Shares to be Delivered, if a positive number. If, as a result of the provisions of Section 8(c) below, the Number of Shares to
be Delivered is a negative number, Buyer shall deliver to Seller the absolute value of the Number of Shares to be Delivered in accordance with Section 8(q) below.
		
	 Number of Shares to be Delivered:
	  	The Share Number reduced by the Initial Repurchase Amount, but not below zero unless the provisions of Section 8(c) below apply.
		
	 Share Number:
	  	A number of Shares (rounded to the nearest whole Share) equal to (A) the Prepayment Amount divided by (B) the Settlement Price; provided that the Share Number shall not be less
than the Minimum Shares and shall not be greater than the Maximum Shares.
		
	 Settlement Price:
	  	Subject to “Valuation Disruption” above, the arithmetic average of the VWAP Prices for all Averaging Dates.
		
	 Minimum Shares:
	  	A number of Shares (rounded to the nearest whole Share) equal to (A) the Prepayment Amount divided by (B) the Forward Cap Price.
		
	 Maximum Shares:
	  	A number of Shares (rounded to the nearest whole Share) equal to (A) the Prepayment Amount divided by (B) the Forward Floor Price.
		
	 Amendment to Equity Definitions:
	  	The Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein by Deutsche relating to restrictions, obligations,
limitations or requirements under applicable securities laws as a result of the fact that Counterparty is the issuer of the Shares.
		
		  	The phrase “the Excess Dividend Amount, if any, and” shall be deleted from Section 9.2(a)(iii) of the Equity Definitions.

  

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	Share Adjustments:	  	
		
	 Potential Adjustment Events:
	  	As set forth in Section 11.2(e) of the Equity Definitions; provided that Section 11.2(e)(v) of the Equity Definitions is amended by adding, immediately following the word
“Shares”, the phrase “(other than any repurchase by the Issuer of Shares delivered by Seller pursuant to the Transaction and the note hedge transaction entered into between Deutsche and Counterparty on the date hereof)”. In
addition, the occurrence of a Disrupted Day on a day that is or otherwise would have been an Averaging Date shall be a Potential Adjustment Event.
		
	 Method of Adjustment:
	  	Calculation Agent Adjustment; provided that the Equity Definitions shall be amended by (A) adding the phrase “, or the occurrence,” after the word “terms” in the
fourth line of Section 11.2(c), (B) replacing the words “diluting or concentrative” in Sections 11.2(a), 11.2(c) (in two instances) and 11.2(e)(vii) with the word “material” and (C) adding the words “or the Transaction”
after the words “theoretical value of the relevant Shares” in Sections 11.2(a), 11.2(c) and 11.2(e)(vii); and provided, further, that adjustments may be made to account for changes in volatility, expected dividends, expected
correlation, stock loan rate and liquidity relative to the relevant Share.
		
	 Extraordinary Dividend:
	  	Any dividend or distribution that has an ex-dividend date occurring on or after the date hereof and on or prior to the Valuation Date.
		
	Extraordinary Events:	  	
		
	 New Shares:
	  	In the definition of New Shares in Section 12.1(i) of the Equity Definitions, the text in clause (i) shall be deleted in its entirety and replaced with “publicly quoted, traded or listed on
any of the New York Stock Exchange, the American Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors).”
		
	 Consequences of Merger Events:
	  	
		
	 (a) Share-for-Share:
	  	Modified Calculation Agent Adjustment
		
	 (b) Share-for-Other:
	  	Cancellation and Payment
		
	 (c) Share-for-Combined:
	  	Component Adjustment
		
	 Tender Offer:
	  	Applicable
		
	 Consequences of Tender Offers:
	  	
		
	 (a) Share-for-Share:
	  	Modified Calculation Agent Adjustment
		
	 (b) Share-for-Other:
	  	Modified Calculation Agent Adjustment
		
	 (c) Share-for-Combined:
	  	Modified Calculation Agent Adjustment

  

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	 Modified Calculation Agent Adjustment:
	  	For greater certainty, the definition of “Modified Calculation Adjustment” in Sections 12.2 and 12.3 of the Equity Definitions shall be amended by adding the following italicized
language to the stipulated parenthetical provision: “(including adjustments to account for changes in volatility, expected dividends, expected correlation, stock loan rate or liquidity relevant to the Shares or to the Transaction)
from the Announcement Date to the Merger Date (Section 12.2) or Tender Offer Date (Section 12.3)”.
		
	 Nationalization, Insolvency or Delisting:
	  	Cancellation and Payment; provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if the Exchange is located in
the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, the American Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors);
if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall thereafter be deemed to be the Exchange.
		
	Additional Disruption Events:	  	
		
	 (a) Change in Law:
	  	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the
phrase “or announcement or statement of the formal or informal interpretation” and (ii) immediately following the word “Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by the Hedging Party
on the Trade Date”.
		
	 (b) Failure to Deliver
	  	Applicable
		
	 (c) Insolvency Filing:
	  	Applicable
		
	 (d) Hedging Disruption:
	  	Applicable
		
	 (e) Increased Cost of Hedging:
	  	Applicable
		
	 (f) Loss of Stock Borrow:
	  	Applicable
		
	 Maximum Stock Loan Rate:
	  	250 basis points per annum
		
	 (g) Increased Cost of Stock Borrow:
	  	Applicable
		
	 Initial Stock Loan Rate:
	  	25 basis points per annum
		
	 Hedging Party:
	  	Deutsche for all applicable Additional Disruption Events
		
	Determining Party:	  	Deutsche for all Extraordinary Events
		
	Non-Reliance:	  	Applicable
		
	 Agreements and Acknowledgments
 Regarding Hedging
Activities:
	  	Applicable

  

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	Additional Acknowledgments:	  	Applicable

 3. Calculation Agent:
            Deutsche 
 4. Account Details: 
 Deutsche Payment Instructions: 
 Deutsche
Bank AG, New York 
 DTC # 573 
 A/C Deutsche Bank London 
 Counterparty Payment Instructions: 
 To be provided by Counterparty. 
 5.
Offices: 
 The Office of Deutsche for the Transaction is: 
 Deutsche Bank AG, London Branch 
 Winchester
house 
 1 Great Winchester St, London EC2N 2DB 
 The Office of Counterparty for the Transaction is: 
 Endo Pharmaceuticals Holdings Inc. 
 100 Endo Boulevard 
 Chadds Ford, PA 19317

 6. Notices: For purposes of this Confirmation: 
 (a) Address for notices or communications to Counterparty: 
  

	 	To:	Endo Pharmaceuticals Holdings Inc. 

 100 Endo Boulevard

 Chadds Ford, PA 19317 
 Attn:
Chief Legal Officer 
 Fax No.: 610-558-9684 
 Tel No.: 610-558-9800 
 (b) Address for notices or communications to Deutsche: 
  

	 	To:	c/o Deutsche Bank Securities Inc. 

 60 Wall Street,
NYC60-0425 
 New York, New York 10005-2858 
 Attn: Equity Capital Markets 
 Fax No.: 212-797-0058 
 Tel No.: 212-250-2717 
 For payments and
deliveries: 
  

	 	To:	Bank of New York 

 ABA 021-000-018 
 SWIFT IRVTUS3N 
 Deutsche Bank Securities
Inc. 
 A/C 8900327634 
  

 7 

 7. Representations, Warranties and Agreements: 
 Mutual Representations: Each of Deutsche and Counterparty represents and warrants to, and agrees with, the other party that: 
  

	 	(i)	Tax Disclosure. Notwithstanding anything to the contrary herein, in the Equity Definitions or in the Agreement, and notwithstanding any express or implied claims of
exclusivity or proprietary rights, the parties (and each of their employees, representatives or other agents) are authorized to disclose to any and all persons, beginning immediately upon commencement of their discussions and without limitation of
any kind, the tax treatment and tax structure of the Transaction, and all materials of any kind (including opinions or other tax analyses) that are provided by either party to the other relating to such tax treatment and tax structure.

  

	 	(ii)	Commodity Exchange Act. It is an “eligible contract participant” within the meaning of Section 1a(12) of the U.S. Commodity Exchange Act, as amended (the
“CEA”). The Transaction has been subject to individual negotiation by the parties. The Transaction has not been executed or traded on a “trading facility” as defined in Section 1a(33) of the CEA. It has entered into
the Transaction with the expectation and intent that the Transaction shall be performed to its termination date. 

  

	 	(iii)	Securities Act. It is a “qualified institutional buyer” as defined in Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities
Act”), or an “accredited investor” as defined under the Securities Act. 

  

	 	(iv)	Investment Company Act. It is a “qualified purchaser” as defined under the U.S. Investment Company Act of 1940, as amended (the “Investment Company
Act”). 

  

	 	(v)	ERISA. The assets used in the Transaction (1) are not assets of any “plan” (as such term is defined in Section 4975 of the U.S. Internal Revenue Code (the
“Code”)) subject to Section 4975 of the Code or any “employee benefit plan” (as such term is defined in Section 3(3) of the U.S. Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)) subject to Title I of ERISA, and (2) do not constitute “plan assets” within the meaning of Department of Labor Regulation 2510.3-101, 29 CFR Section 2510-3-101. 

 Counterparty Representations: In addition to the representations and warranties in the Agreement and those contained elsewhere herein, Counterparty represents,
warrants, acknowledges and covenants that: 
  

	 	(i)	Counterparty is not as of the Trade Date and as of the date on which Counterparty delivers any Shares or Share Termination Delivery Units hereunder, and shall not be after giving
effect to the transactions contemplated hereby, “insolvent” (as such term is defined in Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and Counterparty would
be able to purchase a number of Shares equal to the Number of Shares in compliance with the laws of the jurisdiction of Counterparty’s incorporation or organization. 

  

	 	(ii)	Counterparty shall, as soon as practicable, provide written notice to Deutsche upon obtaining knowledge of the occurrence of any event that would constitute an Event of Default, a
Potential Event of Default, a Potential Adjustment Event, a Merger Event or any other Extraordinary Event; provided, however, that should Counterparty be in possession of material non-public information regarding Counterparty, Counterparty
shall not communicate such information to Deutsche. 

  

 8 

	 	(iii)	Counterparty has (and shall at all times during the Transaction have) the capacity and authority to invest directly in the Shares underlying the Transaction and has not entered into
the Transaction with the intent to avoid any regulatory filings. 

  

	 	(iv)	Counterparty’s investments in and liabilities in respect of the Transaction, which it understands are not readily marketable, are not disproportionate to its net worth, and
Counterparty is able to bear any loss in connection with the Transaction, including the loss of its entire investment in the Transaction. 

  

	 	(v)	Counterparty is not aware of any material nonpublic information concerning itself or the Shares, and Counterparty acknowledges and agrees that it has not provided Deutsche with any
material nonpublic information in connection with the Transaction. 

  

	 	(vi)	Counterparty understands, agrees and acknowledges that Deutsche has no obligation or intention to register the Transaction under the Securities Act, any state securities law or
other applicable federal securities law. 

  

	 	(vii)	Counterparty is not, and after giving effect to the transactions contemplated hereby will not be, an “investment company” as such term is defined in the Investment Company
Act. 

  

	 	(viii)	Counterparty understands, agrees and acknowledges that no obligations of Deutsche to it hereunder shall be entitled to the benefit of deposit insurance and that such obligations
shall not be guaranteed by any affiliate of Deutsche or any governmental agency. 

  

	 	(ix)	(A) Counterparty is acting for its own account, and it has made its own independent decisions to enter into the Transaction and as to whether the Transaction is appropriate or
proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary, (B) Counterparty is not relying on any communication (written or oral) of Deutsche or any of its affiliates as investment advice or as a
recommendation to enter into the Transaction (it being understood that information and explanations related to the terms and conditions of the Transaction shall not be considered investment advice or a recommendation to enter into the Transaction)
and (C) no communication (written or oral) received from Deutsche or any of its affiliates shall be deemed to be an assurance or guarantee as to the expected results of the Transaction. 

  

	 	(x)	Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that Deutsche is not making any representations or warranties with respect
to the treatment of the Transaction under FASB Statements 128, 133, 149 or 150 (or under any successor statement), EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue statements), under FASB’s Liabilities & Equity Project,
or under any other accounting guidance. 

  

	 	(xi)	Counterparty is not entering into the Transaction for the purpose of (i) creating actual or apparent trading activity in the Shares (or any security convertible into or
exchangeable for the Shares) or (ii) raising or depressing or otherwise manipulating the price of the Shares (or any security convertible into or exchangeable for the Shares), in either case in violation of the U.S. Securities Exchange Act of
1934, as amended (the “Exchange Act”). 

  

	 	(xii)	Counterparty’s filings under the Securities Act, the Exchange Act, and other applicable securities laws that are required to be filed have been filed and, as of the respective
dates thereof and as of the date of this representation, there is no misstatement of material fact contained therein or omission of a material fact required to be stated therein or necessary to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. 

  

 9 

	 	(xiii)	Counterparty acknowledges its responsibilities under applicable law (including, without limitation, the Securities Act and Section 9 and Section 10(b) of the Exchange Act)
in connection with the Transaction. Without limiting the generality of the foregoing or Section 3(a)(iii) of the Agreement, the Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act. 

  

	 	(xiv)	The Transaction, and any repurchase of the Shares by Counterparty in connection with the Transaction, is pursuant to a publicly announced Share repurchase program that has been
approved by Counterparty’s board of directors (including engaging in derivative transactions) and any such repurchase has been, or shall when so required be, publicly disclosed in its periodic filings under the Exchange Act and its financial
statements and notes thereto. 

  

	 	(xv)	Counterparty shall deliver to Deutsche an opinion of counsel, dated as of the Trade Date and reasonably acceptable to Deutsche in form and substance, with respect to the matters set
forth in Section 3(a) of the Agreement. 

  

	 	(xvi)	Counterparty is not as of the date hereof engaged in, and will not, during the period from, and including, the date hereof to, and including, the Valuation Date, engage in a
distribution, as such term is used in Regulation M under the Exchange Act that would preclude purchases by Deutsche of the Shares or cause Deutsche to violate any law, rule or regulation with respect to such purchases. 

  

	 	(xvii)	Counterparty shall, on or prior to the date hereof, notify Deutsche of the total number of Shares purchased in Rule 10b-18 purchases of blocks pursuant to the once-a-week block
exception set forth in Rule 10b-18(b)(4) under the Exchange Act by or for Counterparty or any of its affiliated purchasers (as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) during each of the four calendar weeks
preceding such day and during the calendar week in which such day occurs (“Rule 10b-18 purchase” and “blocks” each being used as defined in Rule 10b-18). 

  

	 	(xviii)	Without the prior written consent of Deutsche, Counterparty shall not, and shall cause its affiliates and affiliated purchasers (each as defined in Rule 10b-18 under the Exchange
Act) not to, directly or indirectly (including, without limitation, by means of a derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares
(or equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable for shares of Shares (other than purchases from, by or on behalf of directors,
officers and employees of Counterparty and its affiliates that are not “Rule 10b-18 purchases” as such term is defined in Rule 10b-18) during the period from, and including, the date hereof to, and including, the Valuation Date, and none
of Counterparty or any of its affiliates or affiliated purchasers (each as defined in Rule 10b-18 under the Exchange Act) has taken any such action prior to the date hereof that would affect the Averaging Period. 

  

	 	(xix)	At any time during the period from, and including, the date hereof to, and including, the Valuation Date, Counterparty shall notify Deutsche simultaneously with any public
announcement (as defined in Rule 165(f) under the Securities Act) of any merger, acquisition, or similar transaction involving a recapitalization relating to Counterparty (other than any such transaction in which the consideration consists solely of
cash and there is no valuation period) and promptly deliver to Deutsche a certificate indicating (A) Counterparty’s average daily Rule 10b-18 purchases (as defined in Rule 10b-18) during the three full calendar months preceding the date of
the announcement of such transaction and (B) Counterparty’s block purchases (as defined in Rule 10b-18) effected pursuant to paragraph (b)(4) of Rule 10b-18 during the three full calendar months preceding the date of the announcement of
such transaction. In addition, Counterparty shall promptly notify Deutsche of the earlier to occur of the completion of such transaction and the completion of the vote by target stockholders. Counterparty acknowledges that any such public
announcement may cause Deutsche to elect to treat one or more Scheduled Trading Days during the term of the Transaction as Disrupted Days pursuant to Section 8(n) of this Confirmation below. Accordingly, Counterparty acknowledges that its
actions in relation to any such announcement or transaction must comply with the standards set forth in subclause 8(n)(ii) below. 

  

 10 

 8. Other Provisions: 
 (a) Alternative Calculations and Payment by Deutsche on Early Termination and on Certain Extraordinary Events. If Deutsche shall owe Counterparty any amount pursuant to Section 12.2, 12.3, 12.6, 12.7 or
12.9 of the Equity Definitions (except in the event of an Insolvency, a Nationalization, a Tender Offer or a Merger Event, in each case, in which the consideration or proceeds to be paid to holders of Shares consists solely of cash) or pursuant to
Section 6(d)(ii) of the Agreement (except in the event of an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party, that resulted from an event or events within
Counterparty’s control) (a “Payment Obligation”), Counterparty shall have the right, in its sole discretion, to require Deutsche to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by
giving irrevocable telephonic notice to Deutsche, confirmed in writing within one Scheduled Trading Day, between the hours of 9:00 A.M. and 12:00 P.M., New York City time, on the relevant Merger Date, Tender Offer Date, Announcement Date, Early
Termination Date or other date the transaction is terminated, as applicable (“Notice of Share Termination”). Upon such Notice of Share Termination, the following provisions shall apply on the Scheduled Trading Day immediately
following the Merger Date, Tender Offer Date, Announcement Date, Early Termination Date or other date the transaction is terminated, as applicable: 
  

			
	Share Termination Alternative:	  	Applicable and means that Deutsche shall deliver to Counterparty the Share Termination Delivery Property on the date on which the Payment Obligation would otherwise be due pursuant to Section
12.7 or 12.9 of the Equity Definitions or Section 6(d)(ii) of the Agreement, as applicable (the “Share Termination Payment Date”), in satisfaction of the Payment Obligation.
		
	Share Termination Delivery
Property:	  	A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the Payment Obligation divided by the Share Termination Unit Price. The Calculation Agent shall
adjust the Share Termination Delivery Property by replacing any fractional portion of a security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share Termination Unit Price.

		
	Share Termination Unit Price:	  	The value of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered as Share Termination Delivery Property, as
determined by the Calculation Agent in its discretion by commercially reasonable means and notified by the Calculation Agent to Deutsche at the time of notification of the Payment Obligation.
		
	Share Termination Delivery Unit:	  	In the case of a Termination Event, Event of Default, Delisting or Additional Disruption Event, one Share or, in the case of a Merger Event, a Tender Offer, an Insolvency or a
Nationalization, a unit consisting of the number or amount of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in
such Merger Event, Tender Offer, Insolvency or Nationalization. If such Merger Event, Tender Offer, Insolvency or Nationalization involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive
the maximum possible amount of cash.
		
	Failure to Deliver:	  	Applicable
		
	Other applicable provisions:	  	If Share Termination Alternative is applicable, the provisions of Sections 9.8, 9.9, 9.11 and 9.12 of the Equity Definitions will be applicable as if “Physical Settlement”
were

  

 11 

			
		  	applicable, except that all references to “Shares” shall be read as references to “Share Termination Delivery Units”; provided that the Representation and Agreement
contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws as a result of the fact that Buyer is
the issuer of any Share Termination Delivery Units (or any part thereof).

 (b) Alternative Calculations and Payment by Counterparty on Early Termination and on Certain
Extraordinary Events. If Counterparty owes Deutsche any amount in connection with the Transaction pursuant to Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except in the case of an Extraordinary Event in which the
consideration or proceeds to be paid to holders of Shares as a result of such event consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the event of an Event of Default in which Counterparty is the Defaulting
Party or a Termination Event in which Counterparty is the Affected Party, that resulted from an event or events within Counterparty’s control) or any provision under this Confirmation (a “Counterparty Payment Obligation”),
Counterparty shall have the right, in its sole discretion, to satisfy any such Counterparty Payment Obligation by delivery of Share Termination Delivery Units by giving irrevocable telephonic notice to Deutsche, confirmed in writing within one
Scheduled Trading Day, between the hours of 9:00 A.M. and 4:00 P.M. New York City time on the Early Termination Date or other date the transaction is terminated, as applicable (“Notice of Counterparty Termination Delivery”). Within
a commercially reasonable period of time following receipt of a Notice of Counterparty Termination Delivery, Counterparty shall deliver to Deutsche a number of Share Termination Delivery Units having a cash value equal to the amount of such
Counterparty Payment Obligation (such number of Share Termination Delivery Units to be delivered to be determined by the Calculation Agent as the number of whole Share Termination Delivery Units that could be sold over a commercially reasonable
period of time to generate proceeds equal to the cash equivalent of such payment obligation). In addition, if, in the good faith reasonable judgment of Deutsche, for any reason, the Share Termination Delivery Units deliverable pursuant to this
paragraph would not be immediately freely transferable by Deutsche under Rule 144 under the Securities Act or any successor provision, then Deutsche may elect either to (x) accept delivery of such Share Termination Delivery Units
notwithstanding any restriction on transfer or (y) require that such delivery take place pursuant to the provisions of Section 8(q) below. If the provisions set forth in this paragraph are applicable, the provisions of Sections 9.8,
9.9, 9.11 (modified as described above) and 9.12 of the Equity Definitions shall be applicable, except that all references to “Shares” shall be read as references to “Share Termination Delivery Units.” 
 (c) Special Provisions regarding Transaction Announcements. If a Transaction Announcement occurs on or prior to the Settlement Date, then the
Share Number shall be determined as if the phrase “shall not be less than the Minimum Shares and” was deleted from the definition thereof (and, for the avoidance of doubt, in such event the Number of Shares to be Delivered may be reduced
below zero pursuant to the definition thereof). 
 “Transaction Announcement” means (i) the announcement of an
Acquisition Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an agreement, a letter of intent or an understanding to enter into an Acquisition Transaction, (iii) the announcement of an
intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, an Acquisition Transaction or (iv) any other announcement that in the reasonable judgment of the Calculation Agent may
result in an Acquisition Transaction. For the avoidance of doubt, announcements as used in this definition of Transaction Announcement refer to (a) any public announcement made by Counterparty or (b) any public announcement made by a third
party that has been approved, agreed to, recommended by or otherwise consented to by Counterparty or its board of directors. 
 “Acquisition Transaction” means any event that is, or if consummated would be, (i) a Merger Event (and for purposes of this definition the definition of Merger Event shall be read with the references therein to
“100%” being replaced by “15%” and to “50%” by “75%” and as if the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition were deleted) or Tender Offer,
or any other transaction involving the merger of Counterparty with or into any third party, (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization, reclassification, binding share
exchange or other similar transaction, (iv) an acquisition, lease, exchange, transfer, disposition (including by way of spin-off or distribution) of assets (including any capital stock or other ownership 

  

 12 

 
interests in subsidiaries) or other similar event by Counterparty or any of its subsidiaries where the aggregate consideration transferable or receivable by
or to Counterparty or its subsidiaries exceeds 15% of the market capitalization of Counterparty and (v) a transaction in which Counterparty or its board of directors has a legal obligation to make a recommendation to its shareholders in respect
of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise). 
 (d) Additional Averaging Period
Disruption. If, on any Scheduled Trading Day during the period beginning on, and including, the date hereof and ending on, and including, the Valuation Date, Deutsche determines that (i) it is appropriate, with regard to any legal,
regulatory or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Deutsche), for Deutsche to refrain from purchasing or
otherwise effecting transactions in Shares on such Scheduled Trading Day or (ii) a Hedging Disruption has occurred, Deutsche may, in its discretion and without limiting its rights under Section 12.9(b)(iii) of the Equity Definitions, elect
to treat such Scheduled Trading Day as a Disrupted Day in whole or in part as appropriate with regard to such relevant legal, regulatory or self-regulatory requirements or related policies and procedures or Hedging Disruption, as the case may be,
and Deutsche shall notify Counterparty of the exercise of Deutsche’s rights pursuant to this clause (d) upon such exercise and shall subsequently notify Counterparty on the day Deutsche believes that it may resume purchasing or otherwise
effecting transactions in Shares. Deutsche shall not be obligated to communicate to Counterparty the reason for Deutsche’s exercise of its rights pursuant to this clause (d). 
 (e) Limitation On Delivery of Shares. Notwithstanding anything herein or in the Agreement to the contrary, in no event shall Counterparty be
required to deliver Shares in connection with the Transaction in excess of a number of Shares (the “Maximum Delivery Amount”) equal to 1,000 (or more than the adjusted number thereof with regard to other securities constituting the
Share Termination Delivery Units), subject to a Calculation Agent Adjustment for any Potential Adjustment Event or Extraordinary Event, provided that Deutsche shall be entitled to allocate any remaining number of Shares in the “maximum
delivery amount” under the confirmation entered into between Counterparty and Deutsche on the Trade Date hereof relating to a warrant transaction (the “Warrant Confirmation”) to increase the Maximum Delivery Amount hereunder to
a number not to exceed twice the Number of Shares hereunder (with a corresponding reduction of the “maximum delivery amount” under the Warrant Confirmation) and vice versa. Counterparty represents and warrants (which shall be deemed to be
repeated on each day that the Transaction is outstanding) that the Maximum Delivery Amount is equal to or less than the number of authorized but unissued Shares of Counterparty that are not reserved for future issuance in connection with
transactions in the Shares (other than the Transaction) on the date of the determination of the Maximum Delivery Amount (such Shares, the “Available Shares”). In the event Counterparty shall not have delivered the full number of
Shares otherwise deliverable as a result of this paragraph (the resulting deficit, the “Deficit Shares”), Counterparty shall be continually obligated to deliver, from time to time until the full number of Deficit Shares have been
delivered pursuant to this paragraph, Shares when, and to the extent, that (i) Shares are repurchased, acquired or otherwise received by Counterparty or any of its subsidiaries after the Trade Date (whether or not in exchange for cash, fair
value or any other consideration), (ii) authorized and unissued Shares reserved for issuance in respect of other transactions prior to such date which prior to the relevant date become no longer so reserved and (iii) Counterparty
additionally authorizes any unissued Shares that are not reserved for other transactions. Counterparty shall immediately notify Deutsche of the occurrence of any of the foregoing events (including the number of Shares subject to clause (i),
(ii) or (iii) and the corresponding number of Shares to be delivered) and promptly deliver such Shares thereafter. 
 (f) Share
Deliveries. Notwithstanding anything to the contrary herein, Deutsche may, by prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on any date due (an “Scheduled Delivery Date”) by
making separate deliveries of Shares or such securities, as the case may be, at more than one times on or prior to such Scheduled Delivery Date, so long as the aggregate number of Shares and other securities so delivered on or prior to such
Scheduled Delivery Date is equal to the number thereof required to be delivered on such Scheduled Delivery Date. 
 (g) Status of Claims
in Bankruptcy; No Collateral. Deutsche acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the Transaction that are senior to the claims of common stockholders in the event of Counterparty’s
bankruptcy. For the avoidance of doubt, the parties agree that the preceding sentence shall not apply at any time other than during Counterparty’s bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations
under this Confirmation. For the avoidance of doubt, the parties acknowledge that this Confirmation is not secured by any collateral that would otherwise secure the obligations of Counterparty herein under or pursuant to any other agreement.

  

 13 

 (h) Transfer and Assignment. Counterparty shall not transfer or assign its rights or obligations
hereunder and under the Agreement without the prior written consent of Deutsche. Deutsche may transfer or assign without Counterparty’s consent its rights and obligations hereunder and under the Agreement, in whole or in part, to any of its
affiliates without the consent of Counterparty, provided that Counterparty shall have recourse to Deutsche in the event of the failure by the affiliate transferee to perform any of such obligations hereunder. If, as determined in
Deutsche’s sole discretion, (x) its “beneficial ownership” (within the meaning of Section 16 of the Exchange Act and rules promulgated thereunder) exceeds 8.5% of Counterparty’s outstanding Shares and (y) Deutsche
is unable, after commercially reasonable efforts, to effect a transfer or assignment on pricing terms and within a time period reasonably acceptable to it of all or a portion of the Transaction pursuant to the preceding paragraph to reduce such
“beneficial ownership” below 8.5%, Deutsche may, without Counterparty’s prior consent, transfer any of the rights or obligations of Deutsche to a third party with a rating (or whose guarantor has a rating) for its long term, unsecured
and unsubordinated indebtedness of A+ or better by Standard & Poor’s Ratings Services or its successor (“S&P”), or A1 or better by Moody’s Investors Service, Inc. or its successor
(“Moody’s”). If such transfer has not been effected, Deutsche may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of this Transaction, such
that its “beneficial ownership” following such partial termination will be approximately equal to but less than 8.5%. In the event that Deutsche so designates an Early Termination Date with respect to a portion of this Transaction, a
payment shall be made pursuant to Section 6 of the Agreement as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to this Transaction and a Number of Shares equal to the Terminated
Portion, (ii) Counterparty shall be the sole Affected Party with respect to such partial termination and (iii) such Transaction shall be the only Terminated Transaction. 
 (i) Qualified Financial Contract. It is the intention of the parties that, in respect of Counterparty, (a) the Transaction shall constitute a
“qualified financial contract” within the meaning of 12 U.S.C. Section 1821(e)(8)(D)(i) and (b) a Non-defaulting Party’s rights under Sections 5 and 6 of the Agreement constitute rights of the kind referred to in 12 U.S.C.
Section 1821(e)(8)(A). 
 (j) Designation by Deutsche. Notwithstanding any other provision in this Confirmation to the contrary
requiring or allowing Deutsche to purchase, sell, receive or deliver any Shares or other securities to or from Counterparty, Deutsche may designate any of its affiliates to purchase, sell, receive or deliver such Shares or other securities and
otherwise to perform Deutsche’s obligations in respect of the Transaction and any such designee may assume such obligations. Deutsche shall be discharged of its obligations to Counterparty to the extent of any such performance. 
 (k) Netting and Set-off. The parties hereto agree that the Transaction shall not be subject to netting or set off with any other transaction.

 (l) Method of Delivery. Whenever delivery of funds or other assets is required hereunder by or to Counterparty, such delivery shall
be effected through Agent. In addition, all notices, demands and communications of any kind relating to the Transaction between Deutsche and Counterparty shall be transmitted exclusively through Agent. 
 (m) Recording. Each party (x) consents to the recording of the telephone conversations of trading and marketing and/or other personnel of the
parties and their Affiliates in connection with this Confirmation, the Agreement or any potential Transaction; (y) agrees to obtain any necessary consent of and give notice of such recording to such personnel of such party and such party’s
Affiliates; and (z) agrees that recordings may be submitted in evidence in any proceedings relating to this Confirmation or the Agreement. 
 (n) Rule 10b5-1. The parties intend that the Transaction constitute a binding contract for the purchase of Shares by Counterparty within the meaning of Rule 10b5-1(c)(1)(i)(A)(1) under the Exchange Act. This Confirmation shall be
interpreted to comply with the requirements of Rule 10b5-1(c)(1)(i)(B) and Counterparty shall take no action that results in the Transaction not so complying with such requirements. Accordingly: 
  

 14 

 (i) Counterparty acknowledges and agrees that (x) any purchases or sales made by
Deutsche in respect of the Transaction shall be made at Deutsche’s sole discretion and for Deutsche’s own account and (y) Counterparty does not have, and shall not attempt to exercise, any influence over how, when or whether to make
such purchases or sales, including, without limitation, the price paid or received per Share pursuant to such purchases or sales or whether such purchases or sales are made on any securities exchange or privately. 
 (ii) Counterparty acknowledges and agrees that it is entering into the Agreement and this Confirmation in good faith and not as part of a
plan or scheme to evade compliance with federal securities laws including, without limitation, Rule 10b-5 promulgated under the Exchange Act (“Rule 10b-5”) or any other antifraud or anti-manipulation provisions of the federal or
applicable state securities laws and that it has not entered into or altered and will not enter into or alter any corresponding or hedging transaction or position with respect to the Shares. Counterparty also acknowledges and agrees that any
amendment, modification, waiver or termination of this Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c) under the Exchange Act. Without limiting the
generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no amendment, modification or waiver shall be made at
any time at which Counterparty or any officer or director of Counterparty is aware of any material nonpublic information regarding Counterparty or the Shares. 
 (iii) Counterparty hereby agrees and acknowledges that it shall not, at any time during the period from, and including, the date hereof
to, and including, the Valuation Date, enter into or alter any corresponding or hedging transaction or position with respect to the Shares (including, without limitation, with respect to any securities convertible or exchangeable into the Shares)
and agrees not to alter or deviate from the terms of this Confirmation. 
 (o) Securities Contract; Swap Agreement. The parties hereto
agree and acknowledge that Deutsche is a “financial institution,” “swap participant” and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code. The parties hereto
further agree and acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in
connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment” or a “transfer”
within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in
connection herewith is a “termination value,” a “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer” within the meaning of
Section 546 of the Bankruptcy Code, and (B) that Deutsche is entitled to the protections afforded by, among other sections, Section 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the
Bankruptcy Code. 
 (p) Early Unwind. In the event the sale of Convertible Notes is not consummated with the initial purchasers
thereof for any reason by the close of business in New York on April 15, 2008 (or such later date as agreed upon by the parties) (April 15, 2008 or such later date as agreed upon being the “Early Unwind Date”), the Transaction
shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (a) the Transaction and all of the respective rights and obligations of Deutsche and Counterparty under the Transaction shall be cancelled and
terminated and (b) each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of the other party arising out of and to be performed
in connection with the Transaction either prior to or after the Early Unwind Date; provided that if the Early Unwind is due to a breach by Counterparty under the Purchase Agreement, dated as of April 9, 2008, between Counterparty and
Deutsche Bank Securities Inc. as representative of the initial purchasers party to such agreement, Counterparty shall purchase from Deutsche on the Early Unwind Date all Shares purchased by Deutsche or one or more of its affiliates, and assume, or
reimburse the cost of, derivatives and other hedging activities entered into by Deutsche or one or more of its affiliates, in each case in connection with hedging of the Transaction, and the unwind of such hedging activities. The amount payable by
Counterparty shall be Deutsche’s (or its affiliates) actual cost of such Shares and unwind cost of such derivatives and other hedging activities as Deutsche informs Counterparty and shall be paid in immediately available funds on the Early
Unwind Date. Deutsche and Counterparty represent and acknowledge to the other that, subject to the proviso included in the preceding sentence, upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and finally
discharged. 
  

 15 

 (q) Registration/Private Placement Procedures. If, in the reasonable opinion of Deutsche,
following any delivery of Shares or Share Termination Delivery Units to Deutsche hereunder, such Shares or Share Termination Delivery Units would be in the hands of Deutsche subject to any applicable restrictions with respect to any registration or
qualification requirement or prospectus delivery requirement for such Shares or Share Termination Delivery Units pursuant to any applicable federal or state securities law (including, without limitation, any such requirement arising under
Section 5 of the Securities Act as a result of such Shares or Share Termination Delivery Units being “restricted securities”, as such term is defined in Rule 144 under the Securities Act) (such Shares or Share Termination Delivery
Units, “Restricted Shares”), then delivery of such Restricted Shares shall be effected pursuant to either clause (i) or (ii) of Annex A hereto at the election of Counterparty, unless waived by Deutsche. If any Private
Placement Settlement (as defined in Annex A hereto) or Registration Settlement (as defined in Annex A hereto) shall not be effected as set forth in clauses (i) or (ii) of Annex A, as applicable, then failure to effect such Private
Placement Settlement or such Registration Settlement shall constitute an Event of Default with respect to which Counterparty shall be the Defaulting Party. 
 (r) Severability; Illegality. If compliance by either party with any provision of the Transaction would be unenforceable or illegal, (a) the parties shall negotiate in good faith to resolve such
unenforceability or illegality in a manner that preserves the economic benefits of the transactions contemplated hereby and (b) the other provisions of the Transaction shall not be invalidated, but shall remain in full force and effect.

 (s) Waiver of Jury Trial. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING TO THE TRANSACTION. EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTION, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS PROVIDED HEREIN. 
 (t) Governing Law; Jurisdiction. THE AGREEMENT AND THIS
CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN
CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS. 
  

 16 

 THIS MESSAGE WILL BE THE ONLY FORM OF CONFIRMATION DISPATCHED BY US. PLEASE EXECUTE AND RETURN IT BY
FACSIMILE IMMEDIATELY TO FAX NUMBER +44 207 541 4913. IF YOU WISH TO EXCHANGE HARD COPY FORMS OF THIS CONFIRMATION PLEASE CONTACT US. 
 Please confirm that the foregoing correctly sets forth the terms of our agreement by sending to us a letter or telex substantially similar to this facsimile, which letter or telex sets forth the material terms of the Transaction to which
this Confirmation relates and indicates your agreement to those terms. Deutsche will make the time of execution of the Transaction available upon request. 
 Deutsche is regulated by the Financial Services Authority. 
  

									
	DEUTSCHE BANK AG, LONDON BRANCH	 		 	REVIEWED BY:
					
	By:	 	 /s/ Paul Maley
	 		 	By:	 	  

	Name:	 	Paul Maley	 		 		 	
	Title:	 	Attorney-in-Fact	 		 		 	
					
	By:	 	 /s/ Lee Frankenfield
	 		 	By:	 	  

	Name:	 	Lee Frankenfield	 		 		 	
	Title:	 	Attorney-in-Fact	 		 		 	
				
	 DEUTSCHE BANK SECURITIES INC.,
 acting
solely as Agent in connection with the Transaction
	 		 		 	
					
	By:	 	 /s/ Paul Maley
	 		 		 	
	Name:	 	Paul Maley	 		 		 	
	Title:	 	Director	 		 		 	
					
	By:	 	 /s/ Lee Frankenfield
	 		 		 	
	Name:	 	Lee Frankenfield	 		 		 	
	Title:	 	Managing Director	 		 		 	
			
	 Confirmed and Acknowledged as of the date first above written:
	 		 	
				
	 ENDO PHARMACEUTICALS HOLDINGS INC.
	 		 		 	
					
	 By:
	 	 /s/ Charles A. Rowland, Jr.
	 		 		 	
	 Name:
	 	Charles A. Rowland, Jr.	 		 		 	
	 Title:
	 	Executive Vice President, Chief Financial Officer and Treasurer	 		 		 	

 Annex A 
 Registration Settlement and Private Placement Settlement 
 If Counterparty (1)(a) elects to deliver Share
Termination Delivery Units pursuant to Section 8(b) of the Confirmation or (b) is obligated to deliver Shares pursuant to the “Settlement Terms” in Section 2 of the Confirmation (the Freely Tradeable Value (as defined below)
of such Shares is referred to in this Annex A as the “Net Share Settlement Amount”) and (2) this Annex A is applicable, Counterparty shall effect such delivery in compliance with the provisions provided herein. 
  

	(i)	If Counterparty elects that this clause (i) shall be applicable (a “Private Placement Settlement”), then delivery of Restricted Shares by Counterparty shall be
effected in customary private placement procedures with respect to such Restricted Shares reasonably acceptable to Deutsche; provided that Counterparty may not elect a Private Placement Settlement if, on the date of its election, it has
taken, or caused to be taken, any action that would make unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the sale by Counterparty to Deutsche (or any affiliate designated by Deutsche) of the Restricted Shares
or the exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the Restricted Shares by Deutsche (or any such affiliate of Deutsche). The Private Placement Settlement of such Restricted Shares shall include
customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Deutsche, due diligence rights (for Deutsche or any buyer of the Restricted Shares designated by Deutsche), opinions and certificates,
and such other documentation as is customary for private placement agreements, all reasonably acceptable to Deutsche; provided, however, if Deutsche is not reasonably satisfied with such due diligence rights or no such rights are
afforded to Deutsche or such buyer designated by Deutsche due to circumstances outside Counterparty’s control that make such investigation impractical, then such dissatisfaction or the failure by Counterparty to afford Deutsche (or any buyer of
the Restricted Shares designated by Deutsche) with such investigation rights shall not provide a basis for Deutsche to refuse to accept the Restricted Shares by means of a private placement and Deutsche shall be entitled to disclose to any buyer of
the Restricted Shares the circumstances giving rise to such dissatisfaction or failure. In the event of a Private Placement Settlement, the Net Share Settlement Amount or the Counterparty Payment Obligation, respectively, shall be deemed to be the
Net Share Settlement Amount or the Counterparty Payment Obligation, respectively, plus an additional amount (determined from time to time by the Calculation Agent in its commercially reasonable judgment) attributable to interest that would be
earned on such Net Share Settlement Amount or the Counterparty Payment Obligation, respectively, (increased on a daily basis to reflect the accrual of such interest and reduced from time to time by the amount of net proceeds received by Deutsche as
provided herein) at a rate equal to the open Federal Funds Rate plus 50 basis points per annum for the period from, and including, such Settlement Date or the date on which the Counterparty Payment Obligation is due, respectively, to, but excluding,
the related date on which all the Restricted Shares have been sold and calculated on an Actual/360 basis. 

  

	(ii)	If Counterparty elects that this clause (ii) shall be applicable (a “Registration Settlement”), then Counterparty shall promptly (but in any event no later
than the beginning of the Resale Period) file and use its reasonable best efforts to make effective under the Securities Act a registration statement or supplement or amend an outstanding registration statement in form and substance reasonably
satisfactory to Deutsche, to cover the resale of such Restricted Shares (and any Make-whole Shares) in accordance with customary resale registration procedures, including covenants, conditions, representations, underwriting discounts (if
applicable), commissions (if applicable), indemnities, due diligence rights, opinions and certificates, and such other documentation as is customary for equity resale underwriting agreements, all reasonably acceptable to Deutsche. If Deutsche, in
its sole reasonable discretion, is not satisfied with such procedures and documentation, Private Placement Settlement shall apply. If Deutsche is satisfied with such procedures and documentation, it shall sell the Restricted Shares (and any
Make-whole Shares) pursuant to such registration statement during a period (the “Resale Period”) commencing on the Exchange Business Day following delivery of such Restricted Shares (and any Make-whole Shares) and ending on the
earliest of (i) the Exchange Business Day on which Deutsche completes the sale of all Restricted Shares or, in the case of settlement of Share Termination Delivery Units, a sufficient number of Restricted Shares so that the realized net
proceeds of such sales exceed the Counterparty Payment Obligation, (ii) the date upon which all Restricted Shares (and any Make-whole Shares) have been sold or transferred pursuant to Rule 144 (or similar provisions then in force) under the
Securities Act and (iii) the date upon which all Restricted Shares (and any Make-whole Shares) may be sold or transferred by a non-affiliate pursuant to Rule 144 (or any similar provision then in force) under the Securities Act without any
further restriction whatsoever. 

  

 A-1 

	(iii)	If (ii) above is applicable and the Net Share Settlement Amount or the Counterparty Payment Obligation, as applicable, exceeds the realized net proceeds from such resale, or if
(i) above is applicable and the Freely Tradeable Value (as defined below) of the Shares owed pursuant to the Net Share Settlement Amount, or the Counterparty Payment Obligation (in each case as adjusted pursuant to (i) above), as
applicable, exceeds the realized net proceeds from such resale, Counterparty shall transfer to Deutsche by the open of the regular trading session on the Exchange on the Exchange Business Day immediately following the last day of the Resale Period
the amount of such excess (the “Additional Amount”), at its option, either in cash or in a number of Restricted Shares (“Make-whole Shares”, provided that the aggregate number of Restricted Shares and
Make-whole Shares delivered shall not exceed the Maximum Delivery Amount) that, based on the Relevant Price on the last day of the Resale Period (as if such day was the “Valuation Date” for purposes of computing such Relevant
Price), has a value equal to the Additional Amount. If Counterparty elects to pay the Additional Amount in Make-whole Shares, Counterparty shall elect whether the requirements and provisions for either Private Placement Settlement or Registration
Settlement shall apply to such payment. This provision shall be applied successively until the Additional Amount is equal to zero, subject to “Limitation on Delivery of Shares”. “Freely Tradeable Value” means the
value of the number of Shares delivered to Deutsche which such Shares would have if they were freely tradeable (without prospectus delivery) upon receipt by Deutsche, as determined by the Calculation Agent by reference to the Relevant Price for
freely tradeable Shares as of the Valuation Date, or other date of valuation used to determine the delivery obligation with respect to such Shares, or by other commercially reasonable means. 

  

	(iv)	For the avoidance of doubt, nothing contained in this Annex A shall be read as requiring Counterparty, unless it so elects as provided above, to deliver cash in respect of the
settlement of the transactions contemplated by the Agreement. 

  

 A-2License and Supply Agreement

 Exhibit 10.31 
 The confidential portions of this exhibit have been filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities and Exchange Act of 1934, as
amended. REDACTED PORTIONS OF THIS EXHIBIT ARE MARKED BY AN ***. 
 EXECUTION VERSION 
 LICENSE AND SUPPLY AGREEMENT 
 by and among

 NOVARTIS, AG, 
 NOVARTIS
CONSUMER HEALTH, INC. 
 and 
 ENDO PHARMACEUTICALS INC. 
 Dated as of March 4, 2008 

					
	 SECTION 1
	  	 DEFINITIONS
	  	1
			
	 SECTION 2
	  	 GRANT
	  	13
			
	 2.1
	  	 License.
	  	13
			
	 2.2
	  	 Compliance With Law.
	  	13
			
	 2.3
	  	 Reservation of Rights; NOVARTIS Know-How.
	  	14
			
	 SECTION 3
	  	 GOVERNANCE
	  	14
			
	 3.1
	  	 Committees/Management.
	  	14
			
	 3.2
	  	 The Joint Commercialization Committee.
	  	14
			
	 3.3
	  	 Responsibilities of the JCC.
	  	15
			
	 3.4
	  	 Alliance Manager.
	  	16
			
	 3.5
	  	 Resolution of Disputes.
	  	16
			
	 SECTION 4
	  	 COMMERCIALIZATION
	  	17
			
	 4.1
	  	 Commercialization.
	  	17
			
	 4.2
	  	 Commercialization Plans.
	  	17
			
	 4.3
	  	 Field Force.
	  	18
			
	 4.4
	  	 Detailing.
	  	20
			
	 4.5
	  	 Training.
	  	21
			
	 4.6
	  	 Promotional Materials.
	  	22
			
	 4.7
	  	 Licensed Product Claims.
	  	22
			
	 4.8
	  	 Sample Accountability Policies and Procedures.
	  	23
			
	 4.9
	  	 A&P Expenses.
	  	23
			
	 4.10
	  	 Limitations to Minimum Detail and A&P Expense Requirements.
	  	24
			
	 4.11
	  	 Direct to Consumer Advertising.
	  	25
			
	 4.12
	  	 Medical Science Liaisons.
	  	25
			
	 4.13
	  	 Managed Markets Field Activities; Costs.
	  	25
			
	 4.14
	  	 Call Centers.
	  	25
			
	 4.15
	  	 Commercialization Report.
	  	26
			
	 4.16
	  	 Pricing; Booking of Sales; Distribution; Diversion.
	  	26
			
	 SECTION 5
	  	 MANUFACTURE AND SUPPLY
	  	27
			
	 5.1
	  	 Engagement.
	  	27
			
	 5.2
	  	 Warranty.
	  	27
			
	 5.3
	  	 Forecasts; Maximum and Minimum Purchases.
	  	27
			
	 5.4
	  	 Orders.
	  	28

  

 i 

					
			
	 5.5
	  	 Delivery.
	  	29
			
	 5.6
	  	 Raw Materials.
	  	30
			
	 5.7
	  	 Standard of Performance.
	  	30
			
	 5.8
	  	 Quality Assurance.
	  	31
			
	 5.9
	  	 Pricing and Payments.
	  	32
			
	 5.10
	  	 Regulatory Matters; Records.
	  	33
			
	 5.11
	  	 Alternate Supply.
	  	34
			
	 5.12
	  	 Allocation of Licensed Product.
	  	34
			
	 5.13
	  	 Safety Stock.
	  	34
			
	 SECTION 6
	  	 REGULATORY AFFAIRS
	  	34
			
	 6.1
	  	 Regulatory Affairs.
	  	34
			
	 6.2
	  	 Complaints Regarding Licensed Product.
	  	35
			
	 6.3
	  	 Adverse Event Reporting; Cooperation.
	  	35
			
	 6.4
	  	 Ownership.
	  	35
			
	 6.5
	  	 Regulatory Notification; Notification to ENDO of FDA Meetings.
	  	36
			
	 6.6
	  	 Support Costs.
	  	36
			
	 SECTION 7
	  	 COMPENSATION
	  	36
			
	 7.1
	  	 Up-Front Payment.
	  	36
			
	 7.2
	  	 Royalties.
	  	36
			
	 7.3
	  	 Sales Milestone.
	  	40
			
	 SECTION 8
	  	 DEVELOPMENT OF THE LICENSED PRODUCT AND NEW INDICATIONS
	  	40
			
	 8.1
	  	 Development.
	  	40
			
	 8.2
	  	 Development Plans; Clinical Studies.
	  	41
			
	 8.3
	  	 Development Costs.
	  	41
			
	 SECTION 9
	  	 OTC SWITCH RIGHTS
	  	42
			
	 9.1
	  	 OTC Switch of Licensed Product.
	  	42
			
	 9.2
	  	 Royalty.
	  	42
			
	 9.3
	  	 Right of First Negotiation on Certain ENDO Products.
	  	43
			
	 SECTION 10
	  	 LINE EXTENSIONS; NON-COMPETE
	  	43
			
	 10.1
	  	 Line Extensions.
	  	43
			
	 10.2
	  	 Non-Compete.
	  	44
			
	 SECTION 11
	  	 INTELLECTUAL PROPERTY
	  	45

  

 ii 

					
			
	 11.1
	  	 Corporate Names and Trademarks.
	  	45
			
	 11.2
	  	 Ownership and Rights with Respect to Newly Created Technology.
	  	45
			
	 11.3
	  	 Third Party Infringement.
	  	45
			
	 SECTION 12
	  	 BOOKS AND RECORDS; AUDITS; TAXES; PAYMENT CURRENCY; AND OTHER TERMS
	  	46
			
	 12.1
	  	 Books and Records.
	  	46
			
	 12.2
	  	 Audits.
	  	46
			
	 12.3
	  	 Accounting Standards.
	  	47
			
	 12.4
	  	 Taxes.
	  	48
			
	 12.5
	  	 Payment Currency.
	  	48
			
	 12.6
	  	 Payments.
	  	48
			
	 SECTION 13
	  	 REPRESENTATIONS AND WARRANTIES
	  	48
			
	 13.1
	  	 Mutual Representations and Warranties.
	  	48
			
	 13.2
	  	 Representations and Warranties of ENDO.
	  	48
			
	 13.3
	  	 Representations and Warranties of NOVARTIS.
	  	49
			
	 13.4
	  	 DISCLAIMER OF WARRANTIES.
	  	50
			
	 SECTION 14
	  	 CONFIDENTIALITY
	  	51
			
	 14.1
	  	 Confidential Information.
	  	51
			
	 14.2
	  	 Injunctive Relief.
	  	51
			
	 14.3
	  	 Publicity.
	  	51
			
	 SECTION 15
	  	 INDEMNITY; PRODUCT LIABILITY
	  	52
			
	 15.1
	  	 Indemnity.
	  	52
			
	 15.2
	  	 Product Liability.
	  	53
			
	 SECTION 16
	  	 FORCE MAJEURE
	  	53
			
	 16.1
	  	 Force Majeure.
	  	53
			
	 SECTION 17
	  	 TERM AND TERMINATION
	  	54
			
	 17.1
	  	 Term.
	  	54
			
	 17.2
	  	 Automatic Termination.
	  	54
			
	 17.3
	  	 Termination.
	  	54
			
	 17.4
	  	 Survival of Obligations.
	  	56
			
	 17.5
	  	 Effect of Expiration or Termination.
	  	56
			
	 17.6
	  	 Remedies.
	  	57
			
	 SECTION 18
	  	 INSURANCE
	  	57

  

 iii 

					
			
	 SECTION 19
	  	 NON-SOLICITATION OF EMPLOYEES
	  	58
			
	 19.1
	  	 Non-Solicitation of Employees.
	  	58
			
	 SECTION 20
	  	 MISCELLANEOUS
	  	58
			
	 20.1
	  	 Governing Law.
	  	58
			
	 20.2
	  	 Jurisdiction.
	  	58
			
	 20.3
	  	 Waiver.
	  	59
			
	 20.4
	  	 Notices.
	  	59
			
	 20.5
	  	 Entire Agreement; Confidentiality Agreement.
	  	60
			
	 20.6
	  	 Amendments.
	  	60
			
	 20.7
	  	 Headings.
	  	60
			
	 20.8
	  	 Severability.
	  	60
			
	 20.9
	  	 Assignment.
	  	60
			
	 20.10
	  	 Successors and Assigns.
	  	61
			
	 20.11
	  	 Counterparts.
	  	61
			
	 20.12
	  	 Third-Party Beneficiaries.
	  	61
			
	 20.13
	  	 Relationship of the Parties; Tax Treatment.
	  	61
			
	 20.14
	  	 Specific Performance.
	  	61
			
	 20.15
	  	 Further Assurances and Actions.
	  	61
			
	 20.16
	  	 LIMITATION OF DAMAGES.
	  	62

  

 iv 

 SCHEDULES 
 Schedule 1.95 PhRMA Code 
 Schedule 4.2 Commercialization Plan 
 Schedule 4.3 (b)(ii) ENDO Topical NSAID Product 
 Schedule 4.4(d) Description Of Target Prescribers 
 Schedule 4.12 *** 
 Schedule 4.15 Example Of Monthly Commercialization Report

 Schedule 5.2 Specifications 
 Schedule 5.4(a) Maximum Supply
Capacity 
 Schedule 5.4(e) *** 
 Schedule 5.5(a) *** 

Schedule 7.2(d) Third Party Expert Dispute Resolution Procedures 
 Schedule
13.3(e) ENDO Due Diligence Request List 
 Schedule 13.3(f) NOVARTIS *** Products Currently In Development 
  

 v 

 LICENSE AND SUPPLY AGREEMENT 
 THIS LICENSE AND SUPPLY AGREEMENT (this “Agreement”), dated as of March 4, 2008 (the “Execution Date”), by and among NOVARTIS,
AG, a Swiss corporation having a principal place of business in Basel, Switzerland (“NOVARTIS AG”), NOVARTIS CONSUMER HEALTH, INC., a Delaware corporation having a principal place of business at 200 Kimball Drive, Parsippany, New Jersey
07054 (“NOVARTIS,” and collectively with NOVARTIS AG, the “NOVARTIS Parties”) and ENDO PHARMACEUTICALS INC., a Delaware corporation having a principal place of business at 100 Endo Drive, Chadds Ford, Pennsylvania 19317
(“ENDO”). Each of NOVARTIS and ENDO is referred to herein individually as a “Party” and collectively as the “Parties.” 
 WHEREAS, the NOVARTIS Parties have certain rights in the Territory in and to the Licensed Product; 
 WHEREAS, NOVARTIS desires to grant a license to another Person to Commercialize the Licensed Product for use in the Territory and in the Field on the terms and conditions set forth herein; and 
 WHEREAS, ENDO desires to obtain such a license on the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the following mutual promises and obligations, and for other good and valuable consideration the adequacy and
sufficiency of which are hereby acknowledged, the Parties agree as follows: 
 SECTION 1  
 DEFINITIONS 
 Capitalized terms
used in this Agreement, whether used in the singular or plural, except as otherwise expressly set forth herein, shall have the meanings set forth below: 
  

	1.1	“A&P Expenses” shall mean, to the extent incurred, recorded and executed in connection with the Accounting Standards, Out-of-Pocket Costs for the following
items, to the extent incurred in connection with advertising and promotion of the Licensed Product in accordance with this Agreement: 

  

	 	(a)	professional advertising (including agency fees); 

  

	 	(b)	consumer advertising (including agency fees); 

  

	 	(c)	Detail aids, leave-behinds and similar materials; 

  

	 	(d)	materials and programs for training of the Sales Force, including Launch meetings and annual sales meetings, Promotional Materials, telemarketing, symposia, conventions, Managed
Markets initiatives, market research (not to exceed *** percent (***%) of total A&P Expenses in respect to any Agreement Year), speaker and activity programs including medical meetings, exhibits, and direct mail, internet and other non-personal
promotion; and 

  

 1 

	 	(e)	samples and sample alternatives of the Licensed Product and costs relating to storage and distribution of samples to Sales Representatives. 

 Notwithstanding the foregoing, in no event will any of the following constitute A&P Expenses: Field Force Expenses; Managed Markets, MSL or other
personnel costs; costs of clinical studies; or distribution costs. 
  

	1.2	“Accounting Standards” with respect to a Person shall mean that such Person shall maintain records and books of accounts in accordance with U.S. Generally Accepted
Accounting Principles; provided, that with respect to NOVARTIS AG or any non-U.S. Affiliate of NOVARTIS, Accounting Standards shall mean that it shall maintain records and books of accounts in accordance with IFRS (International Financial Reporting
Standards). 

  

	1.3	“Act” shall mean the U.S. Food, Drug and Cosmetic Act, as amended from time to time (21 U.S.C. § 301 et seq.), together with any rules and regulations
promulgated thereunder. 

  

	1.4	“Actual Royalties” shall have the meaning set forth in Section 7.2(c). 

  

	1.5	“Adverse Event” shall mean any untoward medical occurrence in a patient, consumer or clinical investigation subject associated with the use of the Licensed Product
that does not necessarily have a causal relationship with this treatment. An Adverse Event can therefore be any unfavorable and unintended sign (including an abnormal laboratory finding), symptom, or disease temporally associated with the use of
Licensed Product, whether or not related to Licensed Product. In addition, all cases of apparent drug-drug interaction, pregnancy (with or without outcome), exposure during breastfeeding, paternal exposure, lack of efficacy, overdose, drug abuse and
misuse, drug maladministration or accidental exposure and dispensing errors are collected and databased even if no Adverse Event has been reported. 

  

	1.6	“Affiliate” shall mean any Person who directly or indirectly controls or is controlled by or is under common control with a Party. For purposes of this definition,
“control” or “controlled” shall mean ownership directly or through one or more Affiliates, of more than fifty percent (50%) of the shares of stock entitled to vote for the election of directors, in the case of a corporation,
or more than fifty percent (50%) of the equity interests in the case of any other type of legal entity, status as a general partner in any partnership, or any other arrangement whereby a Party controls or has the right to control the Board of
Directors or equivalent governing body of a corporation or other entity, or the ability to cause the direction of the management or policies of a corporation or other entity. 

  

	1.7	“Agreement” shall have the meaning set forth in the introductory paragraph. 

  

 2 

	1.8	“Agreement Quarter” shall mean, with respect to the first Agreement Quarter, the period beginning on the Effective Date and ending on the last day of the first full
calendar quarter following the Effective Date, and each calendar quarter thereafter. For the purpose of clarity, the term “calendar quarter” refers to each three-month quarter in a calendar year (i.e., January through March, April
through June, July through September and October through December). 

  

	1.9	“Agreement Semester” shall mean each six (6) month period in an Agreement Year, with the first Agreement Semester consisting of the first two
(2) Agreement Quarters of the Agreement Year and the second Agreement Semester consisting of the third (3rd) and fourth (4th) Agreement Quarters of the Agreement Year. Notwithstanding the foregoing, the first Agreement Semester shall
commence on the Effective Date and end on December 31, 2008. 

  

	1.10	“Agreement Year” shall mean, with respect to the first Agreement Year, the period beginning on the Effective Date and ending on June 30, 2009, and with respect
to each Agreement Year thereafter, the 12-month period ending on each anniversary of June 30, 2009 during the Term of this Agreement. 

  

	1.11	“Alliance Manager” shall have the meaning set forth in Section 3.4. 

  

	1.12	“Approval” shall mean any approval, registration, license or authorization from any Governmental Authority in any jurisdiction required for the manufacture,
development, marketing, promotion, sale, storage or transport of a product in such jurisdiction. 

  

	1.13	“Approval Application” shall mean the submission to the relevant Governmental Authority of an appropriate application seeking any Approval.

  

	1.14	“Audit Rights Holder” shall have the meaning set forth in Section 12.2(a). 

  

	1.15	“Audit Team” shall have the meaning set forth in Section 12.2(b). 

  

	1.16	“Auditee” shall have the meaning set forth in Section 12.2(a). 

  

	1.17	“Binding Forecast” shall have the meaning set forth in Section 5.3. 

  

	1.18	“Business Day” shall mean any day other than a Saturday, a Sunday or a day on which commercial banks in New York City are authorized or required by Law to remain
closed. 

  

	1.19	*** 

  

	1.20	*** 

  

	1.21	“Commercialization Plan” shall mean each Commercialization plan for Commercialization of the Licensed Product, as described in Section 4.2, prepared by ENDO
and reviewed by the JCC. 

  

	1.22	“Commercialization Report” shall have the meaning set forth in Section 4.15. 

  

 3 

	1.23	“Commercialize” shall mean to market, promote, distribute, offer to sell, sell and/or have sold a product and/or conduct other commercialization activities, and
“Commercialization” means commercialization activities relating to a product, including activities relating to marketing, promoting, distributing, offering for sale, and/or selling of such product or having such product sold to trade,
institutional, prescriber, payer, pharmacist and patient customers or otherwise. 

  

	1.24	“Committee” shall mean any of the JCC (or any other committee or sub-committee contemplated hereby or established in accordance with this Agreement).

  

	1.25	*** 

  

	1.26	“Confidential Information” shall mean all information or materials possessed or developed by either Party or their respective Affiliates, whether before or after
the Execution Date, related to such Party’s or its Affiliates’ business, including the manufacture, Development and/or Commercialization of any pharmaceutical products hereunder, including any information or materials on substances,
formulations, techniques, technology, equipment, data, reports, Know-How, sources for and methods of supply, patent position and business plans; provided, however, that Confidential Information shall not include information or material that
(i) is already in the receiving Party’s or its Affiliate’s lawful possession at the time of disclosure by the disclosing Party, as established by relevant documentary evidence; (ii) is already in the public domain as of the
Execution Date by reason of prior publication or otherwise; (iii) is received by a receiving Party or an Affiliate thereof on an unrestricted basis from a Third Party other than the disclosing Party, where such Third Party is authorized to
disclose such information; (iv) becomes part of the public domain after the Execution Date through no act, omission or fault of the receiving Party; or (v) is similar in nature to the purported confidential information but which the
receiving Party can demonstrate has been independently created, as established by relevant documentary evidence. 

  

	1.27	“Contract Sales Organization” or “CSO” shall mean a Third Party primarily engaged in providing sales representatives to promote and Detail
pharmaceutical products. 

  

	1.28	“Control” or “Controlled” shall mean with respect to any intellectual property right of a Person, that the Person owns or has a license to such
intellectual property right and has the ability to grant access, a license, or a sublicense to such intellectual property right as provided for in this Agreement without violating an agreement with, or infringing any rights of, a Third Party.

  

	1.29	“Corporate Names” shall have the meaning set forth in Section 11.1(a). 

  

	1.30	“Damages” shall have the meaning set forth in Section 15.1(a). 

  

	1.31	“DDMAC” shall mean the United States Office of Medical Policy, Division of Drug Marketing, Advertising and Communications. 

  

	1.32	“Delivery Location” shall have the meaning set forth in Section 5.5(c). 

  

 4 

	1.33	“Detail” or “Detailing” shall have the meaning set forth in Section 4.4(a). 

  

	1.34	“Develop” or “Development” shall mean development activities with respect to a pharmaceutical product, including pre-clinical research and
development, clinical development (including Phase IV Clinical Studies), regulatory development, product approval and registration. 

  

	1.35	“Development Costs” shall mean direct and indirect costs and expenses incurred in connection with the Development of a pharmaceutical product, including the costs
of clinical studies, the preparation, collation and/or validation of data from such clinical studies, preparation of medical writing and publishing and the preparation and filing of Approval Applications (including FDA user fees) and all other costs
incurred in seeking Approvals with respect to the product. Without limitation of the foregoing, Development Costs shall include: 

  

	 	(a)	all Out-of-Pocket Costs incurred with respect to any of the foregoing; 

  

	 	(b)	the direct and indirect costs of internal scientific, medical or technical regulatory personnel (including personnel expense, travel expenses and infrastructure costs) engaged in
Development activities with respect to the product, which costs shall be determined based on the FTE Rate; 

  

	 	(c)	the costs of clinical supply, including: (i) costs of clinical supplies; (ii) expenses incurred to purchase and/or package comparator drugs; and (iii) costs and
expenses of the disposal of clinical samples; and 

  

	 	(d)	the costs of identification, synthesis, qualification and/or validation of the drug substance. 

  

	1.36	“Development Plan” shall mean each Development plan for Development of the Licensed Product, as described in Section 8.2, prepared by NOVARTIS or ENDO, as the
case may be, and reviewed (and approved, in the case of a Development Plan submitted by ENDO) by the JCC. 

  

	1.37	“Disputed Product” shall have the meaning set forth in Section 5.8(c). 

  

	1.38	“DTC” shall have the meaning set forth in Section 4.11. 

  

	1.39	“Effective Date” shall mean the Execution Date. 

  

	1.40	“ENDO” shall have the meaning set forth in the introductory paragraph. 

  

	1.41	“ENDO Competing Product” shall have the meaning set forth in Section 10.2(b). 

  

	1.42	Reserved. 

  

	1.43	“Execution Date” shall have the meaning set forth in the introductory paragraph. 

  

 5 

	1.44	“Failure of Supply” shall have the meaning set forth in Section 7.2(d)(i). 

  

	1.45	“FDA” shall mean the United States Food and Drug Administration and any successor agency thereto. 

  

	1.46	“Field” shall mean use in the treatment of pain associated with osteoarthritis in joints amenable to topical treatment, subject to Section 8.1(b).

  

	1.47	“Field Force” shall mean ENDO’s field force(s) of Sales Representatives, which may include both internal and contract sales force(s). 

 

	1.48	“Field Force Expenses” shall mean costs and expenses incurred by ENDO and its Sales Representatives in connection with providing Details hereunder.

  

	1.49	“Firm Order” shall have the meaning set forth in Section 5.4(c). 

  

	1.50	“Force Majeure” shall have the meaning set forth in Section 16. 

  

	1.51	“FTE Rate” shall mean a rate of $*** per annum for the time of a full-time equivalent person year. 

  

	1.52	*** 

  

	1.53	“Good Manufacturing Practices” or “GMP” or “GMP Requirements” shall mean current Good Manufacturing Practices as such term is
defined from time to time by the FDA or other relevant Governmental Authority having jurisdiction over the manufacture or sale of the Licensed Product pursuant to its regulations, guidelines or otherwise. 

  

	1.54	“Governmental Authority” shall mean any court, agency, authority, department, regulatory body or other instrumentality of any government or country or of any
national, federal, state, provincial, regional, county, city or other political subdivision of any such government or any supranational organization of which any such country is a member, which has competent and binding authority to decide, mandate,
regulate, enforce, or otherwise control the activities of the Parties or their Affiliates contemplated by this Agreement. 

  

	1.55	“Guaranteed Minimum Royalties” shall have the meaning set forth in Section 7.2(b). 

  

	1.56	“HIPAA” shall mean the Health Insurance Portability and Accountability Act. 

  

	1.57	“Indemnified Party” shall have the meaning set forth in Section 15.1(a). 

  

	1.58	“Indemnifying Party” shall have the meaning set forth in Section 15.1(a). 

  

	1.59	“Initial Term” shall have the meaning set forth in Section 17.1(a). 

  

	1.60	“Invent” shall mean inventorship, as determined by U.S. patent statutes, regulations, and supporting case law. 

  

 6 

	1.61	“Joint Commercialization Committee” or “JCC” shall mean the Joint Commercialization Committee, as described in Section 3.

  

	1.62	“Know-How” shall mean unpatented and proprietary technical information, know-how, data, knowledge, techniques, discoveries, inventions, specifications, designs,
clinical design and measurement, test results, regulatory filings and approvals, trade secrets and other information (whether or not patentable). As used in this definition, “unpatented” shall mean that the subject matter of such Know-How
is not claimed in a Patent. As used in this definition, “Patent” shall not include pending, non-published patent applications. 

  

	1.63	“Launch” shall mean, with respect to a pharmaceutical product, the launch of such product for commercial sale in the Territory, with the date of Launch being the
first date of commercial sale of such product in the Territory. 

  

	1.64	“Law” or “Laws” shall mean all laws, statutes, rules, regulations, orders, judgments, injunctions and/or ordinances of any Governmental Authority,
including the PhRMA Code and the rules, regulations, guidelines and other requirements of DDMAC. 

  

	 1.65
	 “Licensed Product” shall mean Voltaren® Gel
(diclofenac sodium topical gel 1%) as approved by the FDA under the Licensed Product NDA for sale as an Rx Product in the Field in the Territory. 

  

	 1.66
	 “Licensed Product NDA” shall mean the NOVARTIS Voltaren® Gel NDA #22-122 as approved by the FDA on October 17, 2007, and any subsequent supplements or amendments related to the maintenance thereof. 

  

	1.67	“Licensed Product Warranties” shall have the meaning set forth in Section 5.8(a). 

  

	1.68	“Line Extension” shall have the meaning set forth in Section 10.1(a)(i). 

  

	1.69	“Managed Markets” shall mean the segments of the U.S. Healthcare system for the Licensed Product composed of managed market entities and institutional customers
(e.g., pharmacy benefit managers, health plans, wholesale distributors, retail chains, long term care pharmacy providers, employers, the United States Government, and state and local governments). 

  

	1.70	“Managed Markets Information Service” shall mean *** (or if *** is no longer providing such reports, a similar Third Party information service mutually acceptable
to the Parties); provided that, in the event that data reported by such service are the basis for triggering any reduction or adjustment in minimum A&P Expenses, minimum Details and/or Guaranteed Minimum Royalties hereunder or for triggering the
right of ENDO to terminate this Agreement in accordance with Section 17.3(d), then NOVARTIS shall have the right to request that such data be confirmed by *** (or if either of such entities is no longer providing such reports, a similar Third
Party information service mutually acceptable to the Parties). In the event that the two information services do not agree as to whether there has been a decrease of *** (***%) or more in “covered lives,” a Third Party mutually designated
by the Parties shall verify with the Managed Markets as to whether the Licensed Product is reimbursed. For the avoidance of doubt, if any such service is no longer providing the referenced reports such that a successor service is used, the number of
“covered lives” in both periods being compared shall be those reported by the successor service. 

  

 7 

	1.71	“Material Adverse Effect” shall have the meaning set forth in Section 13.3(a). 

  

	1.72	“Minimum Details Shortfall Fee” shall mean the amounts payable by ENDO to NOVARTIS pursuant to Section 4.4(c) in respect of ENDO’s failure to deliver the
minimum Details required. 

  

	1.73	“MSL” shall mean Medical Science Liaison. 

  

	1.74	“NDA” shall mean a New Drug Application, as described in the FDA regulations, 21 CFR § 314.50, including all amendments and supplements to the application.

  

	1.75	“Net Sales” with respect to a product shall mean the gross amount invoiced by or on behalf of a Party or its Affiliates, licensees or sublicensees for such product
sold to Third Parties other than licensees or sublicensees in bona fide, arm’s-length transactions, less the following deductions, determined in accordance with such Party’s standard accounting methods as generally and consistently applied
by such Party, to the extent included in the gross invoiced sales price of the product or otherwise directly paid or incurred by such Party, its Affiliates, licensees or sublicensees acting on its behalf with respect to the sale of such product:

  

	 	(i)	normal and customary trade and quantity discounts actually allowed and properly taken directly with respect to sales of the product; 

  

	 	(ii)	amounts repaid or credited by reasons of defects, recalls, returns, rebates and allowances of goods or because of retroactive price reductions specifically identifiable to the
product; 

  

	 	(iii)	chargebacks, rebates (or the equivalent thereof) and other amounts paid on sale or dispensing of the product; 

  

	 	(iv)	rebates (or the equivalent thereof) and administrative fees paid to medical healthcare organizations, to group purchasing organizations or to trade customers in line with approved
contract terms or other normal and customary understandings and arrangements; 

  

	 	(v)	amounts payable resulting from governmental (or agency thereof) mandated rebate programs or chargeback programs; 

  

	 	(vi)	tariffs, duties, excise, sales, value-added and other taxes (other than taxes based on income) and charges of Governmental Authorities; 

  

	 	(vii)	cash discounts for timely payment; 

  

	 	(viii)	rebates paid to wholesalers for inventory management programs; 

  

 8 

	 	(ix)	amounts repaid or credited or provisions made for uncollectible amounts on previously sold products; and 

  

	 	(x)	required distribution commissions/fees (such as fees related to services provided pursuant to distribution service agreements with major wholesalers) payable to any Third Party
providing distribution services to such Party so long as such commissions/fees are consistent with the distribution commissions/fees payable in respect to other branded Rx Products commercialized by ENDO; 

 all as determined in accordance with such Party’s usual and customary accounting methods, which shall be in accordance with the Accounting Standards.
Sales from a Party to its Affiliates, licensees or sublicensees shall be disregarded for purposes of calculating Net Sales. Any of the items set forth above that would otherwise be deducted from the invoice price in the calculation of Net Sales but
which are charged to Third Parties shall not be deducted from the invoice price in the calculation of Net Sales. 
 Further: 
  

	 	(a)	In the case of any sale or other disposal of a product between or among a Party and its Affiliates, licensees and sublicensees, for resale, Net Sales shall be calculated as above
only on the value charged or invoiced on the first arm’s-length sale thereafter to a Third Party; 

  

	 	(b)	In the case of any sale which is not invoiced or is delivered before invoice, Net Sales shall be calculated at the time of shipment or when the product is paid for, if paid for
before shipment or invoice; and 

  

	 	(c)	In the case of any sale or other disposal for value, such as barter or counter-trade, of any product, or part thereof, other than in an arm’s-length transaction exclusively for
money and excluding any patient assistance programs, Net Sales shall be calculated as above on the value of the non-cash consideration received or the fair market price (if higher) of the product in the country of sale or disposal.

  

	1.76	“Non-Primary Detail” shall mean a Detail during which the Licensed Product is the second (2nd) most prominent item presented in the call and comprises, on
average, approximately *** (***%) of the time and cost of the call. 

  

	1.77	“Notice of Rejection” shall have the meaning set forth in Section 5.8(b). 

  

	1.78	“NOVARTIS” shall have the meaning set forth in the introductory paragraph. 

  

	1.79	“NOVARTIS AG Know-How” shall mean all Know-How Controlled by NOVARTIS AG or its Affiliates that relates to the Licensed Product or the manufacture, use, Development
or Commercialization thereof. 

  

 9 

	1.80	“NOVARTIS AG Patents” shall mean all Patents Controlled by NOVARTIS AG or its Affiliates which include at least one claim which would be infringed (or, in the case
of a patent application, if issued, would be infringed) by the manufacture, use, Development or Commercialization of the Licensed Product. 

  

	1.81	“NOVARTIS AG Technology” shall mean NOVARTIS AG Patents and NOVARTIS AG Know-How, except for the NOVARTIS Technology. 

  

	1.82	“NOVARTIS Technology” shall mean the Licensed Product NDA and all clinical studies conducted by NOVARTIS in support of the Licensed Product NDA.

  

	1.83	“NOVARTIS Warehouse” shall have the meaning set forth in Section 5.5(b). 

  

	1.84	“NSAID” shall mean a non-steroidal anti-inflammatory drug. 

  

	1.85	“OTC Equivalent Product” shall mean any *** product approved by the FDA for sale in the Territory as an OTC Product, ***. 

  

	1.86	“OTC Product” shall mean a pharmaceutical product for use in humans that has been approved by the FDA for sale to customers and/or patients in the Territory without
a prescription. For the avoidance of doubt, a BTC Product shall constitute an OTC Product. 

  

	1.87	“OTC Switch” shall have the meaning set forth in Section 9.1. 

  

	1.88	“Out-of-Pocket Costs” shall mean direct expenses paid or payable to Third Parties and specifically identifiable as relating to and incurred to manufacture, Develop
or Commercialize the Licensed Product. 

  

	1.89	“Party” shall have the meaning set forth in the introductory paragraph. 

  

	1.90	“Patents” shall mean (a) patents and patent applications (including provisional applications and applications for certificates of invention); (b) any
patents issuing from such patent applications (including certificates of invention); (c) all patents and patent applications based on, corresponding to, or claiming the priority date(s) of any of the foregoing; (d) any reissues,
substitutions, confirmations, registrations, validations, re-examinations, additions, continuations, continued prosecution applications, continuations-in-part, or divisions of or to any of the foregoing; and (e) term extensions, supplementary
protection certificates and the like. 

  

	1.91	“PDMA” shall mean the Prescription Drug Marketing Act of 1987, as amended, and the regulations promulgated thereunder. 

  

	1.92	“Person” shall mean and include an individual, partnership, joint venture, limited liability company, a corporation, a firm, a trust, an unincorporated organization
and a government or other department or agency thereof. 

  

 10 

	1.93	“Pharmacovigilance Agreement” shall mean the Pharmacovigilance Agreement to be entered into between the Parties within sixty (60) days of the execution and
delivery of this Agreement. 

  

	1.94	“Phase IV Clinical Study” shall mean any post-marketing Approval clinical study, whether initiated by a Party or at the request of an applicable Governmental
Authority, to delineate additional information about a drug’s risks, benefits, and optimal use, including safety surveillance studies, pharmacoeconomic studies, pharmacoepidemiology studies, studies relating to different dosing or schedules of
administration, studies of the use of the drug in other patient populations or other stages of the disease, or studies of the use of the drug over a longer period of time. 

  

	1.95	“PhRMA Code” shall mean the PhRMA Code on Interacting with Healthcare Professionals, as in effect from time to time. The current PhRMA Code is attached hereto as
Schedule 1.95. 

  

	1.96	“PPI Adjusted Purchase Price” shall have the meaning set forth in Section 5.9(b)(i). 

  

	1.97	“Primary Detail” shall mean a Detail during which the Licensed Product is the most prominent item presented in the call and comprises, on the average, approximately
*** (***%) of the time and cost of the call. 

  

	1.98	“Producer Price Index Figure” means the producer price index industry data figure for pharmaceutical preparations (PCU 2834) as published by the Bureau of Labor
Statistics of the United States Department of Labor (Internet website address: http://www.bls.gov/data/home.htm). 

  

	 1.99
	 “Product Brand Equity” shall mean Voltaren®
brand essence, brand personality and brand look and feel used in advertising and promotion for the Licensed Product as provided by NOVARTIS to ENDO on March 4, 2008 and as updated by NOVARTIS from time to time. Anything in this Agreement to the
contrary notwithstanding, ENDO shall make changes in the manner it performs its obligations hereunder that are affected by updates in the Product Brand Equity as soon as commercially reasonable. 

  

	1.100	“Product Liability Claims” shall have the meaning set forth in Section 15.2. 

  

	 1.101
	 “Product Trademark” shall mean the Voltaren® trademark, U.S. Registration No. 960282, the Man and Path design trademark, U.S. Trademark Application No. 77/258978, the JOY OF MOVEMENT TM, U.S. Trademark Application No. 77/053235, and any
accompanying logos, trade dress and/or indicia of origin, including applicable branding, color, palette, typeface, tagline and icon. 

  

	1.102	“Professionals” shall mean physicians and other health care practitioners who are permitted under the Laws of the United States to prescribe the Licensed Product.

  

	1.103	“Promotional Materials” shall have the meaning set forth in Section 4.6. 

  

	1.104	“Recall Expenses” shall have the meaning set forth in Section 5.10(c)(ii). 

  

 11 

	1.105	“Regulatory Exclusivity Period” shall mean the period of any regulatory exclusivity granted by the FDA with respect to the Licensed Product.

  

	1.106	“Rejected Products” shall have the meaning set forth in Section 5.8(b). 

  

	1.107	“Renewal Term” shall have the meaning set forth in Section 17.1(a). 

  

	1.108	“Representatives” shall mean, with respect to a Person, the employees, consultants, officers, directors, representatives and permitted sublicensees and
subcontractors of such Person, including, in the case of ENDO, all CSOs, MSLs and field-based Managed Market personnel. 

  

	1.109	“Required Phase IV Clinical Studies” shall mean Phase IV Clinical Studies required by the FDA to be conducted as a condition to its Approval of the Licensed Product
NDA. 

  

	1.110	“Rolling Forecast” shall have the meaning set forth in Section 5.3. 

  

	1.111	“Rx Product” shall mean a pharmaceutical product for use in humans that has been approved by the FDA for sale to customers and/or patients in the Territory with a
prescription written by a Professional. 

  

	1.112	“Sales Force” shall mean the Sales Representatives utilized by ENDO (including Sales Representatives of a Contract Sales Organization) to Detail the Licensed
Product in accordance with this Agreement. 

  

	1.113	“Sales Representative” shall mean an individual, whether employed or engaged by ENDO, its Affiliates or Representatives, including a CSO, who engages in Detailing
and other promotional efforts with respect to the Licensed Product and who has been appropriately trained and equipped, in accordance with the terms of Sections 4.3 and 4.5, to make sales calls concerning the Licensed Product and its approved
indications in accordance with this Agreement. 

  

	1.114	“Senior Officers” shall mean the respective Chief Executive or Operating Officers (or any designee thereof) of Novartis Over-the-Counter business unit and ENDO.

  

	1.115	“Specifications” shall mean the requirements and standards, including packaging requirements, for Licensed Product as set forth on Schedule 5.2, as amended or
supplemented from time to time by Law. 

  

	1.116	“Target Prescriber” shall mean, with respect to the Licensed Product, one of the specifically identified Professionals within a Sales Representative’s
territory to be called upon by the Sales Representative based on ENDO’s proprietary analysis of physician opportunities as set forth in ENDO’s call plan, as described on Schedule 4.4(d). 

  

	1.117	“Technology” shall mean Patents and Know-How. 

  

	1.118	“Term of this Agreement” shall have the meaning set forth in Section 17.1(b). 

  

 12 

	1.119	“Territory” shall mean the United States. 

  

	1.120	“Third Party” shall mean any Person other than a Party or any Affiliate of a Party. 

  

	1.121	“Third Party Dispute Resolution Procedures” shall mean the procedures described in Schedule 7.2(d). 

  

	1.122	“United States” or “U.S.” shall mean the United States of America, its territories and possessions, including the Commonwealth of Puerto Rico.

  

	1.123	“Upfront Payment” shall have the meaning set forth in Section 7.1. 

  

	1.124	Interpretation. 

  

	 	(a)	When used in this Agreement the words “include”, “includes” and “including” shall be deemed to be followed by the words “without limitation.”

  

	 	(b)	Any terms defined in the singular shall have a comparable meaning when used in the plural, and vice-versa. 

  

	 	(c)	All references to recitals, Articles, Sections, Exhibits, Schedules and Appendices shall be deemed references to recitals, Articles, Sections, Exhibits, Schedules and Appendices to
this Agreement. 

  

	 	(d)	This Agreement shall be deemed drafted jointly by all the parties hereto and shall not be specifically construed against a Party hereto based on any claim that such Party or its
counsel drafted this Agreement. 

 SECTION 2  
 GRANT 
  

	2.1	License. Subject to the terms and conditions of this Agreement, the NOVARTIS Parties hereby grant to ENDO the exclusive right and license to Develop (solely to the extent
expressly permitted in Section 8) and Commercialize the Licensed Product as an Rx Product under the NOVARTIS AG Technology and the NOVARTIS Technology and the Product Trademark in the Field in the Territory in accordance with this Agreement.
Except as expressly provided in this Agreement (such as ENDO’s right to engage a CSO), the rights and licenses granted to ENDO under this Agreement shall not be sublicensed, assigned or transferred. Nothing in this Agreement shall prevent ENDO
from performing any of its obligations through subcontractors, except that ENDO may not subcontract its control over marketing of the Licensed Product. ENDO shall remain responsible for performance of any obligations that it subcontracts.

  

	2.2	Compliance With Law. Each of NOVARTIS and ENDO shall, and shall cause their Affiliates and respective Representatives to, perform their obligations under this Agreement in
accordance with applicable Law. No Party or any of its Affiliates shall, or shall be required to, undertake any activity under or in connection with this Agreement which violates, or which it believes, in good faith, may violate, any applicable Law.

  

 13 

	2.3	Reservation of Rights; NOVARTIS Know-How. 

  

	 	(a)	ENDO acknowledges that, notwithstanding any other provision of this Agreement, all rights of NOVARTIS and its Affiliates not specifically granted herein to ENDO are expressly
reserved to NOVARTIS or its Affiliates, as applicable. Without limiting the foregoing, in no event is ENDO granted any rights or licenses to or with respect to any generic pharmaceutical product, any OTC Product (subject to Section 9.2) or any
other diclofenac topical gel (subject to Section 10.1 with respect to Line Extensions). 

  

	 	(b)	ENDO acknowledges and agrees that, notwithstanding the license grant in Section 2.1, neither NOVARTIS nor any Affiliate thereof shall be under any obligation to disclose to
ENDO any NOVARTIS Know-How, including the Licensed Product NDA or any data therein, all of which shall constitute NOVARTIS Confidential Information. 

 SECTION 3  
 GOVERNANCE 
  

	3.1	Committees/Management. The Parties agree to establish, for the purposes specified herein, a Joint Commercialization Committee and such other Committees as the Parties may
from time to time determine to be necessary or desirable. The Parties acknowledge and agree that, notwithstanding any other provision hereof, none of the Committees formed or to be formed under this Agreement shall have the power to amend, modify,
waive compliance with or otherwise alter any of the terms or conditions of this Agreement. 

  

	3.2	The Joint Commercialization Committee. 

  

	 	(a)	The Joint Commercialization Committee shall be established by the Parties and shall be composed of six (6) members. Promptly, but in no event more than thirty (30) days,
after the Execution Date, NOVARTIS shall appoint three (3) representatives and ENDO shall appoint three (3) representatives to the JCC. A Party may change any of its representatives at any time by giving written notice to the other Party.
One representative from each Party shall serve as the co-chair of the JCC. The JCC co-chairs shall approve the agenda set for each meeting by the Alliance Managers. In addition, the co-chairs shall appoint a person who shall be responsible for
recording, preparing and, within a reasonable time, issuing minutes of each JCC meeting, which meeting minutes shall be submitted for approval by the co-chairs of the JCC. 

  

 14 

	 	(b)	The JCC shall meet once each Agreement Quarter, unless otherwise mutually agreed in writing by the Parties. If possible, the meetings shall be held in person or where appropriate,
by video or telephone conference. Unless otherwise agreed, face-to-face meetings of the JCC shall be hosted by the Parties on an alternating basis. The Parties shall determine the form of the meeting. All decisions of the JCC shall be made
unanimously, with each Party collectively having one (1) vote to be made by their respective appointees regardless of the number of representatives present or voting; provided, that no such vote shall be valid unless each Party is represented
by at least one member either by proxy or actual presence at the meeting at which the vote is taken. Voting by proxy is permissible. Subject to appropriate confidentiality undertakings where applicable and approval of the other Party, additional
participants may be invited by any member of the JCC to attend meetings where appropriate (e.g., representatives of a CSO or other outside consultants). Such additional participants shall not be deemed, or have any rights or responsibilities of, a
member of the JCC. 

  

	 	(c)	Where the JCC is unable to reach unanimity regarding any matter, such dispute shall be resolved in accordance with the provisions of Section 3.5. 

  

	3.3	Responsibilities of the JCC. Except as otherwise set forth herein, the JCC shall supervise all Commercialization and Development activities of the Parties with respect to the
Licensed Product under this Agreement. The responsibilities of the JCC shall be exercised subject to the other terms of this Agreement and shall include the following: 

  

	 	(a)	reviewing the annual Commercialization Plan submitted to the JCC by ENDO prior to the beginning of each Agreement Year and updates thereof; 

  

	 	(b)	reviewing any Development Plan submitted to the JCC and, in the case of any Development Plan submitted by ENDO, approving such Development Plan; 

  

	 	(c)	monitoring compliance with the Commercialization Plan and, in connection therewith, approving any material change in a Commercialization Plan; 

  

	 	(d)	monitoring compliance with any Development Plan, including reviewing any material change in such Development Plan, and, in the case of any Development Plan submitted by ENDO,
approving any such material change; 

  

	 	(e)	monitoring overall performance of the Commercialization activities contemplated by this Agreement; 

  

	 	(f)	approval of all creative concepts and oversight of the development of core advertising strategies and Promotional Materials, subject to legal, medical and regulatory review in
accordance with Section 4.6; 

  

	 	(g)	monitoring and ensuring the continuity of quality, function and effectiveness of the Sales Force and compliance with Detailing obligations hereunder; 

  

 15 

	 	(h)	reviewing ENDO’s reports of activities under this Agreement and suggesting any changes to reporting procedures; 

  

	 	(i)	reviewing Target Prescribers in accordance with Section 4.4(d); 

  

	 	(j)	conducting sales and operations planning review, during which supply and demand for the Licensed Product and ENDO demand forecasts will be discussed; 

  

	 	(k)	review and approval of any use or presentation of the Product Trademark and Product Brand Equity; 

  

	 	(l)	reviewing quarterly Managed Markets Information Service reports identifying the number of “covered lives”; 

  

	 	(m)	review and approval of scientific articles, reference publications and healthcare economic information if intended for distribution by ENDO from time to time in connection with the
Licensed Product; and 

  

	 	(n)	establishing such new Committees as it deems necessary. 

  

	3.4	Alliance Manager. Each of NOVARTIS and ENDO shall appoint a senior representative who possesses a general understanding of clinical, regulatory, sales and marketing issues to
act as its Alliance Manager (“Alliance Manager”). Each Alliance Manager shall be charged with creating and maintaining a collaborative work environment within the Committee. Each Alliance Manager will also be responsible for:

  

	 	(a)	coordinating the various functional representatives of NOVARTIS or ENDO, as appropriate, in an effort to ensure consistency and efficiency; 

  

	 	(b)	providing single-point communication for seeking consensus both internally within the respective Party’s organization and together regarding key strategy and other material
issues; 

  

	 	(c)	assisting in the integration of teams across functional areas; 

  

	 	(d)	planning and coordinating internal and external communications; and 

  

	 	(e)	planning agenda for and scheduling JCC meetings, provided, that the agenda shall include any matter reasonably requested by either Party. 

 In furtherance of the foregoing, each Alliance Manager shall be required to dedicate such time as may be reasonably necessary to fulfill his or her
obligations under this Agreement. The Alliance Manager may, but is not required to be, a member of the JCC. 
  

	3.5	 Resolution of Disputes. In the event that the JCC is, after a period of twenty (20) days, unable to make a decision due to a lack of required unanimity
of the Parties, either Party may submit the matter being considered to the Senior Officers for a joint decision. In such event, the Party submitting the matter to the Senior Officers shall formally request the dispute be 

  

 16 

	 	 
resolved by the Senior Officers, specifying the nature of the dispute with sufficient specificity to permit adequate consideration by such Senior Officers.
The Senior Officers shall diligently and in good faith, attempt to resolve the referred dispute expeditiously and, in any event, within twenty (20) days of receiving such written notification. In the event the Senior Officers are unable to
reach a resolution of any referred dispute within such time period, the Senior Officer of NOVARTIS shall make the final decision (which shall constitute JCC approval) in respect of such dispute to the extent such dispute relates to (i) use or
presentation of the Product Trademark or Product Brand Equity; (ii) creative concept decisions, which shall be informed by market research-based rationale and subject to Section 4.6, (iii) Development (subject to Section 8),
(iv) manufacturing and supply of the Licensed Product, (v) legal issues relating to the Licensed Product, but not to interpretation or enforcement of this Agreement, or medical or regulatory issues relating to the Licensed Product or
(vi) Development and Commercialization of any OTC Equivalent Product. The Senior Officer of ENDO shall make the final decision (which shall constitute JCC approval) in respect of any such dispute to the extent such dispute relates to any matter
concerning Commercialization of the Licensed Product and which is not a matter on which NOVARTIS makes the final decision pursuant to the preceding sentence. For the avoidance of doubt, in the event that a disputed matter involves both matters on
which NOVARTIS has the final decision and matters on which ENDO has the final decision, and the matters are so intertwined that they cannot be separately resolved, the determination of NOVARTIS will control. Notwithstanding any other provision
hereof, any disputes referred to the Senior Officers for resolution pursuant to this Section 3.5 (other than disputes related to compliance with this Agreement or the validity, breach, termination or interpretation of this Agreement) shall not
be subject to any dispute resolution mechanism or procedure other than pursuant to this Section 3.5. 

 SECTION 4
 
 COMMERCIALIZATION 
  

	4.1	Commercialization. ENDO shall be solely responsible to Commercialize the Licensed Product under the Product Trademark in the Field in the Territory during the Term of this
Agreement. All Commercialization activities shall be conducted in accordance with the terms of this Agreement and the then-applicable Commercialization Plan. Subject to the preceding sentence, ENDO shall use commercially reasonable efforts to
Commercialize the Licensed Product in the Territory. ENDO shall be solely responsible for all Commercialization Expenses. 

  

	4.2	 Commercialization Plans. The Commercialization Plan for Agreement Year 1 shall be attached hereto as Schedule 4.2 within four (4) weeks after the
Execution Date. Subject to the terms of Section 3, ENDO shall annually develop the Commercialization Plan for each subsequent Agreement Year and shall submit it to the JCC for review at least ninety (90) days prior to the beginning of the
applicable Agreement Year. Each Commercialization Plan shall incorporate a budget for Commercialization Expenses and will set forth the plan for the Commercialization of the Licensed Product in accordance with this Agreement for the applicable
Agreement Year, including: (a) strategies for Detailing and otherwise 

  

 17 

	 	 
Commercializing the Licensed Product; (b) anticipated marketing, sales and promotion efforts by ENDO (including number of Details and sampling
activities); (c) market and sales and Licensed Product demand forecasts providing projected sales by month; (d) advertising, public relations and other promotional programs, including professional symposia and sampling, to be used in
Commercialization; (e) Managed Markets strategies and (f) the call plan strategy. Each Commercialization Plan and performance by ENDO against the Commercialization Plan shall be reviewed by the JCC annually and any significant updates to
the Commercialization Plan shall be reviewed by the JCC from time to time as necessary, but no less frequently than quarterly. 

  

	4.3	Field Force 

  

	 	(a)	Field Force Activities. In Commercializing the Licensed Product under this Agreement, ENDO shall provide a Field Force of Sales Representatives to Detail the Licensed
Product, and such internal administrative and logistical support of such Sales Representatives as is usual and customary in the pharmaceutical industry in the Territory. Such Sales Representative support shall include: 

  

	 	(i)	training, maintaining and managing Sales Representatives to Detail health care Professionals and potential purchasers, including Target Prescribers; 

  

	 	(ii)	distributing samples and literature through ENDO’s Sales Representatives or other customary methods; 

  

	 	(iii)	disseminating Professionals’ educational materials; 

  

	 	(iv)	subject to Section 6, responding to inquiries regarding the Licensed Product (other than consumer and medical inquiries); 

  

	 	(v)	providing adequate administrative support services (such as an electronic territory management system); and 

  

	 	(vi)	setting, monitoring and executing Sales Representative incentives related to the Commercialization of the Licensed Product. 

  

	 	(b)	Contract Sales Organization. 

  

	 	(i)	 Engagement of CSO. ENDO shall be entitled to discharge any of its Detailing requirements under this Agreement by engaging the services of a Contract Sales
Organization. ENDO shall notify NOVARTIS within a reasonable period of time prior to engaging a CSO in order to enable NOVARTIS to consider and provide ENDO with its opinion regarding the proposed engagement of such CSO. ENDO will consider
NOVARTIS’ opinion on such CSO in good faith. If ENDO retains a Contract Sales Organization, such retention shall be pursuant to a written agreement that provides, among other things, that (A) the Contract Sales Organization agrees to
comply with the terms and conditions of this Agreement, including all compliance, confidentiality, 

  

 18 

	 	 
record keeping, reporting and auditing provisions hereof, (B) the Contract Sales Organization shall not be entitled to assign or subcontract any of its
obligations thereunder, and (C) such agreement shall be assignable by ENDO pursuant to Section 17.5(c) (and shall be assigned to NOVARTIS at NOVARTIS’ written request, without further consent or approval of ENDO, pursuant to
Section 17.5(c)). Other than with respect to any period after ENDO’s agreement with the Contract Sales Organization is assigned pursuant to Section 17.5(c), ENDO will be responsible for the Contract Sales Organization’s
compliance with this Agreement, including the training and monitoring thereof. 

  

	 	(ii)	CSO Competitive Activities. ***. 

  

	 	(c)	Compliance with Laws. 

  

	 	(i)	Without limiting its other obligations hereunder, ENDO covenants and agrees to ensure that (A) no Sales Representative utilized by ENDO hereunder shall have been
(1) convicted of an offense related to any federal or state health care program; (2) excluded or otherwise rendered ineligible for Federal or State health care program participation or (3) debarred under Subsection (a) or
(b) of Section 306 of the Act, and (B) no person on any FDA Clinical Investigator enforcement lists will participate in the Commercialization of the Licensed Product by or on behalf of ENDO, including the following:
(1) Disqualified/Totally Restricted List, (2) Restricted List and (3) Adequate Assurances List. ENDO further covenants that, if at any time it becomes aware that any Sales Representative who participated or is participating in the
Commercialization of the Licensed Product is on, or is being added to the FDA Debarment List or any FDA Clinical Investigator Enforcement Lists, ENDO will provide notice of this to NOVARTIS within forty-eight (48) hours of its becoming aware of
this fact and shall, subject to applicable Law, immediately terminate such person from conducting any activity under this Agreement. 

  

	 	(ii)	In connection with any activity under this Agreement, ENDO and all Sales Representatives shall comply in all material respects with the Office of Inspector General Compliance
Program Guidance for Pharmaceutical Manufacturers, April 2003, PDMA, state Laws and regulations governing the storage and distribution of pharmaceutical samples and aggregate spending on physician gifts, entertainment and expenses, the PhRMA Code,
Sec. 1128B(b) of the Social Security Act, the AMA Guidelines on Gifts to Physicians from Industry, the Office of Inspector General Compliance Program Guidance for Pharmaceutical Manufacturers, HIPAA and all other applicable Laws.

  

 19 

	 	(d)	Field Force Expenses. ENDO shall be solely responsible for all Field Force Expenses. 

  

	4.4	Detailing. 

  

	 	(a)	Detailing. Without limitation as to the types of promotional efforts ENDO may undertake, ENDO Sales Representatives shall each conduct face-to-face one-on-one discussions
with Professionals, during which a promotional message involving the Licensed Product is given, for the purpose of promoting the Licensed Product to such Professionals in accordance with this Agreement (each such discussion being a
“Detail” and the holding of such meetings being “Detailing”). For the avoidance of doubt, (i) a reminder presentation or a sample drop shall not constitute a Detail, a Primary Detail or a Non-Primary Detail; and
(ii) presentations to groups, medical conventions or institutions shall not constitute a Detail, a Primary Detail or a Non-Primary Detail. 

  

	 	(b)	Minimum Detailing Requirements. With respect to each Agreement Year, ENDO shall, at a minimum, perform the number of Details and the number of Primary Details within such
number of Details, as set forth below: 

  

					
	 Agreement Year
	  	Details	 	Portion of Details
Required to be Primary
Details
	 Year 1
	  	***	 	***
	 Year 2
	  	***	 	***
	 Year 3
	  	***	 	***
	 Year 4
	  	***	 	***
	 Year 5
	  	***	 	***
	 Each Renewal Term
	  	***	 	***

 In order to count against the minimum Details above, a Detail must be either a Primary Detail or
a Non-Primary Detail. The Detail and Primary Detail requirements for Agreement Year 1 shall be from the time of Launch through the end of such Agreement Year. The Detail and Primary Detail requirements in respect of each Agreement Semester shall be
determined by the JCC and set forth in the applicable Commercialization Plan, subject to the Agreement Year requirements set forth above. Any changes to the number of Details and Primary Details set forth in this Section 4.4(b) shall be subject
to prior written approval by NOVARTIS. 
  

	 	(c)	Detailing Shortfalls. 

  

	 	(i)	 ENDO shall make up any shortfall in the minimum Detail requirements set forth in Section 4.4(b) in an Agreement Semester during the first Agreement Quarter of
the next succeeding Agreement Semester. If ENDO adequately corrects any shortfall during such Agreement Quarter, ENDO’s Detailing obligation for 

  

 20 

	 	 
the preceding Agreement Semester shall be deemed fully satisfied without further penalty or obligation. In the event that ENDO fails to perform ***% of the
minimum number of total Details or Primary Details to Target Prescribers for any Agreement Semester, ENDO shall be obligated to pay to NOVARTIS a fee of $*** for each missed Detail below the ***% threshold at the end of the applicable Agreement Year
within thirty (30) days of written notice by NOVARTIS to ENDO. 

  

	 	(ii)	In the event that ENDO fails to meet the required minimum Details to Target Prescribers for any Agreement Semester and adequately corrects such shortfall in accordance with
Section 4.4(c)(i), the amount of any Minimum Details Shortfall Fee paid for such previous Agreement Semester shall be reimbursed to ENDO as a credit against royalties. 

  

	 	(iii)	For the avoidance of doubt, for the purpose of calculating any Detailing Shortfalls in accordance with this Section 4.4(c), a missed Detail shall not be counted more than once.

  

	 	(d)	Identification of Target Prescribers. A description of Target Prescribers in the Territory to be Detailed during Agreement Year 1 of the Term of this Agreement, broken down
by prescription decile, is attached hereto as Schedule 4.4(d). For each subsequent Agreement Year, a description of Target Prescribers in the Territory to be Detailed during such subsequent Agreement Year, broken down by prescription decile, shall
be submitted by ENDO to the JCC for review as part of the Commercialization Plan. For the avoidance of doubt, at least *** of Target Prescribers during Agreement Year 1 will be on the list of prescribers provided by NOVARTIS to ENDO prior to the
Execution Date. 

  

	 	(e)	Record Keeping. ENDO shall retain records of its Detailing of the Licensed Product in the Territory as necessary to comply with applicable Law and its reporting obligations
pursuant to Section 4.15 below and in order to permit audits pursuant to Section 12.2. 

  

	 	(f)	In the Field. ENDO’s Field Force shall be trained and shall commence Detailing on the later of (i) *** weeks of the Effective Date of this Agreement; or
(ii) *** weeks from ENDO’s receipt of at least *** of the supplies of the Licensed Product and samples suitable for Launch as ordered by ENDO in accordance with Section 5 in order to support Launch of the Licensed Product.

  

	4.5	Training. 

  

	 	(a)	ENDO will be solely responsible for training its Sales Representatives in the Detailing and promotion of the Licensed Product, at its expense (including the cost of training
materials). Launch materials for training Sales Representatives will be those developed by NOVARTIS and provided to ENDO at no additional cost to ENDO, and thereafter all training materials will be developed by ENDO and approved by the respective
Parties. 

  

 21 

	 	(b)	As part of their overall training program, ENDO Sales Representatives shall complete and comply with the Adverse Event reporting instructions provided by ENDO, a copy of which shall
be provided to NOVARTIS. Sales Representatives shall be trained by ENDO in connection with compliance with applicable Law, including the requirements of Section 4.3(c)(ii), prior to engaging in promotion of the Licensed Product.

  

	 4.6
	 Promotional Materials. ENDO shall be responsible for developing and disseminating all promotional, advertising,
communication and educational materials relating to the Commercialization of the Licensed Product hereunder, other than Launch materials developed by NOVARTIS which shall be provided in electronic format by NOVARTIS, at no additional cost to ENDO,
by the Effective Date (collectively, “Promotional Materials”). All Promotional Materials shall comply with applicable Law and must comply with the Product Trademark, Product Brand Equity and NOVARTIS’ Voltaren® gel style and branding guidelines that were sent to ENDO by NOVARTIS on March 4, 2008. As between NOVARTIS and ENDO, NOVARTIS shall own all right, title, and interest in and to any such
Promotional Materials, including applicable copyrights and trademarks. NOVARTIS shall have the right to review all Promotional Materials. ENDO shall consider all comments of NOVARTIS in good faith and NOVARTIS shall have final approval rights with
respect to matters involving Product Trademark or Product Brand Equity. However, creative concepts that are used in the advertising and promotion for the Licensed Product shall require approval of both Parties, and in the event both Parties do not
agree, the concept that tests higher in Third Party concept-testing shall be the concept that is adopted; provided, that both Parties have jointly developed the concepts to be tested and have approved the action standards, such approval not to be
unreasonably withheld or delayed. For the avoidance of doubt, NOVARTIS shall not be responsible for any Out-of-Pocket Costs incurred with respect to jointly developed creative concepts so long as any such costs incurred by or on behalf of NOVARTIS
have been reviewed and approved by ENDO before they are incurred. Further, no Promotional Materials to be submitted to DDMAC under the Licensed Product NDA shall be used if NOVARTIS reasonably objects based on legal, medical or regulatory grounds.
NOVARTIS shall review and submit comments to Promotional Materials promptly. Subject to the next sentence, if ENDO has not received comments within *** Business Days for Promotional Materials which, in the aggregate including all pieces under review
at the same time, are under *** pages in length or within *** Business Days for longer Promotional Materials, such Promotional Materials will be deemed to have been approved by NOVARTIS. All Promotional Materials shall be provided to NOVARTIS
sufficiently in advance of first use so as to enable it to file such materials with DDMAC and otherwise comply with its reporting obligations. 

  

	4.7	 Licensed Product Claims. ENDO shall not (and shall cause its Affiliates and Representatives, including Sales Representatives, not to) make any medical or
promotional claim for the Licensed Product beyond the scope of the relevant Approval(s) then in effect in the Territory for the Licensed Product. ENDO may distribute information concerning the 

  

 22 

	 	 
Licensed Product or its use, including scientific articles, reference publications and healthcare economic information, in accordance with applicable Laws,
including section 401 of the FDA Modernization Act of 1997, and subject to regulatory review and approval of the JCC. 

  

	4.8	Sample Accountability Policies and Procedures. During the Term of this Agreement, all of ENDO’s Sales Representatives shall comply with the Sample Accountability
Policies and Procedures of ENDO, as updated by ENDO from time to time. ENDO shall provide to NOVARTIS copies of all such policies and procedures in effect as of the Execution Date, and any modifications thereto shall be delivered to NOVARTIS
promptly. The ENDO Sample Accountability Policies and Procedures, as in effect on the Execution Date, were sent by ENDO to NOVARTIS on March 4, 2008. 

  

	4.9	A&P Expenses. With respect to each Agreement Year during the Term of this Agreement, ENDO shall expend a minimum amount of annual A&P Expenses on the
Commercialization of the Licensed Product in the Territory as set forth below: 

 Minimum A&P Expenses Requirements 

  

									
	 Agreement
 Year 1
	  	 Agreement
 Year 2
	  	 Agreement
 Year 3
	  	 Agreement
 Year 4
	  	 Agreement
 Year 5 and
 Renewal Terms

	 $***
	  	$***	  	***% of prior Agreement Year’s Net Sales but not to exceed $***	  	***% of prior Agreement Year’s Net Sales but not to exceed $***	  	***% of prior Agreement Year’s Net Sales but not to exceed $***

 In the event that ENDO does not meet at least *** percent (***%) of its annual minimum
expenditures of A&P Expenses in Agreement Years 1 though 3 and *** percent (***%) in each Agreement Year thereafter during the Term, ENDO shall expend the amount of such shortfall on A&P Expenses in the first two Agreement Quarters of the
subsequent Agreement Year. If ENDO is able to satisfy the shortfall in the first two Agreement Quarters of the subsequent Agreement Year, it shall be deemed to have satisfied its A&P Expense obligation for the previous Agreement Year and shall
not be subject to any further penalties or obligations with respect thereto. In the event that ENDO does not meet at least the applicable percentage (as set forth above) of its annual minimum expenditures of A&P Expenses in two
(2) consecutive Agreement Years (including the cure periods associated with such years), each royalty rate tier set forth in Section 7.2(a) for the two (2) subsequent Agreement Years, including any Renewal Terms, shall be increased by
*** percent (***%); provided, however, that if any such subsequent Agreement Year is beyond the then-applicable Term of this Agreement, ENDO shall pay NOVARTIS, as its sole and exclusive remedy, in respect to such subsequent Agreement Year that is
beyond the then-applicable Term of this Agreement, an amount equal to *** percent (***%) of the Net Sales of the Licensed Product during the last Agreement Year during the Term. 
  

 23 

	4.10	Limitations to Minimum Detail and A&P Expense Requirements. ENDO’s obligations to perform the minimum Details set forth in Section 4.4(b) and to meet the annual
minimum A&P Expenses set forth in Section 4.9 are subject to adjustment as follows: 

  

	 	(i)	in the event of a Failure of Supply, ENDO shall not be obligated to perform the minimum number of Details or to meet the minimum A&P Expenses for the period of time of the
Failure of Supply, with the annual minimum Detail and A&P Expenses applicable to the Agreement Year in which the Failure of Supply occurs being reduced by *** for each day of the Failure of Supply. However, if the Failure of Supply continues for
a period in excess of ***, ENDO and NOVARTIS shall meet as promptly as possible and attempt, in good faith, to agree on additional reductions to ENDO’s future obligations with respect to the minimum number of Details and minimum A&P
Expenses. In the event the Parties are unable to agree, the matter shall be resolved in accordance with the Third Party Dispute Resolution Procedures set forth on Schedule 7.2(d); 

  

	 	(ii)	in the event of the Launch in the Territory of any Generic Diclofenac Product by any Person or OTC Equivalent Product by NOVARTIS or any of its Affiliates, ENDO shall no longer be
obligated to perform the minimum number of Details or to meet the minimum A&P Expenses for the remainder of the Term of this Agreement effective as of the date of such Launch, with the amount of minimum Details and A&P Expenses applicable to
the portion of the Agreement Year in which such event occurs preceding such event being reduced on a pro rated basis (based on the number of days preceding such event out of a 365 day year); 

  

	 	(iii)	in the event of the Launch in the Territory of any OTC Equivalent Product by any Third Party, and 

 (I) during the first six calendar months following such Launch (the “OTC Launch Six Month Reference Period”), Net Sales of the Licensed Product
have declined, as compared to Net Sales during the six calendar months immediately preceding such Launch, (x) by *** percent (***%) or more and less than *** percent (***%), ENDO’s minimum Detailing requirements and minimum A&P Expense
requirements shall thereafter be permanently reduced (subject to further reduction under clause (II) below) by *** percent (***%), or (y) by *** percent (***%) or more, ENDO shall no longer be obligated to perform the minimum number of Details
or to meet the minimum A&P Expenses for the remainder of the Term of this Agreement, in either case, effective as of the end of such OTC Launch Six Month Reference Period; or 
 (II) at the expiration of either of the first two three-calendar month periods (each, an “OTC Launch Three Month Reference Period”) after the
OTC Launch Six Month Reference Period, Net Sales for such OTC Launch Three Month Reference Period have declined, as compared to Net Sales during the three-calendar month period before such Launch, by *** percent (***%) or more, or at the last day of
such OTC Launch Three Month Reference Period, the 

  

 24 

 
number of “covered lives” eligible for third party reimbursement in respect to purchases of Licensed Product as referenced by the Managed Markets
Information Service in its most recent report have declined by *** percent (***%) or more as compared to the number of “covered lives” immediately prior to such Launch, ENDO shall no longer be obligated to perform the minimum number of
Details or to meet the minimum A&P Expenses for the remainder of the Term of this Agreement effective as of the end of the applicable OTC Launch Three Month Reference Period; and 
  

	 	(iv)	in the event that the trailing twelve (12) month Net Sales as of the last day of any month in calendar year 2010 or any subsequent calendar year are below *** dollars ($***)
and ENDO has met all prior minimum Detailing requirements, prior minimum A&P Expense requirements, and prior Guaranteed Minimum Royalty requirements (pursuant to Section 7), the minimum Detailing requirements, minimum A&P Expense
requirements and Guaranteed Minimum Royalty requirements for the applicable Agreement Year immediately following such year shall be reduced by the percentage equal to (x) *** dollars ($***) less actual Net Sales divided by (y) *** dollars
($***); provided, however, that in no event shall the minimum Detailing requirements, the minimum A&P Expense requirements or the Guaranteed Minimum Royalty requirements be reduced by more than *** percent (***%) insofar as such reduction
relates to this Section 4.10(iv). 

 Except as expressly set forth in this Agreement, minimum Details and A&P Expenses
shall not be reduced or limited for any reason. 
  

	4.11	Direct to Consumer Advertising. During the Term of this Agreement, ENDO shall determine whether or not to develop direct to consumer advertising (“DTC”) plans and
the execution thereof. ENDO shall coordinate with NOVARTIS regarding DTC advertising strategies and plans, but final decision making authority and the cost and expense associated with such DTC advertising shall be borne by ENDO. For the avoidance of
doubt, all Promotional Materials and use of Product Trademark and Product Brand Equity in connection with any DTC advertising shall be subject to approval by NOVARTIS. 

  

	4.12	Medical Science Liaisons. ENDO shall provide and direct all activities of MSLs for the Licensed Product and shall bear all costs related to MSLs. All activities under this
Section 4.12 shall comply with the NOVARTIS MSL Guidance Document attached as Schedule 4.12. 

  

	4.13	Managed Markets Field Activities; Costs. ENDO shall be solely responsible for all Managed Markets field activities for the Licensed Product in the Territory, at its sole cost
and expense. 

  

	4.14	Call Centers. NOVARTIS or an Affiliate thereof shall implement a call center for providing medical information services to hospitals, physicians, health care providers and
patients. NOVARTIS shall bear all costs related to the call center, subject to reimbursement in accordance with Section 6.6. 

  

 25 

	4.15	Commercialization Report. Within forty five (45) days following the end of each Agreement Quarter during the Term of this Agreement, ENDO shall provide to NOVARTIS and
the JCC a report (each, a “Commercialization Report”) summarizing in reasonable detail the material activities undertaken by ENDO in connection with the then-applicable Commercialization Plan, including the following on a quarterly and
Agreement Year-to-date basis: (i) total number of Details, providing separate numbers for Primary Details and total Details; (ii) total number of Details to Target Prescribers, providing separate numbers for Primary Details and total
Details; (iii) national level data for total prescriptions (TRx) and new prescriptions (NRx) within market definition for the Licensed Product; (iv) physician level data by specialty; (v) share of Voice data at least quarterly;
(vi) planned track data and/or Managed Market data at least quarterly; (vii) number of field based programs executed, any planned or executed medical education activities and communication plans (including press releases) and
(viii) A&P Expenses incurred. Notwithstanding the foregoing, during calendar year 2008, ENDO shall provide to NOVARTIS on a monthly basis such information with respect to its Commercialization activities under this Agreement as ENDO
provides to its management in the ordinary course of its business, an example of which is attached hereto as Schedule 4.15. Furthermore, for six (6) months immediately following Launch by ENDO or any Affiliate thereof of a ***, ENDO will make
available to NOVARTIS on a monthly basis any management report with respect to such Launch as ENDO typically generates with respect to such activities. Notwithstanding the foregoing, nothing in this Section 4.15 shall obligate ENDO to provide
any information to NOVARTIS that it does not provide to its own management in the ordinary course of ENDO’s business. All information included in such reports provided by ENDO pursuant to this Section 4.15 shall constitute ENDO
Confidential Information. 

  

	4.16	Pricing; Booking of Sales; Distribution; Diversion. 

  

	 	(a)	ENDO shall have the sole right and responsibility to determine pricing for Licensed Product sold in the Territory. 

  

	 	(b)	ENDO shall have the sole right and responsibility to record, fill orders and perform related services (such as all aspects of order processing, invoicing and collection) for all
sales of the Licensed Product in the Territory. Notwithstanding any other provision of this Agreement to the contrary, ENDO hereby agrees that it shall not include or bundle Licensed Product as part of a multiple product offering with any other
products or services, except with the prior written consent of NOVARTIS. 

  

	 	(c)	ENDO shall have the sole right and responsibility to warehouse and distribute the Licensed Product. 

  

	 	(d)	 ENDO is prohibited from selling any topical gel product containing one percent (1%) diclofenac outside of the Territory and NOVARTIS is prohibited from selling
any topical gel product containing one percent (1%) diclofenac 

  

 26 

	 	 
(other than a Line Extension, subject to Section 10.1, or any OTC Equivalent Product, subject to Section 9.1) inside of the Territory. ENDO shall
use commercially reasonable efforts to ensure that the Licensed Product is not sold to known diverters and NOVARTIS shall use commercially reasonable efforts to ensure that any Rx topical gel product containing one percent (1%) diclofenac
(other than a Line Extension, subject to Section 10.1, or any OTC Equivalent Product, subject to Section 9.1) is not sold to known diverters. In furtherance of the foregoing, ENDO agrees to use procedures to prevent diversion of the
Licensed Product, and NOVARTIS agrees to use procedures to prevent diversion of any NOVARTIS topical gel product containing one percent (1%) diclofenac (other than a Line Extension, subject to Section 10.1, or any OTC Equivalent Product,
subject to Section 9.1), in each case which are no less stringent than procedures generally used on their respective other products. 

 SECTION 5 
 MANUFACTURE AND SUPPLY 
  

	5.1	Engagement. During the Term and subject to the terms and conditions set forth herein, ENDO hereby agrees to purchase all of its requirements for Licensed Product from
NOVARTIS, and NOVARTIS agrees to manufacture, supply and sell to ENDO, all of ENDO’s orders for Licensed Product which ENDO submits to NOVARTIS from time to time and which NOVARTIS accepts in accordance with Section 5.4.

  

	5.2	Warranty. All Licensed Product supplied by NOVARTIS to ENDO hereunder shall, at the time it is delivered to the carrier by NOVARTIS at the NOVARTIS Warehouse (as defined in
Section 5.5(b) below), (a) comply with the Specifications, (b) be consistent, as applicable, with the Licensed Product NDA, and (c) have been manufactured in a facility and in a manner compliant with GMP Requirements and all
applicable Laws. 

  

	 5.3
	 Forecasts; Maximum and Minimum Purchases. In order to assist NOVARTIS in the planning of production runs for
Licensed Product, ENDO will, at least thirty (30) days in advance of the commencement of each calendar month during each Agreement Year, provide NOVARTIS with a twelve (12) month (or such number of months remaining in the Term) rolling
production forecast (the “Rolling Forecast”) of the quantities of Licensed Product that ENDO estimates it will order during such period. The Rolling Forecast shall be updated by ENDO monthly by the tenth (10th) Business Day of the first month covered by the Rolling Forecast. The current month and the subsequent four (4) months (or such lesser number of
months remaining in the Term) of each such Rolling Forecast, as so updated, for Licensed Product will be binding (the “Binding Forecast”) on ENDO and NOVARTIS. ENDO shall purchase or pay for, in each case, in accordance with this
Agreement, all Licensed Product covered by each Binding Forecast. The forecast for any month included within the Binding Forecast may not be changed in any subsequent forecast without prior NOVARTIS approval. ENDO will forecast Licensed Product by
number of lots. Each forecast will be made by ENDO in good faith, taking into account reasonable projections of requirements for Licensed Product. 

  

 27 

	 	 
Notwithstanding the foregoing, for each Binding Forecast, the aggregate forecasted quantities of Licensed Product will not be more than the greater of
(A) ten percent (10%) or (B) one (1) lot, over or under the forecasted amounts, as set forth in the immediately preceding Binding Forecast delivered hereunder. 

  

	5.4	Orders. 

  

	 	(a)	ENDO will place orders by way of written purchase orders for Licensed Product at least twelve (12) weeks in advance of ENDO’s requested dates for delivery at the Delivery
Location, with the exception of the initial new production order which will require twenty (20) weeks due to the need to acquire packaging components and active pharmaceutical ingredients. Each purchase order will specifically refer to this
Agreement and will specify the amount of Licensed Product ordered, the requested delivery date (subject to the immediately preceding sentence), the transportation method and carrier and any special instructions requested. The minimum size of any
order of Licensed Product placed by ENDO will be one (1) lot and orders for Licensed Product will be in full lot increments and will specify presentation. In addition, with respect to a given month, ENDO shall not, without NOVARTIS’
approval, submit purchase orders for Licensed Product that aggregate more than one (1) lot over the forecasted amounts for such month contained in the most recent Binding Forecast delivered hereunder, and, in any event, shall not submit orders
for Licensed Product that exceed NOVARTIS maximum supply capacity unless prior written approval is received from NOVARTIS. NOVARTIS’ maximum supply capacity for calendar year 2008 is set forth on Schedule 5.4(a). NOVARTIS shall provide an
updated maximum supply capacity chart to ENDO at the beginning of each subsequent calendar year throughout the Term of the Agreement. ENDO shall not submit any purchase orders with respect to any month beyond the Term. 

  

	 	(b)	The purchase orders will be delivered to such location as NOVARTIS designates in writing to ENDO from time to time. Each purchase order will be deemed received on the date that
NOVARTIS actually receives the relevant purchase order. 

  

	 	(c)	NOVARTIS will accept all purchase orders that comply with this Section 5 and the applicable Binding Forecast. NOVARTIS may reject any purchase order that does not comply with
this Section 5.4 and the applicable Binding Forecast. Purchase orders will be accepted via formal written acknowledgement by NOVARTIS to ENDO. Acknowledgment will be sent to ENDO within ten (10) Business Days from NOVARTIS’ receipt of
the purchase order, if NOVARTIS accepts the purchase order. If acknowledgment accepting the purchase order is not received by ENDO, NOVARTIS and ENDO will cooperate in good faith to resolve promptly the issues that give rise to the basis for
NOVARTIS’ rejection thereof. Any purchase order accepted by NOVARTIS in accordance with the foregoing shall constitute a “Firm Order.” 

  

 28 

	 	(d)	NOVARTIS will supply Licensed Product pursuant to each Firm Order accepted in a timely manner, subject to Sections 5.5(a) and 5.7; provided, that each Firm Order will be deemed to
have been fully satisfied, as to quantity, if the quantity of Licensed Product actually delivered to ENDO is equal to or greater than ninety percent (90%) of the quantity of Licensed Product set forth in the relevant Firm Order; provided,
further that NOVARTIS will use commercially reasonable efforts to supply one hundred percent (100%) of the quantity of Licensed Product ordered. 

  

	 	(e)	Immediately upon execution of this Agreement, ENDO will submit a purchase order, in the manner set forth in this Section 5.4, for all current and planned for in production
inventory of 20 gram samples and 100 gram finished stock and packaging components purchased to support Launch quantities as outlined in Schedule 5.4(e). Such Purchase Order shall constitute a Firm Order hereunder. 

  

	 	(f)	Except for initial inventory ordered pursuant to Section 5.4(e), ENDO shall not be required to take receipt at NOVARTIS’ Warehouse of a lot of Licensed Product with less
than *** months of expiry or *** percent (**%) of the original shelf life (rounded up to the nearest whole month), whichever is greater; provided that ENDO and NOVARTIS may nonetheless negotiate in good faith for ENDO to purchase any such lot.

  

	5.5	Delivery. 

  

	 	(a)	NOVARTIS will supply Licensed Product to ENDO pursuant to Firm Orders placed by ENDO and accepted by NOVARTIS, in each case, in accordance with the terms of this Agreement. Delivery
dates as set forth in any Firm Order will be deemed to be estimated only until NOVARTIS confirms acceptance of the order in writing in accordance with Section 5.4(c). NOVARTIS shall deliver with each such shipment a Certificate of Analysis in
the form attached hereto as Schedule 5.5(a), signed by an authorized employee of NOVARTIS stating that the relevant shipment of Licensed Product meets the Specifications and other customary documentation, including a bill of lading and packing list.

  

	 	(b)	The terms of delivery for the Licensed Product shall be FCA Origin NOVARTIS’ Wehr, Germany manufacturing or warehousing facility (the “NOVARTIS Warehouse”).

  

	 	(c)	 ENDO will reimburse NOVARTIS for all related freight, insurance charges, taxes, import and export duties, inspection fees and other charges applicable to the sale
and transport of Licensed Product purchased by ENDO, as well as costs of transportation and loss of Licensed Product due to damage or destruction occurring at any time after the Licensed Product has been delivered to the common carrier mutually
selected by the Parties at the NOVARTIS Warehouse. NOVARTIS will provide ENDO with an itemized list of charges. Upon receipt of the Licensed Product from NOVARTIS, the designated common carrier, as licensee of ENDO with respect to delivery of the
Licensed Product from the NOVARTIS Warehouse to ENDO’s designated distribution center in Memphis, Tennessee or other 

  

 29 

	 	 
location designated by ENDO (the “Delivery Location”), shall conduct a visual inspection for any external physical damage to the goods delivered by
NOVARTIS before transport to the Delivery Location. Title to and risk of loss of or damage to Licensed Product shall remain with NOVARTIS and pass to ENDO only upon delivery to the common carrier at the NOVARTIS Warehouse. All shipments shall be
accompanied by appropriate transportation and other agreed upon documentation. 

  

	 	(d)	All units of Licensed Product supplied to ENDO hereunder shall be properly prepared for safe and lawful shipment and shall be supplied in finished for sale form, which are sealed in
sales unit packages and contained in outer shipping containers ready for sale. Any change in packaging for Licensed Product may be requested by ENDO, and NOVARTIS shall use its commercially reasonable efforts to accommodate the request, provided,
that (i) any proposed packaging change shall comply with Applicable Law and NOVARTIS standard operating procedures, as in effect and disclosed to ENDO from time to time, (ii) all Licensed Product packaged in existing packaging material is
first purchased by ENDO prior to implementing any packaging change, and (iii) ENDO shall fully reimburse NOVARTIS for all direct and indirect costs (including materials and labor) of implementing the packaging change, including the cost of
obsolescence of existing stocks and raw materials, equipment and increased production costs going forward (within a budget that ENDO has previously reviewed and approved). Any change in packaging may be requested by NOVARTIS (including changes
requested by appropriate personnel in the NOVARTIS Warehouse), subject to the approval of ENDO, such approval not to be unreasonably withheld or delayed and the cost of which will be borne by NOVARTIS. Until new trade dress for the Licensed Product
has been approved and can be reasonably implemented (as mutually agreed by the Parties pursuant to an implementation plan), ENDO will accept all of NOVARTIS’ inventory on hand and supply in production in their current trade dress.

  

	5.6	Raw Materials. NOVARTIS will be entitled to order sufficient quantities of long lead time components, including raw materials, to meet ENDO’s Binding Forecasts. NOVARTIS
will use commercially reasonable efforts to order and obtain such long lead time components (raw materials) to enable it to manufacture and supply Licensed Product to ENDO pursuant to this Agreement. Any obsolescence costs and disposal fees
occurring as the result of any forecast, labeling or packaging changes will be the responsibility of ENDO, except as provided in Section 5.5(d). 

  

	5.7	Standard of Performance. Notwithstanding anything to the contrary contained in this Agreement, NOVARTIS’ obligation to supply Licensed Product in response to a Firm
Order will be to use the same diligence in its efforts to manufacture and supply such Licensed Product to ENDO pursuant to this Agreement that NOVARTIS uses to manufacture and supply like product for itself and its Affiliates.

  

 30 

	5.8	Quality Assurance. 

  

	 	(a)	Non-Conforming Licensed Product. NOVARTIS will, at its expense, arrange for all Licensed Product which does not comply with the warranties in Section 5.2 (the
“Licensed Product Warranties”) to be destroyed in accordance with applicable Laws and NOVARTIS policy. Notwithstanding any other provisions of this Agreement, ENDO agrees, if so requested by NOVARTIS in writing, to return to NOVARTIS, at
NOVARTIS’ expense, any such Licensed Product. 

  

	 	(b)	Rejection of Delivered Licensed Product. Within twenty (20) days following delivery of Licensed Product to the Delivery Location in accordance with Section 5.5(c)
above, ENDO may perform or cause to be performed such samplings and tests using validated and compendial test methods described in the Licensed Product NDA to determine whether Licensed Product meets the Specifications and the Licensed Product
Warranties. Licensed Product may be rejected solely for failure to meet the Specifications and Licensed Product Warranties, and/or for failure to meet the requirements set forth in Section 5.4(f), in each case, at the time of delivery to the
common carrier at the NOVARTIS Warehouse. Any Licensed Product not rejected by ENDO within such twenty (20) day period or, in the case of latent defects in the Licensed Product, within thirty (30) days from the date that ENDO actually
discovers defects in the Licensed Product, will be deemed accepted by ENDO; provided that such time period shall be extended in the event ENDO had not timely received all necessary documentation related to the shipment of such Licensed
Product and notifies NOVARTIS. If ENDO wishes to reject Licensed Product (the “Rejected Products”), ENDO will (i) within such twenty (20) day period, notify NOVARTIS of its rejection of the Licensed Product and the reason
therefor or (ii) within thirty (30) days from the date that ENDO actually discovers defects (in the case of latent defects) in the Licensed Product, notify NOVARTIS of its rejection of the Licensed Product and the reason therefor (each
notice referred to in clause (i) and (ii), a “Notice of Rejection”). In the event that ENDO rejects delivery of Licensed Product, NOVARTIS shall have thirty (30) days following receipt of a Notice of Rejection to confirm or
object to such Notice of Rejection. In the event that NOVARTIS confirms (or is deemed to have confirmed) a Notice of Rejection, as ENDO’s sole and exclusive remedy for such non-conforming product, NOVARTIS will either replace the Rejected
Products or pay over to ENDO the replacement cost of the Rejected Products (assuming that such Rejected Products had been fully conforming). 

  

	 	(c)	 Disputed Products. If NOVARTIS timely objects to a Notice of Rejection, an independent laboratory which is acceptable to both Parties will test the Rejected
Products in dispute (the “Disputed Product”) using the validated and compendial test methods set forth in the Licensed Product NDA and any other applicable GMP test method used by NOVARTIS at the time the Disputed Product was manufactured,
all of which test methods will be validated. If such laboratory finds that the Disputed Product meets the Specifications, ENDO will pay the fees of such laboratory related to such testing and validation of testing and will promptly pay for the
Disputed Product and reimburse all 

  

 31 

	 	 
amounts paid by NOVARTIS to ENDO with respect to such Disputed Product pursuant to Section 5.8(b). If such laboratory finds that the Disputed Product
fails to meet the Specifications, NOVARTIS will pay the fees of such laboratory related to such testing and validation of testing and will promptly provide a refund or replace the Disputed Product in each case in accordance with Section 5.8(b)
above. Both Parties agree to accept and be bound by the findings of such independent laboratory. 

  

	5.9	Pricing and Payments. 

  

	 	(a)	Prices. The prices payable by ENDO for Licensed Product purchased hereunder are set forth below and will be subject to adjustment as provided in Section 5.9(b):

  

				
	 Size
	  	Price Per Tube
	 100 grams
	  	$	***
	 Sample (20 grams)
	  	$	***

  

	 	(b)	Purchase Price Adjustments. 

  

	 	(i)	The prices for Licensed Product as set forth in Section 5.9(a) above will be modified at the commencement of each Agreement Year after Agreement Year 1 as set forth in this
Section 5.9(b). The price for each Agreement Year after Agreement Year 1 will be determined by multiplying the applicable price set forth above by a fraction, the denominator of which will be the Producer Price Index Figure published on or
nearest to January 1, 2008, and the numerator of which will be the Producer Price Index Figure published on or nearest to the first day of the Agreement Year for which the price is being determined (as so adjusted from time to time, the
“PPI Adjusted Purchase Price”). 

  

	 	(ii)	The PPI Adjusted Purchase Price shall be subject to increase in the event that NOVARTIS experiences any documented increase of more than *** in the cost of any raw materials
(including active pharmaceutical ingredient), packaging or other Licensed Product components used in the manufacture of Licensed Product; provided, however, that the PPI Adjusted Purchase Price shall only be increased to the extent that raw material
price increases exceed, in the aggregate, all increases in the Producer Price Index Figure since the Execution Date of the Agreement. Correspondingly, the PPI Adjusted Purchase Price shall be subject to decrease in order to reflect any change in
production cost for Licensed Product as a result of the decrease in the cost of any raw materials (including active pharmaceutical ingredient, packaging or other Licensed Product components). NOVARTIS shall, at ENDO’s request, provide
reasonable documentation evidencing such changes in production costs. 

  

 32 

	 	(c)	Taxes, etc. ENDO will bear the cost of any taxes, levies, duties or fees of a similar kind, nature or description whatsoever applicable to the sale and transportation of
Licensed Product sold by NOVARTIS to ENDO hereunder (other than taxes in the nature of franchise or income taxes of NOVARTIS), and ENDO will pay to NOVARTIS all such sums within thirty (30) days of receipt of demand for payment by NOVARTIS.

  

	 	(d)	Separate Sale. Each shipment of Licensed Product to ENDO will constitute a separate sale, obligating ENDO to pay therefor, whether said shipment is in whole or only partial
fulfillment of any order or confirmation issued in connection therewith. 

  

	5.10	Regulatory Matters; Records. 

  

	 	(a)	Inspections. NOVARTIS will be responsible for handling and responding to any FDA or other Governmental Entity audits or inspections with respect to the manufacture of
Licensed Product hereunder. To the extent NOVARTIS requires the assistance of ENDO in connection with any such audit or inspection, ENDO agrees to cooperate and assist NOVARTIS. 

  

	 	(b)	Reporting. NOVARTIS will be responsible for any reporting of matters regarding the manufacture of Licensed Product hereunder to the FDA or other Governmental Authority.
NOVARTIS will advise ENDO of any occurrences or information that arises out of the manufacturing activities of NOVARTIS or its contractors that have or could reasonably be expected to have adverse regulatory compliance or reporting consequences
concerning Licensed Product. 

  

	 	(c)	Recalls. 

  

	 	(i)	Recalls. Each of the Parties agrees to maintain or cause to be maintained such traceability records as are necessary to permit a recall, withdrawal, field alert or field
correction of Licensed Product. In the event NOVARTIS believes that it is required to initiate a recall, field alert, withdrawal or field correction with respect to any Licensed Product provided under this Agreement, NOVARTIS will immediately notify
ENDO in writing. In the event that ENDO believes that a recall, field alert, withdrawal, or field correction is necessary for Licensed Product provided under this Agreement, ENDO will immediately notify NOVARTIS. Determination of a voluntary recall,
field alert, withdrawal, or field correction shall be made by NOVARTIS in its sole discretion following reasonable, in light of the circumstances, consultation with and consideration of ENDO’s views. 

  

	 	(ii)	 Cost of Recall. In the event that any Licensed Product supplied hereunder is recalled or quarantined, or is subject to stop-sale action, whether voluntary or
by governmental action, it is agreed and understood that any 

  

 33 

	 	 
expenses of such action, including administrative costs, reasonable fees of any experts or attorneys that may be utilized by either Party, and any government
fines or penalties related to such recall, quarantine or stop-sale (“Recall Expenses”) will be borne by the Party upon whose act or omission is the cause of the recall, quarantine or stop-sale action. 

  

	5.11	Alternate Supply. In the event that NOVARTIS is unable to supply Licensed Product to ENDO in accordance with Section 5, NOVARTIS shall use commercially reasonable
efforts to identify and qualify an alternate supplier capable of supplying Licensed Product on substantially the same terms and conditions set forth herein, which may or may not be NOVARTIS’ *** manufacturing facility, for the period that
NOVARTIS is unable to supply the Licensed Product. During any such period in which an alternate source of supply is being provided through a Third Party, NOVARTIS’ obligations under this Section 5 shall be suspended. Within a reasonable
time after the Execution Date, NOVARTIS shall use commercially reasonable efforts to cause its manufacturing facility in *** to be qualified. 

  

	5.12	Allocation of Licensed Product. In the event that NOVARTIS, subject to the terms and conditions of this Agreement, manufactures any 1% diclofenac gel product for use or
distribution outside of the Territory, and without limiting NOVARTIS’ obligations under this Agreement and ENDO’s rights to enforce such obligations as set forth herein, in the event of a prospective shortage of capacity, NOVARTIS shall
use commercially reasonable efforts to cause its manufacturing Affiliate to reasonably allocate, based on historical and forecasted needs, quantities of all 1% diclofenac gel product among ENDO, NOVARTIS, NOVARTIS Affiliates and any other Person
that has licensed any 1% diclofenac gel product from NOVARTIS outside of the Territory. 

  

	5.13	Safety Stock. In order to prepare for any Licensed Product shortfall due to any Failure of Supply as contemplated by this Agreement, ENDO shall maintain at the Delivery
Location safety stock of Licensed Product in a minimum amount equal to *** weeks of prospective customer demand based on the then-applicable Rolling Forecast, which amount may be adjusted from time to time upon the mutual agreement of NOVARTIS and
ENDO based upon historical experience and performance. 

 SECTION 6 
 REGULATORY AFFAIRS 
  

	6.1	 Regulatory Affairs. Notwithstanding any other provision of this Agreement, NOVARTIS shall retain exclusive authority and responsibility for all interactions
with Governmental Authorities and other Persons with regard to all regulatory matters relating to the Licensed Product, including obtaining, maintaining and updating the Licensed Product NDA and product labeling as required by applicable Law.
Without limiting the foregoing, NOVARTIS shall retain exclusive authority and responsibility for: (i) filing all supplement and Approval Applications and supporting documentation necessary for obtaining Approvals or otherwise complying with
applicable Law; (ii) all contacts with Governmental Authorities responsible for 

  

 34 

	 	 
granting such Approvals; (iii) reporting of any adverse drug reactions to such Governmental Authorities; and (iv) controlling any disputes or legal
proceedings regarding the regulatory status of the Licensed Product. NOVARTIS shall promptly submit all applicable materials, including Promotional Materials, prepared or required to be prepared by ENDO to the DDMAC. ENDO and its Affiliates shall
cooperate and provide to NOVARTIS and its Affiliates any assistance reasonably required by NOVARTIS or its Affiliates in connection with its obligations under this Section 6.1. 

  

	6.2	Complaints Regarding Licensed Product. Licensed Product complaint reports received by ENDO which are not deemed to be an Adverse Event shall be reported to NOVARTIS within
thirty (30) days of receipt by ENDO. Licensed Product complaint reports received by NOVARTIS which are not deemed to be an Adverse Event shall be reported to ENDO within thirty (30) days of receipt by NOVARTIS. ENDO also will provide a
written response on each complaint to each complainant with a simultaneous copy to NOVARTIS to the extent such complaint relates to the manufacture of Licensed Product by NOVARTIS hereunder, to the extent required by applicable Law.

  

	6.3	Adverse Event Reporting; Cooperation. ENDO agrees to provide to NOVARTIS all reasonable assistance and take all actions reasonably requested by NOVARTIS that are necessary to
enable NOVARTIS to comply with any Law applicable to the Licensed Product and any conditions or obligations relating to any Approval, including NOVARTIS’ meeting of its reporting and other obligations under Section 6.1. Such assistance and
actions shall include execution of and compliance with the Pharmacovigilance Agreement to be negotiated in good faith and reasonably acceptable to the Parties within sixty (60) days of the Execution Date. The Pharmacovigilance Agreement will
supersede any Adverse Event provisions in this Agreement. 

 ENDO shall forward to NOVARTIS any information, including, but not
limited to, initial and follow up reports, that becomes known to ENDO from any source in any form relating to any Adverse Event or any Adverse Event with an associated product quality complaint for the Licensed Product as soon as it becomes
available, but in any event within twenty-four (24) hours of becoming aware of such information, by transmitting it to the Customer Relationship Center at 1-800-452-0051. The Customer Relationship Center is available 24 hours per day, 7 days
per week. 
 ENDO shall notify NOVARTIS of any communication received from any Governmental Authority relating to any Adverse Event or other
safety issue for the Licensed Product, within twenty-four (24) hours of receiving such communication, by transmitting any written communication documentation and a written synopsis of any oral communication to NOVARTIS’ Global Head, Drug
Safety and Pharmacovigilance 
  

	6.4	Ownership. Notwithstanding any other provision of this Agreement, all Approval Applications and Approvals relating to the Licensed Product shall be owned by NOVARTIS or its
Affiliates. Any such Approval Applications, Approvals, supporting documentation and data shall be treated by the Parties as Confidential Information of NOVARTIS. 

  

 35 

	6.5	Regulatory Notification; Notification to ENDO of FDA Meetings. Each Party shall notify the other Party promptly upon receiving any regulatory communication from the FDA or
any other Governmental Authority, with respect to any: (i) substantial safety or efficacy issue with respect to the Licensed Product; (ii) advertising or promotional claims with respect to the Licensed Product; or (iii) labeling with
respect to the Licensed Product. NOVARTIS shall notify ENDO in the event that NOVARTIS has any major meeting (such as an end of Phase II meeting) with the FDA with respect to obtaining OTC Equivalent Product approval in respect of the Licensed
Product or the Development and/or Commercialization of any OTC Equivalent Product, conducting studies for new indications with respect to the Licensed Product, Line Extensions in relation to the Licensed Product and/or Development and/or
Commercialization of any Generic Diclofenac Product, or files for any Approval with respect to the foregoing. 

  

	6.6	Support Costs. ENDO shall reimburse NOVARTIS for the cost of fully dedicated incremental support for all regulatory and medical affairs related to the Licensed Product at the
FTE Rate. The actual number of FTEs shall be determined by NOVARTIS and reviewed and approved by ENDO; provided, however, the number of FTEs shall not exceed *** in any Agreement Year. 

 SECTION 7 
 COMPENSATION 

 In addition to the other obligations of ENDO hereunder, ENDO shall pay the NOVARTIS Parties the amounts set forth in this Section 7
as consideration for the rights granted to ENDO under this Agreement. 
  

	7.1	Up-Front Payment. ENDO shall pay ***, for a total of EIGHTY FIVE MILLION Dollars ($85,000,000) within one (1) Business Day following the Execution Date (the
“Upfront Payment”). The Upfront Payment and the royalty payments set forth in Section 7.2 to *** shall be in consideration for the license of the *** Technology and the Product Trademark granted to ENDO in accordance with this
Agreement. The Upfront Payment to *** shall be in consideration for the license of the *** Technology and the Promotional Materials developed by *** for the Launch of the Licensed Product. The Upfront Payment shall be non-refundable, non-recoupable
and non-creditable against any other amounts payable hereunder. 

  

	7.2	Royalties. 

  

	 	(a)	Royalty Rates. ENDO shall pay royalties to NOVARTIS AG on annual Net Sales of Licensed Product by ENDO, its Affiliates and their respective permitted sublicensees at the
applicable rates set forth below. 

  

 36 

				
	 Aggregate Annual Net Sales of Licensed Product during any Agreement Year
	  	Royalty Rate	 
	 The Portion of annual Net Sales less than $150 million in each of Agreement Years 1-2 and the first three Agreement Quarters of Agreement Year
3
	  	0	%
	 The Portion of annual Net Sales less than $*** million in the fourth Agreement Quarter of Agreement Year 3
	  	***	%
	 The Portion of annual Net Sales less than $*** million in each of Agreement Years 4 and thereafter
	  	***	%
	 The Portion of annual Net Sales between $*** million and $*** million
	  	***	%
	 The Portion of annual Net Sales between $*** million and $*** million
	  	***	%
	 The Portion of annual Net Sales over $*** million
	  	***	%

 The first *** of royalties due in an Agreement Year shall be due and owing to NOVARTIS, but may be paid by ENDO to
***, as agent for NOVARTIS for this limited purpose. 
  

	 	(b)	Guaranteed Minimum Royalties. (i) ENDO shall pay to NOVARTIS AG the following amounts as guaranteed minimum annual royalty payments (“Guaranteed Minimum
Royalties”): 

  

				
	 Agreement Year
	  	Guaranteed
Amount
	 Year 1
	  	$	0
	 Year 2
	  	$	0
	 Year 3
	  	$	0
	 Year 4
	  	$	***
	 Year 5
	  	$	***
	 Each Renewal Term
	  	$	***

 (ii) Guaranteed Minimum Royalties shall be applied against royalty payments on an Agreement Year
basis such that ENDO’s obligation with respect to each Agreement Year is to pay the greater of (i) royalties payable pursuant to Section 7.2(a) or (ii) the Guaranteed Minimum Royalty for such Agreement Year. In furtherance
thereof, with 

  

 37 

 
respect to each Agreement Quarter, ENDO shall pay NOVARTIS AG an amount equal to (A) the greater of (1) Section 7.2(a) royalties calculated on
an Agreement Year-to-date basis or (2) the Guaranteed Minimum Royalty for such Agreement Year-to-date period (applying ***% of the Guaranteed Minimum Royalty for such Agreement Year to each Agreement Quarter) minus (B) all royalties
previously paid for that Agreement Year (or if such amount is a negative number, there will be no royalty payment due). 
  

	 	(c)	Royalty Reports and Payments. Within forty-five (45) days after each Agreement Quarter during the Term of this Agreement, ENDO will provide to NOVARTIS a written report
showing each of: (a) the actual Net Sales of the Licensed Product during such quarter by ENDO, its Affiliates and permitted sublicensees (including gross sales and deductions taken to calculate Net Sales), (b) the portion of the Guaranteed
Minimum Royalty applicable to such quarter, (c) the royalties which accrued under Section 7.2(a) with respect to such Net Sales (“Actual Royalties”) and the basis of calculating such Actual Royalties, and (d) the amount due
in accordance with Section 7.2(b)(ii) for such Agreement Quarter. Such report shall be accompanied by payment of the amount owed for such Agreement Quarter in accordance with Section 7.2(b)(ii). If any error in the calculation of Net Sales
in accordance with this Agreement or other adjustment, discount, credit or rebate in the calculation of Net Sales in accordance with this Agreement results in an adjustment (up or down) in the amount of royalties due, the amount of such adjustment
shall be reflected in the next royalty payment; provided, that if this Agreement is no longer in effect, the applicable Party shall pay to the other Party the amount of such adjustment promptly following written notice thereof. ENDO shall notify
NOVARTIS within thirty (30) days after it agrees to any increase in distribution commissions/fees referred to in clause (x) of the definition of Net Sales in Section 1.75. 

  

	 	(d)	Certain Adjustments. The obligation to make Guaranteed Minimum Royalty payments is absolute and such payments shall be non-refundable, except as follows:

  

	 	(i)	in the event of any failure of NOVARTIS to fulfill Firm Orders for Licensed Product in accordance with Section 5 resulting in a Licensed Product “out of stock” such
that ENDO has no inventory of Licensed Products on hand in any of its distribution centers or warehouses for *** consecutive days during any Agreement Year, provided, that for purposes of this Section 7.2(d)(i), Firm Orders shall be deemed
fulfilled upon delivery of the applicable shipment of Licensed Product to the designated common carrier at the NOVARTIS Warehouse (“Failure of Supply”), and such out of stock is not attributable to a Force Majeure, then the Guaranteed
Minimum Royalty for such Agreement Year shall be reduced by an amount equal to the result obtained by the following equation: (i) the Guaranteed Minimum Royalty divided by *** multiplied by (ii) *** times the number of days during the
Failure of Supply in excess of such *** day period; 

  

 38 

	 	(ii)	in the event a Failure of Supply continues for a period in excess of *** days, ENDO and NOVARTIS shall meet as promptly as possible and attempt, in good faith, to agree on
additional reductions to ENDO’s future obligations hereunder, including Guaranteed Minimum Royalties to the extent necessary to appropriately reflect the impact on Net Sales of the Licensed Product, if any, caused directly by such Failure of
Supply, and appropriate reductions in minimum Details and minimum A&P Expenses based thereon. In the event the Parties are unable to agree, the matter shall be resolved in accordance with the Third Party Dispute Resolution Procedures;

  

	 	(iii)	in the event of the Launch in the Territory of any *** Product by any Person or ***, then the obligation to pay Guaranteed Minimum Royalties shall terminate for the remainder of the
Term of the Agreement effective as of the date of such Launch, with the amount of Guaranteed Minimum Royalties applicable to the portion of the Agreement Year in which such event occurs preceding such event being reduced ***;

  

	 	(iv)	in the event of the Launch in the Territory of any OTC Equivalent Product by any Third Party, 

 (I) the obligation to pay Guaranteed Minimum Royalties shall be reduced by *** percent (***) for the remainder of the Term of the Agreement (except as
set forth below) effective as of the date of such Launch; 
 (II) if at the expiration of the OTC Launch Six Month Reference Period, Net
Sales of the Licensed Product have not declined by at least *** percent (***%) as compared to Net Sales during the *** calendar month before such Launch, the obligation to pay Guaranteed Minimum Royalties at the rate set forth in Section 7.2(b)
shall be permanently (except as set forth below) restored and any reduced Guaranteed Minimum Royalty paid by ENDO under clause (I) shall be paid to NOVARTIS, if applicable, within thirty (30) days; 
 (III) if at the expiration of either of the OTC Launch Three Month Reference Periods, Net Sales for such OTC Launch Three Month Reference Period have
declined, as compared to Net Sales during the three calendar month period before such Launch, by *** percent (***%) or more, or if at the last day of such OTC Launch Three Month Reference Period the number of “covered lives” eligible for
third party reimbursement in respect to purchases of Licensed Product as referenced by the Managed Markets Information Service in its most recent report have declined by *** percent (***%) or more as compared to the number of “covered
lives” immediately prior to such Launch, ENDO shall no longer be obligated to pay any Guaranteed Minimum Royalties for the remainder of the Term of the Agreement effective as of the end of the applicable OTC Launch Three Month Reference Period
and ENDO shall not be obligated to repay any amount referred to in clause (II); and 
  

 39 

	 	(v)	as provided in Section 4.10(iv). 

 Except as expressly
set forth in this Agreement, Guaranteed Minimum Royalties shall not be reduced, limited, recouped or credited for any reason. 
  

	7.3	Sales Milestone. ENDO shall pay NOVARTIS AG a non-refundable, non-recoupable, non-creditable sales milestone of $25,000,000 upon the first achievement of Agreement Year Net
Sales in excess of $300,000,000. The above sales milestone, if payable, shall be payable only once. If payable, payment of the above sales milestone shall be due to NOVARTIS AG within forty-five (45) days after the end of the Agreement Quarter
in which the milestone was reached. 

 SECTION 8 
 DEVELOPMENT OF THE LICENSED PRODUCT AND NEW INDICATIONS 
  

	8.1	Development. 

  

	 	(a)	Licensed Product. NOVARTIS shall be solely responsible for all Development of the Licensed Product, at its discretion, subject to Section 8.3. NOVARTIS is under no
obligation to conduct any Development of the Licensed Product, other than Required Phase IV Studies. ENDO and its Affiliates shall not, directly or through any Third Party, initiate, sponsor, fund or otherwise conduct any clinical study or
Development activities with respect to the Licensed Product, except as otherwise permitted by this Section 8. ENDO shall cooperate and provide to NOVARTIS any assistance reasonably required by NOVARTIS in connection with Development of the
Licensed Product. 

  

	 	(b)	Development by ENDO. Notwithstanding Section 8.1(a), ENDO shall be entitled to conduct clinical studies with respect to the Licensed Product, provided that it
pays all Development Costs related thereto and conducts any such study in accordance with a Development Plan submitted for review and approval of the JCC. The JCC shall be entitled to reject any proposed clinical study if, among other reasons, such
study may have an adverse impact on the Development or Commercialization of the Licensed Product, any Line Extension, any OTC Equivalent Product or any other new indication study. The Field shall be expanded to include any approved new indications
for the Licensed Product in the Territory based on the results of such clinical studies. NOVARTIS shall have full access and reference rights on an exclusive basis to clinical studies and related Technology to enable NOVARTIS to effect an OTC Switch
and to Commercialize the resulting OTC Product. 

  

	 	(c)	 New Indications Developed by NOVARTIS. In addition, in the event that NOVARTIS proposes to Develop the Licensed Product for use in an indication outside the
Field and ENDO pays for the Development Costs incurred or to be incurred by or on behalf of NOVARTIS in order to obtain FDA Approval for such new indication in accordance with the allocations and limitations set forth in Section 8.3, then, upon
Approval by the FDA of such new indication 

  

 40 

	 	 
for the Licensed Product, the Field shall be expanded to include such new indication, provided that NOVARTIS shall have the OTC Switch rights with respect to
the Licensed Product for such new indication as set forth in Section 9 and full access rights to such results to enable NOVARTIS to effect an OTC Switch. NOVARTIS shall provide reasonable written notice to ENDO in the event that it determines
to pursue any new indication for the Licensed Product. 

  

	8.2	Development Plans; Clinical Studies. Prior to initiating any clinical studies of the Licensed Product in the Territory for which ENDO is obligated to provide funding pursuant
to Section 8.3, a Party shall submit a Development Plan for review (and approval, in the case of a Development Plan submitted by ENDO) by the JCC. Thereafter, an updated Development Plan shall be submitted by the applicable Party to the JCC at
least ninety (90) days prior to the beginning of each Agreement Year. Each Development Plan will incorporate a Development budget and will set forth the plan for the Development of the Licensed Product for use in the Territory for the
applicable year, including: (a) costs and expenses to be incurred in connection with the Development of the Licensed Product; (b) clinical studies and regulatory plans for the Development of the Licensed Product; (c) protocols for, or
description of studies related to, the Development of the Licensed Product; (d) quality control and quality assurance standards for the Development of the Licensed Product; and (e) standards for product safety and regulatory compliance in
connection with the Development of the Licensed Product. For the avoidance of doubt, NOVARTIS shall not be required to submit a Development Plan for any clinical studies that ENDO is not required to fund pursuant to Section 8.3.

  

	8.3	Development Costs. 

  

	 	(a)	Development Costs incurred in connection with Development of the Licensed Product shall be allocated between the Parties as follows: 

  

					
	 	  	 ENDO
	  	 NOVARTIS

	 Required Phase IV Studies
	  	 ***% up to Maximum Amount of $*** million
	  	 ***% of excess over Maximum Amount

	 *** Study
	  	 ***% up to Maximum Amount of $*** million
	  	 ***% of excess over Maximum Amount

	 *** Study
	  	 ***% up to Maximum Amount of $*** million
	  	 ***% of excess over Maximum Amount

	 Other ***
	  	 ***%
	  	 ***%

	 Other clinical studies ***
	  	 ***
	  	 ***%

	 Clinical studies which are either initiated by ENDO or initiated by NOVARTIS for which ENDO has agreed to pay for new indications for the
Licensed Product
	  	 ***%
	  	 ***

  

 41 

	 	(b)	ENDO shall reimburse NOVARTIS for Development Costs for which it is responsible in accordance with and subject to the foregoing allocations and limitations. For the purpose of
clarity, NOVARTIS shall be solely responsible for all Development Costs in excess of any relevant Maximum Amount set forth in Section 8.3(a). Except with respect to Required Phase IV Studies, for which NOVARTIS will retain ultimate authority,
and except as set forth below with respect to a *** Study, ENDO shall have final decision-making authority as to whether any clinical study it is obligated to fund will be conducted; provided, that (i) NOVARTIS shall have sole decision-making
authority with respect to all other aspects of any such clinical study and (ii) once ENDO approves initiation of a clinical study, it shall not withdraw such approval. ENDO will pay for a *** Study if it receives confirmation in the form of a
written *** communication which identifies a *** study which can reasonably be conducted and submitted *** for the Licensed Product. 

 SECTION 9 
 OTC SWITCH RIGHTS 
  

	9.1	OTC Switch of Licensed Product. Subject to the final sentence of this Section 9.1, NOVARTIS and/or its Affiliates shall have the exclusive right, at its sole discretion,
to effect a switch of the Licensed Product from an Rx Product to an OTC Product in the Territory (an “OTC Switch”) by filing an amendment or supplement to the Licensed Product NDA or taking any other action necessary or advisable in
connection therewith to effect the OTC Switch, and thereafter to Commercialize such OTC Product. For the avoidance of doubt, an OTC Switch may be effected for one or more indications included in the Field from time to time. ENDO shall cooperate
fully with NOVARTIS in connection with an OTC Switch, including, providing any materials required by NOVARTIS to support the OTC Switch. Notwithstanding the foregoing, NOVARTIS shall not Launch an OTC Equivalent Product prior to the *** anniversary
of the Launch of the Licensed Product, and NOVARTIS shall not take any action that results in the loss of Rx Product status for the Licensed Product prior to such time. NOVARTIS shall notify ENDO when it submits a filing to the FDA in respect of an
OTC Equivalent Product. 

  

	9.2	Royalty. In the event this Agreement is terminated pursuant to Section 17.2 as a result of the Launch by NOVARTIS or its Affiliates of an OTC Equivalent Product in the
Territory that results in the declassification of the Licensed Product as an Rx Product, then, from the date of such Launch and for *** period thereafter, NOVARTIS will make quarterly royalty payments to ENDO on Net Sales of such OTC Equivalent
Product in the Territory by NOVARTIS, its Affiliates and their respective licensees or sublicensees at the rates set forth below, provided that, as a condition to the payment of any and all such royalties, Net Sales of the Licensed Product in the
Territory shall have exceeded $*** for *** prior to the Launch of (i) the OTC Equivalent Product by NOVARTIS or its Affiliates, (ii) an OTC Equivalent Product by any other Person or (iii) a Generic Diclofenac Product. Notwithstanding
the foregoing, if a Third Party obtains *** on an OTC Equivalent Product prior to any Launch by NOVARTIS or its Affiliates, no royalties shall be payable pursuant to this Section 9.2. 

  

 42 

				
	 Year Following Launch of the OTC Equivalent Product by NOVARTIS
	  	Royalty Rate	 
	 1
	  	***	%
	 2
	  	***	%
	 3
	  	***	%
	 4
	  	***	%
	 5
	  	***	%

 Notwithstanding any other provision hereof, ENDO shall not be entitled to any compensation with
respect to the OTC Switch or OTC Equivalent Product except for the foregoing royalties, if applicable. 
  

	9.3	Right of First Negotiation on Certain ENDO Products. Prior to ENDO offering such rights to any Third Party, the Parties shall negotiate in good faith for a period of *** days
from written notice by ENDO to NOVARTIS with respect to the terms and conditions of a license or collaboration between the Parties on the marketing, promotion, distribution and/or sale in the Territory of *** as ***. If the Parties are unable to
agree upon terms and conditions of such a license or collaboration on or before the expiration of such *** day period, then ENDO shall thereafter have the right to Develop and Commercialize itself or enter into a license or other collaboration with
any Third Party with respect to such *** and NOVARTIS shall have no rights with respect thereto, provided that any license or collaboration that ENDO enters into or proposes to enter into within the *** period following the end of such negotiation
period must be on terms and conditions in the aggregate no more favorable to such Third Party than those last offered to NOVARTIS during the negotiation period. 

 SECTION 10 
 LINE EXTENSIONS; NON-COMPETE 
  

	10.1	Line Extensions. 

  

					
	(a)	  	(i)	  	For the purposes of this Agreement, the Licensed Product for new indications funded by NOVARTIS without reimbursement from ENDO or any diclofenac topical dispersible product in formulations
different from the Licensed Product or concentrations other than 1% to be Developed and Commercialized as an Rx Product, shall be deemed to be a “Line Extension.” NOVARTIS retains all rights to research, Develop, and, subject to receipt of
applicable Approvals, Commercialize Line Extensions inside and outside the Territory, subject only to ENDO’s rights set forth in this Section 10.
			
		  	(ii)	  	Notwithstanding the foregoing, NOVARTIS shall not Commercialize a Line Extension in the Territory during the Initial Term.

  

	 	(b)	 The Parties shall negotiate in good faith for a period of *** from the Execution Date with respect to the terms and conditions of a license to Line Extensions
currently planned for Development by NOVARTIS. If the Parties are 

  

 43 

	 	 
unable to agree upon terms and conditions of such a license on or before the ***, then NOVARTIS shall thereafter have the right to Develop or Commercialize
itself or enter into a license or other collaboration with any Third Party with respect to any such Line Extension, in each case subject to the limitations set forth in this Agreement, provided that any license or collaboration that NOVARTIS enters
into or proposes to enter into within the *** period following the end of such negotiation period must be on terms and conditions in the aggregate no more favorable to such Third Party than those last offered to ENDO during the negotiation period.

  

	10.2	Non-Compete. 

  

	 	(a)	During the Initial Term of this Agreement, neither of the Parties nor any of their Affiliates shall, nor shall any of them license or collaborate with a Third Party to, market,
promote, advertise or sell in the Territory *** sprayable, spreadable or dispersible in any form (excluding patches) used for the ***, other than (i) the Licensed Product pursuant to this Agreement, and (ii) any ***, ***.

  

	 	(b)	In the event that any merger, acquisition or similar transaction (other than the acquisition of any rights or business primarily related to a *** which shall be governed solely by
the preceding paragraph (a)) results in ENDO or any of its Affiliates controlling any ***, other than any *** product (which shall be governed solely by the preceding paragraph (a)), and which is then being Commercialized in the Territory or which
is subsequently Commercialized (an “ENDO Competing Product”), then, from and after the later of consummation of such transaction or Launch of such ENDO Competing Product, and until the earlier of (i) the expiration of the Initial
Term, (ii) immediately upon completion of ENDO’s divestiture of the ENDO Competing Product, or (iii) ninety (90) days after ENDO permanently ceases detailing and incurring expenses in the nature of A&P Expenses in respect of
the ENDO Competing Product, ENDO shall pay to NOVARTIS a royalty on Net Sales of the ENDO Competing Product calculated in accordance with Section 7.2(a), with Net Sales of the Licensed Product and Net Sales of the ENDO Competing Product being
aggregated for purposes of determining the applicable royalty rate pursuant to Section 7.2(a). Net Sales of the ENDO Competing Product shall not be applied towards meeting Guaranteed Minimum Royalties. For the avoidance of doubt, in the event
that ENDO enters into any transaction meeting the conditions set forth in this Section 10.2(b), ENDO’s sole obligations resulting therefrom shall be to pay the applicable royalties described in this Section 10.2(b) and ENDO shall not
be deemed to be in violation of Section 10.2(a) or any other provision of this Agreement solely by reason of having entered into such transaction or controlling a *** as a result thereof. 

  

	 	(c)	Notwithstanding Section 10.2(a), this Section 10 shall not apply to any *** to which NOVARTIS or its Affiliates acquire rights as a result of any merger, acquisition or
similar transaction (other than the acquisition of any rights or business primarily related to a ***). 

  

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 SECTION 11 
 INTELLECTUAL PROPERTY 
  

	11.1	Corporate Names and Trademarks. 

  

	 	(a)	Each Party or its Affiliates, as applicable, shall retain all right, title and interest in and to its respective corporate name and logo and any other derivative or form thereof
(collectively, “Corporate Names”), and each Party shall file, prosecute, and maintain legal protection for such Corporate Names at their own expense. Each Party shall have full control and authority over any claim, suit, or other
proceeding relating to the Corporate Name of it or its Affiliates. 

  

	 	(b)	The Licensed Product shall be promoted and sold in the Territory under the Product Trademark. Except as expressly set forth herein, ENDO shall have no rights in or to the Product
Trademark or the goodwill pertaining thereto. NOVARTIS (or its Affiliates, as applicable) shall own and retain all rights to association of trademark, trade dress, service marks, domain names, copyrights, or goodwill associated therewith, and all
use of the Product Trademark by ENDO and its Affiliates shall, at all times inure to the benefit of NOVARTIS (or its Affiliates, as applicable). ENDO shall utilize the Product Trademark only on Promotional Materials approved by the JCC for the
purposes contemplated herein. ENDO agrees that upon termination or expiration of the Term of this Agreement, and the expiration of the time it is permitted to sell Licensed Product under Section 17.5(b), ENDO shall (and shall cause its
Affiliates and permitted subcontractors to) discontinue forthwith all use of the Product Trademark. All uses by ENDO of the Product Trademark shall comply with this Agreement and applicable Law. 

  

	 	(c)	NOVARTIS or an Affiliate thereof shall be solely responsible to maintain and enforce the Product Trademark, and maintain the goodwill pertaining thereto, at NOVARTIS’ expense.

  

	11.2	Ownership and Rights with Respect to Newly Created Technology. All Technology relating to Licensed Product created or Invented solely by NOVARTIS and its Affiliates, solely
by ENDO or its Affiliates or jointly by NOVARTIS and ENDO or their respective Affiliates and resulting from activities under this Agreement shall be owned by NOVARTIS or an Affiliate thereof; provided, that ENDO shall be entitled to use such
Technology as set forth in Section 2. 

  

	11.3	 Third Party Infringement. If either Party believes that a Third Party is infringing the Product Trademark or any NOVARTIS AG Technology or NOVARTIS
Technology in the Territory, such Party shall promptly notify the other Party hereto. At its sole discretion, NOVARTIS (or its Affiliates, as appropriate) shall have the sole right and responsibility to conduct all Third 

  

 45 

	 	 
Party infringement actions relating to the Product Trademark or any NOVARTIS AG Technology or NOVARTIS Technology in the Territory. The costs of any
infringement action brought by NOVARTIS (or its Affiliates) against a Third Party shall be borne by NOVARTIS. ENDO and its Affiliates shall assist NOVARTIS and its Affiliates at its expense and cooperate in any such infringement litigation,
including actions in federal court, state court and the U.S. Patent and Trademark Office, at NOVARTIS’ (or its Affiliates’) reasonable request. Any Damages obtained as a result of any such action and any funds received as part of a
settlement of any such action shall first be allocated in a proportional manner to the litigation expenses of each Party, and NOVARTIS shall receive any amount remaining after such expenses are reimbursed. 

 SECTION 12 
 BOOKS AND RECORDS; 

 AUDITS; TAXES; PAYMENT CURRENCY; AND OTHER TERMS 
  

	12.1	Books and Records. The Parties shall, and shall cause each of their respective Affiliates to, keep complete, true and accurate books and records in accordance with the
defined Accounting Standards. The Parties will keep such books and records for at least three (3) years following the end of the Agreement Year to which they pertain. Such books of accounts shall be kept at the Party’s principal place of
business. Each Party shall, and shall cause each of its respective Affiliates to, permit auditors, as provided in Section 12.2, to visit and inspect, during regular business hours and under the guidance of officers of the Party being inspected,
and to examine the books of account of such Party or such Affiliate and discuss the affairs, finances and accounts of such Party or such Affiliate with, and be advised as to the same by, its and their officers and independent accountants.

  

	12.2	Audits. The Parties shall have audit rights as described in this Section 12.2; provided, that audits may only be conducted for the purpose of determining or reconciling
calculations made in respect of (i) Net Sales; (ii) A&P Expenses, (iii) Details, (iv) distribution of samples, (v) Development Costs (to the extent that ENDO is funding such costs), or (vi) Manufacturing costs
related to adjustments in the price of the Licensed Product under Section 5.9(b). 

  

	 	(a)	For the purposes of the audit rights described in this Section 12, the Party subject to an audit in any given year will be referred to as the “Auditee” and the other
Party who has audit rights will be referred to as the “Audit Rights Holder.” 

  

	 	(b)	Each Party may, upon request and at its expense (except as provided for herein), cause an internationally-recognized independent accounting firm selected by it, other than one to
whom the Auditee has a reasonable objection (the “Audit Team”), to audit during ordinary business hours the books and records of the Auditee and the correctness of any payment made or required to be made to or by such Auditee, and any
report underlying such payment (or lack thereof), pursuant to the terms of this Agreement. Prior to commencing its work pursuant to this Agreement, the Audit Team shall enter into an appropriate confidentiality agreement with the Auditee.

  

 46 

	 	(c)	In respect of each audit of the Auditee’s books and records: (i) the Auditee may only be audited once per calendar year, unless a prior audit reveals any material
discrepancy, in which case, more frequent audits will be permitted; (ii) no records for any given Agreement Year may be audited more than once for the same purpose, unless a prior audit reveals any material discrepancy, in which case, more
frequent audits will be permitted; and (iii) the Audit Rights Holder shall only be entitled to audit books and records of the Auditee from the three (3) Agreement Years prior to the Agreement Year in which the audit request is made.

  

	 	(d)	In order to initiate an audit for a particular Agreement Year, the Audit Rights Holder must provide written notice to the Auditee. The Audit Rights Holder shall provide the Auditee
with notice of one or more proposed dates of the audit not less than forty-five (45) calendar days prior to the first proposed date. The Auditee will reasonably accommodate the scheduling of such audit. The Auditee shall reasonably cooperate
with such audit. 

  

	 	(e)	The audit report and basis for any determination by an Audit Team shall be made available for review and comment by the Auditee, and the Auditee shall have the right, at its
expense, to request a further determination by such Audit Team as to matters which the Auditee disputes (to be completed no more than thirty (30) calendar days after the first determination is provided to such Auditee and to be limited to the
disputed matters). If the Parties disagree as to such further determination, the Audit Rights Holder and the Auditee shall mutually select an internationally-recognized independent accounting firm that shall make a final determination as to the
remaining matters in dispute that shall be binding upon the Parties. 

 If the audit shows any under-reporting or underpayment,
or overcharging by any Party, that under-reporting, underpayment or overcharging shall be reported to the Audit Rights Holder and the underpaying or overcharging Party shall remit such underpayment or reimburse such overcompensation to the underpaid
or overcharged Party within thirty (30) calendar days of receiving the audit report. Further, if the audit for an Agreement Year shows an under-reporting or underpayment or an overcharge by any Party for that period in excess of *** of the
amounts properly determined, the underpaying or overcharging Party, as the case may be, shall reimburse the applicable underpaid or overcharged Party, for its respective audit fees and reasonable out-of-pocket expenses in connection with said audit,
which reimbursement shall be made within thirty (30) calendar days of receiving appropriate invoices and other support for such audit-related costs. 
  

	12.3	Accounting Standards. All costs and expenses and other financial determinations with respect to this Agreement shall be determined in accordance with Accounting Standards, as
generally and consistently applied by the Parties. 

  

 47 

	12.4	Taxes. Any withholding or other taxes that either Party or its Affiliates are required by Law to withhold or pay on behalf of the other Party, with respect to any payments to
it hereunder, shall be deducted from such payments and paid to the applicable Governmental Authority contemporaneously with the remittance to the other Party; provided, however, that the withholding Party shall furnish the other Party with proper
evidence of the taxes so paid. Each Party shall furnish the other Party with appropriate documents to secure application of the most favorable rate of withholding tax under applicable Law. 

  

	12.5	Payment Currency. All amounts due under this Agreement shall be paid to the designated Party in United States Dollars. 

  

	12.6	Payments. The Parties agree that, unless otherwise mutually agreed by the Parties or otherwise provided in this Agreement, amounts due by one Party to the other shall be
payable by wire transfer of immediately available funds in United States dollars within thirty (30) days after receipt of the corresponding statement or invoice to a bank account, details of which are to be communicated by the receiving party.
If a Party fails to pay any invoiced amount when due, interest may be charged by the other Party equal to the lesser of one percent (1%) or the highest rate permitted by law on the outstanding amount for each month or portion thereof that such
amount is overdue. 

 SECTION 13  
 REPRESENTATIONS AND WARRANTIES 
  

	13.1	Mutual Representations and Warranties. Each of the NOVARTIS Parties, severally and not jointly, and ENDO represents and warrants to the other as follows: (a) it is duly
organized and validly existing under the Laws of its jurisdiction of incorporation; (b) it has full corporate power and authority and has taken all corporate action necessary to enter into and perform this Agreement; (c) the execution and
delivery by it of this Agreement and the performance by it of its obligations hereunder will not constitute a breach of, or conflict with, its organizational documents nor any other material agreement or arrangement by which it is bound;
(d) this Agreement is its legal, valid and binding obligation, enforceable in accordance with the terms and conditions hereof, except as such enforcement may be limited by (i) bankruptcy, insolvency, reorganization, moratorium and other
laws of general application affecting the rights and remedies of creditors and (ii) general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law); and (e) no broker, finder or
investment banker is entitled to any brokerage, finder’s or other fee in connection with this Agreement or the transactions contemplated hereby based on arrangements made by it or on its behalf. 

  

	13.2	Representations and Warranties of ENDO. ENDO represents and warrants to NOVARTIS as follows: 

  

	 	(a)	ENDO is not insolvent and will not be insolvent as a result of, or immediately following, execution of this Agreement or payment of the Upfront Payment, under any bankruptcy,
receivership or insolvency law, and has been paying its debts as they become due and within vendor terms, in all material respects; 

  

 48 

	 	(b)	ENDO has or will have cash available in sufficient amounts so as to enable it to satisfy its payment obligations hereunder as and when they become due; 

  

	 	(c)	neither ENDO nor any of its Affiliates, nor, to ENDO’s knowledge, any of their respective officers, directors, employees or agents has been (i) convicted of an offense
related to any federal or state health care program; (ii) excluded or otherwise rendered ineligible for Federal or State health care program participation; (iii) debarred under Subsection (a) or (b) of Section 306 of the Act
or (iv) debarred by the FDA under the provisions of the Generic Drug Enforcement Act of 1992, as amended, or any other applicable Laws; and 

  

	 	(d)	Except for development activities pursuant to this Agreement, neither ENDO nor any of its Affiliates is itself Developing or collaborating with a Third Party to Develop any *** used
to treat *** in humans to be Commercialized in the Territory. 

  

	13.3	Representations and Warranties of the NOVARTIS Parties. Each of the NOVARTIS Parties, severally and not jointly, represents and warrants to ENDO as follows:

  

	 	(a)	NOVARTIS AG is the owner of, or has exclusive rights to, the Product Trademark and NOVARTIS is the owner of, or has exclusive rights to, the Licensed Product NDA, in each case free
and clear of liens and encumbrances that would reasonably be expected to have a material adverse effect on the rights granted to ENDO under this Agreement (a “Material Adverse Effect”). The NOVARTIS Parties have not granted rights in the
Product Trademark or the Licensed Product NDA to any Third Party which are inconsistent with the rights granted to ENDO under this Agreement or would have a Material Adverse Effect; 

  

	 	(b)	To the knowledge of the NOVARTIS Parties, each facility owned or controlled by NOVARTIS or its Affiliates and currently used in the manufacture of the Licensed Product is in
compliance with all applicable Laws, except for any non-compliance that would not reasonably be expected to have a Material Adverse Effect; 

  

	 	(c)	Neither of the NOVARTIS Parties has received any written claims challenging the ownership, validity or scope of the Product Trademark or the Licensed Product NDA or any other
NOVARTIS Technology or NOVARTIS AG Technology that would reasonably be expected to have a Material Adverse Effect. To the knowledge of the NOVARTIS Parties, no Person has any intellectual property rights in the Territory that would reasonably be
expected to prevent the NOVARTIS Parties or ENDO from performing its obligations hereunder in accordance with this Agreement, in either case, in any material respect; 

  

 49 

	 	(d)	The NOVARTIS Parties will not create, incur, or permit to exist on or to the Product Trademark or the Licensed Product NDA any lien or claim, in each case that would reasonably be
expected to have a Material Adverse Effect; 

  

	 	(e)	(i) NOVARTIS has provided ENDO, or given ENDO access to, true and complete paper or electronic copies of the NDA and material FDA correspondence relating to the NDA, provided that
any information relating to the clinical programs for the Licensed Product was not disclosed or was redacted. (ii) NOVARTIS has not failed to disclose any information relating to the Licensed Product and within the control of NOVARTIS or its
Affiliates requested pursuant to ENDO’s due diligence request list attached hereto as Schedule 13.3(e), which failure would, to the knowledge of NOVARTIS, reasonably be expected to have a Material Adverse Effect. (iii) In Developing the
Licensed Product, to its knowledge, NOVARTIS has not misappropriated any trade secret of any Third Party which misappropriation would reasonably be expected to have a Material Adverse Effect; and 

  

	 	(f)	Except as set forth on Schedule 13.3(f) and except as provided in this Agreement, neither NOVARTIS nor any of its Affiliates is Developing or collaborating with a Third Party to
Develop any *** for use in treating pain in humans to be Commercialized in the Territory. 

  

	13.4	DISCLAIMER OF WARRANTIES. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY HERETO MAKES ANY, AND HEREBY EXPRESSLY DISCLAIMS ANY AND ALL REPRESENTATIONS,
GUARANTEES, OR WARRANTIES, IMPLIED, STATUTORY OR OTHERWISE, IN CONNECTION WITH THIS AGREEMENT, THE LICENSED PRODUCT (INCLUDING THE SAFETY OR EFFICACY THEREOF) OR OTHERWISE WITH RESPECT TO THE SUBJECT MATTER HEREOF, INCLUDING ANY IMPLIED WARRANTIES
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT OR COVERAGE OF ANY PRODUCT BY OR VALIDITY OF ANY PATENTS, AND ANY AND ALL WARRANTIES THAT MAY ARISE OUT OF COURSE OF DEALING, COURSE OF PERFORMANCE, OR USAGE OF TRADE.
EXCEPT AS SET FORTH IN SECTION 13.3(e)(ii) ABOVE, NEITHER NOVARTIS, ITS AFFILIATES NOR ANY OTHER PERSON SHALL HAVE OR BE SUBJECT TO ANY LIABILITY TO ENDO OR ANY OTHER PERSON RESULTING FROM THE DISTRIBUTION TO ENDO, OR ENDO’S USE OF, ANY
INFORMATION, DOCUMENTS OR MATERIALS MADE AVAILABLE TO ENDO IN ANY “DATA ROOMS”, MANAGEMENT PRESENTATIONS OR IN ANY OTHER FORM IN EXPECTATION OF THE TRANSACTIONS CONTEMPLATED HEREBY. 

  

 50 

 SECTION 14  
 CONFIDENTIALITY 
  

	14.1	Confidential Information. Each of NOVARTIS and ENDO acknowledges that all Confidential Information provided by the other Party or its respective Affiliates is confidential or
proprietary to such other Party or its respective Affiliates and agrees to (i) maintain such information in confidence during the Term of this Agreement and for a period of five (5) years thereafter and (ii) use such information
solely for the purpose of performing its respective obligations hereunder. Each of NOVARTIS and ENDO covenants that neither it nor any of its respective Affiliates shall disclose any such information except to its or its Affiliates’
Representatives solely for purposes of performing its obligations under this Agreement; provided, that such Representatives are subject to substantially the same confidentiality obligations as the Parties hereunder. The foregoing confidentiality
obligations shall not apply to Confidential Information which is required to be disclosed to a Governmental Authority by applicable Law, in which case the disclosing Party shall promptly notify the other Party of such disclosure and the procedures,
such as a protective order, instituted to protect the confidentiality of the Confidential Information to be disclosed. 

  

	14.2	Injunctive Relief. Each Party acknowledges that damages resulting from disclosure of the Confidential Information will be an inadequate remedy and that, in the event of any
such disclosure or any indication of an intent to disclose such information, a Party (or its Affiliates) owning such information will be entitled to injunctive relief or other equitable relief in addition to any and all remedies available at law or
in equity, including the recovery of damages and reasonable attorneys’ fees. 

  

	14.3	 Publicity. ENDO agrees not to issue any press releases or other non-promotion related written communications to the media, including question and answer
documents and standby statements, concerning this Agreement without the prior written consent of NOVARTIS to the form, timing and content of any such release or other non-promotion related written communication except as set forth below; provided,
that NOVARTIS shall have sole approval of all scientific publications, subject to the right of ENDO to review and provide comments with respect to any such publications, which NOVARTIS shall consider in good faith. ENDO shall provide NOVARTIS a
reasonable opportunity (but no less than seventy-two (72) hours, except as required by Law) to review such press release or other non-promotion related written communication in order to provide its consent, which consent shall not be
unreasonably withheld or delayed. NOVARTIS shall provide ENDO a reasonable opportunity (but no less than seventy-two (72) hours, except as required by Law) to review any press release or other non-promotion related written communications to the
media to be issued or made by NOVARTIS with respect to this Agreement or the promotion of the Licensed Product in the Territory in order for ENDO to provide its comments with respect thereto, which will be considered by NOVARTIS in good faith but
with no obligation on the part of NOVARTIS to accept. Except as required by Law or by the rules of a nationally recognized stock exchange, neither Party (or their respective Affiliates) shall disclose to any Third Party, under any circumstances, any
terms of this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld. In the event a disclosure is required by Law 

  

 51 

	 	 
or by the rules of a nationally recognized stock exchange, the Parties shall coordinate with each other with respect to the timing, form and content of such
required disclosure. In the event the Parties are unable to agree on the form or content of any such required disclosure, such disclosure shall be limited to the minimum required, as determined by the disclosing Party in consultation with its legal
counsel. 

 SECTION 15  
 INDEMNITY; PRODUCT LIABILITY 
  

	15.1	Indemnity. 

  

	 	(a)	Each Party (the “Indemnifying Party”) shall indemnify and hold harmless the other Party, its Affiliates and their respective officers, directors, employees and agents
(collectively, the “Indemnified Party”) from and against all claims, demands, losses, liabilities, damages, fines, costs and expenses, including reasonable attorneys’ fees and costs and amounts paid in settlement (collectively,
“Damages”), arising out of: 

  

	 	(i)	the negligence, recklessness, bad faith, intentional wrongful acts or omissions of the Indemnifying Party or its Affiliates or Representatives in connection with activities
undertaken pursuant to this Agreement, except to the extent that Damages arise out of the negligence, recklessness, bad faith or intentional wrongful acts, or omissions committed by the Indemnified Party or its Affiliates (or, to the extent
permitted under this Agreement, their respective Representatives working on their behalf); and 

  

	 	(ii)	breach by the Indemnifying Party or its Affiliates or Representatives of the covenants and agreements of, or the representations and warranties made by it in, this Agreement.

  

	 	(b)	Except as otherwise provided in Section 11, the Party entitled to indemnification under this Section 15 shall notify the Party potentially responsible for such
indemnification promptly of becoming aware of any claim or claims asserted or threatened against the Indemnified Party which could give rise to a right of indemnification under this Agreement; provided, however, that the failure to give such notice
shall not relieve the Indemnifying Party of its indemnity obligation hereunder except to the extent that such failure materially prejudices its rights hereunder. 

  

	 	(c)	 Except as otherwise provided in Section 11, and except in connection with any claim based on actual or alleged violation of Law, the Indemnifying Party shall
have the right to defend, at its sole cost and expense, such claim by all appropriate proceedings; provided, however, that the Indemnifying Party may not enter into any compromise or settlement unless (i) such compromise or
settlement includes as an unconditional term thereof, the giving by the plaintiff to the Indemnified Party of a release from all liability in respect of such claim; and (ii) the Indemnified Party 

  

 52 

	 	 
consents to such compromise or settlement; provided, that such consent shall not be required if such compromise or settlement does not involve
(A) any admission of legal wrongdoing by the Indemnified Party, (B) any payment by the Indemnified Party that is not indemnified hereunder or (C) the imposition of any equitable relief against the Indemnified Party.

  

	 	(d)	Except as otherwise provided in Section 11, the Indemnified Party may participate in, but not control, any defense or settlement of any claim controlled by the Indemnifying
Party pursuant to this Section 15.1 and if such claim is being defended by the Indemnifying Party, the Indemnified Party shall bear its own costs and expenses with respect to such participation. 

  

	15.2	Product Liability. 

  

	 	(a)	ENDO shall indemnify and hold NOVARTIS harmless, in the manner set forth in Section 15.1, for Damages arising out of or resulting from any claims, actions, suits, proceedings,
hearings, investigations or demands of Third Parties that involve death or bodily injury to any individual, including any product liability actions (collectively, “Product Liability Claims”), other than any such Damages which are set forth
in Section 15.2 (b). 

  

	 	(b)	NOVARTIS shall indemnify and hold ENDO harmless, in the manner set forth in Section 15.1, for Damages arising out of or resulting from Product Liability Claims attributable to
NOVARTIS’ negligence, recklessness, bad faith, intentional wrongful acts, or breach of this Agreement, including the failure of any Licensed Product to meet the Specifications, the requirements of the Licensed Product NDA, GMP Requirements
and/or all applicable Laws, or to a manufacturing defect. 

 SECTION 16  
 FORCE MAJEURE 
  

	16.1	 Force Majeure. In the event of strikes, lock-outs, earthquakes, fires, storms, floods, wars, acts of terrorism, explosions or, in the case of NOVARTIS’
obligations, unavailability of raw materials for Licensed Product due to any of the aforementioned events (“Force Majeure”), the Parties agree that, if either NOVARTIS or ENDO finds itself wholly or partially unable to fulfill its
respective obligations in this Agreement by reasons of Force Majeure, the Party affected will advise the other Party in writing of its inability to perform, giving a detailed explanation of the occurrence of the event which excuses performance as
soon as possible after the cause or event has occurred. If such notice is given, the performance of the Party giving the notification, except the payment of funds (subject to the provision below), shall be abated, and any time deadlines shall be
extended for so long as performance may be prevented by Force Majeure. Except for the payment of funds that are or become due and payable, neither Party shall be required to make up any performance that was prevented by Force Majeure. Anything
herein to the contrary notwithstanding, ENDO shall not be obligated to make Guaranteed Minimum Royalty payments or 

  

 53 

	 	 
perform its minimum Detailing and A&P commitments during the period of time that NOVARTIS is unable to meets its obligations in respect of manufacture
and delivery of Licensed Products as a result of Force Majeure. 

 SECTION 17  
 TERM AND TERMINATION 
  

	17.1	Term. 

  

	 	(a)	The term of this Agreement shall begin on the Execution Date and expire at the end of the fifth (5th) Agreement Year, unless extended in accordance with this
subsection (a) or sooner terminated as provided in this Agreement (the “Initial Term”). The term of this Agreement shall be extended for a period of one (1) year (each, a “Renewal Term”) at the expiration of the Initial
Term and each Renewal Term, as applicable, unless (i) ENDO shall provide written notice of non-renewal to NOVARTIS at *** months prior to the expiration of the Initial Term or the first Renewal Term, as applicable, or (ii) either Party
shall provide written notice of non-renewal to the other Party at least six (6) months prior to the expiration of any Renewal Term after the first Renewal Term. 

  

	 	(b)	As used herein, the “Term of this Agreement” shall mean the Initial Term and the Renewal Terms, if any. 

  

	17.2	Automatic Termination. This Agreement shall automatically terminate upon the Launch in the Territory of any OTC ***. 

  

	17.3	Termination. This Agreement shall be terminable forthwith upon reasonable written notice, if one or more of the following events should occur: 

  

	 	(a)	by either Party, if the other Party commits a material breach of this Agreement, which breach shall not have been remedied within (i) ninety (90) days from the giving of
written notice requiring such breach (other than a payment default) to be remedied if such breach is capable of being cured during such ninety (90) day period, or (ii) thirty (30) days from the giving of notice by either Party to the
other of default by the other Party in any payment required under this Agreement; 

  

	 	(b)	without limiting the foregoing, ENDO’s failure to deliver at least *** percent (***%) of the minimum Details or Primary Details to Target Prescribers in accordance with
Section 4.4(b) in any Agreement Semester (taking into account ENDO’s right to cure any such shortfall in the next Agreement Quarter) shall constitute a valid basis for NOVARTIS to terminate this Agreement pursuant to Section 17.3(a);

  

	 	(c)	by ENDO, by written notice on or after the Launch in the Territory of a Generic Diclofenac Product; 

  

 54 

	 	(d)	by ENDO, by written notice given on or after the Launch in the Territory of an *** that does not result in the declassification of the Licensed Product as an Rx ***, as compared to
Net Sales during the six month period before such Launch, by *** percent (***%) or more, or (II) at the expiration of either of *** Launch Three Month Reference Periods, Net Sales for such OTC Launch Three Month Reference Period have declined, as
compared to Net Sales during the three calendar month period before such Launch, by *** percent (***%) or more, or if at the last day of the *** Launch Three Month Reference Period, the number of “covered lives” eligible for third party
reimbursement in respect to purchases of Licensed Product as referenced by the Managed Markets Information Service in its most recent report have declined by *** percent (***%) or more as compared to the number of “covered lives”
immediately prior to such Launch; 

  

	 	(e)	by ENDO in the event that, following the Regulatory Exclusivity Period, Net Sales in any Agreement Semester are less than $***; 

  

	 	(f)	by NOVARTIS, by written notice given on or after the Launch in the Territory of an OTC Equivalent Product by NOVARTIS, its Affiliates or any Third Party that does not result in the
declassification of the Licensed Product as an Rx Product, following which Net Sales in any Agreement Semester are less than $***; 

  

	 	(g)	by ENDO in the event that (i) the Licensed Product becomes subject to a validated safety signal of significant concerns regarding patient safety with respect to the Licensed
Product, or (ii) either Party receives notice from a Governmental Authority, independent review committee, data safety monitoring board or another similar clinical trial or post-marketing monitoring body concluding significant concern regarding
a patient safety issue with respect to the Licensed Product, in the case of (i) or (ii) which would reasonably be expected to seriously impact the long-term viability of the Licensed Product; 

  

	 	(h)	by either Party, if the other Party becomes incapable, for a period of one hundred and eighty (180) days, of performing any of its material obligations under this Agreement
because of Force Majeure, despite such adversely affected Party’s commercially reasonable efforts to perform; 

  

	 	(i)	by either Party, if the other Party commences a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any
bankruptcy, insolvency or other similar Law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or similar official of it or of any substantial part of its property, or shall consent to any such relief
or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they
become due, or shall take any corporate action to authorize any of the foregoing; 

  

 55 

	 	(j)	by either Party, if the other Party has an involuntary case or other proceeding commenced against it seeking liquidation, reorganization or other relief with respect to it or its
debts under any bankruptcy, insolvency or other similar Law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, and such
involuntary case or other proceeding remains undismissed and unstayed for a period of ninety (90) days; or an order for relief is entered against such Party under applicable bankruptcy Laws as now or hereafter in effect;

  

	 	(k)	by either Party, if the other Party is unable to pay its debts as they become due, has explicitly or implicitly suspended payment of any debts as they become due (except debts
contested in good faith), or if the creditors of such Party have taken over its management; and 

  

	 	(l)	by ENDO after the Initial Term, upon one hundred eighty (180) days’ prior written notice to NOVARTIS. 

  

	17.4	Survival of Obligations. Notwithstanding any expiration or termination of this Agreement, (a) neither NOVARTIS nor ENDO shall be relieved of any liabilities or
obligations incurred by such Party prior to such termination, (b) Sections 2.3, 4.4(c) (with respect to any shortfall in minimum Details prior to expiration or termination and ENDO’s right to recoup any overpayment in the event that any
such shortfall has been satisfied in accordance with this Agreement), 5 (to the extent applicable to Section 17.5(b)), 5.10 (with respect to each Party’s reporting obligations with respect to matters occurring prior to the expiration or
termination), 6.1 through 6.4, 7.2(a) (to the extent applicable to Section 17.5(b)), 8.1(b) and (c) (solely with respect to NOVARTIS’ switch rights and access to data from clinical studies), 9.2, 11, 12, 14, 15, 17.4, 17.5, 17.6, 18
(only insofar as such Section relates to the obligations of the Parties prior to such termination or expiration), 19 and 20 shall survive any expiration or termination of this Agreement, and (c) in the event that this Agreement is terminated by
NOVARTIS under Section 17.3(a) or (b), then Section 10.2 (Non-Compete) shall survive in respect to ENDO for the balance of the Initial Term. 

  

	17.5	Effect of Expiration or Termination. 

  

	 	(a)	General. Notwithstanding any other rights or obligations a Party or its Affiliates may have under this Agreement or under Law, except as otherwise provided herein, upon
expiration or termination of this Agreement, all rights and licenses granted by NOVARTIS to ENDO and its Affiliates and all rights and licenses granted by ENDO to NOVARTIS and its Affiliates hereunder shall terminate and revert to the Party granting
such rights and all of the Parties’ obligations under this Agreement shall, except as specifically provided in Section 17.4 or 17.5, cease, terminate and be of no further force and effect from and after the effective date of expiration or
termination. The Parties and their Affiliates shall cooperate in informing relevant Governmental Authorities of the cessation of ENDO’s activities in relation to the Licensed Product. In addition, the Parties shall, and shall ensure that their
respective Affiliates, promptly return or destroy (subject to written certification of the latter) to the other Party all written Confidential Information, and all copies thereof (except one copy which may be kept for record-keeping purposes only),
belonging to such other Party. 

  

 56 

	 	(b)	Supply Obligations. Following expiration or termination of this Agreement, ENDO shall continue to be responsible for all returns, rebates, refunds, chargebacks, open purchase
orders, any applicable disposal costs and other payments or obligations in respect of Licensed Product sold during the Term of this Agreement. Subject to the terms and conditions of this Agreement, including Section 5, NOVARTIS shall provide
sufficient Licensed Product to ENDO in order to allow ENDO to meet the requirements of all open purchase orders. For a period of up to *** months following expiration or termination of this Agreement, to the extent permitted by applicable Law, ENDO
shall be permitted to sell Licensed Product, subject to paying royalties under Section 7.2(a), to fulfill such open purchase orders and otherwise to sell off its inventory, including that purchased pursuant to the next sentence. In addition,
upon the written request of NOVARTIS made within thirty (30) days of the expiration of the Term, ENDO shall purchase from Novartis (i) all Licensed Product then held in inventory by NOVARTIS or its Affiliates for sale in the Territory, at
the price set forth in Section 5.9(a) and (ii) all raw materials and other components held in inventory by NOVARTIS or its Affiliates for use in connection with the manufacture of Licensed Product for sale in the Territory, at cost, to the
extent such items relate to binding purchase orders from customers and reasonable levels of safety stock. 

  

	 	(c)	Assignment of CSO. To the extent requested by NOVARTIS, ENDO shall cause any contracts with approved Contract Sales Organizations to be assigned to NOVARTIS effective upon
expiration or termination of this Agreement and shall provide full transition cooperation to NOVARTIS. 

  

	17.6	Remedies. Except as otherwise expressly set forth in this Agreement, the termination provisions of this Section 17 are in addition to any other relief and remedies
available to either Party at law in equity or otherwise. 

 SECTION 18 
 INSURANCE 
  

	18.1	ENDO and NOVARTIS shall each at its own expense obtain and maintain insurance of the type and amount described in this Section 18. Neither Party shall do or omit to do any act,
matter or thing which could prejudice or render voidable any such insurance. The insurance obligations hereunder may be met by a program of self-insurance. 

 The Parties agree that each will maintain during the performance of this Agreement the following insurance in amounts no less than that specified for each type: 
  

	 	(a)	General liability insurance with combined limits of not less than $1,000,000 per occurrence and $1,000,000 per accident for bodily injury, including death and property damage;

  

 57 

	 	(b)	Worker’s compensation and disability insurance in the amount required by the Law of the State in which the Party’s employees are located and employers liability insurance
with limits of not less than $1,000,000 per occurrence; 

  

	 	(c)	Auto liability insurance with combined limits of not less than $1,000,000 per occurrence and $1,000,000 per accident for bodily injury, including death and property damage; and

  

	 	(d)	Excess liability insurance with combined limits of not less than $3,000,000 per occurrence and $3,000,000 per accident for bodily injury, including death and property damage.

 Each Party will provide to the other Party evidence of its insurance and not less than thirty (30) days prior written
notice of any cancellation of its coverage or reduction in coverage from the requirements stated herein. 
 SECTION 19 
 NON-SOLICITATION OF EMPLOYEES 
  

	19.1	Non-Solicitation of Employees. During the Term of this Agreement, and for a period of one (1) year following the expiration or termination thereof, NOVARTIS AG,
NOVARTIS, ENDO and ENDO’s Affiliates shall not, directly or indirectly, recruit or solicit any employee of the other Party or its Affiliates with whom such Party has (i) come into contact with, (ii) learned of, or
(iii) interacted with, in each case in connection with activities undertaken in connection with this Agreement, without the prior written consent of the other Party, except pursuant to general solicitation not targeted at such employees.

 SECTION 20 
 MISCELLANEOUS 
  

	20.1	Governing Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York, without regard to the conflict of laws principles
thereof. 

  

	20.2	Jurisdiction. Any disputes between the Parties relating to this Agreement shall be subject to the exclusive jurisdiction and venue of the federal courts located in the
Southern District of New York (without restricting any right of appeal), and the Parties hereby waive any objection which they may have now or hereafter to the laying of venue of any proceedings in such courts and to any claim that such proceedings
have been brought in an inconvenient forum, and further agree that a judgment or order in any such proceedings shall be binding upon each of them and may be enforced in the courts of any other jurisdiction. 

  

 58 

	20.3	Waiver. Waiver by a Party of a breach hereunder by the other Party shall not be construed as a waiver of any succeeding breach of the same or any other provision. No delay or
omission by a Party in exercising or availing itself of any right, power or privilege hereunder shall preclude the later exercise of any such right, power or privilege by such Party. No waiver shall be effective unless made in writing with specific
reference to the relevant provision(s) of this Agreement and signed by a duly authorized representative of the Party granting the waiver. 

  

	20.4	Notices. All notices required or permitted hereunder shall be given in writing and sent by confirmed facsimile transmission, or mailed postage prepaid by certified or
registered mail (return receipt requested), or sent by a nationally recognized express courier service, or hand-delivered at the following address: 

 If to NOVARTIS AG: 
 Novartis, AG 
 Lichtstrasse 35 
 CH-4056 Basel 

Switzerland 
 Facsimile: 41 61 3247826

 Attention: General Counsel 
 With a copy to: 
 Novartis Consumer Health, Inc. 
 200 Kimball Drive 
 Parsippany, NJ 07054-0622 
 Facsimile: (973) 503-8450 
 Attention:
General Counsel 
 If to NOVARTIS: 
 Novartis Consumer Health, Inc. 
 200 Kimball Drive 
 Parsippany, NJ 07054-0622 
 Facsimile: 973-503-8458 
 Attention: General Counsel 
 With a copy
to: 
 Novartis Consumer Health, Inc. 
 200 Kimball Drive 
 Parsippany, NJ 07054-0622 
 Facsimile: (973) 503-8450 
 Attention: General Counsel 
  

 59 

 If to ENDO: 
 ENDO Pharmaceuticals Inc. 
 100 Endo Boulevard 
 Chadds Ford, PA 19317 
 Attention: Chief
Legal Officer 
 FAX (610) 558-9684 
 All notices shall be deemed made upon receipt by the addressee as evidenced by the applicable written receipt. 
  

	20.5	Entire Agreement; Confidentiality Agreement. This Agreement (including the Exhibits and Schedules) contains the complete understanding of the Parties with respect to the
subject matter hereof and supersedes all prior understandings and writings relating to the subject matter hereof. The Parties acknowledge and agree that, as of the Execution Date, all Confidential Information disclosed by a Party or its Affiliates
pursuant to the Confidentiality Agreement between the Parties dated December 6, 2007 shall be included in the Confidential Information subject to this Agreement and such Confidentiality Agreement shall terminate and have no further force or
effect as between the Parties or their Affiliates; provided, that the foregoing shall not relieve any Person of any right or obligation accruing under the Confidentiality Agreement prior to the Execution Date. 

  

	20.6	Amendments. No provision in this Agreement shall be supplemented, deleted, amended or waived except in a writing executed by NOVARTIS and ENDO. 

  

	20.7	Headings. Headings in this Agreement are for convenience of reference only and shall not be considered in construing this Agreement. 

  

	20.8	Severability. If any provision of this Agreement is held unenforceable by a court or tribunal of competent jurisdiction because it is invalid or conflicts with any Law of any
relevant jurisdiction, the validity of the remaining provisions shall not be affected. The Parties shall negotiate a substitute provision that, to the extent possible, accomplishes the original business purpose of the Parties.

  

	20.9	Assignment. Except as otherwise expressly provided herein, neither this Agreement nor any of the rights or obligations hereunder may be assigned by either Party without the
prior written consent of the other Party, which consent shall not be unreasonably withheld. Notwithstanding the first sentence of this Section 20.9, either Party may assign this Agreement (i) to any Affiliate of such Party or (ii) to
any other Person who acquires all or substantially all of the business of the assigning Party by merger, sale of assets or otherwise, provided, that, the Affiliate or acquiring Person affirmatively assumes and agrees in writing to perform and comply
with all of the obligations of such Party under this Agreement as they apply to such Party and its Affiliates, and in the case of (ii) only provides a copy thereof to the other Party upon consummation of such transaction. The assigning Party
shall remain liable hereunder notwithstanding any such assignment. Any attempted assignment in violation hereof shall be void. 

  

 60 

	20.10	Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns.

  

	20.11	Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the
same instrument. 

  

	20.12	Third-Party Beneficiaries. Except as expressly provided in Section 15.1, none of the provisions of this Agreement shall be for the benefit of or enforceable by any Third
Party including any creditor of any Party hereto. No such Third Party shall obtain any right under any provision of this Agreement or shall by reason of any such provision make any claim in respect of any debt, liability or obligation (or otherwise)
against any Party hereto. 

  

	20.13	Relationship of the Parties; Tax Treatment. Each Party shall bear its own costs incurred in the performance of its obligations hereunder without charge or expense to the
other except as expressly provided in this Agreement. Neither NOVARTIS nor ENDO shall have any responsibility for the hiring, termination or compensation of the other Party’s employees or for any employee compensation or benefits of the other
Party’s employees. No employee or representative of a Party shall have any authority to bind or obligate the other Party to this Agreement for any sum or in any manner whatsoever, or to create or impose any contractual or other liability on the
other Party without said Party’s approval. For all purposes, and notwithstanding any other provision of this Agreement to the contrary, ENDO’s legal relationship under this Agreement to NOVARTIS shall be that of independent contractor.
Nothing in this Agreement shall be construed to establish a relationship of partners or joint venturers. This Agreement shall not be construed, nor will either Party construe it, as a partnership for tax purposes. 

  

	20.14	Specific Performance. Each of the Parties acknowledges and agrees that the other Party may be damaged irreparably in the event any of the provisions of this Agreement are not
performed in all material respects or otherwise are breached. Accordingly, and notwithstanding anything herein to the contrary, each of the Parties agrees that the other Party will be entitled to injunctive relief to prevent breaches of the
provisions of this Agreement, and/or to enforce specifically this Agreement and the terms and provisions hereof, in any action instituted in any court or tribunal having jurisdiction over the Parties and the matter, without posting any bond or other
security, and that such injunctive relief shall be in addition to any other remedies to which such Party may be entitled, at law or in equity. 

  

	20.15	Further Assurances and Actions. Each of the Parties hereto, upon the request of the other Party hereto, shall, without further consideration, do, execute, acknowledge and
deliver or cause to be done, executed, acknowledged or delivered all such further acts, deeds, documents, assignments, transfers, conveyances, powers of attorney and assurances as may be reasonably necessary to effectuate any of the provisions of
this Agreement. 

  

 61 

	20.16	LIMITATION OF DAMAGES. IN NO EVENT SHALL ENDO OR NOVARTIS BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF PROFITS) SUFFERED BY THE
OTHER PARTY, EXCEPT FOR ANY SUCH DAMAGES PAID TO A THIRD PARTY AS PART OF A THIRD-PARTY CLAIM, PROVIDED, THAT THE FOREGOING SHALL NOT PRECLUDE A PARTY FROM SEEKING ANY SUCH DAMAGES RESULTING FROM FRAUD (INCLUDING ANY WILLFUL MISREPRESENTATION,
WILLFUL MISCONDUCT OR WILLFUL CONCEALMENT BY A PARTY) AND/OR WILLFUL BREACH. 

 [Remainder of page intentionally left blank]

  

 62 

 IN WITNESS WHEREOF, NOVARTIS AG, NOVARTIS and ENDO have caused this Agreement to be executed by their
duly authorized representatives as of the day and year first above written. 
  

			
	NOVARTIS, AG
		
	By	 	 /s/ Peter Rupprecht

	Name:	 	Peter Rupprecht
	Title:	 	Authorized Signatory
		
	By	 	 /s/ Paul David Burns

	Name:	 	Paul David Burns
	Title:	 	Authorized Signatory
	
	NOVARTIS CONSUMER HEALTH, INC.
		
	By	 	 /s/ Larry P. Allgaier

	Name:	 	Larry P. Allgaier
	Title:	 	OTC CEO
	
	ENDO PHARMACEUTICALS INC.
		
	By	 	 /s/ Nancy J. Wysenski

	Name:	 	Nancy J. Wysenski
	Title:	 	Chief Operating Officer

 [Signature Page to License and Supply Agreement] 

 Schedule 1.95 
 PhRMA Code 
 PhRMA Code on Interactions with Healthcare Professionals 
 Preamble 
 The Pharmaceutical Research and Manufacturers of America (PhRMA)
represents research-based pharmaceutical and biotechnology companies. Our members develop and market new medicines to enable patients to live longer and healthier lives. 
 Ethical relationships with healthcare professionals are critical to our mission of helping patients by developing and marketing new medicines. An important part of achieving this mission is ensuring that healthcare
professionals have the latest, most accurate information available regarding prescription medicines, which play an ever-increasing role in patient healthcare. This document focuses on our interactions with healthcare professionals that relate to the
marketing of our products. 
 Effective marketing of medicines ensures that patients have access to the products they need and that the products are used
correctly for maximum patient benefit. Our relationships with healthcare professionals are critical to achieving these goals because they enable us to – 
  

	 	•	 	 inform healthcare professionals about the benefits and risks of our products, 

  

	 	•	 	 provide scientific and educational information, 

  

	 	•	 	 support medical research and education, and 

  

	 	•	 	 obtain feedback and advice about our products through consultation with medical experts. 

 In interacting with the medical community, we are committed to following the highest ethical standards as well as all legal requirements. We are also concerned that our
interactions with healthcare professionals not be perceived as inappropriate by patients or the public at large. This Code is to reinforce our intention that our interactions with healthcare professionals are to benefit patients and to enhance the
practice of medicine. The Code is based on the principle that a healthcare professional’s care of patients should be based, and should be perceived as being based, solely on each patient’s medical needs and the healthcare
professional’s medical knowledge and experience. 
 Therefore, PhRMA adopts, effective July 1, 2002, the following voluntary Code on relationships
with healthcare professionals. This Code addresses interactions with respect to marketed products and related pre-launch activities. It does not address relationships with clinical investigators relating to pre-approval studies. 
  

 1 

 PhRMA Code on Interactions with Healthcare Professionals 
  

	1.	BASIS OF INTERACTIONS 

 Our relationships with healthcare
professionals are intended to benefit patients and to enhance the practice of medicine. Interactions should be focused on informing healthcare professionals about products, providing scientific and educational information, and supporting medical
research and education. 
  

	2.	INFORMATIONAL PRESENTATIONS BY OR ON BEHALF OF A PHARMACEUTICAL COMPANY 

 Informational presentations and discussions by industry representatives and others speaking on behalf of a company provide valuable scientific and educational benefits. In connection with such presentations or
discussions, occasional meals (but no entertainment/recreational events) may be offered so long as they: (a) are modest as judged by local standards; and (b) occur in a venue and manner conducive to informational communication and provide
scientific or educational value. Inclusion of a healthcare professional’s spouse or other guests is not appropriate. Offering “take-out” meals or meals to be eaten without a company representative being present (such as
“dine & dash” programs) is not appropriate. 
  

	3.	THIRD-PARTY EDUCATIONAL OR PROFESSIONAL MEETINGS 

  

	 	a.	Continuing medical education (CME) or other third-party scientific and educational conferences or professional meetings can contribute to the improvement of patient care and
therefore, financial support from companies is permissible. Since the giving of any subsidy directly to a healthcare professional by a company may be viewed as an inappropriate cash gift, any financial support should be given to the
conference’s sponsor which, in turn, can use the money to reduce the overall conference registration fee for all attendees. In addition, when companies underwrite medical conferences or meetings other than their own, responsibility for and
control over the selection of content, faculty, educational methods, materials, and venue belongs to the organizers of the conferences or meetings in accordance with their guidelines. 

  

	 	b.	Financial support should not be offered for the costs of travel, lodging, or other personal expenses of non-faculty healthcare professionals attending CME or other third-party
scientific or educational conferences or professional meetings, either directly to the individuals attending the conference or indirectly to the conference’s sponsor (except as set out in section 6 below). Similarly, funding should not be
offered to compensate for the time spent by healthcare professionals attending the conference or meeting. 

  

 2 

	 	c.	Financial support for meals or receptions may be provided to the CME sponsors who in turn can provide meals or receptions for all attendees. A company also may provide meals or
receptions directly at such events if it complies with the sponsoring organization’s guidelines. In either of the above situations, the meals or receptions should be modest and be conducive to discussion among faculty and attendees, and the
amount of time at the meals or receptions should be clearly subordinate to the amount of time spent at the educational activities of the meeting. 

  

	 	d.	A conference or meeting shall mean any activity, held at an appropriate location, where (a) the gathering is primarily dedicated, in both time and effort, to promoting
objective scientific and educational activities and discourse (one or more educational presentations(s) should be the highlight of the gathering), and (b) the main incentive for bringing attendees together is to further their knowledge on the
topic(s) being presented. 

  

	4.	CONSULTANTS 

  

	 	a.	It is appropriate for consultants who provide services to be offered reasonable compensation for those services and to be offered reimbursement for reasonable travel, lodging, and
meal expenses incurred as part of providing those services. Compensation and reimbursement that would be inappropriate in other contexts can be acceptable for bona fide consultants in connection with their consulting arrangements. Token consulting
or advisory arrangements should not be used to justify compensating healthcare professionals for their time or their travel, lodging, and other out-of-pocket expenses. The following factors support the existence of a bona fide consulting arrangement
(not all factors may be relevant to any particular arrangement): 

  

	 	•	 	 a written contract specifies the nature of the services to be provided and the basis for payment of those services; 

  

	 	•	 	 a legitimate need for the services has been clearly identified in advance of requesting the services and entering into arrangements with the prospective
consultants; 

  

	 	•	 	 the criteria for selecting consultants are directly related to the identified purpose and the persons responsible for selecting the consultants have the expertise
necessary to evaluate whether the particular healthcare professionals meet those criteria; 

  

	 	•	 	 the number of healthcare professionals retained is not greater than the number reasonably necessary to achieve the identified purpose; 

 

	 	•	 	 the retaining company maintains records concerning and makes appropriate use of the services provided by consultants; 

  

	 	•	 	 the venue and circumstances of any meeting with consultants are conducive to the consulting services and activities related to the services are the primary focus of
the meeting, and any social or entertainment events are clearly subordinate in terms of time and emphasis. 

  

 3 

	 	b.	It is not appropriate to pay honoraria or travel or lodging expenses to non-faculty and non-consultant attendees at company-sponsored meetings including attendees who participate in
interactive sessions. 

  

	5.	SPEAKER TRAINING MEETINGS 

 It is appropriate for
healthcare professionals who participate in programs intended to recruit and train speakers for company sponsored speaker bureaus to be offered reasonable compensation for their time, considering the value of the type of services provided, and to be
offered reimbursement for reasonable travel, lodging, and meal expenses, when (1) the participants receive extensive training on the company’s drug products and on compliance with FDA regulatory requirements for communications about such
products, (2) this training will result in the participants providing a valuable service to the company, and (3) the participants meet the criteria for consultants (as discussed in part 4.a. above). 
  

	6.	SCHOLARSHIPS AND EDUCATIONAL FUNDS 

 Financial assistance
for scholarships or other educational funds to permit medical students, residents, fellows, and other healthcare professionals in training to attend carefully selected educational conferences may be offered so long as the selection of individuals
who will receive the funds is made by the academic or training institution. “Carefully selected educational conferences” are generally defined as the major educational, scientific, or policy-making meetings of national, regional, or
specialty medical associations. 
  

	7.	EDUCATIONAL AND PRACTICE-RELATED ITEMS 

  

	 	a.	Items primarily for the benefit of patients may be offered to healthcare professionals if they are not of substantial value ($100 or less). For example, an anatomical model for use
in an examination room primarily involves a patient benefit, whereas a VCR or CD player does not. Items should not be offered on more than an occasional basis, even if each individual item is appropriate. Providing product samples for patient use in
accordance with the Prescription Drug Marketing Act is acceptable. 

  

	 	b.	Items of minimal value may be offered if they are primarily associated with a healthcare professional’s practice (such as pens, notepads, and similar “reminder” items
with company or product logos). 

  

	 	c.	Items intended for the personal benefit of healthcare professionals (such as floral arrangements, artwork, music CDs or tickets to a sporting event) should not be offered.

  

 4 

	 	d.	Payments in cash or cash equivalents (such as gift certificates) should not be offered to healthcare professionals either directly or indirectly, except as compensation for bona
fide services (as described in parts 4 and 5). Cash or equivalent payments of any kind create a potential appearance of impropriety or conflict of interest. 

  

	8.	INDEPENDENCE OF DECISION MAKING 

 No grants, scholarships,
subsidies, support, consulting contracts, or educational or practice related items should be provided or offered to a healthcare professional in exchange for prescribing products or for a commitment to continue prescribing products. Nothing should
be offered or provided in a manner or on conditions that would interfere with the independence of a healthcare professional’s prescribing practices. 
  

	9.	ADHERENCE TO CODE 

 Each member company is strongly
encouraged to adopt procedures to assure adherence to this Code. 
 Frequently Asked Questions 
 a. Question 
 Under the Code, may items such as stethoscopes be offered to healthcare professionals? 
 Answer 
 Yes, because these items primarily benefit patients, so long as the
items are not of substantial value and are only occasionally offered to the healthcare professional. Items that are of more than minimal value and do not primarily benefit patients are also not permitted even if they bear a company or product name.

 b. Question 
 Under the Code, may golf balls and sports bags
be provided if they bear a company or product name? 
 Answer 
 No. Golf balls and sports bags, even if of minimal value, do not primarily entail a benefit to patients and are not primarily associated with the healthcare professional’s practice, even if they bear the name of a company or product.

 c. Question 
 Under the Code, may healthcare professionals be
provided with gasoline for their cars if they are provided with product information at the same time? 
  

 5 

 Answer 
 No. Items intended
for the personal benefit of a healthcare professional should not be offered. 
 d. Question 
 The Code says that informational presentations and discussions may be accompanied by occasional, modest meals. What types of presentations and meals would this include? 
 Answer 
 An informational presentation or discussion may be accompanied by a
modest meal provided that the venue and manner of presentation/discussion is conducive to a scientific or educational interchange. For example, if a medical or scientific expert (who is a consultant to or employee of the company) is providing
information about recently obtained study data to an audience of healthcare professionals, this could be done over lunch or dinner at a quiet restaurant providing the meal was of modest value as judged by local standards. 
 Following the same logic, if a sales representative is providing substantial scientific or educational information regarding a company’s products to one or a few
healthcare practitioners, this could also be done during a modest meal which could be at or outside of a physician’s office. 
 However, if the nature
or location of the meal would not facilitate communication of the information, then a meal would not be appropriate. Further, the use of modest meals on more than an occasional basis would not be appropriate. 
 e. Question 
 A representative of Company X provides pizza for the staff of a
medical office. Is this consistent with the Code? 
 Answer 
 This would be consistent with the Code if the representative will provide an informational presentation to the medical staff in conjunction with the meal of modest value, so long as the location of the presentation is conducive to a
scientific or educational communication. Merely dropping off food for the office staff, however, would not be consistent with the Code. 
 f. Question

 A representative of Company X invites physicians to meet to hear a scientific and educational presentation about a new drug at the café at a nearby
bookstore. Coffee and cake are provided by the representative and, following the presentation (which is in small groups), each physician is given a gift certificate for books in the amount of $30. Does this conform to the Code? 
  

 6 

 Answer 
 No. While the
presentation may present scientific or educational information and the coffee and cake may appropriately be provided, an open-ended gift certificate is a cash equivalent. A medical textbook, a book on patient care, or a gift certificate redeemable
solely for a medical textbook or book on patient care could be provided if it is not of substantial value. 
 g. Question 
 Company C invites 30 physicians to a corporate suite at a professional baseball game for a 45-minute scientific and educational presentation followed by a buffet and the
three-hour game. Does this conform to the Code? 
 Answer 
 No. A
modest buffet meal accompanying a scientific or educational would be acceptable. However, the provision of entertainment and/or recreational activities, including entertainment at sporting events in connection with an educational or scientific
presentation or discussion, is inconsistent with the Code. 
 h. Question 
 Under what circumstances would the Code permit a company to provide entertainment or recreational activities directly to healthcare practitioners? 
 Answer 
 Companies may provide modest entertainment or recreational activities to healthcare practitioners in a context where
those practitioners are providing a legitimate service to the companies, such as when they act as bona fide consultants on an advisory board or are trained at a speaker-training meeting. 
 Companies should generally not provide entertainment or recreational activities to healthcare practitioners. Thus, companies should not invite healthcare professionals to sporting events, concerts, or shows, or
provide them with recreational activities such as hunting, fishing, boating, ski trips, or golf outings, even if those entertainment events or recreational activities are used to facilitate informational interchanges between the company
representative and the healthcare professional. Similarly, it would be inappropriate to provide these types of entertainment and recreational events in conjunction with promotional scientific presentations by medical experts. 
 i. Question 
 Company A retains a small group of 15 nationally known
physicians regarding a therapeutic area relevant to company A’s products to advise on general medical and business issues and provide guidance on product development and research programs for those products. These physicians are paid
significant fees, but those fees are typical of the fees paid to thought leaders in this therapeutic area. They normally meet once or twice a year at resort locations to discuss the latest product data, research programs and Company plans for the
product(s). Does this comply with the Code? If it does, is it appropriate to pay for the spouse of the healthcare professional to attend, as well? 
  

 7 

 Answer 
 This arrangement
appears to comply with the Code. The number of advisors seems reasonably small. The advisors seem to have been selected based on their expertise in the areas where advice is needed. While the consultants are paid significant fees, these appear to be
reasonable under the circumstances. Finally, while holding consultant meetings at resort locations is not prohibited, the facilities chosen should be conducive to the services provided as well as reasonable and appropriate to the conduct of the
meeting. 
 It would not be appropriate to pay for the cost of the spouse of the advisor. If the spouse attends, it should be at the cost of the advisor.

 j. Question 
 Company A invites 300 physicians/consultants to
a two-day and one-night speaker-training program at a regional golf resort. All attendees are compensated for their participation and their expenses are reimbursed. Prospective speakers are selected based on recommendations of the Company’s
district managers and an assessment of their qualifications by the Company’s medical or scientific personnel. Each of the attendees is required to sign an agreement in advance covering the services they will provide. They are educated by a
faculty on the full range of data surrounding the disease state and the Company’s drug product, on presentation skills, and on FDA regulatory requirements. The Company plans to use at least 280 participants as speakers over the coming year, and
it needs to train 300 speakers in order to ensure that 280 will actually be available when needed. Training sessions take both days, and the Company provides for a few hours of golf and meals. Does this program conform to the Code? If so, is it
appropriate to pay for a spouse of the healthcare professional, as well? 
 Answer 
 This arrangement appears to comply with the Code. Speaker training is an essential activity because FDA holds companies accountable for the presentations of their speakers. In this case, the participants undergo
extensive training that will result in a valuable service being provided to the company, and the arrangement meets reasonable indicia of a bona fide consulting relationship. While resort locations are not prohibited, the Company may want to consider
whether it would be more appropriate to hold the training session at a non-resort location. In this case, the number of speakers being trained is important; if significantly more participants were trained than were to be used as speakers, this
arrangement would not comply with the Code. 
 The amount of time spent training speakers should be reasonable in relation to the material that has to be
covered. The compensation offered to prospective speakers, including the value of any entertainment, should be evaluated to assure that it is reasonable compensation for that time. 
 It would not be appropriate to pay for the cost of the spouse of the healthcare professional. If the spouse attends, it should be at the cost of the healthcare professional. 
  

 8 

 k. Question 
 A sales
representative invites a physician out for a round of golf and lunch following the golf. The physician is very busy and is difficult to see in her office. The cost of the golf and the lunch combined are $65. Does this comply with the code?

 Answer 
 No. It is inconsistent with the Code to provide
entertainment or recreational activities such as golf. 
  

 9 

 Schedule 4.2 
 Commercialization Plan 
 [To be attached within four weeks after the Execution Date.] 

 Schedule 4.3(b)(ii) 
 ENDO Topical NSAID Products 
 *** 

 Schedule 4.4(d) 
 Description of Target Prescribers 
 *** 

 Schedule 4.12 
 *** 

 Schedule 4.15 
 Example of Monthly Commercialization Report 
  

																			
	Performance - Current Month/YTD
							
	 	 	 	  	Current Month	  	Year to Date	  	 	  	TRx	 	 	 
	 	 	 	  	TRx (000’s)	 	 	TRx Share	  	TRx (000’s)	  	 	  	 	 
		 	 Voltaren Gel Actual
	  	 	99.00	 	 			  	99.00	  	Current Share	  	0.00	%	 	Performance Highlights
								
	 	 	 	  	Current Month	 	 	Year to Date	  	 	  	 	  	 	 	 	 
		 	 Voltaren Gel Net Sales ($000)
	  	$	99,999.0	 	 	$	99,999.0	  		  		  			 	
	
	 Prescription Activity - Current Month
  

	 	 	 	  	TOTAL	 	 	Rheums	  	PCPs	  	Pain Spec	  	Surgeons	 	 	 
	TRx	 	 Volume
	  	 	99,999	 	 	 	9,999	  	999	  	9,999	  	999	 	 	 Prescription Highlights -Current Month

		 	 Share
	  	 	#REF!	 	 	 	#REF!	  	#REF!	  	#REF!	  	#REF!	 	 	
		 	 TRx share point change from previous mo
	  	 	#REF!	 	 	 	#REF!	  	#REF!	  	#REF!	  	#REF!	 	 	
								
		 		  	 	TOTAL	 	 	 	HEM/ONCs	  	PCPs	  	Pain Spec	  	Surgeons	 	 	
	
	 Prescription Activity - Voltaren Gel - Year to Date
  

	 	 	 	  	TOTAL	 	 	Rheums	  	PCPs	  	Pain Spec	  	Surgeons	 	 	 
	TRx	 	 Volume
	  	 	9,999	 	 	 	999	  	9,999	  	9,999	  	9,999	 	 	Prescription Highlights -YTD
		 	 Share
	  	 	0.72	%	 	 	#REF!	  	#REF!	  	#REF!	  	#REF!	 	 	
	
	 Prescription Activity - Opana ER - Method of Payment - Year to Date
  

	 	 	 	  	Voltaren	 	 	 	  	 	  	 	  	 	 	 	 
	TRx YTD	 	 % Third Party
	  	 	99.0	%	 			  		  		  			 	Prescription Highlights -Method of Payment
		 	 % Cash
	  	 	99.0	%	 			  		  		  			 	
		 	 % Medicaid
	  	 	99.0	%	 			  		  		  			 	
		 	 Total TRx
	  	 	99,999	 	 			  		  		  			 	
	
	 Voltaren Gel Reach and Frequency 
  

	 	 	 	  	Voltaren Gel	 	 	 	  	 	  	 	  	 	 	 	 
		 	 Total Voltaren Details to Call Plan Phys
	  	 	99	 	 	 	#REF!	  		  		  			 	Detailing Highlights
		 	 # Call Plan Physicians Total
	  	 	99	 	 	 	#REF!	  		  		  			 	
		 	 # Call Plan Physicians Reached
	  	 	99	 	 	 	#REF!	  		  		  			 	
		 	 % Call Plan Physicians Reached
	  	 	100.0	%	 	 	#REF!	  		  		  			 	
		 	 Call Plan Physician Detail Frequency
	  	 	1.0	 	 	 	#REF!	  		  		  			 	

 Monthly Highlights 

			
	 	 	0
		
		 	Data for month ending Dec-07
		
	Detail Reach & Frequency	 	Month 18

  

															
	 National Monthly Voltaren Gel
 Detail Reach & Frequency
	  	Jul-07	  	Aug-07	  	Sep-07	  	Oct-07	  	Nov-07	  	Dec-07	  	Cumulative YTD
Total
	 Total Details to Call Plan Physicians
	  	99	  	99	  	99	  	99	  	99	  	99	  	290,707
	 Total Call Plan Physicians Reached
	  	99	  	99	  	99	  	99	  	99	  	99	  	
	 Call Plan Detail Reach (% Physicians)
	  		  		  		  		  		  		  	
	 Call Plan Detail Frequency
	  	1.0	  	1.0	  	1.0	  	1.0	  	1.0	  	1.0	  	
	 Total Details to Non-Call Plan Physicians
	  	99	  	99	  	99	  	99	  	99	  	99	  	41,275

 Source: Endo’s Internal SFA System  
 Opana Reach and Frequency 

			
		 	0
		
		 	Data for month ending Dec-07
		
	National Total	 	Month 18

  

																																	
	  	 	 Monthly
 Actual vs. Plan
	 	Jul-07	 	 	Aug-07	 	 	Sep-07	 	 	Oct-07	 	 	Nov-07	 	 	Dec-07	 	 	 	 	Cumulative
YTD Total	 
	TRx Vol (000)	 	 Actual TRx Volume
	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	#	 	 	99.00	 
	 	 Forecast (LBE)
	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 		 	 	99.00	 
	 	 Percent of LBE
	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 		 	 	99.0	%
	 	 Plan TRx Volume
	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 		 	 	99.00	 
	 	 Percent of Plan
	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 		 	 	99.0	%
										
	TRx Share	 	 Actual TRx Share
	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 		 			
	 	 Forecast (LBE)
	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 		 			
	 	 Plan TRx Share
	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 		 			
	 	 Share Point Difference From Plan
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 		 			
										
	Net Sales ($000)	 	 Actual Net Sales
	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 	#	 	$	99	 
	 	 Plan Net Sales
	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 		 	$	99	 
	 	 Percent of Plan
	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 		 	 	0.0	%
										
	  	 	 Monthly
 Actual vs. Plan
	 	Jul-07	 	 	Aug-07	 	 	Sep-07	 	 	Oct-07	 	 	Nov-07	 	 	Dec-07	 	 	 	 	Cumulative
YTD Total	 
	TRx Vol (000)	 	 Actual TRx Volume
	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 		 	 	99.00	 
	 	 Forecast (LBE)
	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 		 	 	99.00	 
	 	 Percent of LBE
	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	99.0	%	 	 	99.0	%	 		 	 	99.0	%
	 	 Plan TRx Volume
	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 	 	99.00	 	 		 	 	99.00	 
	 	 Percent of Plan
	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 		 	 	100.0	%
										
	TRx Share	 	 Actual TRx Share
	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 		 			
	 	 Forecast (LBE)
	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 		 			
	 	 Share Point Difference From LBE
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 		 			
	 	 Plan TRx Share
	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 		 			
	 	 Share Point Difference From Plan
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 		 			
										
	Net Sales ($000)	 	 Actual Net Sales
	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 	#	 	$	99	 
	 	 Plan Net Sales
	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 	$	99	 	 	#	 	$	99	 
	 	 Percent of Plan
	 	 	99.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 		 	 	0.0	%
										
	  	 	 Monthly TRx Volume
 By Method of Payment
	 	Jul-07	 	 	Aug-07	 	 	Sep-07	 	 	Oct-07	 	 	Nov-07	 	 	Dec-07	 	 	 	 	Cumulative
YTD Total	 
	TRx Volume	 	 Cash
	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 		 	 	99	 
	 	 Third Party
	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 		 	 	99	 
	 	 Medicaid
	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 		 	 	99	 
	 	 Total
	 	 	99	 	 	 	99	 	 	 	297	 	 	 	297	 	 	 	297	 	 	 	297	 	 		 	 	297	 
										
	% TRx Volume	 	 Cash
	 	 	99.0	%	 	 	99.0	%	 	 	33.3	%	 	 	33.3	%	 	 	33.3	%	 	 	33.3	%	 		 	 	33.3	%
	 	 Third Party
	 	 	100.0	%	 	 	100.0	%	 	 	33.3	%	 	 	33.3	%	 	 	33.3	%	 	 	33.3	%	 		 	 	33.3	%
	 	 Medicaid
	 	 	100.0	%	 	 	100.0	%	 	 	33.3	%	 	 	33.3	%	 	 	33.3	%	 	 	33.3	%	 		 	 	33.3	%
										
	TRx Grwth (from Prev Mo)	 	 Cash
	 				 	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 		 			
	 	 Third Party
	 				 	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 		 			
	 	 Medicaid
	 				 	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 		 			

 Source: Wolters Kluwer Health’s PHAST Prescription Audit  
 National Total-Opana 

			
		 	0
		
		 	Data for month ending Dec-07
		
	National Total - Voltaren Gel - Class of Trade	 	Month 18

  

																															
	  	 	 Monthly Voltaren Sales (WAC $)
 By Class of Trade
	  	Jul-07	 	 	Aug-07	 	 	Sep-07	 	 	Oct-07	 	 	Nov-07	 	 	Dec-07	 	 	Cumulative YTD
Total	 
	Sales (WAC $)	 	 Retail
	  	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	22,230,855	 
	 	 Mail Order
	  	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	556,620	 
	 	 Hospitals
	  	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	479,312	 
	 	 Long Term Care Facilities
	  	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	8,552	 
	 	 Long Term Care Providers
	  	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	999	 	 	$	199,342	 
	 	 All Others
	  	$	203,411	 	 	$	243,010	 	 	$	253,914	 	 	$	318,198	 	 	$	296,633	 	 	$	265,264	 	 	$	1,887,310	 
	 	 Total
	  	$	208,406	 	 	$	248,005	 	 	$	258,909	 	 	$	323,193	 	 	$	301,628	 	 	$	270,259	 	 	$	25,361,991	 
									
	% Sales	 	 Retail
	  	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	87.7	%
	 	 Mail Order
	  	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	2.2	%
	 	 Hospitals
	  	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	1.9	%
	 	 Long Term Care Facilities
	  	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	0.0	%
	 	 Long Term Care Providers
	  	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	99.0	%	 	 	0.8	%
	 	 All Others
	  	 	97.6	%	 	 	98.0	%	 	 	98.1	%	 	 	98.5	%	 	 	98.3	%	 	 	98.2	%	 	 	7.4	%
	 	 Total
	  	 	592.6	%	 	 	593.0	%	 	 	593.1	%	 	 	593.5	%	 	 	593.3	%	 	 	593.2	%	 	 	100.0	%
									
	Sales Growth (from Previous Month)	 	 Retail
	  	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 	 	99.00	%	 			
	 	 Mail Order
	  	 	-99.26	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 	 	99.00	%	 			
	 	 Hospitals
	  	 	-98.91	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 			
	 	 Long Term Care Facilities
	  	 	35.92	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 			
	 	 Long Term Care Providers
	  	 	-97.48	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 			
	 	 All Others
	  	 	202.78	%	 	 	19.47	%	 	 	4.49	%	 	 	25.32	%	 	 	-6.78	%	 	 	-10.58	%	 			
	 	 Total
	  	 	-96.09	%	 	 	19.00	%	 	 	4.40	%	 	 	24.83	%	 	 	-6.67	%	 	 	-10.40	%	 			

 Source: Wolters Kluwer Health’s PHAST Prescription/Institutional Audit 
 National Total-Opana-COT 

			
		 	0
		
		 	Data for month ending Dec-07
		
	National Total -Market Products - TRx Volume	 	Month 18

  

																								
	  	 	 Monthly NSAID Market Product TRxs
	  	Jul-07	 	 	Aug-07	 	 	Sep-07	 	 	Oct-07	 	 	Nov-07	 	 	Dec-07	 	 	Cumulative YTD
Total	 
	TRxs	 	 Product x
	  	99	 	 	99	 	 	99	 	 	99	 	 	99	 	 	99	 	 	79,889	 
	 	 Product y
	  	99	 	 	99	 	 	99	 	 	99	 	 	99	 	 	99	 	 	288,972	 
	 	 Product z
	  	99	 	 	99	 	 	99	 	 	99	 	 	99	 	 	99	 	 	318,171	 
	 	 Market Total
	  	870,255	 	 	901,964	 	 	815,389	 	 	900,286	 	 	870,578	 	 	861,028	 	 	11,051,941	 
									
	TRx Share	 	 Product x
	  	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.7	%
	 	 Product y
	  	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	2.6	%
	 	 Product z
	  	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	2.9	%
	 	 Market Total
	  	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	6.2	%
									
	  	 	 Monthly NSAID Market Product TRxs
	  	Jul-07	 	 	Aug-07	 	 	Sep-07	 	 	Oct-07	 	 	Nov-07	 	 	Dec-07	 	 	Current YTD vs.
Prior YTD	 
	TRx Growth (from Previous Month)	 	 Product x
	  	-99.4	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 		
	 	 Product y
	  	-99.8	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	-56.5	%
	 	 Product z
	  	-99.8	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	-48.3	%
	 	 Market Total
	  	-11.1	%	 	3.6	%	 	-9.6	%	 	10.4	%	 	-3.3	%	 	-1.1	%	 	1.6	%
									
	TRx Share Change (from Previous Month)	 	 Product x
	  	(1.73	)	 	(0.00	)	 	0.00	 	 	(0.00	)	 	0.00	 	 	0.00	 	 		
	 	 Product y
	  	(4.70	)	 	(0.00	)	 	0.00	 	 	(0.00	)	 	0.00	 	 	0.00	 	 		
	 	 Product z
	  	(5.68	)	 	(0.00	)	 	0.00	 	 	(0.00	)	 	0.00	 	 	0.00	 	 		
	 	 Market Total
	  	(12.11	)	 	(0.00	)	 	0.00	 	 	(0.00	)	 	0.00	 	 	0.00	 	 		

 Source: Wolters Kluwer Health’s PHAST Prescription Audit;  
 TRx Volume-ER Mkt Products 

			
	Volume by State	 	0
	 	  
 Data for month ending Dec-07

	 	  
 Month 18

  

																											
	  	 	 TRx Volume by State
	 	State
Code	 	Total TRx
Volume
Current
Month	 	Total TRx
Volume
Current Month	 	 	Total TRx
Volume
YTD	 	Total TRx
Volume
YTD	 	 	State
Quintile
for YTD TRx
Volume	 	Medicaid TRx
Volume
Current Month	 	% Medicaid
TRx Volume
Current Month	 	 	Medicaid TRx
Volume
YTD	 	% Medicaid
TRx Volume
YTD	 
	 State
	 	 Alaska
	 	AK	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Alabama
	 	AL	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Arkansas
	 	AR	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Arizona
	 	AZ	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 California
	 	CA	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Colorado
	 	CO	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Connecticut
	 	CT	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 District of Columbia
	 	DC	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Delaware
	 	DE	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Florida
	 	FL	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Georgia
	 	GA	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Hawaii
	 	HI	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Iowa
	 	IA	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Idaho
	 	ID	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Illinois
	 	IL	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Indiana
	 	IN	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Kansas
	 	KS	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Kentucky
	 	KY	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Louisiana
	 	LA	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Massachusetts
	 	MA	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Maryland
	 	MD	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Maine
	 	ME	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Michigan
	 	MI	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Minnesota
	 	MN	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Missouri
	 	MO	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Mississippi
	 	MS	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Montana
	 	MT	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 North Carolina
	 	NC	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 North Dakota
	 	ND	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Nebraska
	 	NE	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 New Hampshire
	 	NH	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 New Jersey
	 	NJ	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 New Mexico
	 	NM	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Nevada
	 	NV	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 New York
	 	NY	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Ohio
	 	OH	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Oklahoma
	 	OK	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Oregon
	 	OR	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Pennsylvania
	 	PA	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Rhode Island
	 	RI	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 South Carolina
	 	SC	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 South Dakota
	 	SD	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Tennessee
	 	TN	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Texas
	 	TX	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Utah
	 	UT	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Virginia
	 	VA	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Vermont
	 	VT	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Washington
	 	WA	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Wisconsin
	 	WI	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 West Virginia
	 	WV	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	99	 	2.0	%
	 	 Wyoming
	 	WY	 	99	 	2.0	%	 	99	 	2.0	%	 	1	 	99	 	2.0	%	 	—  	 	0.0	%
		 	 Total
	 		 	5,049	 	100.0	%	 	5,049	 	100.0	%	 		 	5,049	 	100.0	%	 	4,950	 	100.0	%

 Source: Wolters Kluwer Health’s PHAST Prescription Audit; TRxs for “ARMED FORCES: AREA EUROPE”
have been excluded from state-level data 
 The quintiles are calculated by dividing the total YTD TRXs into five equal buckets (each representing 20% of
the YTD TRXs). States are then sorted by total YTD TRxs and a cumulative YTD TRxs value is computed for each state. States with the largest contributions up to 20% of cumulative YTD TRxs are assigned quintile 5 (highest institutional sales). Then
states contributing to the next 21-40% of cumulative YTD TRxs are assigned quintile 4; states contributing to the next 41-60% of cumulative YTD TRxs are assigned quintile 3; states contributing to the next 61-80% of cumulative YTD TRxs are assigned
quintile 2; states contributing to the last 81-100% are assigned quintile 1. States with no YTD TRxs are assigned quintile 0. 
 Opana Total
TRx Volume by State 

 Schedule 5.2 
 Specifications 
 *** 

 Schedule 5.4(a) 
 Maximum Supply Capacity 
  

																											
	 	  	On-Hand	  	Planned Purchase Orders	  	Available Capacity in Units
	 	  	Dec	  	Jan	  	Feb	  	Mar	  	Apr	  	May	  	Jun	  	Jul	  	Aug	  	Sep	  	Oct	  	Nov	  	Dec
														
	 20g - Firm PO’s/Capacity
	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***
														
	 100g - Firm PO’s/Capacity
	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***	  	***

 Schedule 5.4(e) 
 *** 

 Schedule 5.5(a) 
 *** 
 *** 

 Schedule 7.2(d) 
 Third Party Expert Dispute Resolution Procedures 
 In the event that there is a matter (a
“Disputed Matter”) with respect to which this Agreement provides for decision-making in accordance with these Third Party Dispute Resolution Procedures, such Disputed Matter shall be resolved in accordance with the following procedures.

 The Parties shall select, no later than ten (10) Business Days following written notice of the Party initiating the procedures to the other Party of
its election to initiate these procedures, a mutually acceptable Qualified Expert to make a determination which shall constitute the final determination in respect of such Disputed Matter, such determination to be made within forty-five
(45) days. If the Parties are unable to agree upon a mutually acceptable Qualified Expert during such ten (10) Business Day period, each Party shall, within a five (5) Business Day period following such ten (10) Business Day
period, notify the other Party of the name of a Qualified Expert that such Party designates as its expert hereunder. Each of the two experts will make a determination in respect of such Disputed Matter within sixty (60) days. If the
determinations of the two experts are in agreement, such agreed upon determination shall constitute the final determination of such Disputed Matter. If the determinations of the two experts are not in agreement, the Parties shall cause the two
experts to jointly appoint a third expert within ten (10) Business Days, which third expert shall have final and sole authority to make a final determination in respect of such Disputed Matter. The determination in respect of such Disputed
Matter shall be made by the expert(s) taking into account all relevant factors. 
 Each Party shall
pay (i) the fees of its expert and (ii) if there is only one expert or a third expert is appointed, one-half ( 1/2) of
the fees of any such expert. 
 For purposes hereof, a “Qualified Expert” shall mean a qualified firm of national reputation with recognized
expertise in respect of the matter in dispute and expertise in the pharmaceuticals industry in the United States. 

 Schedule 13.3(e) 
 ENDO Due Diligence Request List 
 Voltaren® Gel 
 Due Diligence Request List 
 January 17, 2008 
 Set forth
below is a preliminary list of information and documents to be reviewed in connection with the potential license of Voltaren Gel and certain assets related to the distribution, marketing and sale of Voltaren Gel (the “Novartis Consumer Health
Business”) by Endo Pharmaceuticals Inc. (“Endo”). Please note that this is a preliminary list and that additional documents may be required as the review progresses. References contained herein to “material” items shall mean
such items that are material to the Novartis Consumer Health (“NCH”) Business. 
 Because the list is extensive (in order to cover
all potentially significant matters related to the NCH Business), we recognize that many items included in the list below may not exist or be applicable. If this is the case, please provide a list of items (and the corresponding item number from
this list) that do not exist or are not applicable to Voltaren Gel and the NCH Business. Further, we understand that some of the information requested below may already have been provided to Endo in connection with its preliminary discussions with
NCH. If so, please indicate that this is the case. 
 Finally, we request that, unless otherwise indicated, you please provide materials for
the past five years from the NCH files. 
 ENDO ASSIGNMENTS LISTED BY COLOR 
 Legal = BLACK 
 Marketing = BLUE 

Tech Ops/QA = RED 
 Clinical/Safety = GREEN

 Regulatory = PURPLE 
  

	1.	CONTRACTS 

  

	 	a.	Marketing Agreements (and agencies of record) 

  

	 	b.	Marketing Service Agreements (samples, supplies, services, etc.) 

  

	 	c.	Distribution Agreements and Agreements with wholesalers, specialty distribution centers, etc. 

  

	 	d.	Research and Development Agreements 

  

 1 

	 	e.	Any agreement requiring the consent of a third party to the proposed transaction 

  

	 	f.	All other material contracts and agreements and which relate to the NCH Business, including contracts outside the ordinary course of business, not otherwise covered by this request

  

	2.	INTELLECTUAL PROPERTY 

  

	 	a.	Complete list of all intellectual property covering or related to Voltaren Gel (whether owned or used by NCH), including all: 

  

	 	i.	Patents and Patent Applications (including file histories if not publicly available) — Indicate, for each: title of invention; patent/application number; inventor; date
issued/filed; country; record owner 

  

	 	ii.	Invention Disclosures — Indicate for each: identification number; title; inventor; subject matter 

  

	 	iii.	List of freedom-to-operate searches or opinions 

  

	 	iv.	Trademarks 

  

	 	(1)	Registered Trademarks and Pending Applications in the United States — Indicate for each: mark, class(es); registration/application number; date registered/filed; country;
record owner 

  

	 	(2)	Internet Domain Names 

  

	 	b.	Identification of any claims of infringement, misappropriation, or other violation of rights with respect to Voltaren Gel 

  

	 	c.	Copies of documents reflecting any existing or unreleased security interests, liens or encumbrances on intellectual property (whether or not recorded or recordable in any registry)
covering or related to Voltaren Gel 

  

	3.	LITIGATION AND GOVERNMENT INQUIRIES 

  

	 	a.	A summary of all litigation, proceedings, investigations (by any federal, state, or local agency), claims and inquiries currently pending or threatened relating to Voltaren Gel

  

 2 

	4.	REGULATORY FILINGS AND CORRESPONDENCE  

  

	 	a.	FDA approval letter and all associated correspondence (e.g., memorandum, meeting minutes, letters, or other documents recording any conversation, telephone discussion, meeting or
other contact with FDA regarding Voltaren Gel) 

  

	 	b.	All FDA correspondence related to post-approval commitments plus an update of the current status of each, including: 

  

	 	i.	Rationale for safe use of new excipient 

  

	 	ii.	Risk assessment for photodegradants 

  

	 	c.	All FDA correspondence related to an OTC switch of Voltaren Gel 

  

	 	d.	All FDA correspondence related to pediatric exclusivity and/or a pediatric indication 

  

	 	e.	All FDA correspondence related to the requirements for approval of a generic equivalent or demonstration of bioequivalence to Voltaren Gel 

  

	 	f.	All labeling and packaging components 

  

	 	g.	Any DDMAC correspondence 

  

	 	h.	Copies of any correspondence from the FDA, EMEA or any similar regulatory agency related to the advertising, marketing or promotional practices in connection with Voltaren Gel, and
any responses and follow-up to such correspondence 

  

	 	i.	Copies of any “Warning Letters” or equivalent correspondence from the FDA European Medicines Evaluation Agency (“EMEA”) or any similar regulatory agency, and any
responses and follow-up to such correspondence relating to Voltaren Gel 

  

	 	j.	Copies of any product recall, similar notices or warnings or “dear doctor” or healthcare professional letters issued that relate to Voltaren Gel, and any correspondence
with the FDA, EMEA or any similar regulatory agency related to such communications 

  

	 	k.	Copies of any FDA Form 483s or other correspondence from the FDA, EMEA or similar regulatory agency related to the safety, manufacture, or environmental matters of Voltaren Gel, the
facilities where Voltaren Gel is manufactured or stored, or NCH’s manufacturing compliance 

  

 3 

	5.	RESEARCH & DEVELOPMENT 

 Product
Information 
  

	 	a.	List of Standard Answers for product in Product Information Database 

  

	 	b.	Common questions received through Product Information regarding Voltaren Gel 

  

	 	c.	Key publications regarding Voltaren Gel (including clinical studies in peer-reviewed journals, posters, abstracts, manuscripts, and publication strategy) 

Pharmacovigilance 
  

	 	a.	Last two years periodic safety reports 

  

	 	b.	Listing of all adverse events received for Voltaren Gel over the last year organized by body system 

  

	 	c.	Listing of all serious, unexpected AE’s (15-day reports) for the current time period (time from end of last periodic safety report to current) 

 Clinical Trials and Medical Affairs 
  

	 	a.	ISE and ISS 

  

	 	b.	Current Investigator’s Brochure 

  

	 	c.	All Clinical Study Reports including a table of contents for all human trials 

  

	 	d.	Post-marketing (Phase IV) protocols, CSR’s, and list of investigators 

  

	 	e.	Key Investigator Initiated Study Programs (Grant-in-Aid) for Voltaren Gel if any 

  

	 	f.	A list of all ongoing studies 

  

	 	g.	Medical Science Liaison plans 

  

	 	h.	Database of KOLs 

  

	 	i.	Any CME/educational activities and programs 

  

	6.	MANUFACTURING & QUALITY ASSURANCE 

  

	 	a.	Manufacturing, packaging and testing of product 

  

 4 

	 	i.	Location(s) for all production, packaging, testing, or distribution site(s) 

  

	 	 ii.
	 Are any aspects of manufacture of this product contracted to a 3rd party? 

  

	 	 iii.
	 Are there any 3rd
party manufacturing, packaging, testing, distribution or quality agreements? If yes, what are the terms? 

  

	 	b.	Manufacturing and Packaging Process and Related Information 

  

	 	i.	Formulation and process 

  

	 	ii.	Executed Batch records 

  

	 	iii.	Release testing and analytical methods/ stability testing/monographs/specifications 

  

	 	iv.	Validation documents 

  

	 	(1)	Validation master plans, SOPs and IQ/OQ 

  

	 	(2)	Process and Cleaning Validation Reports 

  

	 	(3)	Method validation reports 

  

	 	v.	Process flow diagram with narrative 

  

	 	vi.	Production Performance Metrics (yields and variances) 

  

	 	vii.	Manufacturing equipment list 

  

	 	vii.	Capacity constraints (manufacturing, packaging, or testing) 

  

	 	viii.	Costs of Goods 

  

	 	(1)	API cost 

  

	 	ix.	API 

  

	 	(1)	Vendor certification and audit reports 

  

	 	x.	Raw material list 

  

	 	(1)	Vendor certification program and audit reports 

  

	 	c.	Detail of Inventory Status 

  

	 	i.	Quantity of product on hand (# of lots and units for both trade and samples) 

  

	 	ii.	Shelf life of inventory on hand (lot #’s and exp. date) 

  

	 	iii.	Has secondary packaging been completed? 

  

	 	iv.	Location of inventory 

  

	 	d.	Product Information 

  

	 	i.	Approved label 

  

	 	ii.	Shelf life 

  

	 	iii.	Approved package configurations with supportive stability data 

  

	 	iv.	Stability Data 

  

	 	(1)	All conditions plus freeze/thaw data 

  

	 	e.	Quality Data and Documentation 

  

	 	i.	Quality Performance Metrics 

  

	 	(1)	Release Metrics 

  

 5 

	 	(2)	QIR’s (Quality Investigation Reports) 

  

	 	ii.	Annual Product Reviews for the last five years 

  

	 	iii.	Quality Assurance Programs 

  

	 	(1)	Deviations 

  

	 	(2)	Investigations 

  

	 	(3)	Change Control 

  

	 	iv.	Lot File Index 

  

	 	(1)	Example of one lot file 

	 	v.	Internal Audit Reports 

  

	 	vi.	Schedule of External Suppliers Audited 

  

	 	vii.	Complaint 

  

	7.	MARKETING & SALES 

  

	 	a.	Marketing and Business Plans for Voltaren Gel 

  

	 	b.	All Sales Training Materials (including schedule, preceptorships, etc.) 

  

	 	c.	All Promotional Material relating to Voltaren Gel – including: 

  

	 	i.	Copies of all marketing materials being prepared for DDMAC review 

  

	 	d.	Internal and external Market Research studies including: 

  

	 	i.	All physician and patient research 

  

	 	ii.	Payor research 

  

	 	iii.	Message testing for marketing materials 

  

	 	iv.	Concept testing for marketing materials 

  

	 	v.	Ad agency presentations and options evaluated for professional promotion campaign. What options were NOT pursued? 

  

	 	e.	Branding and Style Guide for Voltaren Gel 

  

	 	f.	Sales Forecast, both demand (patient and Rx)- and revenue-based 

  

	 	g.	Pricing studies and rationale 

  

	 	h.	Trade stocking plans 

  

	 	i.	OTC switch analyses, strategies, and plan 

  

	 	j.	P&L showing intended selling, advertising, and promotion spend by year 

  

	 	k.	ROI analyses or other assessments done for DTC advertising 

  

 6 

 Schedule 13.3(f) 
 NOVARTIS *** Products Currently in Development 
 ***

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