Document:

Purchase and Sale Agreement, dated as of May 3, 2004

  
 Exhibit 10.3

  
 Execution Version 
  
 PURCHASE AND SALE AGREEMENT 
  
 dated as of 
  
 May 3, 2004 
  
 among 
  
 PFIZER INC., 
  
 PFIZER PHARMACEUTICALS LLC 
  
 GALEN HOLDINGS
PUBLIC LIMITED COMPANY 
  
 and 
  
 WARNER CHILCOTT COMPANY, INC. 

  
 Table of Contents

  

					
	 	  	 	  	Page

	 ARTICLE I DEFINITIONS AND TERMS
	  	1
			
	 Section 1.1.
	  	 Definitions
	  	1
			
	 Section 1.2.
	  	 Other Definitional Provisions
	  	7
		
	 ARTICLE II PURCHASE AND SALE
	  	8
			
	 Section 2.1.
	  	 Purchase and Sale of Assets of the Facility
	  	8
			
	 Section 2.2.
	  	 Consents
	  	9
			
	 Section 2.3.
	  	 Excluded Assets
	  	9
			
	 Section 2.4.
	  	 Assumption of Certain Liabilities
	  	10
			
	 Section 2.5.
	  	 Retained Liabilities
	  	11
			
	 Section 2.6.
	  	 Purchase Price
	  	12
			
	 Section 2.7.
	  	 Allocation of the Purchase Price
	  	12
			
	 Section 2.8.
	  	 Risk of Loss
	  	12
			
	 Section 2.9.
	  	 Joint Purchasing Arrangements
	  	12
		
	 ARTICLE III
	  	13
			
	 Section 3.1.
	  	 Closing
	  	13
		
	 ARTICLE IV CONDITIONS TO CLOSING
	  	14
			
	 Section 4.1.
	  	 Conditions to the Obligations of Purchaser and the Sellers
	  	14
			
	 Section 4.2.
	  	 Conditions to the Obligations of Purchaser
	  	14
			
	 Section 4.3.
	  	 Conditions to the Obligations of the Sellers
	  	15
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE SELLERS
	  	15
			
	 Section 5.1.
	  	 Organization
	  	15
			
	 Section 5.2.
	  	 Authority; Binding Effect
	  	15
			
	 Section 5.3.
	  	 Non-Contravention
	  	16

					
	 Section 5.4.
	  	 Required Consents
	  	16
			
	 Section 5.5.
	  	 Licenses and Permits
	  	16
			
	 Section 5.6.
	  	 Governmental Authorization
	  	16
			
	 Section 5.7.
	  	 Financial Information
	  	16
			
	 Section 5.8.
	  	 Conduct of Business
	  	16
			
	 Section 5.9.
	  	 No Litigation
	  	17
			
	 Section 5.10.
	  	 Compliance with Laws
	  	18
			
	 Section 5.11.
	  	 Environmental Matters
	  	18
			
	 Section 5.12.
	  	 Material Contracts
	  	19
			
	 Section 5.13.
	  	 Real Property
	  	19
			
	 Section 5.14.
	  	 Employee Benefits
	  	,21
			
	 Section 5.15.
	  	 Taxes
	  	21
			
	 Section 5.16.
	  	 Brokers
	  	22
			
	 Section 5.17.
	  	 Sufficiency of and Title to the Purchased Assets
	  	22
			
	 Section 5.18.
	  	 Employees
	  	22
			
	 Section 5.19.
	  	 Disclaimer
	  	23
		
	 ARTICLE VI REPRESENTATIONS AND WARRANTIES OF PURCHASER AND GALEN
	  	23
			
	 Section 6.1.
	  	 Organization
	  	23
			
	 Section 6.2.
	  	 Authority; Binding Effect
	  	23
			
	 Section 6.3.
	  	 Non-Contravention
	  	24
			
	 Section 6.4.
	  	 Governmental Authorization
	  	24
			
	 Section 6.5.
	  	 Financial Capability
	  	24
			
	 Section 6.6.
	  	 Brokers
	  	24
		
	 ARTICLE VII COVENANTS
	  	24
			
	 Section 7.1.
	  	 Information and Documents; Confidentiality
	  	24

					
	 Section 7.2.
	  	 Conduct of Business
	  	25
			
	 Section 7.3.
	  	 Reasonable Best Efforts; Certain Governmental Matters
	  	25
			
	 Section 7.4.
	  	 Tax Matters
	  	26
			
	 Section 7.5.
	  	 Employees and Employee Benefits
	  	27
			
	 Section 7.6.
	  	 Limits on Certain Solicitation
	  	30
			
	 Section 7.7.
	  	 Insurance
	  	30
			
	 Section 7.8.
	  	 Notification of Certain Matters
	  	30
			
	 Section 7.9.
	  	 Bulk Transfer Laws
	  	31
			
	 Section 7.10.
	  	 Trade Notification
	  	31
			
	 Section 7.11
	  	 Transitional Services Agreement
	  	31
			
	 Section 7.12.
	  	 Transitional Supply Agreement
	  	31
			
	 Section 7.13.
	  	 Access to Information
	  	31
		
	 ARTICLE VII INDEMNIFICATION
	  	31
			
	 Section 8.1.
	  	 Indemnification by the Sellers
	  	31
			
	 Section 8.2.
	  	 Indemnification by Purchaser
	  	32
			
	 Section 8.3.
	  	 Notice of Claims
	  	32
			
	 Section 8.4.
	  	 Third Party Claims
	  	33
			
	 Section 8.5.
	  	 Expiration
	  	33
			
	 Section 8.6.
	  	 Certain Limitations
	  	34
			
	 Section 8.7.
	  	 Losses Net of Other Indemnities, Etc.
	  	34
			
	 Section 8.8.
	  	 Sole/Remedy/Waiver
	  	35
			
	 Section 8.9.
	  	 Indemnification Procedures for Remedial Actions on Purchased Assets
	  	35
			
	 Section 8.10.
	  	 Limitation on Indemnification for Scheduled Environmental Commitments and Third Party Claims for Remedial Action
	  	37
			
	 Section 8.11.
	  	 Tax Treatment
	  	37

					
			
	 Section 8.12.
	  	 No Consequential Damages
	  	37
		
	 ARTICLE IX TERMINATION
	  	37
			
	 Section 9.1.
	  	 Termination
	  	37
			
	 Section 9.2.
	  	 Effect of Termination
	  	38
		
	 ARTICLE X MISCELLANEOUS
	  	38
			
	 Section 10.1.
	  	 Notices
	  	38
			
	 Section 10.2.
	  	 Amendment; Waiver
	  	39
			
	 Section 10.3.
	  	 Assignment
	  	39
			
	 Section 10.4.
	  	 Entire Agreement
	  	39
			
	 Section 10.5.
	  	 Fulfillment of Obligations
	  	39
			
	 Section 10.6.
	  	 Parties in Interest
	  	40
			
	 Section 10.7.
	  	 Public Disclosure
	  	40
			
	 Section 10.8.
	  	 Return of Information
	  	40
			
	 Section 10.9.
	  	 Expenses
	  	40
			
	 Section 10.10.
	  	 Schedules
	  	40
			
	 Section 10.11.
	  	 Governing Law; Jurisdiction
	  	40
			
	 Section 10.12.
	  	 Counterparts
	  	41
			
	 Section 10.13.
	  	 Headings
	  	41
			
	 Section 10.14.
	  	 Severability
	  	41

 List of Schedules 
  

			
	 1.1(a)
	  	 Approved Employee

	 1.1(b)
	  	 Financial Statements

	 1.1(c)
	  	 Knowledge of Pfizer

	 1.1(d)
	  	 Scheduled Environmental Commitments

	 2.1(b)
	  	 Equipment

	 2.1(c)
	  	 Assumed Contracts

	 2.3
	  	 Retained Equipment

	 2.7
	  	 Allocation of the Purchase Price

	 5.4(a)
	  	 Required Consents

	 5.5
	  	 Permits

	 5.6
	  	 Governmental Authorization (Sellers)

	 5.8
	  	 Conduct of Business

	 5.9
	  	 Litigation

	 5.10
	  	 Compliance with Laws

	 5.11
	  	 Environmental Matters

	 5.11(e)
	  	 Environmental Reports

	 5.12
	  	 Material Contracts

	 5.13(a)
	  	 Owned Real Property

	 5.13(b)
	  	 Leased Real Property

	 5.13(c)
	  	 Exceptions to Title

	 5.13(f)
	  	 Owned Real Property – Exceptions to Compliance with Law

	 5.18(a)(i)
	  	 Employees over $100,000

	 5.18(a)(ii)
	  	 Employees

	 5.18(a)(iii)
	  	 Wage Rates of Non-Salaried Employees

	 5.18(b)
	  	 Inactive Employees

	 5.18(c)
	  	 Employment Litigation

	 6.4
	  	 Governmental Authorization (Purchaser)

	 7.5(a)(i)
	  	 Employee Benefits

	 7.5(a)(ii)
	  	 Employee Severance Program

	 7.6
	  	 Approved Pfizer Employees

 List of Exhibits 
  

			
	 A.
	  	 List of instruments and documents to be provided by Sellers to Purchaser

	 B.
	  	 List of instruments and documents to be provided by Purchaser to Sellers

	 C.
	  	 Form of Transitional Services Agreement

	 D.
	  	 Form of Transitional Supply Agreement

	 E.
	  	 Description of Land

  
 PURCHASE AND SALE
AGREEMENT 
  
 This Purchase and Sale Agreement is made and
entered into as of May 3, 2004 among Pfizer Inc., a Delaware corporation (“Pfizer”), Pfizer Pharmaceuticals LLC, a Delaware limited liability company (“PPLLC”, and together with Pfizer, the “Sellers”),
Galen Holdings Public Limited Company, a public limited company organized under the Laws of Northern Ireland (“Galen”) and Warner Chilcott Company, Inc., a Puerto Rican corporation (“Purchaser”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, Pfizer is the indirect owner of all of the issued and outstanding
shares of capital stock of PPLLC; 
  
 WHEREAS, PPLLC owns and
operates the Facility (as defined below) and all of the Purchased Assets (as defined below); 
  
 WHEREAS, the parties hereto desire that, at the Closing, PPLLC sell and transfer to Purchaser, and Purchaser shall purchase and accept from PPLLC, all of the Purchased Assets and assume all of the Assumed Liabilities
(as defined below), upon the terms and conditions set forth herein. 
  
 NOW THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and agreements contained herein, the parties hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS AND TERMS 
  
 Section 1.1. Definitions. As used in this Agreement, the following terms shall have the meanings set forth or as referenced below: 
  
 “Affected Employee” means an Employee (i) who shall accept
an offer of employment or offer of continuation of employment by Purchaser on or prior to the Closing Date and work for Purchaser or any of its Affiliates for at least one day. 
  
 “Affiliate(s)” means, with respect to any Person, any other Person directly or indirectly controlling,
controlled by, or under common control with, such Person at any time during the period for which the determination of affiliation is being made. 
  
 “Agreement” means this Agreement, as the same may be amended or supplemented from time to time in accordance with the terms hereof.

  
 “Allocation” has the meaning set forth in
Section 2.7 hereof. 
  
 “Approved Employee” means
any of the Persons listed on Schedule 1.1(a) hereto. 
  

 “Approved Pfizer Employee” means any of the Persons listed on Schedule 7.6 hereto.

  
 “Assumed Contracts” has the meaning set forth
in Section 2.1(c) hereof.  
  
 “Assumed
Liabilities” has the meaning set forth in Section 2.4 hereof. 
  
 “Business Day” means any day other than a Saturday, a Sunday or a day on which banks in New York, New York are authorized or obligated by law or executive order to close. 
  
 “Cash Equivalents” means cash, checks, money orders,
marketable securities, short-term instruments and other cash equivalents, funds in time and demand deposits or similar accounts, and any evidence of indebtedness issued or guaranteed by any Governmental Authority. 
  
 “Closing” means the closing of the transactions contemplated
by this Agreement.  
  
 “Closing Date” has
the meaning set forth in Section 3.1(a) hereof.  
  
 “Collateral Source” has the meaning set forth in Section 8.7 hereof.  
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Competition Laws” means statutes, rules, regulations, orders, decrees, administrative and judicial
doctrines, and other Laws that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization, lessening of competition or restraint of trade. 
  
 “Confidentiality Agreement” means the Confidentiality
Agreement between Pfizer and Purchaser dated August 13, 2002. 
  
 “Delayed Consents” has the meaning set forth in Section 2.2(a) hereof. 
  
 “Employee” means any individual who as of the Closing Date (i) is an employee of Pfizer or any of its Affiliates and who primarily
performs services at the Facility and (ii) (A) shall have been employed and actively at work on the Closing Date (or shall have been employed on the Closing Date but not actively at work because of vacation, holiday, personal days-off, or sick
days-off); (B) shall have been absent on the Closing Date because of hospital stay, workers’ compensation, parental leave of absence, family and medical leave of absence, military leave of absence or other short-term absence or approved leave
of absence where return to work is subject to statutory requirements; or (C) shall have been absent on the Closing Date because of short-term disability (including maternity leave) and shall have been receiving short-term disability benefits for no
more than one hundred eighty two consecutive days as of the Closing Date (an Employee described in Clause (B) or (C) immediately above, being an “Inactive Employee”). 
  

 2 

 “Environment” means air (including indoor air), water, vapor, surface water,
groundwater, drinking water supply, land surface and subsurface, and plant and animal life. 
  
 “Environmental Law” means any Law relating directly or indirectly to (i) the environmental aspects of product approvals; (ii) the Environment; or (iii) the exposure to, or the use, storage, recycling,
treatment, generation, transportation, processing, handling, labeling, recycling, Release or disposal of any harmful or deleterious substance. 
  
 “Environmental Liability” means all Liabilities and Losses resulting from any actual or alleged (i) failure to comply with any
Environmental Law, (ii) failure to obtain or comply with any required Environmental Permit, (iii) a Remedial Action or (iv) harm or injury to any real property, to any Person, to public health, or to a natural resource (other than a Remedial Action)
as a result of exposure to Hazardous Substances. 
  
 “Environmental Permits” means all Governmental Authorizations pursuant to any Environmental Law. 
  
 “Equipment” has the meaning set forth in Section 2.1(b) hereof. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 “Excluded Assets” has the meaning set forth in Section 2.3
hereof. 
  
 “Excluded Environmental Liabilities”
means (i) Environmental Liabilities associated with or arising from all facilities and assets other than those constituting part of the Purchased Assets, (ii) Environmental Liabilities resulting from Third Party Claims related to the off-site
transportation, storage, disposal, treatment, handling or recycling of Hazardous Substances from the Facility prior to the Closing, (iii) Environmental Liabilities as defined in clauses (i) and (ii) of the definition of Environmental Liability that
constitute fines and penalties imposed by Governmental Authorities and that result from the failure of any of the Purchased Assets or the operation thereof to comply with any requirement of Environmental Law prior to the Closing or the failure to
obtain or comply with any Environmental Permit required for the possession, ownership or operation of any of the Purchased Assets prior to the Closing; and (iv) Environmental Liabilities resulting from Scheduled Environmental Commitments.

  
 Notwithstanding anything to the contrary set forth in this
Agreement, (A) capital and other costs or expenditures of environmental-related compliance with Environmental Laws in the ordinary course of operating the Facility (including closure and post-closure costs) incurred after the Closing Date shall not
be deemed to be Excluded Environmental Liabilities except to the extent that such costs or expenditures result from Scheduled Environmental Commitments, and (B) Environmental Liabilities falling within subparagraph (iv) above, other than Remedial
Action described in clause (i) of the definition of Scheduled Environmental Commitments, shall not be deemed to be Excluded Environmental Liabilities to the extent that the Losses relating to such 

  

 3 

 
Environmental Liabilities are not subject to indemnification by the Sellers pursuant to the limitations set forth in Section 8.6. 
  
 “Facility” means the manufacturing plant including, but not
limited to the equipment (other than the Retained Equipment), buildings, structures, improvements and fixtures that comprise the Facility located on the Land commonly known as R.D. 195 KM 1.1 in Fajardo, Puerto Rico 00738. 
  
 “Financial Statements” means the financial statements of the
Facility set forth on Schedule l.l(b). 
  
 “Governmental
Authority” means any supranational, national, federal, state, commonwealth or local judicial, legislative, executive or regulatory authority. 
  
 “Governmental Authorizations” means all licenses, permits, certificates and other authorizations and approvals under the applicable Laws
of any Governmental Authority. 
  
 “Governmental
Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or into with any Governmental Authority. 
  
 “Hazardous Substances” means any hazardous substances or any pollutant, contaminant, waste or chemical or any toxic, radioactive,
ignitable corrosive, reactive or otherwise hazardous substance, waste or material having any constituent elements displaying any of the foregoing characteristics including petroleum, its derivatives, byproducts and other hydrocarbons and any
substance, waste or material, mold, and any physical agents such as radiofrequency or microwave radiation, ionizing radiation, lasers, and noise, that is regulated or would reasonably be expected to give rise to liability under any Environmental
Law. 
  
 “Indemnified Party” has the meaning set
forth in Section 8.3(a) hereof. 
  
 “Indemnifying
Party” has the meaning set forth in Section 8.3(a) hereof.  
  
 “IRS” means the Internal Revenue Service of the United States of America. 
  
 “Knowledge of Pfizer” means the actual knowledge of any of the individuals listed on Schedule 1.1(c). 
  
 “Land” means the real property more particularly described
on Exhibit E hereto, together with ail easements, covenants and other rights appurtenant thereto. 
  
 “Laws” shall include law, treaty, common law, statute, ordinance, rule, regulation, permit, order, code, injunction, judgment, decree or
Governmental Order of any federal, state, commonwealth, foreign, local or other Governmental Authority. 
  
 “Leased Real Property” has the meaning set forth in Section 5.13(b). 
  

 4 

 “Liabilities” means any and all debts, liabilities and obligations, whether accrued or
fixed, known or unknown, absolute or contingent, matured or unmatured or determined or determinable. 
  
 “Liens” means any lien, security interest, mortgage, charge or similar encumbrance, 
  
 “Loss” or “Losses” has the meaning set
forth in Section 8.l(a) hereof. 
  
 “Material Adverse
Effect” means an effect that is materially adverse to the business results, operations or financial condition of the Facility taken as a whole, but shall exclude any effect resulting from (i) general economic conditions, (ii) any occurrence
or condition generally affecting the Pharmaceutical industry that does not disproportionately affect the Facility, (iii) acts of terrorism or war (whether or not threatened, pending or declared) and (iv) the public announcement of this Agreement or
the transactions contemplated hereby. 
  
 “Material
Contracts” has the meaning set forth in Section 5.12 hereof. 
  
 “Owned Real Property” has the meaning set forth in Section 5.13(a). 
  
 “Parking Lease Agreement” means the Lease Agreement between Industrial Puerto Real, Inc. and PPLLC dated as of May 9, 1994, as amended, in respect of certain parking space adjacent to the Facility.

  
 “Permitted Encumbrances” means (i) all Liens
approved in writing by Purchaser; (ii) statutory Liens arising out of operation of Law with respect to a Liability incurred in the ordinary course of business and which is not delinquent; (iii) such Liens and other imperfections of title, other than
mortgages and judgment Liens, and any other Liens that secure debt, as do not or could not materially detract from the value or impair the use, operation or occupancy of the property subject thereto as currently used or operated or occupied by
Sellers; (iv) Liens for Taxes not yet subject to penalties or due and payable or which are being actively contested in good faith by appropriate proceedings; or (v) mechanics’, materialmens’, carriers’, workmens’,
warehousemens’, repairmens’, landords’, or other like Liens and security obligations that are not yet due or delinquent or the validity of which is being contested in good faith, and in each case are subsequently paid by Sellers.

  
 “Person” means an individual, a corporation,
a partnership, a limited liability company, an association, a trust or other entity or organization, including a governmental or political subdivision or an agency or instrumentality thereof. 
  
 “Pfizer” has the meaning set forth in the preamble hereof.

  
 “Plan” means any pension, profit sharing,
savings, retirement, health, life, disability, welfare, retiree medical, deferred compensation, incentive, severance, employment, equity-incentive, change-in-control, collective bargaining or fringe benefit plan, program, or arrangement (including
any employee benefit plan (as defined in 

  

 5 

 
Section 3(3) of ERISA) and any multiemployer plan (as defined in Section 3(37) of ERISA)), formal or informal, whether or not subject to ERISA, entered into,
maintained or contributed to, for the benefit of any Employee, by any Seller or any Affiliate thereof or any organization that is a member of a controlled group of organizations with any of them (within the meaning of Section 414 of the Code) (an
“ERISA Affiliate”) and under which any Employee participates or has any present or future right to benefits. 
  
 “Proceeding” has the meaning set forth in Section 10.11(b) hereof. 
  
 “Puerto Rico Code” means the Puerto Rico Internal Revenue Code of 1994, as amended. 
  
 “Purchased Assets” has the meaning set forth in Section 2.1
hereof, it being understood that the Purchased Assets do not include the Excluded Assets. 
  
 “Purchase Price” has the meaning set forth in Section 2.6 hereof. 
  
 “Purchaser” has the meaning set forth in the preamble hereof. 
  
 “Real Property” means the Owned Real Property and the Leased Real Property. 
  
 “Release” means any spilling, leaking, pumping, pouring,
emitting, emptying, injecting, depositing, disposing, discharging, dispersal, escaping, dumping or leaching into the Environment, or as otherwise defined under Environmental Laws. 
  
 “Remedial Action” means any action to clean up the Environment in response to a Release of Hazardous
Substances, or otherwise to address the presence of Hazardous Substances, including, but not limited to, associated action taken to investigate, monitor, assess and evaluate the extent and severity of any such Release or presence; action taken to
remediate any such Release or presence; post-remediation monitoring of any such Release or presence; and preparation of all reports, studies, analyses or other documents relating to the above. 
  
 “Required Governmental Report” means any written notice,
report or other filing by Purchaser and required by Environmental Law as a result of actions taken in the ordinary course of operating the Facility; provided however, that actions taken in the ordinary course of operating the Facility shall
not include any investigation undertaken voluntarily by the Purchaser or at the request of a third party that is not required by Environmental Law. 
  
 “Required Consents” has the meaning set forth in Section 5.4 hereof.  
  
 “Retained Equipment” has the meaning set forth in Section
2.3(h) hereof.  
  
 “Retained Liabilities”
has the meaning set forth in Section 2.5 hereof.  
  
 “Retained Tax Liabilities” has the meaning set forth in Section 2.5(b) hereof. 
  

 6 

 “Scheduled Environmental Commitments” shall mean (i) Remedial Action to achieve the
Applicable Remedial Action Standard with respect to the contamination identified on Schedule 1.1(d); and (ii) Liabilities resulting from Third Party Claims (other than for Remedial Action) arising out of the contamination identified on
Schedule 1.1(d). 
  
 “Straddle Period”
means any Tax period that begins before and ends after the Closing Date. 
  
 “Subsidiary” means an entity as to which Pfizer or Purchaser or any other relevant entity, as the case may be, owns directly or indirectly 50% or more of the voting power or other similar interests.

  
 “Tax” or “Taxes” means all
taxes, charges, duties, fees, levies or other assessments, including but not limited to, income, excise, property, sales, value added, profits, license, withholding (with respect to compensation or otherwise), payroll, employment, net worth, capital
gains, transfer, stamp, social security, environmental, occupation and franchise taxes, imposed by any Governmental Authority, and including any interest, penalties and additions attributable thereto. 
  
 “Tax Return” means any return, report, declaration,
information return, statement or other document filed or required to be filed with any Governmental Authority, in connection with the determination, assessment or collection of any Tax or the administration of any Laws relating to any Tax including
any amendment thereto. 
  
 “Third Party Claim”
has the meaning set forth in Section 8.4(a) hereof. 
  
 “Transaction Agreements” means this Agreement and the agreements, documents and instruments listed on Exhibit A and Exhibit B hereto. 
  
 “Transitional Services Agreement” means a document substantially in the form of Exhibit C hereto.

  
 “Transitional Supply Agreement” means a
document substantially in the form of Exhibit D hereto. 
  
 “Transfer Date” means, with respect to an Affected Employee who is an Inactive Employee, the date that the Inactive Employee first performs one day of service for Purchaser following the Closing Date, and with respect to
any other Affected Employee, the date immediately following the Closing Date. 
  
 “Warehouse Lease Agreement” means the Lease Agreement between The Puerto Rico Industrial Development Company and PPLLC dated as of March 13, 2003, as amended, in respect of the lease of a warehouse
for the Facility. 
  
 Section 1.2. Other Definitional
Provisions. The words “hereof”, “herein”, “hereto” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to
any particular provision of this Agreement. 
  

 7 

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

  
 (c) The terms “dollars” and
“US$” means United States dollars. 
  
 ARTICLE II

  
 PURCHASE AND SALE 
  
 Section 2.1. Purchase and Sale of Assets of the Facility. Upon the
terms and subject to the conditions set forth herein (including Sections 2.2 and 2.3), at the Closing, PPLLC shall, and Pfizer shall cause PPLLC to, sell, convey, assign and transfer to the Purchaser and the Purchaser shall purchase, acquire and
accept from PPLLC, free and clear of all Liens, other than Permitted Encumbrances, all of PPLLC’s, title and interest in the following assets, properties and rights owned or held by PPLLC and its Affiliates on the Closing Date (collectively,
the “Purchased Assets”): 
  
 (a) the Land and
buildings comprising the Facility together with all fixtures, structures, buildings and improvements erected on the Land; the leasehold interests under the Parking Lease Agreement and the Warehouse Lease Agreement including, without limitation, any
prepaid rent, security deposits and options to renew or purchase in connection therewith; 
  
 (b) the furniture, equipment, machinery, supplies, spare parts, tools and other tangible property used solely in connection with the Facility, other than the Retained Equipment, including the items set forth on
Schedule 2.1(b) (the “Equipment”), and leases relating to such Equipment so leased by each Company; 
  
 (c) all rights under the contracts, licenses, agreements and commitments solely related to the Facility including those set forth on Schedule
2.1(c), to the extent that they are assignable or consent to assignment has been obtained (the “Assumed Contracts”); 
  
 (d)transferable Governmental Authorizations, including Environmental Permits, owned, utilized or licensed (subject to the terms of such licenses) by PPLLC
that are required in the operation of the Facility as it is currently operated; 
  
 (e) all rights of PPLLC under or pursuant to all warranties, representations and guarantees made by suppliers, manufacturers and contractors to the extent affecting the Purchased Assets; 
  
 (f) all vendor lists to the extent solely relating to the Facility, and all
files and documents (including credit information) to the extent solely relating to vendors of the Facility, and other business and financial records, files, books and documents, including without limitation training records, permit applications,
equipment maintenance records, records concerning materials used, and compliance audits (whether in hard copy or computer format) to the extent solely relating to the Facility. 
  

 8 

 (g) (i) the databases and software programs, source codes and user manuals owned, used, leased by or
licensed to PPLLC, and used solely at the Facility; and (ii) the computer hardware used solely at the Facility; 
  
 (h) the goodwill, if any, of the Facility; and 
  
 (i) all other assets used solely in connection with the Facility and located at the Facility. 
  
 Section 2.2. Consents. (a) Except for the Parking Lease Agreement and
the Warehouse Lease Agreement, there shall be excluded from the Purchased Assets any contract, agreement, Permit, lease, license, commitment or right that is not assignable or transferable without the consent of any Person, other than Sellers, any
Pfizer Subsidiary, Galen, Purchaser or any Galen Subsidiary, to the extent that such consent shall not have been given prior to the Closing; provided however, that each of the Sellers, Galen and Purchaser shall have the continuing obligation
after the Closing to use its commercially reasonable efforts (but without any payment of money by Sellers, Galen, Purchaser or any of their respective Subsidiaries) to obtain all necessary consents to the assignment thereof (the “Delayed
Consents”) and, upon obtaining the Delayed Consents thereto, such contracts, agreements, Permit, leases, licenses, commitments or rights, if otherwise includable in the Purchased Assets, shall be transferred and assigned to Purchaser
hereunder. 
  
 (b) With respect to any contract, agreement,
Permit, lease, license, commitment or right that would otherwise be included in the Purchased Assets but for Section 2.2(a), after the Closing and until any Delayed Consent is obtained and the foregoing transferred and assigned to Purchaser, the
parties shall cooperate with each other, upon written request, to obtain for Purchaser a mutually agreeable arrangement designed to provide for Purchaser the benefits thereof in some other manner. Sellers will promptly pay to Purchaser when received
all monies received by Sellers under any Purchased Asset or any claim or right or benefit arising thereunder, except to the extent the same represents and Excluded Asset. 
  
 (c) Purchaser agrees that no representation, warranty or covenant of Sellers contained herein shall be breached or deemed
breached and no condition of Purchaser shall be deemed not to be satisfied as a result of the failure to obtain any Required Consent, provided that Sellers comply with the terms of Section 2.2(b),. 
  
 Section 2.3. Excluded Assets. Notwithstanding any other provision in
this Agreement, the Sellers or any Affiliate thereof shall retain, with respect to any Seller or the Facility, the following (the “Excluded Assets”): 
  
 (a) Cash Equivalents; 
  
 (b) all intercompany receivables, contracts, agreements and arrangements; 
  
 (c) all Tax losses, Tax loss carry forwards and rights to receive refunds, credits and credit carry forwards with respect to
any and all Taxes, to the extent attributable to a 

  

 9 

 
taxable period (or portion thereof) ending on or prior to the Closing Date including, without limitation, interest thereon, whether or not the foregoing is
derived from the operation of the Facility; 
  
 (d) the corporate
books and records of PPLLC or Pfizer; 
  
 (e) all current and
prior insurance policies and all rights of any nature with respect thereto, including all insurance recoveries thereunder and rights to assert claims with respect to any such insurance recoveries; 
  
 (f) the “Pfizer,” “Warner-Lambert,”
“Parke-Davis,” “Searle,” and “Pharmacia” names and logos, provided that for the avoidance of doubt, Purchaser shall be permitted to use the name “Warner Chilcott” and any logos related thereto;

  
 (g) the assets of any Plan; 
  
 (h) the equipment listed on Schedule 2.3 and all spare parts for such
equipment (the “Retained Equipment”); and 
  
 (i)
all assets not expressly included in the Purchased Assets, whether or not used in the operation of the Facility. 
  
 Section 2.4. Assumption of Certain Liabilities. Upon the terms and subject to the conditions of this Agreement, Purchaser agrees, effective at the
Closing, to assume the following Liabilities (collectively, the “Assumed Liabilities”): 
  
 (a) all lawsuits commenced and claims made after the Closing (including claims of patent or other intellectual property infringement) to the extent
resulting from the operation of the Facility or the ownership of the Purchased Assets after the Closing; 
  
 (b) all Liabilities resulting from a claim by a third party for money or other compensation (beyond the cost of a particular product) in respect of injury
allegedly due and owing as a result of the operation of the Facility after the Closing, including, without limitation, warranty obligations and irrespective of the legal theory asserted; 
  
 (c) all Liabilities arising after the Closing relating to the operation of the Facility or ownership of the Purchased Assets
after the Closing under any contracts, agreements, leases, licenses or commitments that are assigned to Purchaser pursuant to Section 2.1 or 2.2 at or subsequent to the Closing; 
  
 (d) all Liabilities to suppliers for materials and services relating to the operation of the Facility ordered in the
ordinary course of business prior to the Closing, but scheduled to be delivered or provided thereafter; 
  
 (e) all Liabilities with respect to Affected Employees arising on or after the applicable Transfer Date with respect to periods on or after the applicable
Transfer Date; 
  

 10 

 (f) all Environmental Liabilities relating to the ownership or operation of the Purchased Assets and the
Facility, arising on or after the Closing with respect to periods of ownership or operation by Purchaser on or after the Closing, other than the Excluded Environmental Liabilities; and 
  
 (g) except as provided in Section 2.5, all other Liabilities arising after the Closing relating to the ownership or
operation of the Purchased Assets and the Facility on or after the Closing. 
  
 Section 2.5. Retained Liabilities. Notwithstanding any other provision in this Agreement, the Sellers or any Affiliate thereof shall retain and be responsible for any Liabilities that are not Assumed
Liabilities including, without limitation, the following (the “Retained Liabilities”): 
  
 (a) the Excluded Environmental Liabilities; 
  
 (b) all Liabilities for Taxes of Sellers or taxes related to, imposed on, or arising from the Facility or the Purchased Assets for any taxable period (or
portion thereof) on or prior to the Closing, except for real and personal property Taxes for the calendar year of the Closing attributable to the portion of the year during which the respective real or personal property of the Facility is owned by
Purchaser, its Affiliates or any transferee of Purchaser or its Affiliates (the “Retained Tax Liabilities”) provided that in the case of any real or personal property Tax for any Straddle Period, (A) the amount of such Tax
attributable to the portion of such Straddle Period ending on or prior to the Closing Date shall be the amount of such Tax for the entire Straddle Period multiplied by a fraction, the numerator of which is the number of days in such Straddle Period
prior to and including the Closing Date and the denominator of which is the total number of days in the entire Straddle Period and (B) the amount of such Tax attributable to the portion of such Straddle Period beginning after the Closing Date shall
be the amount of such Tax for the entire Straddle Period minus the amount of such Tax determined under clause (A) of this proviso and that in the case of all other Taxes, such Taxes shall be apportioned on the basis of an interim closing of the
books at the end of the Closing Date; 
  
 (c) all Liabilities
resulting from a claim by a third party for money or other compensation (beyond the cost of a particular product) in respect of injury allegedly due and owing as a result of the operation of the Facility prior to the Closing, including, without
limitation, warranty obligations and irrespective of the legal theory asserted; 
  
 (d) all Liabilities resulting from all lawsuits pending as of the Closing solely to the extent resulting from the operation of the Facility prior to the Closing, including the pending lawsuits listed on Schedule 5.9;

  
 (e) (i) all Liabilities with respect to Affected Employees
relating to the period prior to the applicable Transfer Date, (ii) all Liabilities with respect to Employees who do not become Affected Employees relating to the period on, prior to or after the Closing, and (iii) all Liabilities with respect to
present or former employees, officers, consultants or independent contractors of any of the Sellers or their Affiliates who are not 

  

 11 

 
Employees, relating to the period on, prior to or after the Closing, in the case of each of Clauses (i), (ii), and (iii) including any obligations to pay
severance (except as may otherwise be provided in Section 7.5(a)) to the extent arising as a result of the sale of the Facility and other Purchased Assets to Purchaser pursuant to this Agreement or as a result of any Affected Employee’s
transfer of employment to Purchaser as contemplated by this Agreement; 
  
 (f) all Liabilities in respect of the Plans or any other compensation, incentive or benefit plans, policies or arrangements entered into, contributed to or maintained by Sellers or any of their Affiliates, including those deriving directly
or indirectly from sponsoring or participating in the Plans, whether arising on, prior to or after the Closing; 
  
 (g) all other Liabilities of the Facility that relate to or arise from the ownership or operation of the Facility prior to Closing except to the extent
that such Liabilities are assumed by Purchaser pursuant to Section 2.4; and 
  
 (h) Liabilities relating to the Excluded Assets. 
  
 Section 2.6. Purchase Price. In consideration of the sale and transfer of the Purchased Assets, Purchaser shall pay to Pfizer, as agent for the Sellers, the amount of Four Million Dollars (US$4,000,000) (the
“Purchase Price”), in immediately available funds, by wire transfer in accordance with written instructions given by Pfizer to Purchaser not less than two (2) Business Days prior to the Closing, which consideration
shall be allocated as provided in Section 2.7. 
  
 Section 2.7.
Allocation of the Purchase Price. The parties shall negotiate in good faith and agree prior to Closing on the allocation of the Purchase Price among the Purchased Assets all as set forth in Schedule 2.7 (the
“Allocation”). The Sellers, on the one hand, and Purchaser, on the other, shall (i) be bound by the Allocation for purposes of determining any Taxes, (ii) prepare and file, and cause its Affiliates to
prepare and file, its Tax Returns, including, without limitation, Internal Revenue Service Form 8594, on a basis consistent with the Allocation, and (iii) take no position, and cause its Affiliates to take no position, inconsistent with the
Allocation on any applicable Tax Return or in any proceeding before any taxing authority or otherwise. Any post-Closing adjustments, if any, to the Purchase Price shall be allocated to each Purchased Asset to which the adjustment relates, and the
Purchase Price allocation to such Purchased Asset shall be correspondingly increased or decreased. 
  
 Section 2.8. Risk of Loss. Until the Closing, any loss of or damage to the Purchased Assets from fire, casualty or any other occurrence shall be
the sole responsibility of Pfizer or its Affiliates, as the case may be. At the Closing, title to the Purchased Assets shall be transferred to Purchaser, and Purchaser shall thereafter bear all risks of loss associated with the Purchased Assets.

  
 Section 2.9. Joint Purchasing Arrangements. In the case
of existing purchasing agreements that prior to the Closing are associated with the Facility on the one hand, and Sellers’ other businesses and assets other than those constituting part of the Purchased 

  

 12 

 
Assets on the other hand, other than intercompany agreements, with volume discounts, subject to applicable Law, the parties agree to use their respective
reasonable best efforts so that, to the extent permitted under the terms of such existing agreements, after the Closing, each of Purchaser on the one hand and Sellers on the other hand shall continue to be able to make purchases and obtain the
benefits of the volume discounts. In the case of any such contracts, subject to applicable Law, the parties will cooperate reasonably in seeking modifications to such contracts or alternative or substitute arrangements so that, to the extent
practicable after the Closing, each of Purchaser on the one hand and Sellers on the other hand shall continue to be able to make purchases and obtain the benefits of the volume discounts. Notwithstanding the foregoing, but subject to the terms of
any existing contracts, none of Purchaser, Sellers or their respective Subsidiaries shall be required to commit to any additional purchases or other obligations, make any payments or waive any rights in order to effect the foregoing. Each party
hereby agrees to indemnify and hold harmless the other party, and if applicable, the other party’s Subsidiaries, with respect to any losses or claims arising from such first party’s or such first party’s Subsidiaries’, own
purchases, commitments or other obligations under any such contracts. 
  
 ARTICLE III 
  
 CLOSING 
  
 Section 3.1. Closing. (a) The Closing shall take place at the offices
of Pfizer, 235 E. 42nd Street, New York, New York, at 10:00 A.M., New York time, on May 28, 2004, provided that the
conditions precedent specified in Article IV (other than the conditions to be satisfied on the Closing Date, but subject to the waiver or satisfaction of such conditions) have been satisfied or waived on or prior to such date, or at such other time
and place as the parties hereto may mutually agree; provided however, that without the agreement of Sellers and Purchaser, the Closing shall not occur later than the date specified in Section 9.1(b) of this Agreement. The date on which the
Closing occurs is called the “Closing Date.” The Closing shall be deemed to occur and be effective as of 11:59 P.M., New York City time, on the Closing Date. 
  
 (b) At the Closing, the Sellers shall deliver or cause to be delivered to
Purchaser the instruments and documents set forth in Exhibit A hereto, in each case, in a form reasonably acceptable to Purchaser. 
  
 (c) At the Closing, Purchaser shall deliver to Pfizer as agent for the Sellers, the following: (i) the Purchase Price by wire transfer in immediately
available funds to one or more accounts specified in writing by Pfizer at least two (2) Business Days prior to the Closing Date and (ii) the instruments and documents set forth in Exhibit B hereto, in each case, in a form reasonably
acceptable to Pfizer. 
  

 13 

 ARTICLE IV 
  
 CONDITIONS TO CLOSING 
  
 Section 4.1. Conditions to the Obligations of Purchaser and the Sellers. The respective obligations of each of the parties to consummate the
transactions contemplated by this Agreement shall be subject to the satisfaction of the following conditions precedent: 
  
 (a) There shall not be in effect any Law or Governmental Order that makes illegal or enjoins, prevents or modifies in any respect the consummation of the
transactions contemplated by this Agreement; 
  
 (b) There shall
not have been commenced and be continuing, or threatened in writing, any action or proceeding by any Governmental Authority which seeks to prevent or enjoin in any respect the transactions contemplated by this Agreement; and 
  
 (c) Any approval or action of any Governmental Authority that is necessary to
lawfully consummate the transactions contemplated hereby shall have been obtained or taken, and any investigation opened or otherwise commenced by such Governmental Authority shall have been closed. 
  
 Section 4.2. Conditions to the Obligations of Purchaser. The
obligation of Purchaser to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction of the following conditions precedent: 
  
 (a) (i) Each Seller shall have performed in all material respects its agreements and obligations contained in this Agreement
required to be performed by it at or before the Closing, and (ii) the representations and warranties of the Sellers contained herein (A) that are qualified by materiality or Material Adverse Effect shall be true and correct as of the Closing as if
made as of such date, and (B) that are not qualified by materiality or Material Adverse Effect shall be true and correct in all material respects at and as of the Closing as if made at and as of such time. Purchaser shall have received a certificate
of each Seller, dated as of the Closing Date and signed by an officer of such Seller, certifying as to the fulfillment of the foregoing; 
  
 (b) The Sellers shall have made or caused to be made delivery to the Purchaser of the items required by Section 3.1(b); and 
  
 (c) Purchaser shall have received from one or more title companies recognized
in Puerto Rico, selected by Purchaser, and reasonably acceptable to Sellers (“Purchaser’s Title Company”) standard 1992 ALTA Form B owner’s (with respect to the Owned Real Property) title insurance
policies obtained at Purchaser’s expense. Each such policy shall: (i) be dated as of the Closing Date, (ii) be accompanied by copies of all documents referenced as exceptions to title, (iii) insure good, valid and marketable fee simple title to
the Owned Real Property in Purchaser subject only to Permitted Encumbrances, and (iv) contain 3.0 zoning. Sellers agree to execute such reasonable affidavits and other 

  

 14 

 
documents, consistent with local practice, as are necessary to induce Purchaser’s title company to issue the policies, endorsements and affirmative
coverages in the manner set forth above. Sellers shall cause all Permitted Encumbrances and exceptions to title of a definite and ascertainable amount to be satisfied prior to the Closing, except as would not have a Material Adverse Effect.

  
 Section 4.3. Conditions to the Obligations of the
Sellers. The obligation of the Sellers to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction of the following conditions precedent: 
  
 (a) (i) Purchaser shall have performed in all material respects its agreements and obligations contained in this Agreement
required to be performed by it at or before the Closing, and (ii) the representations and warranties of Purchaser contained herein (A) that are qualified by materiality or Material Adverse Effect shall be true and correct as of the Closing as if
made as of such date, and (B) that are not qualified by materiality or Material Adverse Effect shall be true and correct in all material respects at and as of the Closing as if made at and as of such time. Pfizer shall have received a certificate of
Purchaser, dated as of the Closing Date and signed by an officer of Purchaser, certifying as to the fulfillment of the foregoing; and 
  
 (b) Purchaser shall have made or caused to be made delivery to Pfizer of the items required by Section 3.1(c). 
  
 ARTICLE V 
  
 REPRESENTATIONS AND WARRANTIES OF THE SELLERS 
  
 Each Seller hereby represents and warrants to Galen and Purchaser as follows: 
  
 Section 5.1. Organization. Pfizer is a corporation duly organized, validly existing and in good standing under the
Laws of the State of Delaware. PPLLC is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of Delaware. 
  
 Section 5.2. Authority: Binding Effect. Each Seller has all requisite corporate power and authority to carry on its
business as it is now being conducted and to execute, deliver and perform each Transaction Agreement to which it is a party. The execution, delivery and performance by each Seller of each Transaction Agreement to which it is a party have been or
will have been at the Closing duly authorized by all requisite corporate action on the part of such Seller. 
  
 (b) This Agreement constitutes and, when executed and delivered in accordance with its terms, each other Transaction Agreement will constitute, a valid
and binding obligation of each Seller party thereto, enforceable against each such Seller in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ rights generally or by 

  

 15 

 
general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or law). 
  
 Section 5.3. Non-Contravention. The execution, delivery and
performance by each Seller of each Transaction Agreement to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not (i) violate any provision of the certificate of incorporation, bylaws or
other comparable organizational documents of any Seller; (ii) subject to obtaining the consents or other actions referred to in Schedule 5.4, result in a breach of, or default under (whether after the giving of notice or the lapse of time or both),
or right to accelerate with respect to, or result in the termination of any contract, commitment or other obligation to which any Seller or any of its Affiliates is a party or is subject relating to a Purchased Asset, or result in the creation of
any Lien on any Purchased Asset; or (iii) assuming compliance with the matters set forth in Sections 5.4 and 6.4, violate any Law to which any Seller is subject with respect to the Facility, except, with respect to clauses (ii) and (iii) above, for
any breaches, defaults, terminations or Liens as would not, reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
  
 Section 5.4. Required Consents. Schedule 5.4(a) sets forth each agreement, contract or other instrument binding upon Sellers, other than any
agreement relating to a Plan, or any Permit (a) requiring a consent or other action by any Person or (b) pursuant to which obligations would be accelerated or rights would be terminated, as a result of the execution, delivery and performance of this
Agreement (the “Required Consents”). 
  
 Section
5.5. Licenses and Permits. Schedule 5.5 correctly describes each material license, permit, certificate, approval or other similar Governmental Authority authorization required to operate the Facility (the “Permits”) together
with the name of the Governmental Authority issuing such Permit. Except as set forth on Schedule 5.5, to the Knowledge of Pfizer, (i) the Permits are valid and in full force and effect, and (ii) Seller is not in default, and no condition exists that
with notice or lapse of time or both would constitute a default, under the Permits. 
  
 Section 5.6. Governmental Authorization. Other than as set forth in Schedule 5.6, the execution, delivery and performance by each Seller of each Transaction Agreement to which it is a party do not require any
consent or approval of any Governmental Authority, except for such consents or approvals, the failure of which to obtain, would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
  
 Section 5.7. Financial Information. The Financial Statements have been
prepared in accordance with each Seller’s books and records and present fairly in all material respects, the information purported to be presented therein. 
  

 16 

 Section 5.8. Conduct of Business. Since July 1,2003, except to the extent set forth in Schedule
5.8, the operations of the Facility have been conducted in the normal course consistent with past practices and there has not been: 
  
 (a) any event, occurrence, development or state of circumstances or facts which, individually or in the aggregate, has had or would reasonably be expected
to have a Material Adverse Effect; 
  
 (b) any creation or other
incurrence of any Lien on any Purchased Asset other than Permitted Encumbrances; 
  
 (c) any damage, destruction or other casualty loss (whether or not covered by insurance) affecting the Facility or any Purchased Asset which, individually or in the aggregate, has had or would reasonably be expected
to have a Material Adverse Effect; 
  
 (d) any transaction or
commitment made, or any contract or agreement entered into, by Sellers relating to the Facility or any other Purchased Asset (including the acquisition or disposition of any assets) or any relinquishment by Sellers of any contract or other right, in
either case, material to the Facility or operation of the Facility, other than (i) transactions and commitments in the ordinary course of business consistent with past practices and (ii) those contemplated by this Agreement; 
  
 (e) any (i) employment, deferred compensation, severance, retirement or other
similar agreement entered into with any Employee (or any amendment to any such existing agreement), (ii) grant of any severance or termination pay to any Employee, (iii) change in compensation or other benefits payable to any Employee whether
pursuant to any severance or retirement plans or policies thereof or otherwise, (iv) establishment, adoption, entrance into or termination of any Plan, (v) grant of any loans or advances of money or other property to any Employee, or (vi) the grant
of any equity or equity-incentive award to any Employee, other than in the case of each of Clauses (i) through (vi) in the ordinary course of business consistent with past practice; 
  
 (f) any labor dispute, other than routine individual grievances, or any activity or proceeding by a labor union or
representative thereof to organize any employees of the Facility, which employees were not subject to a collective bargaining agreement on July 1, 2003, or any lockouts, strikes, slowdowns, work stoppages or threats thereof by or with respect to
employees of the Facility; or 
  
 (g) any capital expenditure, or
commitment for a capital expenditure, for additions or improvements to property, plant and equipment, other than any capital expenditures or commitments which have been budgeted. 
  
 Section 5.9. No Litigation. Except as set forth on Schedule 5.9, as of the date hereof, no litigation, preliminary or
permanent injunction, cease or desist order, investigation or proceeding by or before any court or Governmental Authority or arbitrator is pending against or threatened in writing or, to the Knowledge of Pfizer, threatened orally against any of the
Sellers, concerning the Facility, its operations or employees, in each case which has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
  
 (b) There are no outstanding orders, injunctions or decrees of any
Governmental Authority that apply to any of the Purchased Assets (or will apply to Purchaser after the 

  

 17 

 
Closing) that restrict the ownership, disposition or use of the Purchased Assets, which restriction or restrictions have had or would reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect. 
  
 Section 5.10. Compliance with Laws. Except with respect to Environmental Laws (which are the subject of Section 5.11), and except as to matters otherwise set forth in this Agreement or set forth in Schedule 5.10: 
  
 (a) To the Knowledge of Pfizer, PPLLC is in compliance in all respects with
all Laws applicable to the ownership or operation of the Purchased Assets and the Facility, except to the extent that the failure to comply therewith has not had and would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect; and 
  
 (b) PPLLC possesses all
Governmental Authorizations necessary for the operation of the Facility as it is currently conducted, except where the failure to possess any such Governmental Authorization would not reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect. 
  
 Section 5.11. Environmental
Matters. Except asset forth in Schedule 5.11: 
  
 (a) to the
Knowledge of Pfizer, the Purchased Assets are in compliance with all Environmental Laws or Environmental Permits and PPLLC has not undertaken with respect to any of the Purchased Assets, nor has any Seller received notice that any of the Purchased
Assets is subject to, any Remedial Action or enforcement action under any Environmental Law and/or Environmental Permit, except for such non-compliance, Remedial Actions or enforcement actions that would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect; 
  
 (b) the Facility has obtained and possesses all Environmental Permits required to operate the Purchased Assets as they are currently operated, and since January 1, 2003, have been operated, except where any failure to so obtain would not
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; 
  
 (c) no written claims, demands or actions have been made or, to the Knowledge of Pfizer threatened that would reasonably be expected to result in material Environmental Liability arising from or as a result of (i)
exposures to Hazardous Substances at or from any of the Purchased Assets; (ii) Releases of Hazardous Substances at or from any of the Purchased Assets; (iii) generation, transportation, treatment, storage, migration or disposal of Hazardous
Substances at or from any of the Purchased Assets; or (iv) non-compliance with any Environmental Laws or Environmental Permits at the Purchased Assets, except, in the case of (i), (ii), (iii) or (iv) above, for such matters that were fully and
finally resolved prior to July 1, 2000; 
  
 (d) to the Knowledge
of Pfizer: (i) no Release of any Hazardous Substances by or on behalf of the Sellers has occurred at the Purchased Assets, and (ii) there is and has been no other Release or presence of Hazardous Substances at or affecting the Purchased Assets,
which in either (i) or (ii) would reasonably be expected to give rise to 

  

 18 

 
any Liability under any applicable Environmental Law that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect;
and 
  
 (e) other than as set forth in the reports of assessments,
audits, investigations, studies, and other similar reviews set forth on Schedule 5.11(e), and without limiting the generality of the foregoing, to the Knowledge of Pfizer, none of the Purchased Assets contains: (i) any waste dump, landfill, lagoon
for holding or storing process waters or wastes, septic tank, or injection well for waste disposal; (ii) any underground storage tank; (iii) asbestos or asbestos-containing building materials, at levels subject to regulation under any applicable
Environmental Laws; (iv) polychlorinated biphenyls, in equipment or otherwise, at levels subject to regulation under any applicable Environmental Laws; (v) lead-based paint; or (vi) mold of the type and in quantities that could reasonably be
expected to be harmful to human health or safety, and 
  
 (f) to
the Knowledge of Pfizer, Sellers have provided to Purchaser true and complete copies of all material reports of assessments, audits, investigations, studies, and other similar reviews relating to conditions at or arising out of any of the Purchased
Assets with respect to any Environmental Laws, which reports have been prepared based on assessments, audits, investigations, studies, and other similar reviews conducted subsequent to July 1, 2000. 
  
 Section 5.12. Material Contracts. Except for intercompany agreements,
agreements entered into after the date hereof in accordance with Section 7.2 or as set forth on Schedule 5.12 (the “Material Contracts”), with respect to the Facility, PPLLC is not a party to or bound by: 
  
 (i) any contract, agreement or other arrangement for the
purchase of materials, supplies, goods, services, equipment or other assets or other personal property with any supplier or for the furnishing of services to the Facility, in each case, extending beyond one year from the date hereof or the terms of
which provide for financial commitments in excess of US$50,000; 
  
 (ii) any contract, agreement or other arrangement for the furnishing of services by the Facility, in each case, with firm commitments in excess of three years from the date hereof; or 
  
 (iii) any lease, sublease or other agreement granting rights
of occupancy or use of real property, in each case, the terms of which provide for annual rentals in excess of US$20,000. 
  
 (b) Except as disclosed in Schedule 5.12. (i) each Material Contract is valid and binding on PPLLC and, to the Knowledge of Pfizer, the other party
thereto, and is in full force and effect and (ii) PPLLC is not, or to the Knowledge of Pfizer, no other party thereto is, in breach of, or in default under, any Material Contract, in any material respect. 
  
 Section 5.13. Real Property. (a) Schedule 5.13(a) sets forth a
complete list of all real property and interests in real property owned by the Sellers and used or held for use 

  

 19 

 
in connection with the operation and use of the Facility as it is currently operated and used (such real property and interests in real property, including
the Facility, the “Owned Real Property”). The Sellers have furnished or made available to the Purchaser or its representatives true and complete copies of deeds of conveyance reflecting PPLLC’s title to the Owned Real Property.

  
 (b) Schedule 5.13(b) sets forth a true and complete list of
each agreement (together with any modifications or amendments thereto, a “Lease”), pursuant to which the Sellers lease, sublease, license or otherwise occupy (whether as landlord, sublandlord, tenant, subtenant or other occupancy
arrangement) any real property or interest in real property that is used or held for use in connection with the operation and use of the Facility as it is currently operated and used (the “Leased Real Property”). Except as set forth
on Schedule 5.13(b), the Sellers have furnished or made available to the Purchaser or its representatives true and complete copies of each Lease. Schedule 5.13(b) specifies (a) the use made of each Leased Real Property, (b) the street address of
each Leased Property, (c) the parties to each Lease and (d) the annual rent payable under each Lease. Except as set forth on Schedule 5.13(b), (i) each Lease may be assigned by the applicable Seller to Purchaser without the consent or approval of
any third party and (ii) no Seller has assigned, sublet, transferred or encumbered its leasehold interest. 
  
 (c) Except as set forth on Schedule 5.13(c), (i) PPLLC is (and immediately after the Closing, Purchaser shall be) the sole owner of good, valid,
marketable and indefeasible fee simple title to the Owned Real Property, including without limitation, all buildings, structures, fixtures and improvements located thereon in each case free and clear of any Liens other than Permitted Encumbrances
and (ii) PPLLC has (and immediately after the Closing, Purchaser shall have) good and valid title to the leasehold estate in the Leased Real Property, free and clear of any Liens other than Permitted Encumbrances. 
  
 (d) There are no special assessment, condemnation, eminent domain or similar
proceeding existing or pending, or, to the Knowledge of Pfizer threatened orally or in writing, relating to any Owned Real Property or any portion thereof, except as would not have a Material Adverse Effect. 
  
 (e) All Leases are in full force and effect and are valid, binding and
enforceable in accordance with their respective terms or against the parties thereto and, to the Knowledge of Pfizer, there does not exist under any such Lease any breach by PPLLC, or any condition or event which, with notice or lapse of time or
both, would constitute a default or breach or lead to a right by the lessor to terminate the Lease. None of the structures on the Owned Real Property encroaches upon real property of another Person, and no structure of any other Person substantially
encroaches upon any Owned Real Property. 
  
 (f) Except as set
forth on Schedule 5.13(f), to the Knowledge of Pfizer, none of the Owned Real Property (or the current operation or use thereof) violates in any material respect any Laws applicable to such Owned Real Property. To the Knowledge of Pfizer, no
default or breach exists under any of the covenants, restrictions, conditions, rights of 

  

 20 

 
way or easements, if any, affecting all or any portion of the Owned Real Property which, individually or in the aggregate, would reasonably be expected to
have a Material Adverse Effect. 
  
 (g) No Person has any existing
or future right to occupy space at the Owned Real Property pursuant to any lease, license, agreement or contract. None of the Sellers is obligated under or bound by any option, right of first refusal, purchase contract or other contractual right to
acquire, sell or dispose of all or any portion of the Owned Real Property. 
  
 Section 5.14. Employee Benefits. Set forth on Schedule 7.5(a) is a list of each material Plan in effect as of the date of this Agreement. 
  
 (b) As applicable with respect to each material Plan, Pfizer has made or will make available to Purchaser, true and complete
copies of (i) each such Plan, including all amendments and trust agreements thereto, (ii) the current summary plan description and each summary of material modifications thereto, (iii) if applicable, the most recent IRS and/or Puerto Rico Department
of Treasury determination letter relating thereto, and, if applicable, the three most recent years’ (A) actuary’s reports and (B) Form 5500s and related schedules. 
  
 (c) Each material Plan has been maintained, operated and administered in compliance in all material respects with its terms
and the applicable provisions of ERISA, the Puerto Rico Code, the Code and other applicable Law except where such noncompliance would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
  
 (d) To the Knowledge of Pfizer, with respect to any material Plans which are
“group health plans” under Section 607(1) of ERISA, there has been timely compliance in all material respects with all requirements imposed thereunder, and under Parts 6 and 7 of Title I of ERISA generally, so that Pfizer and any Affiliate
do not reasonably expect to incur any loss, assessment, tax penalty, or other sanction with respect to any such Plan. Neither Sellers nor any other “party in interest” (within the meaning of Section 3(14) of ERISA) has taken any action
with respect to the material Plans which would reasonably be expected to subject any such Plan (or its related trust) or any officer, director or employee of Sellers to any material penalty under Section 502(i) of ERISA. In addition, to the
Knowledge of Pfizer, Sellers have timely done all filings required by ERISA, the Code and the Puerto Rico Code as to each material Plan, and all notices or disclosures to participants required by ERISA have been timely provided. 
  
 Sections 5.15. Taxes. There are no material Liens for Taxes upon any
of the Purchased Assets, except for Liens for Taxes not yet due and payable or being contested in good faith. The Sellers have filed all material Tax Returns required to be filed with respect to the Purchased Assets and the Facility and all such Tax
Returns are true, complete and correct. The Sellers have paid all material Taxes shown to be due on such Tax Returns with respect to the Purchased Assets and the Facility. The Sellers have withheld and paid when due (or set aside in accounts for
such purpose) all material Taxes 

  

 21 

 
required to have been withheld and paid in connection with amounts paid or owing to any employee, creditor, independent contractor, foreign payee or other
third party. 
  
 Section 5.16. Brokers. No broker, finder
or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Sellers. 
  
 Section 5.17. Sufficiency of and Title to the Purchased Assets. (a)
Except as set forth on Schedule 5.17, PPLLC owns, leases or has the legal right to use all of the Purchased Assets (other than Real Property, which is the subject of Section 5.13). Except as disclosed on Schedule 5.17, PPLLC has good
title to (or in the case of leased Purchased Assets, valid leasehold interests in) all of the Purchased Assets (other than Real Property, which is the subject of Section 5.13), free and clear of any Liens except for Permitted Encumbrances.

  
 (b) The assets, properties and rights included in (i) the
Purchased Assets, without giving effect to insurance, cash and Plans which are not being transferred to Purchaser pursuant to this Agreement, and (ii) those assets used by the Facility that are to be retained by PPLLC, Pfizer or any of their
Affiliates, but made available to Purchaser pursuant to the Transitional Services Agreement, collectively constitute all the properties, assets and rights sufficient to operate the Facility in all material respects as conducted as of the date of
this Agreement. 
  
 Section 5.18. Employees. (a) Schedule
5.18(a) sets forth a true and complete list, as of the date hereof, of (i) the titles, annual salaries and other compensation of the Employees whose annual base salary exceeds $100,000, (ii) the, titles, annual salaries and date of hire of all
Employees and (iii) the wage rates for non-salaried Employees (by classification). Sellers will update Schedule 5.18(a) at or prior to Closing and will, at such time, include the names of the Employees listed on such schedules. Schedule 5.18(b) sets
forth a true and complete list of the number of all Employees who would be Inactive Employees as of the date hereof, the nature of such Inactive Employee’s absence and such Inactive Employee’s anticipated date of return to employment.
Pfizer will provide updated Schedules 5.18(a) and 5.18(b) as of the Closing Date. 
  
 (b) No Seller is a party to any collective bargaining agreement which covers or applies to any Employee. None of Sellers nor any of their Subsidiaries is involved in, or to the Knowledge of Pfizer, threatened with any
labor dispute, work stoppage, labor strike, slowdown or grievance relating to the Facility. To the Knowledge of Pfizer, there is no organizing effort or representation question at issue with respect to any Employee. Except as set forth on Schedule
5.18(c), to the Knowledge of Pfizer, there has been no charge of discrimination or unjustified dismissal or claim for compensation under the applicable wage and hour statutes filed against Sellers in relation to the Facility with the Equal
Employment Opportunity Commission, Puerto Rico’s Anti-discrimination Unit or Fair Labor Standards Board or any other Governmental or Regulatory Authority. 
  

 22 

 Section 5.19. Disclaimer. Purchaser and its representatives and agents have had and have
exercised, prior to the date hereof, the right to make all inspections and investigations of the Facility and the Purchased Assets deemed necessary or desirable by Purchaser. Purchaser is purchasing the Purchased Assets based solely on the results
of its inspections and investigations and on the representations and warranties of Pfizer expressly set forth in this Agreement and the Ancillary Agreements. In light of these inspections and investigations and the representations and warranties
made to Purchaser by Pfizer in Article V, Purchaser is relinquishing any right to any claim based on any representations and warranties, other than those specifically included in Article V and claims based on fraud or willful misconduct. Any claims
Purchaser may have for breach of representation or warranty shall be based solely on the representations and warranties of Pfizer set forth in Article V. All warranties of habitability, merchantability and fitness for any particular purpose, and all
other warranties arising under the Uniform Commercial Code (or similar foreign Laws), are hereby waived by Purchaser. Purchaser further represents that neither Pfizer nor any other Person has made any representation or warranty, express or implied,
as to the accuracy or completeness of any information regarding the Facility, any of the Purchased Assets or the Assumed Liabilities not expressly set forth in this Agreement, and neither Pfizer nor any other Person will have or be subject to any
Liability to Purchaser or any other Person resulting from the distribution to Purchaser or its representatives or agents (except to the extent such actions involved fraud or willful misconduct), or Purchaser’s use of, any such information or
any other documents or information provided to Purchaser or its representatives or agents in connection with the sale of the Facility. 
  
 ARTICLE VI 
  
 REPRESENTATIONS AND WARRANTIES OF PURCHASER AND GALEN 
  
 Purchaser and Galen represent and warrant to Sellers as follows: 
  
 Section 6.1. Organization. Purchaser is a corporation duly organized, validly existing and in good standing under the Laws of the jurisdiction of
its incorporation. Galen is a corporation duly organized, validly existing and in good standing under the Laws of Northern Ireland. 
  
 Section 6.2. Authority; Binding Effect. (a) Each of Purchaser and Galen has all requisite corporate power and authority to carry on its business as
it is now being conducted and to execute, deliver and perform each Transaction Agreement to which it is a party. The execution, delivery and performance by each of Purchaser and Galen of each Transaction Agreement to which it is a party have been
duly authorized by all requisite corporate action on the part of Purchaser or Galen. 
  
 (b) This Agreement constitutes and, when executed and delivered in accordance with its terms, each other Transaction Agreement to which each of Purchaser and Galen is a party will constitute, a valid and legally
binding obligation of Purchaser or Galen, enforceable against Purchaser or Galen in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or 

  

 23 

 
similar laws affecting creditors’ rights generally or by general principles of equity (regardless of whether enforcement is sought in a proceeding in
equity or law). 
  
 Section 6.3. Non-Contravention. The
execution, delivery and performance by each of Purchaser and Galen of each Transaction Agreement to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not (i) violate any provision of the
certificate of incorporation, bylaws or other organizational documents of Purchaser or Galen; (ii) result in a breach of, or default under, or right to accelerate with respect to, any term or provision of any contract, commitment or other obligation
to which Purchaser, Galen or any of their Affiliates is a party or is subject; or (iii) assuming compliance with the matters set forth in Sections 5.4 and 6.4, conflict with, violate or result in a breach of or constitute a default under any Law or
other restriction of any Governmental Authority to which Purchaser or Galen is subject. 
  
 Section 6.4. Governmental Authorization. Except as set forth in Schedule 6.4, the execution, delivery and performance by each of Purchaser and Galen of each Transaction Agreement to which it is a party do not
require any consent or approval of any Governmental Authority. 
  
 Section 6.5. Financial Capability. Purchaser has and Galen shall cause Purchaser to have funds sufficient for the Purchase Price to be paid by it under the terms of this Agreement. 
  
 Section 6.6. Brokers. No broker, finder or investment banker is
entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Purchaser. 
  
 ARTICLE VII  
  
 COVENANTS 
  
 Section 7.1. Information and Documents; Confidentiality. (a) From the date hereof until the Closing Date, upon
reasonable advance notice, PPLLC shall permit Purchaser and its representatives to have access, during regular business hours, to the facilities, assets, employees, books and records of each of Pfizer and PPLLC relating to the Purchased Assets, and
shall furnish, or cause to be furnished, to Purchaser such financial, tax and operating data and other available information with respect to the Purchased Assets as Purchaser and its representatives shall from time to time reasonably request;
provided that no such access shall unreasonably interfere with Pfizer or PPLLC’s operation of its businesses, including, without limitation, the Facility. 
  
 (b) All information received by Purchaser and given by or on behalf of the Sellers in connection with this Agreement and the
transactions contemplated hereby will be held by Purchaser, its Affiliates and their respective employees, officers, directors, 

  

 24 

 
agents, representatives and advisors as “Evaluation Material”, as defined in, and pursuant to the terms of, the Confidentiality Agreement.

  
 Section 7.2. Conduct of Business. From the date hereof
until the Closing Date, except as otherwise specifically contemplated by this Agreement or as Galen or Purchaser shall otherwise consent in writing, each Seller agrees that it will operate the Facility in the ordinary and usual course consistent
with past practice, and use its commercially reasonable efforts to preserve intact the Facility and related relationships with customers, suppliers and other third parties and keep available the services of the present employees. From the date
hereof until the Closing Date, except as otherwise specifically contemplated by this Agreement or as Galen or Purchaser shall otherwise consent in writing, PPLLC shall, and Pfizer shall cause PPLLC to, with respect to the Purchased Assets:

  
 (a) not incur, create or assume any Lien with respect to any
Purchased Asset other than Permitted Encumbrances; 
  
 (b) not
acquire any assets or lease or license any Purchased Asset outside of the ordinary course of business consistent with past practice or dispose of any Purchased Assets; 
  
 (c) not enter into, amend any material term of, or waive any material right under, any Material Contract; 
  
 (d) not make or change any tax election with respect to any Purchased Asset;

  
 (e) not (i) enter into any employment, deferred compensation,
severance, retirement or other similar agreement with any Employee (or amend any such existing agreement), (ii) grant any severance or termination pay to any Employee, or (iii) change the compensation or other benefits payable to any Employee
whether pursuant to any severance or retirement plans or policies thereof or otherwise, other than in the case of each of clauses (i) through (iii) in the ordinary course of business consistent with past practice, in which case Sellers shall use
commercially reasonable efforts to provide Purchaser with reasonable notice prior to the Closing Date; 
  
 (f) not hire any employees to work primarily at the Facility, and not terminate the employment of any Employee, in any case other than in the ordinary
course of business consistent with past practice; and 
  
 (g) not
agree to take any of the foregoing actions. 
  
 Section 7.3.
Reasonable Best Efforts; Certain Governmental Matters. Upon the terms and subject to the conditions herein provided (including, without limitation, Section 2.2 hereof), each of the parties hereto agrees to use its reasonable best efforts to
take, or cause to be taken, all actions and to do, or cause to be done, all things necessary under applicable Laws to consummate and make effective the transactions contemplated by the Transaction Agreements, including, without limitation, (i) to
comply promptly with all legal requirements which may be imposed on it with respect to the Transaction 

  

 25 

 
Agreements and the transactions contemplated thereby (which actions shall include, without limitation, furnishing all information required by applicable Law
in connection with approvals of or filings with any Governmental Authority); (ii) to satisfy the conditions precedent to the obligations of such party hereto; (iii) to obtain any consent, authorization, order or approval of, or any exemption by, any
Governmental Authority or other public or private third party required to be obtained or made by Purchaser or the Sellers in connection with the transactions contemplated by the Transaction Agreements; (iv) to timely file the notice required
pursuant to paragraph XIX of the Consent Decree of Permanent Injunction entered against Warner-Lambert Company in United States v. Warner-Lambert Company, No. 93-3525 (D. N.J. filed August 16,1993; and (v) to take any action reasonably necessary to
vigorously defend, lift, mitigate or rescind the effect of any litigation or administrative proceeding adversely affecting the consummation of the transactions contemplated by the Transaction Agreements, including promptly appealing any adverse
court or administrative decision. 
  
 (b) Subject to appropriate
confidentiality protections and applicable Law, each of the parties hereto will furnish to the other party such necessary information and reasonable assistance as such other party may reasonably request in connection with the foregoing and will
provide the other party with copies of all filings made by such party with any Governmental Authority and, upon request, any other information supplied by such party to a Governmental Authority in connection with the Transaction Agreements and the
transactions contemplated thereby. 
  
 Section 7.4. Tax
Matters. (a) Preparation and Filing of Tax Returns. The Sellers shall be responsible for the preparation and timely filing of all Tax Returns in respect of the Retained Tax Liabilities that are required by Law to be filed by the Sellers.
Purchaser shall be responsible for the preparation and timely filing of all Tax Returns that are required to be filed after the Closing Date with respect to periods on or after the Closing Date in respect of the Facility or the Purchased Assets.

  
 (b) Tax Cooperation. Each of Purchaser, on the one
hand, and the Sellers, on the other hand, shall provide the other party with such information and records and make such of its officers, directors, employees and agents available as may reasonably be requested by such other party in connection with
the preparation of any Tax Return or any audit or other proceeding that relates to the Facility. 
  
 (c) Tax Rate. Each Seller, Purchaser and Galen shall use its commercially reasonable efforts to take, or cause to be taken, all actions and to do,
or cause to be done, all things necessary under applicable Laws to apply for and obtain a tax grant from the appropriate Governmental Authority in Puerto Rico granting Purchaser an income tax rate in respect of its operations in Puerto Rico
substantially similar to the rate enjoyed by Pfizer and its Affiliates with respect to their operations in Puerto Rico in effect as of the date hereof, taking into account, among other things, differences in (i) the total number of individuals
employed, and (ii) economic investment, in each case by Sellers, on the one hand, and Purchaser and Galen, on the other hand, in Puerto Rico. Each Seller, Purchaser and Galen will cooperate with the other and furnish all necessary assistance as is
reasonably appropriate in connection with the foregoing. 
  

 26 

 (d) Refunds. In the case of any refunds or credits with respect to real or personal property Taxes
for any Straddle Period, the Sellers shall be entitled to receive payment (promptly after receipt or entitlement thereto) of the amount of such refunds or credits multiplied by the fraction described in Section 2.5 for such Straddle Period.

  
 Section 7.5. Employees and Employee Benefits. (a)
Employees - Offer of Employment; Continued Employment: Severance. Purchaser agrees to offer employment as of 12:01 a.m. on the day immediately following the Closing Date to each Employee listed in Schedule 5.18(a)(ii) as of the Closing
Date in the same or a comparable position and at a rate of pay at least equal to such Employee’s rate of pay as of the Closing Date, and to provide Affected Employees with employee benefits in the aggregate comparable to the employee benefits
set forth in Schedule 7.5(a)(i) as in effect on the Closing Date (without duplication of any employee benefits provided to such Affected Employee by Pfizer and its Affiliates after the Transfer Date) in accordance with the provisions of this Section
7.5, which the parties agree are satisfied by the benefits set forth on Schedule 7.5(a)(iii). For purposes of this Section 7.5, references to “pay” shall be limited to base pay plus any commission and annual bonus opportunity, and
shall exclude retention and retention/performance allowances. Such employment initially shall be at a location within a twenty-five mile radius of the Employee’s location of employment as of the Closing Date. Purchaser shall have no obligation
whatsoever with regard to (i) former employees at the Facility who are retired or who are not or shall have ceased to be Employees on or prior to the Closing Date, (ii) Employees who do not accept the offer of employment or continuation of
employment given by the Purchaser in accordance with this Section 7.5(a) or do not work for Purchaser or its Affiliates for at least one (1) day, or (iii) Inactive Employees who do not return to active work with Purchaser at the end of the Inactive
Employee’s leave and in any event within one year following the Closing Date (or such other longer period as is required by applicable law). Purchaser shall be solely responsible for all benefits (other than for retiree health as provided in
Section 7.5(d)(ii) and any continuation health care coverage offered by Sellers pursuant to the requirements set forth in Section 4980B of the Code and Title I, Subtitle B, Part 6 of ERISA and any similar state local law
(“COBRA”)), salaries or wages (including bonuses, incentive payments and commissions) accruing after the applicable Transfer Date with respect to the Affected Employees. Purchaser may, at its discretion, change the conditions of
employment of Affected Employees after the applicable Transfer Date except for (i) the twenty-five mile location requirement described in this Section 7.5(a), (ii) the pay and benefits comparability requirements described in this Section 7.5(a), and
(iii) the employee separation plan obligations described in Schedule 7.5(a)(ii), all of which requirements must continue to be satisfied by Purchaser until the date immediately following the second (2nd) anniversary of the Closing Date; provided however, that Purchaser or its Affiliates may amend any benefit program contained in Schedule 7.5(a)(iii)
covering Affected Employees during such two-year period (x) as required by applicable Laws, or (y) to make changes that, taken as a whole, do not cause the plans maintained by Purchaser set forth on Schedule 7.5(a)(iii) with such modification to be
not substantially comparable in the aggregate to the employee benefits set forth in Schedule 7.5(a)(i); any of which changes may only be made with respect to Affected Employees if Purchaser is making the same change with respect to other
similarly-situated employees 

  

 27 

 
of Purchaser or its Affiliates. Following the second anniversary of the Closing Date, Purchaser shall initially provide then-active Affected Employees with
pay, benefits and severance plans, programs and policies which are in the aggregate no less favorable than those provided to other similarly situated employees of Purchaser or its Affiliates. Nothing in the foregoing shall be construed in any way to
limit or restrict the Purchaser’s right to terminate the employment of any Affected Employee at any time on or following the Closing Date, with or without cause, so long as the requirements of this Section 7.5 are otherwise met, including,
without limitation, the Purchaser’s agreement to provide the severance benefits to such Affected Employee as provided in Schedule 7.5(a)(ii). 
  
 (b) Service Credit. Affected Employees shall also be provided credit by the Purchaser for all service with Pfizer and its Affiliates, to the same
extent as such service was credited for such purpose by Pfizer and its Affiliates under the Plans in which such Affected Employee participated immediately prior to the applicable Transfer Date, under the comparable type of employee benefit plan made
available to Affected Employees by Purchaser on or after the Transfer Date for purposes of eligibility to participate and vesting and for purposes of the level of severance benefits, but not for purposes of benefit accruals or any other purpose;
provided that no such credit will be given to the extent it would result in duplication of benefits to any Affected Employee. 
  
 (c) Accrued Vacation Entitlements. Purchaser shall assume responsibility for accrued but unused vacation and holiday pay, for Affected Employees as
of the applicable Transfer Date consistent with Pfizer’s policy in respect thereof. 
  
 (d) Medical and Welfare Plan Obligations. (i) Commencing as of 12:01 a.m. on the day immediately following the applicable Transfer Date, Purchaser shall make available to Affected Employees the welfare plans
listed on Schedule 7.5(a)(iii). Purchaser agrees to waive any waiting periods or limitations for preexisting conditions under its medical, dental, life insurance, and short-term and long-term disability plans offered or made available to the
Affected Employee immediately following the applicable Transfer Date to the same extent such period or limitation was satisfied by the Affected Employee or waived by Pfizer and its Affiliates for the same purpose under the comparable type of Plan in
which the Affected Employee was participating immediately prior to the Transfer Date. Purchaser further agrees to and shall ensure that such Affected Employees are given credit for any amounts paid in respect of such Affected Employee under the Plan
in which such Affected Employee was participating immediately prior to the applicable Transfer Date towards satisfaction of the applicable deductibles, out-of-pocket limits or other fees under the comparable type of employee benefit plan of
Purchaser in which such Affected Employee first participates after the applicable Transfer Date, to the same extent such credit was given under the applicable Plan, and in each case in respect of the plan year in which the Closing Date occurs.
Claims incurred by an Affected Employee for medical and dental services rendered on or after the applicable Transfer Date (other than for retiree health as provided in Section 7.5(d)(ii) and any continuation health care coverage required by COBRA)
shall be the responsibility of Purchaser. Claims incurred for medical and dental services for Affected Employees rendered prior to the applicable Transfer Date shall be the responsibility of 

  

 28 

 
the group medical and dental plans of Pfizer that covered such employees prior to the applicable Transfer Date. 
  
 (ii) Notwithstanding any other provision of this Agreement
to the contrary, the Sellers shall provide benefits pursuant to any post-retirement welfare benefit plans maintained by either Seller to or in respect of any Affected Employee who, at the relevant Transfer Date, was eligible to retire and commence
benefits under the relevant post-retirement welfare benefit plan. Such post-retirement welfare benefits under Seller’s Plans shall commence following the Affected Employee’s termination of employment with the Seller, pursuant to the terms
of the applicable post-retirement welfare benefit plan. 
  
 (e)
Employees Absent on Disability or Leaves of Absence - Offer of Employment; Continued Employment; Severance. When an Inactive Employee seeks to return to active employment, Purchaser shall offer immediate employment to such Inactive
Employee in the same or a comparable position to that which the Inactive Employee occupied before such Inactive Employee’s absence but only at such time that such Inactive Employee is mentally and physically capable of performing the essential
functions of the position occupied immediately before such absence; provided that Purchaser shall not be required to offer immediate employment to Inactive Employees who seek to return to active work later than 12 months after the commencement of
such Inactive Employee’s approved leave (or, in the case of Inactive Employees who seek to return from approved leaves where return to work is subject to statutory requirements, later than the end of such period as is required by applicable law
or 12 months, whichever is later). Pfizer and its Affiliates will retain and continue to be responsible for all compensation, benefits, severance and employment related obligations and liabilities relating to each Inactive Employee until and through
the applicable Transfer Date. As soon as practicable following the Transfer Date of an Inactive Employee, Purchaser shall reimburse Pfizer for all pay, and all company-share premiums paid in respect of the Plans that are welfare plans, paid by
Pfizer and its Affiliates on behalf of such Affected Employee, in each case at a rate not in excess of that in effect at the Closing Date, in respect of the period after the Closing Date and prior to the Transfer Date. 
  
 (f) Retirement Benefits. On or prior to the Closing Date, Pfizer shall
take all action necessary to cause the accrued benefit of each Affected Employee to be fully vested, as of the Transfer Date under the tax-qualified savings and tax-qualified pension plans in which each Affected Employee participates. 
  
 (g) No Third Party Beneficiaries. Nothing contained herein, expressed
or implied, is intended to confer upon any Employee any benefits under any benefit plans, programs, policies or other arrangements, including, but not limited to, severance benefits or right to employment or continued employment with Purchaser or
any Affiliate of Purchaser for any period by reason of this Agreement. In addition, the provisions of this Agreement, in particular this Article VII, are for the sole benefit of the parties to this Agreement and are not for the benefit of any third
party. 
  

 29 

 Section 7.6. Limits on Certain Solicitation. 
  
 (a) (i) After the date hereof, and up to and including the Closing Date,
Pfizer and its Subsidiaries shall not, directly or indirectly, make an offer of employment to any Employee or, directly or indirectly, offer competing terms and conditions of employment to Purchaser’s offer other than, in each case, the
Approved Pfizer Employees, and (ii) for a period of two (2) years after the Closing Date, Pfizer and its Subsidiaries shall not, directly or indirectly, make an offer of employment to any officers or employees of Galen, Purchaser or any of their
Affiliates engaged primarily in the operation or management of the Facility, or violate the terms of their contracts or any employment arrangements with Galen, Purchaser or any such Affiliate, except that nothing in this sentence shall restrict or
preclude the rights of Pfizer and its Subsidiaries to make generalized searches for employees by the use of advertisements in the media (including trade media) or by engaging search firms to engage in searches that are not targeted or focused on the
employees employed at the Facility. 
  
 (b) Prior to Closing,
except as contemplated by this Agreement or except as otherwise agreed in writing, neither Purchaser nor any of its Affiliates will offer or provide employment on a full-time, part-time or consulting basis to any individual that is not an Approved
Employee employed in the operation of the Facility by Pfizer or any of its Affiliates, except that nothing in this sentence shall restrict or preclude Purchaser or any of its Affiliates from holding Facility-wide meetings on or prior to the Closing
Date during normal business hours on mutually agreed upon dates with the purpose of making generalized announcements to all individuals employed in the operation of the Facility as of the Closing Date regarding offers of employment by Purchaser or
any of its Affiliates after the Closing Date. 
  
 Section 7.7.
Insurance. 
  
 As of the Closing Date, the coverage under
all insurance policies related to the Facility shall continue in force only for the benefit of the Sellers and their Affiliates and not for the benefit of Purchaser. Purchaser agrees to arrange for its own insurance policies with respect to the
Purchased Assets covering all periods and agrees not to seek, through any means, to benefit from any of Sellers’ or their Affiliates’ insurance policies which may provide coverage for claims relating in any way to the Facility on or prior
to the Closing Date. 
  
 Section 7.8. Notification of Certain
Matters. Sellers shall give prompt notice to Galen, and Galen and Purchaser shall give prompt notice to Pfizer of the occurrence, or non-occurrence, of any event the occurrence or non-occurrence of which would be reasonably likely to cause (i)
any representation or warranty of the Sellers, Galen or Purchaser, as the case may be, contained in this Agreement to be untrue or inaccurate in any material respect at or prior to the Closing or (ii) any Seller, Galen or Purchaser, as the case may
be, to fail to comply with or satisfy in any material respect any covenant, condition or agreement to be complied with or satisfied by it hereunder; provided however, that the delivery of any notice pursuant to this Section 7.8 shall not
limit or otherwise affect the remedies available hereunder to the party receiving such notice. 
  

 30 

 Section 7.9. Bulk Transfer Laws. Purchaser acknowledges that the Sellers have not taken, and do
not intend to take, any action required to comply with any applicable bulk sale or bulk transfer laws or similar laws. Sellers agree to indemnify Purchaser for any loss resulting from Sellers’ failure to comply with any applicable bulk sale or
bulk transfer laws or similar laws. 
  
 Section 7.10. Trade
Notification. The Sellers, Galen and Purchaser shall agree on the method and content of the notifications to customers, if any, of the sale of the Purchased Assets to Purchaser. The Sellers, Galen and Purchaser agree that said notifications are
to provide sufficient advance notice of the transition and the plans associated therewith, to minimize any disruption of the operation of the Facility. 
  
 Section 7.11. Transitional Services Agreement. At the Closing, Purchaser and Pfizer shall enter into, execute and deliver the Transitional Services
Agreement. 
  
 Section 7.12. Transitional Supply Agreement.
At the Closing, Purchaser and Pfizer shall enter into, execute and deliver the Transitional Supply Agreement. 
  
 Section 7.13. Access to Information. After the date hereof, upon reasonable advance notice, Sellers shall permit Purchaser, at Purchaser’s
cost and expense, to have reasonable access during normal business hours to Sellers’ files, documents, papers, books and records and personnel relating to the Purchased Assets that are not Purchased Assets. 
  
 ARTICLE VIII 
  
 INDEMNIFICATION 
  
 Section 8.1. Indemnification by the Sellers. 
  
 (a) Subject to the provisions of this Article VIII, the Sellers agree, on a joint and several basis, to defend, indemnify and hold harmless Galen,
Purchaser and their respective Affiliates and, their respective directors, officers, agents, employees, successors and assigns from and against any and all claims, actions, causes of action, judgments, awards, liabilities, losses, costs (including
reasonable attorney’s fees) or damages (each, a “Loss” and collectively, the “Losses”) claimed or arising directly from (i) any Retained Liability, (ii) any breach by a Seller of any of its covenants or
agreements contained in this Agreement or the Transitional Services Agreement; and (iii) any breach of any representation or warranty of the Sellers contained in this Agreement or the Transitional Services Agreement. 
  
 (b) Purchaser and Galen acknowledge and agree that the Sellers shall not have
any liability under any provision of this Agreement for any Loss to the extent that such Loss results from any action taken by Purchaser, Galen or their respective Affiliates after the Closing Date; provided that this Section 8.1(b) shall not
relieve Sellers of any obligation for any Loss with respect to Excluded Environmental Liabilities or any breach of any representation or warranty of Sellers in Section 5.11(Environmental Matters) 

  

 31 

 
except to the extent that the Loss involved results from negligent or grossly negligent actions taken, or intentional exacerbations of the Losses, by
Purchaser, Galen or their respective Affiliates. Each of Galen and Purchaser shall take and shall cause their respective Affiliates to take all reasonable actions to mitigate any Loss upon becoming aware of any event which would reasonably be
expected to, or does, give rise thereto. 
  
 Section 8.2.
Indemnification by Purchaser. Subject to the provisions of this Article VIII, Galen and Purchaser agree, on a joint and several basis, to defend, indemnify and hold harmless the Sellers and their respective Affiliates and, if applicable,
their respective directors, officers, agents, employees, successors and assigns from and against any and all Losses claimed or arising directly from (i) any Assumed Liability, (ii) any breach by Galen or Purchaser of any of their covenants or
agreements contained in this Agreement or the Transitional Services Agreement, (iii) any breach of any representation or warranty of Galen or Purchaser contained in this Agreement or the Transitional Services Agreement; and (iv) events occurring on
or after the Closing Date in connection with the Facility or the Purchased Assets (including, without limitation, the use, ownership, possession, operation or occupancy of any real property, the Facility or the Purchased Assets from and after the
Closing Date), provided, however, that nothing in this Section 8.2(a)(iv) is intended to limit the scope of Sellers’ indemnification obligations under Section 8.1(a). 
  
 (b) Each Seller shall take and shall cause its Affiliates to take all reasonable actions to mitigate any Loss upon becoming
aware of any event which would reasonably be expected to, or does, give rise thereto. 
  
 Section 8.3. Notice of Claims. If any of the Persons to be indemnified under this Article VIII (each, an “Indemnified Party”) has suffered or incurred any Loss, the Indemnified Party shall so
notify the party from whom indemnification is sought {the “Indemnifying Party”) promptly in writing describing such Loss, the amount or estimated amount thereof, if known or reasonably capable of estimation, and the method of
computation of such Loss, all with reasonable particularity and containing a reference to the provisions of this Agreement or any other agreement, instrument or certificate delivered pursuant hereto in respect of which such Loss shall have occurred.
If any action at law or suit in equity is instituted by or against a third party with respect to which the Indemnified Party intends to seek indemnification under this Article VIII the Indemnified Party shall promptly notify the Indemnifying Party
of such action or suit and permit the Indemnifying Party to participate in and control the defense of such action or suit. A failure to give such notice in a timely manner pursuant to this Section 8.3 shall not limit the obligation of the
Indemnifying Party under this Article VIII, except (i) to the extent such Indemnifying Party is prejudiced thereby, (ii) to the extent expenses are incurred during the period in which notice was not provided or (iii) as provided by Section 8.5
below. Notice shall be deemed to have been provided by Purchaser to Pfizer pursuant to this Section 8.3 with regard to the matters referenced in the definition of Scheduled Environmental Commitments, and Pfizer shall be deemed to have notified
Purchaser that it will conduct and control the defense and management of any required Remedial Action with regard to the matters referenced in the definition of Scheduled Environmental Commitments. 
  

 32 

 (b) Except when a notice, report or other filing must be filed immediately pursuant to Environmental
Laws, Purchaser will provide to Pfizer a reasonable opportunity to comment with respect to any Required Governmental Report before Purchaser files it in connection with an event which at the time of filing appears reasonably likely to result in a
Loss subject to the indemnification provisions of this Article VIII. In the event Purchaser is required to file such Required Governmental Report without providing to Pfizer an opportunity to comment thereon, Purchaser will provide simultaneous
notice to Pfizer when it files the report with the Governmental Authority and will provide copies to Pfizer within a reasonable period of time under the circumstances. 
  
 Section 8.4. Third Party Claims. The Indemnifying Party under this Article VIII shall have the right, but not the
obligation, to conduct and control, through counsel of its choosing, any third party claim, action, suit or proceeding (a “Third Party Claim”), and the Indemnifying Party may compromise or settle the same; provided that the
Indemnifying Party shall give the Indemnified Party advance notice of any proposed compromise or settlement. No Indemnified Party may compromise or settle any Third Party Claim for which it is seeking indemnification hereunder without the consent of
the Indemnifying Party. The Indemnifying Party shall permit the Indemnified Party to participate in the defense of any such action or suit through counsel chosen by the Indemnified Party; provided that the fees and expenses of such counsel
shall be borne by the Indemnified Party. If the Indemnifying Party elects not to control or conduct the defense or prosecution of a Third Party Claim, the Indemnifying Party shall still have the right to participate in the defense or prosecution of
any Third Party Claim and, at its own expense, to employ counsel of its own choosing for such purpose. 
  
 (b) The parties hereto shall cooperate in the defense or prosecution of any Third Party Claim, with such cooperation to include (i) the retention and the
provision of the Indemnifying Party records and information that are reasonably relevant to such Third Party Claim and (ii) the making available of employees on a mutually convenient basis for providing additional information and explanation of any
material provided hereunder. 
  
 Section 8.5. Expiration.
(a) Notwithstanding anything in this Agreement to the contrary, if the Closing shall have occurred, all covenants, agreements, representations and warranties made herein or in any certificate delivered pursuant hereto shall survive the Closing, but
all representations and warranties made herein or in any certificate delivered pursuant hereto, and all indemnification obligations under Sections 8.1. and 8.2 with respect to any such representation or warranty (except for the representations and
warranties in Section 5.11 and the related indemnity obligations which shall survive until the third anniversary of the Closing Date), shall terminate and expire on, and no action or proceeding seeking damages or other relief for breach,
misrepresentation or inaccuracy with respect thereto shall be commenced after, December 31, 2005 (or the third anniversary of the Closing Date in the case of any representation or warranty in Section 5.11), with respect to all claims of any party
(including any Indemnified Party) which shall not have been previously asserted with reasonable specificity by written notice given under Section 8.3. 
  

 33 

 (b) As to indemnification obligations under Section 8.1(a)(i) with respect to clauses (i) and (ii) of the
definition of Excluded Environmental Liabilities, such obligations shall not terminate. As to indemnification obligations under Section 8.1(a)(i) with respect to (x) clause (iii) of the definition of Excluded Environmental Liabilities and (y) clause
(iv) of the definition of Excluded Environmental liabilities (but only as it concerns Third Party Claims described in clause (ii) of the definition of Scheduled Environmental Commitments), such obligations shall terminate and expire on, and no
action or proceeding seeking damages or other relief with respect thereto shall be commenced after the third anniversary of the Closing Date, unless prior to the date set forth in subparagraph (x) or (y) above, an Indemnified Party shall have
provided written notice of a claim under Section 8.3 or Third Party Claims shall have been made against the Indemnified Party and written notice thereof had been given to Sellers under Section 8.3. Indemnification obligations with respect to clause
(iv) of the definition of Excluded Environmental Liabilities (but only as it concerns Remedial Actions described in clause (i) of the definition of Scheduled Environmental Commitments), shall be governed by Sections 8.9 and 8.10. 
  
 Section 8.6. Certain Limitations. The Sellers shall not have any
indemnification obligation under (A) Section 8.1(a)(i) in respect of Excluded Environmental Liabilities, except for clauses (i) and (ii) in the definition of Excluded Environmental Liabilities, or (B) Section 8.1(a)(iii) for Losses in respect of any
breach of any representation or warranty of the Sellers in this Agreement except in respect of . breaches of Sections 5.1, 5.2 and 5.17 unless the aggregate of all such Losses for which the Sellers would, but for this provision, be liable exceeds on
a cumulative basis US$50,000, but if such amount is exceeded, the Sellers shall be required to pay only the amount of such Losses which in the aggregate exceed US$50,000; provided however, that the Sellers shall have no indemnification
obligation under (A) clause (iii) of Section 8.1(a), and (B) Section 8.1(a)(i) in respect to clause (iv) (but only as it concerns Third Party Claims described in clause (ii) of the definition of Scheduled Environmental Commitments) in the definition
of Excluded Environmental Liabilities, for Losses which in the aggregate are in excess of US$3,000,000. 
  
 Section 8.7. Losses Net of Other Indemnities, Etc. The amount of any Loss for which indemnification is provided under Section 8.1 or 8.2 shall be
net of (i) any amounts recovered by the Indemnified Party pursuant to any indemnification by or indemnification agreement with any third party (any such third party, a “Collateral Source”) and (ii) an amount equal to the present
value of the tax benefit, if any, attributable to such Loss. Indemnification under this Article VIII shall not be available unless the Indemnified Party first uses all commercially reasonable efforts to seek recovery from all Collateral Sources. The
Indemnifying Party may require an Indemnified Party to assign the rights to seek recovery pursuant to the preceding sentence; provided, however, that the Indemnifying Party will then be responsible for pursuing such claim at its own expense. If the
amount to be netted hereunder from any payment required under Section 8.1 or 8.2 is determined after payment by the Indemnifying Party of any amount otherwise required to be paid to an Indemnified Party to this Article VIII, the Indemnified Party
shall repay to the Indemnifying Party, promptly after such determination, any amount that the Indemnifying Party would not 

  

 34 

 
have had to pay pursuant to this Article VIII had such determination been made at the time of such payment. 
  
 Section 8.8. Sole/Remedy/Waiver. The parties hereto acknowledge and
agree that the remedies provided for in this Agreement shall be the parties’ sole and exclusive remedy with respect to the subject matter of this Agreement, except for claims based on fraud or willful misconduct. In furtherance of the
foregoing, each party hereby waives, to the fullest extent permitted by applicable Law, any and all other rights, claims and causes of action with respect to the subject matter of this Agreement, (including rights of contribution, if any) known or
unknown, foreseen or unforeseen, which exist or may arise in the future, that it may have against the Sellers or any of the Affiliates, or Purchaser or any of its Affiliates, as the case may be, arising under or based upon any federal, state or
local Law (including, without limitation, any such Law relating to the environmental matters or arising under or based upon any common law or otherwise), except to the extent such rights, claims and causes of action are based on fraud or willful
misconduct. 
  
 Section 8.9. Indemnification Procedures for
Remedial Actions on Purchased Assets, (a) Pfizer shall have the right, but not the obligation, to conduct and control the management of a Remedial Action at a property included in the Purchased Assets that is subject to indemnification pursuant
to this Agreement. Pfizer must notify Purchaser, within 30 days of receipt of notice of Purchaser’s claim for indemnification for such matter, mat (i) it intends to undertake said responsibility or (ii) more information is needed from Purchaser
before Pfizer can reasonably determine that Purchaser’s claim is subject to indemnification pursuant to this Agreement. Purchaser shall promptly respond to such requests for information (to the extent such information is reasonably available to
Purchaser) and, within 30 days of receipt of such information (or notice that such information is not reasonably available to Purchaser), Pfizer shall notify Purchaser as to whether it shall undertake the Remedial Action. Failure of Pfizer to notify
Purchaser within 30 days of receipt of notice of Purchaser’s claim for indemnification (or receipt of requested information or notice that such information is not reasonably available to Purchaser, as the case may be) shall be deemed a
determination by Pfizer that it declines to undertake the Remedial Action. Prior to a determination by Pfizer regarding whether it will undertake a Remedial Action pursuant to this Section, Purchaser shall take only those actions necessary to comply
with applicable Environmental Laws or address conditions that pose an immediate and acute health risk (unless additional actions are approved by Pfizer, which approval shall not be unreasonably withheld, conditioned or delayed). Notwithstanding
anything to the contrary in this Agreement, Pfizer shall be deemed to have provided notice pursuant to this Section 8.9(a) that it will conduct and control the management of any required Remedial Action with regard to matters referenced in the
definition of Scheduled Environmental Commitments. 
  
 (b) In
undertaking a Remedial Action pursuant to this Section, Pfizer shall promptly propose a qualified independent environmental consultant to develop and implement the Remedial Action, which consultant shall be subject to Purchaser’s approval (such
approval not to be unreasonably delayed, withheld or conditioned) (the “Pfizer Consultant”). Pfizer shall diligently undertake such Remedial Action in accordance with applicable Environmental Laws and shall not cause, any undue delay in

  

 35 

 
obtaining written notice from the appropriate Governmental Authority that no further investigation or remediation is necessary with respect to the matter
that is the subject of the indemnification claim to meet the Applicable Remedial Action Standards (a “Government NFA Letter”) or, if no Governmental Authority is involved in such matter, a good faith determination from the Pfizer
Consultant that no further investigation or remediation is required to bring the Purchased Assets into conformance with Applicable Remedial Action Standards (a “Consultant NFA Letter”). Pfizer shall comply with all applicable Laws,
including all applicable Environmental Laws, with respect to its performance pursuant to this Section. Pfizer shall promptly provide copies to Purchaser of all notices, correspondence, final draft reports, submissions, work plans, and final reports
and shall give Purchaser a reasonable opportunity given the circumstances {at Purchaser’s own expense) to comment on any submissions Pfizer intends to deliver or submit to the appropriate Governmental Authority prior to said submission.
Purchaser may, at its own expense, hire its own consultants, attorneys or other professionals to monitor the Remedial Action, including any field work undertaken by Pfizer, and Pfizer shall provide Purchaser with the results of all such field work.
Subject to Purchaser’s rights to cooperatively participate in the Remedial Action as described herein and Purchaser’s rights to participate as a member of the public, Purchaser shall not take any actions that shall unreasonably interfere
with Pfizer’s performance of the Remedial Action. Pfizer shall undertake any Remedial Action in a manner that does not interfere in any material respect with the conduct of operations at the Facility. Pfizer and Purchaser shall work
cooperatively and in good faith to accommodate the reasonable access needs of Pfizer; 
  
 (c) If Pfizer declines to undertake the performance of a Remedial Action as provided in Section 8.9(a), Purchaser shall be entitled to undertake the Remedial Action to the Applicable Remedial Action Standards. In
undertaking a Remedial Action pursuant to this Section, Purchaser shall promptly propose a qualified independent environmental consultant to develop and implement the Remedial Action, which consultant shall be subject to Pfizer’s approval (such
approval not to be unreasonably delayed, withheld or conditioned) {the “Purchaser Consultant”). Purchaser shall promptly provide copies to Pfizer of all notices, correspondence, final draft reports, submissions, work plans, and final
reports and shall give Pfizer a reasonable opportunity (at Pfizer’s own expense) to comment on any submissions Purchaser intends to deliver or submit to any appropriate Governmental Agency prior to said submission. Pfizer may, at its own
expense, hire its own consultants, attorneys or other professionals to monitor the Remedial Action, including any field work undertaken by Purchaser, and Purchaser shall provide to Pfizer the results of all such field work. Subject to Pfizer’s
rights to cooperatively participate in the Remedial Action as described herein and Pfizer’s rights to participate as a member of the public, Pfizer shall not take any actions that interfere with Purchaser’s performance of the Remedial
Action. Pfizer’s decision to allow Purchaser to undertake Remedial Action hereunder shall not limit or affect Pfizer’s obligation to indemnify Purchaser for said Remedial Action as provided in this Agreement. 
  
 (d) Pfizer’s indemnification obligation under this Agreement to
undertake any Remedial Action (including, but not limited to, Remedial Actions relating to Scheduled 

  

 36 

 
Environmental Commitments) shall be deemed to be satisfied upon the receipt of either a Governmental NFA Letter or Consultant NFA Letter. 
  
 Section 8.10. Limitation on Indemnification for Scheduled Environmental
Commitments and Third Party Claims for Remedial Action. Notwithstanding anything to the contrary in this Agreement to the extent Pfizer has indemnification obligations for Remedial Actions at any property included in the Purchased Assets under
Section 8.1 hereof, including, without limitation, situations where Purchaser undertakes the Remedial Action pursuant to the last sentence of Section 8.9(c), such obligations shall be limited by this Section 8.10. Pfizer shall be responsible for the
cost of such Remedial Action as reasonably determined by the Pfizer Consultant, if Pfizer is undertaking the Remedial Action, or the Purchaser Consultant, if Purchaser is undertaking the Remedial Action, in either case as necessary to meet, in the
most cost-effective manner: (i) standards required by applicable Environmental Law consistent with the industrial/commercial use of the Facility as of the Closing Date taking into consideration, where applicable, land use restrictions, and
engineering and/or institutional controls, or (ii) in the event any Governmental Authority is making a claim for Remedial Action, a standard pursuant to applicable Environmental Laws acceptable to such Governmental Authorities, and, in either case
(i) or (ii), that does not limit or interfere in any material respect with the continued use of the Facility in substantially the same manner as the Facility is used by Sellers as of the Closing Date (the “Applicable Remedial Action
Standard”). Pfizer shall not be responsible for those costs incurred in connection with a Remedial Action to the extent such costs arise from or are exacerbated by negligent or grossly negligent actions of, or intentional exacerbations by,
Purchaser. 
  
 Section 8.11. Tax Treatment. Amounts paid
to, by, or on behalf of the Purchaser as indemnification hereunder shall be treated as adjustments to the Purchase Price. 
  
 Section 8.12. No Consequential Damages. EXCEPT WITH RESPECT TO A PARTY’S INDEMNIFICATION OBLIGATIONS HEREUNDER WITH RESPECT TO THIRD PARTY
CLAIMS, NO PARTY TO THIS AGREEMENT SHALL BE LIABLE TO OR OTHERWISE RESPONSIBLE TO ANY OTHER PARTY HERETO OR ANY AFFILIATE OF ANY OTHER PARTY HERETO FOR SPECIAL, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES OR FOR DIMINUTION IN VALUE OR LOST PROFITS
THAT ARISE OUT OF OR RELATE TO THIS AGREEMENT OR THE PERFORMANCE OR BREACH HEREOF OR ANY LIABILITY RETAINED OR ASSUMED HEREUNDER. 
  
 ARTICLE IX  
  
 TERMINATION 
  
 Section 9.1. Termination. This Agreement may be terminated at any time prior to the Closing: 
  
 (a) by written agreement of Galen, Purchaser and Sellers; 
  

 37 

 (b) by either Galen, Purchaser or Pfizer, by giving written notice of such termination to the other
party, if the Closing shall not have occurred on or prior to July 31, 2004. 
  
 (c) by either Seller or Purchaser, by giving written notice of such termination to the other party, if any court of competent jurisdiction or other competent Governmental Authority shall have issued a Governmental
Order or taken any other action permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and such Governmental Order or other action shall have become final and nonappealable. 
  
 Section 9.2. Effect of Termination. (a) In the event of the
termination of this Agreement in accordance with Section 9.1 hereof, this Agreement shall thereafter become void and have no effect, and no party hereto shall have any liability to the other parties hereto or their respective Affiliates, directors,
officers or employees, except for the obligations of the parties hereto contained in this Section 9.2 and in Sections 7.1(b), 10.1, 10.7, 10.8, 10.9 and 10.11 hereof. 
  
 (b) Notwithstanding anything to the contrary in Section 9.2(a), in the event this Agreement shall be terminated and at such
time any party is in material breach of or default under any term or provision hereof, such termination shall be without prejudice to, and shall not affect, any and all rights to damages that the other party may have hereunder or otherwise under
applicable Law. The damages recoverable by the non-defaulting party shall include, without limiting the generality of the immediately preceding sentence, all attorneys’ fees reasonably incurred by such parties in connection with the
transactions contemplated hereby. 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 Section 10.1. Notices. All notices or other communications hereunder
shall be made in writing (including facsimile transmission) and shall be given: 
  
 If to any Seller, to: 
  
 PFIZER
INC. 
 235 East 42nd Street 
 New
York, NY 10017 
 Telephone: 212-733-4935 
 Facsimile: 212-808-8924 
 Attn: Senior Vice President & 
 General Counsel 
  
 If to Purchaser or Galen, to: 
  
 GALEN HOLDINGS PLC 
 100 Enterprise Drive

  

 38 

 Rockaway, New Jersey 07866 
 Telephone: (973) 442-3371 
 Facsimile: (973) 442-3316 
 Attn: Executive Vice President, Corporate Development, 
 General Counsel and Corporate Secretary 
  
 With a copy to: 
  
 Simpson
Thacher & Bartlett 
 425 Lexington Avenue 
 New York, NY 10017 
 Telephone: (212) 455-7113 
 Facsimile: (212) 455-2502 
 Attn: Gary
Horowitz, Esq. 
  
 All such notices and other communications shall be deemed
received on the date of receipt by the recipient thereof if received prior to 5 p.m. in the place of receipt and such day is a Business Day in the place of receipt. Otherwise, any such notice or other communication shall be deemed not to have been
received until the next succeeding Business Day in the place of receipt. 
  
 Section 10.2. Amendment: Waiver. Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by the parties hereto,
or in the case of a waiver, by the party against whom the waiver is to be effective. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise
thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 
  
 Section 10.3. Assignment. Except as otherwise provided in Section 10.5, no party to this Agreement may assign any of its rights or obligations
under this Agreement without the prior written consent of the other party hereto, except that Purchaser may transfer or assign, in whole or from time to time in part, to one or more of its Affiliates, the right to purchase all or a portion of the
Purchased Assets, but no such transfer or assignment will relieve Buyer of its obligations hereunder. 
  
 Section 10.4. Entire Agreement. This Agreement (including all Schedules and Exhibits hereto) and the other Transaction Agreements constitute the
entire agreement between the parties hereto with respect to the subject matter hereof and thereof and supersedes all prior agreements and understandings, oral or written, with respect to such matters, other than any written agreement of the parties
that expressly provides that it is not superseded by the Transaction Agreements. 
  
 Section 10.5. Fulfillment of Obligations. Any obligation of any party to any other party under this Agreement, which obligation is performed, satisfied or fulfilled by an Affiliate of such party, shall be
deemed to have been performed, satisfied or fulfilled by such party. 
  

 39 

 Section 10.6. Parties in Interest. This Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer upon any Person other than Purchaser, Sellers, or their successors or permitted assigns, any rights
or remedies under or by reason of this Agreement. 
  
 Section
10.7. Public Disclosure. On or prior to the Closing, the parties agree to consult with each other before issuing any press release or making any public statement with respect to this Agreement or the transactions contemplated hereby and,
except for any press releases and public statements the making of which may be required by applicable Law or any listing agreement with any national securities exchange, will not issue any such press release or make any such public statement prior
to such consultation. 
  
 Section 10.8. Return of
Information. If for any reason whatsoever the transactions contemplated by the Transaction Agreements are not consummated, Purchaser shall promptly return to Pfizer all books and records furnished by any Seller or any of their respective
Affiliates, agents, employees, or representatives (including all copies, summaries and abstracts, if any, thereof) in accordance with the terms of the Confidentiality Agreement. 
  
 Section 10.9. Expenses. All sales Taxes, documentary and stamp Taxes, transfer Taxes, use Taxes, gross receipts Taxes
and all other charges for filing and recording documents in connection with the transfer of the Purchased Assets will be paid by the Purchaser. Except as otherwise expressly provided in this Agreement, whether the transactions contemplated by this
Agreement are ever consummated, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be borne by the party incurring such expenses. 
  
 Section 10.10. Schedules. The disclosure of any matter in any one
Schedule shall be deemed to be a disclosure for all purposes of this Agreement to the extent that the relevance of such matters to other Sections or other applicable Schedules is reasonably apparent to a reader on its face, but shall expressly not
be deemed to constitute an admission by Pfizer, PPLLC, or Purchaser, or to otherwise imply, that any such matter is material for the purposes of this Agreement. 
  

Section 10.11. Governing Law; Jurisdiction. (a) This Agreement shall be governed by and construed in accordance with the laws of the State of
New York without regard to the conflicts of law rules of such state. 
  
 (b) With respect to any suit, action or proceeding relating to this Agreement (each, a “Proceeding”), each party hereto irrevocably (i) agrees and consents to be subject to the jurisdiction of the United States District
Court for the Southern District of New York or any New York State court sitting in New York City and (ii) waives any objection which it may have at any time to the laying of venue of any Proceeding brought in any such court, waives any claim that
such Proceeding has been brought in an inconvenient forum and further waives the right to object, with respect to such Proceeding, that such court does not have any jurisdiction over such party. 
  

 40 

 Section 10.12. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, and all of which shall constitute one and the same agreement. 
  
 Section 10.13. Headings. The heading references herein and the table of contents hereto are for convenience purposes only, do not constitute a part
of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 
  
 Section 10.14. Severability. Each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable Law, but if any provision of this Agreement is held to be
prohibited by or invalid under applicable Law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement. 
  
 Remainder of Page Intentionally Left Blank 
  

 41 

 IN WITNESS WHEREOF, the parties have executed or caused this Agreement to be executed as of the date
first written above. 
  

					
	 PFIZER INC.

		
	By:	 	 /s/ John W. Mitchell

	 	 	 Name:
	 	 John W. Mitchell

	 	 	 Title:
	 	 Senior Vice President; President,
 Pfizer Global
Manufacturing

  

					
	 PFIZER PHARMACEUTICALS LLC

		
	By:	 	 /s/ John W. Mitchell

	 	 	 Name:
	 	 John W. Mitchell

	 	 	 Title:
	 	Manager

  

					
	 GALEN HOLDINGS PUBLIC LIMITED
 COMPANY

		
	By:	 	 /s/ Roger Boissonneault

	 	 	 Name:
	 	 Roger Boissonneault

	 	 	 Title:
	 	Chief Executive Officer

  

					
	WARNER CHILCOTT COMPANY, INC.
		
	By:	 	 /s/ Roger Boissonneault

	 	 	 Name:
	 	 Roger Boissonneault

	 	 	 Title:
	 	Chief Executive Officer

  

 42 

 Exhibit A 
  

List of instruments and documents to be provided by the Sellers 
  

	(a)	executed copy of the Transitional Services Agreement; 

  

	(b)	executed copy of the Transitional Supply Agreement; 

  

	(c)	a receipt for the payment of the Purchase Price at Closing; 

  

	(d)	a good standing certificate for each of the Sellers; 

  

	(e)	the certificates referred to in Section 4.2(a) hereof; 

  

	(f)	lease assignments (where appropriate, in recordable or registrable form), bills of sale or certificates of title, and all other appropriate instruments and documents of transfer, in
each case dated the Closing Date, transferring to Purchaser all of each Seller’s right, title and interest in and to the Owned Real Property and other Purchased Assets owned by it; 

  

	(g)	any consents to assignment of contracts and agreements obtained prior to Closing, the Required Consents and Permits that are material to the ownership and operation of the Facility;

  

	(h)	executed affidavit of non-foreign status as described in Section 1445(b)(2) of the Code; 

  

	(i)	estoppel certificates in form and substance reasonably acceptable to Purchaser from the lessor under the Warehouse Lease Agreement and the Parking Lease Agreement; and

  

	(j)	the updated Employee schedules required in Section 5.18. 

  

 43 

 Exhibit B  
  

List of instruments and documents to be provided by Purchaser 
  

	(a)	Executed assumption agreements and all other instruments appropriate to evidence Purchaser’s assumption of the Assumed Liabilities; 

  

	(b)	executed copy of the Transitional Services Agreement; 

  

	(c)	executed copy of the Transitional Supply Agreement; 

  

	(d)	a good standing certificate for Purchaser; and 

  

	(e)	the certificate referred to in Section 4.3(a) hereof. 

  

 Exhibit C  
  

Transitional Services Agreement 
  

 Exhibit D  
  

Transitional Supply Agreement 
  

 Exhibit E  
  

Description of Land 
  

 DISCLOSURE SCHEDULES 
  
 This document contains the schedules (the “Schedules”) to the Purchase and Agreement, dated as of May 3, 2004, among Pfizer Inc.,
Pfizer Pharmaceuticals Limited Liability Company, Galen Holdings Public Limited Company and Warner Chilcott Company, Inc. (the “Agreement”). The disclosure of any matter on any Schedule shall expressly not be deemed to constitute an
admission by any party to the Agreement, or to otherwise imply, that any such matter is material or would have a Material Adverse Effect for the purposes of the Agreement. 
  
 The heading and title references in the Schedules are for convenience purpose only, do not constitute a part of the Schedules and shall not
be deemed to limit or affect anything contained herein. Capitalized terms used, but not otherwise defined, in the Schedules shall have the meanings set forth in the Agreement. 
  

 List of Schedules 
  

			
	 1.1(a)
	  	 Approved Employees

	 1.1(b)
	  	 Financial Statements

	 1.1(c)
	  	 Knowledge of Pfizer

	 1.1(d)
	  	 Scheduled Environmental Commitments

	 2.1(b)
	  	 Equipment

	 2.1(c)
	  	 Assumed Contracts

	 2.3
	  	 Retained Equipment

	 2.7
	  	 Allocation of the Purchase Price

	 5.4(a)
	  	 Required Consents

	 5.5
	  	 Permits

	 5.6
	  	 Governmental Authorization (Sellers)

	 5.8
	  	 Conduct of Business

	 5.9
	  	 Litigation

	 5.10
	  	 Compliance with Laws

	 5.11
	  	 Environmental Matters

	 5.11(e)
	  	 Environmental Reports

	 5.12
	  	 Material Contracts

	 5.13(a)
	  	 Owned Real Property

	 5.13(b)
	  	 Leased Real Property

	 5.13(c)
	  	 Exceptions to Title

	 5.13(f)
	  	 Owned Real Property – Exceptions to Compliance with Law

	 5.18(a)(i)
	  	 Employees over $100,000

	 5.18(a)(ii)
	  	 Employees

	 5.18(a)(iii)
	  	 Wage Rates of Non-Salaried Employees

	 5.18(b)
	  	 Inactive Employees

	 5.18(c)
	  	 Employment Litigation

	 6.4
	  	 Governmental Authorization (Purchaser)

	 7.5(a)(i)
	  	 Employee Benefits

	 7.5(a)(ii)
	  	 Employee Severance Program

	 7.5(a)(iii)
	  	 Purchaser Benefit Plans

	 7.6
	  	 Pfizer Approved Employees

  

 SCHEDULE 1.1(a) 
  
 Approved Employees 
  
 Jose Negroni 
 Vivian Molinari 
 Ixie Gonzalez 
 Arleen Sandoz 
 Luis Gandara 
 Edgar Ortiz 
 Anibal Velez 
 Sandra Borres 
  

 SCHEDULE 1.1(b) 
  
 Financial Statements 
  

See attached. 
  

 SCHEDULE 1.1(c) 
  
 Knowledge of Pfizer 
  

			
	 Name

	  	 Title

	 Carlos Del Rio
	  	 Vice President/Team Leader, Puerto Rico Region

	 Jose Negroni
	  	 Site Leader, Fajardo

	 Charlie Shafran
	  	 Vice President, Strategic Planning, Pfizer Global Manufacturing

	 Jerry Abate
	  	 Senior Director, Strategic Planning, Pfizer Global Manufacturing

	 Esteban Bengoa
	  	 Legal Director, Puerto Rico

	 Anibal Velez
	  	 Manager/Team Leader, Environmental Health and Safety (Fajardo)

	 Joseph A. (Buzz) Murphy
	  	 Director/Team Leader, Human Resources (Puerto Rico)

	 Lawrence Miller
	  	 Senior Corporate Counsel, Business Transactions

	 Merrill Fliederbaum
	  	 Senior Corporate Counsel, Environmental, Health and Safety

	 William Gierke
	  	 Corporate Environmental, Health and Safety, Remediation

	 Steven F. Kemp
	  	 Director, Team Leader, Pfizer Global Manufacturing

	 Ixie Gonzalez
	  	 Director, Finance (Fajardo)

	 Dorien Santos
	  	 Director, Finance (Puerto Rico)

  

 SCHEDULE 1.1(d) 
  
 Scheduled Environmental Commitments 
  
 The chlorinated solvents found in groundwater at the Facility as identified in: 
  

	 	•	 	the Phase II Environmental Assessment Summary Report prepared by Alpha Engineering Group and dated February 16, 2004; and 

  

	 	•	 	the Supplemental Phase 2 Sampling Summary report of Alpha Engineering Group dated March 24, 2004. 

  

 SCHEDULE 2.1(b) 
  
 Equipment 
  
 See attached, but excluding the Retained Equipment (see Schedule 2.3) 
  

 SCHEDULE 2.1(c) 
  
 Assumed Contracts 
  
 Lease Agreement dated as of May 9,1994, as amended, between Industreal Puerto Real, Inc. and Pfizer Pharmaceuticals LLC (as the successor-in-interest to Warner-Lambert
Inc.) 
  
 Lease Agreement between The Puerto Rico Industrial Development Company
and Pfizer Pharmaceuticals LLC (as the successor-in-interest to Pfizer Pharmaceuticals, Inc.) dated as of March 13, 2003, as amended, in respect to the lease of warehouse 
  
 Autoridad de Energia Electrica and Warner-Lambert, Inc., dated as of May 27, 1999 
  
 Cadillac Uniform & Linen Supply, Inc. and Pfizer Pharmaceuticals, Inc., Lease of Personal
Property and Maintenance Agreement, dated March    , 2003 
  
 Caribe Landscaping Contractors, Inc. and Pfizer Pharmaceuticals, Inc., Professional Services Agreement, effective March 1, 2002 
  
 Antilles Cleaning Service, Inc. and Pfizer Pharmaceuticals, Inc., effective April 2, 2001 
  
 Iron Mountain PR, Inc. and Pfizer Pharmaceuticals, Inc., dated as of May 22, 2002 
  
 Professional Services Agreement between Carlos Robles Mora and Pfizer Pharmaceuticals LLC
effective January 1, 2004 
  
 Honeywell, Inc. and PPLLC, Purchase Order for
Engineering Calibration Services for April 2004-June 2004 
  

 SCHEDULE 2.3 
  
 Retained Equipment 
  
 Capital Equipment* 
  
 TAIT Banders (5) 
 Checkweigher 
 H & K 1500 
 Benadryl Packaging Line 
 Roller compactor (Gerteis) 
 Gral & Inverter 
 75 Cft PK Blender and peripheral eq. 
 Fitzmill 
 Fowler Capper 
  
 Project in Progress 
  
 Zyrtec Chewable (Korsch and other mfg. & lab eq.) 
 Zed Packaging Line

 IMA Encapsulator (equipment on site but leased) 
  
 Planned Projects 
  
 Bander Replacement 
 HR VISION SYSTEM – CP11 BENADRYL 
 Second IMA Encapsulator 
  

	*	Spare parts for any of the capitalized equipment are also included as retained equipment under this schedule. 

  

 SCHEDULE 2.7 
  
 Allocation of the Purchase Price 
  

				
	 Purchased Assets

	  	Purchase Price
($000’s)

	 Real estate, buildings, furniture and equipment
	  	$	4,000,000
	 Total Purchase Price
	  	$	4,000,000

  

 SCHEDULE 5.4(a) 
  
 Required Consents 
  

	1.	Consent to assign is required from Industreal Puerto Real, Inc. in respect to the lease of the parking lot dated as of May 9,1994, as amended 

  

	2.	Consent to assign is required from the Puerto Rico Industrial Development Company in respect to the lease of warehouse dated as of March 13, 2003, as amended

  

	3.	Consent to assign is required from Dr. Carlos Robles Mora in respect of the Professional Services Agreement effective January 1, 2004. 

  

 SCHEDULE 5.5 
  
 Permits 
  

			
	 Name of Permit

	  	 Issuing Authority

	 Hazardous Solid Waste Generation Permit
	  	U.S. Environmental Protection Agency
	 Wastewater Treatment Facility Operating Permit
	  	Puerto Rico Environmental Quality Board
	 Industrial Discharge Permit (Wastewater)
	  	Puerto Rico Aqueduct and Sewer Authority
	 NPDES Storm Water Permit
	  	U.S. Environmental Protection Agency
	 Air Operation Permit
	  	Puerto Rico Environmental Quality Board
	 Main Building Use Permit
	  	 Administración de Reglamentos y
 Permisos

	 Cafeteria Use Permit
	  	 Administración de Reglamentos y
 Permisos

	 Drug Dealer License
	  	Puerto Rico Health Department
	 Drug Factory License
	  	Puerto Rico Health Department
	 Facility Sanitary License
	  	Puerto Rico Health Department
	 Cafeteria Sanitary License
	  	Puerto Rico Health Department
	 FCC Conventional Radio License
	  	Federal Communications Commission
	 Used Oil Generator Registration
	  	Puerto Rico Environmental Quality Board
	 Biomedical Waste Generator ID
	  	Puerto Rico Environmental Quality Board
	 Warehouse Sanitary License
	  	Puerto Rico Health Department
	 Medicine Cabinet License
	  	Puerto Rico Health Department
	 Registration of Drug Establishment
	  	U.S. Food and Drug Administration
	 Reactive Storage Explosives Permit
	  	Policy of Puerto Rico Explosives Division
	 Fire Endorsement
	  	Fire Department
	 Municipal Patent
	  	Municipality of Fajardo
	 PRIDCO Warehouse Use Permit (Bldg. 6)
	  	Administración de Reglamentos y
	 	  	Permisos
	 Dilantin Expansion Use Permit
	  	Administración de Reglamentos y
	 	  	Permisos
	 Industreal Puerto Real, Inc. Parking Lot
	  	Administración de Reglamentos y
	 Use Permit
	  	Permisos

  

 SCHEDULE 5.6 
  
 Governmental Authorizations (Sellers) 
  

	1.	See consents listed on Schedule 5.4. 

  

 SCHEDULE 5.8 
  
 Conduct of Business 
  

	 	•	 	Since July 1, 2003, there have been changes made to certain Plans as part of the harmonization of benefit plans within Pfizer 

  

 SCHEDULE 5.9 
  
 Litigation 
  
 See Attached. 
  

 SCHEDULE 5.10 
  
 Compliance with Laws 
  

	1.	See consents described in Schedule 5.4 and environmental matters described in Schedule 5.11. 

  

	2.	Failure to be in compliance in all respects with current Good Manufacturing Practices with respect to the manufacture of Dilantin at the Facility as described in 21 C.F.R. parts 210
and 211, as identified in the Consent Decree of Permanent Injunction entered against Warner-Lambert Company in United States v. Warner-Lambert Company, No. 93-3525(D. N.J. filed August 16,1993) as a result of the inability to validate the current
process due to the inclusion of use tests to ensure acceptable dissolution results of the final product. 

  

 SCHEDULE 5.11 
  
 Environmental Matters 
  

With respect to Sections 5.11(a) and 5.11(d): 
  

	1.	Levels of Total Petroleum Hydrocarbons as described in the following reports: 

  

	 	•	 	The Divestiture Environmental Site Assessment Report of Caribe Environmental Services dated December 2003. 

  

	 	•	 	The Phase II Environmental Assessment Summary Report prepared by Alpha Engineering Group and dated February 16, 2004. 

  

	2.	Levels of Volatile Organic Compounds as described in the Phase II Environmental Assessment Summary Report prepared by Alpha Engineering Group and dated February 16, 2004, and the
Supplemental Phase 2 Sampling Summary report of Alpha Engineering Group dated March 24, 2004. 

  

 SCHEDULE 5.11(e) 
  
 Environmental Reports 
  

	1.	Facility Noise Survey, August 1998. 

  

	2.	Noise Abate Issue Memorandum dated July 20, 1999 

  

	3.	Facility Noise Survey, August 1999 

  

	4.	Noise Attenuation Project letter dated August 25, 1999 

  

	5.	Noise Surveys Letter to PREQB dated September 22, 1999 

  

	6.	Facility Noise Survey, December 1999 

  

	7.	IAC Facility Noise Survey, June 6, 2001 (revised on June 19, 2001) 

  

	8.	Facility Noise Survey, April 24, 2002 

  

	9.	Lead-base Paint Survey, prepared by Fernando L. Rodriguez, PE and Associates (field activities performed March 17, 2000) 

  

	10.	Storage Tank Inspection Reports, May 8, 2001 and April 27, 2001 

  

	11.	Study to Determine Sources of Storm Water that Reach the Wastewater Treatment Plant, July 1997 

  

	12.	Underground Piping Integrity Inspection Closed Circuit Television Survey, October 1999 

  

	13.	Limited Phase II ESA Report, September 2000. Prepared by Tetra Tech Caribe, Inc. 

  

	14.	Final Report, Asbestos Abatement. September 2001. Prepared by Caribe Hydroblasting Environmental Division. 

  

	15.	Energy Audit, December 11, 2001 

  

	16.	Asbestos Final Report, Facility Compliance File, July 2001 

  

	17.	Air Sampling Results of Asbestos Removal that took place on February 9, 1999. 

  

	18.	Asbestos Survey and Inspection Report, August 9, 1999 

  

	19.	Asbestos Survey and Inspection Report, November 6, 1997 

  

	20.	Reporte Remocion, Material Conteniendo Asbesto, September 1998 

  

	21.	Final Report, Asbestos Abatement, September 2001 

  

	22.	Reporte Final Remocion Material Contiendo Asbesto, July 1999 

  

	23.	Reporte Remocion, Material Conteniendo Asbesto, “Floor Tile” Laboratories Segundo Piso, June 1998 

  

	24.	Abatement & Disposal Plan for Asbestos Containing Material from Boiler Room Area in 2411 room, TSI Hot Water in 232 and 242 room, TSI Chilled Water in 232 room and MISC Floor
Vinyl Tile in 242 room 

  

	25.	Abatement & Disposal Plan for Asbestos Containing Material from TSI Hot Water in 242 room at Building #2 and MISC Floor Vinyl Tile in 242 room 

  

	26.	Abatement & Disposal Plan for Asbestos Containing Material from Power Plant Office MISC Floor Vinyl Tile in 2421 room at Building #2 

  

	27.	NPDES Multi Sector Group Permit Comprehensive Site Compliance Evaluation Report, November 2003 

  

	28.	Multi Sector NPDES General Permit Comprehensive Site Compliance Evaluation Report, October 2002 

  

	29.	Multi Sector NPDES General Permit Comprehensive Site Compliance Evaluation Report, November 2001 

  

	30.	Multi Sector NPDES General Permit Comprehensive Site Compliance Evaluation Report, January 2000 

  

	31.	Evaluacion Ambiental, August 2001 

  

	32.	Evaluacion Ambiental, December 2001 

  

	33.	Evaluacion Ambiental, January 2003 

  

	34.	2003 Stormwater Discharge Records 

  

	35.	2003 Hazardous Waste Storage Room Inspections 

  

	36.	Inspection Letters from Regulatory Authorities dated May 23, 2003 (from ONDEO de Puerto Rico); May 11, 2001, January 30, 2002 and June 2, 2003 (from PREQB);

  

	37.	Draft Report. Phase II ESA Report. March 2002. Prepaid by Alpha Engineering Group, PSC. 

  

	38.	Loss Prevention Survey Report. April 19, 2002. Prepared by GE Global Asset Protection Services. 

  

	39.	GE Global Asset, consultative site visit, June 2003 

  

	40.	SimplexGrinnel’s Fire and Security inspection Report, July 2003 

  

	41.	RCRA Contingency Plan. November 2003. 

  

	42.	Spill Prevention Control and Countermeasure Plan. September 2003. 

  

	43.	NPDES Multisector Group Permit. Comprehensive Site Compliance Evaluation Report. November 2003. 

  

	44.	The Divestiture Environmental Site Assessment Report of Caribe Environmental Services dated December 2003. 

  

	45.	Phase II Environmental Assessment Summary Report prepared by Alpha Engineering Group and dated February 16, 2004. 

  

	46.	The Supplemental Phase 2 Sampling Summary report of Alpha Engineering Group dated March 24, 2004 

  

	47.	Industrial Hygiene Air Sampling Results Database for Oral Contraceptive Areas. February 2004. 

  

	48.	Risk Characterization & Exposure Inventory 2003. 

  

	49.	Risk Control Plan 2003 – Oral Contraceptive Areas. 

  

	50.	Hazard Assessment of Chemical Substances. August 2003. 

  

	51.	Industrial Hygiene Air Sampling Results Database for non Oral Contraceptive Areas (provided March 2004; data from 1991/1992, 1999). 

  

	52.	Industrial Hygiene Air Sampling Results for non manufacturing areas and March 8, 2004, report of Clayton Group Services Laboratory. 

  

	53.	March 18, 2004 Summary of Local Limits Study for Wastewater Treatment Plant at Pfizer Fajardo 

  

	54.	Memorandum from Lial Tischler, P.E. to Anibal Velez concerning Evaluation of Fajardo Local Limits Study Database, dated July 5, 2003 

  

	55.	Report prepared by Tischler/Kocurek entitled Pfizer Pharmaceuticals, Inc. – Fajardo Plant Local Limits Study for Selected Metals, dated August 18, 2003 (with tables updated on
June 25, 2003) 

  

	56.	September 17, 2003, letter to Puerto Rico Aqueduct and Sewer Authority concerning Pfizer Pharmaceuticals, Inc. Request for Revision of WWTP Pretreatment Permit

  

	57.	Pfizer Corporate Environment, Health and Safety Compliance Audit, December 2001. Report issued January 31, 2002. 

  

	58.	Pfizer Corporate Environment, Health and Safety Compliance Verification Audit, November 21-22, 2002 

  

	59.	Pfizer Corporate Environment, Health and Safety Compliance Audit, December 2003. Report issued February 19, 2004 and related Corrective Action Plan. 

  

 SCHEDULE 5.12 
  
 Material Contracts 
  
 Lease Agreement dated as of May 9, 1994, as amended, between Industreal Puerto Real, Inc. and Pfizer Pharmaceuticals LLC (as the successor-in-interest to Warner-Lambert
Inc.). The lease agreement has been amended as follows: First Amendment to Lease Contract, dated April 7, 1999; Second Amendment dated May 23, 2002; Third Amendment dated February 28, 2003; letter from Tenant to Landlord dated June 29, 1998,
exercising an option to renew the lease; letter from Tenant to Landlord dated August 8, 2000, exercising an option to renew the lease; and letter agreement between Tenant and Landlord dated February 11, 2004. 
  
 Lease Agreement between the Puerto Rico Industrial Development Company and Pfizer
Pharmaceuticals LLC (as the successor-in-interest to Pfizer Pharmaceuticals, Inc.) dated as of March 13, 2003, as amended. 
  
 Autoridad de Energia Electrica and Warner-Lambert, Inc., Agreement for Supply of Electricity, dated as of May 27, 1999 
  
 Cadillac Uniform & Linen Supply, Inc. and Pfizer Pharmaceuticals, Inc., Lease of Personal
Property and Maintenance Agreement, dated March 2003 
  
 Caribe Landscaping
Contractors, Inc. and Pfizer Pharmaceuticals, Inc., Professional Services Agreement, effective March 1, 2002; expires February 28, 2005; assignable by PPI 
  
 Antilles Cleaning Service, Inc. and Pfizer Pharmaceuticals, Inc., Cleaning Services Agreement, effective April 2, 2001 
  
 Iron Mountain PR, Inc. and Pfizer Pharmaceuticals, Inc., Supply Agreement for Safety Shoes,
dated as of May 22, 2002 
  
 Honeywell, Inc. and PPLLC, Purchase Order for
Engineering Calibration Services for April 2004-June 2004 
  

 SCHEDULE 5.13(a) 
  
 Owned Real Property 
  
 Parcel of land identified as Lot A of Pueblo Viejo Industrial Subdivision at Puerto Real Ward, Fajardo. It is in bound by the NORTH; with land owned by Sucesion Pedro
Robinson; EAST: with land owned by Puerto Rico industrial Development Company (Lot Six hyphen B (6-B)); SOUTH; with street of the industrial Subdivison; WEST: with land owned by the Puerto Rico Industrial Development Company. It has a surface area
of five thousand five hundred fifty seven point nineteen square meters (5,557.19 sq. mts.), equivalent to one point four thousand one hundred thirty nine cuerdas (1.4139 cdas.). 
  
 This parcel is recorded in the Registry of the Property, Fajardo Section, at page 244 overleaf of volume 79, Fajardo, property number
10,658. 
  
 Parcel of land located at Puerto Real Norte Ward in the Municipality
of Fajardo, Puerto Rico. It bounds: by the North, with an existing street (“Street A”) that separates it from land owned by the Puerto Rico Urban Renewal and Housing Corporation; by the South, with state road no. one hundred ninety five
(195); by the East, with land owned by the Puerto Rico Industrial Development Company; and by the West, with Santa Isidra Housing Development and land owned by Sucn. Pedro Robinson. It has a surface area of nineteen thousand six hundred fifty one
square meters and twenty two hundredths of another (19,651.22), equivalent to five cuerdas (5 cdas). 
  
 This parcel is recorded in the Registry of the Property, Fajardo Section, at page 131 of volume 155 of Fajardo, property number 5,166. 
  

 SCHEDULE 5.13(b)  
  
 Leased Real Property 
  

Lease Agreements 
  
 See Lease Agreements described in Schedule 5.12. 
  
 Sellers have not provided Purchaser with a copy of the Second Amendment to the Parking Lot lease agreement with Industreal Puerto Real, Inc. 
  

							
	 Use

	  	 Address

	  	 Parties

	  	 Rent

	Parking Lot	  	N/A	  	Industreal Puerto Real, Inc. and Pfizer Pharmaceuticals LLC (as the successor-in-interest to Warner-Lambert Inc.)	  	$3,400/month
				
	Warehouse	  	Warehouse 6 at the Facility	  	Puerto Rico Industrial Development Company and Pfizer Pharmaceuticals LLC (as the successor-in-interest to Pfizer Pharmaceuticals, Inc.)	  	 $5,975.87/month (yrs. 1-5)
  
 $6,971.85/month (yrs. 6-10)

  

 SCHEDULE 5.13(c) 
  
 Assets: Exceptions to Title 
  

	1.	Consent to assign is required from Industreal Puerto Real, Inc. in respect to the lease of the parking lot dated as of May 9, 1994, as amended 

  

	2.	Consent to assign is required from the Puerto Rico Industrial Development Company in respect to the lease of warehouse dated as of March 13, 2003, as amended

  

 SCHEDULE 5.13(f) 
  
 Owned Real Property: Exceptions to Compliance with Law 
  
 See matters described or referred to on Schedule 5.10. 
  

 SCHEDULE 5.18(a)(i) 
  
 Employees over $100,000 
  
 See attached. 
  

 SCHEDULE 5.18(a)(ii) 
  
 Employees 
  
 See attached. 
  

 SCHEDULE 5.18(a)(iii) 
  
 Wage Rates for Non-Salaried Employees 
  
 See attached. 
  

 SCHEDULE 5.18(b)  
  
 Inactive Employees 
  
 Number of business employees currently not actively at work, including short and long term disability, hospital leave and other approved leave, but not including
employees on vacation or out sick: 
  
 See attached. 
  

 SCHEDULE 5.18(c) 
  
 Employment Litigation 
  

See matters listed on Schedule 5.9. 
  

 SCHEDULE 6.4 
  
 Governmental Authorization (Purchaser) 
  
 None. 
  

 SCHEDULE 7.5(a)(i) 
  
 Employee Benefits 
  

	1.	Pfizer Medical Plan (including prescription drug coverage) 

  

	2.	Pfizer Dental Plan 

  

	3.	Pfizer Life and AD&D Insurance Plans 

  

	4.	Pfizer Long-Term Disability Plan 

  

	5.	Pfizer Adoption Assistance Plan 

  

	6.	Pfizer Business Travel Accident Plan 

  

	7.	Pfizer Colleague Assistance Plan 

  

	8.	Pfizer Holiday Gift Program 

  

	9.	Pfizer Holiday Schedule 

  

	10.	Pfizer Leaves of Absence Policy 

  

	 	•	 	Civic Leave 

  

	 	•	 	Educational Leave 

  

	 	•	 	General Leave 

  

	 	•	 	Military Leave 

  

	 	•	 	Parental Leave 

  

	 	•	 	Funeral Leave 

  

	 	•	 	Jury Duty Leave 

  

	11.	Pfizer Education Benefits 

  

	 	•	 	ConSern Loans for Education Program  

  

	 	•	 	Educational Assistance Program 

  

	 	•	 	Scholarship Awards Program 

  

	12.	Pfizer Savings Plan for Employees Resident in Puerto Rico 

  

	13.	Pfizer Service Award Program 

  

	14.	Pfizer Short-Term Disability Policy 

  

	15.	Pfizer Vacation Policy 

  

	16.	Pfizer Workers’ Compensation Policy 

  

	17.	Pfizer Foundation Matching Gifts Program 

  

	18.	Pfizer Foundation Volunteer Program 

  

	19.	Pfizer Retirement Annuity Plan 

  

	20.	Warner-Lambert Retirement Plan 

  

	21.	Long-term incentive plan 

  

 SCHEDULE 7.5(a)(ii) 
  
 Employee Severance Program 
  
 PFIZER EMPLOYEE SEPARATION PLAN 
 PUERTO RICO 
  
 INTRODUCTION 
  
 The Company maintains the Employee Separation Plan (“the Plan”) to provide severance pay benefits under certain circumstances to Pfizer employees who work in
Puerto Rico who meet the eligibility requirements and other terms and conditions of the Plan. This Summary Plan Description (SPD) describes the terms and conditions of the Plan and is designed to answer questions that you may have about the Plan and
its administration. This Plan replaces the Plan dated _______________, and all prior severance plans. 
  
 ELIGIBILITY 
  
 You are
eligible to participate in the Plan if all the following apply: 
  

	 	•	 	You are a regular full time or part-time (who is scheduled to work more than 20 hours per week) employee of the Company’s Puerto Rico affiliates; 

  

	 	•	 	You meet the coverage requirements (as defined below) at the time of your termination and the conditions of your employment are not otherwise covered by a written agreement;

  

	 	•	 	The employee’s terms and conditions are not covered by a collective bargaining agreement (unless the agreement specifically provides for coverage under the Plan);

  

	 	•	 	You are not one of the Company’s elected Corporate Officers or an employee whose compensation is subject to individual approval by the Employee Compensation and Management
Development Committee. 

  
 For purposes of this Plan, the term
“employee” does not include any individual who is characterized by the Company as a temporary employee, leased employee, contract worker, or independent contractor. 
  
 COVERAGE 
  
 Severance benefits are payable is the following circumstances: 
  

	1.	Performance-Related Terminations 

  

 An employee’s termination with the Company occurs in an instance when the job performance
requirements are not met. Performance-related termination should generally occur only after the opportunity for improvement has been provided to the employee and performance standards are still not met. No severance benefits are payable when the
employee has made little or no effort to improve performance deficiencies. 
  

	2.	Curtailment or Cessation of operations/Reorganization/ Position Elimination 

  
 The employee’s termination with the Company is a direct result of curtailment or cessation of operations,
reorganization, or position elimination(s), whether voluntary or involuntary. 
  
 Severance Benefits are not payable in the following circumstances: 
  

	1.	If an employee is offered a comparable position with the Company in any of its Puerto Rico affiliates and the employee declines the offer. 

  

	2.	Upon divestiture of a subsidiary, division or other identifiable segment of the Company, an employee is offered employment with the acquiring company. 

  

	3.	If an employee is terminated “for cause”. Termination of employment “for cause” includes, but is not limited to, termination for breach of Company policy,
inadequate work performance due to intentional or deliberate misconduct or intentional or deliberate failure to act, destruction of Company property, insubordination, commission of unlawful acts against or reflecting on the Company, or similar
occurrences. The existence of cause for termination of employment shall be determined by the Plan Administrator, in its sole discretion. 

  

	4.	If an employee voluntarily resigns or retires from employment. However, in those instances whether the Company seeks, at its sole discretion, to obtain a Release Agreement from such
employee, benefits may be paid in accordance with the Severance Pay Summary for Voluntary Resignation. 

  

	5.	If an employee dies or becomes disabled while in active service. 

  
 BENEFITS 
  
 Individuals impacted by these situations shall receive benefits in accordance with the Severance Pay Summary. 
  

 The Company, in its sole discretion, shall determine whether severance benefits will be paid in the form of a lump sum,
salary continuation, or a combination of the two. Salary continuation is only a method of delivering severance pay, not continuation of an individual’s employment with the Company. 
  
 Eligible employees begin receiving severance pay upon their Termination Date. The Termination Date is defined as the last date the employee
provides services to the Company (generally at the end of the notice period). 
  
 The maximum severance pay benefits permitted under the Plan is 104 weeks’ pay unless a lower maximum is stated in the Plan. Benefits under this Plan will be reduced by the amount of any termination benefits and employee is eligible to
receive under any federal, state or local statutes or regulations. Severance pay benefits will be reduced by any outstanding debt owed by the employee to the Company, where permitted by law, including but not limited to loans granted by the Company,
advanced vacation pay, or salary or expense advances. 
  
 (OJO ASUME) 

 
 Any benefits payable under the Plan will cease if there is a violation of noncompete
and/or nondisclosure agreements as determined by the Plan administrator in its sole discretion. 
  

 Pay 
  

	 	•	 	“Pay” for severance pay purposes is defined as current salary wages (annualized) plus any bonus paid in the previous twelve months. This amount is divided by 52 to
determine weeks’ pay. 

  

	 	•	 	“Pay” for notice pay purposes is defined as current base pay. 

  

	 	•	 	In all cases, “Pay” excludes overtime, shift differentials, premium pay, holiday bonuses, allowances, contest awards, stock option income, stock grants of any type, as
well as other similar payments. 

  
 OTHER
BENEFITS 
  

	 	•	 	Salary continuation is only a method of delivering severance pay, not a continuation of an individual’s employment with the Company. Therefore, active-service benefits will
cease on the employee’s Termination Date. 

  

	 	•	 	Eligibility for post-retirement medical, dental and life insurance coverage is determined as of the employee’s Termination Date. 

  

	 	•	 	The controlling conditions of each stock option grant are contained in the terms of stock option grant letters, the Points of Interest and the Pfizer Stock and Incentive Plan.

  

	 	•	 	Severance pay in any form will not be included as earnings under either the Pfizer Retirement Annuity Plan or the Pfizer Savings and Investment Plan. Further, while receiving
salary continuation, age and service credit will not accrue for purposes of the Pfizer Retirement Annuity Plan. 

  
 RELEASE AGREEMENT 
  
 Severance pay under this Plan will not be paid unless the employee executes (and does not revoke) a written release agreement in a form prescribed by the Company, of all
claims against the Company, its affiliates, and related parties arising out of the employee’s employment or termination. 
  

 NOTICE PERIOD 
  
 In all termination situations where an employee is asked to sign a Release Agreement, the employee must be given the necessary amount of
time to consider and sign the Release Agreement. For an individual termination action, the employee will receive at least 21 days of paid notice; for a group termination action, employees will receive at least 45 days of paid notice. If cases of
plant closure of mass layoffs as defined by Worker Adjustment and Retraining Notification Act (“WARN”), at least 60 days of paid notice will be provided. 
  
 The Company, at its discretion, may decline the active services of an employee at any time during the notice period; in such instance, the
individual will continue to be paid for the remainder of the notice period in addition to his/her severance pay. If an employee ceases to provide satisfactory services on his/her own initiative during the notice period, all notice period payments
will end and the individual will receive only severance benefits in accordance with the terms of this Plan. In such an instance, satisfactory services shall be determined by the Plan Administrator at its sole discretion. 
  
 ADMINISTRATION 
  
 Local Company management supervises the operation of the Plan. Inquiries should be directed
to the employee’s Supervisor or Employee Resources representative. The Plan is administered by . . . 
  
 The
                                        
             is authorized to approve exceptions to this Plan. The Company reserves the right to decide whether circumstances justify the payment of severance under this Plan in any
particular case. Any decision is subject to the appeal procedure described below. 
  
 The Plan and its records are maintained on a calendar year basis. 
  
 DENIAL OF CLAIM AND APPEAL PROCEDURES 
  
 If an application for Plan benefits is denied in whole or in part, the employee will receive written notification of such denial within 60 days from the Company of Plan
Administrator including the reasons for the denial, with reference to the specific provisions on which the denial was based. Within 60 days after receiving the notification 

  

 
of denial, the employee may submit a written request for reconsideration of the claim to
                                     through the
employee’s Employee Resources representative. 
  
 Any such request should be
accompanied by any documents or records that may support the appeal. The employee may review pertinent documents and submit issues and comments in writing. The Company or Plan Administrator will notify the employee in writing of its decision within
60 days after receipt of the appeal, with the reasons for the decision on the appeal and specific references to the Plan provisions on which that decision is based. The Plan Administrator shall make, in his/her sole discretion, all determinations
arising in the administration, construction or interpretation of the Plan including the right to construe disputed or doubtful Plan terms and provisions, and any such determination shall be conclusive and binding on all persons, except as otherwise
provided by law. 
  
 PLAN CONTINUANCE

  
 The Company reserves the right to modify or terminate the Plan with or
without notice at any time in the future. Any such action would be taken only after careful consideration, however, plan modification or termination is not contingent upon the financial condition of the Company. 
  
 PLAN DOCUMENTS 
  
 This booklet describes only the highlights of the Pfizer Employee Separation Plan. It does
not attempt to cover all details. These are contained in the Plan document. That document, as well as the annual report of Plan operations and the Plan description as filed with the appropriate government authorities, is available for review by Plan
participants and beneficiaries during normal working hours through the Employee Resources representative at the employee’s location. Upon written request to the
                                        
    , copies of any of these documents will be furnished to any Plan participant within 30 days. 
  
 YOUR RIGHTS UNDER ERISA 
  
 Participants in the Pfizer Employee Separation Plan are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA).

  

 ERISA provides that all Plan participants shall be entitled to: 
  

	 	•	 	Examine, without charge, at the Plan Administrator’s office or at the office of the Employee Resources representative, all Plan documents and copies of all documents filed with
the U.S. Department of Labor and the Internal Revenue Service, such as detailed Plan descriptions and annual reports. 

  

	 	•	 	Obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator. The Plan Administrator may make a reasonable charge for the copies.

  

	 	•	 	Receive a summary of the Plan’s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report.

  
 In addition to creating rights for Plan participants, ERISA
imposes duties upon those who are responsible for the operation of the Plan. Those who operate the Plan, who are called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of Plan participants. 
  
 No one, including the employer or anyone else, may fire an employee or otherwise discriminate
against an employee in any way to prevent an employee from obtaining a Plan benefit or exercising an employee’s rights under ERISA. 
  
 If a claim for a Plan benefit is denied in whole or in part, the employee must receive a written explanation of the reason for the denial. The employee has the right to
have the Plan Administrator review and reconsider the claim. 
  
 Under ERISA,
there are steps an employee can take to enforce the above rights. For instance, if an employee requests materials from the Plan Administrator and does not receive them within 30 days, an employee may file suit in a federal court. In such a case, the
court may require the Plan Administrator to provide the materials, and pay the employee up to $100 a day until the employee receives the materials, unless the materials were not sent for reasons beyond the control of the Plan Administrator. If an
employee has a claim for benefits which is denied or 

  

 
ignored, in whole or in part, the employee may file suit in state or federal court. 
  
 If it should happen that Plan fiduciaries misuse the Plan’s money, or if an employee is discriminated against for asserting his/her
rights, an employee may seek assistance from the U.S. Department of Labor, or may file suit in federal court. The court will decide who should pay court costs and legal fees. If an employee is successful, the court may order the person sued to pay
these costs and fees. If an employee loses, the court may order an employee to pay these costs and fees if, for example, it finds the claim frivolous. 
  
 If you need additional information or have any questions about the Plan, you should contact the Plan Administrator. If you have any questions about this statement or
about your rights under ERISA, you should contact the nearest Area Office of the U.S. Labor - Management Services Administration, Department of Labor. 
  

 SEVERANCE PAY SUMMARY 
  

																		
	 	  	Notice
Period Prior
to
Termination

	 	 	 Severance Pay
 After Termination Date

	 	  	 	NO Signed Release
Agreement

	  	Signed Release Agreement

	  	 
	 Type of
 Termination

	  	Number of
Days on
Payroll

	 	 	 Fixed Number
Weeks’ of
 Pay

	  	 +
	  	Weeks’
Pay Per
Year of
Service

	  	Fixed Number
Weeks’ Pay

	  	+	  	Week’s Pay
Per Year of
Service

	  	Maximum
Number of
Week’s Pay

	 Performance-Related
	  	14	 	 	0	  	 	  	0	  	10	  	 	  	2	  	104
	 Curtailment
	  	28-52	*	 	0	  	 	  	1	  	13	  	 	  	2	  	104
	 Voluntary-Resignation1
	  	28-52	*	 	0	  	 	  	0	  	0	  	 	  	2	  	52

  

	*	Notice Period: Depending on required period to consider the Release Agreement as shown below: 

  

					
	 	  	Group
Termination

	  	Individual
Termination

	 Prior to Signing2
	  	45 days	  	21 days
	 After Signing
	  	7 days	  	7 days
	 	  	
	  	

	 Total Number of Calendar Days
	  	52 days	  	28 days

  

	1.	Only where the Company seeks a Release Agreement. 

  

	2.	Period of time an employee must be given to consider revoking a signed Release Agreement. 

  

 OTHER IMPORTANT INFORMATION 
  
 Name of the Plan:    Pfizer Puerto Rico
Employee Separation Plan 
  
 Name and Address of
the Plan Sponsor: 
  
 Identification Number of
Plan Sponsor: 
  
 Type of
Plan:    Welfare Benefit Plan 
  
 Type of Administration:    Self-Administered 
  
 Plan
Administrator’s Name & Business Telephone Number: 
  
 Agent for Service
of Legal Process: 
  
 Address of Agent for Service of Legal Process: 

 

 SCHEDULE 7.5(a)(iii) 
  
 Purchaser Benefit Plans 
  
 Purchaser will provide the same terms as those provided in the Seller Plans listed below: 
  

	1.	Pfizer Medical Plan (including prescription drug coverage), but excluding reimbursement of Pfizer Drugs at 100% 

  

	2.	Pfizer Dental Plan 

  

	3.	Pfizer Life and AD&D Insurance Plans 

  

	4.	Pfizer Long-Term Disability Plan 

  

	5.	Pfizer Business Travel Accident Plan 

  

	6.	Pfizer Holiday Gift Program – cash gift issued at Christmas Party 

  

	7.	Pfizer Colleague Assistance Plan via MCA the local EAP provider 

  

	8.	Pfizer Holiday Schedule 

  

	9.	Pfizer Leaves of Absence Policy 

  

	 	•	 	Military Leave 

  

	 	•	 	Parental Leave 

  

	 	•	 	Funeral Leave 

  

	 	•	 	Jury Duty Leave 

  

	10.	Pfizer Education Benefits 

  

	 	•	 	Educational Assistance Program 

  

	11.	Pfizer Savings Plan for Employees Resident in Puerto Rico 

  

	12.	Pfizer Service Award Program 

  

	13.	Pfizer Short-Term Disability Policy 

  

	14.	Pfizer Vacation Policy 

  

	15.	Pfizer’s Workers’ Compensation Policy 

  
 Different Terms 
  

	16.	In Lieu of Retirement & Pension Plans – Contributions to Savings Plan each year pursuant to the attached summary 

  

	17.	Retire Health – For the 12 employees who will become eligible for this benefit within two years, we will provide retiree health when vested with the proper age and
service requirements. 

  

	*	Company matching will be provided in cash instead of Pfizer stock. 

  

 SCHEDULE 7.6 
  
 Approved Pfizer Employees 
  
 Leadership Team Members 
  
 Jose Negroni 
 Vivian Molinari 
 Ixie Gonzalez 
 Arleen Sandoz 
 Luis Gandara 
 Edgar Ortiz 
 Anibal Velez 
 Sandra Borres 
  
 Waiting for Decision on Posted Positions 
  
 Jesús Gandía - Training Instructional Designer 
 Luis Torres - Master Scheduler 
 Limaris Rodríguez - Cost Analyst

 Arleen Just - HR Supervisor 
 Ismael Lopez - Safety Specialist

  

 EXHIBIT E 
  

Description of Land 
  
 Parcel of land identified as Lot A of Pueblo Viejo Industrial Subdivision at Puerto Real Ward, Fajardo. It is in bound by the NORTH; with land owned by Sucesion Pedro
Robinson; EAST: with land owned by Puerto Rico industrial Development Company (Lot Six hyphen B (6-B)); SOUTH; with street of the industrial Subdivion; WEST: with land owned by the Puerto Rico Industrial Development Company. It has a surface area of
five thousand five hundred fifty seven point nineteen square meters (5,557.19 sq. mts.), equivalent to one point four thousand one hundred thirty nine cuerdas (1.4139 cdas.). 
  
 Parcel of land located at Puerto Real Norte Ward in the Municipality of Fajardo, Puerto Rico. It bounds: by the North, with an existing
street that separates it from land owned by the Puerto Rico Urban Renewal and Housing Corporation; by the South, with state road no. one hundred ninety five (195); by the East, with land owned by the Puerto Rico Industrial Development Company; and
by the West, with Santa Isidra Housing Development and land owned by Sucn. Pedro Robinson. It has a surface area of nineteen thousand six hundred fifty one square meters and twenty two hundredths of another (19,651.22), equivalent to five cuerdas (5
cdas)Option and License Agreement dated as of March 24, 2004

  
 Exhibit 10.4

  
 EXECUTION COPY 
  
 OPTION AND LICENSE AGREEMENT 
  
 This OPTION AND LICENSE AGREEMENT (this “Agreement”), dated
as of March 24, 2004 (the “Effective Date”), is made by and between Barr Laboratories, Inc., a corporation organized and existing under the laws of Delaware (“Barr”), and Galen (Chemicals) Limited, a company
organized and existing under the laws of the Republic of Ireland (“Galen”). Barr and Galen are each sometimes referred to individually as a “Party” and together as the “Parties.” 
  
 RECITALS 
  
 WHEREAS, Barr and Galen are pharmaceutical companies engaged in the marketing and sale of pharmaceutical products, including
women’s health products; and 
  
 WHEREAS, Barr owns or
controls certain product registrations (or applications therefor) and know-how related to the Licensed Products (as defined below); and 
  
 WHEREAS, Galen desires to obtain from Barr, and Barr desires to grant to Galen, an option to acquire, and upon exercise of such option a license to,
certain exclusive and nonexclusive rights under the Approved ANDAs (as defined below) to commercialize the Licensed Products in the Territory (as defined below), upon the terms and subject to the conditions of this Agreement; and 
  
 WHEREAS, in the event that Galen exercises the option, Barr desires to supply
to Galen, and Galen desires to obtain exclusively from Barr, all of Galen’s requirements of Licensed Product for the Territory, upon the terms and subject to the conditions of the Supply Agreement (defined below); 
  
 NOW, THEREFORE, in consideration of the foregoing premises and the
representations, covenants and agreements contained herein, the Parties, intending to be legally bound, hereby agree as follows: 
  
 ARTICLE 1 
 DEFINITIONS

  
 When used in this Agreement, whether in the singular or
plural, each of the following capitalized terms shall have the meanings set forth in this Article 1: 
  
 1.1 “21-Day ANDA” means the Abbreviated New Drug Application number 76-198, which references the product approved under New Drug
Application 18-127, filed with the FDA by Barr in order to obtain approval to commence sale of the 21-Day Licensed Product (and any supplement or amendment filed pursuant to FDA requirements). 
  
 1.2 “28-Day ANDA” means the Abbreviated New Drug Application
number 76-238, which references the product approved under New Drug Application 17-716, filed with the FDA by Barr in order to obtain approval to commence sale of the 28-Day Licensed Product (and any supplement or amendment filed pursuant to FDA
requirements). 
  

 1.3 “21-Day Licensed Product” means 0.4 mg. norethindrone/.035 mg. ethinyl estradiol
21-day oral tablet, described in, and the sale of which is or will be permitted in the Territory by, the 21-Day ANDA (to the extent the 21-Day ANDA is or becomes an Approved ANDA). 
  
 1.4 “28-Day Licensed Product” means 0.4 mg. norethindrone/.035 mg. ethinyl estradiol 28-day oral tablet,
described in, and the sale of which is or will be permitted in the Territory by, the 28-Day ANDA (to the extent the 28-Day ANDA is or becomes an Approved ANDA). 
  

1.5 “Affiliates” means, with respect to a Party, any Person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with, such Party at any time during the period for which the determination of affiliation is being made. For the purposes of this definition, “control” (including the terms
“controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management, policies or affairs of a Person, whether through
ownership of voting securities or general partnership or managing member interests, by contract or otherwise, including the ownership, directly or indirectly, of securities having the power to elect a majority of the board of directors or similar
body governing the affairs of such Person. Without limiting the generality of the foregoing, a Person shall be deemed to control any other Person in which it owns, directly or indirectly, a majority of the voting interests. 
  
 1.6 “ANDAs” means collectively or either, as the case may
be, the 21-Day ANDA and the 28-Day ANDA. 
  
 1.7
“Applicable Law” means all applicable laws, statutes, ordinances, rules, regulations (including cGMPs (defined below)), writs, judgments, decrees, injunctions (whether preliminary or final), orders and other requirements (including
Abbreviated New Drug Applications, permits, certificates and other product authorizations and approvals) of any Governmental Authority (including the FTC and FDA or any self-regulatory organization or stock exchange). 
  
 1.8 “Approved ANDA” means any of the ANDAs that has been
approved by the FDA. 
  
 1.9 “Business Day” means
any day other than a Saturday, Sunday or day on which banks in New York, New York are authorized or obligated by Applicable Law to close. Any reference in this Agreement to “day” whether or not capitalized shall refer to a calendar day,
not a Business Day. 
  
 1.10 “cGMPs” means
current Good Manufacturing Practices (as set forth in C.F.R. Parts 210 and 211) 
  
 1.11 “CMC Section” means the Chemistry, Manufacturing and Controls Section of a regulatory submission document included in an ANDA as set forth in 21 C.F.R. §314.94(a)(9). 
  

 - 2 - 

 1.12 “Damages” means any and all costs, losses, claims, liabilities, fines, penalties,
awards, verdicts, settlements, judgments, interests and expenses, including reasonable attorney’s fees and costs of suit. 
  
 1.13 “FDA” means the United States Food and Drug Administration, or any successor agency thereof. 
  
 1.14 “FTC” means the United States Federal Trade Commission,
or any successor agency thereof. 
  
 1.15 “Force
Majeure” means any occurrence beyond the reasonable control of a Party that prevents or substantially interferes with the performance by the Party of any of its obligations hereunder, if such occurs by reason of any act of God, flood, fire,
explosion, earthquake, strike, lockout, labor dispute, casualty, accident, war, revolution, civil disorder, terrorist attack, embargo, any restriction of any Governmental Authority (to the extent such Governmental Authority has ruling authority over
such Party), or other similar event beyond the reasonable control of such Party, if and only if the Party affected shall have used commercially reasonable efforts to avoid such occurrence. 
  
 1.16 “Governmental Authority” means any governmental,
regulatory or administrative authority, court, tribunal, arbitrator, agency, commission, official or other instrumentality of any supranational authority or any federal, state, provincial, municipal, county, city or other political subdivisions
thereof. 
  
 1.17 “HSR Act” means the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, Section 7A of the Clayton Act, 15 USC §18A, as amended. 
  
 1.18 “Know-How” means any technical information (whether patented, patentable or otherwise), including all product specifications,
processes, product designs, plans, trade secrets, ideas, concepts, manufacturing, engineering and other manuals and drawings, standard operating procedures, flow diagrams, chemical, pharmacological, toxicological, pharmaceutical, physical and
analytical, safety, efficacy, stability, quality assurance, quality control and clinical data, data, research records, compositions, annual product reviews, process validation reports, analytical method validation reports, specifications for
stability trending and process controls, testing and reference standards for impurities in and degradation of products, technical data packages, chemical and physical characterizations, dissolution test methods and results, formulations for
administration, clinical trial reports, regulatory communications and labeling and all other confidential or proprietary technical and business information, relating to the Licensed Products, whether written or oral and in whatever format kept.

  
 1.19 “Licensed Products” means the 21-Day
Licensed Product and the 28-Day Licensed Product. 
  
 1.20
“NDC” means the “National Drug Code” identifying number for a Licensed Product maintained by the FDA, which is an 11-digit number comprised of the labeler code (which is assigned by the FDA and identifies the
establishment/manufacturer), product (which identifies the specific product or formulation), and package size code. 
  

 - 3 - 

 1.21 “Person” or “person” means any individual, firm, corporation,
partnership, limited liability company, trust, joint venture, Governmental Authority, or other entity or organization. 
  
 1.22 “Promotional Materials” means Galen’s promotional and advertising materials and programs relating to Finished Product sold
under the Ovcon® trademark. 
  
 1.23 “Supply Agreement” means the Finished Product Supply
Agreement attached hereto as Exhibit A, dated as of the date hereof and effective in accordance with the terms set forth therein. 
  
 1.24 “Term” means the Option Term and the License Term, as the same may be earlier terminated in accordance with this Agreement.

  
 1.25 “Territory” means the United States and
its states, territories and possessions, including the Commonwealth of Puerto Rico and the District of Columbia. 
  
 1.26 “Third Party” means any Person other than Barr, Galen and their respective Affiliates. 
  
 ARTICLE 2 
 OPTION 
  
 2.1 Grant of Option. Barr hereby grants to Galen, and Galen accepts from Barr, an exclusive, non-transferable (except as set forth in Section 3.2 and/or Section 9.6), irrevocable option (the “Option”) to acquire the
licenses set forth in Section 3.1 (collectively, the “Licenses”), upon exercise in the manner described in Section 2.5. Barr shall not execute any agreements (including an agreement in principle or an option, contingent or future
agreement) with an Affiliate or Third Party to exercise, or may not itself exercise, any rights in conflict with Galen’s rights in this Article 2. Barr may not sell, transfer or license the Approved ANDAs during the First License Term without
Galen’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed; provided, that Barr may sell, transfer or license the Approved ANDAs during the First License Term without such consent (a) to any Affiliate
of Barr, provided, no such assignment shall relieve Barr of its obligations hereunder, or (b) in connection with a merger, reorganization, change of control, or sale of all or substantially all of Barr’s business to which this Agreement
relates; provided, further, that, notwithstanding anything in this Section 2.1 to the contrary, any permitted sale, transfer or license of the Approved ANDAs hereunder shall be expressly subject to Galen’s rights hereunder and any such
transferee shall expressly agree to assume Barr’s obligations hereunder. 
  
 2.2 Payment for Option. On the Effective Date, Galen shall pay to Barr the non-refundable sum of One Million U.S. Dollars ($1,000,000) in immediately available funds by wire transfer to the credit of such bank
account as designated by Barr in Schedule 2.2. 
  
 2.3
Deliveries on the Effective Date. 
  
 (a)
On the Effective Date, Galen will deliver or cause to be delivered to Barr: 
  
 (i) a duly executed Supply Agreement; 
  

 - 4 - 

 (ii) a guarantee, duly executed by Galen Holdings PLC, in the form attached hereto as
Exhibit B; and 
  
 (iii) any other
agreements or documents reasonably necessary to consummate the transactions contemplated hereby, in form and substance reasonably satisfactory to Barr. 
  
 (b) On the Effective Date, Barr will deliver or cause to be delivered to Galen: 
  
 (i) a duly executed Supply Agreement; 
  
 (ii) a guarantee, duly executed by Barr Pharmaceuticals,
Inc., in the form attached hereto as Exhibit C; and 
  
 (iii) any other agreements or documents reasonably necessary to consummate the transactions contemplated hereby, in form and substance reasonably satisfactory to Galen. 
  
 2.4 Option Term. The Option may be exercised at any time during the
period (such period, the “Option Term”) commencing on the date that Galen receives notification from Barr that Barr has received the first notice from the FDA that an ANDA has become an Approved ANDA, and ending at 11:59 P.M.,
Eastern Standard Time on the forty-fifth (45th) day thereafter. Barr shall notify Galen in writing of its receipt of
such notifications and as to the commencement of the Option Term as provided herein within three (3) Business Days following such receipt. 
  
 2.5 Exercise of Option. To exercise the Option, Galen shall deliver to Barr during the Option Term (a) a written notice, given in accordance with
Section 9.5, indicating Galen’s election to exercise the Option and acquire the Licenses subject to the terms and conditions of this Agreement (the “Exercise Notice”) and (b) the Exercise Payment, in accordance with Section 2.6
(the date on which Barr has received all of the foregoing, the “Exercise Date”). For avoidance of doubt, notwithstanding that only one of the ANDAs becomes an Approved ANDA during the Option Term, the exercise of the Option shall be
as to both ANDAs and the Licenses will be effective as to the second ANDA (and the Licensed Product related thereto) if and when such second ANDA shall become an Approved ANDA, immediately upon Barr’s receipt of written notice of such approval
and without further action by either Party. Barr shall promptly notify Galen in writing as to Barr’s receipt of such second approval. 
  
 2.6 Events Upon Exercise. 
  
 (a) On or before the Exercise Date, Galen shall pay to Barr the non-refundable sum of Nineteen Million U.S. Dollars ($19,000,000) in
immediately available funds by wire transfer to the credit of such bank account as designated by Barr in Schedule 2.2 (the “Exercise Payment”) in respect of the Licenses granted herein. 
  
 (b) On the Exercise Date, (i) the Licenses shall be deemed
immediately granted as of such date and fully-paid and (ii) the Supply Agreement shall become effective. 
  

 - 5 - 

 ARTICLE 3 
 LICENSES 
  
 3.1 License
Grant. 
  
 (a) Subject to the exercise of the
Option and the other terms and conditions herein, Barr hereby grants to Galen an exclusive (including with respect to Barr and its Affiliates), fully-paid license under each Approved ANDA solely for the purposes of (i) marketing, having marketed,
using, having used, commercializing, have commercialized, distributing, having distributed, offering for sale, selling and having sold the Licensed Products in the Territory and (ii) importing or exporting, or having imported or exported the
Licensed Products solely for the purposes of clause (i), for a period commencing on the Exercise Date and ending at 11:59 p.m., Eastern Time, on the fifth (5th) anniversary thereof (the “First License Term”). 
  
 (b) At Galen’s election, the First License Term may be
renewed on a non-exclusive basis, for a period commencing on the day immediately following the expiration of the First License Term and ending on the fifth (5th) anniversary of the date such period began (the “Second License Term”
and together with the First License Term, the “License Term”), by written notice given to Barr at least six (6) months prior to the expiration of the First License Term. 
  
 (c) For purposes of clarity, the foregoing license does not grant to Galen or its sublicensees any right (i)
to market, have marketed, commercialize, have commercialized, offer for sale, sell or have sold a Licensed Product outside of the Territory or (ii) to make or have made a Licensed Product anywhere in the world, except through Barr pursuant to, or as
contemplated by Section 11.3, Schedule 11.3 and Section 12.3 of, the Supply Agreement. 
  
 3.2 Sublicenses and Subcontracting. Notwithstanding anything herein to the contrary, including Section 9.6, Galen may grant sublicenses in order to exercise its rights and carry out its obligations under this
Agreement: (a) to its Affiliates, without the prior written consent of Barr; and (b) to third Persons, with Barr’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Galen acknowledges that the
grant of a sublicense or use of a subcontractor shall not relieve Galen from, and Galen shall remain responsible for, all of its obligations under this Agreement. Galen shall be responsible for the compliance of its Affiliates, sublicensees and
subcontractors (other than Barr) with this Agreement. 
  
 3.3
Exclusivity. During the First License Term, except as provided in the Supply Agreement, neither Barr nor its Affiliates shall, either itself or with or through a Third Party, (a) market, commercialize, distribute or sell a Licensed Product in
the Territory or (b) import or export a Licensed Product for the purposes of clause (a). 
  
 3.4 No Implied Licenses. Only the licenses expressly granted herein shall be of legal force and effect. No license rights shall be created hereunder by implication, estoppel or otherwise. 
  

 - 6 - 

 3.5 Reservation of Rights. 
  
 (a) All rights not expressly granted to Galen hereunder are expressly reserved to Barr. Without limiting the
foregoing, Barr may, at its discretion, (i) research, have researched, develop, have developed, make or have made, or, subject to Section 3.3, use or have used Licensed Products anywhere in the world at any time, (ii) (A) market, have marketed,
commercialize, have commercialized, distribute, have distributed, offer for sale, sell and have sold Licensed Products outside the Territory at any time or (B) import or export, and have imported or exported Licensed products for the purposes of
clause (A), and (iii) market, have marketed, commercialize, have commercialized, distribute, have distributed, offer for sale, sell and have sold, import or export, and have imported or exported Licensed Products within or outside the Territory
after the expiration of the First License Term. 
  
 (b) Barr shall use its commercially reasonable efforts to ensure that Licensed Products (or their ex-Territorial equivalents) sold by it or on its behalf outside the Territory are not transferred to or resold in the Territory, except by
Galen. In the event Barr learns of any such activities, it shall cease sales of such products to the offending third party until adequate controls are instituted to arrest such offending sales. Galen shall use its commercially reasonable efforts to
ensure that Licensed Products sold by it or on its behalf within the Territory are not transferred to or resold outside the Territory, except by Barr. In the event Galen learns of any such activities, it shall cease sales of such Licensed Products
to the offending third party until adequate controls are instituted to arrest such offending sales. 
  
 (c) As between the Parties, Barr shall retain ownership of all rights, title and interest in and to the ANDAs, subject to the licenses
granted hereunder. Galen shall not contest such ownership or the validity of the ANDAs with respect to the Licensed Products, including in any Proceeding. 
  
 3.6 Inventions. As between the Parties, each Party shall be the sole and exclusive owner of any Know-How that it (or an Affiliate or Third Party on
its behalf) invents, develops, discovers or creates after the Effective Date (“Inventions”). Nothing herein shall obligate either Party to invent, develop, discover or create any Inventions or to file, prosecute, defend or maintain
any applications, registrations or patents relating to any of its Inventions. No Inventions of a Party will be made available to the other Party or deemed licensed to the other Party hereunder. 
  
 ARTICLE 4 
 REGULATORY MATTERS 
  
 4.1 Responsibility for the ANDAs. 
  
 (a) Barr shall maintain the ANDAs in compliance with all material requirements under Applicable Law. Where Barr may lawfully do so, Barr will provide Galen, upon written request after reasonable notice from Galen,
with access to copies of all filings submitted by Barr to the FDA in respect of either of the ANDAs. Upon the reasonable request of Barr during the Term, Galen shall as promptly as practicable provide to Barr all such information in its possession
or control relating to any Licensed Product as may be reasonably required for the 

  

 - 7 - 

 
foregoing regulatory activities, including sales distribution information relating to the Licensed Products, and otherwise shall provide reasonable
assistance to Barr in (i) complying with all Applicable Law and other regulatory obligations in the Territory, including safety updates, amendments, annual reports, pharmacovigilance filings, investigator notifications, manufacturing facility
inspections and certifications and product approvals and (ii) preparing the CMC Section of the ANDAs adequate to meet FDA standards with respect to CMC requirements. Neither Party shall at any time knowingly do, cause to be done, or omit or permit
any act inconsistent with any such ANDAs. 
  
 (b)
(i) Except as otherwise expressly provided in this Section 4.1, Barr shall be solely responsible for paying all costs and expenses in connection with managing and maintaining the ANDAs; (ii) Barr shall keep Galen informed on a timely basis as to any
developments in respect of the ANDAs that would affect Galen, including all notices received from any Governmental Authority in connection with the ANDAs that would affect Galen; and (iii) Barr shall have the final decision-making authority in every
matter in connection with the ANDAs and on whether and how to communicate with Governmental Authorities in connection therewith; provided that (x) Barr will not, except where required by Applicable Law or Governmental Authority, as required
or permitted under this Agreement, or as consented to in writing by Galen from time to time, supplement, amend or otherwise alter either of the ANDAs so as to materially and adversely affect the rights granted to Galen hereunder, (y) Barr shall
provide Galen with copies of all material correspondence to and from the FDA or other Governmental Authorities in the Territory, and (z) Barr will consult with Galen before taking any action in connection with either of the ANDAs that would
adversely affect Galen (including any Recall of Licensed Products as contemplated by Section 4.4) and consider in good faith Galen’s position; provided that Barr shall have final decision-making authority as contemplated in clause (iii)
above. 
  
 (c) In the event Barr materially
breaches any of the provisions of this Section 4.1, notwithstanding anything herein to the contrary, in addition to any other rights and remedies to which Galen may be entitled, Galen may elect not to terminate this Agreement pursuant to Section
8.2(b), and instead to require Barr to appoint Galen as its exclusive agent with respect to all approvals and filings in the Territory in connection with the Licensed Products, and, accordingly, to promptly take all steps necessary to effect the
foregoing appointment, including writing a letter to the appropriate Governmental Authorities in the Territory. In such event, as Barr’s agent, Galen shall, except as prohibited by Applicable Law, be the lead regulatory party in the Territory,
and the rights and obligations of each Party under Sections 4.1, 4.4, 4.5, 4.6 and 4.7 shall, as appropriate, become the rights and obligations of the other Party; provided, that the rights provided by 4.1(b)(iii) shall remain vested in Barr,
as the ANDA holder. 
  
 (d) Except as required by
Applicable Law, as may be authorized by Barr from time to time or pursuant to clause (c) above, and subject to clause b(iii) above, during the Term, Galen shall not communicate directly with the FDA or any other Governmental Authority in the
Territory relating to the ANDAs without the prior written consent of Barr, such consent not to be unreasonably withheld, conditioned or delayed. In furtherance thereof, Galen shall as promptly as practicable refer all FDA communications received by
Galen during the Term relating to any Licensed Product to Barr. 
  

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 (e) Barr shall not be liable to Galen for Losses incurred by Galen as a direct or
indirect result of Galen’s failure to provide information under this Section 4.1. 
  
 (f) Barr or its relevant Affiliate may, without the consent of Galen, use or cross-reference the Approved ANDAs in connection with (i)
manufacturing Licensed Products under the Supply Agreement or (ii) manufacturing anywhere in the world of any Licensed Product for the marketing, distribution or sale of such product outside the Territory. 
  
 4.2 Promotional Materials. Galen shall be solely responsible for
ensuring that all Promotional Materials comply with the applicable labeling and ANDAs for a given Licensed Product and with Applicable Law. Notwithstanding Section 4.1(d), Galen shall be solely responsible for submitting all Promotional Materials to
the FDA for review and for negotiating with the FDA for approvals of such Promotional Materials; provided that Barr has submitted to the FDA such authorization as may be required by Applicable Law for Galen to submit such Promotional
Materials (which Barr will use its commercially reasonable efforts to effect as promptly as reasonably practicable after the Exercise Date; and until such time as such authorizations have been effected, Barr shall use its commercially reasonable
efforts to submit all Promotional Materials as required hereunder on behalf of Galen). 
  
 4.3 Regulatory Matters Outside the Territory. In the event that a Governmental Authority outside of the Territory in a country where Barr is developing Licensed Products (or, for all purposes of this Section
4.3, their extra-Territorial equivalents) requests that Barr provide it with information within Galen’s possession and such information is not otherwise in Barr’s possession, upon Barr’s reasonable request, Galen will as promptly as
practicable make available to Barr such tangible written information in Galen’s possession and control that is requested by such Governmental Authority. Notwithstanding the foregoing, Galen may instead agree, in its sole discretion, to provide
such information directly to the applicable Governmental Authority, as the case may be, or to an independent Third Party of its choosing, and shall respond directly (or through its independent agent) to any questions or inquiries from such
Governmental Authority regarding the information. In addition, Galen shall have no duty to disclose any of its proprietary or confidential information to any Governmental Authority or any other party, unless the Governmental Authority in question
provides for the protection of such proprietary or confidential information from disclosure in a manner substantially similar to that provided by the FDA, and Barr shall provide such cooperation reasonably requested by Galen to assist Galen in
receiving such protection. Barr shall reimburse Galen for the out-of-pocket costs and expenses incurred by Galen in complying with any such requests. Galen shall endeavor in good faith to cooperate and comply with any requests from Barr or from any
Governmental Authority pursuant to this Section 4.3. 
  
 4.4
Recalls. 
  
 (a) In the event that either
Party obtains information that a Licensed Product or any portion thereof should be alleged or proven not to meet the specifications, labeling, or Approved ANDA for such Licensed Product or to be otherwise defective in the Territory, such Party shall
notify the other Party immediately and both Parties shall cooperate fully regarding the investigation and disposition of any such matter, including with respect to any Licensed Product recall, Licensed Product withdrawal or filed correction, as
appropriate (collectively, a “Recall”). 

  

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Barr and Galen shall each maintain such traceability records as are sufficient and as may be necessary to permit a Recall or field correction of any Licensed
Products. In the event (i) any applicable Governmental Authority should issue a request, directive or order that a Licensed Product be Recalled or (ii) either Party determines that any Licensed Product already in interstate commerce in the Territory
presents a risk of injury or gross deception or is otherwise defective and that a Recall of such Licensed Product is appropriate, each Party shall give telephonic notice (to be confirmed in writing) to the other within 24 hours of the occurrence of
such event. 
  
 (b) During (i) the First License
Term and (ii) the Second License Term for so long as Galen is the only Person commercializing Licensed Products, Galen shall consult with Barr, but Galen shall have sole responsibility, in its reasonable discretion (but subject to the superseding
rights of Barr as the ANDA holder to have the final say pursuant to Section 4.1), for determining all corrective action to be taken (including a Recall) and for carrying out the Recall, if any, which shall be conducted in its own name. Barr will
provide reasonable cooperation and assistance to Galen upon request in connection therewith. Barr shall be responsible for all costs and expenses of any such Recall (including any reasonable out-of-pocket costs incurred by Galen in connection with
such cooperation) where Barr supplied such product under the Supply Agreement, except to the extent such Recall is attributable to Galen’s (or its designees’, subcontractors’ or Affiliates’) breach of their respective obligations
or representations or warranties under this Agreement or the Supply Agreement. Where Galen has elected to assume the manufacturing of the Licensed Product under Section 11.3 of the Supply Agreement and the product subject to such Recall is
manufactured by Galen, Galen shall be responsible for all costs and expenses of any such Recall (including any reasonable out-of-pocket costs incurred by Barr in connection with any cooperation it provides hereunder). Commencing during the Second
License Term on the date, if any, that Galen is not the only Person commercializing Licensed Products, Barr shall have sole responsibility, in its reasonable discretion, for determining all corrective action to be taken (including a Recall) and for
carrying out the Recall, if any, which shall be conducted in its own name. Galen will provide reasonable cooperation and assistance to Barr upon request in connection therewith. Barr shall be responsible for all costs and expenses of any such Recall
(including any reasonable out-of-pocket costs incurred by Galen in connection with such cooperation), except to the extent such Recall is attributable to Galen’s (or its designees’, subcontractors’ or Affiliates’) breach of their
respective obligations or representations or warranties under this Agreement or the Supply Agreement. 
  
 4.5 Adverse Experience. For so long as there is unexpired Licensed Product manufactured under an Approved ANDA in Galen’s inventory, at its
wholesalers or their retailers, each Party shall promptly notify the other Party of any significant event(s) that affects the marketing of the Licensed Products, including adverse drug experiences and inquiries by Governmental Authorities. The
holder of the ANDA shall have the reporting responsibility for such events as provided under Applicable Law. Each of Barr and Galen shall cooperate with the other Party in connection therewith as reasonably requested by the other Party and as
follows: 
  
 (a) Serious Adverse Events (as
defined in Section 4.5(b) below) for the Licensed Products of which one Party becomes aware shall be submitted to the other Party within three (3) Business Days but no more than four (4) calendar days from the date the first-mentioned Party first
became aware of such Serious Adverse Event. Non-Serious Adverse Events (as defined in Section 4.5(b) below) for the Licensed Products that are reported to one Party shall be submitted 

  

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to the other Party no more than one (1) month from the date received by the first-mentioned Party; provided, however, that medical and
scientific judgment should be exercised in deciding whether expedited reporting is appropriate in other situations, such as important medical events that may not be immediately life-threatening or result in death or hospitalization but may
jeopardize the patient or may require intervention to prevent a Serious Adverse Event outcome. 
  
 (b) Until the reporting procedures referenced in Section 4.5(e) herein have been instituted by the Parties, a “Serious Adverse
Event” for the Licensed Products shall have the meaning set forth in 21 CFR § 314.80(a), as amended from time to time and a “Non-Serious Adverse Event” for the Licensed Products means an untoward medical occurrence at
any dose for any of the Licensed Products that is not a Serious Adverse Event. 
  
 (c) Galen shall report all such Non-Serious Adverse events involving the Licensed Products learned by it to: 
  
 Barr Laboratories, Inc. 
 400 Chestnut Ridge Road 
 Woodcliff Lake, NJ
07677 
 Attention: Associate Director – Regulatory Affairs 
 Facsimile No: 201-930-3330 
 Telephone No: 201-930-3300 
  
 Barr shall report all such Non-Serious Adverse events involving the Licensed Products learned
by it to: 
  
 Warner Chilcott, Inc. 
 100 Enterprise Drive 
 Rockaway, NJ 07866

 Attention: Vice President – Regulatory Affairs 
 Facsimile No.: 973-442-3280 
 Telephone No.: 973-442-3233 
  
 A Party shall use its commercially reasonable efforts to provide a CIOMS-I form or a form
that contains the data elements of a CIOMS-I form. 
  
 (d) Serious Adverse Events concerning the Licensed Products learned by Barr shall be reported by Barr to Galen at the time that Barr reports such events to FDA, and shall be sent to: 
  
 Warner Chilcott, Inc. 
 100 Enterprise Drive 
 Rockaway, NJ 07866

 Attention: Vice President – Regulatory Affairs 
 Facsimile No.: 973-442-3280 
 Telephone No.: 973-442-3233 
  

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 Serious Adverse Events concerning the Licensed Products learned by Galen shall be reported by Galen to Barr as set forth
in 4.5(a), and shall be sent to: 
  
 Barr Laboratories, Inc.

 400 Chestnut Ridge Road 
 Woodcliff Lake, NJ 07677 
 Attention: Associate Director – Regulatory Director 
 Facsimile No: 201-930-3330 
 Telephone No:
201-930-3300 
  
 A Party shall use its commercially reasonable efforts to provide
a CIOMS-I form or a form that contains the data elements of a CIOMS-I form. 
  
 (e) As soon as practicable, each Party shall use its commercially reasonable efforts to negotiate and agree to mutually acceptable procedures for reporting Serious Adverse Events and Non-Serious Adverse Events, as
applicable, to the other Party. The Parties shall pay their respective costs and expenses incurred in reporting to the other Party Serious Adverse Events and Non-Serious Adverse Events, as applicable. 
  
 4.6 Product Quality Complaints. For so long as Barr, its Affiliate or
permitted designee is the manufacturer of any Licensed Product, Barr will consult with Galen, but Barr shall have responsibility, at its sole cost and expense, for handling all Product Quality Complaints concerning such Licensed Products in the
Territory, except to the extent such Product Quality Complaint is attributable to Galen’s (or its designees’, subcontractors’ or Affiliates’) breach of their respective obligations or representations or warranties under this
Agreement or the Supply Agreement, in which case, Galen shall reimburse Barr for the reasonable cost and expense of handling such Product Quality Complaint. Galen will provide reasonable cooperation and assistance to Barr upon request in connection
therewith. Galen shall inform Barr’s Vice President Regulatory Affairs (or his or her designee) of any Product Quality Complaint received within three (3) Business Days but no more than four (4) calendar days from the date received by Galen.
With respect to any Licensed Product that is not manufactured by Barr or its Affiliate under the Supply Agreement, Galen shall have responsibility, at its sole cost and expense, for handling all Product Quality Complaints concerning such Licensed
Product. “Product Quality Complaint” means any complaint that questions the purity, identity, potency or quality of any Licensed Product, its packaging, or labeling, or any complaint that concerns any incident that causes the drug
product or its labeling to be mistaken for, or applied to, another article or any bacteriological contamination, or any significant chemical, physical, or other change or deterioration in the distributed drug product, or any failure of one or more
distributed batches of the drug product to meet the specifications therefor in the applicable ANDA for such Licensed Product. Such information shall be sent to Barr as set forth in Section 4.5 above, and, upon receipt, Barr will initiate a complaint
investigation. For Product Quality Complaints received by Barr relating to the Licensed Products, Barr will notify Galen within three (3) Business Days but no more than four (4) days from the receipt date by Barr and, if manufactured by or for Barr,
will initiate a complaint investigation. Barr shall conduct such investigation and report its findings to Galen’s Regulatory Affairs Department. 
  

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 4.7 Medical Inquiries. Galen shall have sole responsibility, at its cost and expense, for handling
all medical inquiries concerning the Licensed Products in the Territory. Barr shall refer all routine medical information requests in writing to Galen as set forth in Section 4.5. Urgent medical information requests shall be referred by Barr to
Galen by telephone. Notwithstanding anything herein to the contrary, including Article 6, but subject to Applicable Law, all information reported to a Party by the other Party under these Sections 4.5, 4.6 and 4.7 may be disclosed by such Party in
its reasonable discretion to any third Person who manufactured a pertinent component of the applicable Licensed Product for such Party; provided that such Party shall include the other Party in all such communications and disclosures with
such manufacturer. 
  
 4.8 NDC Number. Galen will utilize
an NDC number in the form of XXXX-YYYY- ZZ that contains Galen’s or its Affiliate’s own labeler code (i.e., the XXXX portion of the NDC) as assigned by FDA, for Galen’s or its Affiliate’s sales and distribution of Licensed
Product. Galen may change the product code (the YYYY portion of the NDC) or the package size code (the ZZ of the NDC) of its NDC number with the consent of Barr, which consent shall not be unreasonably withheld, subject in each case to applicable
provisions of the Supply Agreement. 
  
 ARTICLE 5

 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 5.1 Mutual Representations and Warranties. Each Party hereby represents and warrants to the other Party as of the
Effective Date that: 
  
 (a) such Party is a
corporation or entity duly organized, validly existing and, to the extent such concept is recognized in non-United States jurisdictions, in good standing under the laws of its jurisdiction of incorporation and has all requisite corporate power and
authority to enter into this Agreement and to carry out the provisions hereof; 
  
 (b) the execution, delivery of this Agreement by such Party and the performance of its obligations hereunder does not require any
shareholder action or approval, and the Person executing this Agreement on behalf of such Party is duly authorized to do so by all requisite corporate action; 
  

(c) except for (a) filings under the HSR Act, which have been made in connection with this Agreement prior to the date hereof, and (b)
FDA approval of the ANDAs, no consent or approval of any Governmental Authority is required in connection with the valid execution, delivery and performance of this Agreement by such Party, except where the failure to obtain any of the foregoing
would not have a material adverse impact on the ability of such Party to meet its obligations hereunder; 
  
 (d) assuming the due authorization, execution and delivery of this Agreement by the other Party, this Agreement is a valid obligation
binding upon such Party and enforceable in accordance with its terms except as enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally or
(ii) equitable principles of general applicability; 
  

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 (e) the execution, delivery and performance by such Party of this Agreement do not and
will not, and its compliance with the terms and provisions hereof does not and will not, conflict with, result in a breach of, constitute a default under or result in the termination, cancellation or acceleration (whether after the giving of notice
or the lapse of time or both) of any of the terms, rights, obligations or provisions of (i) any other contractual or other obligations of such Party, or to which such Party’s assets are subject, (ii) the provisions of its certificate of
incorporation, operating documents or bylaws or (iii) assuming compliance with the matters set forth in subsection (c) above, any order, writ, injunction or decree of any Governmental Authority entered against it or by which it or any of its
property is bound except where such breach or conflict would not materially impact the Party’s ability to meet its obligations hereunder; 
  
 (f) no broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the
transactions contemplated by this Agreement based upon arrangements made by or on behalf of such Party; and 
  
 (g) except as set forth in Schedule 5.1(g), no action, audit, litigation, investigation, suit or proceeding
(“Proceeding”) by or before any Governmental Authority relating to the Licensed Products or the transactions contemplated hereby is pending against or threatened in writing or, to the knowledge of such Party, threatened orally
against such Party, in each case which has had, or would have a material adverse impact on such Party’s ability to meet its obligations hereunder. 
  
 5.2 Representations of Barr. 
  
 (a) Schedule 5.2 sets forth a list of all Abbreviated New Drug Applications submitted to the FDA by Barr or its Affiliates as of
the Effective Date to market any product that is proposed to be an AB-rated equivalent (as defined in the 23rd
edition of the Approved Drug Product with Therapeutic Equivalence Evaluations which is published by the United States Department of Health and Human Services) to any product sold under the Ovcon® trademark in the Territory (the “ANDA Applications”). 
  
 (b) Except as set forth on Schedule 5.2, Barr is the
sole and exclusive owner of the ANDA Applications and has not granted any other Person any right of reference with respect thereto. 
  
 5.3 Mutual Covenants. 
  
 (a) Each Party covenants to the other that it shall comply in all material respects with all Applicable Law in its performance under this
Agreement. 
  
 (b) Prior to the Closing Date,
each Party has made all filings required under Applicable Law. Each of Galen and Barr shall, in connection with any investigation or inquiry by any Governmental Authority in connection with the transactions contemplated by this Agreement, (i)
furnish to the other such necessary information and reasonable assistance as the other may request in connection with the foregoing, (ii) keep each other apprised of any communications with all such Governmental Authorities and (iii) use its
commercially reasonable efforts to comply with and terminate any such investigation or inquiry. Each of 

  

 - 14 - 

 
Galen and Barr shall use its reasonable best efforts to obtain any clearance required under the HSR Act or such other Applicable Law for the consummation of
the transactions contemplated hereby; provided that (x) Barr shall be solely responsible for all fees payable to any Governmental Authority under the HSR Act, and (y) Galen shall not be required under this Section 5.3(b) to pay money or
assume any material obligation in order to obtain the approval or clearance, or expiration of the waiting period. 
  
 5.4 Disclaimer of Warranties. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR
IMPLIED, EITHER IN FACT OR BY OPERATION OF APPLICABLE LAW. 
  
 ARTICLE 6 
 CONFIDENTIALITY 
  
 6.1 Confidentiality. The Mutual Confidentiality Agreement between Barr Laboratories, Inc. and Galen Holdings PLC, dated as of April 25, 2002 (the
“Confidentiality Agreement”), shall remain in full force and effect, the terms of which are hereby incorporated by reference, as amended and/or clarified by this Agreement, including in particular by Article 3 on the terms contained
herein (as it affects paragraph 4 of the Confidentiality Agreement) and this Article 6. 
  
 6.2 Amendments and Clarifications. The Parties hereby acknowledge and agree that (a) Barr and Galen agree to be bound by the terms and conditions of the Confidentiality Agreement as if they were originally
parties thereto; (b) the term of the Confidentiality Agreement is amended such that it shall not terminate until the later of (i) five (5) years after the termination of the business relationship between the parties to the Confidentiality Agreement
on its original terms or (ii) ten (10) years following the Term; (c) the terms of this Agreement and the transactions contemplated hereunder, and any information exchanged hereunder shall be deemed “Confidential Information” for purposes
of the Confidentiality Agreement and any use or disclosure thereof shall be governed by such agreement; (d) Galen shall have the right to disclose the Confidential Information of Barr relating to the ANDAs to the extent reasonably necessary for
Galen to fully exploit the licenses granted and to fulfill its obligations hereunder, notwithstanding the last sentence of paragraph 1 of the Confidentiality Agreement; provided, that Galen has obtained appropriate undertakings of
confidentiality from the recipient of such Confidential Information and shall be liable for any breach by such recipient of such undertakings; and (e) the legal department of each Party shall be permitted to retain one copy of the other Party’s
Confidential Information solely for archival purposes, notwithstanding paragraph 5 of the Confidentiality Agreement. Each Party acknowledges that any and all other information provided to it by the other Party or its Representatives concerning such
other Party and its Affiliates shall remain subject to the terms and conditions of the Confidentiality Agreement after the Effective Date. 
  
 6.3 Unauthorized Use. If either Party becomes aware or has knowledge of any unauthorized use or disclosure of the other Party’s Confidential
Information, it shall promptly notify the disclosing Party of such unauthorized use or disclosure. 
  

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 6.4 Publicity. Except (a) as set forth in the press release agreed by the Parties pursuant to this
Section 6.4, (b) as consistent with the press release issued pursuant to this Section 6.4 and (c) as may be required to be made by the New York Stock Exchange, the NASDAQ National Market, the U.K. Listing Authority or other applicable stock exchange
or regulatory authority, Applicable Law or other legal process, neither Party shall make or allow the publication of any press release or public announcement with respect to this Agreement or any of the transactions contemplated hereby, without the
prior written approval of the other Party, which shall not unreasonably be withheld, conditioned or delayed. Attached as Schedule 6.4 is a joint press release announcing the execution of this Agreement that the Parties shall issue promptly
following the Effective Date. 
  
 ARTICLE 7 
 INDEMNIFICATION 
  
 7.1 Indemnification by Galen. Galen agrees to defend, indemnify and hold harmless Barr and its Affiliates and their respective officers, directors,
employees, agents and representatives (“Related Parties”) from and against any and all Damages incurred or suffered by such Persons to the extent caused by or arising out of or in connection with any breach of any representation or
warranty, covenant or agreement made by Galen in this Agreement, except to the extent caused by the gross negligence or willful misconduct of Barr or its Related Parties. 
  
 7.2 Indemnification by Barr. Barr agrees to defend, indemnify and hold harmless Galen and its Affiliates and their
Related Parties from and against any and all Damages incurred or suffered by such Persons to the extent caused by or arising out of or in connection with any breach of any representation, warranty, covenant or agreement made by Barr in this
Agreement, except to the extent caused by the gross negligence or willful misconduct of Galen or its Related Parties. 
  
 7.3 Notice of Claims; Third Party Claims. 
  
 (a) Any Person to be indemnified under this Article 7 (the “Indemnified Party”) shall promptly notify in writing the
Party from whom indemnification is sought (the “Indemnifying Party”) of any potentially indemnifiable claim in reasonable detail; provided that any notice failure hereunder shall not limit the obligation of the Indemnifying
Party, except to the extent the Indemnifying Party is materially prejudiced thereby. 
  
 (b) The Indemnifying Party shall conduct and control the defense of any indemnifiable claim, but may not compromise or settle any such
claim in any matter that affects the rights or obligations of the Indemnified Party without the approval of the Indemnified Party, such approval not to be unreasonably withheld. No Indemnified Party may compromise or settle any indemnifiable claim
for hereunder without the consent of the Indemnifying Party. The Indemnifying Party shall permit the Indemnified Party to participate in, but not control, the defense of any such claim through counsel of its choice, at its own cost and expense.

  
 (c) The Parties shall cooperate in the
defense of any indemnifiable claim and shall inform each other of its progress. The Parties shall cooperate to mitigate all Damages in connection with an indemnifiable claim. 
  

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 7.4 Indemnification Payment Obligation. Except for Damages resulting from breaches of any
representations and warranties contained in Sections 5.1(a), (b), (d) and (g), there shall be no liability for indemnification under this Article 7 unless and until the cumulative aggregate amount of indemnifiable Damages for which an Indemnifying
Party is responsible equals or exceeds Two Million Dollars (US$2,000,000) (the “Deductible Amount”), in which event the Indemnifying Party shall pay all amounts in excess of the Deductible Amount in accordance with the terms hereof;
provided the maximum aggregate amount of indemnifiable Damages which may be recovered by an Indemnified Party hereunder shall be an amount equal to Twenty Million Dollars (US$20,000,000). 
  
 7.5 Indemnification Payment Adjustments. The amount of any Damages for
which indemnification is provided under this Article 7 shall be net of (a) any amount recovered by the Indemnified Party pursuant to any indemnification by or indemnification agreement with any Person and (b) the amount of any insurance proceeds
received and any other amount recovered, if any, by the Indemnified Party with respect to any Damages. If the amount to be netted hereunder from any payment required under Article 7 is determined after payment by the Indemnifying Party of any amount
otherwise required to be paid to an Indemnified Party in accordance with the terms of this Article 7, the Indemnified Party shall repay to the Indemnifying Party, promptly after such determination, any amount that the Indemnifying Party would not
have had to pay pursuant to this Article 7 had such determination been made at the time of or prior to such payment. 
  
 7.6 Survival. If the Option is exercised, the representations and warranties of the Parties contained herein shall survive the Exercise Date and
shall remain in full force and effect, regardless of any investigation made by or on behalf of Galen or Barr, for a period of twenty-four (24) months after the Exercise Date, unless prior to such date, a claim for indemnification with respect
thereto shall have been made by written notice given under Section 7.3. 
  
 7.7 Insurance. Each Party will obtain and maintain, during the Term, at its own cost and expense, with reputable and financially sound insurance carriers, comprehensive commercial general liability insurance, including product
liability insurance, to cover such Party’s indemnification obligations hereunder, or self-insurance, in amounts consistent with such Party’s normal business practices. Each Party will name the other Party as an additional insured on each
such insurance policy. Each such policy or self-insurance shall be in types and amount that are reasonable and customary in the pharmaceutical industry for companies engaged in similar business and operations and amounts that meet all contractual
requirements of each Party’s vendors, distributors or other contractors, at a minimum of fifty million US Dollars (US$50,000,000) coverage. Maintenance of such insurance coverage will not relieve a Party of any responsibility under this
Agreement for Damages in excess of such insurance limits or otherwise. Each Party will provide the other Party, upon reasonable request, with a certificate from the insurer(s) evidencing such insurance coverage. 
  
 7.8 Limitation of Liabilities. EXCEPT WITH RESPECT TO A PARTY’S
INDEMNIFICATION OBLIGATIONS HEREUNDER WITH RESPECT TO THIRD PARTY CLAIMS, NEITHER PARTY WILL BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR PUNITIVE DAMAGES, HOWEVER CAUSED OR UPON ANY THEORY OF LIABILITY
(INCLUDING NEGLIGENCE, GROSS 

  

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NEGLIGENCE OR WILLFUL MISCONDUCT) ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ITS PERFORMANCE HEREUNDER. 
  
 7.9 Sole and Exclusive Remedy. The Parties acknowledge and agree that
the remedies provided for in this Agreement shall be the Parties’ sole and exclusive remedy with respect to the subject matter of this Agreement, except for claims based on fraud or willful misconduct. Notwithstanding the foregoing, the Parties
hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the Parties shall be entitled to seek an injunction or injunctions to prevent breaches of this
Agreement in addition to any other remedy to which they are entitled in equity. 
  
 ARTICLE 8 
 TERM AND TERMINATION 
  
 8.1 Term. Unless earlier terminated by the written agreement of the Parties or pursuant to the provisions of Section
8.2, and subject to Section 8.4: 
  
 (a) if no
Exercise Notice is properly given and/or no Exercise Payment is timely made, this Agreement shall terminate upon the expiration of the Option Term; and upon such termination, this Agreement shall no longer have any force or effect, and neither Party
shall have any obligation or liability to the other hereunder, except pursuant to Article 6; and 
  
 (b) if an Exercise Notice is properly given and the Exercise Payment timely made, this Agreement shall terminate upon the expiration of
the License Term. 
  
 8.2 Rights of Termination.

  
 (a) Voluntary Termination by Either
Party. Notwithstanding any other provision herein, either Party may terminate this Agreement on a Licensed Product-by-Licensed Product basis immediately upon written notice to the other Party in the event that the FDA notifies Barr in writing
that it has finally rejected the ANDA relating to such Licensed Product, and such rejection is not appealable. For avoidance of doubt, any termination pursuant to this Section 8.2 as to one Licensed Product (but not both Licensed Products) shall not
modify the amount of any payment due under Article 2 in connection with exercising the Option as to the other Licensed Product. 
  
 (b) Material Breach. Either Party may terminate this Agreement by providing written notice of such termination to the other Party,
if (i) the other party fails to pay any amount of money due and payable hereunder and not disputed in good faith, and fails to remedy the same after thirty (30) days written notice or (ii) the other Party is finally adjudicated to have materially
breached any provision of this Agreement, which breach materially adversely affects the other Party’s rights under this Agreement, in the aggregate, and the breaching party fails to remedy the same within ninety (90) days after written notice
given after such adjudication (a “Breach Notice”) (or, if applicable, such longer period (not exceeding one hundred twenty (120) days) as would be reasonably necessary for a diligent party to cure such material breach;
provided that the breaching Party has commenced and continues diligent efforts to cure during the initial ninety (90) day period following receipt of the Breach Notice. 
  

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 (c) Termination of Supply Agreement. This Agreement shall terminate automatically
without further action by either Party in the event the Supply Agreement is terminated by Barr pursuant to Sections 10.2(a) and 10.2(c) thereof. 
  
 (d) Bankruptcy. Either Party may, subject to the provisions set forth herein, terminate this Agreement immediately without further
notice to the other Party if, at any time, the other Party shall: (i) file in any court pursuant to any statute a petition for bankruptcy or insolvency, or for reorganization in bankruptcy, or for an arrangement or for the appointment of a receiver,
trustee or administrator of such Party or of its assets; (ii) be served with an involuntary petition against it, filed in any insolvency proceeding, and such petition shall not be dismissed within thirty (30) days after the filing thereof; (iii)
propose or be a party to any dissolution; or (iv) make an assignment for the benefit of its creditors. For avoidance of doubt, all rights and licenses granted under or pursuant to any section of this Agreement are, and shall otherwise be deemed to
be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of “intellectual property” as defined thereunder. The Parties shall retain and may fully exercise all of their respective rights and elections under the Bankruptcy
Code; provided, however, that should Barr become a party to a bankruptcy proceeding and such proceeding is not dismissed within thirty (30) days then, to the extent permitted by law, this Agreement and the licenses granted by Barr hereunder
shall be adopted by any bankruptcy trustee or relevant third party charged with the disposition of same, and shall not be rejected by same, it being the Parties’ intent that, in such event, Galen and its Affiliates and sublicensees shall be
entitled to retain the rights granted to them hereunder by Barr. Further, upon the bankruptcy of Barr, Galen shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property, and such, if not
already in its possession, shall be promptly delivered to Galen unless Barr elects to continue, and continues, to perform all of its obligations under this Agreement. 
  
 8.3 Effect of Expiration or Termination. Expiration or termination of this Agreement pursuant to this Article 8 by
either Party shall not (a) relieve a Party of any obligation accruing to such Party prior to such termination, or (b) result in the waiver of any right or remedy by a Party accruing to such Party prior to such termination. 
  
 8.4 Accrued Rights; Surviving Obligations. Unless explicitly provided
otherwise in this Agreement, termination, relinquishment or expiration of this Agreement for any reason shall be without prejudice to any rights, which shall have accrued to the benefit to any Party prior to such termination, relinquishment or
expiration, including damages arising from any breach hereunder. Such termination, relinquishment or expiration shall not relieve any Party from obligations which are expressly indicated to survive termination or expiration of the Agreement,
including those obligations set forth in this Section 8.4, in Sections 3.6, and 8.3 and in Articles 6, 7 and 9. 
  
 ARTICLE 9 
 MISCELLANEOUS 
  
 9.1 Further Actions. Each Party agrees to execute, acknowledge and
deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 
  

 - 19 - 

 9.2 Compliance with Export Regulations. Neither Party shall export any technology licensed to it
by the other Party under this Agreement, except (a) if permitted under this Agreement and (b) in compliance with United States export laws and regulations. 
  
 9.3 Expenses. Unless otherwise provided herein, all costs and expenses incurred in connection with this Agreement and the transactions contemplated
hereby shall be paid by the Party which shall have incurred the same and the other Party shall have no liability relating thereto. 
  
 9.4 Force Majeure. Neither Party shall be liable to the other Party for loss or damages, or shall have any right to terminate this Agreement for
any default or delay attributable to any Force Majeure; provided, that the Party affected gives prompt notice of any such cause to the other Party and of the period for which such Force Majeure is expected to continue. The Party giving such
notice shall thereupon be excused from such of its obligations hereunder for such actual time as it is thereby disabled from performing such obligations solely due to the continuance of the Force Majeure event; provided, that such affected
Party promptly commences and continues to use its commercially reasonable efforts to (a) cure such disablement and (b) mitigate its effects. 
  
 9.5 Notices. Notices to Barr shall be addressed to: 
  
 Barr Laboratories, Inc. 
 400 Chestnut Ridge Road 
 Woodcliff Lake, NJ 07677-7668, USA 
 Attention: President 
 Facsimile No.: +1 (888) 843-0563 
  
 and
to: 
  
 Barr Laboratories, Inc. 
 400 Chestnut Ridge Road 
 Woodcliff Lake, NJ 07677-7668, USA 
 Attention: General Counsel 
 Facsimile No.: +1 (888) 843-0563 
  
 with a copy to: 
  
 Morgan, Lewis & Bockius LLP 
 502 Carnegie Center 
 Princeton, New Jersey 08540 
 Attention: Randall B. Sunberg 
 Facsimile No.: +1 (609) 919-6639 
  

 - 20 - 

 Notices to Galen shall be addressed to: 
  
 Galen (Chemicals) Limited 
 4 Adelaide Street 
 Dun Laoghaire, Co. Dublin 
 Ireland 
 Attention: Senior Vice President, Finance 
 Facsimile No.: 011-33-1-214-8477 
  
 With a copy to 
  
 Galen Holdings PLC

 c/o Warner Chilcott, Inc. 
 100 Enterprise Drive 
 Rockaway, NJ 07866 
 Attention: Executive Vice President, 
 Corporate Development and General Counsel 
 Facsimile No.: +1 (973) 442-3316 
  
 Either Party may change the address to which notices shall be sent by giving notice to the
other Party in the manner herein provided. Such notices will be deemed to have been given on the date delivered in the case of hand delivery or delivery by overnight courier, on the date set forth in the confirmation sheet in the case of facsimile
delivery, and on the fifth (5th) Business Day following the date of post mark in the case of delivery by mail.

  
 9.6 Assignment. Neither Party hereto may assign any of
its rights or obligations under this Agreement without the prior written consent of the other Party; except to an Affiliate, or in connection with a merger, reorganization, change of control or sale of all or substantially all of the applicable
business. Any purported assignment in violation of the foregoing shall be null and void ab initio and of no force or effect. No assignment of this Agreement will relieve the assigning Party from any of its obligations hereunder. In the event of a
permitted assignment, this Agreement shall be binding upon and inure solely to the benefit of the Parties and their respective successors and permitted assigns. 
  

9.7 Amendment. No amendment, modification or supplement of any provision of this Agreement shall be valid or effective unless made in writing
and signed by a duly authorized officer of each Party. 
  
 9.8
Waiver. No provision of this Agreement shall be waived by any act, omission or knowledge of a Party or its agents or employees except by an instrument in writing expressly waiving such provision and signed by a duly authorized officer of the
waiving Party. The failure of any Party to assert its rights under this Agreement or otherwise shall not constitute a waiver of such rights. 
  
 9.9 Governing Law. This Agreement and any dispute arising out of or related to this Agreement shall be governed by and construed in accordance with
the laws of the State of New York. With respect to any Proceeding relating to this Agreement, each Party irrevocably agrees 

  

 - 21 - 

 
and consents to the exclusive jurisdiction of the federal and state courts in Manhattan, New York and waives any objection to venue of any such proceeding
brought in any such court. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY IN RESPECT TO
ANY SUCH PROCEEDING. 
  
 9.10 Escalation. Before either Party shall be entitled to file a lawsuit in connection with disputes under this Agreement, either Party may, by written notice to the other Party, require the Parties to submit any such disputed matter
to the Chief Executive Officers of the Parties, who shall meet and use good faith efforts to negotiate a resolution within thirty (30) days of receipt of such notice. In the event that the Chief Executive Officers are unable to resolve such dispute
within such 30-day period, either Party shall be entitled to seek all legal recourse available to it in connection therewith. The Chief Executive Officers shall issue their resolution in writing. 
  
 9.11 Severability. If any provision hereof should be held invalid,
illegal or unenforceable in any respect in any jurisdiction, the Parties hereto shall negotiate in good faith for a substitute provision and for such invalid, illegal, or unenforceable provisions which valid provision shall continue the intent and
purpose of such invalid provisions, and the validity, legality and enforceability of the remaining provisions shall not in any way be impaired thereby. 
  
 9.12 Descriptive Headings. The descriptive headings of this Agreement are for convenience only, and shall be of no force or effect in construing or
interpreting any of the provisions of this Agreement. 
  
 9.13
Certain Conventions. As used in this Agreement, the masculine shall include the feminine and neuter, and the singular shall include the plural and the plural shall include the singular, in each case as the context may require. The word
“including” shall be deemed followed by “without limitation”, “but not limited to” or words of similar meaning. Any reference to an Article, Section, subsection or clause is a reference to an Article, Section,
subsection or clause of this Agreement unless otherwise expressly indicated. 
  
 9.14 No Strict Construction. This Agreement has been prepared jointly and shall not be strictly construed against either Party. 
  
 9.15 Entire Agreement of the Parties. This Agreement and the Supply Agreement, together with the Schedules and
Exhibits hereto and thereto, constitute and contain the complete, final and exclusive understanding and agreement of the Parties and cancels and supersedes any and all prior negotiations, correspondence, understandings and agreements whether oral or
written, between the Parties respecting the subject matter hereof and thereof; except for the Confidentiality Agreement which shall remain full force and effect as modified hereunder, and the terms of which are incorporated herein by
reference. For the avoidance of doubt, in the case of any inconsistency with respect to the supply of Licensed Product, the Parties expressly agree that the terms of the Supply Agreement (including the Quality Agreement attached thereto) shall
control. 
  

 - 22 - 

 9.16 Independent Contractors. The relationship between the Parties created by this Agreement is
one of independent contractors and neither Party shall have the power or authority to bind or obligate the other except as expressly set forth in this Agreement. 
  
 9.17 No Third Party Beneficiaries. No Person other than the Parties hereto and their respective Affiliates,
successors and permitted assigns shall be deemed an intended beneficiary hereunder or have any legal or equitable rights or benefits to enforce any provision of this Agreement. 
  
 9.18 Counterparts; Facsimile Signatures. This Agreement may be executed in counterparts and such counterparts taken
together shall constitute one and the same agreement. This Agreement may be executed by facsimile signatures, which signatures shall have the same force and effect as original signatures. 
  
 [Signature Page Immediately Follows] 
  

 - 23 - 

 IN WITNESS WHEREOF, duly authorized representatives of the Parties have duly executed this Agreement as
of the Effective Date. 
  

			
	BARR LABORATORIES, INC.
		
	By:	 	 /s/ Paul M. Bisaro

	 Name:
	 	 Paul M. Bisaro

	 Title:
	 	 President & COO

	
	GALEN (CHEMICALS) LIMITED
		
	By:	 	 /s/ Illegible

	 Name:
	 	 
	 Title:
	 	 

  
 SIGNATURE PAGE TO
OPTION AND LICENSE AGREEMENT 
  

 Schedule 2.2 
  
 Barr Wire Transfer Instructions 
  
 Boston Safe Deposit and Trust 
 135 Santilli
Highway 
 Everett, MA 02149-1906 
 ABA# 011-001234 
 Account Name: Barr Laboratories, Inc. 
 Account # 137871 
  

 Schedule 5.1(g)  
  
 Proceedings 
  

	1.	Investigations by the FTC relating to the (1) letter dated December 16, 2003 from Andrew S. Ginsburg of the FTC to Anthony D. Bruno of Galen Holdings PLC and (2) letter dated
February 17, 2004 from Bradley S. Albert of the FTC to Charles E. Koob of Simpson Thacher & Bartlett LLP. 

  

 Schedule 5.2 
  
 ANDA Applications; Exceptions 
  
 ANDA No. 76-198 
  
 ANDA No. 76-238 
  

 Schedule 6.4  
  
 Press Release 
  
 See attached. 
  

					
	

	 	 	 	

			
	 400 Chestnut Ridge Road
	 	 	 	 Seagoe Industrial Estate

	 Woodcliff Lake, NJ 07677
	 	 	 	 Craigavon BT63 5UA

	 201-930-3300
	 	 	 	 United Kingdom

	 	 	 	 	 44 (0) 28 3833 4974

			
	 	 	 	 	NEWS RELEASE

  
 CONTACTS: 
  

					
	Barr Pharmaceuticals, Inc.	  	 	  	 
	 Carol A. Cox
	  	Tel:	  	201-930-3720
	 	  	email:	  	ccox@barrlabs.com
			
	Galen Holdings PLC	  	 	  	 
	 David Kelly
	  	Tel:	  	44 (0) 28 3836 3634
	 Sr. Vice President, Finance and Planning
	  	email:	  	david.kelly@galenplc.com
			
	Financial Dynamics	  	Tel:	  	44 (0) 207 831 3113
	Francetta Carr	  	 	  	 

  
 Barr and Galen Announce Agreements
for Duramed to Acquire Exclusive Rights to Galen’s Loestrin® Oral Contraceptive Products 
  
 Galen to
Receive Option to License Barr’s Generic Ovcon® 35 Oral Contraceptive; Parties Continue to Negotiate Settlement of Outstanding Patent Challenges on Estrostep® and femhrt® 
  
 Woodcliff Lake, NJ and Craigavon, Northern Ireland - March 25, 2004 – Barr Pharmaceuticals, Inc. (NYSE: BRL) and Galen Holdings PLC (LSE: GAL.L, NASDAQ: GALN) today announced that they have completed an agreement under which
Barr Pharmaceuticals’ subsidiary, Duramed Pharmaceuticals, Inc., has acquired from Galen the exclusive rights in the United States and Canada for Loestrin® and Loestrin® FE oral contraceptive products. Under the terms of a second agreement, Barr Pharmaceuticals’ subsidiary, Barr Laboratories, Inc., granted Galen an
option to acquire an exclusive license for Barr’s generic version of Galen’s Ovcon® 35 oral contraceptive. Ban-Laboratories has a pending Abbreviated New Drug Application (ANDA) for the 0.4 mg norethindrone/0.035 mg ethinyl estradiol 21-day and 28-day generic Ovcon® 35 products. 
  
 Letters of intent related to the completed transactions were signed and announced in
September 2003. Barr Laboratories and Galen continue to negotiate a settlement of pending litigation between the companies regarding Galen’s femhrt® hormone therapy and Estrostep® oral contraceptive products that, if completed, would allow Barr Laboratories to launch generic versions of those products under the terms of a
non-exclusive license six months prior to patent expiry. 
  

			
	

	 	

  

 Loestrin® Product License Agreement 
  
 Under the terms of the agreement, Duramed acquired from Galen the exclusive rights to manufacture and market Loestrin® products in the United States and Canada for $45 million. 
  
 Option Agreement Related to Ovcon® 35 Oral Contraceptive 
  
 Under the terms of a second agreement, Barr Laboratories granted Galen an option to acquire
an exclusive license under its ANDA for Ovcon® 35,
which is currently pending at the U.S. Food & Drug Administration (FDA). Within 45 days of FDA approval of Barr Laboratories’ ANDA for Ovcon® 35, Galen has the right to exercise its option. If Galen chooses to exercise the option, it would be granted a five-year exclusive license to
sell the product under the ANDA. At the end of the five-year term, Galen can extend the license on a non-exclusive basis for an additional five-year period. Galen made a $1 million payment to Barr Laboratories upon signing the option agreement and
would pay Barr an additional $19 million at the time of the exercise of the option. 
  
 Barr Pharmaceuticals, Inc. is engaged through its subsidiaries in the development, manufacture and marketing of generic and proprietary pharmaceuticals. 
  
 Galen is a specialty pharmaceutical company based in Craigavon, Northern Ireland and Rockaway, New Jersey, US. The Galen group of companies
develops, acquires and manufactures branded prescription pharmaceutical products, which are promoted by the group’s sales and marketing divisions in the UK, Ireland and the US. 
  
 Forward-Looking Statements 
  
 The following press release contains a number of forward-looking statements. To the extent that any statements made in this press release contain information that is
not historical, these statements are essentially forward-looking. Forward-looking statements can be identified by their use of words such as “expects,” “plans,” “will,” “may,” “anticipates,”
“believes,” “should,” “intends,” “estimates” and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results
may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include: the difficulty in predicting the timing and outcome of legal proceedings, including patent-related matters such as patent
challenge settlements and patent infringement cases; the difficulty of predicting the timing of U.S. Food and Drug Administration, or FDA, approvals; court and FDA decisions on exclusivity periods; the ability of competitors to extend exclusivity
periods for their products; the success of our product development activities; market and customer acceptance and demand for our pharmaceutical products; our dependence on revenues from significant customers; reimbursement policies of third party
payors; our dependence on revenues from significant products; the use of estimates in the preparation of our financial statements; the impact of competitive products and pricing; the ability to develop and launch new products on a timely basis; the
availability of raw materials; the availability of any product we purchase and sell as a distributor; our mix of product sales between manufactured products, which typically have higher margins, and distributed products, which typically have lower
margins, during any given period; the regulatory environment; our exposure to product liability and other lawsuits and contingencies; the increasing cost of insurance and the availability of product liability insurance coverage; our timely and
successful completion of strategic initiatives, including integrating 

  

			
	

	 	

  

 
companies and products we acquire and implementing new enterprise resource planning systems; fluctuations in operating results, including the effects on
such results from spending for research and development, sales and marketing activities and patent challenge activities; and other risks detailed from time to time in our filings with the Securities and Exchange Commission. 
  
 [EDITOR’S ADVISORY: Barr Pharmaceuticals, Inc. news releases are available free of
charge through PR Newswire’s News On-Call fax service. For a menu of Barr’s previous releases, or to receive a specific release via fax call: 800-758-5804 — ext. 089750. Barr news releases and corporate information are also available
on Barr’s website (www.barrlabs.com). For further information on Galen, please visit www.galenplc.com. Loestrin®, Loestrin® FE, femhrt®, Estrostep® and
Ovcon® are registered trademarks of Galen
(Chemicals) Limited.] 
  
 ###

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