Document:

EX-10.10

 Exhibit 10.10 
  

 
 GUARANTY 

dated as of 
 October 4, 2013

 among 
 APTALIS MIDHOLDINGS
INC., 
 APTALIS PHARMA INC., 

APTALIS PHARMA CANADA INC., 

CERTAIN OTHER SUBSIDIARIES OF 

APTALIS PHARMA INC. 
 IDENTIFIED
HEREIN 
 and 
 BANK OF AMERICA,
N.A., 
 as Administrative Agent 
  

 

 TABLE OF CONTENTS 

PAGE 

ARTICLE 1 

DEFINITIONS 
  

					
	 Section 1.01.
	 	Credit Agreement	 	
	 Section 1.02.
	 	 Other Defined Terms
	 	

 ARTICLE 2 

GUARANTY 
  

							
	 Section 2.01.
	 	 Guaranty
	  	 	3	  
	 Section 2.02.
	 	 Guaranty of Payment
	  	 	3	  
	 Section 2.03.
	 	 No Limitations
	  	 	3	  
	 Section 2.04.
	 	 Reinstatement
	  	 	5	  
	 Section 2.05.
	 	 Agreement to Pay; Subrogation
	  	 	5	  
	 Section 2.06.
	 	 Information
	  	 	6	  

 ARTICLE 3 

INDEMNITY, SUBROGATION AND SUBORDINATION 

 

							
	 Section 3.01.
	 	 Indemnity and Subrogation
	  	 	6	  
	 Section 3.02.
	 	 Contribution and Subrogation
	  	 	6	  
	 Section 3.03.
	 	 Subordination
	  	 	7	  

 ARTICLE 4 

MISCELLANEOUS 
  

							
	 Section 4.01.
	 	 Notices
	  	 	7	  
	 Section 4.02.
	 	 Waivers; Amendment
	  	 	7	  
	 Section 4.03.
	 	 Administrative Agent’s Fees and Expenses, Indemnification
	  	 	8	  
	 Section 4.04.
	 	 Survival of Representations and Warranties
	  	 	8	  
	 Section 4.05.
	 	 Counterparts; Effectiveness; Successors and Assigns; Several Agreement
	  	 	9	  
	 Section 4.06.
	 	 Severability
	  	 	9	  
	 Section 4.07.
	 	 Right of Set-off
	  	 	9	  
	 Section 4.08.
	 	 Governing Law; Jurisdiction; Venue; Waiver of Jury Trial; Consent to Service of Process
	  	 	9	  
	 Section 4.09.
	 	 Headings
	  	 	10	  
	 Section 4.10.
	 	 Guaranty Absolute
	  	 	10	  
	 Section 4.11.
	 	 Termination or Release
	  	 	10	  
	 Section 4.12.
	 	 Additional Guarantors
	  	 	11	  
	 Section 4.13.
	 	 Limitation on Guaranteed Obligations
	  	 	11	  
	 Section 4.14.
	 	 Keepwell
	  	 	12	  
	 ANNEX A    
	 	OTHER GUARANTORS	  			
	 EXHIBIT I    
	 	GUARANTY SUPPLEMENT	  			

  
 i 

 GUARANTY dated as of October 4, 2013, among APTALIS MIDHOLDINGS INC., a Delaware
corporation (“Holdings”), APTALIS PHARMA INC., a Delaware corporation (the “Parent Borrower”), APTALIS PHARMA CANADA INC., a Canadian corporation (the “Co-Borrower” and, together with the Parent
Borrower, the “Borrowers,” and, each a “Borrower”), certain other Subsidiaries of the Parent Borrower from time to time party hereto and BANK OF AMERICA, N.A., as Administrative Agent (as defined below). 

Reference is made to the Credit Agreement dated as of October 4, 2013 (as amended, amended and restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among the Parent Borrower, the Co-Borrower, Holdings, Bank of America, N.A., as Administrative Agent, Swing Line Lender, and L/C Issuer, and each lender from time to time party
thereto (collectively, the “Lenders” and individually, a “Lender”). The Lenders have agreed to extend credit to the Borrowers subject to the terms and conditions set forth in the Credit Agreement. The obligations of
the Lenders to extend such credit are conditioned upon, among other things, the execution and delivery of this Agreement. Holdings and the Subsidiary Guarantors party hereto are affiliates of the Borrowers and the Borrowers are affiliates of each
other, and Holdings and the other Guarantors will derive substantial direct and indirect benefits from the extension of credit to the Borrowers pursuant to the Credit Agreement and are willing to execute and deliver this Agreement in order to induce
the Lenders to extend such credit. Accordingly, the parties hereto make the following representations and warranties to the Administrative Agent for the benefit of the Secured Parties and hereby covenant and agree as follows: 

ARTICLE 1 

DEFINITIONS 

Section 1.01. Credit Agreement. (a) Capitalized terms used in this Agreement and not otherwise defined herein have the
meanings specified in the Credit Agreement. 
 (b) The rules of construction specified in Article 1 of the Credit Agreement also
apply to this Agreement. 
 Section 1.02. Other Defined Terms. As used in this Agreement, the following terms have the meanings
specified below: 
 “Administrative Agent” means Bank of America, N.A., in its capacity as administrative agent and
collateral agent under any of the Loan Documents, or any successor administrative agent and collateral agent. 

“Agreement” means this Guaranty. 

 “Bankruptcy Code” means Title 11 of the United States Code entitled
“Bankruptcy,” as now or hereafter in effect, or any successor thereto. 
 “Claiming Party” has the
meaning assigned to such term in Section 3.02. 
 “Contributing Party” has the meaning assigned to such term in
Section 3.02. 
 “Credit Agreement” has the meaning assigned to such term in the preliminary statement of this
Agreement. 
 “Guarantor” means Holdings, the Parent Borrower (in the case of the Obligations of the Co-Borrower),
the Co-Borrower (in the case of the Obligations of the Parent Borrower, regardless of whether or not the Co-Borrower shall cease to be a Borrower in accordance with clause (b) of the second sentence of the definition of Guarantors under the
Credit Agreement so long as the Co-Borrower remains a Guarantor), each other Person listed on Annex A hereto and each party that becomes a party to this Agreement after the Closing Date; provided that if any such Guarantor is
released from its obligations hereunder as provided in Section 4.11(b), such Person shall cease to be a Guarantor hereunder effective upon such release. 

“Guaranty Parties” means, collectively, the Borrowers and each other Guarantor and “Guaranty Party”
means any one of them. 
 “Guaranty Supplement” means an instrument substantially in the form of Exhibit I hereto.

 “Holdings” has the meaning assigned to such term in the preliminary statement of this Agreement. 

“Loan Documents” means (a) each Loan Document as defined under the Credit Agreement, (b) each Secured Hedge
Agreement entered into with a Hedge Bank and (c) each agreement governing Cash Management Services entered into with a Cash Management Bank. 

“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that at the time the relevant
guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can
cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. 

  
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 “Subsidiary Guarantor” means each Guarantor other than Holdings and the Parent
Borrower. 
 ARTICLE 2 

GUARANTY 

Section 2.01. Guaranty. (a) Holdings and each Subsidiary Guarantor (including, for the avoidance of doubt, the
Co-Borrower, regardless of whether or not the Co-Borrower shall cease to be a Borrower in accordance with clause (b) of the definition of “Guarantors” under the Credit Agreement so long as the Co-Borrower has not been released from
its obligations hereunder in accordance with Section 4.11(b)) irrevocably, absolutely and unconditionally guaranties, jointly with each other and severally, the due and punctual payment of the Obligations of the Parent Borrower, and
(b) Holdings, the Parent Borrower and each Subsidiary Guarantor (other than the Co-Borrower) irrevocably, absolutely and unconditionally guaranties, jointly with each other and severally, the due and punctual payment of the Obligations of the
Co-Borrower, in each case, whether such Obligations are now existing or hereafter incurred under, arising out of any Loan Document whether at stated maturity or earlier, by reason of acceleration, mandatory prepayment or otherwise in accordance
herewith or with any other Loan Documents. Each of the Guarantors further agrees that the Obligations may be extended, increased or renewed, amended or modified, in whole or in part, without notice to or further assent from it, and that it will
remain bound upon its guaranty notwithstanding any such extension, increase, renewal, amendment or modification, in whole or in part, of any Obligation. To the extent permitted by applicable law, each of the Guarantors waives presentment to, demand
of payment from and protest to any Guaranty Party of any of the Obligations, and also waives notice of acceptance of its guaranty and notice of protest for nonpayment. For the avoidance of doubt, nothing contained herein shall affect in any manner
the joint and several liability of the Borrowers in respect of the Loans and other Obligations, in accordance with and as set forth in the Credit Agreement. 

Section 2.02. Guaranty of Payment. Each of the Guarantors further agrees that its guaranty hereunder constitutes a guaranty
of payment when due and not of collection, and, to the extent permitted by applicable law, waives any right to require that any resort be had by the Administrative Agent or any other Secured Party to any security held for the payment of the
Obligations, or to any balance of any deposit account or credit on the books of the Administrative Agent or any other Secured Party in favor of the Parent Borrower, the Co-Borrower or any other Person. 

Section 2.03. No Limitations. (a) Except for termination or release of a Guarantor’s obligations hereunder as expressly
provided in Section 4.11 and 

  
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except as is otherwise provided under applicable law, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason,
including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the
Obligations, or otherwise. Without limiting the generality of the foregoing, and except for termination or release of a Guarantor’s obligations hereunder in accordance with the terms of Section 4.11, the obligations of each Guarantor
hereunder shall not be discharged or impaired or otherwise affected by (i) the failure of the Administrative Agent or any other Secured Party to assert any claim or demand or to enforce any right or remedy under the provisions of any Loan
Document or otherwise; (ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Loan Document or any other agreement, including with respect to any other Guarantor under this
Agreement; (iii) the release of any security held by the Administrative Agent or any other Secured Party for the payment and performance of the Obligations; (iv) any default, failure or delay, willful or otherwise, in the performance of
the Obligations; (v) the failure to perfect any security interest in, or the release of, any of the Collateral held by or on behalf of the Administrative Agent or any other Secured Party; (vi) any change in the corporate existence,
structure or ownership of any Loan Party, the lack of legal existence of any of the Borrowers or any other Guarantor or legal obligation to discharge any of the Obligations by any of the Borrowers or any other Guarantor for any reason whatsoever,
including, without limitation, in any insolvency, bankruptcy or reorganization of any Loan Party; (vii) the existence of any claim, set-off or other rights that any Guarantor may have at any time against any of the Borrowers, the Administrative
Agent, any other Secured Party or any other Person, whether in connection with the Credit Agreement, the other Loan Documents or any unrelated transaction; (viii) this Agreement having been determined (on whatsoever grounds) to be invalid,
non-binding or unenforceable against any other Guarantor ab initio or at any time after the Closing Date; or (ix) any other circumstance (including statute of limitations), any other act or omission that may or might in any manner or to
any extent vary the risk of any Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than the payment in full in cash of all the Obligations (excluding contingent obligations as to which no claim has
been made) or other termination of such Guarantor’s obligations hereunder as provided in Section 4.11), except in each case as is otherwise provided under applicable law. Each Guarantor expressly authorizes the applicable Secured Parties
to take and hold security for the Obligations, to exchange, waive or release any or all such security (with or without consideration), to enforce or apply such security and direct the order and manner of any sale thereof in their sole discretion or
to release or substitute any one or more other guarantors or obligors upon or in respect of the Obligations, all in accordance with the Security Agreements and other Loan Documents and all without affecting the obligations of any Guarantor
hereunder. 

  
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 (b) To the fullest extent permitted by applicable law, and except for termination or release of a
Guarantor’s obligations hereunder in accordance with the terms of Section 4.11 (but without prejudice to Section 2.04), each Guarantor waives any defense based on or arising out of any defense of any Guaranty Party or the
unenforceability of the Obligations, or any part thereof from any cause, or the cessation from any cause of the liability of any Guaranty Party, other than the payment in full in cash (excluding contingent obligations as to which no claim has been
made) of all the Obligations or other termination of such Guarantor’s obligations hereunder as provided in Section 4.11. The Administrative Agent and the other Secured Parties may, in accordance with the terms of the Collateral Documents
and at their election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Obligations, make any
other accommodation with any Guaranty Party or exercise any other right or remedy available to them against any Guaranty Party, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Obligations
have been paid in full in cash (excluding contingent obligations as to which no claim has been made). To the fullest extent permitted by applicable law, each Guarantor waives any defense arising out of any such election even though such election
operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor against any Guaranty Party, as the case may be, or any security. 

Section 2.04. Reinstatement. Each of the Guarantors agrees that its guaranty hereunder shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation, is rescinded, invalidated or must otherwise be restored by the Administrative Agent or any other Secured Party upon the bankruptcy or reorganization of
any Guaranty Party or otherwise. 
 Section 2.05. Agreement to Pay; Subrogation. In furtherance of the foregoing
and not in limitation of any other right that the Administrative Agent or any other Secured Party has at law or in equity against any Guarantor by virtue hereof, upon the failure of any Guaranty Party to pay any Obligation when and as the same shall
become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Administrative Agent for distribution to the Secured Parties in cash the
amount of such unpaid Obligation. Upon payment by any Guarantor of any sums to the Administrative Agent as provided above, all rights of such Guarantor against any Guaranty Party arising as a result thereof by way of right of subrogation,
contribution, reimbursement, indemnity or otherwise shall in all respects be subject to Article 3 herein. 

  
 5 

 Section 2.06. Information. Each Guarantor assumes all responsibility for being
and keeping itself informed of each Guaranty Party’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations, and the nature, scope and extent of the risks that such Guarantor
assumes and incurs hereunder, and agrees that none of the Administrative Agent or the other Secured Parties will have any duty to advise such Guarantor of information known to it or any of them regarding such circumstances or risks. 

ARTICLE 3 

INDEMNITY, SUBROGATION AND SUBORDINATION 

Section 3.01. Indemnity and Subrogation. In addition to all such rights of indemnity and subrogation as the Guarantors may have
under applicable law (but subject to Section 3.03), each of the Borrowers agrees that in the event a payment of an obligation shall be made by any Guarantor under this Agreement, the applicable Borrower shall indemnify such Guarantor for the
full amount of such payment and such Guarantor shall be subrogated to the rights of the Person to whom such payment shall have been made to the extent of such payment. 

Section 3.02. Contribution and Subrogation. Each Guarantor (a “Contributing Party”) agrees (subject to
Section 3.03) that, in the event a payment shall be made by any other Guarantor hereunder in respect of any Obligation and such other Guarantor (the “Claiming Party”) shall not have been fully indemnified by the applicable
Borrower as provided in Section 3.01, the Contributing Party shall indemnify the Claiming Party in an amount equal to the amount of such payment, in each case multiplied by a fraction of which the numerator shall be the net worth of the
Contributing Party on the date hereof and the denominator shall be the aggregate net worth of all the Contributing Parties together with the net worth of the Claiming Party on the date hereof (or, in the case of any Guarantor becoming a party hereto
pursuant to Section 4.12, the date of the Guaranty Supplement hereto executed and delivered by such Guarantor). Any Contributing Party making any payment to a Claiming Party pursuant to this Section 3.02 shall be subrogated to the rights
of such Claiming Party to the extent of such payment. Each Guarantor recognizes and acknowledges that the rights to contribution arising hereunder shall constitute an asset in favor of the party entitled to such contribution. In this connection,
each Guarantor has the right to waive, to the fullest extent permitted by applicable law, its contribution right against any other Guarantor to the extent that after giving effect to such waiver such Guarantor would remain solvent, in the
determination of the Lenders. 

  
 6 

 Section 3.03. Subordination. (a) Notwithstanding any provision of this
Agreement to the contrary, all rights of the Guarantors under Sections 3.01 and 3.02 and all other rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully subordinated to the payment in full in cash of the
Obligations (other than (i) contingent indemnity obligations for then-unasserted claims; (ii) obligations and liabilities under Secured Hedge Agreements; (iii) Secured Cash Management Agreements and (iv) Letters of Credit an L/C
Obligations that have been Cash Collateralized, back-stopped by a letter of credit reasonably satisfactory to the applicable L/C Issuer or deemed reissued under another agreement reasonably acceptable to the applicable L/C Issuer); provided
that if any amount shall be paid to such Guarantor on account of such subrogation rights at any time prior to the payment in full of the Obligations and an Event of Default shall be continuing, such amount shall be held in trust for the benefit of
the Secured Parties and shall forthwith be paid to the Administrative Agent to be credited and applied against the Obligations, whether matured or unmatured, in accordance with Section 4.02 of the U.S. Security Agreement. No failure on the part
of a Borrower or any Guarantor to make the payments required by Sections 3.01 and 3.02 (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of any Guarantor with respect to its
obligations hereunder. 
 ARTICLE 4 

MISCELLANEOUS 

Section 4.01. Notices. All communications and notices hereunder shall (except as otherwise expressly permitted herein) be
in writing and given as provided in Section 10.02 of the Credit Agreement. All communications and notices hereunder to any Guarantor shall be given to it in care of the Parent Borrower as provided in Section 10.02 of the Credit
Agreement. 
 Section 4.02. Waivers; Amendment. (a) No failure or delay by the Administrative Agent, any L/C Issuer
or any other Secured Party in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the L/C Issuers and the other Secured Parties hereunder and
under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by any Guaranty Party therefrom shall in any event
be effective unless the same shall be permitted by paragraph (b) of this Section 4.02, and then such waiver or consent shall be effective only in the specific instance 

  
 7 

 
and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default,
regardless of whether the Administrative Agent, any Lender or any L/C Issuer may have had notice or knowledge of such Default at the time. No notice or demand on any Guaranty Party in any case shall entitle any Guaranty Party to any other or further
notice or demand in similar or other circumstances. 
 (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to an agreement or agreements in writing entered into by the Administrative Agent and the Guaranty Party or Guaranty Parties with respect to which such waiver, amendment or modification is to apply, subject to any consent
required in accordance with Section 10.01 of the Credit Agreement. 
 Section 4.03. Administrative Agent’s Fees and
Expenses, Indemnification. (a) The parties hereto agree that the Administrative Agent shall be entitled to reimbursement of its reasonable and documented out-of-pocket expenses incurred in connection with this Agreement and to
indemnification related hereto as provided in Sections 10.04 and 10.05 of the Credit Agreement. 
 (b) Any such amounts payable as
provided hereunder shall be additional Obligations guaranteed hereby and secured by the other Collateral Documents. The provisions of this Section 4.03 shall remain operative and in full force and effect regardless of the termination of this
Agreement or any other Loan Document, the consummation of the transactions contemplated hereby, the repayment of any of the Obligations, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, or any
investigation made by or on behalf of the Administrative Agent or any other Secured Party. All amounts due under this Section 4.03 shall be payable within 30 Business Days of written demand therefor (together with backup documentation
supporting such request); provided, however, that any such Indemnitee shall promptly refund such amount to the extent that there is a final judicial or arbitral determination that such Indemnitee was not entitled to indemnification rights
with respect to such payment pursuant to the express terms of this Section 4.03. 
 Section 4.04. Survival of
Representations and Warranties. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and
delivery hereof and thereof, and shall continue in full force and effect with respect to each Guarantor until such Guarantor is released from its obligations under this Agreement pursuant to Section 4.11. 

  
 8 

 Section 4.05. Counterparts; Effectiveness; Successors and Assigns; Several
Agreement. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by telecopier or by electronic .pdf copy or other
electronic imaging means of an executed counterpart of a signature page to this Agreement shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement shall become effective as to any Guaranty Party when a
counterpart hereof executed on behalf of such Guaranty Party shall have been delivered to the Administrative Agent and a counterpart hereof shall have been executed on behalf of the Administrative Agent, and thereafter shall be binding upon such
Guaranty Party and the Administrative Agent and their respective successors and assigns permitted thereby, and shall inure to the benefit of such Guaranty Party, the Administrative Agent and the other Secured Parties and their respective successors
and assigns permitted thereby, except that no Guaranty Party shall have the right to assign or transfer its rights or obligations hereunder or any interest herein (and any such assignment or transfer shall be void) except as expressly contemplated
by this Agreement or the other Loan Documents. This Agreement shall be construed as a separate agreement with respect to each Guaranty Party and may be amended, modified, supplemented, waived or released with respect to any Guaranty Party without
the approval of any other Guaranty Party and without affecting the obligations of any other Guaranty Party hereunder. 

Section 4.06. Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable,
(a) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions; provided that the Lenders shall charge no fee in connection with any such amendment.
The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

Section 4.07. Right of Set-off. Upon the occurrence and during the continuance of any Event of Default, each Lender and its
Affiliates and each L/C Issuer and its Affiliates shall have the set-off rights set forth in Section 10.09 of the Credit Agreement, without any requirement of prior notice to any Guarantor, any such notice being waived by each Guarantor (on its
own behalf and on behalf of its Subsidiaries). Such rights are in addition to other rights and remedies (including other rights of setoff) that such Persons may have. 

Section 4.08. Governing Law; Jurisdiction; Venue; Waiver of Jury Trial; Consent to Service of Process. The terms of
Sections 10.15, 10.16 and 10.22 of 

  
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the Credit Agreement with respect to governing law, submission of jurisdiction, venue, consent to service of process and waiver of jury trial are incorporated herein by reference, mutatis
mutandis, and the parties hereto agree to such terms. 
 Section 4.09. Headings. Article and Section headings
and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement. 

Section 4.10. Guaranty Absolute. To the fullest extent permitted by applicable law, all rights of the Administrative Agent
hereunder and all obligations of each Guarantor hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any other Loan Document, any agreement with respect to any of the
Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any
consent to any departure from the Credit Agreement, any other Loan Document, or any other agreement or instrument, (c) any exchange, release or non-perfection of any Lien on other collateral, or any release or amendment or waiver of or consent
under or departure from any guaranty securing or guaranteeing all or any of the Obligations or (d) any other circumstance that might otherwise constitute a defense available to, or a discharge of, any Guarantor in respect of the Obligations or
this Agreement (other than payment in full in cash of all of the Obligations (other than obligations under Secured Hedge Agreements and Cash Management Obligations) and termination of the Aggregate Commitments) or other termination of such
Guarantor’s obligations hereunder as provided in Section 4.11. 
 Section 4.11. Termination or Release.
(a) This Agreement and the Guaranties made herein shall terminate with respect to all of the Guarantors, and the Guarantors shall automatically be released from their obligations hereunder, when (i) the Commitments have been terminated
in full, (ii) all the outstanding Obligations (other than (A) contingent indemnification obligations and (B) obligations and liabilities under Secured Cash Management Agreements and Secured Hedge Agreements) have been paid in full and
(iii) no Letter of Credit remains outstanding (other than Letters of Credit that are Cash Collateralized or back-stopped by a letter of credit in form and substance reasonably satisfactory to each L/C Issuer or a deemed reissuance under another
facility as to which other arrangements satisfactory to each L/C Issuer shall have been made). 
 (b) A Guarantor shall automatically be
released from its obligations hereunder as provided in Section 9.10 of the Credit Agreement. 

  
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 (c) In connection with any termination or release pursuant to paragraph (a) or (b) of
this Section 4.11, the Administrative Agent shall promptly execute and deliver to any Guarantor, at such Guarantor’s expense, all documents that such Guarantor shall reasonably request to evidence such termination or release and shall
perform such other actions reasonably requested by such Guarantor to effect such releases, in each case in accordance with the terms of Section 9.10 of the Credit Agreement. Any execution and delivery of documents pursuant to this
Section 4.11 shall be without recourse to or warranty by the Administrative Agent. 
 (d) The Administrative Agent shall have no
liability whatsoever to any Guarantor as a result of any release of any Guarantor by it as permitted (or which the Administrative Agent in good faith believes to be permitted) by this Section 4.11. 

(e) Notwithstanding anything to the contrary set forth in this Agreement, each Cash Management Bank and each Hedge Bank, by the acceptance of
the benefits under this Agreement hereby acknowledge and agree that (i) the Obligations of any Loan Party or any Restricted Subsidiary under any Secured Hedge Agreement and the Cash Management Obligations shall be guaranteed pursuant to this
Agreement only to the extent that, and for so long as, the other Obligations are so guaranteed and (ii) any release of a Guarantor effected in the manner permitted by this Agreement shall not require the consent of any Hedge Bank or Cash
Management Bank. 
 Section 4.12. Additional Guarantors. Each Restricted Subsidiary of the Parent Borrower that is
required to enter into this Agreement as a Guarantor pursuant to Section 6.11 of the Credit Agreement shall execute and deliver a Guaranty Supplement, and thereupon such Restricted Subsidiary shall become a Guarantor hereunder with the same
force and effect as if originally named as a Guarantor herein. The execution and delivery of any such instrument shall not require the consent of any other Guaranty Party hereunder. The rights and obligations of each Guaranty Party hereunder shall
remain in full force and effect notwithstanding the addition of any new Guaranty Party as a party to this Agreement. 

Section 4.13. Limitation on Guaranteed Obligations. Each Guarantor and each Secured Party (by its acceptance of the
benefits of this Agreement) hereby confirms that it is its intention that this Agreement not constitute a fraudulent transfer or conveyance for purposes of any Debtor Relief Laws (including the Bankruptcy Code, the Uniform Fraudulent Conveyance Act
or any similar Federal, state or provincial law). To effectuate the foregoing intention, each Guarantor and each Secured Party (by its acceptance of the benefits of this Agreement) hereby irrevocably agrees that the Obligations owing by such
Guarantor under this Agreement shall be limited to such amount as will, after giving effect to such  

  
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maximum amount and all other (contingent or otherwise) liabilities of such Guarantor that are relevant under such Debtor Relief Laws and after giving effect to any rights to contribution and/or
subrogation pursuant to any agreement providing for an equitable contribution and/or subrogation among such Guarantor and the other Guarantors, result in the Obligations of such Guarantor in respect of such maximum amount not constituting a
fraudulent transfer or conveyance. 
 Section 4.14. Keepwell. Each Qualified ECP Guarantor hereby jointly and severally
absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Loan Party to honor all of its obligations under this Agreement in respect of any Swap Obligations
(provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 4.14 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 4.14, or otherwise
under this Agreement, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of each Qualified ECP Guarantor under this Section 4.14 shall remain in full force
and effect until the payment in full and discharge of the Obligations. Each Qualified ECP Guarantor intends that this Section 4.14 constitute, and this Section 4.14 shall be deemed to constitute, a “keepwell, support, or other
agreement” for the benefit of each other Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. 

[Signatures on following page] 

  
 12 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written. 
  

			
	PARENT BORROWER
	
	APTALIS PHARMA INC.
		
	By:	 	 /s/ Steve Gannon

	Name:	 	Steve Gannon
	Title:	 	Senior Vice President, Chief Financial Officer and Treasurer
	
	CO-BORROWER
	
	APTALIS PHARMA CANADA INC.
		
	By:	 	 /s/ Steve Gannon

	Name:	 	Steve Gannon
	Title:	 	Senior Vice President, Chief Financial Officer and Treasurer
	
	HOLDINGS
	
	APTALIS MIDHOLDINGS INC.
		
	By:	 	 /s/ Steve Gannon

	Name:	 	Steve Gannon
	Title:	 	Senior Vice President, Chief Financial Officer and Treasurer

 
			
	GUARANTORS
	
	APTALIS PHARMA US, INC.
	AXCAN EU LLC
	APTALIS PHARMATECH, INC.
	SOURCECF INHALATION SYSTEMS, LLC
		
	By:	 	 /s/ Steve Gannon

	Name:	 	Steve Gannon
	Title:	 	Senior Vice President, Chief Financial Officer and Treasurer
	
	AXCAN US LLC
		
	By:	 	Aptalis Pharma Inc., its Sole Member
		
	By:	 	 /s/ Steve Gannon

	Name:	 	Steve Gannon
	Title:	 	Senior Vice President, Chief Financial Officer and Treasurer
	
	AXCAN CANADA (INVEST) ULC
		
	By:	 	 /s/ Steve Gannon

	Name:	 	Steve Gannon
	Title:	 	President, Chief Financial Officer and Treasurer

 
			
	ADMINISTRATIVE AGENT
	
	BANK OF AMERICA, N.A.
		
	By:	 	 /s/ Fani Davidson

	Name:	 	Fani Davidson
	Title:	 	Vice President

  

 ANNEX A 

OTHER GUARANTORS 
 Axcan US LLC 

Aptalis Pharma US, Inc. 
 Axcan EU LLC 

SourceCF Inhalation Systems, LLC 
 Aptalis Pharmatech, Inc. 

Axcan Canada (Invest) ULC 

 EXHIBIT I 

SUPPLEMENT NO.        dated as of
[                    ], to the GUARANTY dated as of October 4, 2013, among APTALIS MIDHOLDINGS INC., a Delaware corporation
(“Holdings”), APTALIS PHARMA INC., a Delaware corporation (the “Parent Borrower”), APTALIS PHARMA CANADA INC., a Canadian corporation (the “Co-Borrower” and, together with the Parent Borrower, the
“Borrowers,” and, each, a “Borrower”), certain other Subsidiaries of the Parent Borrower from time to time party hereto and BANK OF AMERICA, N.A., as Administrative Agent. 

A. Reference is made to (i) the Credit Agreement dated as of October 4, 2013 (as amended, amended and restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among the Parent Borrower, the Co-Borrower, Holdings, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and each lender from time to
time party thereto (collectively, the “Lenders” and individually, a “Lender”), (ii) each Secured Hedge Agreement (as defined in the Credit Agreement) and (iii) the Cash Management Obligations (as defined
in the Credit Agreement). 
 B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Credit Agreement. 
 C. The Guarantors have entered into the Guaranty in order to induce (x) the Lenders to make
Loans and the L/C Issuers to issue Letters of Credit, (y) the Hedge Banks to enter into and/or maintain Secured Hedge Agreements and (z) the Cash Management Banks to provide Cash Management Services. Section 4.12 of the Guaranty
provides that additional Restricted Subsidiaries of the Borrower may become Guarantors under the Guaranty by execution and delivery of an instrument in the form of this Supplement. The undersigned Restricted Subsidiary (the “New
Subsidiary”) is executing this Supplement in accordance with the requirements of the Credit Agreement to become a Guarantor under the Guaranty in order to induce (x) the Lenders to make additional Loans and the L/C Issuers to issue
additional Letters of Credit, (y) the Hedge Banks to enter into and/or maintain Secured Hedge Agreements and (z) the Cash Management Banks to provide Cash Management Services and as consideration for (x) Loans previously made and
Letters of Credit previously issued, (y) Secured Hedge Agreements previously entered into and/or maintained and (z) Cash Management Services previously provided. 

Accordingly, the Administrative Agent and the New Subsidiary agree as follows: 

SECTION 1. In accordance with Section 4.12 of the Guaranty, the New Subsidiary by its signature below becomes a Guarantor under the
Guaranty with 

  
 Exhibit I-1 

 
the same force and effect as if originally named therein as a Guarantor and the New Subsidiary hereby (a) agrees to all the terms and provisions of the Guaranty applicable to it as a
Guarantor and Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Guarantor thereunder are true and correct on and as of the date hereof. In furtherance of the foregoing, the New
Subsidiary, as security for the payment and performance in full of the Obligations does hereby, for the benefit of the Secured Parties, their successors and assigns, irrevocably, absolutely and unconditionally guaranty, jointly with the other
Guarantors and severally, the due and punctual payment and performance of the Obligations. Each reference to a “Guarantor” in the Guaranty shall be deemed to include the New Subsidiary. The Guaranty is hereby incorporated herein by
reference. 
 SECTION 2. The New Subsidiary represents and warrants to the Administrative Agent and the Secured Parties that this
Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws and by
general principles of equity. 
 SECTION 3. This Supplement may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Administrative Agent shall have received a counterpart of this
Supplement that bears the signature of the New Subsidiary, and the Administrative Agent has executed a counterpart hereof. Delivery of an executed signature page to this Supplement by telecopier or by electronic .pdf copy or other electronic imaging
means shall be as effective as delivery of a manually signed counterpart of this Supplement. 
 SECTION 4. Except as expressly supplemented
hereby, the Guaranty shall remain in full force and effect. 
 SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 SECTION 6. If any provision contained in this Supplement is held to be invalid,
illegal or unenforceable, the legality, validity, and enforceability of the remaining provisions contained herein and in the Guaranty shall not be affected or impaired thereby. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. 
 SECTION 7. All communications and notices hereunder shall be
in writing and given as provided in Section 4.01 of the Guaranty. 

  
 Exhibit I-2 

 SECTION 8. The New Subsidiary agrees to reimburse the Administrative Agent for its reasonable and
documented out-of-pocket expenses in connection with the execution and delivery of this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Administrative Agent to the extent required by Section 4.03 of
the Guaranty. 

  
 Exhibit I-3 

 IN WITNESS WHEREOF, the New Subsidiary and the Administrative Agent have duly executed this
Supplement to the Guaranty as of the day and year first above written. 
  

			
	[NAME OF NEW SUBSIDIARY]
		
	 By:
	 	  

		 	Name:
		 	Title:
	
	 Jurisdiction of Formation:
  

Address Of Chief Executive Office:
  

	 BANK OF AMERICA, N.A.,
as Administrative Agent

		
	 By:
	 	  

		 	 Name:

		 	 Title:

  
 Exhibit I-4EX-10.12

 Exhibit 10.12 
 Amended and Restated 
 APTALIS HOLDINGS INC. MANAGEMENT EQUITY INCENTIVE
PLAN 
  

	1.	Purpose of the Plan 

The purpose of the Aptalis Holdings Inc. Management Equity Incentive Plan (the “Plan”) is to promote the interests of the
Company and its Affiliates and stockholders by providing the key employees, directors, service providers and consultants of the Company and its Affiliates with an appropriate incentive to encourage them to continue in the employ of the Company or an
Affiliate and to improve the growth and profitability of the Company. This Plan was originally adopted on April 15, 2008 (the “Effective Date”), and was amended and restated, effective February 11, 2011. 

 

	2.	Definitions 

 As
used in this Plan, the following capitalized terms shall have the following meanings: 
 (a) “Accreting Exercise
Price” shall mean, with respect to a Premium Option, an Exercise Price that increases at a 10.00% compound rate on each anniversary of the Grant Date of such Option until the earliest to occur of (i) Exercise of such Option,
(ii) the fifth anniversary of the Grant Date of such Option (or such other date as may be specified in the applicable grant agreement), (iii) a Liquidity Event or (iv) the occurrence of a Change in Control of the Company;
provided, however, that the Exercise Price shall also cease to increase as provided herein on a pro rata portion of each outstanding Premium Option following any direct or indirect sale by the Majority Stockholder of shares of Common
Stock as follows: the number of shares of Common Stock underlying each outstanding Premium Option with respect to which the Exercise Price shall cease to increase shall be the number of shares that bears the same ratio to the total number of shares
underlying such Premium Option on the Grant Date as the total number of shares of Common Stock sold by the Majority Stockholder bears to the Initial Majority Stockholder shares (excluding for this purpose shares transferred by a Majority Stockholder
to an Affiliate of such Majority Stockholder). 
 (a) “Affiliate” shall mean, with respect to any entity, any
other corporation, organization, association, partnership, sole proprietorship or other type of entity, whether incorporated or unincorporated, directly or indirectly controlling or controlled by or under direct or indirect common control with such
entity. 
 (b) “Agreement Termination Date” shall have the meaning given to such term in the Management
Stockholders’ Agreement. 
 (c) “Aptalis” shall mean Aptalis Pharma, Inc. 

(d) “Board” shall mean the Board of Directors of the Company or any committee appointed by the Board to administer the
Plan pursuant to Section 3. 

 (e) “Cause” shall mean, when used in connection with the termination of a
Participant’s Employment, unless otherwise provided in the applicable Stock Option Grant Agreement or in the Participant’s effective employment agreement on the date of termination, the termination of the Participant’s Employment with
the Company and all Affiliates on account of (i) gross negligence or willful misconduct of the Participant in connection with the performance of his or her duties as an employee; (ii) Participant’s conviction of (or pleading guilty or
pleading no contest or nolo contendere to) a felony or comparable crime in any jurisdiction that does not classify crimes using “felony”, other than minor traffic offenses and other minor offenses that are not inconsistent with the
Company’s reasonable expectations of a person occupying the Participant’s position; (iii) the Participant’s unauthorized removal, use or disclosure of the Company’s or any Affiliate’s confidential information that could
reasonably be expected to cause harm to the Company; provided, that the Participant shall, to the extent an unauthorized removal is reasonably susceptible to cure, be given a reasonable opportunity, not to exceed thirty (30) days, after
written notice by the Company to the Participant to cure such removal of confidential information; (iv) the performance by the Participant of any act or acts of dishonesty in connection with or relating to the Company’s or its
Affiliates’ business or the misappropriation (or attempted misappropriation) of any of the Company’s or any of its Affiliates’ funds or property; (v) a material breach of any of the Participant’s obligations under any
agreement entered into between the Participant and the Company or any of its Affiliates that is material to the employment relationship between Company or any of its Affiliates and the Participant or the relationship between the Company and the
Participant as investor or prospective investor in the Company; provided, that the Participant shall, to the extent a breach is reasonably susceptible to cure, be given a reasonable opportunity, not to exceed thirty (30) days, after
written notice by the Company to the Participant to cure such breach; or (vi) a breach of the Company’s policies or procedures, which breach causes or could reasonably be expected to cause harm to the Company or its business reputation;
provided, that the Participant shall, to the extent a breach is reasonably susceptible to cure, be given a reasonable opportunity, not to exceed thirty (30) days, after written notice by the Company to the Participant to cure such
breach. 
 (f) “Change in Control” shall mean the occurrence of any of the following events after the Effective
Date: (i) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company on a consolidated basis to any Person or group of related persons for
purposes of Section 13(d) of the Exchange Act (a “Group”), together with any Affiliates thereof other than to the Majority Stockholder; (ii) the approval by the holders of the outstanding voting power of the Company of any
plan or proposal for the liquidation or dissolution of the Company; (iii) (A) any Person or Group (other than the Majority Stockholder) shall, directly or indirectly (in one transaction or a series of related transactions) become the
beneficial owner (within the meaning of Section 13(d) of the Exchange Act) of (1) Common Stock representing more than 40% of the aggregate outstanding voting power of the Company or (2) common stock representing more than 40% of the
aggregate outstanding voting power of any subsidiary of the Company whose book value accounts for 50% or more of the aggregate book value of the Company’s assets, on a consolidated basis, and in either case such Person or Group actually has the
power to vote such Common Stock or common stock in any such election and (B) the Majority Stockholder beneficially owns (within the meaning of Section 13(d) of the Exchange Act), directly or indirectly, in the aggregate a lesser percentage
of the voting power of the Company or such subsidiary than such other Person or Group; (iv) the replacement of a majority of the Board over a two-year period from the directors who constituted the Board
at the beginning of such period, 

  
 2 

 
and such replacement shall not have been approved by a vote of at least a majority of the Board then still in office who either were members of such Board at the beginning of such period or whose
election as a member of such Board was previously so approved or who were nominated by, or designees of, the Majority Stockholder; or (v) consummation of a merger or consolidation of the Company (or any subsidiary of the Company whose book
value accounts for 50% or more of the aggregate book value of the Company’s assets, on a consolidated basis) with another entity in which holders of the Common Stock of the Company immediately prior to the consummation of the transaction hold,
directly or indirectly, immediately following the consummation of the transaction, less than 50% of the common equity interest in the surviving corporation in such transaction or as a consequence of which the Majority Stockholder does not hold a
sufficient amount of voting power (or similar securities) to elect a majority of the surviving entity’s board of directors. 
 (g) “Closing Date” shall mean February 25, 2008. 
 (h)
“Code” shall mean the Internal Revenue Code of 1986, as amended. 
 (i) “Commission” shall
mean the U.S. Securities and Exchange Commission. 
 (j) “Committee” shall mean a Board Committee approved by
the Board of Directors to administer the Plan. 
 (k) “Common Stock” shall mean the common stock of the
Company, par value US $0.01 per share. 
 (l) “Company” shall mean Aptalis Holdings Inc. 

(m) “Disability” shall mean, unless otherwise provided in any applicable Stock Option Grant Agreement, effective
employment agreement or other written agreement, a permanent disability as defined in the Company’s or an Affiliate’s disability plans, or as defined from time to time by the Company, in its discretion. 

(n) “Eligible Employee” shall mean any Employee, director, service provider or consultant who, in the judgment of the
Board, should be eligible to participate in the Plan due to the services they perform on behalf of the Company or an Affiliate. 

(o) “Employment” shall mean employment with the Company or any Affiliate and shall include the provision of services as
a director or consultant for the Company or any Affiliate. “Employee” and “Employed” shall have correlative meanings. 
 (p) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (q) “Exercise” shall mean exercise of the Option in accordance with the provisions of Section 4.10. 
 (r) “Exercise Date” shall have the meaning set forth in Section 4.10 herein. 

  
 3 

 (s) “Exercise Notice” shall have the meaning set forth in Section 4.10
herein. 
 (t) “Exercise Price” shall mean the price that the Participant must pay under the Option for each
share of Common Stock as determined by the Board for each Grant and initially specified in the Stock Option Grant Agreement, subject to any increase or other adjustment that may be made following the Grant Date, in accordance with the terms of this
Plan and the applicable Stock Option Grant Agreement. 
 (u) “Fair Market Value” shall mean, as of any date:

 a. prior to the existence of a Public Market, the fair value per share of Common Stock determined by the Board
in good faith and based upon a reasonable and appropriate valuation method, taking into account any relevant factors determinative of value; or 
 b. following the occurrence of a Public Market, (i) the closing price on such day of a share of Common Stock as reported on the principal securities exchange on which shares of Common Stock are then
listed or admitted to trading or (ii) if not so reported, the average of the closing bid and ask prices on such day as reported on the National Association of Securities Dealers Automated Quotation System or (iii) if not so reported, as
furnished by any member of the National Association of Securities Dealers, Inc. (“NASD”) selected by the Board. The Fair Market Value of a share of Common Stock as of any such date on which the applicable exchange or inter-dealer
quotation system through which trading in the Common Stock regularly occurs is closed shall be the Fair Market Value determined pursuant to the preceding sentence as of the immediately preceding date on which the Common Stock is traded, a bid and
ask price is reported or a trading price is reported by any member of NASD selected by the Board. In the event that the price of a share of Common Stock shall not be so reported or furnished, the Fair Market Value shall be determined by the Board in
good faith to reflect the fair market value of a share of Common Stock. 
 (v) “Good Reason” shall mean, when
used in connection with the termination of a Participant’s Employment, unless otherwise provided in the applicable Stock Option Grant Agreement or in the Participant’s effective employment agreement on the date of termination, the
occurrence of the following without the Participant’s consent (i) any materially adverse change in the Participant’s title, (ii) any material diminution in the Participant’s authority or responsibilities, other than a change
in such Participant’s authority and responsibilities that results from becoming part of a larger organization following a Change in Control (provided that such authority and responsibilities continue to be substantially similar to those prior
to the Change in Control), (iii) any material reduction, either from one year to the next, or within the current year, in the Participant’s base salary or bonus opportunity, other than a decrease in base salary or bonus opportunity that
applies to a similarly situated class of employees of the Company or its Affiliates, or (iv) a change of the Participant’s principal place of business to a location more than fifty (50) miles from such Participant’s location on
the Grant Date, in each case other than with the Participant’s prior consent; provided that, within 60 days following the occurrence of any of the events set forth herein, the Participant shall have delivered written notice to the Company of
his or her intention to terminate his or her Employment for Good Reason, which notice specifies in reasonable detail the circumstances claimed to give rise to the Participant’s right to terminate Employment for Good Reason, and the Company
shall not have cured such circumstances within 30 days following the Company’s receipt of such notice. 

  
 4 

 (w) “Grant” shall mean a grant of an Option under the Plan evidenced by a
Stock Option Grant Agreement. 
 (x) “Grant Date” shall mean the Grant Date as defined in Section 4.3
herein. 
 (y) “Initial Majority Stockholder Shares” shall mean the shares of the Company’s common stock
issued to the Majority Stockholders on or about the Closing Date, and shall include any stock, securities or other property or interests received by the Majority Stockholders in respect of such shares in connection with any stock dividend or other
similar distribution, stock split or combination of shares, recapitalization, conversion, reorganization, consolidation, split-up, spin-off, combination, repurchase, merger, exchange of stock or other
transaction or event that affects the Company’s capital stock occurring after the date of issuance. Initial Majority Stockholder Shares sold by the Majority Stockholder to Plan Participants within the first six months following the Closing
shall not be counted for purposes of determining whether a Liquidity Event has occurred nor whether the required performance target for Performance Based Options has been achieved, and, once sold, shall not be deemed Initial Majority Stockholder
Shares for purposes of the Plan. 
 (z) An “Initial Public Offering” shall be deemed to occur on the effective
date on which at least 20% of the total then-outstanding equity interests in the Company are listed or admitted for quotation of trades on an internationally recognized stock exchange or quotation system pursuant to a registration statement (other
than a registration on Form S-4 or S-8, or any successor form or comparable form in any non-U.S. jurisdiction) filed pursuant to
the Securities Act or comparable law in any non-U.S. jurisdiction. 
 (aa)
“Liquidity Event” shall mean a transaction, which when aggregated, if applicable, with any other prior transaction (whether or not related) results in the payment to the Majority Stockholder of at least half of the Sponsor Price in
cash with respect to the Initial Majority Stockholder Shares, whether as the result of sale consideration, dividends, distributions, redemption proceeds or any other basis, as determined by the Board in good faith; and (ii) any other
transaction or series of transactions (whether or not related) determined by the Board, in its sole discretion, to constitute a “Liquidity Event”. Initial Majority Stockholder Shares sold by the Majority Stockholder to Plan participants
within the first six months following the Closing shall not be counted for purposes of determining whether a Liquidity Event has occurred and, once sold, shall not be deemed Initial Majority Stockholder Shares for purposes of the Plan. 

(bb) “Liquid Securities” shall mean securities as to which the issuer of such securities has a “public float
value”, within the meaning of Rule 100, equal to at least two times the “public float value” of Aptalis based upon the average number of shares outstanding during its 2006 fiscal year and the closing price reported on the Nasdaq
Global Select Market, as quoted on such exchange or system on March 15, 2007, as reported in The Wall Street Journal. 

  
 5 

 (cc) “Majority Stockholder” shall mean, collectively or individually as the
context requires, TPG Partners V, L.P., TPG FOF V-A, L.P., TPG FOF V-B, L.P., TPG Biotechnology Partners II, LP, and their respective affiliates. 

(dd) “Management Stockholders’ Agreement” shall mean the Axcan Holdings Inc. Management Stockholders’
Agreement to which the Plan is attached as Exhibit B, as such may be amended from time to time, or such other stockholders’ agreement as may be entered into between the Company and any Participant. 

(ee) “MoM” shall mean, following the occurrence of a Liquidity Event, a number equal to the quotient obtained by
dividing (i) the amount of cash or Liquid Securities received, directly or indirectly, by the Majority Stockholder (valued at fair market value at the time of receipt, using the principles described in respect of the term “Fair Market
Value” described above) in exchange for, or in respect of, Initial Majority Stockholder Shares and Subsequent Majority Stockholder Shares, whether as a result of or at any time prior to the occurrence of such Liquidity Event and whether as the
result of sale consideration, dividends, distributions, redemption proceeds or any other basis, as determined by the Board in good faith; by (ii) Sponsor Price and the aggregate purchase price of, and all related transaction expenses paid by
the Majority Stockholder in connection with the acquisition of, any Subsequent Majority Stockholder Shares; it being understood that the mere existence of a Public Market for the Common Stock shall not mean that any amount has been received in
exchange for or in respect of the Initial Majority Stockholder Shares or Subsequent Majority Stockholder Shares. Initial Majority Stockholder Shares sold by the Majority Stockholder to Plan participants within the first six months following the
Closing shall not be counted for purposes of determining whether the required performance target for Performance Based Options has been achieved. 
 (ff) “Non-Qualified Stock Option” shall mean an Option that is not intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Code.

 (gg) “Option” shall mean an option to purchase Common Stock granted to any Participant under the Plan. Each
Option granted under the Plan shall be a Non-Qualified Stock Option. Any references in the Plan to an “Option” will be deemed to include “Time Based Options,” “Premium Options”
and “Performance Options” unless specifically noted to the contrary. 
 (hh) “Participant” shall mean
an Eligible Employee to whom a Grant of an Option under the Plan has been made, and, where applicable, shall include Permitted Transferees. 
 (ii) “Performance Based Option” shall mean an Option with a fixed Exercise Price equal to the Fair Market Value of the underlying Common Stock on the Grant Date which vests, subject to
the Participant being Employed on the Liquidity Event, based on the achievement of MoM targets, as follows (unless otherwise specified in a Stock Option Grant Agreement): 

 

	 	(A)	if the Majority Stockholder realizes an MoM that is greater than 1.75, then one-half of the unvested and outstanding Performance
Based Options shall immediately vest and become exercisable upon occurrence of the Liquidity Event; and 

  
 6 

	 	(B)	if Majority Stockholder realizes an MoM that is greater than 2.25, then all unvested Performance Based Options shall immediately vest upon occurrence of the Liquidity
Event; and 

 Prior to any contemplated transaction which would, if consummated, result in the occurrence of a Liquidity Event,
the Board shall make a good faith estimate of the expected MoM to be achieved upon such Liquidity Event, and, to the extent the Board estimates an MoM that would result in some or all of the Performance Based Options vesting and becoming
exercisable, the Performance Based Options shall be deemed vested and exerciseable to the applicable extent immediately prior to the Liquidity Event and solely for the purpose of permitting the Participant to participate in such Liquidity Event with
the shares of Common Stock underlying such Performance Based Options. 
 (jj) “Permitted Transferee” shall have
the meaning set forth in Section 4.6. 
 (kk) “Person” means an individual, partnership, corporation,
limited liability company, unincorporated organization, trust or joint venture, or a governmental agency or political subdivision thereof. 
 (ll) A “Premium Option” shall mean an Option with an Accreting Exercise Price which vests ratably on each of the first through fifth anniversaries of the Grant Date (or such other dates
as may be specified in the applicable Stock Option Grant Agreement), subject to the Participant’s continued Employment on each such anniversary. 
 (mm) “Public Market” shall be deemed to exist for purposes of the Plan if the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act and trading regularly occurs
in such Common Stock in, on or through the facilities of securities exchanges and/or inter-dealer quotation systems in the United States (within the meaning of Section 902(n) of the Securities Act) or any designated offshore securities market
(within the meaning of Rule 902(a) of the Securities Act). 
 (nn) “Qualifying Termination” shall have the
meaning given in Section 4.4(b). 
 (oo) “Rule 100” shall mean Rule 100 of Regulation M of the Exchange
Act. 
 (pp) “Sponsor Price” shall mean $335,000,000. 

(qq) “Securities Act” shall mean the Securities Act of 1933, as amended. 

(rr) “Stock Option Grant Agreement” shall mean an agreement, substantially in the form which is attached hereto as
Appendix A, entered into by each Participant and the Company evidencing the Grant of each Option pursuant to the Plan. 

  
 7 

 (ss) “Subsequent Majority Stockholder Shares” shall mean any securities in
addition to the Initial Majority Stockholder Shares acquired after the Closing Date by the Majority Stockholder and shall include any stock, securities or other property or interests received by the Majority Stockholder in respect of such shares in
connection with any stock dividend or other similar distribution, stock split or combination of shares, recapitalization, conversion, reorganization, consolidation, split-up, spin-off, combination, repurchase,
merger, exchange of stock or other transaction that affects the Company’s capital structure occurring after the date of issuance. 
 (tt) “Time Based Option” shall mean an Option with a fixed Exercise Price equal to the Fair Market Value of the underlying Common Stock on the Grant Date which vests ratably on each of
the first through fifth anniversaries of the Grant Date (or such other dates as may be specified in the applicable Stock Option Grant Agreement), subject to the Participant’s continuous Employment through each such anniversary. 

(uu) “Transfer” shall mean any transfer, sale, assignment, gift, testamentary transfer, pledge, hypothecation or other
disposition of any interest. “Transferee” and “Transferor” shall have correlative meanings. 

(vv) “Vesting Date” shall mean the date an Option becomes exercisable in accordance with the terms of the Plan and the
applicable Stock Option Grant Agreement. 
  

	3.	Administration of the Plan 

 The Board shall administer the Plan, provided that the Board may appoint a committee to administer the Plan. In the event the Board appoints such a committee, such committee shall have the rights and
duties of the Board in respect of the Plan. No member of the Board shall participate in any decision that specifically affects such member’s interest in the Plan unless such decision also affects the Options of other Participants in the same
manner. 
 3.1 Powers of the Board. In addition to the other powers granted to the Board under the Plan, the Board
shall have the power: (a) to determine, after consulting with the Company’s chief executive officer, the Eligible Employees to whom Grants shall be made; (b) to determine the time or times when Grants shall be made and to determine,
after consulting with the Company’s chief executive officer, the number of shares of Common Stock subject to each such Grant; (c) to prescribe the form of and terms and conditions of any instrument evidencing a Grant; (d) to adopt,
amend and rescind such rules and regulations as, in its opinion, may be advisable for the administration of the Plan; (e) to construe and interpret the Plan, such rules and regulations and the instruments evidencing Grants; and (f) to make
all other determinations necessary or advisable for the administration of the Plan. 
 3.2 Determinations of the
Board. Any Grant, determination, prescription or other act of the Board shall be final and conclusively binding upon all Persons. 
 3.3 Indemnification of the Board. No member of the Board shall be liable for any action or determination made in good faith with respect to the Plan or any Grant. To the full extent
permitted by law, the Company shall indemnify and hold harmless each Person made or threatened to be made a party to any civil or criminal action or proceeding by reason of the fact that such Person, or such Person’s testator or intestate, is
or was a member of the Board to the extent such criminal or civil action or proceeding relates to the Plan. 

  
 8 

 3.4 Compliance with Applicable Law; Securities Matters; Effectiveness of Option
Exercise. Except as otherwise expressly provided in the Management Stockholders’ Agreement, the Company shall be under no obligation to effect the registration pursuant to the Securities Act of any shares of Common Stock to be issued
hereunder or to effect similar compliance under any state or foreign laws. Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing shares of Common Stock pursuant to the
exercise of any Options, unless and until the Board has determined, with advice of counsel, that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authorities and, if applicable,
the requirements of any exchange on which the shares of Common Stock are listed or traded. In addition to the terms and conditions provided herein, the Board may require that a Participant make such reasonable covenants, agreements and
representations as the Board, in its discretion, deems advisable in order to comply with any such laws, regulations or requirements. 
 The Company may, in its discretion, defer the effectiveness of an exercise of an Option hereunder or the issuance or transfer of Common Stock pursuant to any Grant to ensure compliance under federal or
state securities laws, provided that the Company shall take any commercially reasonable steps to reduce or eliminate any restrictions requiring such a period of deferral (it being understood that this proviso shall in no event obligate the
Company or its Affiliates to file a registration statement). The Company shall inform the Participant in writing of its decision to defer the effectiveness of the exercise of an Option or the issuance or transfer of Common Stock pursuant to any
Grant. During the period that the effectiveness of the exercise of an Option has been deferred, the Participant may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto. 

3.5 Inconsistent Terms. Except as otherwise expressly provided in a Stock Option Grant Agreement, in the event of a
conflict between the terms of the Plan and the terms of any Stock Option Grant Agreement, the terms of the Plan shall govern. 

3.6 Plan Term. The Board shall not Grant any Options under this Plan on or after April 15, 2018. All Options which
remain outstanding after such date shall continue to be governed by the Plan. 
  

	4.	Options 

 Subject
to adjustment as provided in Section 4.13 hereof, the Board may grant to Participants Options to purchase shares of Common Stock of the Company that, in the aggregate, do not exceed, in the aggregate, 5,033,307, of which fifty percent
(50%) shall be initially granted as Time Based Options, twenty-five percent (25%) shall be initially granted as Premium Options and twenty-five percent (25%) shall be initially granted as Performance Based Options. To the extent that
any Option granted under the Plan terminates, expires or is canceled without having been exercised, the shares of Common Stock covered by such Option shall again be available for Grant under the Plan. 

  
 9 

 4.1 Identification of Options. The Options granted under the Plan shall be
clearly identified in the Stock Option Grant Agreement as Non-Qualified Stock Options. 

4.2 Exercise Price. The Exercise Price of any Option granted under the Plan shall be such price as the Board shall
determine (provided that such Exercise Price must be at least equal to the Fair Market Value of a share of Common Stock on the Grant Date and otherwise not less than the minimum price required by law) and which shall be specified in the Stock
Option Grant Agreement. With respect to each Grant made to a Participant under the Plan, unless otherwise specified in the Stock Option Grant Agreement evidencing such Grant, fifty percent (50%) of the Option that is part of such Grant will be
a Time Based Option, twenty-five percent (25%) of the Option that is part of such Grant will be a Premium Option and twenty-five percent (25%) of the Option that is part of such Grant will be a Performance Based Option. 

4.3 Grant Date. The Grant Date of the Options shall be the date designated by the Board and specified in the Stock Option
Grant Agreement as of the date the Option is granted. 
 4.4 Vesting Date of Options. 

(a) Vesting Schedule. Each Stock Option Grant Agreement shall indicate the date(s) and/or condition(s) under which the Option(s)
granted therein shall become exercisable, subject in all cases to the Participant’s continuous Employment through the applicable Vesting Date. Unless the Committee provides otherwise, the vesting of an Option granted under this Plan may be
suspended during any leave of absence as may be set forth by Company policy, if any. 
 (b) Accelerated Vesting on a
Qualifying Termination. In the event that a Participant’s Employment with the Company is terminated by the Company without Cause or by the Participant for Good Reason during the two (2)-year period
following a Change in Control of the Company (a “Qualifying Termination”), all of the Participant’s outstanding Time Based Options and Premium Options shall immediately vest and become exercisable as of the date of such
termination of Employment. 
 4.5 Expiration of Options. All Options, whether vested or not, shall expire on the
tenth anniversary of their Grant Date unless such Options expire earlier as provided below. With respect to each Participant, such Participant’s Option(s), or portion thereof, which have not become exercisable shall expire on the date such
Participant’s Employment is terminated for any reason unless otherwise specified herein or in the Stock Option Grant Agreement. With respect to each Participant, each Participant’s Option(s), or any portion thereof, which have become
exercisable on or before the date such Participant’s Employment is terminated shall, unless otherwise provided in the Participant’s Stock Option Grant Agreement, expire on the earliest to occur of (i) the commencement of business on
the date the Participant’s Employment is terminated for Cause; (ii) 90 days after the date the Participant’s Employment is terminated for any reason other than death or Disability; (iii) one year after the date the
Participant’s Employment is terminated by reason of death or Disability; or (iv) the tenth anniversary of the Grant Date of such Option(s). Any Option, or portion thereof, that has become exercisable by a

  
 10 

 
Permitted Transferee on account of the death of a Participant shall expire one year after the date such deceased Participant’s Employment terminated by reason of death, unless otherwise
provided in the Participant’s Stock Option Grant Agreement, and any Option or portion thereof that has been transferred to a Permitted Transferee during the lifetime of a Participant shall expire in connection with the Participant’s
termination of Employment at the time set forth under this Section 4.5 as if the Option were held directly by the Participant, unless otherwise provided in the Participant’s Stock Option Grant Agreement. Notwithstanding the foregoing, the
Board may extend the period in which an Option remains exercisable, subject, to the extent applicable, to the requirements of Section 409A of the Code and in no event beyond the tenth anniversary of the Grant Date of such Option. 

4.6 Limitation on Transfer. Each Option granted to a Participant shall be exercisable only by such Participant, except that
a Participant may assign or transfer his or her rights with respect to any or all of the Options held by such Participant to: (i) such Participant’s beneficiaries or estate upon the death of the Participant and (ii) subject to the
prior written approval by the Board or an individual designated by the Board for this purpose, which approval shall not be unreasonably withheld, and subject to compliance with all applicable tax, securities and other laws, any trust or
custodianship created by the Participant, the beneficiaries of which may include only the Participant, the Participant’s spouse or the Participant’s lineal descendants (by blood or adoption), (each of (i) and (ii), a
“Permitted Transferee”). 
 4.7 Condition Precedent to Transfer of Any Option. It shall be a
condition precedent to any Transfer of any Option by any Participant that the Transferee, if not already a Participant in the Plan, shall agree prior to the Transfer in writing with the Company to be bound by the terms of the Plan, the Stock Option
Grant Agreement and the Management Stockholders’ Agreement as if he or she had been an original signatory thereto, except that any provisions of the Plan based on the Employment (or termination thereof) of the original Participant shall
continue to be based on the Employment (or termination thereof) of the original Participant. 
 4.8 Effect of Void
Transfers. In the event of any purported Transfer of any Option in violation of the provisions of the Plan, such purported Transfer shall, to the extent permitted by applicable law, be void and of no effect. 

4.9 Exercise of Options. A Participant may exercise any or all of his or her vested Options by serving an Exercise Notice
on the Company as provided in Section 4.10 herein. 
 4.10 Method of Exercise. The Option shall be exercised
by delivery of written notice to the Company’s principal office (the “Exercise Notice”), to the attention of its Secretary, on the date the Exercise Notice is deemed delivered pursuant to Section 6.5 hereof (the
“Exercise Date”). Such notice shall (a) specify the number of shares of Common Stock with respect to which the Option is being exercised, the Grant Date of such Option and the Exercise Date, (b) be signed by the
Participant, (c) prior to the Agreement Termination Date, indicate in writing that the Participant agrees to be bound by the Management Stockholders’ Agreement, and (d) if the Option is being exercised by the Participant’s
Permitted Transferee(s), such Permitted Transferee(s) shall indicate in writing that they agree to and shall be bound by the Plan and Stock 

  
 11 

 
Option Grant Agreement as if they had been original signatories thereto (as provided in Section 4.7 hereof) and, prior to the Agreement Termination Date, by the Management Stockholders’
Agreement. The Exercise Notice shall include payment in cash for an amount equal to the Exercise Price multiplied by the number of shares of Common Stock specified in such Exercise Notice or any method otherwise approved by the Board. In addition,
the Participant shall be responsible for the payment of applicable withholding and other taxes in cash (or shares of Common Stock if approved by the Board) that may become due as a result of the exercise of such Option. The Board may, in its
discretion, permit Participants to make the above-described payments in forms other than cash. In the event that a Participant’s Employment terminates due to death or Disability, a termination by the Company without Cause or by the Participant
for Good Reason, such Participant (or his or her Permitted Transferee, guardian or legal representative, if applicable) shall have the right to exercise all or any portion of his or her then-exercisable Option through cashless exercise (to satisfy
both the exercise price and any applicable withholding taxes), but only to the extent such right or the utilization of such right would not cause the Option to be subject to Section 409A of the Code and to the extent the Committee, in its good
faith judgment, determines that exercise through cashless exercise is permitted by, and will not result in any default under, any agreement to which the Company or its Affiliates is a party and that the Company and its Affiliates have sufficient
liquidity. The partial exercise of the Option, alone, shall not cause the expiration, termination or cancellation of the remaining Options. 
 4.11 Certificates of Shares. Subject to Section 3.4 herein, upon the exercise of the Options in accordance with Section 4.10 and, prior to the occurrence of the Agreement
Termination Date, upon execution of the Management Stockholders’ Agreement, in the Board’s discretion, certificates of shares of Common Stock may be issued in the name of the Participant and delivered to such Participant or the ownership
of such shares shall be otherwise recorded in a book-entry or similar system utilized by the Company as soon as practicable following the Exercise Date. Prior to the Agreement Termination Date, no shares of Common Stock shall be issued to or
recorded in the name of any Participant until such Participant agrees to be bound by and executes the Management Stockholders’ Agreement. 
 4.12 Amendment of Terms of Options. The Board may, in its discretion, amend the Plan or terms of any Option, provided, however, that any such amendment shall not impair
or adversely affect the Participants’ rights under the Plan or such Option without such Participant’s written consent. 
 4.13 Adjustment Upon Changes in Company Stock. 
 (a) Increase or
Decrease in Issued Shares Without Consideration. Subject to any required action by the stockholders of the Company, in the event of any increase or decrease in the number of issued shares of Common Stock resulting from a subdivision or
consolidation of shares of Common Stock or the payment of a stock dividend (but only on the shares of Common Stock), or any other increase or decrease in the number of such shares effected without receipt of consideration by the Company equal to the
Fair Market Value of the issued shares, the Board shall make such adjustments as the Board considers appropriate to prevent the enlargement or dilution of rights with respect to the number of shares of Common Stock subject to grant under this Plan,
the number of shares of Common Stock subject to the Options and/or the Exercise Price per share of Common Stock. 

  
 12 

 (b) Certain Mergers. Subject to any required action by the stockholders of the
Company, in the event that the Company shall be the surviving corporation in any merger or consolidation (except a merger or consolidation as a result of which the holders of shares of Common Stock receive securities of another corporation), the
Options outstanding on the date of such merger or consolidation shall pertain to and apply to the securities that a holder of the number of shares of Common Stock subject to any such Option would have received in such merger or consolidation (it
being understood that if, in connection with such transaction, the stockholders of the Company retain their shares of Common Stock and are not entitled to any additional or other consideration, the Options shall not be affected by such transaction).

 (c) Certain Other Transactions. In the event of (i) a dissolution or liquidation of the Company, (ii) a sale
of all or substantially all of the consolidated Company’s assets, (iii) a merger or consolidation involving the Company in which the Company is not the surviving corporation or (iv) a merger or consolidation involving the Company in
which the Company is the surviving corporation but the holders of shares of Common Stock receive securities of another corporation and/or other property, including cash, the Board shall either (A) provide for the exchange of each Option
outstanding immediately prior to such event (whether or not then exercisable) for an option on some or all of the property for which the shares of stock underlying such Options are exchanged and, incident thereto, make an equitable adjustment, as
determined by the Board, in the exercise price of the options, or the number or kind of securities or amount of property subject to the options and/or (B) if appropriate, cancel, effective immediately prior to such event, any outstanding Option
(whether or not exercisable or vested) and in full consideration of such cancellation pay to the Participant an amount in cash, with respect to each underlying share of Common Stock, equal to the excess of (1) the value, as determined by the
Board in its discretion, of securities and/or property (including cash) received by the holders of shares of Common Stock as a result of such event over (2) the Exercise Price, as the Board may consider appropriate to prevent dilution or
enlargement of rights. 
 (d) Other Changes. In the event of any change in the capitalization of the Company or a
corporate change other than those specifically referred to in Sections 4.13(a), (b) or (c) hereof, the Board shall, in its discretion, make such adjustments in the number and kind of shares or securities subject to Options outstanding on
the date on which such change occurs and in the per-share Exercise Price of each such Option as the Board may consider appropriate to prevent dilution or enlargement of rights. 

(e) Change in Control. Notwithstanding the foregoing, in the event of a Change in Control pursuant to which the Majority
Stockholder shall have received solely cash consideration for its Shares of Common Stock, the Company shall cause the buyer to set aside, in a segregated fund held for the benefit of the Participants then holding Options, an amount equal to the
excess, if any, of the fair market value of a Share on such Change in Control over the exercise price of such Option (such excess, if any, the “Change in Control Option Spread”) for each unvested Time-Based Option and Premium
Option, which shall otherwise continue in effect in accordance with their terms. The Participant shall be entitled to receive the Change in Control 

  
 13 

 
Option Spread at each time the unvested Time-Based Option and Premium Option vests at which time that portion of the Time-Based Option and Premium Option which vests shall be cancelled and any
unvested Time-Based Option and/or Premium Option shall continue in effect in accordance with their terms. Any Change in Control Option Spread with respect to Time-Based Options or Premium Options that are forfeited shall promptly be returned to the
Company and the Participant shall cease to have any rights with respect thereto. The Company shall use reasonable best efforts to ensure that any such segregated fund shall be held in trust in a manner that will not result in taxable income to the
Participant until actual payment of the Change in Control Option Spread is received by the Participant. 
 (f) No Other
Rights. Except as expressly provided in the Plan or the Stock Option Grant Agreements evidencing the Options, the Participants shall not have any rights by reason of (i) any subdivision or consolidation of shares of Common Stock or shares
of stock of any class, (ii) the payment of any dividend, any increase or decrease in the number of shares of Common Stock, or (iii) any dissolution, liquidation, merger or consolidation of the Company or any other corporation. Except as
expressly provided in the Plan or the Stock Option Grant Agreements evidencing the Options, no issuance by the Company of shares of Common Stock or shares of stock of any class, or securities convertible into shares of Common Stock or shares of
stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Common Stock subject to the Options or the Exercise Price of such Options. 

(g) Savings Clause. No provision of this Section 4.13 shall be given effect to the extent that such provision would cause any
tax to become due under Section 409A of the Code; provided that the Company shall use commercially reasonable efforts to put the Participants in the same position in which they would have been but for the application of this Paragraph
(f). 
 (h) Notice of Tag Along Event. The Company will notify each Participant of any transaction pursuant to which the
Participant, if he or she held the Common Stock underlying his or her Option, would be permitted to exercise tag-along rights or transfer rights pursuant Section 4(b) of the Management Stockholders’
Agreement in sufficient time to allow the Participant to exercise his or her vested and exercisable Options and participate in such transaction. 
  

	5.	Restrictive Covenants 

 (a) By accepting an award under the Plan, Participants agree to hold in strict confidence any proprietary or Confidential Information related to the Company and its Affiliates. For purposes of this
Agreement, the term “Confidential Information” shall mean all information of the Company or any of its Affiliates (in whatever form) which is not generally known to the public, including without limitation any inventions, processes,
methods of distribution, customer lists or customers’ or trade secrets. Confidential Information does not include any information that: 
  

	 	(i)	is or becomes generally available to the public other than as a result of disclosure directly or indirectly by the Participant in breach of his or her obligations;

  
 14 

	 	(ii)	is or becomes available to the Participant on a non-confidential basis from a source other than the Participant unless the
Participant knows after due inquiry that such source is prohibited from disclosing the information to the Participant by a contractual, fiduciary or other legal obligation to the Company or any of its Affiliates; or 

(b) is or was independently acquired or developed by the Participant after the termination of his or her Employment without violating the
Participant’s obligations under this Agreement or any other obligation of confidentiality the Participant may have to the Company or any of its Affiliates. 
 (c) Participants agree that the Company would likely suffer significant harm from Participants’ competing with the Company during the Participants’ Employment and for some period of time
thereafter. Accordingly, by accepting an award under the Plan, Participants agree that they will not, during their Employment and for a period of twelve (12) months, or such longer period as may be provided in the Participant’s Stock
Option Grant Agreement1, following termination of their
Employment, directly or indirectly, own, operate, manage, consult with, control, participate in the management of control of, be employed by, maintain or continue any interest whatsoever in, any Person, in any jurisdiction in which the Company then
does business, that (i) designs, manufactures, distributes, markets or promotes pharmaceutical products in the field of gastroenterology or (ii) is engaged in any other business in which the Company is engaged at the time of the
termination (each of (i) and (ii), the “Restricted Field”), without the Company’s written consent. Notwithstanding the foregoing, the Participant shall have the right to seek employment with a Person engaged in the
Restricted Field if (i) such Person’s total activities and revenues in the Restricted Field represent less than twenty percent (20%) of such Person’s total activities and revenues and (ii) the Participant is not hired to
manage, oversee or be in any way associated with, and does not manage, oversee or become associated with, the Restricted Field. The Participant shall, however, not be in default under this Section 5 (a) solely by virtue of the Participant
holding, strictly for portfolio purposes and as a passive investor, no more than one percent (1%) of the issued and outstanding shares of, or any other interest in, any body corporate or other entity whose shares are listed on any widely
recognized stock exchange, the business of which is in the Restricted Field or is otherwise in competition, in whole or in part, with the business of the Company. 
 (d) Participants agree that the Company would likely suffer significant harm from Participants’ solicitation of employees, customers, suppliers or vendors of the Company during the Participants’
Employment and for some period of time thereafter. Accordingly, by accepting an award under the Plan, Participants agree that they will not, during their Employment and for a period of twelve (12) months, or such longer period as may be
provided in the Participant’s Stock Option Grant Agreement2, following termination of their Employment, whether on their own behalf or on behalf of any other Person, either directly or indirectly (i) hire, solicit, induce, persuade, or entice, or endeavor to
solicit, induce, persuade, or entice any person who is then employed by or otherwise engaged to perform services for the Company or any of its Affiliates to leave that employment or cease performing those services or (ii) solicit, induce,

  

	1 	Grant agreement of certain senior executives to provide for an 18-month restricted period. 

	2 	Grant agreement of certain senior executives to provide for an 18-month restricted period. 

  
 15 

 
persuade, or entice, or endeavor to solicit, induce, persuade, or entice any Person who is then a customer, supplier, or vendor of the Company or any of its Affiliates to cease being a customer,
supplier, or vendor of the Company or any of its Affiliates or to divert all or any part of such Person’s business from the Company or any of its Affiliates. 
 (e) In the event that either the Participant’s Employment with the Company is terminated for Cause or the Participant violates any of the restrictive covenants set forth in this Section 5, in
either case following the Agreement Termination Date, then the Participant shall be obligated to pay to the Company, in addition to all other rights and remedies the Company may have, an amount equal to the amount which the Participant will be
required to recognize in income for U.S. federal income tax purposes as a result of such Participant’s exercise of Options at any time following, or within one year prior to, the date of termination of his or her Employment. 

 

	6.	Miscellaneous 

 6.1 Rights as Stockholders. The Participants shall not have any rights as stockholders with respect to any shares of Common Stock covered by or relating to the Options granted pursuant to
the Plan until the date the Participants become the registered owners of such shares. Except as otherwise expressly provided in Sections 4.12 and 4.13 hereof, no adjustment to the Options shall be made for dividends or other rights for which the
record date occurs prior to the date such stock certificate is issued. 
 6.2 No Special Employment Rights.
Nothing contained in the Plan shall confer upon the Participants any right with respect to the continuation of their Employment or interfere in any way with the right of the Company or an Affiliate, subject to the terms of any separate Employment
agreement to the contrary, at any time to terminate such Employment or to increase or decrease the compensation of the Participants from the rate in existence at the time of the grant of any Option. 

6.3 No Obligation to Exercise. The Grant to the Participants of the Options shall impose no obligation upon the
Participants to exercise such Options. 
 6.4 Restrictions on Common Stock. The rights and obligations of the
Participants with respect to Common Stock obtained through the exercise of any Option provided in the Plan shall be governed by the terms and conditions of the Management Stockholders’ Agreement. 

6.5 Notices. Each notice and other communication hereunder shall be in writing and shall be given and shall be deemed to
have been duly given on the date it is delivered in person, on the next business day if delivered by overnight mail or other reputable overnight courier, or on the third business day if sent by registered mail, return receipt requested, to the
parties as follows: 
 If to the Participant: 
 To the most recent address shown on records of the Company or its Affiliate. 

  
 16 

 If to the Company: 

Aptalis Holdings Inc. 
 c/o Aptalis Pharma Inc. 
 100 Somerset Corp. Blvd. 

Bridgewater, NJ 08807 
 Attention: General Counsel 
 With a copy to: 

Ropes & Gray LLP 
 Prudential Tower 
 800 Boylston Street 

Boston, Massachusetts 02199 
 Attention: William Shields 

                  Loretta R. Richard 

or to such other address as any party may have furnished to the other in writing in accordance herewith. 

6.6 Descriptive Headings. The headings in the Plan are for convenience of reference only and shall not limit or otherwise
affect the meaning of the terms contained herein. 
 6.7 Severability. In the event that any one or more of the
provisions, subdivisions, words, clauses, phrases or sentences contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of
any such provision, subdivision, word, clause, phrase or sentence in every other respect and of the remaining provisions, subdivisions, words, clauses, phrases or sentences hereof shall not in any way be impaired, it being intended that all rights,
powers and privileges of the Company and Participants shall be enforceable to the fullest extent permitted by law. 
 6.8
Governing Law. The Plan shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to the provisions governing conflict of laws. 

  
 17 

 APPENDIX A 
 FORM OF STOCK OPTION GRANT AGREEMENT 
 (Non-Qualified Stock Options)

 THIS AGREEMENT, made as of the          day of
                ,              between Aptalis Holdings Inc. (the “Company”)
and                                  (the “Participant”).

 WHEREAS, the Company has adopted and maintains the Aptalis Holdings Inc. Management Equity Incentive Plan (the
“Plan”) to promote the interests of the Company and its Affiliates and stockholders by providing the key employees, directors, service providers and consultants of the Company and its Affiliates and others with an appropriate
incentive to encourage them to continue in the employ of and provide services for the Company or its Affiliates and to improve the growth and profitability of the Company; 
 WHEREAS, the Plan provides for the Grant to Participants in the Plan of Non-Qualified Stock Options to purchase shares of Common Stock of the Company. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto hereby agree as
follows: 
 1. Grant of Options. Pursuant to, and subject to, the terms and conditions set forth herein and in the Plan,
the Company hereby grants to the Participant a NON-QUALIFIED STOCK OPTION (the “Option”) with respect to              shares
of Common Stock of the Company. Fifty percent (50%) of the Option (representing an Option to purchase              shares) will be a Time Based Option, twenty-five percent
(25%) of the Option (representing an Option to purchase              shares) will be a Premium Option and twenty-five percent (25%) of the Option (representing an Option to
purchase              shares) will be a Performance Based Option. 
 2. Grant Date. The Grant Date of the Option hereby granted is                     .

 3. Incorporation of Plan. All terms, conditions and restrictions of the Plan are incorporated herein and made part
hereof as if stated herein. All capitalized terms used and not defined herein shall have the meaning given to such terms in the Plan. 
 4. Exercise Price. The exercise price of each share of Common Stock underlying the Option hereby granted is
$                . The portion of the Option that is a Premium Option will have an Accreting Exercise Price in accordance with the Plan. 

5. Vesting Date. The Option shall become vested and exercisable as follows: 

a. With respect to the portion of the Option that is a Time Based Option, twenty percent (20%) of such Time Based Option shall vest
and become exercisable, if at all, on each of the first through fifth anniversaries of the Grant Date; 

 b. With respect to the portion of the Option that is a Premium Option, twenty percent
(20%) of such Premium Option shall vest and become exercisable, if at all, on each of the first through fifth anniversaries of the Grant Date; and 
 c. With respect to the portion of the Option that is a Performance Based Option, (a) fifty percent (50%) of such Performance Based Option shall vest and become exercisable, if at all, upon the
occurrence of the Liquidity Event, provided that the Majority Stockholder realizes an MoM that is greater than 1.75, and (b) fifty percent (50%) of such Performance Based Option shall vest and become exercisable, if at all, upon the
occurrence of the Liquidity Event, provided that the Majority Stockholder realizes an MoM that is greater than 2.25; 
 subject in each case to
the Participant’s continued Employment on each such anniversary or the Liquidity Event, as applicable. Notwithstanding the foregoing, in the event of a Qualifying Termination of the Participant’s Employment, all of the Participant’s
Time Based Options and Premium Options shall immediately vest and become exercisable as of the date of such termination of Employment 
 6. Expiration Date. Subject to the provisions of the Plan, with respect to the Option or any portion thereof which has not become vested and exercisable, the Option shall expire on the date the
Participant’s Employment is terminated for any reason, and with respect to any Option or any portion thereof which has become exercisable, the Option shall expire on the earliest to occur of (i) the commencement of business on the date the
Participant’s Employment is terminated for Cause; (ii) 90 days after the date the Participant’s Employment is terminated for any reason other than death or Disability; (iii) one year after the date the Participant’s
Employment is terminated by reason of death or Disability; or (iv) the tenth anniversary of the Grant Date. For the avoidance of doubt, the Option, or portion thereof, that has become exercisable by a Permitted Transferee on account of the
death of a Participant shall expire one year after the date such deceased Participant’s Employment terminated by reason of death, and the Option or portion thereof that has been transferred to a Permitted Transferee during the lifetime of a
Participant shall expire in connection with the Participant’s termination of Employment at the time set forth under this Section 6 as if the Option were held directly by the Participant. In no event shall the Option remain outstanding for
more than ten years following the Grant Date. Notwithstanding the foregoing, the Board may extend the period in which an Option remains exercisable, subject, to the extent applicable, to the requirements of Section 409A of the Code and in no
event beyond the tenth anniversary of the Grant Date of such Option. 
 7. Construction of Agreement. Any provision of
this Agreement (or portion thereof) which is deemed invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this section, be ineffective to the extent of such invalidity, illegality or unenforceability,
without affecting in any way the remaining provisions thereof in such jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any covenant should be deemed invalid,
illegal or unenforceable because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable. No
waiver of any provision or violation of this 

  
 2 

 
Agreement by the Company shall be implied by the Company’s forbearance or failure to take action. No provision of this Agreement shall be given effect to the extent that such provision would
cause any tax to become due under Section 409A of the Code; provided that the Company shall use commercially reasonable efforts to put the Participants in the same position in which they would have been but for the application of this
Paragraph 7. 
 8. Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party
hereto upon any breach or default of any party under this Agreement, shall impair any such right, power or remedy of such party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any
similar breach or default thereafter occurring nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party or any provisions or conditions of this Agreement, shall be in writing and shall be effective only to the extent specifically
set forth in such writing. 
 9. Limitation on Transfer. Except as otherwise permitted by the Board, the Option shall be
exercisable only by the Participant or the Participant’s Permitted Transferee(s), as determined in accordance with the terms of the Plan (including without limitation the requirement that the Participant obtain the prior written approval by the
Board of any proposed Transfer to a Permitted Transferee during the lifetime of the Participant). Each Permitted Transferee shall be subject to all the restrictions, obligations, and responsibilities as apply to the Participant under the Plan and
this Stock Option Grant Agreement and shall be entitled to all the rights of the Participant under the Plan, provided that in respect of any Permitted Transferee which is a trust or custodianship, the Option shall become exercisable and/or
expire based on the Employment and termination of Employment of the Participant and, absent prior written approval by the Board, no Participant may Transfer any Option (including without limitation to a Permitted Transferee) following the
termination of Employment of the Participant. All shares of Common Stock obtained pursuant to the Option granted herein shall not be transferred except as provided in the Management Stockholders’ Agreement. 

10. Restrictive Covenants. By accepting the Option, Participant hereby acknowledges the Participant has read and understood and
agrees to be bound by the obligations set forth in Section 5 of the Plan. 
 11. Integration. This Agreement, and
the other documents referred to herein or delivered pursuant hereto which form a part hereof contain the entire understanding of the parties with respect to its subject matter. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein and in the Plan. This Agreement, including without limitation the Plan, supersedes all prior agreements and understandings
between the parties with respect to its subject matter, including without limitation, any provision in such prior agreement or understanding, including without limitation any change in control agreement, that provides for the acceleration or waiver
of any time periods, conditions or contingencies relating to the exercise or realization of, or lapse of restrictions under, any outstanding equity award held by the Participant. 

  
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 12. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the same instrument. 
 13. Governing Law.
This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to the provisions governing conflict of laws. 

14. Participant Acknowledgment. The Participant hereby acknowledges receipt of a copy of the Plan. The Participant hereby
acknowledges that all decisions, determinations and interpretations of the Board in respect of the Plan, this Agreement and the Option shall be final and conclusive and that this Agreement, the Plan and the Management Stockholders’ Agreement
supersede any and all other agreements, including without limitation any change in control agreement, as they relate to the subject matter of this Agreement. The Participant further acknowledges that, prior to the Agreement Termination Date, no
exercise of the Option or any portion thereof shall be effective unless and until the Participant has executed the Management Stockholders’ Agreement and the Participant hereby agrees to be bound thereby. 

15. Personal Information. Personal information required to administer the Plan will be collected by means of information provided
by the employer of a Participant. Consent of a Participant for collection, use and disclosure (including to a third party service provider) of such personal information shall be deemed to have been granted when a Participant receives Options under
the Plan. The collection, use and disclosure of personal information of a Participant in connection with participation in the Plan shall be restricted to the administration of the Plan and any third party service provider shall be bound by a privacy
undertaking with respect to such information. 
 16. Management Stockholders Agreement. For greater certainty of the
Management Stockholder Agreement (the “MSA”) which shall be entered into by the Management Stockholder as a condition to the issuance of any shares of Common Stock by the Company, the principal purpose of the Call Right and the Put
Right discussed in paragraphs 3(b) and 3(c) respectively of the MSA, is to provide the Management Stockholder or Transferee, as applicable, with a market for their Shares in the circumstances described in the MSA. For the purposes of this paragraph
16 only, all capitalized terms shall have the meaning given to such terms in the MSA. 

  
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 IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its duly
authorized officer and said Participant has hereunto signed this Agreement on his own behalf, thereby representing that he has carefully read and understands, and agrees to be bound by, this Agreement, the Plan and the Management Stockholders’
Agreement as of the day and year first written above. 
  

			
	Aptalis Holdings Inc.
	
	 
	By:	 	Frank A.G.M. Verwiel, M.D.
	Title: President and Chief Executive Officer

  

			
	 
	Participant’s name

  
 5

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