Document:

TWI 03.31.2015 EX 10.1

Exhibit 10.1 
TRADEMARK LICENSE AGREEMENT
(AMERICAS - GOODYEAR BRAND)
THIS TRADEMARK LICENSE AGREEMENT (this “Agreement”), dated April 1, 2011 (the “Effective Date”), is made and entered into by and among The Goodyear Tire & Rubber Company, an Ohio corporation (“Goodyear”), Goodyear Canada Inc., an Ontario corporation and a subsidiary of Goodyear (“Goodyear Canada”), on the one hand, and Titan International, Inc., an Illinois corporation (“Licensee”), on the other hand. Each of Goodyear and Goodyear Canada are sometimes referred to herein as a “Licensor” and collectively as the “Licensors.”  Each Licensor and Licensee is sometimes referred to herein as a “Party” and collectively as the “Parties.” 
RECITALS
		
	A.
	Goodyear and Titan Tire Corporation, an Illinois corporation (“Buyer”), are parties to the Purchase Agreement - Latin America, dated as of December 13, 2010, by and among Goodyear and Buyer (the “Purchase Agreement”);

		
	B.
	Pursuant to the Purchase Agreement, Goodyear or an Affiliate sold to Buyer certain assets located in South America associated with the manufacture, distribution and sale of Farm Tires;

		
	C.
	On December  28, 2005, Goodyear and Buyer entered into a Trademark  License Agreement under which Goodyear granted Buyer a license to use certain marks in connection with the manufacture, distribution and sale of farm tires in North America (the “2005 Trademark License”);

		
	D.
	The Parties desire to terminate and supersede the 2005 Trademark License and the Bilateral Supply Agreement dated as of December 28, 2005, as amended and restated, between Goodyear and Buyer (the “2005 Supply Agreement”).

		
	E.
	Licensors together own all of the Licensed Marks identified on Exhibit A-1 and Exhibit A-2 and own or otherwise have the right to license the Licensed Marks identified on Exhibit A-3 attached hereto, which Licensed Marks have been used by Licensors in connection with the Business;

		
	F.
	Pursuant to the terms and conditions of the Purchase Agreement, Goodyear and Licensee are obligated to execute and deliver this Agreement; and

		
	G.
	With this Agreement, Licensee has agreed to acquire and Licensors have agreed to grant a license to use the Licensed Marks in North America and South America, subject to the tern1s and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual promises and obligations contained herein, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

ARTICLE 1
DEFINITIONS
		
	1.1
	 Terms and Conditions. Terms used in this Agreement shall have the following meanings:

“2005 Trademark License” has the meaning set forth in the Recitals. “2005 Supply Agreement” has the meaning set forth in the Recitals.
“Affiliate” means, with respect to any person, at the time in question, any other person controlling, controlled by or under common control with the person. For purposes of this definition, “control” (including, but not limited to, the terms “controlling,” “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise.
“Business” means the manufacture, distribution and sale of Farm Tires in the jurisdictions listed on Exhibit B by Goodyear and its Affiliates.
“Business Day” means any day other than Saturday or Sunday on which commercial banks are not required or authorized by law to close in the City of New York, State of New York, USA.
“Buyer” has the meaning set forth in the Recitals.
“Change of Control” means the occurrence of any of the following events unless Licensors consent in advance: (1) a Person acquires direct or indirect beneficial ownership (as defined in the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder) of more than fifty (50%) percent of the outstanding voting securities of Licensee or its direct or indirect parent (each, a “Parent”), or (2) the shareholders of Licensee approve, or Licensee otherwise effects, enters into or approves, (A) a merger or consolidation of Licensee with or into any other Person, (B) an agreement for the sale or disposition (in one transaction or a series of transactions) of all or substantially all of the assets of Licensee or Parent, (C) a plan of complete liquidation of Licensee or Parent or (D) any transaction similar to any of the foregoing, other than, in the case of both (2)(A) and (2)(B) above, a merger, consolidation or sale that would result in the voting securities of Licensee or Parent outstanding immediately prior thereto controlling or continuing to represent, directly or indirectly, either by remaining outstanding or by being converted into equity securities of the surviving Person, at least fifty percent (50%) of the total outstanding voting securities of Licensee, Parent or the surviving Person outstanding immediately after such transaction.
“Confidential Information” means proprietary information of the Parties related to the Licensed Marks or the manufacture, sale or delivery of Licensed Products or which the providing Party can demonstrate was provided in connection with this Agreement, including but not limited to: (i) price, quantity and technical information relating to products, equipment and manufacturing methods of the Parties; (ii) the Parties’ manufacturing and other costs; (iii) either Party ‘s business plans, strategies and projections, and all other business statistics; (iv) any list of customers of a Party; (v) passwords and other security information permitting access to either Party’s data 

2
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

processing systems; (vi) business and logistics methods and procedures used by the Parties; (vii) other data processing systems information that the Parties have exchanged during the negotiation of, and will later exchange during the term of, this Agreement; and (viii) trade secrets, know-how, drawings, designs, data, inventions, processes, procedures, formulas, specifications, and the like.
Confidential Information does not include information: (i) the recipient’s files and records establish as having been in its possession at the time the information was received; (ii) which is publicly available at the time it is disclosed to the recipient by the discloser or which later becomes so available other than as a result of the recipient’s action or inaction; (iii) which becomes known to the recipient from a third party who has the right to disclose such information without breach of an obligation of trust or confidence to the discloser; (iv) which is disclosed by the recipient with the other party’s prior written approval; or (v) which is required to be disclosed under applicable Law, provided that the Party subject to the requirement of disclosure complies with Section 13.2.
“Customer Inquiries” has the meaning set forth in Section 8.8. “Earned Royalties” has the meaning set forth in Section 4.3. 
“Effective Date” has the meaning set forth in the first paragraph.
“Farm Tires” means the tires described in Goodyear’s Farm Tire Handbook 2003 (excluding the specific tires set forth on Schedule A of the Purchase Agreement) and the additional tires listed on Schedule B of the Purchase Agreement. Copies of those schedules are attached hereto as Exhibit C.
“Farm Tire Supply Agreement (Colombia)” means the Farm Tire Supply Agreement (Colombia) entered into on _____________, 2010, between [Goodyear] and [Licensee], under which Goodyear or its Affiliates supply Farm Tires to [Licensee].
“Force Majeure” has the meaning set forth in Section 16.1. 
“Goodyear” has the meaning set forth in the first paragraph. 
“Goodyear Canada” has the meaning set forth in the first paragraph.
“Goodyear Trademarks” means those Licensed Marks identified on Exhibit A-1 and Exhibit A-2 consisting of any one or more of:
		
	(i)
	the word GOODYEAR, 

		
	(ii)
	the winged foot design, or 

		
	(iii)
	the blimp design.

“Governmental Authority” means any federal, state, local or foreign government, governmental, regulatory or administrative authority, agency or commission, or any court, tribunal or judicial or arbitral body of the United States or any country.
“Infringement” has the meaning set forth in Section 7.1(b). 

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Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

“Initial Term” has the meaning set forth in Section 3.1.
“Law” means any law, rule, regulation, order or other requirement of or issued by any Governmental Authority, in each case as from time to time amended or replaced.
“Licensed Marks” means all of the trademarks identified on Exhibit A-1 and Exhibit A-2, which exhibits may be amended from time to time as provided herein, the Unregistered Marks and any and all names, symbols, designs and other insignia which include the Licensed Marks identified in Exhibit A-1 and Exhibit A-2 or the Unregistered Marks identified in Exhibit A-3 that are embedded in the tire molds transferred to Licensee under the Purchase Agreement and the Asset Purchase Agreement, dated as of February 28, 2005, by and among the Goodyear Parties (as defined therein) and Licensee. For the avoidance of doubt, trademarks owned by Licensee or its Affiliates are not Licensed Marks.
“Licensed Products” means Farm Tires that (a) bear one or more Licensed Marks, and/or (b) are packaged, advertised, promoted, or marketed in conjunction with the Licensed Marks such that a reasonable purchaser would understand the Farm Tires to be those offered by, endorsed by, affiliated with, or sponsored by Licensors; provided, however, that “Licensed Products” does not include any product or service, or portion of a product, that happens to be combined with Farm Tires (by way of example and not limitation, Licensed Products does not include the wheel on which the Farm Tire is mounted and does not include the services of mounting the Farm Tire on the wheel, but would only include the Farm Tire).  For the avoidance of doubt, some of the products identified in the column “Application/Registration” on Exhibit A-1 and Exhibit A-2 are not Licensed Products.
“Licensed Territory” means, for each Licensed Mark, only the country or countries in which such Licensed Mark is currently registered and/or filed, as identified on Exhibit A-1 or Exhibit A-2.
“Licensee” has the meaning set forth in the first paragraph.
“Licensee-Made Licensed Products” means Licensed Products manufactured by the Licensee or its Affiliates.
“Licensee Permitted Users” has the meaning set forth in Section 2.5. 
“Licensor” or “Licensors” has the meaning set forth in the first paragraph.
“Licensor-Made Licensed Products” means Licensed Products manufactured by a Licensor or its Affiliates.
“Minimum Guarantee” has the meaning set forth in Section 4.4.
“Net Sales” means the gross amount invoiced to customers by Licensee or its Affiliates (but excluding the gross amount invoiced to a Licensor or its Affiliates) for sales of the Licensed Products in the Licensed Territory, less only (a) returns actually made and credited as properly supported by documentation  (provided, however, that ***, (b) the deductions described in Exhibit D hereto, and (c) the gross amount invoiced to customers by Licensee or its Affiliates for 

4
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

sales of the Licensed Products bearing the Unregistered Marks and no other Licensed Marks.
“Notice” has the meaning set forth in Section 17.1.
“Other Intellectual Property” has the meaning set forth in Section 2.6. 
“Party” or “Parties” has the meaning set forth in the first paragraph. 
“Pre-Paid Royalty” has the meaning set forth in Section 4.1. 
“Purchase Agreement” has the meaning set forth in the Recitals.
“Related Agreements” has the meaning set forth in the Purchase Agreement. 
“Renewal Term” has the meaning set forth in Section 3.4.
“Return Rate” has the meaning set forth in Section 8.6.
“Tax” or “Taxes” means any federal, state, local, or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Tax Code §59A), customs duties, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not.
“Taxing Authority” means any applicable Governmental Authority responsible for the imposition of Taxes.
“Technology Agreement” means the Americas Farm Patent and Know-How License Agreement between Goodyear and Licensee dated as of __________, 2010.
“Term” has the meaning set forth in Section 3.4.
“Unregistered Marks” means all of the trademarks identified on Exhibit A-3, which exhibit may be amended from time to time as provided herein.
		
	1.2
	  Other Definitions.  Capitalized terms used and not otherwise defined in this Agreement shall have the definition set forth in the Purchase Agreement.

5
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

ARTICLE 2

TERMS AND CONDITIONS
GRANT OF LICENSE
		
	2.1
	 Grant.

		
	(a)
	Nature and Scope of Grant

		
	(i)
	Goodyear grants to Licensee the right to use the trademarks identified on Exhibit A-1 and Exhibit A-3 in the applicable Licensed Territory upon or in relation to the Licensed Products and to grant sublicenses to Licensee’s Affiliates in the applicable Licensed Territory, provided that Licensee shall cause all such Affiliates granted a sublicense hereunder to comply with the provisions herein.

		
	(ii)
	Goodyear Canada grants to Licensee the right to use the trademarks identified on Exhibit A-2 in the applicable Licensed Territory upon or in relation to the Licensed Products and to grant sublicenses to Licensee’s Affiliates in the applicable Licensed Territory, provided that Licensee shall cause all such Affiliates granted a sublicense hereunder to comply with the provisions herein.

		
	(iii)
	Licensors covenant that they shall not use the Licensed Marks in the Licensed Territory for the Licensed Products, and that any use is limited solely as set forth in Section 2.12.

		
	(iv)
	The grant of rights in the Licensed Marks is transferable as permitted by this Agreement.

		
	(v)
	Licensee may engage subcontractors in connection with the operations of its business and, to the extent the use of such subcontractors involves use of the Licensed Marks, the grant of rights in Section 2.1(a)(i) and (ii) includes the use by such subcontractors.  Such use shall be under the supervision and control of Licensee and Licensee shall remain responsible to Licensors for proper use of the Licensed Marks by such subcontractors. Use by subcontractors is not a sublicense and is not use by an Affiliate.

		
	(vi)
	Licensors acknowledges that this grant of rights in the Licensed Marks is in connection with, and is material to, Licensee’s purchase of the Business. Each Licensor represents that this Agreement does not conflict with any existing security agreement or credit agreement to which it is a party.  If Licensors enter into a new credit facility or materially amend their existing credit facility, they shall ask the lenders to acknowledge in the new credit agreement or amendment that the lenders will not foreclose on or otherwise affect Licensee’s rights with respect to this Agreement in connection with any enforcement of the lenders’ rights if Licensee is in compliance with all material provisions of this Agreement.

6
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

The grant of rights in this Section 2.1 is in addition to the permitted uses set forth elsewhere in this Agreement, including Sections 2.4 and 2.5.
		
	(a)
	All rights not specifically granted to Licensee under this Section 2.1 are reserved by Licensors.  Subject to Section 2.1(a)(vi), nothing in this Agreement shall restrict Licensors’ current or future commitments under secured lending or financing arrangements pledging the Licensed Marks as collateral under such obligations and Licensee acknowledges that the Licensed Marks are subject to liens and encumbrances, the terms of which may be amended from time to time, arising as a result of such obligations.

		
	2.2
	2005 Trademark License; 2005 Supply Agreement. The Parties acknowledge and agree that this Agreement terminates and supersedes the 2005 Trademark License and the 2005 Supply Agreement.

		
	2.3
	Specifically Prohibited Uses of the Licensed Marks. Unless expressly authorized by this Agreement, Licensee will not use any of the Licensed Marks or any confusingly similar terms or marks:

		
	(b)
	in any corporate names, trade names, business names, domain names or URLs,

		
	(c)
	in connection with any service or repair other than the service or repair to the Licensed Products bearing the applicable Licensed Marks, or

		
	(d)
	in the white pages of telephone and other business directories.

		
	2.4
	Permitted Use of the Licensed Marks in Advertising and Distribution.  Subject to Sections 2.3 and 8.3, Licensee shall be entitled to use the Licensed Marks in the Licensed Territory to advertise, describe, solicit, demonstrate, sell, distribute, manufacture, package and otherwise promote the sale, repair and service of the Licensed Products in all media now known or later developed. At no time shall Licensee use the Goodyear Trademarks without the descriptive terms comprising the Licensed Products (e.g., “Goodyear Farm Tires”), provided however that Licensee shall not use the term “Goodyear Tires.”

		
	2.5
	Use by Persons in the Distribution Network. In addition to the limited right to sublicense granted to Licensee in Section 2.1 and subject to the terms of this Section 2.5, Licensee’s dealers, distributors, resellers and others in Licensee’s distribution network of the Licensed Products (together with Licensee’s Affiliates, the “Licensee Permitted Users”) may use the Licensed Marks in connection with the sale, repair, service, promotion, marketing, advertising, and distribution of the Licensed Products within the applicable Licensed Territory during the Term; provided that, none of Licensee’s Affiliates or any other Licensee Permitted User may use any Licensed Mark in a way that Licensee would be prohibited from using such Licensed Mark pursuant to the terms of this Agreement.

		
	2.6
	[Intentionally Omitted]

2.7    No Other Right To Licensed Marks or Licensors’ other Intellectual Property.  This Agreement conveys to Licensee no rights with respect to the Licensed Marks other than as 

7
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

specifically set forth herein. Licensee acknowledges that Licensors are the owners of certain trademarks, trade dress, copyrights, design patents, utility patents, trade secrets and other intellectual property rights that are not included in the Licensed Marks (“Other Intellectual Property”).  Licensee understands and agrees that this Agreement does not give Licensee authorization to use the Other Intellectual Property in any manner whatsoever, nor does this Agreement grant to Licensee rights to the intellectual property of any other party.

		
	2.8 
	Renewal and Maintenance Costs.  Licensors shall maintain the registration of the Licensed Marks that are in existence on the Effective Date during the Term at Licensors’ sole cost and expense. Notwithstanding the terms of this Section 2.8, Licensee shall reimburse Licensors for governmental fees and reasonable legal expenses Licensors incur to maintain or renew any Licensed Mark exclusively related to the Business.  If, during the Term of this Agreement, a Licensor elects to cease its use of a Licensed Mark and determines to let the registration for such Licensed Mark lapse or to cease paying continuation, renewal or similar fees with respect to such Licensed Mark, Goodyear, on behalf of the Licensors, shall notify Licensee in writing of such determination (prior to the expiration or lapse of the registration of such Licensed Mark) and, for a period of 30 days following receipt of such notice, Licensee shall have the right to notify Goodyear in writing of Licensee’s desire to have such Licensed Mark assigned to Licensee, at Licensee’s expense but for no additional consideration to Licensors.  From and after Licensee’s receipt of notice from Goodyear as contemplated above, Licensors shall have no further obligation to maintain or renew the registration for such Licensed Mark and Licensee shall be responsible for all costs associated with its continuing use of such Licensed Mark.  Licensee shall provide Licensors with such reasonable assistance as Licensors may require in renewing and maintaining the Licensed Marks at Licensee’s expense.

		
	2.9
	Licensee’s Use of Own Name. Nothing in this Agreement limits the right of Licensee to use its own name on or in connection with the Licensee-Made Licensed Products so as to accurately identify itself as the manufacturer of the Licensed Products, including but not limited to the phrase “MADE BY TITAN” or “MANUFACTURED BY TITAN” or other such accurate description of source.

		
	2.10 
	No Grant of Conflicting Rights. Subject to: 

		
	(a)
	the rights reserved under Section 2.12;

		
	(b)
	the authorization granted to ANLAS Anadolu Lastik San ve Tic AS and Alliance Tire Company pursuant to off take agreements under which such entities provide tires bearing the Licensed Marks only to Goodyear and its Affiliates, as described with particularity on Exhibit E hereto; and

		
	(c)
	the rights, including security interests, of persons that have heretofore provided, or that may, from time to time after the date hereof, provide financing to one or more of the Licensors,

        
each Licensor agrees that it will not, during the Term hereof, grant any license to any 

8
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

person to use the Licensed Marks with respect to Licensed Products (or products identical to the Licensed Products) in the Licensed Territory.
		
	2.11
	[Intentionally Omitted]

		
	2.12 
	Licensors’ Rights within the Licensed Territory. Except for tires owned by Licensors or their Affiliates on the Closing Date, and except for tires mounted on original equipment vehicles outside the Licensed Territory or tires manufactured within the Licensed Territory for sale outside the Licensed Territory, tires furnished or sold by Licensors to Licensee or its Affiliates under the Farm Tire Supply Agreement (Colombia) and tires the ownership or sale of which is permitted under the Purchase Agreement, Licensors agree that they possess no right to sell the Licensed Products (a) themselves, (b) to exporters, or (c) directly or indirectly to others for resale or reshipment within the Licensed Territory. If Licensors or their Affiliates become aware that any party to whom they sell the Licensed Products intends to sell or ship, or is selling or shipping directly or indirectly, the Licensed Products into the Licensed Territory, Licensors shall take all necessary actions which are legally permissible to prevent such sales or shipments.

		
	2.13 
	Licensee’s Rights Outside Licensed Territory.  Except for tires mounted on original equipment vehicles within the Licensed Territory, Licensee agrees that it possesses no rights to sell the Licensed Products (a) itself, (b) to exporters, or (c) directly or indirectly to others for resale or reshipment outside the Licensed Territory. If Licensee becomes aware that any party to whom it sells the Licensed Products intends to sell or ship, or is selling or shipping directly or indirectly, the Licensed Products outside of the Licensed Territory, Licensee shall take all necessary actions which are legally permissible to prevent such sales or shipments.

		
	2.14 
	Modifications to Licensed Marks. Licensors will not discontinue the GOODYEAR word mark during the Term. In the event Licensors modify the format of the GOODYEAR word or design mark, Licensee will modify molds as they are replaced. Licensee shall be authorized to sell goods bearing the earlier versions of the GOODYEAR word or design mark subsequent to such modifications for a period not to exceed five years.

Notice Requirements for Licensed Marks. Licensee shall take the following actions with respect to the marketing of the Licensed Products or the registration, renewal or evidence of use of the Licensed Marks to protect Licensors’ rights in the Licensed Marks, and Licensors shall cooperate with Licensee in its compliance with this Section 2.15. Licensee’s actions shall include:
		
	(a)
	notwithstanding Article 13, recording this Agreement in applicable trademark offices, in a short form to the extent possible;

		
	(b)
	providing affidavits of Licensee’s rights as reasonably requested by Licensors;

		
	(c) 
	affixing on Licensed Products and all materials used in the advertising, packaging, sale and distribution thereof all notices required under applicable law or reasonably 

9
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

requested by a Licensor, including the use of symbols ® and TM as appropriate (or the comparable symbols of a local jurisdiction), affixing language to indicate the existence of the licensing arrangement with Licensors, and to provide any other reasonable notice requested by Licensors on Licensed Products using the Licensed Marks; and

		
	(d)
	providing any other reasonable assistance and cooperation requested by the Licensors; provided that, in the case of this subsection (d), Licensors shall reimburse Licensee’s reasonable out-of-pocket expenses.

		
	2.16
	OEM Customers.

		
	(a)
	Licensee for itself and its Affiliates hereby grants to Licensors the right to allow original equipment manufacturers to import into any country in the Licensed Territory vehicles fitted outside the Licensed Territory with any Licensed Products manufactured, distributed, and or sold by Licensors or Licensors’ Affiliates. Further, Licensee will not object to the import of such original equipment vehicles into the Licensed Territory.

		
	(b)
	Licensors for themselves and their Affiliates hereby grant to Licensee the right to allow original equipment manufacturers to import into any country outside the Licensed Territory vehicles fitted in the Licensed Territory with any Licensed Products manufactured, distributed, and/or sold by Licensee or Licensee’s Affiliates. Further, Licensors will not object to the import of such original equipment vehicles to any country outside the Licensed Territory.

ARTICLE 3

TERM
		
	3.1
	Initial Term. This Agreement shall be effective as of the Effective Date and shall expire on the seventh anniversary of the Effective Date unless sooner terminated under operation of Law or in accordance with the terms and conditions herein (the “Initial Term”).

		
	3.2 
	Contract Periods.  Contract Period one begins on the Effective Date and ends twelve months later. Each consecutive twelve-month period thereafter shall be deemed a Contract Period.

		
	3.3
	Notice of Termination. Either Goodyear or Licensee may in their respective sole discretion terminate this Agreement by giving written notice of termination to the other Party not less than three years before the end of any Contract Period beginning with Contract Period four.

		
	3.4 
	Renewal Term. The term of this Agreement shall automatically extend for one additional seven year period (the “Renewal Term” and together with the Initial Term, the “Term”) unless:

10
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

		
	(a)
	Licensee provides written notice to Goodyear of its intent not to extend the term of this Agreement for the Renewal Term at least twelve months before the seventh anniversary of the Effective Date; or

		
	(b)
	the Agreement has been terminated pursuant to Section 3.3 or Section 11.1.

ARTICLE 4

ROYALTY
		
	4.1 
	Pre-Paid Royalty. The Parties hereby agree that a portion of the Purchase Price paid by Licensee under the Purchase Agreement has been allocated by the Parties as an up-front, one-time, payment of royalties (the “Pre-Paid Royalty”) by Licensee to Licensors for use of the Licensed Marks in connection with Licensed Products for the Initial Term as contemplated herein. The Pre-Paid Royalty is subject to a Pre-Paid Royalty Adjustment as defined in the Technology Agreement.

		
	4.2 
	[Intentionally Omitted]

		
	4.3 
	Royalty During Renewal Term.  In each Contract Period during the Renewal Term, Licensee shall pay to Goodyear a *** royalty based on the Net Sales of all Licensed Products sold (the “Earned Royalties”). For purposes of this Agreement, a Licensed Product shall be considered sold on the date upon which such Licensed Product is billed, invoiced, shipped, or paid for, or when title passes to the buyer, whichever occurs first.

		
	4.4 
	***

		
	4.5 
	No Deductions. Unless specified otherwise in the definition of Net Sales, computation of Net Sales (including the computation of the gross price invoiced to customers) shall not include deductions for returns greater than ***, uncollectible accounts, new store allowance(s), advertising allowance(s), co-op allowance(s), costs incurred in the manufacture, sale, distribution, advertising, promotion, or exploitation of the Licensed Products, or any indirect or overhead expense of any kind whatsoever. Similarly, such deductions and costs shall not be deducted from gross sales or Earned Royalties.

4.6    ***
ARTICLE 5.

STATEMENTS AND PAYMENTS
		
	5.1
	Statements.

		
	(a) 
	Statement Content.  Within 30 days following the last day of each calendar quarter, Licensee shall furnish to Goodyear a complete and accurate statement (in the format attached as Exhibit F) of sales of Licensed Products by Licensee and its Affiliates during the preceding calendar quarter. Such statement shall be certified 

11
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

as accurate by Licensee’s Chief Financial Officer and shall indicate the following for each Licensed Product by country: (a) a description of the Licensed Product, including SKU number; (b) gross sales price of the Licensed Product; (c) the number of units sold; (d) any itemized deductions from gross sales price which are expressly permitted hereunder; (e) Net Sales of the Licensed Product distributed and/or sold by Licensee during the quarter; and (f) aggregate returns made and credited during the preceding calendar quarter.

		
	(b)
	Statement Requirements.  Such statements shall be submitted whether or not any sales of the Licensed Products occurred during the preceding calendar quarter. The receipt or acceptance by Goodyear of any of the statements furnished pursuant to this Agreement shall not preclude Goodyear from auditing, questioning or objecting to the accuracy of such statements at any time. If any inconsistencies or mistakes are discovered in such statements, they shall immediately be rectified.

		
	5.2
	Inspection of Records.

		
	(a)
	Inspection.  Licensee shall keep complete, accurate, and verifiable books and records at its principal place of business showing all transactions relating to this Agreement. Such books and records shall include numerically sequenced invoices.  Goodyear or its duly authorized representatives shall have the right, upon no less than five Business Days’ notice, and during normal business hours, to inspect Licensee’s books and records and all other documents and material in the possession of or under the control of Licensee in order to verify the accuracy of Licensee’s sales reports. Goodyear shall have access thereto for such purposes and shall be permitted to make copies thereof. In the absence of any intentional misconduct by Licensee, Goodyear shall be entitled only to contest Licensee’s payments under this Agreement for the then-current Contract Period plus one (1) previous Contract Period.

		
	(b)
	Maintenance After Expiration. For each Contract Period, all books and records relative to Licensee’s obligations hereunder shall be maintained and kept accessible and available to Goodyear for inspection for at least three years after the conclusion of that Contract Period.

		
	5.3 
	Payment.

		
	(a)
	Payment Requirements. During the Renewal Term, Licensee shall remit within 30 days following the last day of each calendar quarter, together with the statement required for that quarter, a payment of the Earned Royalties due from sales during the preceding quarter. For any Contract Period where the Earned Royalties do not meet or exceed the Minimum Guarantee, in the fourth quarterly payment for that Contract Period (such payment to be made within 30 days following the last day of the fourth calendar quarter), Licensee shall pay the additional amount required to meet the Minimum Guarantee. All payments made under this Agreement shall be in United States currency (converted from any foreign currency at the spot rate of exchange for United States Dollars as published by The Wall Street Journal in New 

12
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

York, NY, USA, as of the last Business Day of the quarter for which payment is being made) and shall be remitted by wire transfer of immediately available funds into such account as is designated by Goodyear. Goodyear reserves the right to reject any other form of payment.  Except for money owed between the Parties under this Agreement, Licensee shall have no right to set off any money owed to Licensee by Licensors against any money owed by Licensee to Licensors hereunder.

		
	(b)
	Late Payments.  If any payments due under Section 4.3 are not timely paid, Licensee shall pay interest on the amount owed at a rate of 7% per annum (or the maximum rate allowed by law if lower) from the date such amount was due until it is paid.  If it becomes necessary for Goodyear to undertake legal action to collect any such payments, Licensee shall pay Licensors’ outside legal fees and costs of the action and related negotiations if the legal action undertaken results in a determination that the payments were due.

		
	(c)
	All Payments. All amounts due to Goodyear under this Agreement shall be paid by Licensee and no other entity.

		
	(d)
	[Intentionally Omitted]

ARTICLE 6.

OWNERSHIP, GOODWILL AND PROTECTION OF RIGHTS
		
	6.1
	 Acknowledgment.  Licensee shall not at any time during the Term of this Agreement or thereafter do or permit to be done any act or thing which impairs the rights of Licensors with respect to such Licensed Marks.  Licensee will not represent that it has any ownership in the Licensed Marks or in any registration of them and shall not attempt to register the Licensed Marks alone or as part of its own trademark or service mark in any jurisdiction.     Licensee will use the Licensed Marks only in the manner specified by Goodyear and this Agreement.  Licensee agrees that it will not, during the Term of this Agreement or thereafter, challenge the validity or distinctiveness of the Licensed Marks. The Parties expressly intend and agree that all use of the Licensed Marks shall inure to the sole benefit of the Licensors and that Licensee shall neither acquire nor be allowed to claim any rights to the Licensed Marks. Licensee further agrees that it shall not oppose or seek to cancel any of the Licensed Marks or challenge the ownership or validity of any of the Licensed Marks in any court or agency, including, but not limited to, any trademark office in any country in the Licensed Territory.

		
	6.2
	Confusingly Similar Marks.  Licensee shall not, either during or after the Term of this Agreement, use or authorize the use of any configuration, mark, name, design, logo or other designation identical or confusingly  similar to any Licensed Mark.   Should Licensee, during the Term or at any time thereafter, assert ownership in any mark, name, design, logo or other designation in any jurisdiction which is the same as, or confusingly similar to, any of the Licensed Marks, Licensee will, upon request by Goodyear, transfer or assign all of Licensee’s right, title, and interest that it asserts in such mark, name, 

13
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

design, logo or other designation, including but not limited to any registrations, to the applicable Licensor or its designee, at Licensee’s sole cost and expense.

		
	6.3
	Registrations.  Licensee agrees that it shall not, on the basis of its use of the Licensed Marks, oppose or seek to cancel any registration for any of the Licensed Marks.

		
	6.4
	Modifications By Licensee. Licensee shall not develop or authorize the development of variations of the Licensed Marks or elements included within the Licensed Marks without the prior express written consent of Goodyear, which consent may be withheld in Goodyear’s sole discretion, for any or no reason.  In the event that Goodyear grants the consent contemplated in this Section, any designs created shall be included in the Licensed Marks licensed hereunder, the applicable Licensor shall own all the rights in such new design, and Licensee shall execute any documents required to transfer such rights to such Licensor.  All uses and rights of and to the new designs shall inure to the exclusive benefit of such Licensor and such Licensor may register and protect the same in its own name, as it deems necessary or appropriate.

		
	6.5
	Goodwill. The Parties recognize the value of the publicity and goodwill associated with the Licensed Marks and that all related rights and goodwill belong exclusively to Licensors. Licensee agrees that it shall not take any action or produce any goods, services or materials that:

		
	(a)
	in any way question a Licensor’s ethics or lawful practices,

		
	(b)
	reflects adversely upon a Licensor, the Licensed Products, or the Licensed Marks; or

		
	(c)
	dilutes the Licensed Marks.

ARTICLE 7.
LICENSED MARKS PROTECTION
		
	7.1
	Third Party Unauthorized Use of Licensed Marks.

		
	(a)
	Notification of Unauthorized Use. Licensee shall notify Goodyear in writing of any manufacture, distribution, sale or advertisement of any product or service of the same general type or class as the Licensed Products that Licensee, in its reasonable judgment, believes may constitute an infringement upon Licensors’ rights within thirty (30) days after such manufacture, sale or advertisement has come to its attention. Licensee shall not commence, prosecute or institute any action or proceeding against any Person alleging infringement, imitation or unauthorized use of the Licensed Marks without the prior written consent of Goodyear.

		
	(b)
	Appropriate Action With Respect to the Licensed Marks other than the Goodyear Trademarks. Goodyear shall have the initial right to determine the appropriate action to be taken against any infringement, imitation (including any third-party 

14
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

registration or application to register) or any or other unauthorized use (“Infringement”) of the Licensed Marks other than the Goodyear Trademarks (which are addressed in Section 7.1(c) below) including whether to settle any claims or controversy arising out of such claims. Licensee shall have no claim against any Licensor for failure to bring an action for any Infringement or alleged Infringement of the Licensed Marks.  If Goodyear fails, within a reasonable period of time, to take action regarding an Infringement, after providing written notice to Goodyear, Licensee may institute, maintain and direct an action to enjoin such Infringement and to recover damages, and Goodyear agrees to be named as a party to such action if required under applicable Law. Subject to the provisions of this Section 7.1(b) and Section 7.2, actions with respect to Infringement of such Licensed Marks may be commenced by a Licensor, Licensee, or, if the Parties agree, by Licensors and Licensee jointly. Any and all awards or settlements recovered in any such action or proceeding shall be divided as follows:
		
	(i)
	Each Party will recover an equal percentage of its legal expenses, up to 100% of such expenses;

		
	(ii)
	The Party(ies) who commenced the case shall recover its/their demonstrated economic damages if they exceed the combined legal expenses. If Licensor(s) and Licensee commenced the case jointly, each plaintiff will recover an equal percentage of its respective demonstrated economic loss, up to 100% of such loss; and

		
	(iii)
	Any additional awards or settlements shall be awarded to the Party(ies) who commenced the case.

		
	(c)
	Appropriate Action With Respect to the Goodyear Trademarks.  Notwithstanding the provisions of Section 7.1(b), Goodyear shall have the sole right to determine the appropriate action to be taken against any Infringement of the Goodyear Trademarks, including whether to settle any claims or any controversy arising out of such claims.  Goodyear shall bear the expense of any actions and shall be entitled to any and all settlements, damages or benefits received arising from such any action.

		
	7.2
	Reasonable Assistance.

		
	(a)
	Licensee agrees to provide Licensors with such reasonable assistance as Licensors may require in protecting the Licensed Marks, provided that Licensors shall reimburse Licensee’s reasonable out-of-pocket expenses.

		
	(b)
	In connection with any action regarding an Infringement commenced, maintained or directed by Licensee as permitted pursuant to Section 7.1(b), Licensors shall provide Licensee with such reasonable assistance as Licensee may request in connection with such action, provided that Licensee shall reimburse Licensors for their expenses incurred in providing such assistance.

15
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

ARTICLE 8.

QUALITY CONTROL
		
	8.1
	Quality Requirements.  Licensee warrants that the Licensee-Made Licensed Products will have performance characteristics and be of a quality equal to the Licensed Product sold by the Business as of the Effective Date. Licensee warrants that it will manufacture the Licensee-Made Licensed Products according to Licensee’s approved standard quality control and manufacturing procedures and requirements in place in each case on the date hereof, and shall meet all applicable Laws and the then current industry standards relating to such products (if such industry standards were met prior to the Effective Date). Licensee must provide written notice to Goodyear prior to the production of any new products which are to bear Licensed Marks. Any such products must also be added to the quarterly reports issued by Licensee. The Parties agree that products currently made or sold by Licensee are not “new products” under this section, and that for a Farm Tire to be a “new product” it must bear a new SKU designation (a mere redesignation of the SKU for an existing product does not, however, constitute the product a “new product” hereunder).  Except to the extent consistent with the practices and policies of the Business prior to the date hereof, Licensee shall not offer for sale, advertise, promote, distribute, or use for any purpose any Licensee-Made Licensed Products or packaging that are damaged,  defective,  seconds,  or that otherwise  fail to meet the quality requirements described in this Agreement.

		
	8.2
	Product Sample Testing.  Goodyear, at its reasonable discretion, may require Licensee to submit ***.  Any testing laboratory engaged by Licensors for the purposes set forth herein shall be required to enter into a confidentiality agreement with Licensee protecting the confidential and proprietary information of Licensee prior to engaging in any testing activities.

		
	8.3
	Review of Marketing Materials Incorporating Licensed Marks.  Goodyear may request Licensee to provide samples of all packaging, promotional materials, and advertisements associated with the Licensee-Made Licensed Products and containing any Licensed Mark and any other information or materials containing, displaying, or used in conjunction with the Licensed Marks for Goodyear ‘s inspection and approval.  Such inspection shall be restricted solely to the use of the Licensed Marks.

		
	8.4
	[Intentionally Omitted]

		
	8.5
	Quality Maintenance/Inspection of Facilities.  During the Term of this Agreement, to ensure that the quality of Licensee-Made Licensed Products is being maintained in accordance with this Agreement, Licensors or their authorized representatives shall have the right to enter and inspect the facilities of Licensee or its Affiliates during reasonable hours on three Business Days’ notice.

8.6    Substandard Quality.

16
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

		
	(a)
	If the quality of any particular Licensee-Made Licensed Product falls below the requisite quality level set forth in Section 8.1, Licensee shall, upon written notice from Goodyear, have 60 days to either (i) return the quality level of such Licensee-Made Licensed Product to the requisite quality level or (ii) provide Goodyear with a plan reasonably acceptable to Goodyear to return the quality level of such Licensee-Made Licensed Product to the requisite quality level. If Licensee fails to do either (i) or (ii) within the 60 day period, then Licensee shall immediately discontinue the production, sale, distribution and marketing of such Licensee-Made Licensed Product until such time the Licensee-Made Licensed Product is brought up to the quality standards described in Section 8.1.

		
	(b)
	Without limiting the requirements of Section 8.6(a), a particular Licensee-Made Licensed Product will be deemed to have fallen below the requisite quality level set forth in Section 8.1 if returns of such Licensee-Made Licensed Product due to substandard quality exceed *** of Licensee’s Net Sales of such Licensee-Made Licensed Product in any Contract Period (the “Return Rate”).  Licensee shall promptly notify Goodyear in writing if returns of any Licensee-Made Licensed Product exceed the Return Rate.

		
	8.7 
	Disposal of Substandard Products. Licensee shall destroy, and upon Goodyear ‘s written request certify such destruction in writing, all substandard Licensee-Made Licensed Products that do not meet the quality levels described in this Article 8. Notwithstanding the foregoing sentence, with the prior written consent of Goodyear, Licensee instead may dispose of the substandard Licensee-Made Licensed Products at its own discretion as long as no use of or reference to the Licensed Marks is made in connection with such products. In such event, prior to disposal, Licensee must completely remove all labels, tags and marks that would identify any Licensor or any of the Licensed Marks from the substandard products to be disposed of.

		
	8.8 
	Customer and Consumer Inquiries. Licensee shall, at its sole cost, establish and maintain procedures satisfactory to Goodyear for the handling of all customer and consumer complaints about quality or product warranty issues, relating to any of the Licensee-Made Licensed Products (collectively “Customer Inquiries”).  Licensors may forward to Licensee for handling any and all Customer Inquiries that they receive relating to the Licensee-Made Licensed Products.  Licensee shall submit to Goodyear a written quarterly report summarizing all Customer Inquiries and the manner in which they were handled.

		
	8.9 
	Recalls. Licensee is solely responsible for ensuring Licensee-Made Licensed Products comply with all applicable standards of any Governmental Authority, including all costs and recall activities associated with Licensee-Made Licensed Products that do not conform to Governmental standards.  In addition, Licensee shall notify Goodyear in writing immediately upon determining, or becoming aware of any Governmental Authority claiming, that any Licensee-Made Licensed Products fail to comply with any Law.

17
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

ARTICLE 9.

USE OF OTHER MARKS WITH THE LICENSED MARKS
		
	9.1
	Use of Other Marks. Licensee may add the words “Made by Titan” to all molds bearing any of the Licensed Marks. Except for use of “Made by Titan” and the use of “Titan” as part of Licensee’s corporate name in conjunction with the sale of Licensed Products or as otherwise provided in this Agreement, Licensee shall not use any trademark, service mark, trade name, logo, symbol or device in combination with the Licensed Marks without the prior written consent of Goodyear, which consent may be withheld in Goodyear’s sole discretion, for any or no reason. Licensee shall not attempt to obtain or register the copyright or trademark in any artwork which contains or is derived from any of the Licensed Marks without the prior written consent of Goodyear (on behalf of the relevant Licensor), which consent may be withheld, in its sole discretion, for any or no reason.  At Goodyear’s request, Licensee shall remove from any Licensed Product or associated materials bearing the Licensed Marks and under Licensee ‘s control or access, any element which Goodyear believes will harm, dilute or otherwise  weaken the Licensed Marks or such Licensor ‘s reputation. Licensee shall not be required to remove any marks, or alter any Licensed Products or associated materials if such goods or materials have previously been consented to by Licensors, unless such Licensed Product or associated materials must be changed pursuant to any Law. Nothing herein is intended to prevent Licensee from complying with applicable Laws.

ARTICLE 10. 

INDEMNIFICATION
		
	10.1
	Indemnification of Licensors. Except as specifically provided in Section 10.2, Licensors assume no liability to Licensee or any third parties with respect to Licensee-Made Licensed Products, whether or not bearing a Licensed Mark. Licensee agrees to hold harmless, defend and indemnify Licensors and their respective Affiliates, officers, shareholders, employees  and agents against third party claims, liabilities, demands, judgments or causes of action, and costs and expenses related thereto (including, but not limited  to, reasonable  attorneys’  fees and costs),  arising out of the manufacture, distribution, advertising, use, sale or marketing of the Licensee-Made Licensed Products, whether or not bearing a Licensed Mark, or the use of the Licensed Marks, by Licensee, provided that (a) prompt written notice is given to Licensee of any suit or claim of infringement, (b) Licensee shall have the option and right to undertake and conduct the defense of any such suits or claims brought against Licensor, and (c) no settlement of any suit or claim brought by a third-party with respect to Licensee’s use of the Licensee­Made Licensed Products is made or entered into without the prior express written consent of Licensee, which consent shall not be unreasonably withheld.

		
	10.2
	Indemnification of Licensee.  Goodyear agrees to hold harmless, defend and indemnify Licensee, its affiliates, officers, shareholders, employees and agents against third party 

18
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

claims, liabilities, demands, judgments, or causes of action and costs and expenses related thereto (including but not limited to reasonable attorneys’ fees and costs) arising out of any third-party claim alleging trademark, trade dress or copyright infringement, or unfair competition, related to Licensee ‘s use of the Licensed Marks (except for the Unregistered Marks) as expressly authorized by this Agreement. This indemnification shall not apply to actions arising out of the unauthorized use of Licensed Marks, including the use of the Licensed Marks in territories that are not Licensed Territories for the products on which they are used or the application of the Licensed Marks to Licensed Products intended for sale within the Licensed Territory where application of the Licensed Marks is performed outside of the Licensed Territory.
ARTICLE 11.

TERMINATION AND EXPIRATION
		
	11.1
	Licensors’ Right of Termination.

		
	(a)
	Unless otherwise provided herein, Goodyear, on behalf of the Licensors, shall have the right to terminate this Agreement if Licensee materially breaches this Agreement and Licensee fails to cure such breach or to adopt a plan reasonably designed to cure such breach within 60 days after receipt of written notice of such breach from Goodyear.  Material breach includes, without limitation, any of the following:

		
	(i)
	Licensee breaches any provision in Article 8 (Quality Control) or Article 9 (Use of Other Marks with Licensed Mark);

		
	(ii)
	any Licensed Product is recalled for any reason and Licensee fails or refuses to correct the condition or defect which caused the recall;

		
	(iii)
	except  under federal  bankruptcy  laws,  Licensee  files  a petition  in bankruptcy, is adjudicated as bankrupt or insolvent, makes an assignment for the benefit of creditors or an arrangement pursuant to any bankruptcy law, or a receiver is appointed for Licensee’s business;

		
	(iv)
	Licensee breaches its confidentiality obligations in Article 13;

		
	(v)
	Licensee sells Licensed Products outside the Licensed Territory except as allowed in Section 2.13, Section 2.16, or otherwise by this Agreement or the Purchase Agreement, the Farm Tire Supply Agreement (Colombia), or the Related Agreements; or

		
	(vi)
	Licensee ceases or threatens to cease to carry on all or any material part of its business or the Business.

		
	(b)
	Goodyear, on behalf of the Licensors, may also terminate this Agreement immediately upon notice to Licensee if Licensee undergoes a Change of Control; provided, however, that

19
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

		
	(i)
	Licensee shall notify Goodyear in writing (A) promptly after it becomes aware of any Change of Control described in Clause (1) of the definition of Change of Control hereunder or (B) not less than 60 days prior to the proposed closing date with respect to any proposed Change of Control other than a Change of Control described in such Clause (1) of the definition; and

		
	(ii)
	if Licensee provides the notice referred to in Clause (i) of this Section 11.1(b), Goodyear may exercise the termination right provided in this Section 11.1(b) within 30 days after its receipt of such notice.

		
	(iii)
	Notwithstanding anything to the contrary in this Agreement, if Licensee undergoes a Change of Control by a Person who is not a competitor of Goodyear or its Affiliates, then Goodyear on behalf of the Licensors may exercise its termination rights under Section 11.1(b) only if Goodyear also terminates all other Related Agreements.

		
	11.2
	Licensee’s Right of Termination.  Licensee shall have the right to terminate this Agreement if Licensors materially breach this Agreement and fail to cure such breach, or to adopt a plan reasonably designed to cure such breach within 60 days after receipt of such notice. Material breach includes, without limitation, the following:

		
	(a)
	Except under federal bankruptcy laws, Goodyear files a petition in bankruptcy, is adjudicated as bankrupt or insolvent, makes an assignment for the benefit of creditors or an arrangement pursuant to any bankruptcy law, discontinues all or a significant portion of its business, or its business is appointed a receiver, or

		
	(b)
	Either Licensor materially breaches any of the conditions or provisions of this Agreement.

		
	11.3
	Duties Upon Termination.

		
	(a)
	Termination of this Agreement shall be without prejudice to any rights that the terminating Party may otherwise have against the other Parties. Upon termination of this Agreement by Goodyear, on behalf of Licensors, pursuant to Section 11.1(a), Licensee shall immediately discontinue the use of the Licensed Marks.

		
	(b)
	Upon termination of this Agreement by Goodyear, on behalf of Licensors, pursuant to Section 11.1(b) or by Licensee pursuant to Section 11.2, Licensee shall do the following:

		
	(i)
	No later than six months after such termination (the “Initial Transition Period”), Licensee shall remove and change signage, retool molds (provided that such retooled molds shall not infringe any of Licensors’ intellectual property), change and substitute promotional or advertising material in whatever medium, change stationery and packaging and take all such other steps as may be required or appropriate to cease use of the Licensed Marks, and

20
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

		
	(ii)
	No later than 18 months after such termination, Licensee shall sell-off its inventory of Licensed Products manufactured before the end of the Initial Transition Period; provided, however, if a termination pursuant to Section 11.1(b) occurs due to a Change of Control to a Competitor of Goodyear or its Affiliates, no later than 12 months after such termination, Licensee shall sell-off its inventory of Licensed Products manufactured before the effective date of termination. During such sell-off period, Licensee shall be entitled to use the Licensed Marks as authorized by this Agreement in connection with the promotion, marketing, advertising, packaging, distribution and sale of Licensed Products. Licensee may not sell molds, plates, dies or the like bearing Licensed Marks to a third party absent the express written consent of Licensor. During the sell-off period, Licensee shall pay Earned Royalties on its sales of Licensed Products.

		
	(c)
	Upon termination of this Agreement by Goodyear, on behalf of Licensors, pursuant to Section 11.1(b), Licensee shall be entitled to a refund within 60 days of the Discontinuation Date of that portion of the Pre-Paid Royalty (including, without limitation, any Pre-Paid Royalty allocated to any royalties due under the Technology Agreement) determined by multiplying the Pre-Paid Royalty by a fraction, the numerator of which is the number of calendar days remaining in the Initial Term following the Discontinuation Date and the denominator of which is the number of calendar days in the Initial Term.

For purposes of this Section 11.3(c), the Discontinuation Date shall mean that date (i) after the termination of this Agreement by Goodyear, on behalf of Licensors, under Section 11.1(b), and (ii) after which Licensee discontinues all use of the Licensed Marks including, without limitation, any use permitted under Article 11.  Any payment made under this Section 11.3(c) shall be in U.S. currency and shall be remitted by wire transfer of immediately available funds into such account as is designated by Licensee.
		
	11.4
	Duties Upon Expiration; Sell-off.  Effective on the expiration date of this Agreement, Licensee shall discontinue all use of the Licensed Marks; provided, however, Licensee shall have one (1) year within which to dispose of any existing inventory of the Licensed Products. Thereafter, Licensee shall promptly discontinue the sale or distribution of the Licensed Products using the Licensed Marks and shall remove the Licensed Marks (if practical) from the Licensed Products. If it is not practical to remove the Licensed Marks from the Licensed Products, Licensee shall, at Goodyear’s direction, ship to Goodyear or destroy, with written confirmation to Goodyear, all Licensee’s inventory of Licensed Products existing on the expiration date of this Agreement.

		
	11.5
	Retooling of Molds and Other Materials Upon Expiration or Termination. Following the termination or expiration of this Agreement, Licensee shall, at Licensee’s discretion, retool all molds containing the Licensed Marks, to fully remove the Licensed Marks from the molds, or ship to Goodyear all such molds.  Further, Licensee shall remove the Licensed Marks from all goods in progress, designs, plates, dies, screens, and

21
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

advertising/promotional materials, within 180 days after termination or expiration of this Agreement. An officer of Licensee shall certify such removal, destruction or shipment in writing to Goodyear.

		
	11.6
	Commercialization by Licensee.  During the Term of this Agreement, Licensee shall diligently distribute, promote, and sell the Licensed Products, and Licensee will make and maintain adequate arrangements for the distribution of the Licensed Products throughout the entire Licensed Territory. Any determination that Licensee has failed to diligently manufacture, distribute, promote, or sell any single Licensed Product in any country within the Licensed Territory at any given time during the Term shall permit Licensors to terminate the license granted under this Agreement with respect to that Licensed Product and/or Licensed Territory.

ARTICLE 12.

INJUNCTIVE AND OTHER EQUITABLE RELIEF

		
	12.1
	Injunctive Relief.  It is expressly agreed that Licensors would suffer irreparable harm from a breach by Licensee of any of its covenants contained in this Agreement, and that remedies other than injunctive relief cannot fully compensate or adequately protect Licensors for or from such a violation. Therefore, without limiting the right of Licensors to pursue all other legal and equitable remedies available for violation of this Agreement, in the event of actual or threatened breach by Licensee of any of the provisions of this Agreement, Licensee agrees that Licensors shall be entitled to injunctive or other relief in order to enforce this Agreement or prevent any violation or continuing violation thereof without necessity of posting bond or other security, any requirements therefore being expressly waived by Licensee. Licensee agrees not to raise the defense of an adequate remedy at law in any such proceeding.  Licensee acknowledges and agrees that the provisions of this Section are reasonably necessary and commensurate with the need to protect Licensors against irreparable harm and to protect their legitimate and proprietary business interests and property.

ARTICLE 13.

CONFIDENTIALITY
		
	13.1
	Confidential Information.

		
	(a)
	During the term of this Agreement and for a period of seven years following the expiration or termination of this Agreement, the Parties agree not to disclose to others the subject matter of this Agreement (except to Licensee’s lenders or as required by the rules and regulations of the Securities and Exchange Commission) or any Confidential Information of the other Party without the prior written consent of the other Party.

22
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

		
	(b)
	Each of the Parties shall exercise care to prevent the disclosure of Confidential Information to any third party, using the same standard of care which it employs with its own confidential information of similar character. The Parties also shall limit internal dissemination of Confidential Information within their own organization in strict conformity with each Party’s established internal policies and procedures regarding the protection of confidential information. Each Party further agrees that it shall be liable to the other Party for unauthorized disclosures or use of Confidential Information of the other Party by any of its employees; provided, however, that the Parties shall not be liable to one another for disclosures or use of Confidential Information of the other Party by any employee of a Party who makes such disclosure or engages in such use more than ten years after the termination of the employee’s employment with such Party.

		
	13.2 
	Compelled Disclosures.  If a Party believes that it is legally required to disclose any Confidential Information, that Party (the “Initial Party”) will promptly notify the other Party. Unless the other Party within 10 days of receipt of that notice gives notice to the Initial Party that the other Party intends to seek a protective order or act in some other way to prevent disclosure of the information in question, the Initial Party may disclose the information without a violation of this Agreement. After giving the notice referred to in the preceding sentence, the other Party must act promptly to contest the obligation of disclosure, notify the Initial Party of its actions and give the Initial Party notice if it does not successfully contest the obligation of disclosure in time to permit the Initial Party to disclose the information without violation of Law or contempt of any Governmental Authority. If compelled to disclose any Confidential Information, the Initial Party will disclose only such Confidential Information as to which disclosure is required and will use all commercially reasonable efforts to ensure that the Confidential Information required to be disclosed is accorded confidential treatment by the person, entity or Governmental Authority to whom or to which such Confidential Information is disclosed.

		
	13.3
	Rights to Documents. Each Party acknowledges that all documents and digital materials setting forth any Confidential Information of the other Party will be and remain the property of the other Party.

		
	13.4
	Public Announcements.  Subject to the terms of, and in addition to the requirements imposed by, the Confidentiality Agreement, the Parties shall:

		
	(a)
	consult with each other prior to issuing any other press release or any written public statement with respect to this Agreement or any of the Related Agreements or the contemplated transactions; and

		
	(b)
	not issue any such press release or written public statement prior to review and approval by the other Party; provided, however, that prior review and approval shall not be required if (i) in the reasonable judgment of the Party seeking to issue such release or public statement, prior review and approval would prevent the timely dissemination of such release or announcement in violation of any applicable Law or any rule, regulation or policy of any securities exchange on 

23
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

which the securities of such Party are traded, and (ii) the Party seeking to issue such press release or public statement provides notice of the content and proposed timing thereof to the other Party, as promptly as practicable.

ARTICLE 14. 

WARRANTIES
		
	14.1
	Licensors’ Warranty.

		
	(a)
	Each Licensor respectively represents and warrants, severally and not jointly, that it has the full right, power, and authority to enter into and perform this Agreement, that it is not a Party to any agreement or understanding which would conflict with this Agreement, and that it owns, controls, or has previously been granted the necessary rights in and to the Licensed Marks (other than the Unregistered Marks) which enable such Licensor to grant to Licensee the rights granted herein.  Each Licensor respectively further represents and warrants, severally and not jointly, that it is in, and shall remain within, compliance with all applicable Laws required for performance of its obligations under this Agreement. Except for the Licensed Marks identified in Exhibit G, each Licensor further represents that, as of the Effective Date, it is not aware of any infringements of its Licensed Marks in the Licensed Territory, and that, to the best of its knowledge, information and belief, the Licensed Marks are noninfringing.

		
	(b)
	Except as otherwise set forth in this Agreement, each Licensor:

		
	(i)
	makes no other representation or warranty, express or implied;

		
	(ii)
	assumes no liability with respect to any infringement of any patent or other right of third parties resulting from Licensee’s activities under the license granted hereby; and

		
	(iii)
	assumes no liability with regard to any claim, specious or otherwise, arising out of alleged side effects or any other alleged performance defect arising out of the use or misuse of the Licensed Products.

		
	14.2
	Licensee’s Warranty.

		
	(a)
	Licensee represents and warrants that it has the full right, power, and authority to enter into and perform this Agreement and that it is not a party to any agreement or understanding that prevents it or restrains its ability to comply with its obligations under this Agreement.

		
	(b)
	Licensee represents and warrants that, with respect to any improvements or modifications to Licensed Products after the Effective Date, prior to using the Licensed Marks on such improved or modified Licensed Products, it will own or have acquired all intellectual property rights that, to its knowledge, it requires to manufacture, promote, market, distribute, and/or sell to manufacture, promote, market, distribute, and/or sell such improved or modified 

24
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

		
	(c)
	Licensee represents and warrants that it is in, and shall remain within, compliance with all applicable Laws required for its conduct of the Business and its performance of its obligations under this Agreement. Before accruing any rights to use the Licensed Marks, all of Licensee’s sublicensees, Affiliates and (to the extent applicable) the Licensee Permitted Users and the Licensee Permitted Manufacturers shall be required to make (in writing) to the Licensee for the benefit of Licensors the same representations and warranties set forth in this Section 14.2(c) as the Licensee.

		
	(d)
	Except as otherwise set forth in this Agreement, none of Licensee, its sublicensees, Affiliates, or the Licensed Permitted Users:

		
	(i)
	makes any other representation or warranty, express or implied, or

		
	(ii)
	assumes any liability with respect to any infringement of any patent or other right of third parties resulting from Licensors’ activities under the license granted hereby.

ARTICLE 15.

GOVERNING LAW; JURISDICTION; DISPUTES
		
	15.1
	Governing Law. This Agreement will be governed and construed in accordance with the substantive Laws of the State of New York, except for any Laws of that state that would require the application of the substantive Laws of a different jurisdiction.

		
	15.2
	Jurisdiction.  To the extent subject matter jurisdiction exists, Licensee and Goodyear agree that any action arising out of or relating to this Agreement shall be brought in any United States District Court having jurisdiction over the Parties. Each Party irrevocably consents to the jurisdiction and venue of such courts (and of the appropriate appellate courts thereof) in any such action, claim or proceeding and irrevocably waives, to the fullest extent permitted by Law, any objection that it may now or hereafter have to the laying of the venue of any such action, suit or proceeding in any such court or that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such action, suit or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court.

		
	15.3
	Requirement for Mutual Consultation. Subject to Section 12.1, in the event of a dispute between or among the Parties arising out of or in connection with this Agreement, the Parties will make every effort to resolve, promptly and in good faith, such dispute. If the dispute cannot be resolved, either Party may notify the other of the existence of a possible deadlock by sending a letter signed by management responsible for the operation of this Agreement to management of the other Party. Within 15 Business Days after receipt of that notice, management of the Parties shall arrange to meet at a mutually agreeable time and place, and thereafter as often as they reasonably deem necessary, to exchange relevant information and to attempt to resolve the dispute. If responsible management have not been successful in resolving the dispute within 90 days from the date 

25
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

either Party may initiate an action or take such other action as is permitted under this Agreement in accordance with the time periods set out elsewhere in this Agreement, or, in each case, under any of the Related Agreements. Except as otherwise set forth herein or therein, each Party shall be responsible for its own legal fees and expenses.

		
	15.4
	Extraordinary Remedies. Notwithstanding the requirement for mutual consultation, (a) either Party may at any time initiate an action to prevent the disclosure of its Confidential Information; and (b) either Party may initiate an action in respect of any of the equitable remedies to which it is entitled.

		
	15.5 
	Legal Fees and Expense.  Each Party shall be responsible for its own legal fees and expenses.

ARTICLE 16.
 
FORCE MAJEURE
		
	16.1
	Force Majeure Events. Neither Licensee nor Licensors will be liable to the other for any delay in the performance of, or failure to perform, any action required under this Agreement, whether in whole or in part, to the extent that such delay or failure is caused by any of the following causes: war; acts of terrorism; strike, work stoppage, lockout or other labor disturbance; fire; severe weather; extraordinary natural occurrence; earthquake; extraordinary governmental action (whether or not valid) or similarly extraordinary occurrences, whether foreseeable or unforeseeable (collectively, “Force Majeure”).

		
	16.2
	Duty of Affected Party. The affected Party will use its best efforts to (a) eliminate the effects of the Force Majeure as soon as possible and resume full performance hereunder and (b) perform to the fullest extent possible prior to the elimination of such effects.

		
	16.3
	Force Majeure Delay Exceeding 60 Days.  If either Party’s performance under this Agreement should be prevented, delayed or impaired, whether in whole or in part, by reason of Force Majeure for a period of 60 days or more, then the other Party, by written notice to the Party affected by the Force Majeure event, may elect to do any one or more of the following: (a) suspend this Agreement, either in whole or in part, until the affected Party is able to resume full performance; or (b) terminate this Agreement by notice to the affected Party, but such right of termination, if not exercised, shall expire immediately upon the discontinuance of the event of Force Majeure.

ARTICLE 17.

NOTICES
		
	17.1
	Notices. Notices, demands and other communications which may or are required to be given or made by either Party to the other in connection with this Agreement shall be in writing (including fax or other similar writing) and shall be deemed to have been duly given or made: (a) if sent by registered or certified mail, three days after the posting

26
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

thereof with first class postage attached; (b) if sent by hand or overnight delivery, upon the delivery thereof; and (c) if sent by fax, upon confirmation of receipt of such telex or fax, in each case addressed to the respective Parties as follows:
if to Goodyear:

The Goodyear Tire & Rubber Company
1144 East Market Street
Akron, Ohio 44316-0001
Attn: Corporate Secretary
Fax No.: 330-796-7861

in each case with a copy to (which copy shall not constitute notice):

Associate General Counsel Intellectual Property
The Goodyear Tire & Rubber Company
1144 East Market Street
Akron, Ohio 44316-0001
Fax No.: 330-796-7861

and

Squire, Sanders & Dempsey L.L.P.
4900 Key Center
127 Public Square
Cleveland, Ohio 44114-1291
Attn:     Carolyn J. Buller
Cipriano S. Beredo
Fax No.: 216-479-8780 

if to Licensee:

Maurice M. Taylor, Jr. Titan International, Inc.
2701 Spruce Street
Quincy, IL 62301
Fax: (217) 228-3166

in each case with a copy to (which copy shall not constitute notice): 

Cheri T. Holley
General Counsel
Titan International, Inc.
2701 Spruce Street
Quincy, IL 62301
Fax: (217) 228-3040 

27
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

with a second copy to:

Robert J. Diehl, Jr. 
Bodman LLP
6th Floor at Ford Field
1901 St. Antoine Street
Detroit, MI 48226
Fax: (313) 393-7579

or to such other address and to the intention of such other Persons as may be designated from time to time by such other Party hereto by notice given in the manner provided in this section.

ARTICLE 18. 

MISCELLANEOUS
		
	18.1
	Interpretation. In interpreting this Agreement, the following principles will apply:

		
	(a)
	All references to persons or entities in this Agreement include individuals and all legal entities, including but not limited to corporations, companies, partnerships, unincorporated associations, estates, trusts, unincorporated organizations, and governmental or quasi-governmental authorities or bodies.

		
	(b)
	All words that are singular include the plural, and a word in any one gender includes the other genders, as the context may require.

		
	(c)
	The headings and captions that appear in this Agreement have been inserted for the convenience of the reader and do not limit or in any other way affect the meaning of its terms and conditions.

		
	18.2
	Entire Agreement. This Agreement, together with the Purchase Agreement, the Related Agreements, and the documents and instruments referred to herein, contains the entire agreement made by the Parties with respect to the subject matter, superseding any and all prior or contemporaneous representations, warranties and agreements, whether oral or written.

		
	18.3
	Amendment. This Agreement may be amended or varied only by a written instrument signed by duly authorized representatives of both Parties.

		
	18.4
	Parties in Interest; Assignment. This Agreement will be binding upon, and inure to the benefit of, the Parties and their permitted successors and assigns, and nothing herein is intended to or shall confer any right, benefit or remedy on any other person or entity, except for the Affiliates of Goodyear and Licensee, which are intended beneficiaries of, and shall be entitled to enforce, this Agreement and the persons and entities entitled to indemnification hereunder, which are intended beneficiaries of, and shall be entitled in enforce, the indemnity obligations set forth herein. Licensee may not assign its rights 

28
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

under this Agreement or delegate performance hereunder to another person or entity without the written consent of Goodyear; provided, however, that Goodyear will be deemed to have given its consent to an assignment in connection with Licensee’s Change of Control if Goodyear fails to exercise its termination right provided in Section 11.1(b).

		
	18.5
	No Partnership. Nothing contained in this Agreement will be deemed or construed by the Parties, or by any other person or entity, to create the relationship of principal and agent, or of partnership, strategic alliance, fiduciary or joint venture.

		
	18.6
	Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same agreement.

		
	18.7
	Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced under any rule of law or public policy, all other conditions and provisions of this Agreement shall remain in full force and effect, so long as the economic and legal substance of the transactions contemplated are not affected in a manner materially adverse to either Party. Upon any determination that any such term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated be consummated as originally contemplated to the fullest extent possible.

		
	18.8
	Action to be Taken by Affiliates.  The Parties shall cause their respective Affiliates to comply with all the obligations that may be specified in this Agreement to be performed by such Affiliates.

		
	18.9
	Limitation on Certain Remedies.  In no event will any Party hereto be responsible to any other Party for any indirect, consequential, special, punitive, exemplary or other similar losses for any reason.

		
	18.10
	Survival.  Unless otherwise expressly provided herein, all of the Parties’ representations, warranties, and covenants set forth in this Agreement shall survive for the Term. Notwithstanding the foregoing,

		
	(a)
	indemnification in Article 10 shall survive the expiration or termination of this Agreement until the end of the statute of limitations period applicable to the indemnified claim;

		
	(b)
	the sell-off period in Section 11.3 shall survive six months from the expiration or termination of this Agreement;

		
	(c)
	retooling of molds in Section 11.5 shall survive 180 days from the expiration or termination of this Agreement; and

		
	(d)
	confidentiality provisions of Article 13 shall survive ten years from the expiration or termination of this Agreement.

29
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

Upon expiration of such periods, neither Party shall have any further right to indemnification relating to such representations, warranties, and covenants, provided, however, that to the extent that written notice specifically setting forth a claim for indemnification is provided with respect to an indemnifiable matter prior to the date that the representation or warranty claimed to have been breached would have expired, then such claim shall survive until its resolution.

[Remainder of page intentionally left blank. Signature page to follow.]

30
Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the day and year first above written.
	
		
	LICENSORS:

THE GOODYEAR TIRE & RUBBER COMPANY

By: /s/ Laura Thompson
(Signature)
Name: Laura Thompson
(Print)
Title: Vice President of Finance

Date: April 1, 2011

ATTEST:

 /s/ Anthony E. Miller
Assistant Secretary
	LICENSEE:

TITAN INTERNATIONAL, INC.

By: /s/ Maurice Taylor
(Signature)
Name: Maurice Taylor
(Print)
Title: Chairman/CEO

Date: April 1, 2011

	

GOODYEAR CANADA INC.
By: /s/ Douglas S. Hamilton
(Signature)
Name: Douglas S. Hamilton
(Print)
Title: President 

Date: April 1, 2011

	 

	By: /s/ Caroline A. Pajot
(Signature)
Name: Caroline A. Pajot
(Print)
Title: Comptroller 

Date: April 1, 2011
	 

[Signature Page to Trademark License Agreement (Americas-Goodyear Brand)]

Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

Attachments:

Exhibit A-1:     Goodyear Licensed Marks

Exhibit A-2:     Goodyear Canada Licensed Marks

Exhibit A-3:     Unregistered Marks

Exhibit B:     Locations of the Business
		
	Exhibit C: 
	Farm Tires [Copies of Schedules A and B from Purchase Agreement] 

		
	Exhibit D:
	Deductions to Reach Net Sales

Exhibit E:     Description of ANLAS Anadolu Lastik San ve Tic AS and Alliance Tire
Company Authorizations

Exhibit F:     Sales Report Format

Exhibit G:     Marks subject to opposition proceedings

Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

Exhibit A-1

Americas - GOODYEAR Brand
Owner:  The Goodyear Tire & Rubber Company

Licensed Marks

***

Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

Exhibit A-2

Americas - GOODYEAR Brand
Owner: Goodyear Canada, Inc.

Licensed Marks

***

Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

Exhibit A-3

Americas - GOODYEAR Brand
Unregistered Marks

***

Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

Exhibit B (Americas)

Locations of the Business
    
***

Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

Exhibit C

Schedule A to Purchase Agreementt

Tires Omitted from Sale

***

Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

EXHIBIT D 
DEDUCTIONS TO REACH NET SALES

***

Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

EXHIBIT E

DESCRIPTION OF ANLAS ANADOLU LASTIK SAN ve TIC AS and
ALLIANCE TIRE COMPANY AUTHORIZATIONS

  ***

Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

EXHIBIT F
SALES AND ROYALTY REPORT FORM

***

Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.

Exhibit G

Americas - GOODYEAR Brand

***

Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.   Such portions are marked by a series of asterisks.Exhibit 4.11

 

Private & Confidential

 

	 	Dated
    November 26, 2014	 
	 	 	 

 

	 	BY AND AMONG	 
	 	 	 
	 	FLAMEL TECHNOLOGIES	(1)
	 	 	 
	 	and	 
	 	 	 
	 	RECIPHARM PESSAC	(2)
	 	 	 

 

	 	 	 
	 	ASSET PURCHASE AGREEMENT	 
	 	 	 

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	ARTICLE I. PURCHASE,
    SALE AND ASSUMPTION OF LIABILITIES	2
	 	 	 
	1.1	Purchase and Sale of the Acquired Assets.	2
	1.2	Assumption of Contracts.	4
	1.3	Assumption of Liabilities.	4
	1.4	Acquired Inventory	5
	1.5	Acquired Real Property	6
	 	 	 
	ARTICLE II. Consideration	6
	 	 	 
	2.1	Closing Purchase Price	6
	2.2	Payment of the Closing Purchase Price	7
	2.3	Allocation for Purposes of the French Commercial Code	7
	 	 	 
	ARTICLE III. CONDITIONS
    PRECEDENT	8
	 	 	 
	3.1	[Intentionally omitted]	8
	3.2	Conditions to Obligations of the Purchaser.	8
	3.3	Conditions to Obligations of the Seller.	8
	3.4	Further condition to Closing for the Seller and the Purchaser.
    Material Adverse Change.	9
	 	 	 
	ARTICLE IV. CLOSING	9
	 	 	 
	4.1	Closing.	9
	4.2	Closing Deliveries.	9
	 	 	 
	ARTICLE V. REPRESENTATIONS
    AND WARRANTIES OF the Seller	12
	 	 	 
	5.1	Organization and Standing; Power and Authority.	12
	5.2	Authority and Binding Effect.	12
	5.3	Conflicts; Defaults.	12
	5.4	Governmental Approvals.	12
	5.5	Acquired Assets and Acquired Inventory.	13
	5.6	Acquired Real Property.	14
	5.7	Intellectual Property rights.	14
	5.8	Contracts.	15
	5.9	Conduct of Business.	15
	5.10	Litigation.	16
	5.11	Permits, Licenses, Authorizations.	16
	5.12	Employees and Labor Matters.	17
	5.13	Environmental Matters.	18
	5.14	Tax Matters.	19
	5.15	Insurance.	19
	5.16	Financial information	19
	 	 	 
	ARTICLE VI. REPRESENTATIONS
    AND WARRANTIES OF THE PURCHASER	20
	 	 	 
	6.1	Organization and Good Standing.	20

 

    	i

    	 

    

 

	6.2	Authorization - No Violations.	20
	6.3	Availability of Funds	20
	6.4	No Claims or Litigation.	20
	6.5	Investigation	21
	6.6	Financial Projections.	21
	6.7	No Other Representations.	21
	 	 	 
	ARTICLE VII. COVENANTS	22
	 	 	 
	7.1	Covenants of the Seller.	22
	7.2	Covenants of the Purchaser.	23
	7.3	Mutual Covenants.	28
	 	 	 
	ARTICLE VIII. CUT OFF
    PRINCIPLES AND OTHER COVENANTS	34
	 	 	 
	8.1	General Cut-Off Principles.	34
	8.2	Cut-Off Schedule.	35
	8.3	Balancing Payment.	36
	 	 	 
	ARTICLE IX. INDEMNIFICATION	36
	 	 	 
	9.1	Indemnification by Purchaser	36
	9.2	Indemnification by Seller	37
	9.3	Payments	37
	9.4	Notice of Claim; Right to Participate in and Defend Third Party
    Claims	38
	9.5	General Exclusions and Limitations.	40
	9.6	Survival of Representations and Warranties.	41
	9.7	Tax Effect of Indemnification Payments.	42
	9.8	Efforts to Mitigate Damages.	42
	 	 	 
	ARTICLE X. POST-CLOSING
    COVENANTS	42
	 	 	 
	10.1	Non Solicitation of Employees.	42
	10.2	Non-Competition / Non Solicitation of Clients.	42
	10.3	Invalidity or Non-enforceability.	43
	 	 	 
	ARTICLE XI. TERMINATION	43
	 	 	 
	11.1	Termination.	43
	11.2	Consequences.	44
	 	 	 
	ARTICLE XII. MISCELLANEOUS
    PROVISIONS	44
	 	 	 
	12.1	Amendment.	44
	12.2	Waivers.	44
	12.3	Appointment of the Seller's Agent - Notices.	44
	12.4	Assignment.	46
	12.5	No Third Party Beneficiaries.	46
	12.6	No Set-off.	46
	12.7	Expenses.	46
	12.8	Counterparts.	46
	12.9	Headings, etc.	46
	12.10	Entire Agreement; Severability.	47
	12.11	Governing Law.	47

 

    	ii

    	 

    

 

	12.12	Dispute Resolution	47
	12.13	Exhibits and Schedules.	48
	12.14	Interpretation.	48
	12.15	Conflict.	48
	12.16	VAT  exemption regime	49

 

    	iii

    	 

    

 

List of
Annexes, Exhibits and Schedules

 

	Schedule A	Definitions
	 	 
	Schedule 1.1.1 (a) Part A	List of Business Assets proprietary to Seller
	 	 
	Schedule 1.1.1 (a) Part B	List of Business Assets proprietary to GSK
	 	 
	Schedule 1.1.1(d)	Acquired IP Rights
	 	 
	Schedule 1.1 2 (h)	List of assets, properties or rights used and/or operated by
    the Seller located on the Pessac Facility but not primarily dedicated to the Pessac Business
	 	 
	Schedule 1.2	Material Contracts
	 	 
	Schedule 1.4 Part A	Inventory held by Seller on behalf of third parties which are
    not transferred under the Agreement
	 	 
	Schedule 1.4 Part B	Inventory proprietary to Seller, which are not transferred under
    the Agreement
	 	 
	Schedule 2.1.3	Methodology for Inventory Valuation
	 	 
	Schedule 3.2	Seller’s Certificate on ISIT as condition to Closing
	 	 
	Schedule 4.2.1	Ancillary Agreement in agreed form
	 	 
	Schedule 4.2.1 (i) (a):	Quality Agreement
	 	 
	Schedule 4.2.1 (i) (b)	Master Service Agreement
	 	 
	Schedule 4.2.1(i) (c)	Supply Agreement
	 	 
	Schedule 4.2.1 (i) (d)	Service Agreement
	 	 
	Schedule 4.2.1 (i) (e)	Transitional Services Agreement
	 	 
	Schedule 4.2.1 (i) (f)	Short-Form Agreement
	 	 
	Schedule 4.2.1 (ii)	Option Agreement in agreed form
	 	 
	Schedule 4.2.1 (iii)	List of Servier Agreements
	 	 
	Schedule 5.4	List of third party agreement or authorizations required
	 	 
	Schedule 5.5.1	List of Acquired Assets not owned by Seller
	 	 
	Schedule 5.5.4 (a)	List of Acquired Assets used for the conduct of the Pessac Business
    under lease agreement with third party owned by Seller
	 	 
	Schedule 5.5.4 (b)	List of lease contracts
	 	 
	Schedule 5.7.2	List of Material IP Rights
	 	 
	Schedule 5.8.4	List of all suppliers to the Pessac Business
	 	 
	Schedule 5.8.5	List of all customers of the Pessac Business
	 	 

 

    	iv

    	 

    

 

	Schedule 5.11.1	List of material permits, licenses and authorizations
    which are required for the operation of the Pessac Business and issued to Seller
	 	 
	Schedule 5.12.1 Part A	List of Transferred Employees
	 	 
	Schedule 5.12.1 Part B	List of the additional compensation owed to the Transferred
    Employees
	 	 
	Schedule 5.12.2	List of collective bargaining agreements
    (convention collective et accords collectifs), internal rules (règlement intérieur)
	 	 
	Schedule 5.12.3	List of collective bargaining agreements
    (convention collective et accords collectifs), internal rules (règlement intérieur)
	 	 
	Schedule 5.12.7	Pension liabilities relating to Transferred Employees
	 	 
	Schedule 5.12.12	List of Transferred Employees who have
    been transferred from or to Venissieux from or to Pessac Facility
	 	 
	Schedule 5.13.2	Environmental matters
	 	 
	Schedule 5.15	Insurance
	 	 
	Schedule 5.16	Business Plan
	 	 
	Schedule 6.5	Index of DR Documents
	 	 
	Schedule 7.1.2	Flamel Patents Rights
	 	 
	Schedule 7.1.3 Part A	ISIT
	 	 
	Schedule 7.1.3 Part B	Initial Migration Plan
	 	 
	Schedule 7.1.3 Part C	List of ISIT not impacted by the transfer
	 	 
	Schedule 7.1.3 Part D	List of ISIT impacted by the transfer
	 	 
	Schedule 7.1.4	Products developed by Seller prior to Closing
    and referred to in Business Plan
	 	 
	Schedule 7.3.3	Form of the press releases to be issued
    upon execution of the Agreement
	 	 
	Schedule 7.3.9	Designation of the Acquired Real Property

 

    	v

    	 

    

 

ASSET PURCHASE
AGREEMENT

 

This
ASSET PURCHASE AGREEMENT, dated as of November 26, 2014 (the "Agreement"), is made and entered into by and among
FLAMEL TECHNOLOGIES, a French corporation having its principal place of business at Parc Club du Moulin à Vent, 33 avenue
du Docteur Georges Lévy, Venissieux France 69693, registered with the registry of companies and trade of Lyon under number
379 001 530 (“FLAMEL” or the “Seller”), on one hand, and RECIPHARM PESSAC, a French
Société par Actions Simplifiée having its principal place of business at 5, rue Archimède,
33600 Pessac France, registered with the registry of companies and trade of Bordeaux under number 807 679 386 (the “Purchaser”),
on the other hand.

 

Capitalized
terms used but not otherwise defined in this Agreement shall have the meaning assigned to them in Schedule A (terms
defined herein in the singular having the same meaning when used in the plural and vice versa).

 

WITNESSETH:

 

WHEREAS,
FLAMEL is a specialty pharmaceutical company focusing on the development of safer and more efficacious formulations, tackling
unmet medical needs in the process. On the date hereof, FLAMEL focuses on (1) the development and licensing of proprietary drug
delivery platforms, (2) the development of novel, high-value products based on its drug delivery platforms and (3) the development,
approval, and commercialization of niche branded and generic pharmaceutical products in the U.S. FLAMEL’s proprietary drug
delivery platforms are intended for more effectively and safely administering medicines to patients, and include the Medusa technology,
Micropump (a technology that allows for the modified release of solid, oral dosage forms) as well derivatives of Micropump (including
TriggerLock and LiquiTime) (collectively, “FLAMEL Drug Delivery Platforms”). Most of the manufacturing, and
some of the development and scale-up for FLAMEL Drug Delivery Platforms and products based thereupon, take place in the facilities
owned by FLAMEL in Pessac, France, 11, avenue Gustave Eiffel (the “Pessac Facility”).

 

WHEREAS,
the business conducted at the Pessac Facility (the “Pessac Business”) consists of (i) the manufacturing of
the Product for commercial use as well as the manufacturing of other products, whether or not based upon FLAMEL Drug Delivery
Platforms, for research and development use, including clinical use and (ii) the conduct of non-commercial development activities
for FLAMEL Drug Delivery Platforms and products based thereupon.

 

WHEREAS,
after having conducted a regulatory, marketing, manufacturing, financial, legal and technical due diligence exercise, subject
to the limitations and exclusions contained in this Agreement and on the terms and conditions hereinafter set forth, the Purchaser
desires to purchase from the Seller, and the Seller desires to assign to the Purchaser, the assets, real estate and rights used
or held for use primarily in the conduct of the Pessac Business, together with certain related liabilities and contracts.

 

WHEREAS,
as part of the transaction, the Seller and the Purchaser also wish to enter into commercial arrangements as follows: (i) an agreement
for the supply of services by the Purchaser to the Seller, namely a Supply Agreement and a Service Agreement under the head of
a Master Service Agreement, (ii) a Transitional Services Agreement whereby Seller shall provide transitional services to Purchaser
for the operation of the Pessac Facility, (iii) a Quality Agreement, (iv) a Real Estate Transfer Deed providing for the transfer
of the Pessac Facility to the Purchaser.

 

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NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, the parties hereto hereby agree
as follows:

  

ARTICLE
I. PURCHASE, SALE AND ASSUMPTION OF LIABILITIES

 

		1.1	Purchase and
                                         Sale of the Acquired Assets.

 

		1.1.1	Acquired
                                         Assets. Upon the terms and subject to the
                                         conditions set forth in this Agreement, at the Closing and effective as of the Closing
                                         Date, Seller shall sell, assign, transfer, convey and deliver, free and clear of any
                                         Liens other than Permitted Liens, to Purchaser, and Purchaser shall purchase and acquire
                                         from Seller all of Seller's right, title and interest in the following assets, properties
                                         and rights owned or held by Seller on the Closing Date.

 

		(a)	all
                                         tangible assets (including all machinery, equipment, tools, spare and replacement parts
                                         and components, furnishings, furniture, office supplies, transport and logistical equipment,
                                         office and computer equipment and hardware, but excluding any such items constituting
                                         Acquired Real Property), used or held for use by Seller or any of its Affiliates primarily
                                         in the operation or conduct of the Pessac Business, as the same shall exist as of the
                                         Closing Date (the "Business Assets"), including without limitation the
                                         items listed in Part A of Schedule 1.1.1 (a), being understood
                                         that said list shall be regarded as an indication of the main items present on the Pessac
                                         Facility and does not preclude Purchaser to claim for the sale and transfer under this
                                         Agreement of any other furniture, office equipment, machinery, office supplies, tools,
                                         spare and replacement parts, communication equipment, computer hardware and other tangible
                                         personal property owned by Seller which are not listed in said Schedule for any reason
                                         provided they are primarily used in the Pessac Business as at the Closing Date.

 

For
the avoidance of doubt, Part A of Schedule 1.1.1 (a) includes any and all equipment and machinery
purchased by Seller under the GSK Agreements as well as any assets financed by GSK under the same agreements but which have become
the Seller’s property within the frame of, and in compliance with, the GSK Agreements. Part B of Schedule
1.1.1 (a) lists the equipment and machinery that were financed by GSK under the GSK Agreements and are not proprietary
to Seller but are GSK’s sole ownership as at the date of this Agreement; such items shall not be transferred to Purchaser
at Closing, but shall become Purchaser’s ownership under the terms and conditions provided for in the GSK Agreements.

 

		(b)	the
                                         goodwill and the clientele of the Pessac Business as a going concern (fonds de commerce)
                                         pursuant to this Agreement including, without limitation, the customer records, statistics
                                         and credit information data relating specifically to such clientele ;

 

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		(c)	all
                                         originals or, to the extent Seller is required to keep originals pursuant to applicable
                                         Law, copies of all laboratory and manufacturing books, files and records, including,
                                         ledgers, general, financial and accounting records, files, supplier invoices, of Seller
                                         that are used or held for use by Seller in the operation or conduct of the Pessac Business,
                                         as the same shall exist as of the Closing Date (the "Pessac Records"),
                                         without prejudice to the provisions of Section 7.3.5 hereof;

 

		(d)	the
                                         rights in the softwares listed in Schedule 1.1.1(d) subject to and in accordance
                                         with the inclusions and exclusions provided in such schedule, together with a non-exclusive,
                                         royalty free manufacturing and commercialization license (with the right to sublicense)
                                         of the Pessac Know-How (together, the “Acquired IP Rights”) as defined
                                         herein;

 

		(e)	the
                                         right to hold itself out as successor to the Pessac Business, together with the ''fonds
                                         de commerce" related to the foregoing assets, properties and rights;

 

All
of the assets, property and rights referred to in the preceding paragraphs of this Section 1.1.1 in each case as necessary for,
used in and dedicated to the conduct of the Pessac Business on the Closing Date are collectively referred to herein as the “Acquired
Assets”; provided, however, that the Acquired Assets do not include the Retained Assets.

 

		1.1.2.	Retained
                                         Assets. Notwithstanding the foregoing, the Acquired
                                         Assets shall not include any of the following (the “Retained Assets”):

 

		(a)	the
                                         corporate seals, certificates of incorporation, minute books, stock books, tax returns,
                                         books of account or other records relating to the corporate organization, maintenance
                                         and existence of the Seller which the Seller must retain pursuant to applicable Laws;

 

		(b)	cash
                                         on hand or in banks, cash equivalents and financial investments including without limitation
                                         cash, cash equivalents and financial investments used as collateral for liabilities relating
                                         to the Pessac Business;

 

		(c)	rights
                                         to security deposits and any prepaid expenses relating to the Pessac Business (including
                                         those that would carry over post-Closing);

 

		(d)	all
                                         rights and claims against third parties (including, without limitation, any rights under
                                         insurance contracts for claims caused by facts which have occurred prior to the Closing
                                         Date) pertaining to any Retained Assets or Retained Liability and all other rights related
                                         to Retained Assets and Retained Liabilities,

 

		(e)	subject
                                         to ARTICLE VIII, the rights to any claims of the Seller for any tax or social security
                                         refunds whatsoever arising in relation to the period prior to Closing;

 

		(f)	all
                                         contracts between solely Seller and its Affiliates and inter-company non trading receivables
                                         between Seller and its Affiliates;

 

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		(g)	all
                                         Business Receivables;

 

		(h)	any
                                         assets, properties or rights used and/or operated by the Seller located on the Pessac
                                         Facility but not primarily dedicated to the Pessac Business, as listed in Schedule
                                         1.1.2(h) that are, subject, however, to the rights granted to the Purchaser under
                                         the Ancillary Agreements;

 

		(i)	any
                                         assets, properties or rights used and/or operated by the Seller not located on the Pessac
                                         Facility that are not primarily dedicated to the Pessac Business,

 

		(j)	Intellectual
                                         Property Rights of the Seller, except for the Acquired IP Rights and the limited license
                                         rights granted to Purchaser under the Ancillary Agreements,

 

		(k)	all
                                         rights, claims and credits of Seller to the extent relating to any Retained Assets (including
                                         any such items arising under insurance policies, guaranties, warranties, indemnities
                                         and similar rights in favor of Seller in respect of any Retained Assets).

 

The
Parties acknowledge that exclusion of the Retained Assets from the scope of the Acquired Assets shall be without prejudice to
the rights of Purchaser or its Affiliates pursuant to the Transitional Services Agreement.

 

		1.2	Assumption
                                         of Contracts.

 

On
the terms and subject to the conditions set forth in this Agreement, at the Closing and effective as of the Closing Date, Seller
shall transfer and assign to Purchaser, and Purchaser shall assume and shall thereafter pay, perform and discharge as and when
due, the Assumed Contracts.

 

Except
as otherwise provided for herein, and subject to Section 7.1.1(a), "Assumed Contracts" shall mean all rights
and obligations under any contract, agreement, purchase order, bid, quotation, proposal or other document, commitment, arrangement,
undertaking, including, but not limited to, all rights under the contracts and orders listed in Schedule 1.2 hereto
(the “Material Contracts”), and all rights and obligations under such agreements arising after the date hereof,
in each case as necessary for, used in and dedicated to the conduct of the Pessac Business on the Closing Date.

 

		1.3	Assumption
                                         of Liabilities.

 

		1.3.1.	Assumed
                                         Liabilities. On the terms and subject to the conditions set forth in this Agreement,
                                         at the Closing and effective as of the Closing Date, Seller shall transfer and assign
                                         to Purchaser, and Purchaser shall assume and shall thereafter pay, perform and discharge
                                         as and when due, the Assumed Liabilities.

 

“Assumed
Liabilities” is defined, subject to the cut-off rules set forth in ARTICLE VIII, as (i) all Liabilities of Seller pursuant
to the terms of the Assumed Contracts for performance from and after the Closing, including any payments required to be made thereunder
accruing after the Closing, and any obligations of Seller to deliver Product following the Closing, and, in each case, excluding
Liabilities arising out of any breach of such Assumed Contract by Seller prior to Closing, (ii) all Liabilities arising in connection
with the conduct of the Pessac Business from and after the Closing, and (iii) any Liability for Taxes that will arise as a result
of the consummation of the transactions contemplated by this Agreement, including the Transfer Taxes.

 

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For
avoidance of doubt, the Assumed Liabilities shall not include any Liabilities expressly identified as Retained Liabilities.

 

		1.3.2.	Retained
                                         Liabilities. The Seller shall in no way be deemed to have transferred or assigned
                                         to Purchaser, and Purchaser shall not be obligated to assume and shall in no way be deemed
                                         to have assumed, any liabilities of the Seller other than the Assumed Liabilities (the
                                         “Retained Liabilities”), it being agreed that the Seller shall continue
                                         to pay, perform and discharge as and when due, the Retained Liabilities.

 

For
the avoidance of doubt, and subject to the provisions of ARTICLE VIII, Retained Liabilities include all Liabilities of Seller
other than the Assumed Liabilities with respect to (i) any current or former employees or agents of Seller and their compensation
and benefits, including any severance, retention, paid time off, vacation pay or similar payments due or that become payable in
connection with this Agreement through the Closing Date, (ii) bonus payments accrued through the Closing Date, (iii) all liabilities
of Seller for recalls and product liability claims with respect to Product sold prior to Closing and any adverse events with respect
thereto, (vi) any liability for Taxes arising as a result of or with respect to the Pessac Business or the Acquired Assets with
respect to any taxable period or portion thereof ending on or prior to the Closing Date, and (vii) any other liability for Taxes
of Seller, as well as (viii) for the avoidance of doubt, all Liabilities arising from (y) Actions of employees made redundant
under a redundancy plan (Plan de Sauvegarde de l’Emploi) implemented by Seller prior to the Closing Date, and (z)
Actions of employees at any time prior to or beyond the Closing Date claiming the transfer of its employment agreement to Purchaser
under Article L. 1224-1 of the French Labor Code.

 

		1.4	Acquired
                                         Inventory

 

On
the terms and subject to the conditions set forth in this Agreement, at the Closing and effective as of the Closing Date, Seller
shall sell, assign, transfer, convey and deliver, free and clear of any Liens other than Permitted Liens, to Purchaser, and Purchaser
shall purchase and acquire from Seller, all of Seller's right, title and interest in, to and under the Acquired Inventory as valued
in accordance with the terms of Schedule 2.1.3.

 

“Acquired
Inventory” is defined as all finished goods held by Seller as trading stock for supply in the course of the Pessac Business,
semi-manufactured or partly finished goods which are in the course of conversion, manufacture or assembly by the Seller into finished
products for supply in the course of the Pessac Business or are held by the Seller for such purpose, raw materials, components,
packaging supplies and work in progress of the Pessac Business on the Closing Date (including, subject to and in accordance with
the inclusions and exclusions provided in the Transitional Services Agreement, all records, documents and correspondence relating
thereto) all such finished goods, semi-manufactured or partly finished goods, raw materials, components, packaging supplies and
work in progress having a shelf life complying with shelf life required under the related Assumed Contract, but excluding (i)
any items forming part of the Acquired Real Property, (ii) the Retained Assets or (iii) any items located on the Pessac Facility
that is either (x) held by Seller on behalf of third parties as such items are listed in Part A of Schedule
1.4 (including the GSK Inventory) or (y) proprietary to Seller and retained by Seller as such items are listed in Part
B of Schedule 1.4.

 

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		1.5	Acquired
                                         Real Property

 

On
the terms and subject to the conditions set forth in this Agreement and the Real Estate Transfer Deed, at the Closing and effective
as of the Closing Date, Seller shall sell, assign, transfer, convey and deliver, free and clear of any Liens other than Permitted
Liens, to Purchaser, and Purchaser shall acquire from Seller all of Seller's rights, title and interest in and to the Acquired
Real Property (including all records, and documents relating thereto).

 

 

ARTICLE
II.Consideration

 

		2.1	Closing
                                         Purchase Price

 

		2.1.1.	The
                                         aggregate consideration to be paid for the Acquired Assets shall be equal to FOUR MILLION
                                         SIX HUNDRED THOUSAND EUROS (€4 600 000) (the "Acquired Assets Purchase
                                         Price");

 

		2.1.2.	The
                                         aggregate consideration to be paid for the Acquired Real Property shall be equal to SIX
                                         MILLION EUROS (€ 6 000 000) (the "Acquired Real Property Purchase
                                         Price");

 

		2.1.3.	The
                                         aggregate consideration to be paid for the Acquired Inventory shall be determined as
                                         follows (the "Acquired Inventory Purchase Price"):

 

		(a)	No later
                                         than five (5) Business Days prior to the date scheduled for the Closing, Seller shall
                                         deliver to Purchaser an estimate of the Acquired Inventory as of the Closing Date (the
                                         "Acquired Inventory Base Purchase Price"), which shall be prepared by
                                         Seller in good faith in accordance with the principles, methodologies, and line items
                                         set forth on Schedule 2.1.3 hereto and, to the extent applicable, in accordance
                                         with applicable French GAAP; provided, that in the event of a conflict between French
                                         GAAP and the principles, methodologies, and line items set forth on Schedule 2.1.3
                                         hereto, the principles, methodologies, and line items set forth on Schedule
                                         2.1.3 hereto shall control (collectively, the “Methodology for Inventory
                                         Valuation”). Simultaneously with the delivery of the Acquired Inventory Base
                                         Purchase Price, Seller shall deliver to Purchaser detail listing of such Acquired Inventories
                                         and appropriate documentation sufficient to confirm the accuracy of the Acquired Inventory.

 

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		(b)	The
                                         Acquired Inventory Base Purchase Price shall be updated as of the last business day immediately
                                         preceding the Closing Date (the “Determination Date”) to reflect the
                                         Acquired Inventory, as follows. On the Determination Date, Seller will (x) cause a physical
                                         inventory to be taken of the semi-finished and finished goods Inventory related to the
                                         Product at the Pessac Facility, (y) appropriate documentation sufficient to confirm the
                                         accuracy of the remaining Acquired Inventory and (z), obtain a list of all Inventory
                                         held at any third-party location as of the Determination Date. Seller and Purchaser shall
                                         have the right to have representatives present during the physical inventory, and shall
                                         mutually agree to the amount of the Inventory as of the Closing Date based on the results
                                         of the physical inventory, as supplemented by the list of Inventory held at any third-party.
                                         Upon agreement of the Parties on the purchase price for the Acquired Inventory, the Acquired
                                         Inventory Purchase Price shall be final, binding and conclusive on the Parties.

 

The
sum of the Acquired Assets Purchase Price, the Acquired Real Property Purchase Price and the Acquired Inventory Purchase Price
is being referred to herein as the "Closing Purchase Price".

 

		2.2	Payment
                                         of the Closing Purchase Price

 

The Closing Purchase Price
shall be paid by Purchaser to Seller on the Closing Date in Euros by wire transfer of immediately available funds to the account
of Seller, such account to be designated at least three (3) Business Days prior to the Closing Date.

  

		2.3	Allocation
                                         for Purposes of the French Commercial Code

 

 

		a)	For
                                         purposes of Articles L. 141-5 et seq. of the French Commercial Code, the amount of FOUR
                                         MILLION SIX HUNDRED THOUSAND EUROS (€4,600,00.00)
                                         (being the portion of the Acquired
                                         Assets Purchase Price paid for the assets of the fonds de commerce) shall be allocated
                                         as follows:

 

	Intangible
    Assets	€
    1.00
	Tangible
    Assets	€
    4,599,999.00

 

The
Parties acknowledge that the above allocation is provided solely for purposes of Articles L. 141-5 et seq. of the French Commercial
Code and that neither Party shall be entitled to rely thereon for any reason whatsoever.

 

		b)	The
                                         Parties hereby waive all rights to have a portion of the Closing Purchase Price set forth
                                         in Sections 2.1.1 held in escrow for the period running from the Closing Date until the
                                         end of the time period for creditors to exercise their rights of objection under Article
                                         L.141-14 and seq. of the French Commercial Code (Code de Commerce). Seller shall
                                         take any and all necessary steps and shall pay such amount due to satisfy such objecting
                                         creditors within sixty (60) days from the Closing Date. The Parties hereby fully and
                                         definitely, discharge legal counsels who have negotiated, prepared and drafted this Agreement
                                         from all and any liability whatsoever with respect to the potential consequences of such
                                         a waiver.

 

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	 	c)	The Parties acknowledge and agree that the amount set forth in Section 2.1.1 and in paragraph a) of this section 2.3 is the total consideration payable for the Acquired Assets including the goodwill and the clientele of the Pessac Business as a going concern (fonds de commerce) as at the Closing Date, and accordingly that such amount will be subject to registration duties (droits d’enregistrement) (article 719 of the French Tax Code) which will be payable by the Purchaser. The Purchaser agrees to timely file the appropriate declarations and pay any registration duties (droits d’enregistrement) owing, and provide proof of such declaration and payment upon request of Seller. The Parties acknowledge that they have been informed of the sanctions applicable in the event of any insufficiency or intentional misstatement of the Acquired Assets Purchase Price and the Acquired Inventory Base Purchase Price agreed to by the Parties and any false declarations of sincerity with respect thereto. The Parties declare that this Agreement is neither modified by nor contradicted by any other agreement between the Parties increasing the Acquired Assets Purchase Price and the Acquired Inventory Base Purchase Price. 

 

ARTICLE
III.CONDITIONS PRECEDENT

 

		3.1	[Intentionally
                                         omitted]

 

		3.2	Conditions
                                         to Obligations of the Purchaser.

 

The
obligations of the Purchaser to consummate the transactions contemplated by this Agreement is further subject to the fulfillment,
at or prior to the Closing, of the following additional conditions (which may be waived in writing in whole or in part by the
Purchaser in its sole discretion):

 

		o	Provision
                                         by Seller of a certificate whereby Seller declares and warrants that the Migration Systems
                                         have been subjected to the Initial Migration Plan and have been subjected to a non-regression
                                         testing process, as provided for under paragraph 7.1.3 hereof, in the form attached as
                                         Schedule 3.2.

 

		3.3	Conditions
                                         to Obligations of the Seller.  

 

The
obligations of the Seller to consummate the transactions contemplated by this Agreement are further subject to the satisfaction,
at or prior to the Closing, of the following additional conditions (all or any of which may be waived in writing in whole or in
part by the Seller in its sole discretion):

 

		o	Appointment
                                         of a Pharmacist in charge (pharmacien responsable) for Pessac Facility by Purchaser.

 

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		3.4	Further
                                         condition to Closing for the Seller and the Purchaser. Material Adverse Change.

 

If
there has occurred a Material Adverse Change between the date of signature hereof and the Closing Date, no Party will be obligated
to carry out the Closing pursuant to ARTICLE IV and either Party may terminate this Agreement by written notice to the other Party,
provided that to exercise such right of termination, the Party claiming that a Material Adverse Change has occurred shall submit
reasonable evidence thereof to the other Party together with its notice of termination.

 

If
the right to terminate is exercised pursuant to this paragraph 3.4, neither Party shall have any right of recourse against the
other Party for any costs or expenses incurred in the context of this Agreement and the Transactions contemplated hereby.

 

Neither
the Purchaser nor the Seller may waive the conditions set forth in this paragraph 3.4 without the prior written consent of the
other party.

 

ARTICLE
IV.CLOSING

 

		4.1	Closing.

 

The
Closing of the Transaction shall take place in Paris at the offices of FIDAL, Tour Prisma, 4-6, avenue d'Alsace, 92982 PARIS LA
DEFENSE CEDEX, France, at 10 AM, local time, on December 1st, 2014 subject to the conditions precedent set forth in ARTICLE III
(other than conditions with respect to actions the respective Parties will take at the Closing itself) being satisfied on such
date. Should such conditions not be fulfilled by December 1st, 2014, then Closing shall be postponed and take place
within five (5) calendar days following the satisfaction of the conditions set forth in ARTICLE III (other than conditions with
respect to actions the respective Parties will take at the Closing itself), or at such other time, date or place as shall be mutually
agreed upon in writing by the Parties, provided that if such date is not a Business Day, the Closing shall take place on the next
succeeding Business Day (the date on which the Closing shall take place being referred to as the "Closing Date").

 

		4.2	Closing
                                         Deliveries. 

 

At
the Closing, all of the events listed below shall occur, each event being conditional upon the occurrence of all of the others:

 

		4.2.1.	Deliveries
                                         by the Seller.  The Seller shall deliver or make available to the Purchaser (or procure
                                         the delivery or the making available of, as the case may be) the following:

 

		o	certified
                                         copies of the organizational documents of Seller and to the extent required, original
                                         powers of attorney or other proof of authorization for the signatories of this Agreement
                                         and any and all documents to be executed and/or exchanged for implementing the Transaction;

 

		o	counterparts
                                         of all Ancillary Agreements substantially in the form attached in Schedule 4.2.1
                                         (i) (a) to (f) hereto executed by the Seller;

 

		o	counterpart
                                         of the Option Agreement substantially in the form attached in Schedule 4.2.1(ii)
                                         hereto executed by the Seller;

 

		o	the
                                         joint notification to Agence Nationale de Sécurité du Médicament
                                         et des Produits de Santé as of the Closing Date as the effective date of transfer
                                         to the Purchaser of the pharmaceutical authorization relating to the Pessac Facility
                                         in accordance with applicable Laws, duly signed by the pharmacist in charge (pharmacien
                                         responsable) of the Seller

 

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		o	evidence
                                         that, in accordance with applicable Laws, the relevant employee representative bodies
                                         have issued an advice (avis) with regard to the Transaction;

 

		o	evidence
                                         that the French companies Technologie Servier and Laboratoires Servier consent and authorize
                                         the transfer of the agreements listed in Schedule 4.2.1 (iii) (the “Servier
                                         Agreements”) to the Purchaser;

 

		o	a
                                         certificate reiterating the Seller’s representations and warranties referred to
                                         in ARTICLE V as true and correct on Closing as though made on the Closing Date (the “Certificate”);

 

		o	an
                                         invoice with respect to the sale of the Acquired Inventory;

 

		o	the
                                         joint notification to be provided to GSK under the Consent to Assignment of Supply Arrangement
                                         signed between the Parties and GSK on November 26, 2014 duly signed by Seller;

 

		o	to
                                         the extent necessary, any other appropriate documents, duly executed by Seller, transferring
                                         in accordance with applicable Laws the Acquired Inventory and the Acquired Assets, in
                                         the form customary with respect to such types of assets, duly executed by Seller (such
                                         other documents, the “Asset Transfer Documents") (it being understood
                                         and agreed between the Parties that the Asset Transfer Documents shall not (x) include
                                         any representation or warranty other than as required by Law and in no event shall any
                                         such representation or warranty give more right to Purchaser than the representations
                                         and warranties contained in this Agreement, and (y) in no event shall any provision in
                                         any Asset Transfer Document impose upon the Purchaser any obligations or liabilities
                                         to Seller or its Affiliates in relation to the relevant transfer, assignment or assumption
                                         other than as expressly contemplated by this Agreement).

 

		4.2.2.	Deliveries
                                         by the Purchaser. The Purchaser shall deliver to the Seller at the Closing the following:

 

		o	certified
                                         copies of the organizational documents of Purchaser and to the extent required, original
                                         powers of attorney or other proof of authorization for the signatories of this Agreement
                                         and any and all documents to be executed and/or exchanged for implementing the Transaction

 

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		o	the
                                         Closing Purchase Price provided for under Section 2.21 less (i) an amount of FIVE HUNDRED
                                         AND FIFTY THOUSAND EUROS (€ 550 000), as compensation from Seller for the retirement
                                         benefits, pensions or accruals owed to any Transferred Employees retiring after the Closing
                                         Date and (ii) TWENTY THOUSAND THREE HUNDRED NINETY NINE EUROS AND FIFTY CENTS (€
                                         20 399.50) as participation of Seller to premium to the Pollution and Remediation
                                         Legal Liability Policy (PARLL) taken out by Purchaser, to be wired on the account of
                                         the Seller the details of which will be provided to Purchaser no later than ten (10)
                                         days prior to Closing;

 

		o	counterparts
                                         of all Ancillary Agreements substantially in the form attached in Schedule 4.2.1
                                         (i) (a) to (f) hereto executed by the Purchaser;

 

		o	counterpart
                                         of the Option Agreement substantially in the form attached in Schedule 4.2.1(ii)
                                         hereto executed by the Purchaser;

 

		o	all
                                         relevant documentation confirming the appointment of the pharmacist in charge (pharmacien
                                         responsable) of the Purchaser;

 

		o	the
                                         joint notification to Agence Nationale de Sécurité du Médicament
                                         et des Produits de Santé as of the Closing Date as the effective date of transfer
                                         to the Purchaser of the pharmaceutical authorization relating to the Pessac Facility
                                         in accordance with applicable Laws, duly signed by the pharmacist in charge (pharmacien
                                         responsable) of the Purchaser;

 

		o	the
                                         joint notification to be provided to GSK under the Consent to Assignment of Supply Arrangement
                                         signed between the Parties and GSK on November 26, 2014 duly signed by Purchaser;

 

		o	a
                                         certificate reiterating the Purchaser’s representations and warranties referred
                                         to in ARTICLE VI as true and correct on Closing as though made on the Closing Date.

 

		4.2.3.	Execution
                                         of Real Estate Transfer Deed by the Parties. The Parties shall execute the Real Estate
                                         Transfer Deed at the Closing, and perform any and all actions and sign any and all documents
                                         that may prove necessary for carrying out the transfer of the Acquired Real Property
                                         to Purchaser in compliance with the Real Estate Transfer Deed.

  

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ARTICLE
V. REPRESENTATIONS AND WARRANTIES OF the Seller

 

Except
as set forth in the disclosure schedules referred to in each of the paragraph or section of this ARTICLE V (the “Disclosure
Schedules”), the Seller represents and warrants to the Purchaser that all of the statements contained in this ARTICLE
V are true and correct at the Effective Date unless the statement refers to a specific date in which case it is made solely with
respect to such date. For purposes of the representations and warranties of the Seller contained herein, disclosure, in any paragraph
or section of this ARTICLE V, of any facts or circumstances shall be deemed to be adequate response and disclosure of such fact
or circumstances with respect to all representations or warranties by the Seller calling for disclosure of such information. The
“Effective Date” shall be, up to Closing, the date of execution of this Agreement; subject to the contents
of the Certificate referred to in paragraph 4.2.1 with respect to the reiteration of the Seller’s representations and warranties
referred to in ARTICLE V, the “Effective Date” shall be the Closing Date. For the avoidance of doubt, and subject
to Section 6.5, when any Disclosure Schedule refers to a document, such reference shall be deemed a reference to the full content
of such document to the extent such document was included in the DR Documents.

 

		5.1	Organization
                                         and Standing; Power and Authority.

 

Seller
is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of France. It has full
corporate power and authority to enter into and perform this Agreement or any other document implementing the Transaction, including
without limitation the Ancillary Agreements (all together referred to as the “Transaction Documents”) as referred
to into this Agreement. Whenever required under applicable Law, the competent corporate body of Seller has duly authorized the
execution of this Agreement or any of the Transaction Document.

 

		5.2	Authority
                                         and Binding Effect.

 

The
Transaction Documents have been, or upon execution thereof will be, duly executed and delivered by Seller, and constitute the
valid and binding obligations of Seller, enforceable against Seller, in accordance with their respective terms. No insolvency
proceedings against Seller regarding the Acquired Property are pending which would prevent or jeopardize the effectiveness of
the Transaction Documents, nor has Seller been informed by any third party of the intent of such party to commence any such insolvency
proceedings against Seller.

 

		5.3	Conflicts;
                                         Defaults.

 

Neither
the execution, nor delivery nor performance of the Transaction Documents by Seller will violate any of the terms of the articles
of incorporation, the by-laws or of other organizational documents of Seller.

 

		5.4	Governmental
                                         Approvals.

 

The
execution, delivery and performance of this Agreement by Seller do not and will not require any consent, approval, authorization
or other order of, action by, filing with or notification to, any Governmental Authority, except (i) as described in Schedule 5.4,
and (ii) any notification or filing required to be made by Purchaser under this Agreement, and (iii) where failure to
obtain such consent, approval, authorization or action or to make such filing or notification, would not prevent or materially
delay the consummation by Seller of the transactions contemplated by this Agreement and (iv) as may be necessary as a result
of any facts or circumstances relating solely to Purchaser.

 

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		5.5	Acquired
                                         Assets and Acquired Inventory.

 

		5.5.1.	Except
                                         as disclosed in Schedule 5.5.1, Seller is the sole owner of and has good
                                         title to the Acquired Assets and Acquired Inventory which are free and clear of any other
                                         third party rights (except for the ordinary customary retention rights), and Seller is
                                         entitled to freely dispose of the Acquired Assets and Acquired Inventory.

  

		5.5.2.	The
                                         Acquired Property and Assumed Contracts, together with the rights and assets made available
                                         pursuant to the Ancillary Agreements, include all the rights and assets necessary for,
                                         used in and dedicated to the conduct of the Pessac Business in the same manner as it
                                         was conducted as at the Effective Date (the “Required Assets”). Seller
                                         retaining any materials or equipment removed from the Pessac Facility prior to Closing
                                         and such assets, properties or rights listed in Schedule 1.1.2(h), shall
                                         not by any mean or in any measure affect or modify the operation of the Pessac Business
                                         as operated as at the date of this Agreement.

 

		5.5.3.	The
                                         Acquired Assets, along with the rights under the Assumed Contracts (including the GSK
                                         equipment as listed in Part B of Schedule 1.1.1 and the GSK
                                         inventory as listed in Part A of Schedule 1.4 are complete and sufficient
                                         for carrying on the Pessac Business as conducted at Closing Date in accordance with current
                                         good manufacturing practices (cGMP) / current good laboratory practices (cGLP) and pursuant
                                         to the relevant specifications and requirements of the Supply Agreement, the Services
                                         Agreement, the GSK Agreements (to the exclusion of the payments to be made under any
                                         of the GSK Agreements) and any Material Contract and the Acquired Assets and Acquired
                                         Inventory are in normal operational condition having regard to the normal wear and tear
                                         and, up to the Effective Date, have been properly maintained and/or replaced in the ordinary
                                         course of business. In case Required Assets should not be listed on Part A or
                                         Part B of Schedule 1.1.1 for any reason, Seller shall either transfer
                                         said missing machinery, equipment, tools, spare and replacement parts and components,
                                         furnishings, furniture, office supplies, transport and logistical equipment, office,
                                         computer equipment and hardware without further cost or expenses to Purchaser under the
                                         terms and conditions of this Agreement or otherwise make said missing machinery, equipment,
                                         tools, spare and replacement parts and components available to Purchaser in the same
                                         manner they were made available to the Pessac Business prior to the Closing.

 

		5.5.4.	Schedule 5.5.4
                                         (a) contains a list of Acquired Assets used for the conduct of the Pessac Business
                                         which is not owned by Seller but has been leased from a third party; Schedule 5.5.4(b)
                                         contains a summary of the respective lease agreements.

 

    	13

    	 

    

  

		5.5.5.	The
                                         Acquired Assets and Acquired Inventory are not subject to any security or other rights
                                         in favor of Seller or any Affiliate of Seller.

 

		5.6	Acquired
                                         Real Property.

 

		5.6.1.	Seller
                                         is the sole owner and has full and good title to the Acquired Real Property free of any
                                         third party rights and, subject to the preemption right (droit de preemption urbain
                                         renforcé) of the Communauté Urbaine de Bordeaux pursuant to article
                                         L211-1 of the French Code de l’urbanisme, Seller is entitled to freely dispose
                                         of the Acquired Real Property and, upon the Closing, Purchaser shall be vested with the
                                         same rights and title.

 

		5.6.2.	The
                                         Acquired Real Property is not subject to any security or other rights in favor of Seller
                                         or any Affiliate of Seller.

 

		5.6.3.	Seller
                                         has taken, or shall have taken at Closing, any and all steps necessary to ensure transfer
                                         of legal title to the Acquired Real Property to Purchaser, including without limitation
                                         the withdrawal or resigning by any Governmental Authorities, especially the City of Pessac
                                         and the Communauté Urbaine de Bordeaux from their preemption right to purchase
                                         the Acquired Real Property.

 

		5.7	Intellectual
                                         Property rights.

 

		5.7.1.	Subject
                                         to the provisions of the Transitional Services Agreement, the Acquired IP Rights, together
                                         with the Intellectual Property Rights licensed to Purchaser under the GSK Agreements?
                                         are sufficient and necessary to conduct the Pessac Business as presently conducted and,
                                         to the Sellers’ best knowledge, their use does not infringe any rights of third
                                         parties.

 

		5.7.2.	Seller
                                         has obtained, or shall have obtained at Closing, when required, all consents to the assignment
                                         of the material IP Rights as listed in Schedule 5.7.2 (the “Material
                                         IP Rights”), to Purchaser. Seller shall hold Purchaser. harmless against the
                                         consequences of any claims by third parties that any Acquired IP Rights was transferred
                                         without their consent (when such consent was required either by contract or by Law).

 

		5.7.3.	Seller
                                         is the sole owner of the Acquired IP Rights (other than those that represent IP License
                                         Rights) and has good and valid title to the Acquired IP Rights which are free of any
                                         rights of third parties, and Seller is entitled to freely assign the Acquired IP Rights
                                         (other than those that represent IP License Rights).

 

		5.7.4.	Seller
                                         has not received any written notice of, nor is he aware of, any infringement or unlawful
                                         use of any of the Acquired IP Rights by third parties.

 

		5.7.5.	With
                                         respect to the Acquired IP Rights all fees have been paid when due and all other measures
                                         necessary for the support and maintenance of the Acquired IP Rights have been taken in
                                         full and on time, except where failure to do so would not affect the conduct of the Pessac
                                         Business.

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		5.7.6.	Other
                                         than as contemplated under the Transaction Documents, Seller is not a party to any license
                                         agreements regarding the Acquired IP Rights as licensor.

 

		5.8	Contracts.

 

		5.8.1.	Seller
                                         has obtained, or shall have obtained at Closing, when required, all consents to the assignment
                                         of the Material Contracts to Purchaser.

 

		5.8.2.	Each
                                         Material Contract is in full force and effect and Seller has performed in all material
                                         respects, all obligations required to be performed by Seller under the Material Contracts
                                         and is not in default under any Contract, nor has Seller been notified by a party to
                                         a Material Contract of any default of Seller

 

		5.8.3.	None
                                         of the Material Contracts has been terminated, nor has Seller been informed by a party
                                         to a Material Contract of the intent of such party to terminate any such Material Contract.

 

		5.8.4.	Schedule 5.8.4
                                         sets forth a list of all suppliers to the Pessac Business.

 

		5.8.5.	Schedule 5.8.5
                                         contains a list of all customers of the Pessac Business.

 

		5.8.6.	The
                                         conclusion or performance of the Transaction Documents will neither result in a termination
                                         of any of the Material Contracts nor in any major amendments of the terms and conditions
                                         of the Material Contracts, being understood that prior to the Execution date, the GSK
                                         Agreements have been amended effective on the Closing Date as agreed between the parties
                                         and GSK.

 

		5.8.7.	Other
                                         than the Material Contracts, there exist no lease or any other agreements regarding the
                                         Pessac Business with a term of more than one (1) year which in a single case result
                                         in yearly expenses of more than EUR 10,000.

 

		5.8.8.	There
                                         are no claims of customers for breach of product or service warranties regarding the
                                         Pessac Business currently pending.

 

		5.9	Conduct
                                         of Business.

 

		5.9.1.	Since
                                         December 31, 2013, no Material Adverse Change has occurred.

 

		5.9.2.	Since
                                         January 1, 2014 until the date hereof, Seller has not

 

		(b)	sold,
                                         transferred or otherwise disposed of, other than in the ordinary course of business,
                                         any assets, properties or rights or cancelled any claims relating to and which are material
                                         to the Pessac Business,

 

		(c)	entered
                                         into any agreement with any customer, distributor or representative, or any other transaction,
                                         other than any of the Material Contracts, which is material to the Pessac Business, or
                                         which does not fall within the ordinary course of the business and is not transferred
                                         by Seller to Purchaser under this Agreement;

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		(d)	disposed
                                         of or permitted the elapse of any Acquired IP Rights, or disposed of or permitted the
                                         elapse of any agreement under which Seller is entitled to any Acquired IP Rights;

 

		(f)	made any
                                         changes in the warranty or other policies regarding service, support or maintenance of
                                         the Acquired Assets or the products manufactured in the Pessac Business;

 

		(g)	granted
                                         any general increase in the compensation or benefits of officers or employees related
                                         to the Pessac Business other than in the ordinary course of business (including any such
                                         increase pursuant to any bonus, pension, profit-sharing, severance, other plan or commitment).

 

		5.9.3.	Subsidies:
                                         With regard to the Acquired Property, Seller has not entered into any agreement that
                                         could lead to the repayment or non-payment of a grant or a subsidy or allowance that
                                         would have been or that should be paid to Seller. Seller declares and warrants that all
                                         allowances or subsidies that have been paid to Seller over the last six years preceding
                                         the Closing Date shall not give rise to any repayment or reimbursement by Purchaser.

 

		5.10	Litigation.

 

		5.10.1.	There
                                         is no action, suit, administrative or other proceeding, arbitration or litigation pending,
                                         nor has Seller been informed by any third party of the intent of such third party to
                                         bring any such action, suit, administrative or other proceeding, arbitration or litigation,
                                         against Seller with respect to the Pessac Business, including without limitation any
                                         action alleging that the conduct of the Pessac Business constitutes an infringement of
                                         any Intellectual Property Rights of a third party or which seeks to prevent the consummation
                                         of any of the Transaction Documents.

 

		5.10.2.	No
                                         specific guarantee has been given for any products or the Product under the terms of
                                         which Purchaser could be liable beyond the limits and duration provided under the Assumed
                                         Contracts.

 

		5.10.3.	No
                                         proceeding regarding the Pessac Business is pending before any court or other Governmental
                                         Authority.

 

		5.10.4.	There
                                         are no claims pending against Seller regarding product liability, non-conformity, hidden
                                         defects or defective products resulting from the conduct of the Pessac Business.

 

		5.11	Permits,
                                         Licenses, Authorizations.

 

		5.11.1.	Schedule
                                         5.11.1 contains a list of the material permits, licenses and authorizations,
                                         which are required for the operation of the Pessac Business according to the Law and
                                         issued to Seller by appropriate Governmental Authorities upon appropriate filing with
                                         regard to the Pessac Business. Without prejudice to the restrictions and limitations
                                         contained in any other provision of this ARTICLE V, Seller is in compliance with each
                                         of such permits, licenses and authorizations, except to the extent any such non compliance
                                         would not have a material adverse effect on the operation of the Pessac Facility and/or
                                         the Pessac Business.

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		5.11.2.	Without
                                         prejudice to the restrictions and limitations contained in any other provision of this
                                         ARTICLE V (including, but not limited to, those contained in Section 5.13), the Pessac
                                         Business as operated by Seller is in compliance in all-material respects with all applicable
                                         Laws and, as of the Effective Date, there is no commitment related to the making or financing
                                         of any investment in the Pessac Business and/or the Pessac Facility to any Governmental
                                         Authority, including without limitation any engagement, undertaking or warranty on the
                                         level of employment at the Pessac Facility.

 

		5.12	Employees
                                         and Labor Matters.

 

		5.12.1.	Schedule
                                         5.12.1 Part A is a complete list of all the employees being transferred
                                         to Purchaser hereunder (the “Transferred Employees”), setting forth
                                         their names, salary, position and date of the beginning of the employment; Schedule
                                         5.12.1 Part B lists the additional compensation owed to the Transferred
                                         Employees.

 

		5.12.2.	All
                                         the employees dedicated to the Pessac Business, but subject to Schedule 5.12.12,
                                         are listed in Schedule 5.12.1. There is no other employee or no
                                         individual or any Person that may claim for the transfer of his employment agreement
                                         to the Purchaser further to the completion of the Transaction.

 

		5.12.3.	Schedule
                                         5.12.3 set forth a complete list of the collective bargaining agreements (convention
                                         collective et accords collectifs), internal rules (règlement intérieur),
                                         to the extent applicable in respect of the Transferred Employees.

 

		5.12.4.	There
                                         are no pension and employee Benefit Plans applicable to the Transferred Employees
                                         other than as disclosed in Schedule 5.12.3 and Schedule 5.12.1
                                         Part B.

 

		5.12.5.	Seller
                                         has complied in all material respects with all pension and employee Benefit Plans applicable
                                         to the Transferred Employees.

 

		5.12.6.	The
                                         Transferred Employees do not benefit from any termination, severance or retirement payment,
                                         or any payment for breach of contract, or from retirement or life insurance benefits
                                         or schemes, or from any undertakings in this respect, other than as required by applicable
                                         Laws, the collective bargaining agreements or as set forth in Schedule 5.12.1.

 

		5.12.7.	The
                                         Pension Liabilities pertaining to the Transferred Employees are set forth in Schedule
                                         5.12.7.

 

		5.12.8.	Seller
                                         has complied in relation to each Transferred Employee in all material respects with all
                                         statutes, regulations, collective agreements, terms and conditions of employment, internal
                                         rules relating to their working conditions and has complied in relation to each Transferred
                                         Employee to all its obligations under the applicable Law in respect of employment and
                                         the payment of social security, retirement and unemployment contributions and similar
                                         Taxes.
	 	 	 

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		5.12.9.	Except
                                         as disclosed in Schedule 5.12.12, no employment agreement regarding an
                                         employment in the Pessac Business commencing on a date following the execution of this
                                         Agreement has been concluded.

 

		5.12.10.	At
                                         the Effective Date, there exists no agreements between Seller and any Transferred Employees
                                         that provide either for (i) any additional compensation for the benefit of such Transferred
                                         Employee (other than as listed in Schedule 5.12.1 Part B
                                         or (ii) for the employment of any such Transferred Employee within the Seller’s
                                         organization after the Closing Date.

 

		5.12.11.	The
                                         Pessac employees who were granted free shares (actions gratuites) of the Seller
                                         with a vesting date (période d’acquisition) expiring after the Closing
                                         Date have been allowed, per a specific Board resolution of Seller, to keep the benefit
                                         of such free share allocation despite the transfer of their employment agreement to the
                                         Purchaser pending the vesting period; Seller shall hold Purchaser harmless against any
                                         claims of any such Transferred Employees in relation to such free shares allocation and
                                         the potential consequences that the Closing may have on such allocation or the subsequent
                                         holding of the Seller’s shares.

 

		5.12.12.	Since
                                         March 6, 2014, except for the Transferred Employees listed in Schedule 5.12.12,
                                         no employees of Seller primarily affected to the Venissieux business or of any Seller’s
                                         Affiliates has been transferred to the Pessac Business and/or Pessac Facility, and no
                                         Seller’s Employees primarily affected to the Pessac Facility and/or the Pessac
                                         Business have been transferred and/or assigned to other jobs and/or duties at Venissieux
                                         and/or Seller’s Affiliates in view of the completion of the Transaction.

 

		5.13	Environmental
                                         Matters. 

 

		5.13.1.	In
                                         respect of the Pessac Business and Pessac Facility (i) Seller is not subject to
                                         any outstanding written communication from a Governmental Authority alleging that Seller
                                         is not in compliance in any material respect with any Environmental Laws, and (ii) Seller
                                         holds and is in compliance in all material respects with all Environmental Permits; in
                                         particular and without limiting the foregoing, Seller has complied with the Governmental
                                         Authority requirement to build a pH neutralization system on effluent flow in 2014 at
                                         the Pessac Facility.

 

		5.13.2.	Schedule
                                         5.13.2 hereto contains (i) a list of material environmental Permits required
                                         for the conduct of the Pessac Business as now conducted (the “Environmental
                                         Permits”), (ii) a comprehensive description of the waste disposal practices
                                         of the Business, (iii) the list of material environmental instructions by Governmental
                                         Authorities received by Seller since January 1, 2010, in respect of the Pessac
                                         Business and Pessac Facility and (iv) a list of the location of all underground
                                         tanks, sumps or pits at the Pessac Facility currently used to contain hazardous materials
                                         on a continuous basis.

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		5.13.3.	The
                                         use of the Acquired Property in the Pessac Business as currently conducted are in compliance
                                         in all material respects with all Environmental Laws.

 

		5.13.4.	Seller
                                         has always transported waste from Pessac Facility to a place or a destination in accordance
                                         with its Environmental Permits and in accordance with Law and that such transportation
                                         has not give rise to any enquiries or Claims.

 

		5.13.5.	To
                                         the best of Seller’s knowledge, after having made reasonable inquiry for the purpose
                                         of this representation, the operations of Seller on the Pessac Facility have not been
                                         the source of any contamination of the soil.

 

		5.14	Tax
                                         Matters.

 

On
the Closing Date, there shall not be any encumbrances on any of the Acquired Property in connection with any failure (or alleged
failure) by the Seller to pay any Tax pertaining to the Pessac Business and/or the Pessac Facility.

 

 

		5.15	Insurance.

 

Schedule
5.15 sets out the details of the Seller’s insurance policies covering property damages with respect to the Pessac
Facility and product and professional liability with respect to the Pessac Business.

 

Seller
warrants that, up to the Effective Date, (i) all premiums due on the policies in respect of such insurance cover (the Policies)
have been paid, (ii) all the other conditions of the Policies have been performed and observed, (iii) none of the Policies has
or may become void or voidable as a result of an act or omission of the Seller,

 

Seller
shall indemnify and hold harmless Purchaser for any damages to the Pessac Facility and/or the Pessac Business usually covered
under said insurance policies, occurred or discovered after the Closing Date but having its cause prior to the Closing Date.

 

		5.16	Financial
                                         information 

 

The Business Plan provided by Seller,
as set forth in Schedule 5.16, for Purchaser to make its own opinion on the value of the Pessac Business,
has been prepared with the care of a prudent business man and was based upon a reasonable estimate of the costs and revenues of
the Pessac Business consistent with accepted practices and principles in the pharmaceutical industry and for the period of time
referred to in the said Business Plan and with regard to the information available as of the date on which it was last updated.

  

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ARTICLE
VI.REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

The Purchaser
represents and warrants to the Seller and the Seller as follows:

 

		6.1	Organization
                                         and Good Standing.

 

The
Purchaser is a corporation duly organized, validly existing and in good standing under the laws of France and has all requisite
corporate power and authority to conduct its business as now being conducted.

 

		6.2	Authorization
                                         - No Violations.

 

		6.2.1.	The
                                         execution and delivery by the Purchaser of this Agreement and the Ancillary Agreements
                                         and the performance by it of the Transaction have been (or, in the case of the Ancillary
                                         Agreements, will have been at the Closing Date) duly authorized by all necessary corporate
                                         action. Assuming valid execution by the other parties thereto, this Agreement and each
                                         of the Ancillary Agreements to which the Purchaser is a party hereunder, constitutes
                                         (or will constitute when signed) a valid and binding agreement of the Purchaser, enforceable
                                         against it in accordance with the terms hereof or thereof, subject to the Enforceability
                                         Exception.

 

		6.2.2.	The
                                         execution, delivery and performance by the Purchaser of this Agreement and the Ancillary
                                         Agreements to which it is a party and the consummation of the Transaction will not: (i)
                                         violate or conflict with any provision of the certificate of incorporation (or other
                                         constitutive documents) or by-laws (or other governing documents) of the Purchaser; (ii)
                                         materially breach, violate or constitute a default under or an event which would give
                                         rise to any right of termination or cancellation, in accordance with the express terms
                                         of any agreement, to which the Purchaser is a party, or by which the Purchaser or any
                                         of its properties or assets may be bound; (iii) violate or conflict with any Law applicable
                                         to the Purchaser or by which any of its properties or assets may be bound; or (iv) except
                                         as expressly envisaged in this Agreement, require any registration or filing by the Purchaser
                                         with, or any permit, license, exemption, consent, authorization or approval of, or the
                                         giving of any notice by the Purchaser to, any Governmental Authority.

 

		6.3	Availability
                                         of Funds

 

The
Purchaser has, as of the Closing Date, available cash to pay the Closing Purchase Price at the Closing Date and to pay any other
amounts payable pursuant to this Agreement and to effect the Transaction.

 

		6.4	No
                                         Claims or Litigation.  

 

There
are no suits, actions, claims, proceedings or investigations pending or, to the Purchaser's knowledge, threatened challenging
the validity of this Agreement, any of the Ancillary Agreements to which the Purchaser is or is to become a party, or the Transaction.

 

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		6.5	Investigation

 

Purchaser
acknowledges that it is relying on (i) the representations and warranties of the Seller contained in ARTICLE V and (ii) its own
investigation and analysis in entering into the transactions contemplated by this Agreement and the Transaction Documents. Purchaser
is knowledgeable about the industry in which the Pessac Business operates and is capable of evaluating the merits and risks of
the transactions contemplated by this Agreement and the Ancillary Agreements and has reasonably evaluated the economic risk of
such investment so far as the information disclosed by the Seller in the frame of the due diligence process are true, correct
and relevant. Purchaser has been afforded access to such books, records and DR Documents provided by the Seller in the due diligence
process, Pessac Facility and personnel designated by the Seller of the Pessac Facility for purposes of conducting a due diligence
investigation and has made its own opinion on the Transaction with regard to the information disclosed by Seller under this due
diligence process. For purposes of this paragraph, “DR Documents” means the documents made available to Purchaser
and its advisors in the electronic data room opened by the Purchaser during the due diligence process, an index of which is attached
as Schedule 6.5 for practical purpose. The DR Documents have been copied on a CD-rom, two originals of which have
been signed by both Parties and remitted to each of the Parties on the date hereof. On the Closing Date, a further CD-rom containing
additional documents delivered by the Seller to the Purchaser between the date hereof and the Closing Date, if any, will be exchanged
between the Parties. The Information contained in any DR Documents shall operate to qualify the representations made pursuant
to this Agreement, except (i) where the contents of any DR Document contradicts the contents of a Schedule, in which case the
terms and contents of the Schedules shall prevail and (ii) where any such DR Documents does not disclose the matter in such manner
and in such detail as to enable Purchaser to make an informed and accurate assessment of the matter concerned.

 

		6.6	Financial
                                         Projections.

 

As
part of the information disclosed to Purchaser prior to the execution of this Agreement, the management, employees or respective
advisors of Seller have given Purchaser access to projections, estimates, management analyses, budgets, and forecasts as well
as a Business Plan. Purchaser presumes that such information relies on assumptions made by Seller based upon fair and reasonable
estimate of the costs and revenues with regard to the information receive as of the Closing Date from any Person and acknowledges
that said Business Plan may vary beyond Closing Date further to any non predictable event as of the Closing Date or variation
of the general economic conditions.. 

 

		6.7	No
                                         Other Representations.

 

Neither
the Purchaser nor any other person or entity acting on behalf of the Purchaser, makes any representation or warranty, express
or implied other than those contained in this ARTICLE VI.

 

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ARTICLE
VII. COVENANTS

 

		7.1	Covenants
                                         of the Seller.

 

		7.1.1.	Conduct
                                         the Pessac Business until Closing

 

The
Seller, pending the Closing and except as otherwise agreed to in writing by the Purchaser, covenants and agrees
that the Pessac Business shall be conducted by the Seller in the ordinary course and in the same manner as heretofore conducted.
In particular:

 

		(a)	The
                                         Seller shall not sell, transfer, assign nor grant any Liens (other than Permitted Liens
                                         granted prior to the date hereof) or the right to use or otherwise dispose of any Acquired
                                         Property;

 

		(b)	The
                                         Seller shall not transfer or appoint any key Transferred Employees to any other positions
                                         in Seller’s organization or Affiliates and shall not replace any employee resigning
                                         from its position or dismissed by Seller before the Closing Date, unless otherwise agreed
                                         with Purchaser;

 

		(c)	The
                                         Seller shall not amend the compensation or otherwise materially alter the terms of employment
                                         of any of the Transferred Employees (other than normal recurring increases in the ordinary
                                         course of business or pursuant to plans, programs or agreements existing on the Execution
                                         Date;

 

		(d)	The
                                         Seller shall not enter into any agreements with any customer, distributor or representative,
                                         or any other transaction which is material to the Pessac Business and which does not
                                         fall within the ordinary course of the business;

 

		(e)	The
                                         Seller shall not enter into, terminate, modify or cancel any contract constituting a
                                         Material Contract other than in the ordinary course of business;

 

		(f)	The
                                         Seller shall not dispose of or permit the elapse of any Intellectual Property Rights
                                         which are material to the Pessac Business, or dispose of or permit the elapse of any
                                         agreement under which Seller has any right or license which is material to the Pessac
                                         Business

 

		(g)	The
                                         Seller shall maintain and service the Acquired Assets consistent with past practice.

 

		7.1.2.	Defense
                                         of the Patents after Closing

 

The
Seller shall, at no cost to the Purchaser, pay any and all fees and charges relating to the Flamel Patent Rights in any country
where the Flamel Patent Rights have been registered in accordance with the GSK License Agreement. Schedule 7.1.2
sets forth the list of the Flamel Patents Rights and their country of registration as at the date hereof.

 

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		7.1.3.	Information Systems and Information
Technology (“ISIT”)

 

Schedule
7.1.3 Part A lists the systems composing the Information Systems and Information Technology (ISIT) relating
to the Pessac Business. Such systems are broken down in two categories: (i) systems that exist at the Pessac Facility and which
will not be disrupted by the transfer of the Pessac Business at Closing, as detailed in Schedule 7.1.3 Part C
(the “Operational Systems”) and (ii) systems that are necessary for the operations of the Pessac Business and
that will be impacted by the transfer (the “Migration Systems”) which are all the ISIT
systems identified in Schedule 7.1.3 Part A other than the Operational systems. The Migration
Systems will be subjected to a migration plan to be completed by Seller between Signing and Closing, the details of which
has been agreed between the Parties and is detailed in Schedule 7.1.3 Part B (the “Initial
Migration Plan”).

 

Seller
represents and warrants that the ISIT that shall have been installed at the Pessac Facility at Closing (including Operational
Systems and Migration Systems) shall, subject to the services to be rendered by Seller to Purchaser after Closing under the Transitional
Services Agreement, operate in substantially the same manner as the ISIT used in the Pessac Business immediately prior to the
Closing Date.

 

Seller
further represents that (i) the migration plan in respect of the Migration Systems will be implemented in compliance with the
Initial Migration Plan and (ii) the Migration Systems will, upon completion of the relevant MSN (as detailed in Schedule
7.1.3 Part A and prior to the Closing Date, be subjected to a non-regression testing process as detailed in Schedule
7.1.3 Part D.

 

In
case of any disagreement between the Parties as to whether a specific ISIT system conforms to the relevant MSN (as detailed in
Schedule 7.1.3 Part A), the Parties will attempt to resolve any such disagreement in good faith.

 

Each
of the Parties shall bear its own internal and external costs and charges incurred in relation to the preparation of the initial
migration of information systems activities. The Purchaser agrees to reimburse to Seller the purchase costs related to the software
licenses Seller may have to purchase for the initial migration when such licenses were not used by Seller for the Pessac Business
and have been purchased for complying with Purchaser’s specifications or specific needs, subject to prior agreement of Purchaser
on such expenses.

 

7.1.4.     Without
prejudice to anything contained in the Ancillary Agreement, Seller hereby covenants to grant to Purchaser the contract manufacturing
rights related to the products set out in Schedule 7.1.4.

 

		7.2	Covenants
                                         of the Purchaser. 

 

		7.2.1.	Business
                                         Receivables. Subject to the provisions of ARTICLE VIII, the Business Receivables
                                         (being a Retained Asset) shall be and remain the property of the Seller and the Seller
                                         shall be solely entitled to all sums which are comprised within the Business Receivables.
                                         The Seller shall be solely entitled to collect for its own account, and to enforce for
                                         its own benefit all securities for, the Business Receivables. The Purchaser shall not
                                         be entitled to any payment under any of the Business Receivables whether by payment in
                                         cash or by any other means (including any set-off of claim caused by Purchaser), unless
                                         otherwise provided under the Cut-off Schedule as provided in ARTICLE VIII.

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		7.2.2.	Change
                                         of Site Operator. Promptly following the Closing, the Purchaser shall notify the
                                         Préfet, in compliance with Article 34 of Decree n° 77-1133 of September
                                         21, 1977, of a change of site operator and send a copy of such notification to the Seller.

 

		7.2.3.	Insurance
                                         Replacement. Purchaser acknowledges that the insurance that covers the Acquired
                                         Property is a group insurance, and that it will as such be terminated as early as
                                         at 11:59 p.m. (Central European time) on the Closing Date. At the date hereof, Seller
                                         shall provide Purchaser with the detailed description of the Acquired Assets as provided
                                         to its own insurance company for covering any damages to the Acquired Properties,
                                         in order for Purchaser to subscribe to its insurance company a similar coverage. Purchaser
                                         acknowledges that, beyond the Closing Date, the Acquired Properties will no longer be
                                         covered under the Seller’s insurance policies. Purchaser shall enter into the appropriate
                                         insurance policies to cover the Acquired Property and the Acquired Real Property effective
                                         as from the Closing Date, and shall provide any documentary evidence reasonably required
                                         by the Seller upon first request from the Seller.

 

		7.2.4.	Responsible
                                         Pharmacist. Purchaser acknowledges that the role of responsible pharmacist is currently
                                         assumed by an employee of the Seller that is not a Transferred Employee; the Purchaser
                                         shall be solely responsible for appointing, effective on the Closing Date, a responsible
                                         pharmacist for the Pessac Business, as required under the French Code de la santé
                                         publique.

 

		7.2.5.	Name
                                         Change. 

 

		(a)	Subject
                                         to subparagraph (b) below, within sixty (60) calendar days following the Closing, Purchaser
                                         shall remove from the buildings at the Pessac Facility the panels and signs Seller may
                                         have leave and could be seen from the outside boundaries of the Pessac Facility encompassing
                                         reference to Seller’s name or any other trade name not acquired by Purchaser pursuant
                                         to this Agreement or any name not licensed to Purchaser pursuant to the any of the Ancillary
                                         Agreements. Subject to subparagraph b) hereinafter, the Purchaser agrees that from and
                                         after the Closing Date, Purchaser shall cease to use any items and written materials
                                         including labels, packing materials, letterhead, marketing materials and other materials,
                                         in each case which include the words "FLAMEL". The Purchaser acknowledges and
                                         agrees that, Subject to subparagraph b) hereinafter nothing in this Agreement can be
                                         interpreted as Purchaser having purchased any right of use on the trade name "FLAMEL”.
                                         Within sixty (60) calendar days after the Closing Date, the Purchaser shall file in all
                                         jurisdictions in which is qualified to do business any documents necessary to reflect
                                         such change of name or terminate its qualifications therein. and shall provide any documentary
                                         evidence reasonably required by the Seller upon first request from the Seller that any
                                         measures required to be taken by Purchaser under this paragraph have been taken.

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		(b)	However,
                                         unless otherwise provided in any Ancillary Agreements for a longer time period, the Purchaser
                                         shall be allowed, for a period of six (6) months after Closing:

 

		-	to use
                                         the stock of labels, technical and commercial documentation and movable assets held at
                                         the Pessac Facility as existing at the Closing Date and bearing the "FLAMEL"
                                         names, trademarks or logos in connection with the Pessac Business, and

 

		-	to market
                                         and sell directly or through its distributors the finished goods included in the Acquired
                                         Inventory marked with "FLAMEL" names, trademarks or logos as at the Closing
                                         Date;

 

,
it being understood that the consideration for such use shall be deemed to be included in the consideration paid by the Purchaser
pursuant to Section 2.1 hereof.

 

		(c)	Notwithstanding
                                         the forgoing, Purchaser shall be authorized to use until necessary replacement any and
                                         all materials and/or equipment, including clothes, provided by any suppliers under any
                                         Assumed Contract, which are supporting or making reference to the FLAMEL name.

 

		7.2.6.	Differentiation
                                         of Product. From and after the Closing, and as promptly as commercially, legally
                                         and technically practicable, Purchaser shall institute appropriate procedures to ensure
                                         that products and goods, including Product, of the Pessac Business manufactured, finished
                                         or sold by, or on behalf of, Purchaser can be distinguished from products and goods,
                                         including Product, of the Pessac Business manufactured, finished or sold by, or on behalf
                                         of, Seller or its Affiliates. For example, such differentiation and distinction shall
                                         be made by adding different batch numbers and manufacturing date to such goods and products.

 

		7.2.7.	Tax
                                         Credit (Credit Impôt Recherche).

 

		(a)	Purchaser
                                         shall take prompt, appropriate and effective steps so as to provide that the Purchaser
                                         shall obtain the approval from the French competent Governmental Authorities to be recognized
                                         as a “research center” (organisme de recherche agréé)
                                         effective on January 1st, 2015 and if, and when obtained, maintain such approval
                                         throughout the term of the Services Agreement, including any extensions of that Agreement,
                                         in order to allow Seller to be entitled to the research tax credit with respect to the
                                         research services outsourced to Purchaser under the Service Agreement (subject to the
                                         related expenses being eligible for the research tax credit). Seller hereby agrees
                                         and acknowledges that obtaining the relevant status of “research center”
                                         shall be mainly subject to the valuation by the relevant Governmental Authority of the
                                         quality of the information provided by Seller with regard to the research and development
                                         programs implemented at Pessac Facility prior to the Closing Date and the quality of
                                         the Transferred Employees. 

 

    	25

    	 

    

 

The
Parties shall therefore fully cooperate with one another for the purposes of preparing the application file to be filed with the
Direction Générale de la Recherche et de l’Innovation of the French Ministry for Education and Research
and the follow-up of the matter through the final decision of the competent Governmental Authority to grant of the approval (or
to refuse such grant), as well as for its renewal. For the avoidance of doubt, Purchaser, provided it fully cooperates, and procures
that its Designated Employees (as defined below) fully cooperate for the purpose of the preparation and follow-up of the application
file, shall not be liable to Seller in case the approval is not granted on the basis that the research and development projects
referred to in the application file do not fulfill the eligibility criteria set forth by the French competent Governmental Authority.

 

To
that effect, the Parties agree as follows:

 

		-	The
                                         research and development project that shall be described for the purposes of the application
                                         form for the research tax credit shall be agreed upon between the Parties, upon Seller’s
                                         proposal, within 45 calendar days from the Closing; it being understood that the choice
                                         of the project shall be made with a view to identify the project that is the most likely
                                         to correspond to the criteria utilized by the competent Governmental Authority for assessing
                                         the merits of applications of this kind (the ‘Project”); Seller shall
                                         disclose to Purchaser to this aim such completed projects implemented prior to Closing
                                         at Pessac Facility by the Transferred Employees in order to support the skill and qualification
                                         of said Transferred Employees;

 

		-	The
                                         completed application form and its attachments (including the description of the research
                                         and development project) shall be prepared by the Purchaser with close cooperation of
                                         the Seller who shall appoint one of its employees and/or consultant as representative
                                         to the Purchaser to this aim. Purchaser shall also appoint one of its employees and/or
                                         consultant as representative to the Seller to this aim. Seller shall designate to the
                                         Purchaser (without assuming or incurring any kind of liability to Purchaser or any Person
                                         therefore) such of the Transferred Employees who, in its opinion, are the most qualified
                                         to handle the preparation of the application form for Purchaser (the “Designated
                                         Employees”). Purchaser agrees and undertakes to consider and encompass in the
                                         application all Sellers’ comments and/or requests for the drawing up of the application,
                                         unless, in the reasonable opinion of Purchaser, such comments or requests would weaken
                                         the content and/or structure of the application.

 

		-	Each
                                         Party shall make its best commercial efforts with the other to reach an agreement on
                                         the content and structure of the application form to file no later than on March 31,
                                         2015. Purchaser shall file the application form upon evidence of this written agreement
                                         of Seller by April 30, 2015 at the latest, unless otherwise agreed in writing between
                                         the Parties.

 

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		-	In case
                                         of any difficulty in completing the application file, the Parties will use the services
                                         of a common external consultant having reputable expertise in such matters to assist
                                         them completing the file within the legal timeframe, at Purchaser costs.

 

		-	Conduct
                                         during the instruction of the application by the competent Governmental Authority:
                                         the Parties shall fully cooperate in order to answer all questions from the competent
                                         Governmental Authority, if any, in a timely and effective manner. Purchaser shall forward
                                         any questions of the competent Governmental Authority in a timely manner to Seller so
                                         as to enable Seller to assist in preparing the answers to be provided to said Governmental
                                         Authority, and shall fully cooperate with Seller for the preparation of such answers
                                         and take Seller’s comments into account.

 

		(b)	The
                                         procedure and timing described above shall, mutatis mutandis be applied for the
                                         purposes of the renewal of the approval (to the extent it was granted initially).

 

		(c)	Should
                                         Purchaser fail to be approved as a research center effective as of January 1st,
                                         2015 for reasons attributable to Purchaser during the implementation of the procedure
                                         described above, then Purchaser shall indemnify Seller for Losses incurred by Seller
                                         in relation to Seller not being able to benefit from the tax credit with respect to the
                                         research services outsourced to Purchaser under the Service Agreement during the year
                                         2015 (if any with regard to the then applicable Law) to the extent and in the proportion
                                         such failure is attributable to Purchaser action or omission and up to the amount of
                                         said tax credit.

 

The
provisions of this sub-paragraph (c) shall apply, mutatis mutandis, in case Purchaser fails to obtain the renewal of its approval
(to the extent such approval had been obtained initially).

 

		(d)	In case
                                         no approval (or renewal of approval) has been obtained for 2015 (or any renewal period),
                                         Purchaser shall, by June 30, 2016 and each subsequent year throughout the term of the
                                         Service Agreement, provide appropriate unqualified certificate from its Corporate Auditor
                                         (Commissaire aux Comptes) that it does not benefit from any research tax credit
                                         in relation to the services supplied by Purchaser to Seller under the Services Agreement.

 

Should
Purchaser have benefited from any research tax credit in relation to the said services during a certain year (or should Purchaser
fail to timely provide the required certificate from its Corporate Auditor (Commissaire aux Comptes) as provided above),
then Purchaser shall reimburse to Seller the Tax Credit amount corresponding to the services supplied by Purchaser to Seller under
the Services Agreement during the related year within 30 days from the date of filing of the Cerfa form 2069A by Purchaser relating
to the relevant tax credit, together with related interest at the EURIBOR 1 month rate related to the period from the day payment
was due as set forth above up to the actual payment date increased by one (1) percentage point.

 

    	27

    	 

    

 

Once
a year, Seller, with persons duly designated by Seller with indication of their employer and position to be bound by non-disclosure
obligations with regard to any information proprietary to the Purchaser, may, at its sole expense, at any time and during normal
business hours and on giving the Purchaser 30 business days’ prior notice in writing, conduct an audit of the Purchaser’s
premises where it keeps its books and records, to verify that the Purchaser does not benefit from any research tax credit in relation
to the services supplied by Purchaser to Seller under the Services Agreement. The Purchaser undertakes to give Seller reasonable
access to said premises, as well as to all information and documents in connection with tax credit filing and correspondence.
The Purchaser also agrees to provide Seller with all reasonable assistance for any such inspection. All such audits shall be performed
so as not to detrimentally affect or delay performance of its activities by the Purchaser or its Affiliates.

 

		7.2.8.	Guaranteed
                                         Payment Obligations

 

Purchaser
agrees and undertakes to promptly pay to Seller any amount owed to Seller under this Agreement upon agreement of the Parties on
the amount due and the due date of payment or, in the absence of agreement thereon between the Parties, upon a final award issued
by an arbitral tribunal pursuant to Section 12.12 below.

 

As
security for the payment of the sums owed to Seller under the Guaranteed Payment Obligations, it is agreed that in case of default
by Purchaser to pay off the due amount under any of the Guaranteed Payment Obligations at the due date as provided above, any
such amount shall be deducted from the total purchases obligations of Seller under Article 5 of the Master Services Agreement
and as determined in Section 5.9 of said Master Services Agreement.

 

For
the purpose of this Section, “Guaranteed Payment Obligations” means the payment obligations of Purchaser under
the following Sections of this Agreement: Section 8.3 (Cut-off principles – Balancing Payment), (ii) Section 7.2.7 (Tax
Credit) and (iii) the Purchaser Indemnification under Section 9.1 and (iv) the Acquired Inventory Purchase Price.

 

		7.3	Mutual
                                         Covenants.

 

		7.3.1.	Assumed
                                         Contracts. The transfer of the Assumed Contracts shall be effected as follows:

 

		(a)	Any
                                         Assumed Contract which can be assigned by the Seller to the Purchaser without the consent
                                         of the relevant counter-party the (“Counterparty”) shall be transferred
                                         by the Seller to the Purchaser on the Closing Date. The Parties shall inform the Counterparty,
                                         as necessary, of such assignment.

 

		(b)	The
                                         Purchaser shall, where required under the terms of the relevant Assumed Contract to perfect
                                         the assignment of such Assumed Contract, enter into a direct covenant with the Counterparty
                                         to carry out, perform and discharge the obligations referred to in Section 1.2..

 

		(c)	Except
                                         for the GSK Agreements and the Servier Agreements, if and insofar as the benefit
                                         of any Assumed Contract cannot be transferred by the Seller to the Purchaser at Closing
                                         without the agreement or consent of any Counterparty or the novation of the relevant
                                         Assumed Contract (or where such transfer or purported transfer would constitute a breach
                                         of such Assumed Contract or give rise to a right to terminate such Assumed Contract):

    	28

    	 

    

  

		o	This
                                         Agreement shall not constitute an assignment or attempted assignment of any such Assumed
                                         Contract;

 

		o	Beginning
                                         on the date hereof, the Purchaser and the Seller shall use all reasonable endeavors (but
                                         without being required to incur unreasonable costs or make any payments to any Counterparty)
                                         to obtain such consent or to procure that such Assumed Contract is assigned or novated
                                         as soon as possible after Closing;

 

		o	If
                                         before the Closing Date no consent can be obtained for the transfer of certain Assumed
                                         Contracts (x) the Parties shall continue to use their reasonable commercial efforts to
                                         obtain such consent as promptly as possible after the Closing Date, and (y) with respect
                                         to such contract under the list of Assumed Contracts for which the appropriate consents
                                         have not been obtained prior to the Closing Date, and until such consents are obtained,
                                         the Seller shall, to the extent permissible and lawful under the relevant contract, continue
                                         the performance of such contracts on behalf of the Purchaser, in which case the Purchaser
                                         shall hold the Seller harmless from all claims made by the Counterparty(ies) concerned
                                         against the Seller with regard to such contracts, provided, however, that such claims
                                         do not arise out of a breach by the Seller of the terms and conditions of such Contracts,
                                         in which case the Seller shall then hold the Purchaser harmless from all claims made
                                         against the Purchaser by the Counterparty(ies) concerned by such breach, and (z) once
                                         the consent is obtained, the Seller shall transfer such contracts and the related revenues
                                         and charges from the Closing date to the Purchaser, and the Parties shall notify the
                                         Counterparty concerned the effectiveness of such assignment;

 

		o	If
                                         a Counterparty shall give the Seller or the Purchaser notice that it will not consent
                                         to the assignment or novation of the relevant contract or will only give such consent
                                         subject to terms which are not satisfactory to the Purchaser or terminate such contract
                                         or shall make any other claim on the grounds that the purported transfer of such contract
                                         constitutes a breach of, or entitles the Counterparty to terminate, that contract, then
                                         the Seller and the Purchaser shall treat the contract as excluded from the sale and purchase
                                         of the Pessac Business., and neither the Seller nor the Purchaser shall have any further
                                         obligation to the other with regard to the transfer to the Purchaser of that contract

 

    	29

    	 

    

  

		7.3.2.	Confidentiality.

 

		(a)	Without
                                         prejudice to any rights accrued hereunder, with effect from Closing the Confidentiality
                                         Agreement shall be terminated and shall be of no further force and effect.

 

		(b)	Each
                                         of the Parties shall treat as strictly confidential and not disclose or use any information
                                         received or obtained as a result of entering into this Agreement (or any agreement entered
                                         into pursuant to this Agreement, in particular any Transaction Documents) which relates
                                         to (the “Confidential Information”) :

 

		o	the
                                         provisions of this Agreement and any agreement entered into pursuant to this Agreement
                                         (in particular the Transaction Documents);

 

		o	the
                                         information provided in the course of the discussions between the Parties;

 

		o	the
                                         negotiations relating to the Letter of Intent, this Agreement and/or to the Transaction
                                         Documents.

 

Seller
shall treat as strictly confidential and not disclose or use any information relating to the Transaction following Closing Date.

 

The
foregoing shall not prohibit disclosure or use of any information if and to the extent that the disclosure or use is required
by law, any Governmental Authorities, or any recognized stock exchange on which the shares of any party are listed;

 

		(i)	the
                                         disclosure or use is required to vest the full benefit of this Agreement in any Party;

 

		(ii)	the
                                         disclosure or use is required for the purpose of any legal Proceedings arising out of
                                         this Agreement or any other agreement entered into under or pursuant to this Agreement
                                         or the disclosure is made to a Tax authority in connection with the tax affairs of the
                                         disclosing party;

 

		(iii)	the
                                         disclosure is made to professional advisers of any party on terms that such professional
                                         advisers undertake to comply with the provisions of this Section 7.3.2 in respect of
                                         such information as if they were a party to this Agreement;

 

		(iv)	the
                                         information is or becomes publicly available (other than by breach of the confidentiality
                                         undertaking set forth in this Section 7.3.2);

 

		(v)	Purchaser
                                         and Seller have given prior written approval to the disclosure or use; or

 

		(vi)	the
                                         information is independently developed after Closing by employees who did not have access
                                         to the Confidential Information of the disclosing Party,

 

provided that
prior to disclosure or use of any information pursuant to paragraphs (i), (ii) or (iii) above, the Party concerned shall promptly
notify the other Party of such requirement with a view to providing the other Party with the opportunity to contest such disclosure
or use or otherwise to agree the timing and content of such disclosure or us.

 

    	30

    	 

    

  

		7.3.3.	Press
                                         Releases. Upon execution of this Agreement, each Party will issue a public release
                                         in the form of the documents attached in Schedule 7.3.3. No further public
                                         release, disclosure or announcement concerning the Transaction shall be issued by either
                                         Party or any of their Affiliates, or any of the officers, directors or employees thereof,
                                         without the prior written consent of the other Party (which consent shall not be unreasonably
                                         withheld), except as such release or announcement may be required by any applicable law,
                                         rule or regulation (in particular those of any national or international stock exchange),
                                         in which case the party required to make the release or announcement shall allow the
                                         other party reasonable time to comment on such release or announcement in advance of
                                         such issuance; provided, however, that the Seller may make internal announcements
                                         to its respective employees and competent works council (and, in the case of the Seller,
                                         to the Transferred Employees) to the extent required by applicable Law.

 

		7.3.4.	Additional
                                         Schedules. From time to time prior to the Closing, the Seller may supplement or amend
                                         the Disclosure Schedules with respect to any matter arising after the date hereof that,
                                         if existing at, or occurring on, or known on the date of this Agreement, would have been
                                         required to be set forth or described in the Disclosure Schedules. No such supplement
                                         to or amendment of the Disclosure Schedules made after the execution hereof and notified
                                         to the Purchaser with ten (10) Business Days prior notice shall be deemed to cure any
                                         breach of any representation or warranty made pursuant to this Agreement, except:

 

		(a)	subject
                                         to the provisions of paragraphs (b) and (c) below, for purposes of the Certificate of
                                         Seller required to be delivered pursuant to Section 4.2.1 with respect to the reiteration
                                         of the Seller’s representations and warranties referred to in ARTICLE V,

 

		(b)	for purposes
                                         of the indemnification provisions set forth in ARTICLE IX and then only if the matter
                                         giving rise to a supplemental or amended disclosure has arisen in the ordinary conduct
                                         of the Pessac Business as defined in Section 7.1.1, provided that such additional disclosure
                                         shall not be considered as additional Disclosure Schedule if to cure an event having
                                         a financial effect on the Business Plan greater than one hundred thousand Euros (100,000€);

 

		(c)	for all
                                         purposes if it constitutes disclosure with respect to a Retained Liability, it being
                                         understood that any disclosure in relation therewith shall be for information purposes
                                         only and may not limit in any way the rights of Purchaser under this Agreement in relation
                                         with indemnification for Retained Liabilities.

 

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		7.3.5.	Books
                                         and Records; Access

 

		a)	Seller
                                         agrees to deliver, or cause to be delivered, to the Purchaser as soon as practicable
                                         after the Closing, subject to applicable Laws, (i) all material books, records, files,
                                         supplier invoices and other documents of Seller to the extent solely related to the Pessac
                                         Business (save where Seller is required to keep originals pursuant to applicable Law),
                                         as the same shall exist as of the Closing Date; and (ii) copies of all other material
                                         books, records and other documents related to the Pessac Business, as the Purchaser may
                                         reasonably request; provided that (1) any portions thereof that do not relate
                                         to the Pessac Business may be redacted from the copies delivered to the Purchaser; and
                                         (2) with respect to any such material books, records and other documents recorded in
                                         an electronic form, Seller may elect to provide either hard copies or electronic copies.
                                         Seller shall ensure that the books and records provided hereunder are a true and accurate
                                         description in all material respects of the events in respect of the Pessac Business
                                         recorded therein.

 

		b)	From
                                         and after the Closing Date and for a period of five (5) years, Seller shall provide to
                                         the Purchaser, as soon as practicable upon request, such missing information relating
                                         to the Business as is reasonably requested by the Purchaser and which has not already
                                         been provided by Seller to the Purchaser pursuant to subparagraph (a) above.

 

		c)	From
                                         and after the Closing Date, Purchaser shall maintain copies of all Pessac Records transferred
                                         to it in accordance with this Agreement for a period of five (5) years as from the Closing
                                         Date. From and after the Closing Date and for a period of five (5) years, and upon seven
                                         (7) days’ prior notice, the Purchaser will permit Seller and its duly authorized
                                         representatives access, during normal business hours and upon reasonable request (notably
                                         for financial reporting and accounting matters, the preparation of any filing or other
                                         submission required by Law, or for other purposes envisaged by this Agreement, including
                                         without limitation the conduct of defense of Direct Claims and Third Party Claims as
                                         set forth in ARTICLE IX, or the preparation of Purchaser’s application for the
                                         French research tax credit as set forth in Section 7.2.7), to all books and records and
                                         other documents related to the Pessac Business, which were delivered to the Purchaser
                                         on or after the Closing Date. The Parties shall use their best efforts to ensure that
                                         such access shall be performed at times and in a manner so as not to disturb or delay
                                         operation of the Pessac Business.

  

		7.3.6.	Further
                                         Actions. Subject to the terms and conditions herein provided, each of the parties
                                         will use its commercially reasonable efforts to take or cause to be taken all actions
                                         (and provide all documents) necessary to consummate the Transaction contemplated by this
                                         Agreement.

 

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If
at any time after the Closing a Party reasonably considers or is reasonably advised that any further actions or deeds are necessary
to transfer the ownership of the Acquired Property or otherwise to carry out this Agreement, the other party shall execute all
such further actions, or cause its officers or directors to execute all such further actions, and deliver all such deeds and take
and do all such other actions and things as may be reasonably requested by the requesting party to confirm any and all right,
title and interest in, to such Acquired Property or otherwise to carry out this Agreement.

 

		7.3.7.	Registration

 

For
purposes of Articles L. 141-12 and L. 141-13 of the French Commercial Code and filing with the French tax authorities, the Parties
shall execute on the Closing Date a French language short-form agreement in the form attached in Schedule 4.2.1 (i) (f)
(the "Short Form Agreement") and Purchaser shall cause the same to be registered or recorded within fifteen
(15) calendar days of its signature in accordance with the abovementioned provisions. In case of any conflict between the terms
of this Agreement and those of the Short Form Agreement, this Agreement shall prevail.

 

		7.3.8.	Limited
                                         license rights. 

 

Each
Party agrees and undertakes to enter into good faith negotiation, promptly following the Closing date, on the terms and conditions
of a license agreement whereby Purchaser would be granted with the rights to use the Intellectual Property Rights pertaining to
the FLAMEL Drug Delivery Platforms, as defined in the preamble of this Agreement, for manufacturing, distributing, selling and
marketing such products and supply such services encompassing such Intellectual Property Rights. Each Party shall make reasonable
commercial efforts to have said license agreement effective within ninety (90) calendar days from the Closing Date at the latest
and for a period ending when all the related patents have expired.

 

		7.3.9.	Negotiation
                                         of Real Estate Transfer Deed. 

 

The
Parties shall negotiate in good faith the terms of a real estate transfer deed pursuant to which Seller shall assign, effective
on the Closing Date, to Purchaser, and Purchaser shall purchase from Seller, the Acquired Real Property (the “Real Estate
Transfer Deed”); the Real Estate Transfer Deed shall contain customary provisions for the sale of such a real estate
asset; provided that it shall not contain any additional representations, guarantees or covenants of the Seller above and beyond
those contained in this Asset Purchase Agreement.

 

For
the purposes of this Agreement, “Acquired Real Property” means all volumes, buildings, easements, improvements
and fixtures owned as of the Closing Date by Seller and located in Pessac, France, rue Archimède and 11, avenue Gustave
Eiffel, and all appurtenances thereto, as further described in Schedule 7.3.9.

 

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ARTICLE
VIII.CUT OFF PRINCIPLES AND OTHER COVENANTS

 

		8.1	General
                                         Cut-Off Principles.

 

		8.1.1.	Apportionment
                                         Principles. 

 

General
principle. Any outgoings, expenses or liabilities paid or incurred, or any payments or other benefits received or to be received,
in respect of the Pessac Business, the GSK Agreements or any of the Acquired Property are of a periodic nature and/or relate or
are otherwise attributable to a period of time commencing before but ending after the Closing Date, such amount shall be apportioned
between the Parties on a time apportionment basis; meaning that the Seller’s portion shall be equal to the amount which
would be payable if the relevant period ended at the end of the day of the Closing Date, whereas the Purchaser’s portion
shall be equal to the amount which would be payable if the relevant period started at the beginning of the day following the Closing
Date. It is understood that any such amount chargeable or payable by reference to the extent of the use of any properties or rights
shall be apportioned according to the extent of such use.

 

		8.1.2.	Tax
                                         Matters. The Seller shall be liable for all Taxes, including income Taxes, and all
                                         Tax Claims, including any and all reassessment of any Taxes or charges with respect to
                                         the operation and/or the ownership of the Pessac Business and/or the Pessac Facility
                                         (i) in connection with any Tax period ending on or before the Closing Date or, (ii) with
                                         respect to any Tax period beginning before and ending after the Closing Date in connection
                                         with the portion of such Tax period ending on the Closing Date ("Pre-Closing
                                         Taxes"). The Purchaser shall be liable for the Taxes imposed directly on the
                                         Purchaser with respect to the Pessac Business and Pessac Facility (i) in connection with
                                         any Tax period beginning after the Closing Date, and (ii) with respect to any Tax period
                                         beginning before and ending after the Closing Date in connection with the portion of
                                         such Tax period beginning on the Closing Date ("Post-Closing Taxes").

 

		8.1.3.	Employee
                                         Matters. 

 

		(a)	General
                                         principle. Subject to the provision of this subsection 8.1.3, the employment contracts
                                         of the Transferred Employees shall be transferred from the Seller to the Purchaser at
                                         Closing (together with their title, seniority, payroll, allowances and fringe benefits),
                                         if any, pursuant to the statutory provisions applicable to their employment agreements
                                         as of the Closing Date. The Seller shall be responsible for and shall pay to the Purchaser
                                         all wages, benefits, salaries, deferred compensation, bonuses and premiums (such as thirteen
                                         month, seniority and vacation premiums, and including premiums linked to profit sharing
                                         and incentive), commissions, vacation entitlement, overtime hours payments, accrued unused
                                         vacations (including compensatory rest and days off for reduction of working time), and
                                         any other benefits (including any incentive payment, transaction bonuses or other payment
                                         which may be due to any Transferred Employees as a result of the Transaction), as well
                                         as for all payroll taxes and social contributions and/or charges due or accrued in connection
                                         therewith ("Payroll Benefits"), due by the Seller to the employees so
                                         transferred or accrued up to or relating to any period prior to Closing but not yet paid
                                         on such date (the "Pre-Closing Accrued Employee Liabilities"). The Purchaser
                                         shall be responsible for the Payroll Benefits accrued following the Closing Date and
                                         relating to the employment after the Closing of the Transferred Employees (the "Post-Closing
                                         Accrued Employee Liabilities"). For the avoidance of doubt, the Seller shall
                                         not be liable to pay to Purchaser any retirement benefits, pensions or accruals owed
                                         to any Transferred Employees retiring after the Closing Date, other than such amount
                                         provided in Section 4.2.2 (ii) which has been deducted from the payment by Purchaser
                                         of the Closing Purchase Price. 

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		(b)	Bonus
                                         payments. Profit sharing agreement (“accord d’intéressement”
                                         or “participation”) or bonuses linked to objectives will be borne
                                         prorata temporis based on the number of days from the start of the then-current calendar
                                         year to the Closing Date by Seller. For the avoidance of doubt, Seller will pay its prorata
                                         share of Transferred Employees bonuses only to the extent actually owed to the relevant
                                         employees in light of performance recorded at the end of the relevant reference period
                                         or pursuant to any agreement made by Seller prior to the Closing Date with any relevant
                                         employee representative bodies. Further, the Seller’s share of the bonus shall
                                         be calculated on the basis of the bonus amount defined by Seller prior to Closing –
                                         i.e. Seller shall not be liable to pay any amount attributable to any decision by Purchaser
                                         to amend the bonus amount or the targets to be achieved by employee in order to obtain
                                         such bonus. 

 

		8.2	Cut-Off
                                         Schedule.

 

		8.2.1.	The
                                         Seller shall prepare and deliver to the Purchaser within 60 days after the Closing Date,
                                         in the frame of Transitional Services Agreement and free of charge to Purchaser, a schedule
                                         (the “Cut-off Schedule”) apportioning all outgoings, expenses, liabilities
                                         and receipts in respect of the Pessac Business and Acquired Property, in accordance with
                                         the principles set forth under Section 8.1. The Cut-Off Schedule shall show the net amount
                                         owing (if any) from either party (the “Balancing Payment”).

 

		8.2.2.	The
                                         Purchaser shall give and shall procure that the Seller is given all co-operation necessary
                                         to enable the Seller to prepare the Cut-Off Schedule. The Seller and the Purchaser shall
                                         use their respective reasonable endeavors to agree the Cut-Off Schedule and the amount
                                         of the Balancing Payment (if any) within thirty (30) Business Days after the delivery
                                         of the Cut-Off Schedule to the Seller in accordance with subsection 8.2.1.

 

		8.2.3.	If
                                         the Cut-Off Schedule and/or any of the items shown in it are not agreed by the parties
                                         within thirty (30) Business Days after the delivery of the Cut-Off Schedule to the Seller
                                         in accordance with subsection 8.2.1, then either party may require such item or items
                                         (but no other items) to be referred by the Purchaser and the Seller jointly to the Independent
                                         Accountants for determination on the following basis:

 

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		(a)	the
                                         Independent Accountants shall be instructed to notify the Seller and the Purchaser of
                                         their determination of any such item within thirty (30) Business Days of such referral;

 

		(b)	the
                                         Seller and the Purchaser shall be entitled to make written submissions to the Independent
                                         Accountants, but subject thereto the Independent Accountants shall have power to determine
                                         the procedure to be followed in relation to their determination;

 

		(c)	any
                                         submissions to and the determination of the Independent Accountants shall be in the English
                                         language;

 

		(d)	in making
                                         such submissions the Seller and the Purchaser shall state their respective best estimates
                                         of monetary amounts of the items referred for determination;

 

		(e)	in making
                                         their determination the Independent Accountants shall act as experts and not as arbitrators;
                                         and

 

		(f)	the
                                         fees and expenses of the Independent Accountants shall be borne and paid by the Seller
                                         and the Purchaser equally.

 

		(g)	The
                                         Seller and the Purchaser shall use their respective reasonable endeavors to procure that
                                         the Independent Accountants comply with the requirements placed upon them under this
                                         Section (including, without limitation, the provisions relating to timing).

 

		8.3	Balancing
                                         Payment.

 

Any
Balancing Payment as shown in the Cut-Off Schedule shall be paid by the Purchaser to the Seller or by the Seller to the Purchaser
(as the case may be):

 

		(a)	within
                                         thirty (30) Business Days after the date of determination of the Balancing Payment in
                                         accordance with Section 8.2,

 

		(b)	in Euros
                                         by wire transfer of immediately available funds to the account of Seller or Purchaser
                                         (as appropriate), such account to be designated at least three (3) Business Days prior
                                         to the date of payment.

 

ARTICLE
IX.INDEMNIFICATION

 

		9.1	Indemnification
                                         by Purchaser

 

Subject
to the terms and conditions of this Agreement, from and after the Closing Date, Purchaser ("Purchaser Indemnifying Party")
shall indemnify, defend and hold Seller ("Seller Indemnified Party") harmless from and against any and all Loss
incurred by such Seller Indemnified Party resulting or arising from or related to, or incurred in connection with:

 

		9.1.1.	Subject
                                         to the provisions of the initial paragraph of ARTICLE V, any breach of any representation
                                         or warranty of Purchaser contained herein as if such representation or warranty were
                                         made on and as of the Closing Date (except for any such representations and warranties
                                         that are made at a specific date), to the extent not otherwise giving rise to indemnification
                                         pursuant to subsection 9.1.2, 9.1.3 or 9.1.4; or

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		9.1.2.	Any
                                         Assumed Liability after the Closing Date, provided that Loss is not due to the action
                                         or inaction of Seller or any breach of any Seller’s representations, warranties
                                         and/or covenants under this Agreement or any Ancillary Agreement:

 

		9.1.3.	Any
                                         breach of any covenant, agreement or other undertaking of Purchaser contained therein;

 

		9.1.4.	The
                                         ownership and operation of the Pessac Business and Acquired Assets after the Closing
                                         provided that Loss is not due to the action or inaction of Seller or any breach of any
                                         Seller’s representations, warranties and/or covenants under this Agreement or any
                                         Ancillary Agreement; and

 

		9.1.5.	Any
                                         Loss relating to Product sold by Purchaser under the Assumed Contracts (including the
                                         GSK Agreements), from and after the Closing except for any Product included in the Acquired
                                         Inventory, including, any product recalls and product liability claims, relating to adverse
                                         events or otherwise.

 

		9.2	Indemnification
                                         by Seller

 

Subject
to the terms and conditions of this Agreement, from and after the Closing Date, Seller ("Seller Indemnifying Party")
shall indemnify, defend and hold Purchaser ("Purchaser Indemnified Party") harmless from and against any and
all Losses incurred by Purchaser Indemnified Party resulting or arising from or related to, or incurred in connection with:

 

		9.2.1.	Subject
                                         to the provisions of the initial paragraph of ARTICLE V, any breach of any representation
                                         or warranty of Seller contained herein as if such representation, or warranty were made
                                         on and as of the Closing Date (except for any such representations, covenant and warranties
                                         that are made at a specific date);

 

		9.2.2.	Any
                                         Retained Liability;

 

		9.2.3.	Any
                                         breach of any covenant, agreement or other undertaking of Seller contained therein.

 

		9.3	Payments

 

The
Party making a claim for indemnification is, for the purposes of this Agreement, referred to as the "lndemnified Party"
and the Party against whom such claim is asserted is, for the purposes of this Agreement, referred to as the "lndemnifying
Party". Indemnification under this ARTICLE IX with respect to any claim concerning any Loss shall be due and payable
upon the earliest of:

 

		(a)	the
                                         date determined by mutual agreement between the Indemnified Party and the Indemnifying
                                         Party or the date of issuance of a final award issued by an arbitral tribunal pursuant
                                         to Section 12.12 (or, if later, the date for payment set forth in such award);

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		(b)	in the
                                         case of a Third Party Claim, the date on which payment must be made to the relevant third
                                         party after issuance of a definitive order issued by a Governmental Authority or a final
                                         judgment, award, order or other ruling issued by a court or arbitral tribunal having
                                         jurisdiction over the subject matter of such Third Party Claim (and in each such case,
                                         which (x) is not subject to appeal or with respect to which the time for appeal has elapsed,
                                         or (y) if subject to appeal, requires the relevant party to make payment pending such
                                         appeal (provided that any such payment made pending appeal shall be promptly repaid by
                                         the Indemnified Party to the Indemnifying Party upon any reversal of the final judgment,
                                         award, order or other ruling having required such payment to be made pending appeal).

 

		9.4	Notice
                                         of Claim; Right to Participate in and Defend Third Party Claims

 

		9.4.1.	Claim
                                         Notice. If, after the Closing, an Indemnified Party (a) receives written notice of
                                         the assertion of any claim, the commencement of any suit, action, investigation or proceeding,
                                         or the imposition of any penalty or assessment by a third party (including a Governmental
                                         Authority) in respect of which indemnity may be sought under Section 9.1 or Section 9.2
                                         (a "Third Party Claim"), or (b) shall have a claim for indemnification
                                         under Section 9.1 or Section 9.2 which does not relate to a Third Party Claim (a "Direct
                                         Claim"), it shall provide written notice thereof to the Indemnifying Party in
                                         accordance with Section 12.3 (a "Claim Notice"). A Claim Notice shall
                                         provide a description in reasonable detail of the nature of the Direct Claim or Third
                                         Party Claim, indicate the sections of this Agreement which form the basis for indemnification,
                                         be accompanied by copies of all supporting documentary evidence in connection therewith
                                         (including court papers) (or provide access to the same) and indicate the estimated amount
                                         of related Loss (to the extent such amount is known or can reasonably be determined).
                                         A Claim Notice shall be made (x) in the case of a Third Party Claim, within thirty (30)
                                         Business Days following the date of receipt by the Indemnified Party of the written notice
                                         of assertion of the Third Party Claim (provided that such time period shall be reduced
                                         to ten (10) Business Days in the case of a Third Party Claim relating primarily to Taxes)
                                         or such shorter period as may be required in the event of emergency proceedings or where
                                         a response to a notification must be given within a time period to avoid a forfeiture
                                         of rights, and (y) in the case of a Direct Claim, with reasonable promptness in view
                                         of the circumstances (and in any event within (60) sixty Business Days of its becoming
                                         aware of the related Loss). Failure by the Indemnified Party to comply with such notice
                                         periods shall have no consequences on its right to make a claim for indemnification under
                                         this Agreement; provided, however, that any such failure shall relieve the Indemnifying
                                         Party from any liability that it may have to the Indemnified Party to the extent of any
                                         increase of the Loss resulting from such failure.

 

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		9.4.2.	Defense
                                         of Third Party Claims

 

		(a)	The
                                         Indemnifying Party shall have fifteen (15) Business Days from the receipt of the relevant
                                         Claim Notice or, in the event of a Direct Claim and if the amount of the claim has not
                                         been determined at the time of the Claim Notice, the date on which the amount of the
                                         Direct Claim has been notified by the Indemnified Party (the "Notice Period")
                                         to notify the Indemnified Party whether or not it disputes its liability to the Indemnified
                                         Party hereunder with respect to such claim or demand. If the Parties agree, on or prior
                                         to the expiration of the Notice Period, upon the validity and amount of such claim, the
                                         Indemnifying Party shall pay to the Indemnified Party, within twenty (20) Business Days
                                         following the date of such agreement, the full agreed amount of the indemnification due
                                         on such claim. If the parties are unable to reach agreement on or prior to the expiration
                                         of the Claim Notice or if the Indemnifying Party dispute their liability with respect
                                         to such claim or demand or the amount thereof, such dispute shall be resolved in accordance
                                         with Section 12.12 hereof.

 

		(b)	In the
                                         event that the Indemnifying Party notifies the Indemnified Party within the Notice Period
                                         that it desires to defend a Third Party Claim then, except as hereinafter provided, the
                                         Indemnifying Party shall have the right to defend the Third Party Claim by appropriate
                                         proceedings, including counsel of its choice, reasonably acceptable to the Indemnified
                                         Party, which proceedings shall be promptly settled or prosecuted by it to a final conclusion
                                         in such a manner as to avoid any risk of the Indemnified Party becoming subject to liability
                                         for any other matter and shall pay all fees and disbursements incurred in connection
                                         with such proceedings; provided however, that the Indemnifying Party shall
                                         not, without the prior written consent of the Indemnified Party (i) consent to the entry
                                         of any judgment against the Indemnified Party, (ii) enter into any settlement or compromise
                                         of any claim or demand for other than monetary damages, or (iii) enter into any settlement
                                         or compromise or any claim or demand for monetary damages which does not include, as
                                         an unconditional term thereof, the giving by each claimant or plaintiff to the Indemnified
                                         Party of a release, in form and substance satisfactory to the Indemnified Party. The
                                         Indemnified Party shall have the right to participate in the defense assumed by the Indemnifying
                                         Party and to employ counsel of its choice, reasonably acceptable to the Indemnifying
                                         Party, at its own expense, separate from the counsel employed by the Indemnifying Party
                                         (it being understood that the Indemnifying Party shall control such defense). If requested
                                         by the Indemnifying Party, the Indemnified Party agrees to cooperate with the Indemnifying
                                         Party and its counsel (at the cost of the Indemnifying Party) in contesting any such
                                         Third Party Claim and to refrain from taking any action, which jeopardize or interfere
                                         with the defense of such claims. The Indemnifying Party shall keep the Indemnified Party
                                         fully informed of the progress of any Third Party Claim and its defense in the event
                                         the Indemnified Party did not elect to participate in the defense against such Third
                                         Party Claim.

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		9.5	General
                                         Exclusions and Limitations.

 

		9.5.1.	The
                                         Indemnifying Party shall have no liability to the Indemnified Party under any provision
                                         of this Agreement:

 

		(a)	for any
                                         Loss which arises as a result of the passing of, or any change in, after the Closing
                                         Date, any Law in effect on the Closing Date, or any imposition of any Tax not in
                                         effect on the Closing Date, even if such Law or Tax imposition has retroactive effect;

 

		(b)	to the
                                         extent that the facts giving rise to the relevant Losses were contained in a Disclosure
                                         Schedule as provided in this Agreement and to the extent of such content;

 

		(c)	to the
                                         extent that the relevant Loss is due to the Indemnified Party’s willful misconduct,
                                         gross negligence or bad faith;

 

		(d)	if and
                                         to the extent that (in the event that the relevant breach can be cured) the Indemnifying
                                         Party has, within thirty (30) days following receipt by Indemnifying Party of Indemnified
                                         Party’s notice, completed all and any action to cure such breach and eliminate
                                         the related Loss;

 

		(e)	if and
                                         to the extent that the Indemnified Party is entitled to receive or has received recovery
                                         for the relevant Loss from any other Person (including under any insurance policy) or,
                                         in the case described above, if and to the extent that non recovery from any other Person
                                         is due to the failure of the Indemnified Party to use its or their reasonable efforts
                                         to obtain such recovery;

 

		9.5.2.	Limitation
                                         on quantum. The Indemnifying Party shall not be liable in respect of any Direct Claim
                                         or Third Party Claim unless and until:

 

		(a)	the amount
                                         of each such claim exceeds Five Thousand Euros (€5,000) (the “Claim Threshold”),
                                         and

 

		(b)	the aggregate
                                         amount of all such claims exceeds fifty thousand Euros (€50,000) (the “Indemnity
                                         Threshold”), in which case the Indemnifying Party shall only be liable for the
                                         amount in excess of, but excluding, the Indemnity Threshold; it being understood that
                                         only claims exceeding the Claim Threshold shall be included in calculating the Indemnity
                                         Threshold,

 

Provided
that the aggregate liability of the Indemnifying Party for all claims by the Indemnified Party under this Agreement shall not
exceed the amount of THREE MILLION EUROS (€3 000 000) (the “Indemnity Cap”).

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		9.5.3.	Effective
                                         nature of Losses.

 

		(a)	Any liability
                                         for indemnification pursuant to this Agreement shall be determined without duplication
                                         of recovery. In the event that the Indemnified Party is indemnified for a Loss pursuant
                                         to one provision of this Agreement, the Indemnified Party shall not be entitled to indemnification
                                         again form the same Loss in the event another provision or provisions of this Agreement
                                         are also breached.

 

		(b)	A Loss
                                         shall be eligible for indemnification by the Indemnifying Party to the extent and only
                                         to the extent such Loss has effectively been sustained by the Indemnified Party.

 

		(c)	Any deficiency
                                         assessed by the Tax authorities whose sole effect is to shift a Tax liability from one
                                         fiscal period to another shall give rise to indemnification by the Indemnifying Party
                                         only insofar as the Indemnified Party is required to pay a penalty or interest charge
                                         in relation thereto.

 

		(d)	Any deficiency
                                         assessed with regard to a Tax, such as a value-added Tax, which is recoverable shall
                                         give rise to indemnification by the Indemnifying Party only insofar as the Indemnified
                                         Party is required to pay a penalty or interest charge in relation thereto.

 

		(e)	If a claim
                                         is based upon a liability which is contingent only, no indemnification shall be due unless
                                         and until such liability becomes due and payable.

 

		(f)	In the
                                         event that the Indemnified Party is required to make a payment in connection with a Third-Party
                                         Claim, the Indemnifying Party shall not be required to make any indemnification payment
                                         in connection thereto before such payment has actually been made by the Indemnified Party
                                         to such third party.

  

		9.6	Survival of Representations and Warranties. 

 

		a)	Subject to subparagraph b) hereunder, the indemnification obligations under this ARTICLE IX shall
survive eighteen (18) months following the Closing Date, save for Tax Claims and for all payroll taxes and social contributions
and/or charges, which shall survive until the expiration of the applicable statute of limitations plus 90 days. No indemnification
claim for the recovery of any Loss may be asserted by the Indemnified Party after the expiration of the applicable indemnification
period; provided, however, that indemnification claims made in writing by the Indemnified Party in good faith and
with reasonable specificity prior to the expiration of the applicable indemnification period shall not thereafter be barred by
the expiration of the applicable indemnification period.

 

		b)	Notwithstanding subparagraph a) above, Seller’s indemnification obligations in connection
with any Direct Claim or Third Party Claim related to Retained Assets and/or Retained Liabilities shall be unlimited in time and
monetary respect. No monetary limitation, threshold amount, or any other condition shall apply to such claims. Seller shall be
required to fully indemnify, defend and hold Purchaser harmless from and against any Loss related to Retained Assets and/or Retained
Liabilities and shall be obligated to fully indemnify with respect to the full amounts.

 

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		9.7	Tax
                                         Effect of Indemnification Payments.

 

All
indemnity payments made by the Indemnifying Party to the Indemnified Party pursuant to this Agreement shall be treated for all
Tax purposes as adjustments to the Closing Purchase Price, unless otherwise agreed between the Parties.

 

		9.8	Efforts
                                         to Mitigate Damages.

 

Both
Parties shall use their best commercial efforts to mitigate any indemnifiable damages caused by a breach by any representation,
warranty or covenant as set forth in this Agreement.

 

ARTICLE
X.POST-CLOSING COVENANTS

 

		10.1	Non
                                         Solicitation of Employees.

 

Until
the second anniversary of the Closing Date, (a) Seller and its Affiliates will not solicit, offer employment to, or employ any
Transferred Employee who is then an employee of the Purchaser, or who has left such employment within one hundred eighty (180)
days preceding such solicitation, offer, or employment, or encourage any Transferred Employee to leave the employ of the Purchaser
and (b) the Purchaser will not directly or indirectly solicit, offer employment to, or employ any person who after the Closing
Date is then an employee of the Seller, or who has left such employment within one hundred eighty (180) days preceding such solicitation,
offer or employment.

 

		10.2	Non-Competition
                                         / Non Solicitation of Clients.

 

		10.2.1.	Non-Competition
                                         by Seller. The Seller agrees that upon Closing and for a period of three (3) years
                                         after the expiration of the Supply Agreement, it shall not directly or indirectly, (i)
                                         engage in the development, production, processing, sale, marketing or distribution of
                                         drug products that compete with the Product; or (ii) engage in providing contract development
                                         and manufacturing services for any third party to the extent that such activities pertain
                                         to a product that competes with the Product ((i) and (ii), collectively, the "Purchaser
                                         Competing Activities"); or (iii) own, manage, operate, control or participate
                                         in the ownership, management, operation or control of any other person whose activities
                                         constitute or include Purchaser Competing Activities, or (iv) solicit, any business entity
                                         which is a client of the Pessac Business under any of the Assumed Contracts for purposes
                                         of offering or selling products or services which compete with the Product; provided,
                                         however, that nothing herein shall prohibit the Seller or its Affiliates from (a) engaging
                                         in the development, production, processing, sale, marketing or distribution of drug products
                                         other than the Product, or (b) offering research and development services using FLAMEL
                                         Drug Delivery Platforms, or (c) acquiring an interest of less than 5 % of the shares
                                         capital and voting rights of publicly listed companies having activities that constitute
                                         or include Purchaser Competing Activities, or (d) owning, managing, operating, controlling
                                         or participating in the ownership, management, operation or control of any entity in
                                         which less than 5 % of the revenues arise from a business that constitute or include
                                         Purchaser Competing Activities.

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		10.2.2.	Non-Competition
                                         by Purchaser. Purchaser agrees that for a period of three (3) years after the Closing
                                         Date, no entity of the Purchaser Group shall, directly or indirectly, (i) engage in any
                                         activities competing with the activities of the Seller or any of its Affiliates using
                                         FLAMEL Drug Delivery Platforms (the "Seller Competing Activities");
                                         or (ii) own, manage, operate or control, or participate in the ownership, management,
                                         operation or control of, any other Person whose activities constitute or include Seller
                                         Competing Activities; provided, however, that nothing herein shall prohibit the Purchaser
                                         or its Affiliates from (x) acquiring an interest of less than 5 % of the shares capital
                                         and voting rights of publicly listed companies having activities that constitute or include
                                         Seller Competing Activities, nor (y) owning, managing, operating, controlling or participating
                                         in the ownership, management, operation or control of any entity in which less than 5
                                         % of the revenues arise from a business that constitute or include Seller Competing Activities.

 

		10.3	Invalidity
                                         or Non-enforceability.

 

The
provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect
the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof
to any Person or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor
in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision
and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected
by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of
such provision, or the application thereof, in any other jurisdiction..

 

ARTICLE
XI.TERMINATION

 

		11.1	Termination.
                                          

 

This
Agreement may be terminated by written notice of termination at any time before the Closing Date only as follows:

 

		(a)	by mutual
                                         consent of the Seller and the Purchaser;

 

		(b)	by the
                                         Purchaser, upon written notice to the Seller given at any time after a period of 90 days
                                         following the Execution Date or such later date as shall have been specified in a written
                                         instrument signed by the Seller and the Purchaser) if all of the conditions precedent
                                         set forth in Section 3.2 hereof have not been met;

 

    	43

    	 

    

 

		(c)	by the
                                         Seller, upon written notice to the Purchaser given at any time after a period of 90 days
                                         following the Execution Date (or such later date as shall have been specified in a written
                                         instrument signed by the Seller and the Purchaser) if all of the conditions precedent
                                         set forth in Section 3.3 hereof have not been met;

 

		(d)	by the
                                         Purchaser or the Seller if any Governmental Authority
                                         shall have issued an order, decree or ruling or taken any other action (which order,
                                         decree, ruling or other action the parties hereto shall use their best commercial efforts
                                         to lift) which restrains, enjoins or otherwise prohibits the acquisition by the Purchaser
                                         of all or a material portion of the Pessac Business and/or Pessac Facility.

 

		11.2	Consequences.

 

In
the event of the termination hereof pursuant to the provisions of Section 11.1, and, except the termination was the result of
a breach by a party of any representation, warranty or covenant hereunder in which event the party whose representation, warranty
or covenant was breached shall be liable to the other, none of the Parties shall be liable to the other for such termination,
whatever the consequences are for any Party.

 

ARTICLE
XII.MISCELLANEOUS PROVISIONS

 

		12.1	Amendment.

 

This
Agreement may not be amended except by a written instrument signed by each of the parties hereto.

 

		12.2	Waivers.

 

Except
as otherwise provided in this Agreement, any failure of any of the Parties to comply with any obligation, covenant or agreement
contained herein may be waived only by a written notice from the Party entitled to the benefits thereof. No failure by any Party
hereto to exercise, and no delay in exercising, any right hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any rights hereunder preclude any other or future exercise of that right by that Party.

 

		12.3	Appointment
                                         of the Seller's Agent - Notices.

 

		12.3.1.	Election
                                         of domicile

 

		(a)	Any
                                         objection shall be made at the Seller’s address, which shall be the elected domicile
                                         (domicile élu) for purposes of article L. 141-14 of the French Code of Commerce,
                                         as follows:

 

FLAMEL
TECHNOLOGIES

Parc
Club du Moulin à Vent

33
avenue du Docteur Georges Lévy

Venissieux
Cedex France 69693

A l’attention
du Directeur Général

 

    	44

    	 

    

 

		(b)	For
                                         purposes of Article L. 141-19 of the French Commercial Code, during the twenty days following
                                         publication of this Agreement in the Official Bulletin of Civil and Commercial Notices,
                                         Purchaser shall hold an original of this Agreement at its registered address to facilitate
                                         consultation thereof by any objecting or registered creditor.

 

		12.3.2.	Subject
                                         to notice provisions expressly specified elsewhere in this Agreement, all notices and
                                         other communications hereunder shall be deemed sufficiently given to a person if given
                                         in writing and shall become effective when delivered by hand, by overnight service, special
                                         courier which requires a delivery receipt therefore, by facsimile transmission with confirmation
                                         of receipt, by email transmission provided a confirmation of delivery or of reading is
                                         delivered by the server of destination, by registered or certified mail (return receipt
                                         requested), postage fees prepaid, at such person's address set forth below (or at such
                                         other address as may from time to time be designated by such party to the other in accordance
                                         with this Section 12.3.1):

 

If
to the Seller, to: 

 

FLAMEL
TECHNOLOGIES

 

		Address:	Parc Club du Moulin à
Vent

33
avenue du Docteur Georges Lévy

Venissieux
Cedex France 69693

Marked
for the attention of the CEO

 

		Email:	anderson@flamel.com

 

		with copies to:	FIDAL

Direction
Paris

Tour
Prisma | 4-6, avenue d'Alsace | 92982 PARIS LA DEFENSE CEDEX | France

Marked
for the attention of: Anne Fréchette-Kerbrat

 

Email
: anne.frechette-kerbrat@fidal.com

 

If
to the Purchaser, to: 

 

RECIPHARM
PESSAC

 

		Address:	Rue Archimède, 33600
Pessac, France

Facsimile:
+ 33 5 56 36 58 91

Marked
for the attention of: General Manager

		Email:	stephane.guisado@recipharm.com

 

    	45

    	 

    

 

		with copies to:	RAMBAUD – LE GOATER,
Avocats

50
rue Rambuteau, 75003 Paris, France

+33
1 48 87 10 62

Marked
for the attention of: Bernard Le Goater

Email
: bernard.legoater@rambaudlegoater.com

  

		12.4	Assignment.
                                          

 

Neither
this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the Parties hereto without
the prior written consent of the other Party, provided, however, that without such prior consent the Purchaser may at any time
prior to the Closing Date, assign, in its sole discretion, all or any part of its rights and interests hereunder to any wholly
owned Affiliate of the Purchaser; provided, however, that the Purchaser shall remain jointly and severally liable
for the performance of all obligations so assigned and that the assignee shall remain a wholly owned Affiliate of the Purchaser.

 

		12.5	No
                                         Third Party Beneficiaries.

 

Subject
to the provisions of Section 12.4, neither this Agreement or any provision hereof, nor any Schedule, certificate or other instrument
delivered pursuant hereto, nor any agreement to be entered into pursuant hereto or any provision hereof, is intended to create
any right, claim or remedy in favor of any person or entity, other than the parties hereto and their respective successors and
permitted assigns.

 

		12.6	No
                                         Set-off.

 

All
payments to be made by either Party under this Agreement or any of the Ancillary Agreements shall be made in full without any
set-off, restriction or condition and without any deduction for or on account of any counterclaim.

 

		12.7	Expenses.

 

Each
Party shall pay its own fees and expenses incurred by it in connection with this Agreement and other documents to be delivered
hereunder or thereunder, except as specifically provided to the contrary in this Agreement.

 

		12.8	Counterparts.

 

This
Agreement may be executed in any number of counterparts and any Party hereto may execute any such counterpart, each of which when
executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one
and the same instrument.

 

		12.9	Headings,
                                         etc.

 

The
article and section headings contained in this Agreement are solely for convenience of reference, are not part of the agreement
of the Parties and shall not be used in construing this Agreement or in any way affect the meaning or interpretation of this Agreement.

    	46

    	 

    

  

		12.10	Entire
                                         Agreement; Severability.

 

This
Agreement and the Schedules and Exhibits, the Ancillary Agreements, the certificates and other instruments and documents delivered
pursuant hereto embody the entire agreement of the parties hereto in respect of, and there are no other agreements or understandings,
written or oral, among the parties relating to, the subject matter hereof. This Agreement supersedes all prior agreements and
understandings, written or oral, between the parties with respect to the subject matter hereof, including the LOI of March 6,
2014.

 

		12.11	Governing
                                         Law.

 

This
Agreement shall be governed by and construed in accordance with the laws of France.

 

		12.12	Dispute
                                         Resolution

 

		12.12.1.	The
                                         Parties shall do their best effort to settle amicably any dispute, controversy or claim
                                         arising out of or in connection with this Agreement or the breach, termination or validity
                                         thereof (a "Dispute") within 30 Business Days following the notification
                                         by one of the Party to the other of such Dispute.

 

		12.12.2.	Should
                                         the Parties fail to reach such settlement, the Parties shall then refer the dispute to
                                         proceedings under the ICC Mediation Rules. If the dispute has not been settled pursuant
                                         to the said Rules within sixty (60) Business Days following the filing of a Request for
                                         Mediation or within such other period as the Parties may agree in writing, such dispute
                                         shall thereafter be finally settled under the Rules of Arbitration of the International
                                         Chamber of Commerce ("ICC") (the "Rules"), which Rules
                                         are deemed to be incorporated by reference into this clause except as expressly modified
                                         herein. The seat of the arbitration shall be Paris (France). The arbitration proceedings
                                         shall be conducted in English and documentary exhibits may be admissible in English or
                                         in any other language so long as a certified English translation is provided. The arbitral
                                         tribunal shall consist of three arbitrators and shall not have the power of ex
                                         aequo et bono.

 

		12.12.3.	The
                                         Parties hereby waive any rights of application or appeal to any other court having jurisdiction
                                         to the fullest extent permitted by law in connection with any question of law arising
                                         in the course of the arbitration or with respect to any award made, except for actions
                                         to enforce an arbitral award and actions seeking interim, interlocutory or other provisional
                                         relief in any court of competent jurisdiction.

 

		12.12.4.	The
                                         award shall be final and binding upon the Parties, and shall be the sole and exclusive
                                         remedy between the Parties regarding any claims, counterclaims, issues, or accounting
                                         presented to the arbitral tribunal. Judgment upon any award may be entered in any court
                                         having jurisdiction.

 

    	47

    	 

    

 

		12.12.5.	The
                                         Parties shall each bear their own costs and expenses and an equal share of the arbitrators'
                                         fees and expenses and administrative fees of the arbitration.

 

		12.12.6.	Any
                                         monetary award shall be made and promptly payable in Euro and the arbitral tribunal shall
                                         be authorized in its discretion to grant pre-award and post-award interest at commercial
                                         rates. Any costs, fees, or taxes incident to enforcing the award shall, to the maximum
                                         extent permitted by law, be charged against the Party resisting such enforcement.

 

		12.12.7.	This
                                         Agreement and the rights and obligations of the Parties shall remain in full force and
                                         effect pending the award in any arbitration proceeding hereunder.

 

		12.12.8.	All
                                         notices by one Party to another party in connection with the arbitration shall be in
                                         accordance with the provisions of Section 12.3 except that no notice may be transmitted
                                         solely by facsimile.

 

		12.12.9.	This
                                         Agreement to arbitrate shall be binding upon the successors and assigns of each Party.

 

		12.13	Exhibits
                                         and Schedules.

 

All
Exhibits and Schedules hereto are hereby incorporated by reference into this Agreement and are hereby made a part hereof.

 

		12.14	Interpretation.

 

		12.14.1.	When
                                         a reference is made in this Agreement to a section or article, such reference shall be
                                         to a section or article of this Agreement unless otherwise clearly indicated to the contrary.

 

		12.14.2.	A
                                         reference to any Party to this Agreement or any other agreement or document shall include
                                         such Party's successors and permitted assigns.

 

		12.14.3.	A
                                         reference to any legislation or to any provision of any legislation shall include any
                                         amendment to, and any modification or re-enactment thereof, any legislative provision
                                         substituted therefore and all regulations and statutory instruments issued thereunder
                                         or pursuant thereto.

 

		12.15	Conflict.
                                         

 

In
the event of any conflict between the provisions of the Ancillary Agreements (including the Real Estate Transfer Deed), on the
one hand, and the provisions of this Agreement, on the other hand, then, the provisions of this Agreement shall prevail as between
the parties. The Parties acknowledge and agree that the execution of the Ancillary Agreements (including the Real Estate Transfer
Deed) contemplated in this Transaction, will not represent a novation nor an amendment to this Agreement.

 

Nothing
contained in the Ancillary Agreements (including the Real Estate Transfer Deed), shall be construed to expand nor to restrict
the representations, warranties and covenants of the Parties set forth in this Agreement.

 

    	48

    	 

    

  

		12.16	VAT
                                         exemption regime

 

As
the transfer contemplated in this Agreement is a transfer in return for payment concerning a complete set of assets, within the
meaning of such term under the tax regulations (especially the BOI-TVA-CHAMP-10-10-50-10-20121001), on the one hand, and the Seller
and Purchaser being subject to VAT, on the other hand, the Parties agree to take advantage of the exemption from VAT provided
by Section 257 bis of the French Tax Code applicable to deliveries of goods, provision of services and transactions, carried out
between persons liable for value added tax under conditions; for this purpose, the Purchaser undertakes to make subsequent sales
of such assets subject to VAT and, if applicable, to make the adjustments provided for in Section 207 of Appendix II the French
Tax Code.

 

In
accordance with the provisions of Section 287-5, c) of the French Tax Code, the Parties shall mention the total amount exclusive
of tax of the assets thus transferred on their VAT return entered into for the period during which this Transfer is carried out.

 

In
the event of any difficulty due to the application of this provision, the Purchaser undertakes to personally arrange for the payment
of the VAT due pursuant to this Agreement. The Seller shall then issue an invoice in accordance with the provisions of French
law, which includes inter alia, an indication of the amount of VAT.

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first above written in Paris.

 

	 	/s/ Michael S. Anderson
	 	FLAMEL TECHNOLOGIES
	 	By:  Michael S ANDERSON
	 	Chief Executive Officer
	 	 
	 	/s/ Mark Quick
	 	RECIPHARM PESSAC
	 	By:  Mark QUICK
	 	Executive Vice President Corporate Development of RECIPHARM AB
	 	Duly authorized to sign on behalf of RECIPHARM PESSAC

 

    	49

    	 

    

 

Schedule
A

Definitions

 

“Acquired
Assets” has the meaning set forth in Section 1.1.1.

 

"Assumed
Contracts" has the meaning set forth in Section 1.2.

 

"Acquired
Inventory" has the meaning set forth in Section 1.1.4.

 

"Acquired
IP Rights" has the meaning set forth in Section 1.1.1 (c).

 

“Acquired
Real Property" has the meaning set forth in Section 7.3.9.

 

"Acquired
Property" means, collectively, the Acquired Assets, the Acquired Real Property, the Assumed Contracts and the Acquired
Inventory.

 

"Assumed
Contracts" has the meaning set forth in Section 1.2.

 

"Assumed
Liabilities" has the meaning set forth in Section 1.3.

 

"Affiliate"
of any corporate person means any other person that directly or indirectly, through one or more intermediaries, controls, is controlled
by, or is under common control with, the first mentioned Person. A person shall be deemed to control another person if such first
mentioned persons owns, directly or indirectly, 50 % or more of the voting rights of the second mentioned person.

 

"Affiliated
Companies" means the entities in which the relevant party owns, directly or indirectly, more than 50 % of the
outstanding equity interest and voting rights.

 

"Agreement"
has the meaning set forth in the Recitals.

 

"Ancillary
Agreements" means the Quality Agreement, the Master Services Agreement, the Supply Agreement, the Services Agreement,
the Transitional Services Agreement and the Short-Form Agreement, as all included in Schedule 4.2.1 (i) (a) to (f),
as well as the Real Estate Transfer Deed.

 

“Business
Assets” means the tangible assets described in Section 1.1.1 (a)

 

"Business
Day(s)" means days on which banks in France, Sweden and in the United States are open for business, not being a Saturday
or a Sunday or a public/bank holiday.

 

“Business
Plan” means the financial projections provided by Seller, as set forth in Schedule 5.16.

 

“Business
Receivables” means all amounts receivable by or owing to the Seller as at the Closing Date (whether or not any such
amounts are then due and payable) for goods and/or services supplied by the Seller or otherwise receivable by or owing to the
Seller in connection with the Pessac Business.

 

"Claim
Notice" has the meaning set forth in Section 9.4.1.

 

    	50

    	 

    

 

“Closing”
means the time at which the Seller consummates the sale, assignment, transfer and delivery of the Acquired Property and the Acquired
Real Property to Purchaser, and Purchaser assumes the Assumed Liabilities and the Assumed Contracts, as provided herein, by the
execution and delivery by the Seller of the documents and instruments referred to in Section 4.2.1 against delivery by Purchaser
of the documents, instruments and payments referred to in Section 4.2.2

 

"Closing
Date" has the meaning set forth in Section 4.1.

 

"Closing
Purchase Price" has the meaning set forth in Section 2.1.3.

 

"Direct
Claim" has the meaning set forth in Section 9.4.1.

 

“Disclosure
Schedules" has the meaning set forth in ARTICLE V.

 

"Dispute"
has the meaning set forth in Section 12.12.1.

 

“DR
Documents" has the meaning set forth in Section 6.5.

 

"Effective
Date" has the meaning set forth in the first paragraph of ARTICLE V.

 

"Execution
Date" means the date of execution of this Agreement.

 

"Encumbrances"
means any liens, charges, pledges or other security interests or encumbrances or other third party rights.

 

"Enforceability
Exception" means any limit to enforceability of a contract under bankruptcy, reorganization and similar losses affecting
enforcement of creditors' rights generally.

 

"Environmental
Law" mean any Law governing pollution, the protection of the environment and health and safety matters as well as waste
and resource consumption regulations.

 

"Environmental
Permits" has the meaning set forth in Section 5.13.2.

 

"Governmental
Approval" means any approvals, consents, permits, rulings, waivers, exemptions or other authorizations issued, granted,
given or otherwise made available by or under the authority of any Governmental Authority.

 

"Governmental
Authority" means a court, arbitral tribunal, administration agency or other regulatory authority, including social
security and tax authorities.

 

    	51

    	 

    

  

"GSK
Agreements” means (i) the following agreements entered into by and between Seller and SmithKline Beecham (Cork) Limited,
a company organized under the laws of the country of Ireland with a place of business at Curraghbinny, Carrigaline, Country Cork,
Ireland, and or its Affiliates ("GSK"): the Supply Agreement for Commercial Manufacturing, dated effective January
1, 2011 and the First Amendment to Supply Agreement for Commercial Supply dated effective as of the Closing Date; the Side Agreement
dated December 3, 2004 as amended by letter agreement dated November 10, 2005; the Letter Agreement dated July 28, 2006 ; the
Second Amendment to Side Agreement relating to Coreg CR dated effective as of the Closing Date; the equipment Letter Agreement
dated effective as of the Closing Date and (ii) the Consent to Assignment of Supply and Other Arrangements entered into
by and between Seller, GSK and Purchaser and dated effective as of the Closing Date.

 

“GSK
Inventory” means the API belonging to GSK and delivered at the Pessac Facility under the GSK Agreements.

 

“GSK
License Agreement” means the license agreement entered into by and between Seller and SB Pharmco Puerto Rico, Inc.,
a GlaxoSmithKline company, dated March 26, 2003, as amended effective on 18th October 2004, 16th March 2007
and 17th September 2012 and by the Letter Amendment dated April 26, 2013, and as further amended from time to time.....

 

"ICC"
has the meaning set forth in Section 12.12.2.

 

"Indemnifying
Party" has the meaning set forth in Section 9.3.

 

“Independent
Accountants” means any first rank independent accounting firm appointed by mutual agreement of the Seller and Purchaser,
or, in the absence of agreement, any first rank independent accounting firm appointed by the President of the Paris Commercial
Court.

 

"Intellectual
Property Rights" shall mean (i) all French, European, international and foreign patents and applications therefore
and all reexaminations, reissues, divisions, renewals, extensions, provisionals, continuations and continuations-in-part thereof;
(ii) Know-How (including for the avoidance of doubt, the Pessac Know-How); (iii) all copyrights, copyrights registrations
and applications therefore, and all other rights corresponding thereto throughout the world; (iv) all domain names, uniform
resource locators ("URLs") and other names and locators associated with the Internet; (v)  rights in computer softwares,
including, without limitation, all source code, object code, and firmware; and (vi) all trade names, logos, common law trademarks
and service marks, trademark and service mark registrations and applications therefore throughout the world.

 

"Know-How"
means undisclosed or confidential information (such as know-how, trade secrets and inventions (whether patentable or not)) and
proprietary information (including plans, specifications and drawings).

 

"Law"
means any statute, rule, regulation, ordinance, code, judgment, order, writ, injunction, decree or other requirement of any court
or of any governmental body, agency or administration, including European Union’s Regulations and directives, including
any mandatory provisions under any regulations applicable to the pharmaceutical industry.

 

    	52

    	 

    

 

"Liability"
means any indebtedness, liability, duty or obligation of any kind, whether deriving from contract, statute or otherwise, whether
present or future, actual or contingent, ascertained or unascertained, and whether owed or incurred severally or jointly or as
principal or surety.

 

"Loss"
means damages, losses, deficiencies, liabilities, costs and expenses (including reasonable attorney’s fees), to the
exclusion of consequential, incidental or indirect damages, lost profits or punitive, special or exemplary damages; in particular,
no “multiple of profits” or “multiple of cash flow” or similar valuation methodology shall be used in
calculating the amount of any Loss.

 

“Material
Adverse Change” shall mean the occurrence of any event, fact or circumstance, which :

 

		o	is
                                         outside the control of the Parties, directly and specifically adversely affects the Pessac
                                         Business or the Pessac Facility in a material manner, and has a lasting (durable)
                                         material effect, or can reasonably be expected to have a lasting (durable) material
                                         adverse effect, on the value of the Acquired Properties and/or the sustainability of
                                         the Pessac Business; and

 

		o	is
                                         not caused by (x) general financial, economic, market or political conditions or economic
                                         or business conditions affecting the pharmaceutical business generally (including as
                                         a result of a change in the price of raw materials), (y) any act by Purchaser or any
                                         of its Affiliates, (z) the announcement or pendency of the Transaction;

 

		o	if
                                         capable of remedy, shall not have been cured by Seller prior to the Closing Date.

 

“Material
Contract” has the meaning set forth Section 1.2.

 

"Permits"
means all consents, licenses, permits or authorizations granted or required for the conduct of the Pessac Business.

 

"Permitted
Liens" means encumbrances for current taxes or assessments, not delinquent, clause de reserve de propriété,
and all encumbrances arising and continuing in the ordinary course of business, for obligations which are not delinquent,
and which do not materially affect the value of the assets of the Pessac Business or the Purchaser, as the case may be.

 

"Permitted
Real Property Encumbrances" means any Permitted Lien related to any real property and any easement, right of use
or other third party adverse right which does not materially affect the conduct of the Pessac Business as conducted as of the
date hereof.

 

"Person"
means any natural person, partnership, corporation, limited liability company, business trust, joint stock company, unincorporated
association, joint venture, Governmental Authority or other entity or organization.

 

"Pessac
Business" has the meaning set forth in the Recitals.

 

    	53

    	 

    

 

“Pessac
Facility” has the meaning set forth in the recitals.

 

“Pessac Know-How”
means the Know-How relating to the Pessac Business, including the Know-How relating to the manufacturing by spray-coating,
wet-granulation or extrusion-spheronization but excluding any Know-How related to the Flamel Drug Delivery Platforms.

 

“Pessac
Records” has the meaning set forth in Section 1.1.1 (c).

 

"Post-Closing
Taxes" has the meaning set forth in Section 8.1.2.

 

"Pre-Closing
Taxes" has the meaning set forth in Section 8.1.2.

 

"Product"
means Coreg CR microparticles as manufactured by Seller at the date hereof under a supply contract with SmithKline Beecham (Cork)
Limited dated on 30 September 2011.

 

"Purchaser
Group" shall mean the Purchaser and each of its Affiliated Companies specifically operating in the field of the Pessac
Business.

 

"Purchaser"
has the meaning set forth in the Recitals

 

“Quality
Agreement" means the quality agreement to be executed on the Closing Date substantially in the form attached
in Schedule 4.2.1 (i) (a). 

 

“Real
Estate Transfer Deed” has the meaning set forth in Section 7.3.9.

 

"Real
Property Encumbrances" means any encumbrance of any kind (meaning any pledge, mortgage, seizure, privilege, lien, usufruct,
right of pre-emption, enjoyment or claim, easement, right of first refusal or any third party option right or any other encumbrance
or security interest of any kind).

 

“Required
Assets” has the meaning set forth in Section 5.5.2.

 

"Retained
Liabilities" has the meaning set forth in Section 1.3.2.

 

"Seller"
means FLAMEL TECHNOLOGIES.

 

"Seller
Group" means the Seller and its Affiliates..

 

"Service
Agreement" means the services agreement to be executed on the Closing Date substantially in the form attached
in Schedule 4.2.1 (i) (d). 

 

"Servier
Agreements” has the meaning set forth in Section 4.2.1 (iii).

 

“Short-Form
Agreement” has the meaning set forth in Section 7.3.7.

 

"Supply
Agreement" means the supply agreement to be executed on the Closing Date substantially in the form attached
in Schedule 4.2.1 (i) (c) 

 

"Tax
Claims" means any and all actions, suits, claims or legal administrative, arbitration, governmental or other proceeding
or investigations in connection with Pre-Closing Taxes imposed upon the Purchaser Group.

 

    	54

    	 

    

 

"Tax
Returns" means any return, declaration, report, claim for refund, or information return or statement relating
to Taxes, including any such document prepared on a consolidated, combined or unitary basis and also including any schedule or
attachment thereto, and including any amendment thereof.

 

"Taxes"
shall mean any taxes and more generally any mandatory levies (including their principal amount and, as the case may be, penalties,
surcharges and interest thereon). Taxes include, without limitation, (i) any tax (governmental, departmental or local), governmental
fee or other like assessment or charge of any kind whatsoever (including any net income, alternative or add-on minimum tax, gross
income, gross receipts, sales, use, ad valorem, value added, transfer, franchise, profits, license, withholding tax on amounts
paid, payroll, employment, excise, severance, registration, stamp, capital stock, occupation, property, environmental or windfall
profit tax, premium, custom, duty or other tax), together with any interest, penalty, addition to tax or additional amount due,
imposed by any Governmental Authority (French or foreign) responsible for the imposition of any such tax, (ii) any liability for
the payment of any amount of the type described in clause (i) above as a result of a party to this Agreement being a member of
an affiliated, consolidated or combined group with any other corporation at any time prior to the Closing Date.

 

"Transfer
Taxes" shall mean any Taxes triggered by the sale of the Acquired Assets and the Acquired Real Property under this Agreement.

 

"Third
Party Claim" has the meaning set forth in Section 9.4.1.

 

"Third
Party" means any Person other than the parties hereto and their respective Affiliates.

 

"Transaction"
means all the transactions provided for or contemplated in this Agreement and the Ancillary Agreements.

 

"Transaction
Documents" has the meaning set forth in Section 5.1.

 

“Transitional
Services Agreement” means the transitional services agreement to be executed on the Closing Date substantially
in the form attached in Schedule 4.2.1 (i) (e). 

 

"Transferred
Employees" has the meaning set forth in Section 5.12.1.

 

“Subsidies”
means any monetary grants made to the Seller for the Pessac Business or the Pessac Facility by a Governmental Authority for any
purposes.

  

    	55

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