Document:

<PAGE>

CONFIDENTIAL TREATMENT REQUESTED                                    EXHIBIT 10.3

CONFIDENTIAL TREATMENT REQUESTED: INFORMATION FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED IS OMITTED AND IS NOTED WITH "[CONFIDENTIAL TREATMENT
REQUESTED]." AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

--------------------------------------------------------------------------------

             AMENDED AND RESTATED MYSOLINE ASSET PURCHASE AGREEMENT

                                 by and between

                        ELAN PHARMA INTERNATIONAL LIMITED

                                       and

                           XCEL PHARMACEUTICALS, INC.

                            dated as of April 1, 2001

--------------------------------------------------------------------------------

<PAGE>

                                                          CONFIDENTIAL TREATMENT

                                Table of Contents

<TABLE>
<CAPTION>
                                                                                Page
<S>              <C>                                                            <C>
ARTICLE I. Definitions.......................................................     1

Section 1.01     Defined Terms ..............................................     1
Section 1.02     Construction of Certain Terms and Phrases ..................     8

ARTICLE II. Purchase and Sale of Assets......................................     9

Section 2.01     Purchase and Sale of Assets ................................     9
Section 2.02     Assignability and Consents .................................     9

ARTICLE III. Assumption of Liabilities.......................................    10

Section 3.01     Assumption of Assumed Liabilities ..........................    10

ARTICLE IV. Purchase Price and Payment.......................................    10

Section 4.01     Purchase Price .............................................    10
Section 4.02     Purchase Price Adjustment ..................................    12
Section 4.03     Purchase of Product Inventory ..............................    14
Section 4.04     Payment of Sales, Use and Other Taxes ......................    14
Section 4.05     Impact of Failure to Make Payments .........................    14

ARTICLE V. Closing...........................................................    14

Section 5.01     Time and Place .............................................    14
Section 5.02     Deliveries at Closing ......................................    15

ARTICLE VI. Representations and Warranties of Seller.........................    16

Section 6.01     Books and Records ..........................................    16
Section 6.02     Corporate Organization .....................................    16
Section 6.03     Authority of Seller ........................................    16
Section 6.04     Consents and Approvals .....................................    17
Section 6.05     Non-Contravention ..........................................    17
Section 6.06     Assumed Contracts ..........................................    17
Section 6.07     Purchased Assets Generally .................................    18
Section 6.08     Intellectual Property Rights ...............................    18
Section 6.09     Litigation .................................................    18
Section 6.10     Compliance with Law ........................................    19
Section 6.11     Regulatory Matters .........................................    19
Section 6.12     Brokers ....................................................    19
Section 6.13     Disclosure .................................................    19
Section 6.14     No Other Warranties ........................................    20
</TABLE>

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                                                          CONFIDENTIAL TREATMENT

<TABLE>
<S>              <C>                                                            <C>
ARTICLE VII. Representations and Warranties of Buyer.........................    20

Section 7.01     Corporate Organization .....................................    20
Section 7.02     Authority of Buyer .........................................    20
Section 7.03     Consents and Approvals .....................................    20
Section 7.04     Non-Contravention ..........................................    21
Section 7.05     Litigation .................................................    21
Section 7.06     Brokers ....................................................    21

ARTICLE VIII. Covenants of the Parties.......................................    22

Section 8.01     Non-Assertion of Intellectual Property Rights ..............    22
Section 8.02     Cooperation ................................................     2
Section 8.03     Access .....................................................     2
Section 8.04     Public Announcements .......................................    23
Section 8.05     Non-Solicitation ...........................................    23
Section 8.06     Corporate Names ............................................    23
Section 8.07     Handling of Product Inventory ..............................    24
Section 8.08     Differentiation of Products ................................    24
Section 8.09     Regulatory Matters .........................................    24
Section 8.10     Product Returns, Chargebacks and Rebates ...................    25
Section 8.11     Adverse Experience Reports .................................    27
Section 8.12     Multi-Product Contracts ....................................    27
Section 8.13     Manner of Business .........................................    28
Section 8.14     Assumption of Ongoing Clinical Trials ......................    28
Section 8.15     Compliance Audits ..........................................    28
Section 8.16     Labeling Requirements ......................................    28
Section 8.17     Sale of Mysoline Suspension ................................    28
Section 8.18     Further Assurances .........................................    28

ARTICLE IX. Conditions to the Obligations of Seller..........................    29

Section 9.02     No Actions or Proceedings ..................................    29
Section 9.03     Consents ...................................................    29
Section 9.04     Other Closing Deliveries ...................................    29
Section 9.05     Completion of Equity Financing .............................    29

ARTICLE X. Conditions to the Obligations of Buyer............................    29

Section 10.01    Representations, Warranties and Covenants ..................    29
Section 10.02    No Actions or Proceedings ..................................    30
Section 10.03    Consents ...................................................    30
Section 10.04    Other Closing Deliveries ...................................    30

ARTICLE XI. Indemnification..................................................    30

Section 11.01    Survival of Representations, Warranties, Etc ...............    30
Section 11.02    Indemnification ............................................    30
</TABLE>

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                                                          CONFIDENTIAL TREATMENT

<TABLE>
<S>              <C>                                                            <C>
Section 11.03    Limitations ................................................    33
Section 11.04    Limitation of Liability ....................................    34

ARTICLE XII. Miscellaneous                                                       34

Section 12.01    Confidentiality ............................................     3
Section 12.02    Notices ....................................................    35
Section 12.03    Entire Agreement ...........................................    36
Section 12.04    Waiver .....................................................    36
Section 12.05    Amendment ..................................................    36
Section 12.06    Third Party Beneficiaries ..................................    36
Section 12.07    Assignment; Binding Effect .................................    36
Section 12.08    Headings ...................................................    36
Section 12.09    Severability ...............................................    37
Section 12.10    Governing Law ..............................................    37
Section 12.11    Expenses ...................................................    37
Section 12.12    Counterparts ...............................................    37
Section 12.13    Schedules, Exhibits and Other Agreements ...................    37
</TABLE>

                                      -iii-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

             AMENDED AND RESTATED MYSOLINE ASSET PURCHASE AGREEMENT

This Amended and Restated Mysoline Asset Purchase Agreement (this "Agreement")
                                                                   ---------
is made and entered into as of April 1, 2001, by and between Xcel
Pharmaceuticals, Inc., a Delaware corporation ("Buyer"), and Elan Pharma
                                                -----
International Limited, a corporation organized under the laws of the Republic of
Ireland ("Seller").
          ------

                                    RECITALS
                                    --------

WHEREAS, subject to the terms and conditions of this Agreement, Seller sold to
Buyer, and Buyer purchased from Seller, the Purchased Assets (as defined below)
pursuant to that certain Mysoline Asset Purchase Agreement (the "Prior
                                                                 -----
Agreement") dated as of April 1, 2001 by and between Buyer and Seller; and
---------

WHEREAS, the Parties desire to amend and restate the Prior Agreement as set
forth herein effective as of April 1, 2001.

                                    AGREEMENT
                                    ---------

NOW, THEREFORE, in consideration of the premises and the mutual covenants and
promises contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which hereby are acknowledged, the Parties agree to
amend and restate the Prior Agreement as follows:

                             ARTICLE I. Definitions
                             ----------------------

   Section 1.01 Defined Terms.

As used in this Agreement, the following defined terms have the meanings
described below:

     (a) "Action or Proceeding" means any action, suit, proceeding, arbitration,
          --------------------

Order, inquiry, hearing, assessment with respect to fines or penalties or
litigation (whether civil, criminal, administrative, investigative or informal)
commenced, brought, conducted or heard by or before, or otherwise involving, any
Governmental or Regulatory Authority.

     (b) "Activity Date" has the meaning set forth in Section 8.10(d).
         --------------

     (c) "Adverse Effect" means an effect or condition that individually or in
          --------------
the aggregate or together with all other events, or changes, or occurrences is,
or reasonably could be expected to be, (i) materially adverse to the Purchased
Assets, the business, results of operations, or financial condition of the
Business, or the Product or (ii) materially adverse to the ability of the Seller
to consummate the transactions contemplated by this Agreement.

     (d) "Affiliate" means, with respect to any Person, any other Person which
          ---------
controls, is controlled by or is under common control with such person or
entity. A person or entity shall be regarded as in control of another entity if
it owns or controls, directly or indirectly, (i) in the case of corporate
entities at least fifty percent (50%) (or the maximum ownership interest
permitted by law) of the equity securities in the subject entity entitled to
vote in the

                                       -1-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

election of directors and, (ii) in the case of an entity that is not a
corporation, at least fifty percent (50%) (or the maximum ownership interest
permitted by law) of the equity securities or other ownership interests with the
power to direct the management and policies of such subject entity or entitled
to elect the corresponding management authority, provided, however, that the
term "Affiliate" shall not include subsidiaries or other entities in which a
      ---------
Party or its Affiliates owns a majority of the ordinary voting power necessary
to elect a majority of the board of directors or other governing board, but is
restricted from electing such majority by contract or otherwise, until such time
as such restrictions are no longer in effect.

     (e) "Agreement" has the meaning set forth in the Preamble hereto.
          ----------

     (f) "Assets and Properties" of any Person means all assets and properties
          ---------------------
of any kind, nature, character and description (whether real, personal or mixed,
whether tangible or intangible, whether absolute, accrued, contingent, fixed or
otherwise and wherever situated), including the goodwill related thereto,
operated, owned or leased by such Person, including cash, cash equivalents,
accounts and notes receivable, chattel paper, documents, instruments, general
intangibles, regulatory approvals, equipment, inventory, goods and intellectual
property.

     (g) "Assumed Contract" means any Contract or portion of a Contract to which
          ----------------
Seller or any of its Affiliates is a party that relates exclusively to the
manufacture, marketing, sale or distribution of the Product, including those
Contracts listed on Section 6.06 of the Seller Disclosure Schedule, but
excluding any Multi-Product Contracts.

     (h) "Assumed Liabilities" means (i) all accounts payable incurred by Buyer
          -------------------
or an Affiliate of Buyer with respect to the Business subsequent to the Closing,
(ii) all Liabilities and obligations that Buyer has expressly assumed or agreed
to assume under this Agreement, (iii) all Liabilities and obligations under or
pursuant to the Assumed Contracts to be performed following the Closing, but
only to the extent that the obligations to pay or perform under such
Liabilities, obligations or Assumed Contracts arise following the Closing and
relate to goods or services or other benefit received by Buyer after the
Closing, (iv) except as otherwise provided herein, all state and federal
Medicaid/Medicare rebates related to Product sold after Closing, (v) except as
otherwise provided herein, all credits, chargeback rebates, utilization based
rebates, reimbursements and similar payments to wholesalers and other
distributors, buying groups, insurers and otherinstitutions related to Product
that is sold after Closing, (vi) all Liabilities and obligations relating to
product liability claims or threatened claims or injuries caused by Product sold
by Buyer after the Closing, and (vii) except as otherwise provided herein, all
other Liabilities and obligations that arise out of or are related to the
ownership of the Purchased Assets (including the Regulatory Approvals) or the
Product Inventory, or operation of the Business from and after the Closing.

     (i) "Books and Records" means all files, documents, instruments, papers,
          -----------------
books and records (scientific or financial), excluding Marketing Materials,
owned by Seller or an Affiliate of Seller relating exclusively to the Business,
including any pricing lists, training materials, customer lists, vendor lists,
financial data, and all documentation relating to the Intellectual Property or
the Registered Intellectual Property, but excluding any such items to the extent
that (i) any applicable Law prohibits their transfer or (ii) any transfer
thereof would subject Seller or any of its Affiliates to any contractual or
other Liability or obligation.

                                       -2-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

     (j) "Business" means the activities of manufacturing, marketing, selling
          --------
and distributing the Product in the Territory.

     (k) "Business Day" means a day other than Saturday, Sunday or any day on
          ------------
which banks located in New York are authorized or obligated to close.

     (l) "Buyer" has the meaning set forth in the Preamble to this Agreement.
          -----

     (m) "Buyer Disclosure Schedule" has the meaning set forth in Article VII
          -------------------------
hereof.

     (n) "Buyer Governmental Consent" has the meaning set forth in Section
          --------------------------
7.03(a).

     (o) "Buyer Indemnified Parties" has the meaning set forth in Section
          -------------------------
11.02(a).

     (p) "Buyer Labeling" means the printed labels, labeling and packaging
          --------------
materials, including printed carton, container label and package inserts, used
by Buyer and bearing Buyer's name for the Product.

     (q) "Buyer Third Party Consent" has the meaning set forth in Section
          -------------------------
7.03(b).

     (r) "Closing" has the meaning set forth in Section 5.01.
          -------

     (s) "Closing Date" means the date that the Closing actually occurs as
          ------------
provided in Section 5.01.

     (t) "Confidential Information" has the meaning set forth in Section 12.01.
          ------------------------

     (u) "Contract" means any and all commitments, contracts, purchase orders, l
          --------

     (v) "Corporate Names" has the meaning set forth in Section 8.06(a). eases,
          ---------------
or other agreements, whether written or oral.

     (w) "Damages" has the meaning set forth in Section 11.02(a).
          -------

     (x) "Diastat" means (x) a viscous, aqueous-based composition of diazepam
          ------
formulated by or on behalf of Buyer for rectal administration, including any
formulation covered by a Patent, and (y) any device licensed, sublicensed,
developed or owned by the Buyer for use in conjunction with the foregoing,
together, as sold by or on behalf of Buyer under the registered trademark
"Diastat."

     (y) "Disclosing Party" has the meaning set forth in Section 12.01.
          ----------------

     (z) "Dollars" and the sign "$" each means lawful money of the United
          -------
States.

     (aa) "Encumbrance" means any mortgage, pledge, assessment, security
           -----------
interest, deed of trust, lease, lien, adverse claim, levy, charge or other
encumbrance of any kind, or any conditional sale or title retention agreement or
other agreement to give any of the foregoing in the future.

                                       -3-

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                                                          CONFIDENTIAL TREATMENT

     (bb) "Excluded Assets" means all Assets and Properties of Seller and its
           ---------------
Affiliates except thePurchased Assets and the Product Inventory.

     (cc) "Excluded Liabilities" means all Liabilities of Seller and its
           --------------------
Affiliates except the Assumed Liabilities.

     (dd) "Expiration Date" means the date twelve (12) months after the Closing
           ---------------
Date.

     (ee) "Fourth Quarter" has the meaning set forth in Section 4.02.
           --------------

     (ff) "Governmental or Regulatory Authority" means any court, tribunal,
           ------------------------------------
arbitrator, authority, agency, commission, official or other instrumentality of
the United States or other country, or any supra-national organization, state,
county, city or other political subdivision thereof.

     (gg) "Gross Profit" means Net Sales for a particular product less cost of
           ------------
goods sold determined in accordance with Generally Accepted Accounting
Principles consistently applied.

     (hh) "Indemnification Claim Notice" has the meaning set forth in Section
           ----------------------------
11.02(c).

     (ii) "Indemnified Party" has the meaning set forth in Section 11.02(c).
           ----------------

     (jj) "Indemnifying Party" has the meaning set forth in Section 11.02(c).
           ------------------

     (kk) "Indemnitee" and "Indemnitees" have the respective meanings set forth
          ----------
in Section 11.02(c).

     (ll) "Intellectual Property" means any and all of the following
           ---------------------
intellectual property rights owned by or licensed to Seller and its Affiliates
and used exclusively in connection with the Business: (i) Patents, (ii)
Know-how; (iii) copyrights, copyright registrations and applications therefor,
and all other rights corresponding thereto; (iv) brand names, trade names, trade
dress, logos, common law trademarks and service marks, and trademark and service
mark registrations, renewals andapplications therefor, including all good will
of the Business symbolized thereby or associated therewith (excluding the Elan
tradename and the Elan trademark and logo); (v) any similar or equivalent rights
to any of the foregoing in the Territory; and (vi) rights to sue and recover
damages or obtain injunctive relief for infringement, dilution or
misappropriation of the items set forth in clauses (i) - (v) above.

     (mm) "Know-how" means all information and materials owned or licensed by
           --------
Seller and its Affiliates and used exclusively in connection with the Business,
including any Product specifications, technical knowledge, expertise, skill,
practice, inventions, procedures, formulae, trade secrets, confidential
information, analytical methodology, processes, preclinical,

                                       -4-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

clinical, stability, toxicology and other data, market studies and all other
experience and know-how, in tangible or intangible form, whether or not patented
or patentable; provided, however, that Know-how shall not include (i) any plant,
property, equipment or employees, and (ii) any items to the extent that any
applicable Law prohibits their transfer or any transfer thereof would subject
Seller or any of its Affiliates to any material Liability or other obligation.

     (nn) "Knowledge" with respect to any Party, means the actual knowledge of
           ---------
the senior management (or persons performing similar functions) of such Person.

     (oo) "Law" means any federal, state or local law, statute or ordinance, or
           ---
any rule, regulation, or published guidelines promulgated by any Governmental
or Regulatory Authority.

     (pp) "Liability" means any liability (whether known or unknown, asserted or
           ---------
unasserted, absolute or contingent, accrued or unaccrued, liquidated or
unliquidated, and due or to become due), including any liability for Taxes.

     (qq) "Marketing Materials" means all market research, marketing plans,
           -------------------
media plans, advertising, promotional and marketing books and records owned by
Seller and its Affiliates as of the Closing and used exclusively in connection
with the marketing or promotion of the Product, other than any such items to the
extent that (i) any applicable Law prohibits their transfer or (ii) any transfer
thereof would subject Seller or any of its Affiliates to any contractual or
other Liability or obligation.

     (rr) "Maximum Returns Credit Amount" has the meaning set forth in Section
           -----------------------------
8.10(a).

     (ss) "Multi-Product Contracts" has the meaning set forth in Section 8.12.
           -----------------------

     (tt) "Mysoline Credit" has the meaning set forth in Section 4.02.
           ---------------

     (uu) "Mysoline Payment" has the meaning set forth in Section 4.02.
           ----------------

     (vv) "Mysoline Quarterly Target" has the meaning set forth in Section 4.02.
           -------------------------

     (ww) "Mysoline Rx Demand Net Sales" means, for a given period, the total
           ----------------------------
number (i.e. from both new and refill prescriptions) of equivalent 100 tablet
packs of 50mg and 250mg Product dispensed, determined based on data reported by
Scott Levin SPA (Source Prescription Audit) national level audit and increased
by [CONFIDENTIAL TREATMENT REQUESTED] to account for channels of distribution
not fully captured by Scott Levin, multiplied by either (1) [CONFIDENTIAL
TREATMENT REQUESTED], in the case of 50mg packs, or (2) [CONFIDENTIAL TREATMENT
REQUESTED], in the case of 250mg packs.

     (xx) "Mysoline Suspension" means the liquid formulation of Product sold in
           -------------------
eight (8) fluid ounce bottles and more particularly described in NDC No.
0430-08.d

     (yy) "Net Sales" means the gross amount invoiced for a specified product
           --------
for anapplicable period by Buyer or its Affiliates to third parties less:

                                       -5-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

             (i)   quantity, trade and/or cash discounts allowed or given;

             (ii)  credits or refunds allowed for the return of rejected,
     outdated, damaged or returned product;

             (iii) rebates, chargebacks and price adjustments allowed or given;
     and

             (iv)  sales and other excise taxes and duties directly related to
     the sale, transportation or delivery, to the extent that such items are
     included in the gross invoice price (but not including taxes assessed
     against the income derived from such sale).

Each of the items set forth in clauses (i)-(iv) above shall be deducted from the
gross amount invoiced only to the extent charged against Buyer or its Affiliates
and evidenced in Buyer's or its Affiliates' books and records of account.
Deductions shall be determined in accordance with U.S. Generally Accepted
Accounting Principles consistently applied. If product is sold for compensation
other than cash, Net Sales shall be calculated based on the gross list price of
the product on the date of sale.

Sales of product by and between a Party and its Affiliates are not sales to a
third party and shall be excluded from Net Sales calculations for all purposes.

     (zz)  "Non-disclosing Party" has the meaning set forth in Section 12.01.
            --------------------

     (aaa) "Non-Soliciting Party" has the meaning set forth in Section 8.05.
            --------------------

     (bbb) "Order" means any writ, judgment, decree, injunction or similar order
            ----
of any Governmental or Regulatory Authority (in each such case whether
preliminary or final).

     (ccc) "Ordinary Course of Business" means such action that is consistent
            ---------------------------
with the past practices of the Business.

     (ddd) "Parties" means Buyer and Seller.
            -------

     (eee) "Party" means each of Buyer and Seller.
            -----

     (fff) "Patent" means any patents, provisional patent applications and
            ------
similar instruments (including any divisions, continuations,
continuations-in-part, reissues, renewals, extensions or the like of any such
patent, application or instrument) as well as any foreign equivalents thereof
(including certificates of invention and any applications therefor).

     (ggg) "Permitted Encumbrance" means (i) any Encumbrance for Taxes not yet
            ---------------------
due or delinquent or for those Taxes being contested in good faith by
appropriate proceedings for which adequate reserves have been established and
(ii) any minor imperfection of title or similar Encumbrance that individually or
in the aggregate would not have an Adverse Effect.

     (hhh) "Person" means any natural person, corporation, general partnership,
            ------
limited partnership, limited liability company, proprietorship, other business
organization, trust, union, association or Governmental or Regulatory Authority.

                                       -6-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

     (iii) "Prior Agreement" has the meaning set forth in the Recitals hereto.
            ---------------

     (jjj) "Product" means the chemical substance 5-ethyldehydro-5-phenyl-4,6
            -------
(1H, 5H) pyrimidinedrone, otherwise known as Primidone, as sold by or on behalf
of Seller under the registered trademark "Mysoline." Without limiting the
foregoing, Product includes each of the formulations set forth on Exhibit A.

     (kkk) "Product Acquisition Financing Agreement" means that certain Product
            --------------------------------------
Acquisition Financing Agreement between Seller and Buyer dated March 31, 2001.

     (lll) "Product Inventory" means all inventory, including all inventory of
            -----------------
finished Product in sample form, owned as of the Closing by Seller or any
Affiliate thereof of finished Product or works in progress or materials used in
the manufacture of finished Product, whether held at a location or facility of
Seller or any Affiliate (or of any other Person on behalf of Seller or any
Affiliate) or in transit to or from Seller or any Affiliate (or any such other
Person); provided, however, that "Product Inventory" shall not include any
inventory of Mysoline Suspension.

     (mmm) "Purchase Price" has the meaning set forth in Section 4.01.
            --------------

     (nnn) "Purchase Price" has the meaning set forth in Section 4.01.
            --------------

     (ooo) "Purchased Assets" means, subject to Section 2.02 and except as
            ----------------
otherwise provided on the Seller Disclosure Schedule: (i) the Intellectual
Property; (ii) the Registered Intellectual Property; (iii) the Assumed
Contracts; (iv) the Books and Records; (v) the Regulatory Approvals; and (vi)
the Marketing Materials.

     (ppp) "Quarter" has the meaning set forth in Section 4.02.
            -------

     (qqq) "Registered Intellectual Property" means, as they relate exclusively
            --------------------------------
to the Product, all of the following Intellectual Property registered in the
Territory: (i) the registered trademarks and applications to register trademarks
identified in Section 6.08(a) of the Seller Disclosure Schedule.

     (rrr) "Regulatory Approvals" means, as they relate exclusively to the
            --------------------
Product and to the extent owned or licensed by Seller, the new drug applications
and new drug submissions for the Product identified in Section 6.11 of the
Seller Disclosure Schedule, all supplements thereto and all regulatory files
relating thereto, including any and all (i) regulatory filings and supporting
documents, clinical studies and tests (excluding DEA licenses, and wholesale,
distributor and pharmacy licenses); and (ii) records maintained under Good
Manufacturing Practices ("GMPs") or other record keeping or reporting
requirements of the FDA, the Environmental Protection Agency, the Occupational
Health and Safety Administration or any other Governmental or Regulatory
Authorities, including all investigational new drug applications, abbreviated
new drug applications, drug master files, FDA approvals for export, FDA warning
letters, FDA Notices of Adverse Finding Letters, FDA audit reports (including
any responses to such reports), all other correspondence and communications with
Governmental or Regulatory Authorities in connection with the Product, adverse
event files, IND safety reports

                                       -7-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

and complaint files (as well as any foreign equivalents of the foregoing) with
respect to the Product.

     (sss)  "Royalties" has the meaning set forth in Section 4.01(c).
             ---------

     (ttt)  "Royalty Term" has the meaning set forth in Section 4.01(c).
             ------------

     (uuu)  "Second Quarter" has the meaning set forth in Section 4.02.
             --------------

     (vvv)  "Seller" has the meaning set forth in the Preamble to this
             ------
Agreement.

     (www)  "Seller Disclosure Schedule" has the meaning set forth in the
             --------------------------
preamble to Article VI of this Agreement.

     (xxx)  "Seller Governmental Consent" has the meaning set forth in Section
             ---------------------------
6.04(a).

     (yyy)  "Seller Third Party Consent" has the meaning set forth in Section
             --------------------------
6.04(b).

     (zzz)  "Soliciting Party" has the meaning set forth in Section 8.05.
             ----------------

     (aaaa) "Tax" means all of the following tax in connection with the
             ---
operations of the Business or the transactions contemplated hereby: (i) any net
income, alternative or add-on minimum tax, gross income, gross receipts, sales,
use, ad valorem, transfer, franchise, profits, license, excise, severance,
stamp, occupation, premium, property, environmental or windfall profit tax,
custom, duty or other tax, governmental fee or other like assessment imposed by
an governmental, regulatory or administrative entity or agency responsible for
the imposition of any such tax (domestic or foreign); (ii) any Liability for the
payment of any amounts of the type described in (i) as a result of being a
member of any affiliated, consolidated, combined, unitary or other group for any
Taxable period; and (iii) any Liability for the payment of any amounts of the
type described in (i) or (ii) as a result of any express or implied obligation
to indemnify any other person.

     (bbbb) "Territory" means the United States, its territories and possessions
             ---------
and the Commonwealth of Puerto Rico.

     (cccc) "Third Party Claim" has the meaning set forth in Section 11.02(d).
             -----------------

     (dddd) "Third Quarter" has the meaning set forth in Section 4.02.
             -------------

     (eeee) "Transition Chargebacks" has the meaning set forth in Section
             ----------------------
8.10(d).

   Section 1.02  Construction of Certain Terms and Phrases.

Unless the context of this Agreement otherwise requires: (a) words of any gender
include each other gender; (b) words using the singular or plural number also
include the plural or singular number, respectively; (c) the terms "hereof,"
"herein," "hereby" and derivative or similar words refer to this entire
Agreement; (d) the terms "Article," "Section" or "Exhibit" refer to the

                                       -8-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

specified Article, Section or Exhibit of this Agreement; (e) the term "or" has,
except where otherwise indicated, the inclusive meaning represented by the
phrase, "and/or"; and (f) the term "including" means "including without
limitation." Whenever this Agreement refers to a number of days, such number
shall refer to calendar days unless Business Days are specified. All accounting
terms used but not defined herein shall have the meaning ascribed to such terms
under U.S. Generally Accepted Accounting Principles, consistently applied.

                    ARTICLE II. Purchase and Sale of Assets
                    ---------------------------------------

   Section 2.01      Purchase and Sale of Assets.

     (a) Subject to the terms and conditions of this Agreement, at the Closing,
Seller shall, or shall cause its relevant Affiliates to, sell, transfer, convey,
assign and deliver to Buyer, and Buyer shall purchase, acquire and accept from
Seller and such Affiliates, all of Seller's and each such Affiliate's right,
title and interest, as of the Closing, in and to the Purchased Assets relating
to the Territory.

     (b) Notwithstanding anything contained in this Agreement to the contrary,
(i) from and after the Closing, Seller and its Affiliates shall retain all of
their right, title and interest in and to the Excluded Assets and (ii) Seller
may retain an archival copy of all Assumed Contracts, Books and Records,
Marketing Materials and other documents or materials conveyed hereunder.

   Section 2.02      Assignability and Consents.

Notwithstanding anything to the contrary contained in this Agreement, if the
sale, assignment, transfer, conveyance or delivery or attempted sale,
assignment, transfer, conveyance or delivery to Buyer of any asset that would be
a Purchased Asset is (a) prohibited by any applicable Law or (b) would require
any authorizations, approvals, consents or waivers from a third Person or
Governmental or Regulatory Authority and such authorizations, approvals,
consents or waivers shall not have been obtained prior to the Closing, then in
either case the Closing shall proceed without the sale, assignment, transfer,
conveyance or delivery of such asset and this Agreement shall not constitute an
agreement for the sale, assignment, transfer, conveyance or delivery of such
asset; provided that nothing in this Section 2.02 shall be deemed to waive the
rights of Buyer not to consummate the transactions contemplated by this
Agreement if the conditions to its obligations set forth in Article X have not
been satisfied. In the event that the Closing proceeds without the sale,
assignment, transfer, conveyance or delivery of any such asset, then following
the Closing, the Parties shall use their reasonable best efforts, and cooperate
with each other, to obtain promptly such authorizations, approvals, consents or
waivers; provided, however, that Seller shall not be required to pay any
consideration to obtain any such authorization, approval, consent or waiver.
Pending such authorization, approval, consent or waiver, the Parties shall
cooperate with each other in any mutually agreeable, reasonable and lawful
arrangements designed to provide to Buyer the benefits of use of such asset and
to Seller the benefits, including any indemnities, that, in each case, it would
have obtained had the asset been conveyed to Buyer at the Closing. To the extent
that Buyer is provided the benefits pursuant to this Section 2.02 of any
Contract, Buyer shall (x) perform for the benefit of the other parties thereto
the obligations of Seller or any Affiliate of Seller thereunder and (y) shall
satisfy

                                       -9-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

any related Liabilities with respect to such Contract that, but for the lack of
an authorization, approval, consent or waiver to assign such obligations or
Liabilities to Buyer, would be Assumed Liabilities. Once authorization,
approval, consent or waiver for the sale, assignment, transfer, conveyance or
delivery of any such asset not sold, assigned, transferred, conveyed or
delivered at the Closing is obtained, Seller shall assign, transfer, convey and
deliver such asset to Buyer at no additional cost to Buyer.

                     ARTICLE III. ASSUMPTION OF LIABILITIES
                     --------------------------------------

   Section 3.01 Assumption of Assumed Liabilities.

     (a) Subject to the terms and conditions of this Agreement, as of the
Closing Date, Buyer agrees to assume, satisfy, perform, pay, discharge and
otherwise be responsible for the Assumed Liabilities.

     (b) Other than the Assumed Liabilities, Buyer shall not assume or be deemed
to have assumed or guaranteed, or otherwise be responsible for, any other
Liability or obligation of any nature, whether direct or indirect, of Seller or
any of its Affiliates relating to the Purchased Assets or otherwise, without
regard to whether such Liability or obligation is known, knowable, or unknown,
matured or unmatured, liquidated or unliquidated, fixed or contingent, arising
out of acts, omissions or occurrences prior to the Closing Date or any
conditions existing prior to the Closing Date.

                     ARTICLE IV. PURCHASE PRICE AND PAYMENT
                     --------------------------------------

   Section 4.01 Purchase Price.

As consideration for the Purchased Assets, Buyer shall:

        (a) [CONFIDENTIAL TREATMENT REQUESTED];

        (b) assume the Assumed Liabilities as of the Closing; and

        (c) for the period beginning on July 1, 2001, and ending on December 31,
2015 (the "Royalty Term"), pay to Seller royalties on the aggregate Net Sales of
           ------------
Product in the Territory during each calendar year as follows (the "Royalties"):
                                                                    ---------

          Calendar Year
       Aggregate Net Sales                       Royalty Amount

          [CONFIDENTIAL                          [CONFIDENTIAL
            TREATMENT                               TREATMENT
            REQUESTED]                              REQUESTED]
          [CONFIDENTIAL                          [CONFIDENTIAL
            TREATMENT                               TREATMENT
            REQUESTED]                              REQUESTED]
          [CONFIDENTIAL                          [CONFIDENTIAL
            TREATMENT                               TREATMENT
            REQUESTED]                              REQUESTED]

                                      -10-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

; provided, however that Buyer shall pay to Seller royalties owing on Net Sales
of Product during the period from July 1 to December 31, 2001 equal to
[CONFIDENTIAL TREATMENT REQUESTED] of the aggregate Net Sales of Product during
such six (6) month period (and not on the aggregate Net Sales of Product during
the entire 2001 calendar year). In the event the Product is not available for
sale (whether as a result of any action or inaction of Buyer, any Governmental
or Regulatory Authority, or for any other reason) for any extended period of
time during the Royalty Term, Buyer will pay to Seller a royalty on Net Sales of
an alternative Buyer product for the remainder of the Royalty Term, such
alternative product to be identified and selected by Buyer in good faith and in
Buyer's sole discretion; provided, however, that the alternative Buyer product
and the royalty rate shall be selected so that the total royalty payments made
by Buyer to Seller on the Net Sales of such alternative product are as nearly
equivalent as possible to the estimated Royalty Payments Seller would receive if
the Product remained available for sale on an uninterrupted basis throughout the
Royalty Term.

The Purchase Price and the Royalties shall be paid by Buyer to Seller in the
amount set forth above by wire transfer of immediately available funds to the
account designated by Seller prior to the date on which such payment is due;
provided, however, that Buyer shall be entitled to finance up to sixty percent
(60%) of the Purchase Price, subject to and in accordance with the terms of the
Product Acquisition Financing Agreement. The Purchase Price is non-refundable
and not subject to any future performance obligations upon Seller nor creditable
to any future service by Seller. Buyer shall provide a report to Seller no later
than thirty (30) days after the end of each calendar quarter during the Royalty
Term setting forth (1) the aggregate Net Sales of Product in the Territory for
such quarter and for the current calendar year and (2) the Royalties payable to
Seller for such calendar quarter, all in sufficient detail to permit Seller to
determine whether the calculation of Net Sales and Royalties is accurate. Buyer
shall cause its representatives and employees to be available to Seller to
discuss any questions or comments of Seller concerning such report. The
Royalties payable to Seller for each calendar quarter shall be paid on the date
such report is delivered to Seller. Notwithstanding the foregoing, (i) the
Royalties paid by Buyer to Seller for each of the first three calendar quarters
for any calendar year shall not exceed twenty five percent (25%) of Buyer's good
faith estimate of the aggregate Royalties that will be owing to Seller for such
calendar year and (ii) the Royalties paid by Buyer to Seller for the fourth
calendar quarter of each calendar year shall be in an amount so that the
aggregate Royalties for such calendar year equal the aggregate Royalties Seller
is to receive for such calendar year. In the event that the Royalties paid by
Buyer to Seller for the first three calendar quarters of any calendar year
exceed the aggregate Royalties Seller is to receive for such calendar year, the
excess Royalties shall be treated as an advance payment of the Royalties owing
to Buyer for the next calendar year.

Buyer shall keep for a period of four (4) years from the date hereof complete
and accurate records of sales and all other information necessary to accurately
calculate Net Sales of Product as required pursuant to this Section 4.01(c).
Seller shall have the right through its representatives or an independent,
certified public accountant to audit such records at the place or places of
business where such records are customarily kept in order to verify the accuracy
of the reports of Net Sales of Product made hereunder. Such audits may be
exercised during normal business hours upon reasonable prior written notice to
Buyer. Seller shall bear the full cost of such audit unless such audit discloses
a variance of more than five percent (5%) from the amount of any royalty payment
calculated under this Agreement, in which case Buyer shall bear the full cost of

                                      -11-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

such audit. In the event that Buyer disputes the results of Seller's audit,
Buyer and Seller shall attempt to resolve such dispute in good faith. Any
amounts that are determined or agreed to be due and owing by Buyer to Seller or
by Seller to Buyer following such audit shall be paid within ten (10) days
thereafter, together with any interest due thereon (at a rate equal to seven
percent (7%) per annum).

During the Royalty Term, Seller agrees to advise Buyer on Buyer's sales and
marketing strategies as reasonably requested by Buyer.

   Section 4.02 Purchase Price Adjustment.

The Purchase Price shall be subject to adjustment as follows:

     (a) Net Sales Adjustment. In the event that total Net Sales of Product in
         --------------------
the United States for any of the following periods (x) the three months ending
June 30, 2001 (the "Second Quarter"), (y) the three months ending September 30,
                    --------------
2001 (the "Third Quarter") and (z) the three (3) months ending December 31, 2001
           -------------
(the "Fourth Quarter"; each of the Second Quarter, the Third Quarter and the
      --------------
Fourth Quarter being a "Quarter"), are less [CONFIDENTIAL TREATMENT REQUESTED]
                        -------
(the "Mysoline Quarterly Target"), Seller shall pay to Buyer (the "Mysoline
      ------------------------                                     --------
Payment"), for each Quarter for which total Net Sales of Product in the United
------
States was less than the Mysoline Quarterly Target, an amount equal to
[CONFIDENTIAL TREATMENT REQUESTED] of the difference between (i) the lesser of
the Mysoline Quarterly Target and the Mysoline Rx Demand Net Sales and (ii) the
total Net Sales of Product in the United States for such Quarter. In the event
that total Net Sales of Product in the United States for any Quarter is greater
than the Mysoline Quarterly Target, Seller shall be entitled to receive a credit
(the "Mysoline Credit") from Buyer equal [CONFIDENTIAL TREATMENT REQUESTED] of
      ---------------
the difference between (aa) the Mysoline Quarterly Target and (bb) the total Net
Sales of Product in the United States for such Quarter.

     (b) Reports; Payments; Application of Credits. In connection with the
         -----------------------------------------
adjustments set forth in Section 4.02(a) hereof, Buyer shall provide a report to
Seller no later than sixty (60) days after the end of each Quarter setting forth
the calculation of Net Sales of Product in the United States and Mysoline Rx
Demand Net Sales for the Product for such Quarter and the amount of the
applicable credit or payment due, each in sufficient detail to permit Seller to
determine whether the calculation of Net Sales in the United States, Mysoline Rx
Demand Net Sales and applicable payment or credit due is accurate. Buyer shall
cause its representatives and employees to be available to Seller to discuss any
questions or comments of Seller concerning such report. If at the end of any
Quarter a Mysoline Payment is due, Seller shall pay to Buyer within thirty (30)
days after receipt of Buyer's report for such Quarter an amount equal to such
Mysoline Payment less the amount of any Mysoline Credits accrued for a previous
Quarter or Quarters. If at the end of the Fourth Quarter a Mysoline Credit is
due, Buyer shall pay to Seller the amount of such Mysoline Credit accrued up to
the amount of any Mysoline Payments previously made. Any Mysoline Credit
outstanding at the end of the Fourth Quarter that has not been applied against a
Mysoline Payment shall be cancelled. Each payment to be made pursuant to this
Section 4.02 shall be paid by wire transfer of immediately available funds to an
account or accounts designated by Buyer or Seller, as the case may be, prior to
the date on which such payment is due.

                                      -12-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

     (c) Gross Profits Adjustments.
         -------------------------

     (i)   March 31, 2003 Adjustment. For the twelve (12) month period ending
           -------------------------
March 31, 2003, Buyer shall pay to Seller [CONFIDENTIAL TREATMENT REQUESTED].
Any payments required to be made pursuant to this Section 4.02(c)(i) shall be
made on or before April 30, 2003.

     (ii)  March 31, 2004 Adjustment. For the twelve (12) month period ending
           -------------------------
March 31, 2004, Buyer shall pay to Seller [CONFIDENTIAL TREATMENT REQUESTED].
Any payments required to be made pursuant to this Section 4.02(c)(ii) shall be
made on or before April 30, 2004.

     (iii) Reports; Payments. In connection with the payment of any adjustments
           -----------------
set forth in Sections 4.02(c)(i) and (ii) hereof, Buyer shall provide a report
to Seller no later than thirty (30) days after the end of the applicable twelve
(12) month period setting forth the calculation of Gross Profits for such twelve
(12) month period and the amount of the applicable adjustment due, each in
sufficient detail to permit Seller to determine whether the calculation of Gross
Profits and the calculation of the applicable adjustment due is accurate. Buyer
shall cause its representatives and employees to be available to Seller to
discuss any questions or comments of Seller concerning such report. Each payment
to be made pursuant to this Section 4.02(c) shall be paid by wire transfer of
immediately available funds to an account or accounts designated by Seller prior
to the date on which such payment is due; provided, however that Buyer shall be
entitled to finance up to one hundred percent (100%) of each of the payments, if
any, set forth in Sections 4.02(c)(i) and (ii) above subject to and in
accordance with the terms of the Product Acquisition Financing Agreement.

     (iv)  Notwithstanding any other provision in this Agreement to the
contrary, in the event that a generic form of the 50mg formulation of Product is
approved by the United States Food and Drug Administration for marketing in the
United States prior to April 1, 2004, all amounts otherwise due and payable
under this Section 4.02(c) on or after the date of such approval shall be waived
and forgiven and no further amounts under this Section 4.02(c) shall accrue
thereafter.

     (d) Records; Access; Audit. Buyer shall keep for a period of four (4) years
         ----------------------
from the date hereof complete and accurate records of sales and all other
information necessary to accurately calculate Net Sales of Product, Mysoline
Demand Rx Net Sales, and Gross Profits as required pursuant to Section 4.02(a)
and (c) above. Seller shall have the right through its representatives or an
independent, certified public accountant to audit such records at the place or
places of business where such records are customarily kept in order to verify
the accuracy of the reports of Net Sales of Product, Mysoline Demand Rx Net
Sales, and Gross Profits made hereunder. Such audits may be exercised during
normal business hours upon reasonable prior written notice to Buyer. Seller
shall bear the full cost of such audit unless such audit discloses a variance of
more than five percent (5%) from the amount of any payment or credit calculated

                                      -13-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

with respect to Net Sales of Product, Mysoline Demand Rx Net Sales or Gross
Profits under this Agreement, in which case Buyer shall bear the full cost of
such audit. In the event that Buyer disputes the results of Seller's audit,
Buyer and Seller shall attempt to resolve such dispute in good faith. Any
amounts that are determined or agreed to be due and owing by Buyer to Seller or
by Seller to Buyer following such audit shall be paid within ten (10) days
thereafter, together with any interest due thereon (at a rate equal to seven
percent (7%) per annum).

   Section 4.03  Purchase of Product Inventory.

At a mutually agreed upon time, but no later than sixty (60) days after the
Closing, Buyer shall purchase from the appropriate Affiliate of Seller all
Product Inventory of such Affiliate with acceptable dating at a price equal to
such Affiliate's cost therefor, which amount shall be payable to Seller on or
before March 29, 2002. All of the finished Product included in Product Inventory
(a) shall be saleable in the Ordinary Course of Business, except for normal and
customary amounts of below-standard quality Product, and except with respect to
any sample inventory of finished Product, and (b) shall have been produced or
manufactured in accordance with the specifications for such Product as set forth
in the applicable Regulatory Approvals and substantially in compliance with
applicable Law. All raw materials and works in progress included in Product
Inventory shall be useable in the Ordinary Course of Business except for normal
and customary amounts of below-standard quality raw materials and works in
progress. The payment to be made pursuant to this Section 4.03 shall be paid by
wire transfer of immediately available funds to an account or accounts
designated by the appropriate Affiliate of Seller prior to the date on which
such payment is due. Until the time that such Product Inventory is transferred
to Buyer, the appropriate Affiliate of Seller shall hold, store and ship such
Product Inventory substantially in accordance with (i) all applicable Laws, (ii)
current GMPs, (iii) the applicable Regulatory Approvals, and (iv) applicable
analytical methods and procedures, material specifications, master batch records
and stability protocols. Seller represents that its Affiliate has acted in
accordance with clauses (i) through (iv) above with respect to Product Inventory
prior to the Closing.

   Section 4.04  Payment of Sales, Use and Other Taxes.

Each Party shall be responsible for all its own sales, use, transfer and value
added taxes, if any, arising out of the sale by Seller and its Affiliates of the
Purchased Assets to Buyer pursuant to this Agreement. Buyer shall provide resale
certificates and exemption forms as reasonably requested by Seller.

   Section 4.05  Impact of Failure to Make Payments.

The failure by Buyer to make any payments due to Seller pursuant to Sections
4.01, 4.02 and 4.03 shall constitute an "Event of Default" under the Product
Acquisition Financing Agreement.

                               ARTICLE V. CLOSING
                               ------------------

   Section 5.01  Time and Place.

The closing of the transactions contemplated by this Agreement, including the
purchase and sale of the Purchased Assets and the assumption of the Assumed
Liabilities (the "Closing"), shall
                  -------

                                      -14-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

take place as promptly as practicable, but no later than five (5) Business Days,
following satisfaction or waiver of the conditions set forth in Articles IX and
X, at the offices of Brobeck, Phleger & Harrison LLP, 12390 El Camino Real, San
Diego, CA 92130, unless another time or place shall be agreed to by the Parties.

   Section 5.02 Deliveries at Closing.

     (a)  Closing Deliveries by Seller.
          ----------------------------

At the Closing, Seller shall deliver or cause to be delivered to Buyer:

           (i) each of the trademark assignment and other intellectual property
   assignment documents necessary to transfer the Intellectual Property and the
   Registered Intellectual Property to Buyer in form and substance reasonably
   acceptable to Seller and Buyer;

           (ii) assignment and assumption agreements, in form and substance
   reasonably acceptable to Seller and Buyer, assigning to Buyer all rights and
   obligations of Seller and its Affiliates in and to the Assumed Contracts;

           (iii) copies of all Seller Governmental Consents and Seller Third
   Party Consents;

           (iv) a bill of sale in form and substance reasonably acceptable to
   Seller and Buyer to transfer the Books and Records and Marketing Materials to
   Buyer;

           (v) an opinion of Seller's counsel in form and substance reasonably
   satisfactory to Buyer; and

           (vi) the certificates and other documents to be delivered pursuant to
   Article X hereof.

     (b) Closing Deliveries by Buyer.
         ---------------------------

At the Closing, Buyer shall deliver or cause to be delivered to Seller:

           (i) assignment and assumption agreements, in form and substance
   reasonably acceptable to Seller and Buyer, assigning to Buyer all rights and
   obligations of Seller and its Affiliates in and to the Assumed Contracts;

           (ii) such instruments of assumption and other instruments or
   documents, in form and substance reasonable acceptable to Seller and Buyer,
   as may be necessary to effect Buyer's assumption of the Assumed Liabilities;

           (iii) copies of all Buyer Governmental Consents and Buyer Third Party
   Consents;

                                      -15-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

           (iv) an opinion of Buyer's counsel in form and substance reasonably
   acceptable to Seller; and

           (v) the certificates and other documents to be delivered pursuant to
   Article IX hereof.

              ARTICLE VI. REPRESENTATIONS AND WARRANTIES OF SELLER
              ----------------------------------------------------

Seller represents and warrants to Buyer as of the date hereof, subject to such
exceptions as are specifically disclosed in the disclosure schedule (referencing
the appropriate Sections hereof) supplied by Seller to Buyer and dated as of the
date hereof (the "Seller Disclosure Schedule"), which Seller Disclosure Schedule
                  --------------------------
shall be deemed to be representations and warranties of Seller as if made
herein, as follows:

   Section 6.01  Books and Records.

To Seller's Knowledge, the Books and Records of the Business as made available
by Seller to Buyer are true and correct.

   Section 6.02  Corporate Organization.

Seller is a corporation duly organized and validly existing under the laws of
the Republic of Ireland and has all requisite power and authority to own its
assets and carry on the Business as currently conducted by it. Each Affiliate of
Seller selling, transferring, conveying, assigning or delivering any Purchased
Assets is duly organized, validly existing and in good standing under the laws
of its jurisdiction of organization and has all requisite power and authority to
own its assets and carry on the Business as currently conducted by it. Each of
Seller and each Affiliate selling, transferring, conveying, assigning or
delivering any Purchased Assets is duly authorized to conduct the Business and
is in good standing in each jurisdiction where such qualification is required,
except for any jurisdiction where failure to so qualify could not reasonably be
expected to have an Adverse Effect or materially impair or delay Seller's
ability to perform its obligations hereunder.

   Section 6.03  Authority of Seller.

Seller has all necessary power and authority and has taken all actions necessary
to enter into this Agreement and to carry out the transactions contemplated
hereby. The Board of Directors or Executive Committee of the Board of Directors
of Seller has taken all action required by Law, its Certificate of
Incorporation, Bylaws or other organizational documents and agreements, to be
taken by it to authorize the execution and delivery of this Agreement by the
Seller and the consummation of the transactions (including the performance by
the Seller of its obligations) contemplated hereunder. This Agreement has been
duly and validly executed and delivered by Seller and, when executed and
delivered by Buyer, will constitute a legal, valid and binding obligation of
Seller enforceable against it in accordance with its terms except (a) as limited
by applicable bankruptcy, insolvency, reorganization, moratorium and other laws
of general application affecting enforcement of creditors rights generally, and
(b) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies.

                                      -16-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

   Section 6.04  Consents and Approvals.

     (a) All consents, waivers, approvals, Orders, authorizations of,
declarations or filings with any Governmental or Regulatory Authority (each a
"Seller Governmental Consent") that are required by or with respect to Seller or
 ---------------------------
its Affiliates in connection with the execution and delivery of this Agreement
by the Seller, and its performance of its obligations hereunder are set forth on
Schedule 6.04(a). Each Seller Governmental Consent has been obtained, except to
the extent that the failure to obtain such Seller Governmental Consent would not
have an Adverse Effect.

     (b) All consents, waivers, approvals, authorizations of, or notices to, any
third party (other than a Governmental or Regulatory Authority) (each a "Seller
                                                                         ------
Third Party Consent") that are required by or with respect to Seller or its
-------------------
Affiliates in connection with the execution and delivery of this Agreement by
the Seller, and its performance of its obligations hereunder are set forth on
Schedule 6.04(b). Each Seller Third Party Consent has been obtained, except to
the extent that the failure to obtain such Seller Third Party Consent would not
have an Adverse Effect.

   Section 6.05  Non-Contravention.

The execution and delivery by Seller of this Agreement does not, and the
performance by it of its obligations under this Agreement and the consummation
of the transactions contemplated hereby will not:

     (a) conflict with or result in a violation or breach of any of the terms,
conditions or provisions of the Certificate of Incorporation, Bylaws or other
applicable organizational documents of Seller;

     (b) conflict with or result in a violation or breach of any term or
provision of any Law applicable to Seller, the Business or the Purchased Assets,
other than such conflicts, violations or breaches as would not have an Adverse
Effect; or

     (c) conflict with or result in a breach or default (or an event which, with
notice or lapse of time or both, would constitute a breach or default) under, or
result in the termination or cancellation of, or accelerate the performance
required by, or result in the creation or imposition of any security interest,
lien or any other Encumbrance (other than a Permitted Encumbrance) upon any
Assumed Contract, other than such conflicts, breaches or defaults as would not
have an Adverse Effect.

   Section 6.06      Assumed Contracts.

Section 6.06 of the Seller Disclosure Schedule sets forth a complete and correct
list of each Assumed Contract where the payment obligations after the Closing
exceed Twenty-Five Thousand Dollars ($25,000). Each of the Assumed Contracts is
in effect and constitutes a legal, valid and binding agreement, enforceable in
accordance with its terms, of Seller or an Affiliate of Seller; and Seller has
performed all of its required material obligations under, and is not in material
violation or breach of or default under, any such Assumed Contract. To the
Knowledge of Seller, the other parties to the Assumed Contracts are not in
material violation or breach of or

                                      -17-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

default under any such Assumed Contract. Seller has made available to Buyer
complete and correct copies of all Assumed Contracts identified in Section 6.06
of the Seller Disclosure Schedule.

   Section 6.07  Purchased Assets Generally.

Seller has good and marketable title to the Books and Records and Marketing
Materials, free and clear of all Encumbrances (other than Permitted
Encumbrances). The Purchased Assets and the Product Inventory include all
material assets and properties that are owned, licensed or controlled by Seller
with respect to the Product and that are reasonably required for Buyer to
operate the Business after the Closing in substantially the manner and
substantially to the extent operated by Seller prior to the Closing; provided,
however, that Buyer acknowledges and agrees that (a) the Purchased Assets
exclude any items to the extent that (i) any applicable Law prohibits their
transfer or (ii) any transfer thereof would subject Seller or any of its
Affiliates to any contractual or other Liability or obligation and (b) certain
items have been expressly excluded from the definition of Purchased Assets and
the components thereof.

   Section 6.08  Intellectual Property Rights.

     (a) Section 6.08(a) of the Seller Disclosure Schedule sets forth a complete
and correct list of all Intellectual Property that is registered in the
Territory, is owned or licensed by Seller and is related exclusively to the
Product. Seller or its Affiliates own all right, title and interest in and to,
or have a license, sublicense or other permission to use, all of the Registered
Intellectual Property, free and clear of all Encumbrances except Permitted
Encumbrances. All necessary registration, maintenance and renewal fees in
connection with such Registered Intellectual Property have been paid and all
necessary documents and certificates in connection with such Registered
Intellectual Property have been filed with the relevant copyright, trademark or
other Governmental or Regulatory Authorities for the purposes of maintaining
such Registered Intellectual Property, except to the extent that failure to take
any such action would not have an Adverse Effect.

     (b) Without limiting Section 6.08(a) above, to the Knowledge of Seller,
Seller or its Affiliates own all right, title and interest in and to, or have a
license, sublicense or other permission to use, all of the Intellectual
Property, free and clear of all Encumbrances except Permitted Encumbrances.

     (c) Neither Seller nor any of its Affiliates has received any written
notice from any person, or has Knowledge, (i) that the operation of the Business
as currently conducted infringes or misappropriates the intellectual property
rights of any third party, or (ii) that any third party has infringed or
misappropriated or is infringing or misappropriating any of the Intellectual
Property, except where such infringement or misappropriation would not have an
Adverse Effect.

   Section 6.09  Litigation.

There are no Actions or Proceedings pending or, to the Knowledge of Seller,
threatened, or reasonably anticipated, against, relating to, affecting or
arising in connection with (a) the Purchased Assets or the Business, (b) this
Agreement, or (c) the transactions contemplated by

                                      -18-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

this Agreement. Seller is not subject to any Order that could reasonably be
expected to materially impair or delay the ability of Seller to perform its
obligations hereunder.

   Section 6.10  Compliance with Law.

Since January 1, 2001, Seller and its Affiliates have operated the Business
substantially in compliance with all applicable Laws, except where failure to so
comply could not reasonably be expected to result in an Adverse Effect and
neither Seller nor any of its Affiliates has received any written notice
alleging any violation of such Laws except for violations which could not
reasonably be expected to result in an Adverse Effect.

   Section 6.11  Regulatory Matters.

Section 6.11 of the Seller Disclosure Schedule sets forth a complete and correct
list of all new drug applications and supplements thereto, new drug submissions
and investigational new drug applications for the Product in the Territory.
Seller or its Affiliates own all right, title and interest in and to each of the
new drug applications and supplements thereto, new drug submissions and
investigational new drug applications listed in Section 6.11 of the Seller
Disclosure Schedule. All of the Regulatory Approvals are in full force and
effect and have been duly and validly issued. All required reports have been
made to appropriate Governmental or Regulatory Authorities, all appropriate
actions have been taken and communications with third parties have been made and
all required investigations of adverse drug experiences, contamination,
tampering and/or product defects have been made and appropriate follow-up
actions have been taken, except where the failure to do so would not have an
Adverse Effect. There is no Action or Proceeding by any Governmental or
Regulatory Authority pending or, to the Knowledge of Seller, threatened with
respect to any Product or any Regulatory Approval, which could reasonably be
expected to have an Adverse Effect. Seller has made available to Buyer complete
and correct copies of all Regulatory Approvals.

   Section 6.12  Brokers.

Seller has not retained any broker in connection with the transactions
contemplated hereunder. Buyer has no, and will have no, obligation to pay any
brokers, finders, investment bankers, financial advisors or similar fees in
connection with this Agreement or the transactions contemplated hereby by reason
of any action taken by or on behalf of Seller.

   Section 6.13  Disclosure.

None of the representations or warranties made by the Seller herein as of the
date of such representations and warranties, and none of the statements
contained in any other written materials with respect to the Purchased Assets
furnished by Seller to Buyer in connection with this Agreement, contains any
untrue statement of a material fact or omits any material fact required to be
stated therein or necessary to make the statements made therein, in light of the
circumstances under which they were made, not misleading.

                                      -19-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

   Section 6.14  No Other Warranties.

EXCEPT AS SET FORTH IN THIS ARTICLE VI, SELLER IS SELLING THE PURCHASED ASSETS
AND PRODUCT INVENTORY HEREUNDER ON AN "AS IS" BASIS WITHOUT REPRESENTATION OR
WARRANTY AS TO THE PRODUCT, THE PRODUCT INVENTORY, THE PURCHASED ASSETS OR THE
BUSINESS WHETHER EXPRESS OR IMPLIED INCLUDING WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE, OR INFRINGEMENT OF THIRD PARTY RIGHTS, AND ALL
SUCH WARRANTIES ARE EXPRESSLY DISCLAIMED.

              ARTICLE VII. REPRESENTATIONS AND WARRANTIES OF BUYER
              ----------------------------------------------------

Buyer represents and warrants to Seller as of the date hereof, subject to such
exceptions as are specifically disclosed in the disclosure schedule (referencing
the appropriate Sections hereof) supplied by Buyer to Seller and dated as of the
date hereof (the "Buyer Disclosure Schedule"), which Buyer Disclosure Schedule
                  -------------------------
shall be deemed to be representations and warranties of Buyer as if made herein,
as follows:

   Section 7.01  Corporate Organization.

Buyer is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware and has all requisite power and
authority to own its assets and carry on its business as currently conducted by
it. Buyer is duly authorized to conduct its business and is in good standing in
each jurisdiction where such qualification is required, except for any
jurisdiction where failure to so qualify could not reasonably be expected,
individually or in the aggregate, to have a material adverse effect on Buyer or
materially impair or delay Buyer's ability to perform its obligations hereunder.

   Section 7.02  Authority of Buyer.

Buyer has all necessary power and authority and has taken all actions necessary
to enter into this Agreement and to carry out the transactions contemplated
hereby. The Board of Directors of Buyer has taken all action required by Law,
its Certificate of Incorporation, Bylaws or otherwise to be taken by it to
authorize the execution and delivery of this Agreement by Buyer and the
consummation of the transactions contemplated hereby. This Agreement has been
duly and validly executed and delivered by Buyer and, when executed and
delivered by Seller, will constitute a legal, valid and binding obligation of
Buyer enforceable against it in accordance with its terms except (a) as limited
by applicable bankruptcy, insolvency, reorganization, moratorium and other laws
of general application affecting enforcement of creditors rights generally, and
(b) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies.

   Section 7.03  Consents and Approvals.

     (a) All consents, waivers, approvals, Orders, authorizations of,
declarations or filings with any Governmental or Regulatory Authority (each a
"Buyer Governmental Consent") that are required by or with respect to Buyer in
 --------------------------
connection with the execution and delivery of this Agreement by Buyer, and its
performance of its obligations hereunder are set forth on

                                      -20-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

     Schedule 7.03(a). Each Buyer Governmental Consent has been obtained, except
to the extent that the failure to obtain such Buyer Governmental Consent would
not have an Adverse Effect.

     (b) All consents, waivers, approvals, authorizations of, or notices to, any
third party (other than a Governmental or Regulatory Authority) (each a "Buyer
                                                                         -----
Third Party Consent") that are required by or with respect to Buyer in
-------------------
connection with the execution and delivery of this Agreement by Buyer, and its
performance of its obligations hereunder are set forth on Schedule 7.03(b). Each
Buyer Third Party Consent has been obtained, except to the extent that the
failure to obtain such Buyer Third Party Consent would not have an Adverse
Effect.

   Section 7.04  Non-Contravention.

The execution and delivery by Buyer of this Agreement does not, and the
performance by it of its obligations under this Agreement and the consummation
of the transactions contemplated hereby will not:

     (a) conflict with or result in a violation or breach of any of the terms,
conditions or provisions of the Certificate of Incorporation, Bylaws or other
organizational documents of Buyer;

     (b) conflict with or result in a violation or breach of any term or
provision of any Law applicable to Buyer other than such conflicts, violations
or breaches as would not have an Adverse Effect; or

     (c) conflict with or result in a breach or default (or an event which, with
notice or lapse of time or both, would constitute a breach or default) under, or
result in the termination or cancellation of, or accelerate the performance
required by, or result in the creation or imposition of any security interest,
lien or any other Encumbrance (other than a Permitted Encumbrance) upon any
Contract to which Buyer is a party or by which Buyer or any of its assets is
bound, other than such conflicts, breaches or defaults as would not have an
Adverse Effect.

   Section 7.05  Litigation.

There are no Actions or Proceedings pending, or to the Knowledge of Buyer
threatened or reasonably anticipated, against, relating to, affecting or arising
in connection with (i) this Agreement or (ii) the transactions contemplated by
this Agreement. Buyer is not subject to any Order that could reasonably be
expected to materially impair or delay the ability of Buyer to perform its
obligations hereunder.

   Section 7.06  Brokers.

Buyer has not retained any broker in connection with the transactions
contemplated hereunder. Seller has no, and will have no, obligation to pay any
brokers, finders, investment bankers, financial advisors or similar fees in
connection with this Agreement or the transactions contemplated hereby by reason
of any action taken by or on behalf of Buyer.

                                      -21-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

                     ARTICLE VIII. COVENANTS OF THE PARTIES
                     --------------------------------------

   Section 8.01 Non-Assertion of Intellectual Property Rights.

     (a) Seller agrees that neither it nor any Affiliate will assert against
Buyer, under any patent, trade secret, copyright, trademark or other proprietary
right owned or controlled by Seller and used by Seller in the operation of the
Business as of the Closing, a claim that the Product or the operation of the
Business, infringes such rights owned or controlled by Seller or its Affiliates,
excluding, however, the Elan tradename and the Elan trademark and logo upon the
exhaustion of the Product Inventory.

     (b) Buyer agrees that it will not alter or deface the Elan tradename or the
Elan trademark or logo in the operation of the Business while exhausting the
Product Inventory.

     (c) Buyer further agrees that it will maintain the same quality of the
Product as used by Seller in the operation of the Business as of the Closing for
the Product sold under the Elan tradename and the Elan trademark and logo and
will do nothing to diminish the value of the Elan tradename and the Elan
trademark and logo

   Section 8.02  Cooperation.

Each Party shall cooperate fully with the other in preparing and filing all
notices, applications, submissions, reports and other instruments and documents
that are necessary, proper or advisable under applicable Laws to consummate and
make effective the transactions contemplated by this Agreement, including
Seller's cooperation in the efforts of Buyer to obtain any consents and
approvals of any Governmental or Regulatory Authority required for Buyer to be
able to own the Purchased Assets. Each Party shall cooperate fully with the
other in connection with the delivery to Buyer of physical possession of all
tangible personal property included in the Purchased Assets.

   Section 8.03  Access.

     (a) Upon the request of Seller, Buyer shall at all times following the
Closing, to the extent permitted by Law, grant to Seller and its representatives
the right, during normal business hours, to inspect and copy the Books and
Records and other documents in Buyer's possession to the extent pertaining to
the operation of the Business prior to the Closing Date for Tax purposes and in
connection with Actions or Proceedings.

     (b) For a period of five (5) years following the Closing, Buyer agrees to
keep and maintain all Books and Records and other documents in existence on the
Closing Date and make personnel of Buyer or its Affiliates available to Seller
or its representatives to the extent such access is reasonably related to any
Excluded Assets or otherwise necessary for Seller to comply with or enforce the
terms of this Agreement or comply with any applicable Law; it being understood
that Seller shall reimburse Buyer promptly for its reasonable and necessary out
of pocket expenses incurred in complying with any such request by or on behalf
of Seller.

                                      -22-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

   Section 8.04  Public Announcements.

Neither Seller nor Buyer shall issue any press release or make any public
announcement with respect to this Agreement and the transactions contemplated
hereby without obtaining the prior written consent of the other Party, except as
may be required by applicable Law upon the advice of counsel and only if the
disclosing Party provides the non-disclosing Party with an opportunity to first
review the release or other public announcement.

  Section 8.05  Non-Solicitation.

Each Party (the "Soliciting Party") agrees that, without the prior written
                 ----------------
consent of the other Party (the "Non-soliciting Party"), for a period commencing
                                 -------------------
on the date hereof and expiring on the second (2nd) anniversary of the Closing
Date, the Soliciting Party will not directly or indirectly (a) induce, encourage
or solicit any officer or employee of the Non-soliciting Party or any of its
Affiliates to leave such employment or to accept any other position or
employment with the Soliciting Party or (b) assist any Affiliate or
representative of the Soliciting Party in hiring such employee. However, nothing
in this Section 8.05 shall prohibit the Soliciting Party from indirectly
inducing, encouraging or soliciting such officers or employees to leave the
Non-soliciting Party through the use of general advertisements in trade journals
and the like; provided, that in the event that an officer or employee of the
Non-soliciting Party responds to such advertisement, the Soliciting Party shall
not further induce, encourage or solicit such person to leave such employment or
to accept any other position or employment with the Soliciting Party, without
the prior written consent of the Non-soliciting Party.

   Section 8.06  Corporate Names.

     (a) Except as set forth in this Section 8.06, following the Closing, Buyer
shall not have any rights by virtue of this Agreement or any of the transactions
or agreements contemplated hereby to any names, trademarks, trade names, trade
dress or logos relating to Seller or any of the Affiliates of Seller or any of
their products other than those included in the Intellectual Property (the
"Corporate Names").
 ---------------

     (b) Buyer may use in connection with its operation of the Business
following the Closing (until such time, if any, as any Governmental or
Regulatory Authority shall otherwise not permit Buyer to do so), items of
Product Inventory that bear any of the Corporate Names, it being understood that
Buyer will use its reasonable best efforts to use or sell such items of Product
Inventory prior to selling any other product under the trademark or trade name
of the Product.

     (c) Buyer may use Marketing Materials that were transferred to Buyer as
Purchased Assets that bear any of the Corporate Names in connection with its
operation of the Business following the Closing and for up to thirty (30) days
thereafter; and thereafter, Buyer may use such Marketing Materials only if Buyer
completely removes all Corporate Names from, or completely covers all Corporate
Names on, such materials. Buyer acknowledges and agrees that Seller shall have
no Liability or other obligation arising out of or in connection with Buyer's or
it Affiliate's use of the Marketing Materials.

                                      -23-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

   Section 8.07  Handling of Product Inventory.

From and after the Closing, Buyer shall hold, store, and ship any Product
Inventory substantially in accordance with (i) all applicable Laws, (ii) current
GMPs, (iii) the applicable Regulatory Approvals, and (iv) applicable analytical
methods and procedures, material specifications, master batch records, and
stability protocols.

   Section 8.08  Differentiation of Products.

From and after the Closing, Buyer shall use commercially reasonable efforts to
promptly institute appropriate procedures to ensure that products and goods of
the Business manufactured, finished or sold by, or on behalf of, Buyer can be
distinguished from products and goods manufactured, finished or sold by, or on
behalf of, Seller and its Affiliates.

   Section 8.09  Regulatory Matters.

     (a) From and after the transfer by Seller to Buyer of each Regulatory
Approval pursuant to the terms hereof, Buyer, at its cost, shall be solely
responsible and liable for (i) taking all actions, paying all fees and
conducting all communication with the appropriate Governmental or Regulatory
Authority required by Law in respect of such Regulatory Approval, including
preparing and filing all reports (including adverse drug experience reports)
with the appropriate Governmental or Regulatory Authority, and (ii) taking all
actions and conducting all communication with third parties in respect of
Product sold pursuant to such Regulatory Approval (whether sold before or after
transfer of such Regulatory Approval), including responding to all complaints in
respect thereof, including complaints related to tampering or contamination, and
(iii) investigating all complaints and adverse drug experiences in respect of
Product sold pursuant to such Regulatory Approval (whether sold before or after
transfer of such Regulatory Approval). Seller shall cooperate with Buyer's
reasonable requests and use commercially reasonable efforts to assist Buyer in
connection with any of the foregoing.

     (b) From and after the transfer by Seller to Buyer of each Regulatory
Approval pursuant to the terms hereof, Seller promptly (and in any event within
the time periods required by law) shall notify Buyer if Seller receives a
complaint or a report of an adverse drug experience in respect of a Product sold
pursuant to such Regulatory Approval. In addition, Seller shall cooperate with
Buyer's reasonable requests and use commercially reasonable efforts to assist
Buyer in connection with the investigation of and response to any complaint or
adverse drug experience related to a Product sold by Seller or its Affiliates.

     (c) From and after the transfer by Seller to Buyer of each Regulatory
Approval pursuant to the terms hereof, Buyer, at its cost, shall be solely
responsible and liable for conducting all voluntary and involuntary recalls of
units of Product sold pursuant to such Regulatory Approval (whether sold before
or after transfer of such Regulatory Approval), including recalls required by
any Governmental or Regulatory Authority and recalls of units of Product sold by
Seller or its Affiliates deemed necessary by Buyer in its reasonable discretion;
provided, however, that in the event that any such recall is attributable to
Product sold by Seller or its Affiliates prior to the Closing, then Seller shall
reimburse Buyer for all reasonable expenses in connection with the recall of
such Product. Each Party promptly (and in any event

                                      -24-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

within the time periods required by law) shall notify the other Party in the
event that a recall of Product sold by Seller or its Affiliates is necessary.

   Section 8.10  Product Returns, Chargebacks and Rebates.

     (a) Product Returns. For the period from the Closing through [CONFIDENTIAL
         ---------------
TREATMENT REQUESTED], Seller will, at its sole cost and expense, process and
issue credits (or render payment in such other form as Seller may determine) for
all returned Product bearing Seller's NDC numbers and evidenced as being sold by
Seller. Such handling of returned Products by Seller, and the issuance of any
credits or other form of reimbursement in connection therewith, shall be in
accordance with Seller's then current returned goods policy. Buyer will process,
and be solely responsible for reimbursements with respect to Product returns
arising with respect to, or resulting from, shipping errors, damage in transit
and shortages relating to Buyer's sales of Products after the Closing and
Product with Buyer's NDC number.

           (i)   Buyer agrees and acknowledges that Seller's maximum liability
   for credits or other reimbursement for returned Product under this Section
   shall be [CONFIDENTIAL TREATMENT REQUESTED] (the "Maximum Returns Credit
                                                     ----------------------
   Amount"), and further agrees that Seller's obligation to issue credits or
   ------
   other reimbursement for returned Products bearing Seller's NDC numbers shall
   terminate upon the date on which Seller has issued credits or otherwise
   reimbursed the Maximum Returns Credit Amount or [CONFIDENTIAL TREATMENT
   REQUESTED], whichever shall be the first to occur. For purposes of this
   Section, the dollar value of returned Products processed by Seller, shall be
   determined in accordance with Seller's then current returned goods policy.

           (ii)  Upon Seller's issuance of credits or other reimbursement for
   returned Products bearing Seller's NDC's in an aggregate dollar amount equal
   to the Maximum Returns Credit Amount, any such credits or other reimbursement
   issued thereafter by Seller shall be the sole and exclusive liability and
   obligation of Buyer, for which Buyer will be invoiced by Seller on a monthly
   basis. Each such invoice shall set forth the number of units processed for
   each Product's NDC, together with such information as shall be necessary to
   support the invoice. Buyer shall, within thirty (30) days of its receipt of
   invoice, pay to Buyer the full invoiced amount.

           (iii) All Products returned to Buyer through [CONFIDENTIAL TREATMENT
   REQUESTED], bearing Seller's NDC numbers and evidenced as sold by Seller
   shall be the financial responsibility of Seller, subject to the Maximum
   Returns Credit Amount set forth in this Section.

           (iv) Effective as of [CONFIDENTIAL TREATMENT REQUESTED], Buyer shall
   be solely and exclusively responsible for processing any and all returned
   Products (including all returned Products bearing Seller's NDC's) and for the
   issuance of any and all credits or other reimbursement therefor. Any and all
   returned Products received by Seller after [CONFIDENTIAL TREATMENT REQUESTED]
   will be destroyed by Seller, and Seller will, after such destruction, forward
   to Buyer any necessary accompanying documentation to determine the
   appropriate credit. Except as otherwise provided herein, Buyer and Seller
   will not bill one another for costs incurred strictly for the processing of
   claims for returned Products.

                                      -25-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

   Seller and Buyer will use reasonable efforts in requesting that customers
   direct all Product returns after [CONFIDENTIAL TREATMENT REQUESTED] to Buyer.

           (v) Buyer and Seller shall be responsible for handling the
   destruction of any Product returned to their respective returns handling
   facility. If Buyer or Seller destroys Product for which the other was
   financially responsible as set forth in this Section, that party shall bill
   the other party for the cost of the destruction. Each such invoice shall set
   forth the number of units processed, together with such other information as
   shall be necessary to support the invoice. Each party shall, within thirty
   (30) days of its receipt of invoice, pay the other party for the full
   invoiced amount.

       (b) Government Rebates. Except as limited in Section 8.10(e) below,
           ------------------
Seller shall be responsible for all rebates pursuant to any government rebate
programs with respect to government claims for the Products indicating Seller's
NDC numbers and dispensed prior to [CONFIDENTIAL TREATMENT REQUESTED]. Buyer
shall reimburse Seller for all rebates that Seller is obligated to pay with
respect to government claims for the Product dispensed after [CONFIDENTIAL
TREATMENT REQUESTED] (it being understood and agreed that the dispense date
contained in any report from a state rebate program shall be used for purposes
of determining the date of such claim). All payments due Seller under this
Section shall be made within thirty (30) days of submission to Buyer of invoices
that describe the requested payments in reasonable detail.

       (c) Commercial Rebates. Except as limited in Section 8.10(e) below,
           ------------------
Seller shall be responsible for all commercial rebates with respect to the
Product dispensed prior to [CONFIDENTIAL TREATMENT REQUESTED]. Notwithstanding
the foregoing, Buyer and Seller agree that (a) Seller's financial liability for
the commercial rebates during the period from Closing through [CONFIDENTIAL
TREATMENT REQUESTED] shall be limited to those commercial customers with which
Seller has a rebate obligation as of the Closing and (b) any such payments by
Seller shall be made on the terms and conditions comparable to Seller's rebate
obligations as of the Closing with respect to each commercial customer and shall
be based on Seller's terms of agreement with the respective contract. Any
rebates for Product dispensed subsequent to [CONFIDENTIAL TREATMENT REQUESTED]
will be the liability of Buyer. To the extent that Seller processes such claims,
Buyer shall reimburse Seller within thirty (30) days of receipt of invoices that
describe the requested payments in reasonable detail.

       (d) Chargeback Claims. Except as limited in Section 8.10(e) below, Seller
           -----------------
shall be financially responsible for all chargeback claims for the Products with
a chargeback invoice dated (i.e. date of sale from the wholesaler to the
wholesaler customer, subsequently referred to as the "Activity Date") prior to
[CONFIDENTIAL TREATMENT REQUESTED] (the "Transition Chargebacks"). Buyer shall
                                         ----------------------
process and be financially liable for all chargeback claims with an Activity
Date subsequent to [CONFIDENTIAL TREATMENT REQUESTED]. Notwithstanding the
foregoing, the parties acknowledge that the VA National Acquisition Center must
approve the removal of the Products from Seller's Federal Supply Schedule
("FSS") before the responsibility of processing such rebates is transferred from
Seller to Buyer. Accordingly, in the event such approval is not obtained prior
to [CONFIDENTIAL TREATMENT REQUESTED], Seller shall continue to be responsible
for processing the FSS chargebacks on Buyer's behalf, and Buyer shall reimburse
Seller for same. Buyer and Seller agree that (a) Seller's financial liability
for the Transition Chargebacks shall be limited to those commercial customers
with which Seller has chargeback obligations as of the Closing, and (b) any such
chargebacks issued by Seller shall be made on terms and conditions comparable to
Seller's

                                      -26-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

obligations as of the Closing with respect to each customer and shall be based
on Seller's terms of respective agreements as of the Closing.

       (e) Maximum Rebate and Chargeback Amount. Notwithstanding the
           ------------------------------------
requirements of Sections 8.10(b), (c) and (d), Buyer and Seller agree that
Seller's financial liability for government rebates, commercial rebates, and
chargeback claims shall under no circumstances exceed [CONFIDENTIAL TREATMENT
REQUESTED] in the aggregate. Seller shall provide Buyer monthly reports in
reasonable detail setting forth the amount of rebates and chargeback claims for
which it was financially responsible for the current month and on a cumulative
basis. Seller shall cause its representatives and employees to be available to
Buyer, during normal business hours and upon reasonable prior written notice to
Seller, to discuss any questions or comments of Buyer concerning such report.

    Section 8.11  Adverse Experience Reports.

At a mutually agreed upon time after the Closing, Seller shall provide Buyer
with information relating to the investigation and reporting of adverse
experiences regarding the Product since March 31, 1998 and all information which
is materially relevant to the safe use of the Product in Seller's possession as
of the Closing. After the Closing, Seller shall promptly submit to Buyer all
adverse drug experience information or customer complaints brought to the
attention of Seller in respect of the Product, as well as any material events
and matters concerning or affecting the safety or efficacy of the Product. After
the Closing, Buyer shall have all responsibility for required reporting of
adverse experiences for the Product.

     Section 8.12  Multi-Product Contracts.

Section 8.12 of the Seller Disclosure Schedule sets forth a complete and correct
list of each Contract to which Seller or any of its Affiliates is a party and
pursuant to which Seller or its Affiliates sells Product, together with other
pharmaceutical products of Seller and its Affiliates, to a third party (the
"Multi-Product Contracts"). Seller has made available to Buyer copies of all
 -----------------------
Multi-Product Contracts; provided that such copies have been redacted to prevent
disclosure of information not related to the Product. From and after the
transfer by Seller to Buyer of each Regulatory Approval pursuant to the terms
hereof, Buyer shall honor and perform all obligations and Liabilities of Seller
and its Affiliates under and pursuant to each Multi-Product Contract with
respect to supplying Product to the applicable third party pursuant to such
Regulatory Approval. Seller agrees that after the transfer of such Regulatory
Approval it will not take any action with respect to any Multi-Product Contract
that would extend the term of such Multi-Product Contract with respect to any
Product, create or agree to any additional obligations with respect to the
Product, or otherwise adversely affect Buyer or the Business (other than to
terminate any such Multi-Product Contract), without the prior written consent of
Buyer. Seller further agrees that, at the direction of Buyer (to be given
promptly following the Closing), Seller shall either terminate or assign to
Buyer the rights and obligations with respect to the Product under each such
Multi-Product Contract, to the extent permitted by the terms thereof, as soon as
practicable after obtaining Buyer's direction.

                                      -27-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

   Section 8.13 Manner of Business.

From and after the Closing Date, Buyer shall not, by any action or omission
cause sales of the Product to occur later than they would otherwise have
occurred during the ordinary course of business or cause returns of the Product
to occur earlier than they would otherwise have occurred.

   Section 8.14 Assumption of Ongoing Clinical Trials.

From and after the Closing Date, Buyer shall assume control of, and
responsibility for all costs, obligations and Liabilities arising after the
Closing from or related to, the ongoing clinical trials involving the Products
identified on Section 8.14 of the Seller Disclosure Schedule.

   Section 8.15 Compliance Audits.

From time to time as either Party may elect during the period commencing with
the Closing Date and ending on December 31, 2004, during normal business hours
and upon reasonable prior written notice to the other Party, each Party shall
permit duly authorized representatives of the other Party to review and inspect
the premises, facilities, inventory, records and documentation maintained by the
other Party for the purpose of determining compliance with the obligations under
this Agreement.

   Section 8.16 Labeling Requirements.

Following the Closing, Buyer shall at its own expense and as expeditiously as
possible use all reasonable efforts to obtain such FDA approvals necessary for
Buyer Labeling for the Product to be manufactured after the Closing.

   Section 8.17 Sale of Mysoline Suspension.

From and after the Closing Date, Seller shall not sell or offer for sale any
form of Mysoline Suspension, be it finished product, work in progress, or
otherwise.

   Section 8.18 Further Assurances.

       (a) On and after the Closing, Seller shall from time to time, at the
request of Buyer, (i) execute and deliver, or cause to be executed and
delivered, such other instruments of conveyance and transfer and take such other
actions as Buyer may reasonably request, in order to more effectively consummate
the transactions contemplated hereby and to vest in Buyer good and marketable
title to the Purchased Assets (including assistance in the collection or
reduction to possession of any of the Purchased Assets) and (ii) use its
commercially reasonable efforts to obtain all consents and waivers and to
resolve all material impracticalities of assignment or transfer necessary to
convey the Purchased Assets to Buyer.

       (b) On and after the Closing, Buyer shall from time to time, at the
request of Seller, take such actions as Seller may reasonably request, in order
to more effectively consummate the transactions contemplated hereby, including
Buyer's assumption of the Assumed Liabilities.

                                      -28-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

              ARTICLE IX. CONDITIONS TO THE OBLIGATIONS OF SELLER
              ---------------------------------------------------

The obligation of Seller to effect the transactions contemplated hereby is
subject to the satisfaction (or waiver by Seller), at or before the Closing, of
each of the following conditions:

   Section 9.01 Representations, Warranties and Covenants.

All representations and warranties of Buyer contained in this Agreement shall be
true and correct in all material respects on and as of the Closing Date, as
though given on such date, excluding for such purpose any representations and
warranties that are by their terms given only as of a specific date, and Buyer
shall have performed all agreements and covenants required by this Agreement to
be performed by it prior to or on the Closing Date, and Seller shall have
received a certificate to such effect dated the Closing Date and executed by a
duly authorized officer of Buyer.

   Section 9.02 No Actions or Proceedings.

No Actions or Proceedings that question the validity or legality of the
transactions contemplated hereby shall have been instituted or threatened and
not settled or otherwise terminated.

   Section 9.03 Consents.

All Seller Governmental Consents, Seller Third Party Consents, Buyer
Governmental Consents and Buyer Third Party Consents shall have been obtained or
made, as the case may be.

   Section 9.04 Other Closing Deliveries.

Buyer shall have delivered to Seller such other certificates and documents
customary in transactions similar to those contemplated hereby that are
reasonably requested by Seller.

   Section 9.05 Completion of Equity Financing.

Buyer shall have completed the sale of shares of its Series A-1 Preferred Stock
with an aggregate purchase price of no less than Sixty-Seven Million Five
Hundred Thousand Dollars ($67,500,000), including the sale to Seller or its
Affiliate of shares of its Series A-1 Preferred Stock with an aggregate purchase
price of no less than Fifteen Million Dollars ($15,000,000), on terms and
conditions satisfactory to Seller.

               ARTICLE X. CONDITIONS TO THE OBLIGATIONS OF BUYER
               -------------------------------------------------

The obligation of Buyer to effect the transactions contemplated hereby is
subject to the satisfaction (or waiver by Buyer), at or before the Closing, of
each of the following conditions:

   Section 10.01 Representations, Warranties and Covenants.

All representations and warranties of Seller contained in this Agreement shall
be true and correct in all material respects on and as of the Closing Date, as
though given on and as of such date, excluding for such purpose any
representations and warranties that are by their terms given only

                                      -29-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

as of a specific date, and Seller shall have performed all agreements and
covenants required by this Agreement to be performed by it prior to or on the
Closing Date, and Buyer shall have received a certificate to such effect dated
the Closing Date and executed by a duly authorized officer of Seller.

   Section 10.02 No Actions or Proceedings.

No Actions or Proceedings that question the validity or legality of the
transactions contemplated hereby shall have been instituted or threatened and
not settled or otherwise terminated.

   Section 10.03 Consents.

All Seller Governmental Consents, Seller Third Party Consents, Buyer
Governmental Consents and Buyer Third Party Consents shall have been obtained or
made, as the case may be.

   Section 10.04 Other Closing Deliveries.

Seller shall have delivered to Buyer such other certificates and documents
customary in transactions similar to those contemplated hereby that are
reasonably requested by Buyer.

                          ARTICLE XI. INDEMNIFICATION
                          ---------------------------

   Section 11.01 Survival of Representations, Warranties, Etc.

The representations, warranties and covenants of Seller and Buyer contained in
this Agreement shall survive the Closing and remain in full force and effect
indefinitely; provided, however, that the representations and warranties of
Seller and Buyer set forth in Article VI and Article VII hereof shall survive
the Closing and remain in full force and effect until the Expiration Date. All
representations and warranties contained in Article VI and Article VII of this
Agreement and all claims with respect thereto shall terminate on the Expiration
Date; provided that if notice of any claim for indemnification pursuant to
Section 11.02(a) or 11.02(b) shall have been given prior to the Expiration Date
and such notice describes with specificity the circumstances with respect to
which such indemnification claim relates, such indemnification claim shall
survive until such time as such claim is finally resolved.

   Section 11.02 Indemnification.

       (a) By Seller. Subject to Sections 11.03 and 11.04, from and after the
           ---------
Closing, Seller shall indemnify, reimburse, defend and hold harmless Buyer, its
Affiliates, and their respective officers, directors, employees, agents,
successors and assigns (collectively, the "Buyer Indemnified Parties") from and
                                           -------------------------
against any and all costs, losses, Liabilities, damages, lawsuits, deficiencies,
claims and expenses (including interest, penalties and reasonable fees and
disbursements of attorneys paid in connection with the investigation, defense or
settlement of any of the foregoing) (collectively, the "Damages"), to the extent
                                                        -------
incurred in connection with, arising out of, resulting from or incident to (i)
any inaccuracy or breach of any covenant, representation, warranty or other
agreement of Seller herein, (ii) Seller's conduct of the Business prior to the
Closing, including the development, manufacturing, marketing, sale or
distribution of the Product prior to the Closing; (iii) the failure of Seller to
pay, perform or discharge any

                                      -30-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

Excluded Liabilities; or (iv) the failure of Seller or the transactions
contemplated herein to comply with the Bulk Sales laws.

       (b) By Buyer. Subject to Sections 11.03 and 11.04, from and after the
           --------
Closing, Buyer shall indemnify, defend and hold harmless Seller, its Affiliates
and their respective officers, directors, employees, agents, successors and
assigns from and against any and all Damages incurred in connection with,
arising out of, resulting from or incident to (i) any inaccuracy or breach of
any covenant, representation, warranty or other agreement of Buyer herein, (ii)
Buyer's conduct of the Business from and after the Closing, including the
development, manufacturing, marketing, sale or distribution of the Product from
and after the Closing; and (iii) the failure of Buyer to pay, perform or
discharge any Assumed Liabilities.

       (c) Procedures. The indemnified Party (the "Indemnified Party") shall
           ----------                              -----------------
give the indemnifying Party (the "Indemnifying Party") prompt written notice (an
"Indemnification Claim Notice") of any Damages or discovery of fact upon which
 ----------------------------
such Indemnified Party intends to base a request for indemnification under
Section 11.02(a) or Section 11.02(b), but in no event shall the Indemnifying
Party be liable for any Damages that result from any delay in providing such
notice. Each Indemnification Claim Notice must contain a reasonable description
of the claim and the nature and amount of such Damages (to the extent that the
nature and amount of such Damages are known at such time). The Indemnified Party
shall furnish promptly to the Indemnifying Party copies of all papers and
official documents received in respect of any Damages. All indemnification
claims in respect of a Party, its Affiliates or their respective directors,
officers, employees and agents (collectively, the "Indemnitees" and each an
                                                   -----------
"Indemnitee") shall be made solely by such Party to this Agreement.
 ----------

       (d) Third Party Claims. The obligations of an Indemnifying Party under
           ------------------
this Section 11.02 with respect to Damages arising from claims of any third
party that are subject to indemnification as provided for in Section 11.02(a) or
Section 11.02(b) (a "Third Party Claim") shall be governed by and be contingent
                     -----------------
upon the following additional terms and conditions:

           (i) At its option, the Indemnifying Party may assume the defense of
   any Third Party Claim by giving written notice to the Indemnified Party
   within thirty (30) days after the Indemnifying Party's receipt of an
   Indemnification Claim Notice. The assumption of the defense of a Third Party
   Claim by the Indemnifying Party shall not be construed as an acknowledgment
   that the Indemnifying Party is liable to indemnify any Indemnitee in respect
   of the Third Party Claim, nor shall it constitute a waiver by the
   Indemnifying Party of any defenses it may assert against any Indemnitee's
   claim for indemnification. Upon assuming the defense of a Third Party Claim,
   the Indemnifying Party may appoint as lead counsel in the defense of the
   Third Party Claim any legal counsel selected by the Indemnifying Party that
   is reasonably acceptable to the Indemnified Party. In the event the
   Indemnifying Party assumes the defense of a Third Party Claim, the
   Indemnified Party shall promptly deliver to the Indemnifying Party all
   original notices and documents (including court papers) received by any
   Indemnitee in connection with the Third Party Claim. Should the Indemnifying
   Party assume the defense of a Third Party Claim, except as provided in
   subsection (ii) below, the Indemnifying Party shall not be liable to the
   Indemnified Party or any other Indemnitee for any legal expenses subsequently
   incurred by such Indemnified Party or other

                                      -31-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

   Indemnitee in connection with the analysis, defense or settlement of the
   Third Party Claim. In the event that it is ultimately determined that the
   Indemnifying Party is not obligated to indemnify, defend or hold harmless an
   Indemnitee from and against the Third Party Claim, the Indemnified Party
   shall reimburse the Indemnifying Party for any and all costs and expenses
   (including attorneys' fees and costs of suit) and any Damages incurred by the
   Indemnifying Party in its defense of the Third Party Claim with respect to
   such Indemnitee.

           (ii) Without limiting Section 11.02(d)(i), any Indemnitee shall be
   entitled to participate in, but not control, the defense of such Third Party
   Claim and to employ counsel of its choice for such purpose; provided,
   however, that such employment shall be at the Indemnitee's own expense unless
   (A) the employment thereof has been specifically authorized by the
   Indemnifying Party in writing, (B) the Indemnifying Party has failed to
   assume the defense and employ counsel in accordance with Section 11.02(d)(i)
   (in which case the Indemnified Party shall control the defense) or (C) if the
   Indemnified Party and the Indemnifying Party are both named parties to the
   proceeding and the Indemnified Party has reasonably concluded that there may
   be one or more legal defenses that are different from or in addition to those
   available to the Indemnifying Party (in which case the Indemnifying Party
   shall not have the right to assume the defense of such action on behalf of
   the Indemnified Party and the Indemnifying Party shall be liable for all
   legal expenses incurred by the Indemnified Party in furtherance thereof).

           (iii) With respect to any Damages relating solely to the payment of
   money damages in connection with a Third Party Claim and that will not result
   in the Indemnitee's becoming subject to injunctive or other relief or
   otherwise adversely affect the business of the Indemnitee in any manner, and
   as to which the Indemnifying Party shall have acknowledged in writing the
   obligation to indemnify the Indemnitee hereunder, the Indemnifying Party
   shall have the sole right to consent to the entry of any judgment, enter into
   any settlement or otherwise dispose of such Damages, on such terms as the
   Indemnifying Party, in its sole discretion, shall deem appropriate. With
   respect to all other Damages in connection with Third Party Claims, where the
   Indemnifying Party has assumed the defense of the Third Party Claim in
   accordance with Section 11.02(d)(i), the Indemnifying Party shall have
   authority to consent to the entry of any judgment, enter into any settlement
   or otherwise dispose of such Damages; provided that it obtains the prior
   written consent of the Indemnified Party (which consent shall not be
   unreasonably withheld or delayed). The Indemnifying Party shall not be liable
   for any settlement or other disposition of Damages by an Indemnitee that is
   reached without the written consent of the Indemnifying Party (which consent
   shall not be unreasonably withheld or delayed). Regardless of whether the
   Indemnifying Party chooses to defend or prosecute any Third Party Claim, no
   Indemnitee shall admit any liability with respect to, or settle, compromise
   or discharge, any Third Party Claim without the prior written consent of the
   Indemnifying Party.

           (iv) Regardless of whether the Indemnifying Party chooses to defend
   or prosecute any Third Party Claim, the Indemnified Party shall, and shall
   cause each other Indemnitee to, cooperate in the defense or prosecution
   thereof and shall furnish such records, information and testimony, provide
   such witnesses and attend such conferences,

                                      -32-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

   discovery proceedings, hearings, trials and appeals as may be reasonably
   requested in connection therewith. Such cooperation shall include access
   during normal business hours afforded to the Indemnifying Party to, and
   reasonable retention by the Indemnified Party of, records and information
   that are reasonably relevant to such Third Party Claim, and making
   Indemnitees and other employees and agents available on a mutually convenient
   basis to provide additional information and explanation of any material
   provided hereunder, and the Indemnifying Party shall reimburse the
   Indemnified Party for all its reasonable out-of-pocket expenses in connection
   therewith.

       (e) Expenses. Except as provided above, the costs and expenses, including
           --------
fees and disbursements of counsel, incurred by the Indemnified Party in
connection with any claim shall be reimbursed on a quarterly basis by the
Indemnifying Party, without prejudice to the Indemnifying Party's right to
contest the Indemnified Party's right to indemnification and subject to refund
in the event the Indemnifying Party is ultimately held not to be obligated to
indemnity the Indemnified Party.

Section 11.03     Limitations.

       (a) In no event shall Seller be liable for any Damages pursuant to
Section 11.02(a) unless and until the aggregate amount of all such Damages
exceeds [CONFIDENTIAL TREATMENT REQUESTED], in which case Seller shall be
liable for all such Damages in excess of [CONFIDENTIAL TREATMENT REQUESTED];
provided that Damages shall not be subject to the limitations set
forth in this Section 11.03(a) to the extent that such Damages are payable in
connection with (i) Seller's breach of Section 8.01; (ii) Seller's failure to
pay Buyer amounts due under Sections 4.02(a) and (b), 8.09, and 8.10; and (iii)
Seller's failure to pay or otherwise satisfy any Excluded Liabilities.

       (b) In no event shall the aggregate liability of Seller for any Damages
pursuant to Section 11.02(a) (other than Damages due to Seller's failure to pay
or otherwise satisfy any Excluded Liabilities) exceed the aggregate amount of
cash consideration received from Buyer pursuant to Section 4.01(a) hereof.

       (c) The amount of any Damages under Sections 11.02(a) and 11.02(b) shall
be reduced by the amount of any insurance proceeds paid to the Indemnified Party
relating to such claim.

       (d) Except with respect to claims based on fraud, after the Closing, the
right of the Buyer Indemnified Parties to indemnification under this Article XI
shall be the exclusive remedy of the Buyer Indemnified Parties with respect to
claims incurred in connection with, arising out of, resulting from or incident
to (i) any inaccuracy or breach of any covenant, representation, warranty or
other agreement of Seller herein, (ii) Seller's conduct of the Business prior to
the Closing, including Seller's development, manufacturing, marketing, sale or
distribution of the Product prior to the Closing; (iii) the failure of Seller to
pay, perform or discharge any Excluded Liabilities; or (iv) the failure of
Seller or the transactions contemplated herein to comply with the Bulk Sales
laws.

                                      -33-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

   Section 11.04 Limitation of Liability.

NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, NEITHER PARTY NOR
ANY OF THEIR RESPECTIVE AFFILIATES SHALL BE LIABLE TO THE OTHER PARTY BY REASON
OF ANY REPRESENTATION OR WARRANTY, CONDITION OR OTHER TERM OR ANY DUTY OF COMMON
LAW, OR UNDER THE EXPRESS TERMS OF THIS AGREEMENT, FOR ANY CONSEQUENTIAL,
SPECIAL OR INCIDENTAL OR PUNITIVE LOSS OR DAMAGE (WHETHER FOR LOSS OF CURRENT OR
FUTURE PROFITS, LOSS OF ENTERPRISE VALUE OR OTHERWISE) AND WHETHER OCCASIONED BY
THE NEGLIGENCE OF SUCH PARTY OR ITS AFFILIATES OR ANY OF THEIR RESPECTIVE
OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES.

                           ARTICLE XII. MISCELLANEOUS
                           --------------------------

   Section 12.01 Confidentiality.

       (a) In addition to the restrictions contained in Section 8.04, after the
Closing, no Party (a "Disclosing Party") shall, without the prior written
                      ----------------
consent of the other Party (the "Non-disclosing Party"), disclose to any Person
                                 --------------------
Confidential Information (as defined below) of the Non-disclosing Party, except
to a Disclosing Party's employees or representatives who need to know such
information for any reason contemplated by this Agreement (and then only to the
extent that such persons are under an obligation to maintain the confidentiality
of the Confidential Information), or use any Confidential Information of the
Non-disclosing Party for any reason other than contemplated by this Agreement
unless such Disclosing Party has used its best efforts to (i) consult with the
Non-disclosing Party and obtain the Non-disclosing Party's prior written consent
in a timely manner, and (ii) the Disclosing Party has been advised by counsel
that disclosure is required to be made under applicable Law or the requirements
of a national securities exchange or another similar regulatory body. In the
event that the Disclosing Party is requested or required by documents subpoena,
civil investigative demand, interrogatories, requests for information, or other
similar process to disclose any Confidential Information, the Disclosing Party
shall provide the Non-disclosing Party with prompt written notice of such
request or demands or other similar process so that the Non-disclosing Party may
seek an appropriate protective order or, if such request, demand or other
similar process is mandatory, waive the Disclosing Party's compliance with the
provisions of this Section 12.01(a) as appropriate.

       (b) The term "Confidential Information" as used in this Section 12.01
                     ------------------------
means (i) as to Buyer, all confidential information relating to Buyer's
business, the Purchased Assets and the Assumed Liabilities, and (ii) as to
Seller, all confidential information relating to the Business (other than the
Purchased Assets) and the business and operations of the Seller and its
Affiliates, including the Excluded Assets and the Excluded Liabilities or other
obligations other than the Assumed Liabilities, in each of (i) and (ii) whether
disclosed prior to or after the date hereof. The term "Confidential Information"
                                                       ------------------------
does not include information which becomes generally available to the public
other than as a result of disclosure by the Disclosing Party, or becomes
available to the Disclosing Party on a non-confidential basis from a source
other than the Non-

                                      -34-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

disclosing Party, provided that such source is not bound by a confidentiality
agreement with the Non-disclosing Party.

       (c) This Section 12.01 supercedes and replaces in its entirety that
certain letter agreement relating to confidentiality dated March 28, 2001
between Seller or its Affiliate and Buyer.

   Section 12.02 Notices.

All notices, requests and other communications hereunder must be in writing and
will be deemed to have been duly given only if delivered personally against
written receipt or by facsimile transmission with answer back confirmation or
mailed (postage prepaid by certified or registered mail, return receipt
requested) or by nationally recognized overnight courier that maintains records
of delivery to the Parties at the following addresses or facsimile numbers:

         If to Buyer to:       Xcel Pharmaceuticals, Inc.
                               6363 Greenwich Drive, Suite 100
                               San Diego, CA 92122
                               Attention:  Corporate Secretary
                               Facsimile:  (858) 202-2799

         With copies to:       Pillsbury Winthrop LLP
                               101 W. Broadway, Suite 1800
                               San Diego, CA 92101
                               Attention:  David R. Snyder, Esq.
                               Facsimile:  (619) 236-1995

         If to Seller to:      Elan Pharma International Limited
                               WIL House
                               Shannon Business Park
                               Shannon
                               Co Clare, Ireland
                               Attention:  Company Secretary
                               Facsimile:  +353 61 362 097

         With copies to:       Brobeck, Phleger & Harrison LLP
                               12390 El Camino Real
                               San Diego, CA 92130
                               Attention:  Faye H. Russell, Esq.
                               Facsimile:  (858) 720-2555

All such notices, requests and other communications will (i) if delivered
personally to the address as provided in this Section, be deemed given upon
receipt, (ii) if delivered by facsimile to the facsimile number as provided in
this Section, be deemed given upon receipt by the sender of the answer back
confirmation and (ii) if delivered by mail in the manner described above or by
overnight courier to the address as provided in this Section, be deemed given
upon receipt (in each case regardless of whether such notice, request or other
communication is received by any other Person to whom a copy of such notice,
request or other communication is to be delivered

                                      -35-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

pursuant to this Section). Any Party from time to time may change its address,
facsimile number or other information for the purpose of notices to that Party
by giving notice specifying such change to the other Parties hereto in
accordance with the terms of this Section.

   Section 12.03 Entire Agreement.

This Agreement, together with the Product Acquisition Financing Agreement (and
all Exhibits and Schedules attached hereto and thereto and all other documents
delivered in connection herewith and therewith) supersedes all prior discussions
and agreements among the Parties with respect to the subject matter hereof and
thereof and contains the sole and entire agreement among the Parties hereto and
thereto with respect to the subject matter hereof and thereof.

   Section 12.04 Waiver.

Any term or condition of this Agreement may be waived at any time by the Party
that is entitled to the benefit thereof, but no such waiver shall be effective
unless set forth in a written instrument duly executed by or on behalf of the
Party waiving such term or condition. No waiver by any Party hereto of any term
or condition of this Agreement, in any one or more instances, shall be deemed to
be or construed as a waiver of the same or any other term or condition of this
Agreement on any future occasion. All remedies, either under this Agreement or
by law or otherwise afforded, will be cumulative and not alternative.

   Section 12.05 Amendment.

This Agreement may be amended, supplemented or modified only by a written
instrument duly executed by each Party hereto.

   Section 12.06 Third Party Beneficiaries.

The terms and provisions of this Agreement are intended solely for the benefit
of each Party hereto (including, in the case of Seller, Seller's Affiliates) and
their respective successors or permitted assigns and it is not the intention of
the Parties to confer third-party beneficiary rights upon any other Person.

   Section 12.07 Assignment; Binding Effect.

Neither this Agreement nor any right, interest or obligation hereunder may be
assigned by any Party hereto without the prior written consent of the other
Party hereto (which consent shall not be unreasonably withheld) and any attempt
to do so will be void. This Agreement is binding upon, inures to the benefit of
and is enforceable by the Parties hereto and their respective successors and
permitted assigns.

   Section 12.08 Headings.

The headings used in this Agreement have been inserted for convenience of
reference only and do not define or limit the provisions hereof.

                                      -36-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

   Section 12.09 Severability.

If any provision of this Agreement is held to be illegal, invalid or
unenforceable under any present or future law, and if the rights or obligations
of any Party hereto under this Agreement will not be materially and adversely
affected thereby, (a) such provision will be fully severable, (b) this Agreement
will be construed and enforced as if such illegal, invalid or unenforceable
provision had never compromised a part hereof, (c) the remaining provisions of
this Agreement will remain in full force and effect and will not be affected by
the illegal, invalid or unenforceable provision or by its severance herefrom,
and (d) in lieu of such illegal, invalid or unenforceable provision, there will
be added automatically as a part of this Agreement a legal, valid and
enforceable provision as similar to terms to such illegal, invalid or
unenforceable provision as may be possible and reasonably acceptable to the
Parties herein.

   Section 12.10 Governing Law.

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS EXECUTED AND PERFORMED IN SUCH
STATE, WITHOUT GIVING EFFECT TO CONFLICTS OF LAWS PRINCIPLES.

   Section 12.11 Expenses.

Except as otherwise provided in this Agreement, each Party hereto shall pay its
own expenses and costs incidental to the preparation of this Agreement and to
the consummation of the transactions contemplated hereby.

   Section 12.12 Counterparts.

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

   Section 12.13 Schedules, Exhibits and Other Agreements.

The Exhibits, Schedules, other agreements, certificates and notices specifically
referred to herein, and delivered pursuant hereto, are an integral part of this
Agreement. Any disclosure that is made in any of the Schedules or certificates
delivered pursuant to this Agreement shall be deemed responsive to any other
applicable disclosure obligation hereunder.

                            [Signature Page Follows]

                                      -37-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

IN WITNESS WHEREOF, this Agreement has been executed by the Parties hereto all
as of the date first above written.

                               ELAN PHARMA INTERNATIONAL LIMITED

                               By:      /s/ Kevin Insley
                                        ----------------------------------------
                               Title:   Authorised Signatory
                                        ----------------------------------------

                               XCEL PHARMACEUTICALS, INC.

                               By:      /s/ Michael Borer
                                        ----------------------------------------
                               Title:   President & CEO
                                        ----------------------------------------

                                      -38-

<PAGE>

                                                          CONFIDENTIAL TREATMENT

                                    SCHEDULES
                                    ---------

Schedules
---------

Exhibit A - Product

Seller Disclosure Schedule

Buyer Disclosure Schedule

The exhibits and schedules have been omitted from this Agreement as filed with
the Securities and Exchange Commission (the "SEC"). The omitted information is
considered immaterial from an investor's perspective. The Registrant will
furnish supplementally a copy of any of the documents to the SEC upon request of
the SEC.

                                      -39-Financing Agreement

 EXHIBIT 10.5 
  
 FINANCING AGREEMENT 
  
 Dated as of March 28, 2003 
  
 by and among 
  
 XCEL PHARMACEUTICALS, INC., 
  
 THE LENDERS FROM TIME TO TIME PARTY HERETO, 
  
 REGIMENT CAPITAL III, L.P., 
  
 as Collateral Agent 
  
 and 
  
 as Administrative Agent 

 TABLE OF CONTENTS 
  

	 	 	 	  	Page

	ARTICLE I DEFINITIONS; CERTAIN TERMS	  	1
			
	 Section 1.01
	 	Definitions	  	1
			
	 Section 1.02
	 	Terms Generally	  	23
			
	 Section 1.03
	 	Accounting and Other Terms	  	23
			
	 Section 1.04
	 	Time References	  	23
		
	ARTICLE II THE TERM LOAN	  	23
			
	 Section 2.01
	 	Term Loan Commitments	  	23
			
	 Section 2.02
	 	Making the Term Loan	  	24
			
	 Section 2.03
	 	Repayment of the Term Loan; Evidence of Debt	  	24
			
	 Section 2.04
	 	Interest	  	25
			
	 Section 2.05
	 	Termination of Commitment; Prepayment of Term Loan	  	25
			
	 Section 2.06
	 	Fees	  	26
			
	 Section 2.07
	 	Securitization	  	27
			
	 Section 2.08
	 	Taxes	  	27
		
	ARTICLE III FEES, PAYMENTS AND OTHER COMPENSATION	  	29
			
	 Section 3.01
	 	Audit and Collateral Monitoring Fees	  	29
			
	 Section 3.02
	 	Payments; Computations and Statements	  	29
			
	 Section 3.03
	 	Sharing of Payments, Etc	  	30
			
	 Section 3.04
	 	Apportionment of Payments	  	30
			
	 Section 3.05
	 	Increased Costs and Reduced Return	  	31
		
	ARTICLE IV CONDITIONS	  	32
			
	 Section 4.01
	 	Conditions Precedent	  	32
		
	ARTICLE V REPRESENTATIONS AND WARRANTIES	  	36
			
	 Section 5.01
	 	Representations and Warranties	  	36
		
	ARTICLE VI COVENANTS OF THE LOAN PARTIES	  	44
			
	 Section 6.01
	 	Affirmative Covenants	  	44
			
	 Section 6.02
	 	Negative Covenants	  	52
			
	 Section 6.03
	 	Financial Covenants	  	57

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

	 	 	 	  	Page

	 ARTICLE VII MANAGEMENT, COLLECTION AND STATUS OF ACCOUNTS RECEIVABLE AND OTHER COLLATERAL
	  	58
			
	 Section 7.01
	 	Collection of Accounts Receivable; Management of Collateral	  	58
			
	 Section 7.02
	 	Accounts Receivable Documentation	  	59
			
	 Section 7.03
	 	Status of Accounts Receivable and Other Collateral	  	59
			
	 Section 7.04
	 	Collateral Custodian	  	60
		
	 ARTICLE VIII EVENTS OF DEFAULT
	  	60
			
	 Section 8.01
	 	Events of Default	  	60
		
	 ARTICLE IX AGENTS
	  	64
			
	 Section 9.01
	 	Appointment	  	64
			
	 Section 9.02
	 	Nature of Duties	  	65
			
	 Section 9.03
	 	Rights, Exculpation	  	65
			
	 Section 9.04
	 	Reliance	  	66
			
	 Section 9.05
	 	Indemnification	  	66
			
	 Section 9.06
	 	Agents Individually	  	67
			
	 Section 9.07
	 	Successor Agent	  	67
			
	 Section 9.08
	 	Collateral Matters	  	67
			
	 Section 9.09
	 	Agency for Perfection	  	69
		
	 ARTICLE X MISCELLANEOUS
	  	69
			
	 Section 10.01
	 	Notices	  	69
			
	 Section 10.02
	 	Amendments, Etc	  	70
			
	 Section 10.03
	 	No Waiver; Remedies, Etc	  	71
			
	 Section 10.04
	 	Expenses; Taxes; Attorneys’ Fees	  	71
			
	 Section 10.05
	 	Right of Set-off	  	72
			
	 Section 10.06
	 	Severability	  	72
			
	 Section 10.07
	 	Assignments and Participations	  	72
			
	 Section 10.08
	 	Counterparts	  	75
			
	 Section 10.09
	 	GOVERNING LAW	  	75
			
	 Section 10.10
	 	CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE	  	75
			
	 Section 10.11
	 	WAIVER OF JURY TRIAL, ETC	  	76

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

	 	 	 	  	Page

	 Section 10.12
	 	Consent by the Agents and Lenders	  	76
			
	 Section 10.13
	 	No Party Deemed Drafter	  	77
			
	 Section 10.14
	 	Reinstatement; Certain Payments	  	77
			
	 Section 10.15
	 	Indemnification	  	77
			
	 Section 10.16
	 	Records	  	78
			
	 Section 10.17
	 	Binding Effect	  	78
			
	 Section 10.18
	 	Interest	  	78
			
	 Section 10.19
	 	Confidentiality	  	79
			
	 Section 10.20
	 	Integration	  	80

  
  

 iii 

 SCHEDULE AND EXHIBITS 
  

	 Schedule 1.01(a)
	 	Lenders and Term Loan Commitments
	 Schedule 5.01(f)
	 	Litigation; Commercial Tort Claims
	 Schedule 5.01(i)
	 	ERISA
	 Schedule 5.01(o)
	 	Real Property
	 Schedule 5.01(q)
	 	Operating Leases
	 Schedule 5.01(r)
	 	Environmental Matters
	 Schedule 5.01(s)
	 	Insurance
	 Schedule 5.01(v)
	 	Bank Accounts
	 Schedule 5.01(w)
	 	Intellectual Property
	 Schedule 5.01(x)
	 	Material Contracts
	 Schedule 5.01(cc)
	 	Name; Jurisdiction of Organization; Organizational ID Number; Chief Place of Business; Chief Executive Office; FEIN
	 Schedule 5.01(dd)
	 	Collateral Locations
	 Schedule 6.02(a)
	 	Existing Liens
	 Schedule 6.02(b)
	 	Existing Indebtedness
	 Schedule 6.02(e)
	 	Existing Investments
	 Schedule 6.02(k)
	 	Limitations on Dividends and Other Payment Restrictions
		
	 Exhibit A-1
	 	Form of Assignment and Acceptance
	 Exhibit G-1
	 	Form of Guaranty
	 Exhibit P-1
	 	Form of Patent Security Agreement
	 Exhibit P-2
	 	Form of Pledge Agreement
	 Exhibit S-1
	 	Form of Security Agreement
	 Exhibit T-1
	 	Form of Trademark Security Agreement
	 Exhibit 2.02
	 	Form of Notice of Borrowing
	 Exhibit 4.01(d)(xii)
	 	Form of Opinion of Counsel

  

 iv 

 Execution Version 
  
 FINANCING AGREEMENT 
  
 Financing Agreement, dated as of March 28, 2003, by and among XCEL PHARMACEUTICALS, INC., a Delaware corporation (the “Borrower”),
the lenders from time to time party hereto (each a “Lender” and collectively, the “Lenders”), REGIMENT CAPITAL III, L.P., a Delaware limited partnership (“Regiment”), as collateral agent for the
Lenders (in such capacity, together with any successor collateral agent, the “Collateral Agent”), and as administrative agent for the Lenders (in such capacity, together with any successor administrative agent, the
“Administrative Agent” and together with the Collateral Agent, each an “Agent” and collectively, the “Agents”). 
  
 RECITALS 
  
 The Borrower has asked the Lenders to extend credit to the Borrower consisting of a term loan in the aggregate principal amount of $62,000,000. The
proceeds of the term loan shall be used to refinance existing product financing indebtedness of the Borrower and to pay fees and expenses related to this Agreement. The Lenders are severally, and not jointly, willing to extend such credit to the
Borrower subject to the terms and conditions hereinafter set forth. 
  
 In consideration of the premises and the covenants and agreements contained herein, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS; CERTAIN TERMS 
  
 Section 1.01 Definitions. As used in this Agreement, the following terms shall have the respective meanings indicated below, such meanings to be applicable equally to both the singular and plural forms of such
terms: 
  
 “Account Debtor” means any Person who
is or who may become obligated under, with respect to, or on account of, an Account Receivable, chattel paper, or a general intangible. 
  
 “Account Receivable” means, with respect to any Person, all of such Person’s now owned or hereafter acquired right, title, and
interest with respect to “accounts” (as that term is defined in the Code), and any and all “supporting obligations” (as that term is defined in the Code) in respect thereof. 
  
 “Action” has the meaning specified therefor in Section
10.12. 
  
 “Administrative Agent” has the
meaning specified therefor in the preamble hereto. 

 “Administrative Agent’s Account” means an account at a bank designated by the
Administrative Agent from time to time as the account into which the Borrower shall make all payments to the Administrative Agent for the benefit of the Agents and the Lenders under this Agreement and the other Loan Documents. 
  
 “Affiliate” means, with respect to any Person, any other
Person that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” of a Person means the power, directly or
indirectly, either to (i) vote 10% or more of the Capital Stock having ordinary voting power for the election of directors of such Person or (ii) direct or cause the direction of the management and policies of such Person whether by contract or
otherwise. Notwithstanding anything herein to the contrary, in no event shall any Agent or any Lender be considered an “Affiliate” of any Loan Party. 
  

“After Acquired Property” means any interest in real property acquired by the Borrower or any of its Subsidiaries after the date
hereof with a Current Value in excess of $500,000 in the case of a fee interest or requiring the payment of annual rent exceeding in the aggregate $500,000 in the case of a leasehold interest. 
  
 “Agent” has the meaning specified therefor in the preamble
hereto. 
  
 “Agreement” means this Financing
Agreement, including all amendments, modifications and supplements and any exhibits or schedules to any of the foregoing, and shall refer to the Agreement as the same may be in effect at the time such reference becomes operative. 
  
 “Anniversary Date” means March 31, 2004 and each March 31 to
occur thereafter. 
  
 “Anniversary Fee” has the
meaning specified therefor in Section 2.06(c). 
  
 “Assignment and Acceptance” means an assignment and acceptance entered into by an assigning Lender and an assignee, and accepted by the Collateral Agent, in accordance with Section 10.07 hereof and substantially in
the form of Exhibit A-1 hereto or such other form acceptable to the Collateral Agent. 
  
 “Authorized Officer” means, with respect to any Person, the chief executive officer, chief financial officer, president or executive vice president of such Person. 
  
 “Bankruptcy Code” means the United States Bankruptcy Code
(11 U.S.C. § 101, et seq.), as amended, and any successor statute. 
  
 “Board” means the Board of Governors of the Federal Reserve System of the United States. 
  
 “Borrower” has the meaning specified therefor in the preamble hereto. 
  
 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New
York City are authorized or required to close. 
  

 2 

 “Capital Expenditures” means, with respect to any Person for any period, the aggregate
of all expenditures by such Person and its Subsidiaries, determined on a consolidated basis, without duplication, during such period that in accordance with GAAP are required to be included in “property, plant and equipment” or in a
similar fixed asset account on its balance sheet, whether such expenditures are paid in cash or financed and including all Capitalized Lease Obligations incurred during such period. 
  
 “Capital Guideline” means any law, rule, regulation, policy, guideline or directive (whether or not having
the force of law and whether or not the failure to comply therewith would be unlawful) (i) regarding capital adequacy, capital ratios, capital requirements, the calculation of a bank’s capital or similar matters, or (ii) affecting the amount of
capital required to be obtained or maintained by any Lender or any Person controlling any Lender or the manner in which any Lender or any Person controlling any Lender allocates capital to any of its contingent liabilities (including letters of
credit), advances, acceptances, commitments, assets or liabilities. 
  
 “Capitalized Lease” means, with respect to any Person, any lease of real or personal property by such Person as lessee which is required under GAAP to be capitalized on the balance sheet of such Person. 
  
 “Capitalized Lease Obligations” means, with respect to any
Person, obligations of such Person and its Subsidiaries under Capitalized Leases, and, for purposes hereof, the amount of any such obligation shall be the capitalized amount thereof determined in accordance with GAAP. 
  
 “Capital Stock” means (i) with respect to any Person that is
a corporation, any and all shares, interests, participations or other equivalents (however designated and whether or not voting) of corporate stock, and (ii) with respect to any Person that is not a corporation, any and all partnership, membership
or other equity interests of such Person. 
  
 “Cash and
Cash Equivalents” means all cash, deposit or securities account balances, certificates of deposit or other financial instruments properly classified as cash or cash equivalents under GAAP. 
  
 “Cash Test Date” means any of: the last day of each month,
the day on which a Permitted Acquisition is consummated, or the day on which a Milestone Payment Obligation is paid. 
  
 “Change of Control” means each occurrence of any of the following: 
  
 (a) at any time prior to the initial public offering of the Borrower’s common Capital Stock, the Permitted Holders
shall cease to have beneficial ownership (as defined in Rule 13d-3 under the Exchange Act), in the aggregate, of at least 50.1% of the aggregate outstanding voting power of the Capital Stock of the Borrower; 
  
 (b) at any time after the initial public offering of the Borrower’s
common Capital Stock, any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than the holders of the Borrower’s Capital Stock as of the date hereof, is or
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a person shall be deemed to have “beneficial ownership” of all securities 
  

 3 

 
that such person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of 50.1%
or more of the combined voting power of the Borrower’s Capital Stock ordinarily having the right to vote at an election of directors; 
  
 (c) at any time prior to the initial public offering of the Borrower’s common Capital Stock, the Permitted Holders cease to have the power to
appoint, or cease to have appointed, a majority of the individuals who comprise the Board of Directors of the Borrower; 
  
 (d) at any time after the initial public offering of the Borrower’s common Capital Stock, during any period of 12 consecutive calendar months,
individuals who were directors of the Borrower on the first day of such period, or whose election or nomination for election to the board of directors of the Borrower was recommended or approved by at least a majority of the directors then still in
office who were directors of the Borrower on the first day of such period, or whose election or nomination for election was so approved, shall cease to constitute a majority of the Board of Directors of the Borrower; 
  
 (e) (i) the Borrower consolidates with or merges into another entity or
conveys, transfers or leases all or substantially all of its property and assets to any Person, or (ii) any entity consolidates with or merges into the Borrower, which in either event (i) or (ii) is pursuant to a transaction in which the outstanding
voting Capital Stock of the Borrower is reclassified or changed into or exchanged for cash, securities or other property, other than any such transaction that is consummated prior to the initial public offering of the Borrower’s common Capital
Stock in which the Permitted Holders have a beneficial ownership in the aggregate of at least 50.1% of the aggregate voting power of all Capital Stock of the resulting, surviving or transferee entity or any such transaction that is consummated after
the initial public offering of the Borrower’s common Capital Stock in which the holders of the Borrower’s Capital Stock as of immediately prior to such transaction have a beneficial ownership in the aggregate of at least 50.1% of the
aggregate voting power of all Capital Stock of the resulting, surviving or transferee entity; or 
  
 (f) Michael Borer ceases to be the Chief Executive Officer of the Borrower unless within 10 days after the effective date of Michael Borer’s
departure as Chief Executive Officer, the Company’s Board of Directors, through a unanimous vote, has elected a successor Chief Executive Officer. 
  
 “Closing Fee” has the meaning specified therefor in Section 2.06(a). 
  
 “Code” means the New York Uniform Commercial Code, as in effect from time to time. 
  
 “Collateral” means all of the property and assets and all
interests therein and proceeds thereof now owned or hereafter acquired by any Person upon which a Lien is granted or purported to be granted by such Person as security for all or any part of the Obligations. 
  
 “Collateral Agent” has the meaning specified therefor in the
preamble hereto. 
  
 “Collateral Agent Advances has
the meaning specified therefor in Section 9.08(a). 
  

 4 

 “Consolidated EBITDA” means, for any period, the Consolidated Net Income of the Borrower
and its Subsidiaries for such period, plus without duplication, the sum of the following amounts of the Borrower and its Subsidiaries for such period and to the extent deducted in determining Consolidated Net Income of the Borrower and its
Subsidiaries for such period: (A) Consolidated Net Interest Expense, (B) federal, state and local income tax expense, (C) depreciation expense, and (D) amortization expense, whether for goodwill or otherwise. 
  
 “Consolidated Funded Indebtedness” means, at any date, all
Indebtedness of the Borrower and its Subsidiaries, determined on a consolidated basis in accordance with GAAP, which by its terms matures more than one year after the date of calculation, and any such Indebtedness maturing within one year from such
date which is renewable or extendable at the option of the Borrower or its applicable Subsidiary to a date more than one year from such date, including, in any event, but without duplication, with respect to the Borrower and its Subsidiaries, the
amount of their Capital Lease Obligations. 
  
 “Consolidated Net Income” means, for any period, the net income (loss) of the Borrower and its Subsidiaries for such period, determined on a consolidated basis and in accordance with GAAP, but excluding from the
determination of Consolidated Net Income (without duplication) (a) any non-cash extraordinary or non-recurring gains or losses or non-cash gains or losses from Dispositions, (b) restructuring charges, (c) effects of discontinued operations, and (d)
interest or dividends that are paid-in-kind (including, without limitation, accrued dividends payable by the Borrower to the holders of the Permitted Preferred Stock); provided, however, that, notwithstanding anything in this Agreement
to the contrary, (1) Consolidated Net Income shall not be reduced by any costs and expenses incurred or paid by the Borrower or its Subsidiaries during such period in reduction of any transaction costs, upfront license fees, milestone payments or
development costs associated with any pharmaceutical products acquired in a Permitted Acquisition to the extent such costs and expenses were paid out of the proceeds of the issuance by the Borrower of its Capital Stock or of Subordinated Debt (it
being understood that after the consummation of the transactions contemplated to occur on the Effective Date, including the issuance of the Borrower’s Series C-1 Preferred Stock, the Borrower will have approximately $8,000,000 of excess
proceeds out of the issuance of Capital Stock) and (2) any transaction costs, upfront license fees or milestone payments associated with any pharmaceutical products acquired in a Permitted Acquisition but not paid out of the proceeds of the issuance
by the Borrower of its Capital Stock or of Subordinated Debt, shall be amortized equally over five (5) years. For the avoidance of doubt, the parties acknowledge that development costs associated with any pharmaceutical products acquired by the
Borrower or any of its Subsidiaries that are not paid out of the proceeds of the issuance of Capital Stock or Subordinated Debt shall reduce Consolidated Net Income. 
  
 “Consolidated Net Interest Expense” means, for any period, gross interest expense of the Borrower and its
Subsidiaries for such period determined on a consolidated basis and in accordance with GAAP (including, without limitation, interest expense paid to Affiliates of the Borrower), less (i) the sum of (A) interest income for such period and (B)
gains for such period on Hedging Agreements (to the extent not included in interest income above and to the extent not deducted in the calculation of gross interest expense), plus (ii) the sum of (A) losses for such period on Hedging
Agreements (to the extent not included in such gross interest expense) and (B) the upfront costs or fees for such period associated with Hedging Agreements (to the extent not 
  

 5 

 
included in such gross interest expense), in each case, determined on a consolidated basis and in accordance with GAAP. 
  
 “Consolidated Net Worth” means, at any time, the total
stockholders’ equity (including capital stock, additional paid-in-capital and retained earnings or accumulated deficits) which would appear on the balance sheet of the Borrower and its Subsidiaries at such time, determined on a consolidated
basis in accordance with GAAP; provided, however, that for purposes of calculating Consolidated Net Worth, any outstanding Subordinated Debt shall be added to total stockholders’ equity without regard to GAAP. 
  
 “Contingent Obligation” means, with respect to any Person,
any obligation of such Person guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, (i) the direct or indirect guaranty, endorsement (other than for collection or deposit in the ordinary course of business), co-making, discounting with recourse or sale with recourse by such Person of the
obligation of a primary obligor, (ii) the obligation to make take-or-pay or similar payments, if required, regardless of nonperformance by any other party or parties to an agreement, (iii) any obligation of such Person, whether or not contingent,
(A) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (B) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (C) to purchase property, assets, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the
ability of the primary obligor to make payment of such primary obligation or (D) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof; provided, however, that the term
“Contingent Obligation” shall not include any product warranties extended in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary
obligation with respect to which such Contingent Obligation is made (or, if less, the maximum amount of such primary obligation for which such Person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if
not stated or determinable, the maximum reasonably anticipated liability with respect thereto (assuming such Person is required to perform thereunder), as determined by such Person in good faith. 
  
 “Current Value” has the meaning specified therefor in
Section 6.01(o). 
  
 “Default” means an
event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default. 
  
 “Disposition” means any transaction, or series of related transactions, pursuant to which any Person or any of its Subsidiaries sells,
assigns, transfers or otherwise disposes of any property or assets (whether now owned or hereafter acquired) to any other Person, in each case, whether or not the consideration therefor consists of cash, securities or other assets owned by the
acquiring Person, excluding any sales of Inventory in the ordinary course of business on ordinary business terms; provided that, for avoidance of doubt, Disposition shall not in any event mean or include the sale by the Borrower of any
of its securities including, without limitation, its Capital Stock or any Subordinated Debt. 
  

 6 

 “Dollar,” “Dollars” and the symbol “$” each means
lawful money of the United States of America. 
  
 “Drug
Contract” means a contract entered into by a Loan Party providing for the manufacture, storage or packaging by a third party of a pharmaceutical product that is sold by such Loan Party. 
  
 “Effective Date” means the date, on or before March 31,
2003, on which all of the conditions precedent set forth in Section 4.01 are first satisfied or waived. 
  
 “Elan” means Elan Pharma International Limited. 
  

“Elan Accrual Amount” means (a) as of March 31, 2003, $0, (b) as of April 30, 2003,  1/6th of the Elan Payment Amount, (c) as of May 31, 2003,  1/3 of the Elan Payment Amount, (d) as of June 30, 2003,  1/2 of the
Elan Payment Amount, (e) as of July 31, 2003,  2/3 of the Elan Payment Amount, (f) as of August 31, 2003,  5/6 of the Elan Payment Amount, and (g) as of September 30, 2003 and thereafter until the Borrower pays the Elan
Payment Amount in full, the Elan Payment Amount. 
  
 “Elan Payment Amount” means $6,900,000 or such other amount as has been agreed to by the Borrower and Elan. 
  
 “Elan Restructure” means the transactions contemplated by that certain Omnibus Amendment and Termination Agreement dated as of March 28,
2003, by and between Elan and the Borrower, including the transactions contemplated in all agreements, transactions and arrangements referenced therein or contemplated thereby. 
  
 “Employee Plan” means an employee benefit plan (other than a Multiemployer Plan) covered by Title IV of
ERISA and maintained (or that was maintained at any time during the six (6) calendar years preceding the date of any borrowing hereunder) for employees of any Loan Party or any of its ERISA Affiliates. 
  
 “Environmental Actions” means any complaint, summons,
citation, notice, directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter or other communication from any Governmental Authority involving violations of Environmental Laws or Releases of Hazardous
Materials (i) from any assets, properties or businesses of any Loan Party or any of its Subsidiaries or any predecessor in interest; (ii) from adjoining properties or businesses; or (iii) onto any facilities which received Hazardous Materials
generated by any Loan Party or any of its Subsidiaries or any predecessor in interest. 
  
 “Environmental Laws” means the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601, et seq.), the Hazardous Materials Transportation Act (49
U.S.C. § 1801, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901, et seq.), the Federal Clean Water Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. §
7401 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.) and the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.), as such laws may be amended or otherwise modified
from time to time, and any other present or future federal, state, local or foreign statute, ordinance, rule, regulation, order, judgment, decree, permit, license or other binding 
  

 7 

 
determination of any Governmental Authority imposing liability or establishing standards of conduct for protection of the environment or other government
restrictions relating to the protection of the environment or the release, emission, deposit, discharge, leaching, migration or spill of any Hazardous Materials into the environment. 
  
 “Environmental Liabilities and Costs” means all liabilities, monetary obligations, Remedial Actions,
losses, damages, punitive damages, consequential damages, treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts and consultants and costs of investigations and feasibility studies), fines,
penalties, sanctions and interest incurred as a result of any claim or demand by any Governmental Authority or any third party, and which relate to any environmental condition or a Release of Hazardous Materials from or onto (i) any property
currently or formerly owned by any Loan Party or any of its Subsidiaries or (ii) any facility which received Hazardous Materials generated by any Loan Party or any of its Subsidiaries. 
  
 “Environmental Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities
and Costs. 
  
 “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, and any successor statute of similar import, and regulations thereunder, in each case, as in effect from time to time. References to sections of ERISA shall be construed also to refer to any
successor sections. 
  
 “ERISA Affiliate” means,
with respect to any Person, any trade or business (whether or not incorporated) which is a member of a group of which such Person is a member and which would be deemed to be a “controlled group” within the meaning of Sections 414(b), (c),
(m) and (o) of the IRC. 
  
 “Event of Default”
means any of the events set forth in Section 8.01. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Existing Credit Facility” means the credit facility evidenced by that certain Amended and Restated Product Acquisition Financing
Agreement dated as of March 31, 2001 by and between the Existing Lender and the Borrower. 
  
 “Existing Lender” means Elan, in its capacity as lender under the Existing Credit Facility. 
  
 “Extraordinary Receipts” means any cash received by the Borrower or any of its Subsidiaries not in the ordinary course of business (and
not consisting of proceeds of Dispositions or Indebtedness), including, without limitation, (i) foreign, United States, state or local tax refunds, (ii) pension plan reversions, (iii) proceeds of insurance for the replacement or restoration of any
Collateral which is lost, damaged or destroyed, (iv) judgments, proceeds of settlements or other consideration of any kind in connection with any cause of action, (v) condemnation awards (and payments in lieu thereof), and (vi) indemnity payments;
provided, however, that, notwithstanding anything in this Agreement to the contrary, Extraordinary Receipts shall not mean or include (1) any amounts of cash or other property received by the Borrower in connection with the sale of its

  

 8 

 
securities, including, without limitation, its Capital Stock, (2) any amounts of purchase price adjustments, charge-backs, rebates or other similar refunds,
adjustments or credits received by Borrower in connection with a Permitted Acquisition, (3) any proceeds from any Subordinated Debt, (4) proceeds of insurance not arising from lost, damaged or destroyed Collateral, (5) amounts received by the
Borrower pursuant to any licensing, co-development, co-marketing or similar arrangements, or (6) proceeds of insurance for the replacement or restoration of lost, damaged or destroyed Collateral so long as (A) at the time of receipt thereof no
Default or Event of Default has occurred and is continuing and (B) the lost, damaged or destroyed Collateral is restored or replaced to its condition immediately prior to the loss, destruction or other event giving rise to the payment of such
insurance proceeds (or a contractual commitment has been entered into for such restoration or replacement) within 60 days after the occurrence of such event if such Collateral consists of Inventory and 90 days after the occurrence of such event if
such Collateral consists of Equipment. 
  
 “Federal Funds
Rate” means, for any period, a fluctuating interest rate per annum equal to, for each day during such period, the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such
transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it. 
  
 “Field Survey and Audit” means a field survey and audit of the Loan Parties and an appraisal of the Collateral performed by auditors,
examiners and/or appraisers selected by the Collateral Agent, at the sole cost and expense of the Borrower. 
  
 “Final Maturity Date” means the date which is 5 years after the Effective Date, or such earlier date on which the Term Loan shall become
due and payable in accordance with the terms of this Agreement and the other Loan Documents. 
  
 “Financial Statements” means (i) the audited consolidated balance sheet of the Borrower and its Subsidiaries as of December 31, 2002, and the related consolidated statement of operations,
shareholders’ equity and cash flows for the Fiscal Year then ended, and (ii) the unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of February 28, 2003, and the related consolidated statement of operations,
stockholders’ equity and cash flows for the 2 months then ended. 
  
 “Fiscal Year” means the fiscal year of the Borrower and its Subsidiaries ending on December 31 of each year. 
  
 “Fixed Charge Coverage Ratio” means, for any period of 12 consecutive months, the ratio of (i) the TTM EBITDA of the Borrower and its
Subsidiaries for such period, to (ii) the sum of (A) all principal of Indebtedness for borrowed money of the Borrower and its Subsidiaries scheduled to be paid during such period, plus (B) Consolidated Net Interest Expense for such period,
plus (C) federal, state and local income taxes paid or payable by the Borrower and its Subsidiaries during such period, plus (D) cash dividends or capital distributions (i.e., excluding the effects of any dividends payable in Capital
Stock of the Borrower) paid by the Borrower and its Subsidiaries during such period. In determining the Fixed Charge Coverage Ratio for a particular 
  

 9 

 
period (1) pro forma effect will be given to: (a) the incurrence, repayment or retirement of any Indebtedness for borrowed money by the Borrower and its
Subsidiaries since the first day of such period as if such Indebtedness was incurred, repaid or retired on the first day of such period and (b) the acquisition (whether by purchase, merger or otherwise) or disposition (whether by sale, merger or
otherwise) of any property or assets acquired or disposed of by the Borrower and its Subsidiaries since the first day of such period, as if such acquisition or disposition occurred on the first day of such period; (2) Consolidated Net Interest
Expense, income taxes and dividends or distributions shall be determined on the last day of the period based upon actual Consolidated Net Interest Expense, income taxes and dividends or distributions for the 12 months then ended on such day; (3) the
amount of Indebtedness deemed to have been scheduled to be paid during such period pursuant to clause (ii)(A) above shall be reduced (solely for purposes of the calculation of Fixed Charge Coverage Ratio) by any amount of prepayment made on the
total outstanding balance of the Obligations hereunder to the extent such prepayment is made out of the proceeds of a sale by the Borrower of its Capital Stock even though such prepayment may be applied to the principal amount of such Indebtedness
in inverse order of maturity; and (4) Consolidated Net Interest Expense shall not include the amount of fees, costs and expenses resulting from the consummation of the transactions contemplated to occur on the Effective Date by this Agreement.

  
 “GAAP” means generally accepted accounting
principles in effect from time to time in the United States, applied on a consistent basis, provided that for the purpose of Section 6.03 hereof and the definitions used therein, “GAAP” shall mean generally accepted accounting
principles in effect on the date hereof and consistent with those used in the preparation of the Financial Statements, provided, further, that if there occurs after the date of this Agreement any change in GAAP that affects in any respect the
calculation of any covenant contained in Section 6.03 hereof, the Collateral Agent and the Borrower shall negotiate in good faith amendments to the provisions of this Agreement that relate to the calculation of such covenant with the intent
of having the respective positions of the Lenders and the Borrower after such change in GAAP conform as nearly as possible to their respective positions as of the date of this Agreement and, until any such amendments have been agreed upon, the
covenants in Section 6.03 hereof shall be calculated as if no such change in GAAP has occurred. 
  
 “Governmental Authority” means any nation or government, any Federal, state, city, town, municipality, county, local or other political
subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government. 
  
 “Guarantor” means each Person
which guarantees, pursuant to Section 6.01(b) or otherwise, all or any part of the Obligations. 
  
 “Guaranty” means each guaranty substantially in the form of Exhibit G-1, made by any Guarantor in favor of the Collateral Agent
for the benefit of the Lenders pursuant to Section 6.01(b) or otherwise. 
  
 “Hazardous Materials” means (a) any element, compound or chemical that is defined, listed or otherwise classified as a contaminant, pollutant, toxic pollutant, toxic or hazardous substance, extremely
hazardous substance or chemical, hazardous waste, special waste, 
  

 10 

 
or solid waste under Environmental Laws or that is likely to cause immediately, or at some future time, harm to or have an adverse effect on, the environment
or risk to human health or safety, including, without limitation, any pollutant, contaminant, waste, hazardous waste, toxic substance or dangerous good which is defined or identified in any Environmental Law and which is present in the environment
in such quantity or state that it contravenes any Environmental Law; (b) petroleum and its refined products; (c) polychlorinated biphenyls; (d) any substance exhibiting a hazardous waste characteristic, including, without limitation, corrosivity,
ignitability, toxicity or reactivity as well as any radioactive or explosive materials; and (e) any raw materials, building components (including, without limitation, asbestos-containing materials) and manufactured products containing hazardous
substances listed or classified as such under Environmental Laws. 
  
 “Hedging Agreement” means any interest rate, foreign currency, commodity or equity swap, collar, cap, floor or forward rate agreement, or other agreement or arrangement designed to protect against fluctuations in interest
rates or currency, commodity or equity values (including, without limitation, any option with respect to any of the foregoing and any combination of the foregoing agreements or arrangements), and any confirmation executed in connection with any such
agreement or arrangement. 
  
 “Highest Lawful
Rate” means, with respect to any Agent or any Lender, the maximum non-usurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the Obligations under laws applicable
to such Agent or such Lender which are currently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum non-usurious interest rate than applicable laws now allow.

  
 “Immaterial Subsidiary” as at any time the
same is to be determined, any direct or indirect Subsidiary of the Borrower which has total assets (measured according to GAAP at such time) no greater than five percent (5%) of the total assets of the Borrower (on a consolidated basis according to
GAAP at the same time) and has total revenue (measured according to GAAP for any period ending at such time) of less than five percent (5%) of the total revenue of the Borrower (on a consolidated basis according to GAAP for the same period).

  
 “Indebtedness” means, with respect to any
Person, without duplication, (i) all indebtedness of such Person for borrowed money; (ii) all obligations of such Person for the deferred purchase price of property or services (other than trade payables or other accounts payable incurred in the
ordinary course of such Person’s business and not outstanding for more than 90 days after the date such payable was created); (iii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments or upon which
interest payments are customarily made; (iv) all reimbursement, payment or other obligations and liabilities of such Person created or arising under any conditional sales or other title retention agreement with respect to property used and/or
acquired by such Person, even though the rights and remedies of the lessor, seller and/or lender thereunder may be limited to repossession or sale of such property; (v) all Capitalized Lease Obligations of such Person; (vi) all obligations and
liabilities, contingent or otherwise, of such Person, in respect of letters of credit, acceptances and similar facilities; (vii) all obligations and liabilities, calculated on a basis satisfactory to the Collateral Agent and in accordance with
accepted practice, of such Person under Hedging Agreements; (viii) all Contingent Obligations; (ix) liabilities incurred under Title IV of ERISA with respect to any plan 
  

 11 

 
(other than a Multiemployer Plan) covered by Title IV of ERISA and maintained for employees of such Person or any of its ERISA Affiliates; (x) withdrawal
liability incurred under ERISA by such Person or any of its ERISA Affiliates with respect to any Multiemployer Plan; (xi) all other items which, in accordance with GAAP, would be included as liabilities on the liability side of the balance sheet of
such Person; and (xii) all obligations referred to in clauses (i) through (xi) of this definition of another Person secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) a Lien
upon property owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness. The Indebtedness of any Person shall include the Indebtedness of any partnership of or joint venture in which such
Person is a general partner or a joint venturer. Notwithstanding anything in this Agreement to the contrary, with respect to the Borrower and its Subsidiaries, Indebtedness shall not mean or include (1) amounts owing by the Borrower to Elan in
connection with the Elan Restructuring provided such amount is repaid in full on or before March 31, 2004, (2) any amount of deferred taxes, or (3) Milestone Payment Obligations. 
  
 “Indemnified Matters” has the meaning specified therefor in Section 10.15. 
  
 “Indemnitees” has the meaning specified therefor in
Section 10.15. 
  
 “Insolvency Proceeding”
means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any other bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, or extensions
generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief. 
  
 “Intellectual Property Rights” has the meaning specified in Section 5.01(w). 
  
 “Inventory” means all of each of the Loan Parties’ now
owned and/or hereafter acquired right, title, and interest with respect to inventory as defined in the Code. 
  
 “IRC” means the Internal Revenue Code of 1986, as amended (or any successor statute thereto) and the regulations thereunder. 

 
 “Lease” means any lease of real property to which any
Loan Party or any of its Subsidiaries is a party as lessor or lessee. 
  
 “Lender” has the meaning specified therefor in the preamble hereto. 
  
 “Leverage Ratio” means, for any period, the ratio of Consolidated Funded Indebtedness to TTM EBITDA of the Borrower and its Subsidiaries. In determining the Leverage Ratio for a particular period (1)
pro forma effect will be given to: (a) the incurrence, repayment or retirement of any Indebtedness by the Borrower and its Subsidiaries since the first day of such period as if such Indebtedness was incurred, repaid or retired on the first day of
such period and (b) the acquisition (whether by purchase, merger or otherwise) or disposition (whether by sale, merger or otherwise) of any property or assets acquired or disposed of by the Borrower and its Subsidiaries since the first day of such
period, as if such acquisition or disposition occurred on the first day of such period. 
  

 12 

 “Lien” means any mortgage, deed of trust, pledge, lien (statutory or otherwise),
security interest, charge or other encumbrance or security or preferential arrangement of any nature, including, without limitation, any conditional sale or title retention arrangement, any Capitalized Lease and any assignment, deposit arrangement
or financing lease intended as, or having the effect of, security. 
  
 “Loan Account” means an account maintained hereunder by the Administrative Agent on its books of account at the Payment Office, and with respect to the Borrower, in which the Borrower will be charged with the Term Loan and
all other Obligations incurred by the Borrower. 
  
 “Loan
Document” means this Agreement, the Post-Closing Matters Agreement, any Guaranty, any Security Agreement, any Patent Security Agreement, any Trademark Security Agreement, any Pledge Agreement, any Mortgage, any UCC Filing Authorization
Letter, and any other agreement, instrument, and other document executed and delivered pursuant hereto or thereto or otherwise evidencing or securing the Term Loan or any other Obligation. 
  
 “Loan Party” means the Borrower and/or any Guarantor.

  
 “Loan Servicing Fee” has the meaning
specified therefor in Section 2.06(b). 
  
 “Material Adverse Effect” means a material adverse effect on any of (i) the operations, business, assets, properties or condition (financial or otherwise) of the Borrower or the Loan Parties taken as a whole, (ii) the
ability of any Loan Party (other than an Immaterial Subsidiary) to perform any of its obligations under any Loan Document to which it is a party, (iii) the legality, validity or enforceability of this Agreement or any other Loan Document, (iv) the
rights and remedies of any Agent or any Lender under any Loan Document, or (v) the validity, perfection or priority of a Lien in favor of the Collateral Agent for the benefit of the Lenders on any of the Collateral; provided, however,
that the failure of any security interest to be perfected which arises solely out of the action or inaction of any Agent or Lender shall not be deemed to be a Material Adverse Effect, and the commencement, announcement or threat of any act of war,
terrorism or other belligerence involving the United States, the United Nations or any other sovereign or political authority, in and of itself, shall not be deemed a Material Adverse Effect. 
  
 “Material Contract” means, with respect to any Person, (i)
each contract or agreement to which such Person or any of its Subsidiaries is a party involving aggregate consideration payable to or by such Person or such Subsidiary of $250,000 or more (other than purchase orders in the ordinary course of the
business of such Person or such Subsidiary and other than contracts that by their terms may be terminated by such Person or Subsidiary in the ordinary course of its business upon less than 60 days notice without penalty or premium) and (ii) all
other contracts or agreements material to the business, operations, condition (financial or otherwise), performance, prospects or properties of such Person or such Subsidiary and, with respect to the Borrower, shall include all Drug Contracts.

  
 “Milestone Accrual Amount” means, with
respect to any Milestone Payment Obligation that is due in 12 months or less, an amount calculated as of the end of each month equal to the product of (a) the Milestone Liability Accrual Increment with respect to such Milestone 
  

 13 

 
Payment Obligation times (b) the difference of (i) 12 minus (ii) the number of months remaining until such Milestone Payment Obligation is due.

  
 “Milestone Liability Accrual Increment” means
an amount equal to  1/12 of the amount of any Milestone Payment Obligation. 
  
 “Milestone Payment Obligation” means any future payment
obligation of the Borrower or any of its Subsidiaries incurred as part of the consideration for the acquisition of any interest in a pharmaceutical product or business; provided that the foregoing shall not be deemed to include any royalty payment
or license fee the payment of which is included in the calculation of Consolidated EBITDA. If any such obligation is not stated in an absolute Dollar amount, the Borrower shall make a good faith estimate of the Dollar amount of such obligation. If
any such obligation is not scheduled to be due as of a certain date, the Borrower shall make a good faith estimate of the date on which such obligation will be payable. An existing Milestone Payment Obligation shall cease to exist if (a) the payee
with respect to such obligation grants a waiver or otherwise agrees to relieve the Borrower or such Subsidiary of such obligation, or (b) the Borrower or such Subsidiary provides a written statement to the Administrative Agent stating that it has
elected not to satisfy such obligation unless it receives proceeds from the sale of its Capital Stock or Subordinated Debt sufficient to pay in full the amount of such obligation. 
  
 “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto. 
  
 “Mortgage” means a mortgage, deed of trust or deed to secure
debt, in form and substance satisfactory to the Collateral Agent, made by a Loan Party in favor of the Collateral Agent for the benefit of the Lenders, securing the Obligations and delivered to the Collateral Agent pursuant to the provisions hereof
or otherwise. 
  
 “Multiemployer Plan” means a
“multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which any Loan Party or any of its ERISA Affiliates has contributed to, or has been obligated to contribute, at any time during the preceding six (6) years. 
  
 “Net Cash Proceeds” means, (i) with respect to any
Disposition by any Person or any of its Subsidiaries, the amount of cash received (directly or indirectly) from time to time (whether as initial consideration or through the payment or disposition of deferred consideration) by or on behalf of such
Person or such Subsidiary, in connection therewith after deducting therefrom only (A) the amount of any Indebtedness secured by any Lien permitted by Section 6.02(a) on any asset (other than Indebtedness assumed by the purchaser of such
asset) which is required to be, and is, repaid in connection with such Disposition (other than Indebtedness under this Agreement), (B) reasonable expenses related thereto incurred by such Person or such Subsidiary in connection therewith, (C)
transfer taxes paid to any taxing authorities by such Person or such Subsidiary in connection therewith, and (D) net income taxes to be paid in connection with such Disposition (after taking into account any tax credits or deductions and any tax
sharing arrangements) and (ii) with respect to the issuance or incurrence of any Indebtedness by any Person or any of its Subsidiaries, or the sale or issuance by any Person or any of its Subsidiaries of any shares of its Capital Stock, the
aggregate amount of cash received (directly or indirectly) from time to time (whether as initial consideration or through the payment or disposition of deferred consideration) by or on behalf of such Person or such Subsidiary in connection
therewith, after 
  

 14 

 
deducting therefrom only (A) reasonable expenses related thereto incurred by such Person or such Subsidiary in connection therewith, (B) transfer taxes paid
by such Person or such Subsidiary in connection therewith and (C) net income taxes to be paid in connection therewith (after taking into account any tax credits or deductions and any tax sharing arrangements); in each case of clause (i) and (ii) to
the extent, but only to the extent, that the amounts so deducted are (x) actually paid to a Person that, except in the case of reasonable out-of-pocket expenses, is not an Affiliate of such Person or any of its Subsidiaries and (y) properly
attributable to such transaction or to the asset that is the subject thereof. 
  
 “Notice of Borrowing” has the meaning specified therefor in Section 2.02(a). 
  
 “Obligations” means all present and future indebtedness, obligations, and liabilities of each Loan Party to the Agents and the Lenders,
or any of them, under the Loan Documents, whether or not the right of payment in respect of such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured, unsecured, and
whether or not such claim is discharged, stayed or otherwise affected by any proceeding referred to in Section 8.01. Without limiting the generality of the foregoing, the Obligations of each Loan Party under the Loan Documents include (a) the
obligation (irrespective of whether a claim therefor is allowed in any Insolvency Proceeding) to pay principal, interest, charges, expenses, fees, attorneys’ fees and disbursements, indemnities and other amounts payable by such Person under the
Loan Documents, and (b) the obligation of such Person to reimburse any amount in respect of any of the foregoing that any Agent or any Lender (in its sole discretion) may elect to pay or advance on behalf of such Person. 
  
 “Operating Lease Obligations” means all obligations for the
payment of rent for any real or personal property under leases or agreements to lease, other than Capitalized Lease Obligations. 
  
 “Other Taxes” has the meaning specified therefor in Section 2.08(a)(iii). 
  
 “Participant Register” has the meaning specified therefor in
Section 10.07(b)(v). 
  
 “Patent Security
Agreement” means a Patent Security Agreement made by a Loan Party in favor of the Collateral Agent for the benefit of the Lenders, substantially in the form of Exhibit P-1 securing the Obligations and delivered to the Collateral Agent.

  
 “Payment Office” means the Administrative
Agent’s office located at 70 Federal Street, 7th Floor, Boston, Massachusetts 02110-1906, or at such other office or offices of the Administrative Agent as may be designated in writing from time to time by the Administrative Agent to the
Collateral Agent and the Borrower. 
  
 “PBGC”
means the Pension Benefit Guaranty Corporation or any successor thereto. 
  
 “Permitted Acquisition” means (a) any transaction or series of transactions in which the Borrower, directly or indirectly through one or more intermediaries, acquires rights to a pharmaceutical
product or products (including product candidates that are not yet approved by the Food and Drug Administration) or a controlling interest in a going business engaged in developing, marketing or selling a pharmaceutical product or products affecting
the central nervous system 
  

 15 

 
whether through the acquisition of such assets directly from the selling Person (including by way of a licensing or co-marketing arrangement), or the
acquisition of the selling Person’s equity interests (via merger or otherwise) or (b) any investment made by the Borrower in any Person as full or partial consideration for any licensing, manufacturing, distribution or technology transfer or
development arrangements relating to a pharmaceutical product affecting the central nervous system so long as: (i) no Default or Event of Default shall have occurred and be continuing or would result from such acquisition or investment; (ii) the
business or product being acquired shall be substantially similar, related or incidental to the business activities engaged in or products sold by the Borrower as of the Effective Date; (iii) the Borrower and its Subsidiaries shall be in compliance
with the requirements set forth in Section 6.01(b) in respect of any new Subsidiary created or acquired in furtherance of such acquisition; and (iv) the Collateral Agent shall be granted a first priority, perfected Lien on any assets acquired
by the Borrower through such acquisition or investment. 
  
 “Permitted Dispositions” means (a) sales or other dispositions of Inventory to buyers in the ordinary course of business, (b) sales or other dispositions of obsolete or worn-out equipment in the ordinary course of business,
(c) sales or other dispositions of other property or assets for cash in an aggregate amount not less than the fair market value of such property or assets, provided that the Net Cash Proceeds of such Dispositions in the case of clauses (b)
and (c), do not exceed $500,000 in the aggregate in any twelve-month period, (d) the use or transfer of money or Cash Equivalents by the Borrower and its Subsidiaries in a manner that is not prohibited by the terms of this Agreement or the other
Loan Documents, (e) the licensing by the Borrower and its Subsidiaries, on a non-exclusive basis (or on an exclusive basis solely with respect to territories comprising a country or continent outside of North America), of patents, trademarks,
copyrights, and other intellectual property rights in the ordinary course of business as conducted on the Effective Date, and (f) the granting of leases or subleases to other Persons not materially interfering with the conduct of business of any of
the Loan Parties. 
  
 “Permitted Holders” means
Domain Partners V, L.P. and New Enterprise Associates 10, Limited Partnership, FFC Partners, L.P., Michael T. Borer, Cam L. Garner, John R. Cook, Abbott Investment Co., LLC, George M. Stuart, James L. Fares, Montagu Newhall Global Partners, L.P.,
David F. Hale, Richard Jaffe, R&R Xcel LLC, Thomas D. Erlandson, and each of their respective Affiliates, directors, officers, general partners, limited partners or members. 
  
 “Permitted Indebtedness” means: 
  
 (a) any Indebtedness owing to any Agent and any Lender under this Agreement and the other Loan Documents; 
  
 (b) Indebtedness listed on Schedule 6.02(b), and the extension of
maturity, refinancing or modification of the terms thereof; provided, however, that (i) such extension, refinancing or modification is pursuant to terms that are not less favorable to the Loan Parties and the Lenders than the terms of
the Indebtedness being extended, refinanced or modified and (ii) after giving effect to such extension, refinancing or modification, the amount of such Indebtedness is not greater than the amount of Indebtedness outstanding immediately prior to such
extension, refinancing or modification plus accrued interest thereon and the fees incurred in connection with the extension, refinancing, or modification; 
  

 16 

 (c) Indebtedness evidenced by Capitalized Lease Obligations entered into in order to finance Capital
Expenditures made by the Loan Parties in accordance with the provisions of Section 6.02(g), which Indebtedness, when aggregated with the principal amount of all Indebtedness incurred under this clause (c) and clause (d) of this definition,
does not exceed $500,000 at any time outstanding; 
  
 (d) purchase
money Indebtedness incurred to enable a Loan Party to acquire equipment in the ordinary course of its business, which Indebtedness, when aggregated with the principal amount of all Indebtedness incurred under this clause (d) and clause (c) of this
definition, does not exceed $500,000 at any time outstanding; 
  
 (e) Indebtedness permitted under Section 6.02(e); 
  
 (f) Indebtedness of the Borrower or any of its Subsidiaries under any Hedging Agreement so long as such Hedging Agreements are used solely as a part of its normal business operations as a risk management strategy and/or hedge against
changes resulting from market operations and not as a means to speculate for investment purposes on trends and shifts in financial or commodities markets; and 
  

(g) Subordinated Debt. 
  
 “Permitted Investments” means (i) marketable direct obligations issued or unconditionally guaranteed by the United States Government or
issued by any agency or instrumentality thereof and backed by the full faith and credit of the United States, in each case, maturing within six months from the date of acquisition thereof; (ii) commercial paper, maturing not more than 270 days after
the date of issue rated P-1 by Moody’s or A-1 by Standard & Poor’s; (iii) certificates of deposit maturing not more than 270 days after the date of issue, issued by commercial banking institutions and money market or demand deposit
accounts maintained at commercial banking institutions, each of which is a member of the Federal Reserve System and has a combined capital and surplus and undivided profits of not less than $500,000,000; (iv) repurchase agreements having maturities
of not more than 90 days from the date of acquisition which are entered into with major money center banks included in the commercial banking institutions described in clause (iii) above and which are secured by readily marketable direct obligations
of the United States Government or any agency thereof; (v) money market accounts maintained with mutual funds having assets in excess of $2,500,000,000; and (vi) tax exempt securities rated A or better by Moody’s or A+ or better by Standard
& Poor’s. 
  
 “Permitted Liens” means:

  
 (a) Liens securing the Obligations; 
  
 (b) Liens for taxes, assessments and governmental charges the payment of
which is not required under Section 6.01(c); 
  
 (c) Liens
imposed by law, such as carriers’, warehousemen’s, mechanics’, materialmen’s and other similar Liens arising (provided they are subordinate to the Collateral Agent’s Liens on Collateral) in the ordinary course of business
and securing obligations (other than Indebtedness for borrowed money) that are not overdue by more than 30 days or are being 
  

 17 

 
contested in good faith and by appropriate proceedings promptly initiated and diligently conducted, and a reserve or other appropriate provision, if any, as
shall be required by GAAP shall have been made therefor; 
  
 (d)
Liens described on Schedule 6.02(a) but not the extension of coverage thereof to other property or assets; 
  
 (e) Liens arising under Capital Leases or securing purchase money Indebtedness permitted under the definition of Permitted Indebtedness as the same may be
extended, refinanced or modified pursuant to the terms of the definition of Permitted Indebtedness; provided, however, that (A) no such Lien shall extend to or cover any other property of any Loan Party or any of its Subsidiaries, and
(B) the principal amount of the Indebtedness secured by any such Lien shall not exceed the lesser of 80% of the fair market value or the cost of the property so held or acquired; 
  
 (f) deposits and pledges of cash securing (i) obligations incurred in respect of workers’ compensation, unemployment
insurance or other forms of governmental insurance or benefits, (ii) the performance of bids, tenders, leases, contracts (other than for the payment of money) and statutory obligations or (iii) obligations on surety or appeal bonds, but only to the
extent such deposits or pledges are incurred or otherwise arise in the ordinary course of business and secure obligations not past due; 
  
 (g) easements, zoning restrictions and similar encumbrances on real property and minor irregularities in the title thereto that do not (i) secure
obligations for the payment of money or (ii) materially impair the value of such property or its use by any Loan Party or any of its Subsidiaries in the normal conduct of such Person’s business; 
  
 (h) leases or subleases granted to other Persons not materially interfering
with the conduct of the business of the Borrower or any of its Subsidiaries; 
  
 (i) precautionary UCC financing statement filings regarding operating leases; 
  
 (j) Liens arising out of the existence of judgments or awards not giving rise to an Event of Default; 
  
 (k) statutory and common law landlords’ liens under leases to which the
Borrower or any of its Subsidiaries is a party; and 
  
 (l) Liens
securing any Indebtedness which replaces in whole or in part any Permitted Indebtedness permitted to be incurred hereunder; provided, that such Liens do not extend to any property or assets other than the property or assets that served as
collateral for the refinanced Indebtedness. 
  
 “Permitted
Preferred Stock” means and refers to any Preferred Stock issued by the Borrower that is not Prohibited Preferred Stock. 
  
 “Permitted Restricted Payments” means (a) any payments made to Elan as part of the Elan Restructure, (b) repurchases of stock from any of
the Borrower’s employees, directors or 
  

 18 

 
consultants upon the termination of service of such persons or repurchases of shares in connection with the Borrower’s stock option, restricted stock or
compensation plans not to exceed $200,000 in the aggregate during any Fiscal Year, (c) the payment to directors of any reimbursable costs or expenses incurred thereby in attending the Borrower’s board of directors’ meetings not to exceed
$50,000 in the aggregate during any Fiscal Year, and (d) consulting fees in the ordinary course of business. 
  
 “Person” means an individual, corporation, limited liability company, partnership, association, joint-stock company, trust,
unincorporated organization, joint venture or other enterprise or entity or Governmental Authority. 
  
 “Pledge Agreement” means a Pledge and Security Agreement made by a Loan Party in favor of the Collateral Agent for the benefit of the
Lenders, substantially in the form of Exhibit P-2, securing the Obligations and delivered to the Collateral Agent. 
  
 “Post-Closing Matters Agreement” means that certain Post-Closing Matters Agreement between the Borrower and the Agents, in form and
substance satisfactory to the Agents. 
  
 “Post-Default
Rate” means a rate of interest per annum equal to the rate of interest otherwise in effect from time to time pursuant to the terms of this Agreement plus 3.0%, or, if a rate of interest is not otherwise in effect, interest at the highest
rate specified herein for the Term Loan prior to the Event of Default plus 3.0%. 
  
 “Preferred Stock” means, as applied to the Capital Stock of any Person, the Capital Stock of any class or classes (however designated) that is preferred with respect to the payment of dividends, or as
to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Capital Stock of any other class of such Person. 
  
 “Premises” shall have the meaning specified in Section 5.01(r). 
  
 “Prohibited Preferred Stock” means any Preferred Stock that
by its terms is mandatorily redeemable or subject to any other payment obligation (including any obligation to pay dividends, other than dividends of shares of Preferred Stock or common stock) on or before a date that is less than 1 year after the
Final Maturity Date, or, on or before a date that is less than 1 year after the Final Maturity Date, is redeemable at the option of the holder thereof for cash or assets or securities (other than distributions in kind of shares of Preferred Stock or
common stock). Notwithstanding the foregoing, in no event shall the Borrower’s Preferred Stock authorized in its Certificate of Incorporation in effect as of the Effective Date (or contemplated to be authorized in the future under, and
specifically described in, the Borrower’s Certificate of Incorporation in effect as of the Effective Date) be deemed to be Prohibited Preferred Stock. 
  
 “property” means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or
intangible. 
  
 “Pro Rata Share” means, for any
Lender at any time the same is to be determined, the percentage obtained by dividing (i) a Lender’s Term Loan Commitment, by (ii) the Total Term Loan Commitment, provided that if the Total Term Loan Commitment has been reduced to zero,

  

 19 

 
the numerator shall be the aggregate unpaid principal amount of such Lender’s portion of the Term Loan then outstanding and the denominator shall be the
aggregate unpaid principal amount of the Term Loan then outstanding. 
  
 “Qualified Cash” means, as of any date of determination, the amount of unrestricted Cash and Cash Equivalents of the Borrower and its Subsidiaries that is subject to a control agreement in favor of Collateral Agent and that
is on deposit with banks, or in securities accounts with securities intermediaries, or any combination thereof. 
  
 “Reference Bank” means JPMorgan Chase Bank, its successors or any other commercial bank designated by the Administrative Agent to the
Borrower from time to time. 
  
 “Reference Rate”
means the rate of interest publicly announced by the Reference Bank in New York, New York from time to time as its reference rate, base rate or prime rate. The reference rate, base rate or prime rate is determined from time to time by the Reference
Bank as a means of pricing some loans to its borrowers and neither is tied to any external rate of interest or index nor necessarily reflects the lowest rate of interest actually charged by the Reference Bank to any particular class or category of
customers. Each change in the Reference Rate shall be effective from and including the date such change is publicly announced as being effective. 
  
 “Regiment” has the meaning specified therefor in the preamble hereto. 
  
 “Register” has the meaning specified therefor in Section 10.07(b)(ii). 
  
 “Registered Loan” has the meaning specified therefore in
Section 10.07(b)(ii). 
  
 “Regulation T”,
“Regulation U” and “Regulation X” mean, respectively, Regulations T, U and X of the Board or any successor, as the same may be amended or supplemented from time to time. 
  
 “Release” means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, seeping, migrating, dumping or disposing of any Hazardous Material (including the abandonment or discarding of barrels, containers and other closed receptacles containing any Hazardous
Material) into the indoor or outdoor environment, including, without limitation, the movement of Hazardous Materials through or in the ambient air, soil, surface or ground water, or property. 
  
 “Remedial Action” means all actions taken to (i) clean up,
remove, remediate, contain, treat, monitor, assess, evaluate or in any other way address Hazardous Materials in the indoor or outdoor environment; (ii) prevent or minimize a Release or threatened Release of Hazardous Materials so they do not migrate
or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment; (iii) perform pre-remedial studies and investigations and post-remedial operation and maintenance activities; or (iv) any other actions authorized by
42 U.S.C. § 9601. 
  
 “Reportable Event”
means an event described in Section 4043 of ERISA (other than an event not subject to the provision for 30-day notice to the PBGC under the regulations promulgated under such Section). 
  

 20 

 “Required Lenders” means Lenders whose Pro Rata Shares of the Term Loan aggregate at
least 51%. 
  
 “SEC” means the Securities and
Exchange Commission or any other similar or successor agency of the Federal government administering the Securities Act. 
  
 “Securities Act” means the Securities Act of 1933, as amended, or any similar Federal statute, and the rules and regulations of the SEC
thereunder, all as the same shall be in effect from time to time. 
  
 “Securitization” has the meaning specified therefor in Section 2.07. 
  
 “Security Agreement” means a Security Agreement made by a Loan Party in favor of the Collateral Agent for the benefit of the Lenders,
substantially in the form of Exhibit S-1, securing the Obligations and delivered to the Collateral Agent. 
  
 “Solvent” means, with respect to any Person on a particular date, that on such date (i) the fair value of the property of such Person is
not less than the total amount of the liabilities of such Person, (ii) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its existing debts
as they become absolute and matured, (iii) such Person is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business, (iv) such Person does
not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature, and (v) such Person is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which such Person’s property would constitute unreasonably small capital. 
  
 “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. and any
successor thereto. 
  
 “Subordinated Debt” means
Indebtedness of the Borrower which is on terms and conditions (including, without limitation, payment terms, interest rates, covenants, remedies, defaults and other material terms) satisfactory to the Collateral Agent and the Required Lenders (which
approval shall not be unreasonably withheld) and which has been expressly subordinated in right of payment to all Indebtedness of the Borrower, as applicable, under the Loan Documents by the execution and delivery of a subordination agreement, in
form and substance satisfactory to the Collateral Agent and the Required Lenders. 
  
 “Subsidiary” means, with respect to any Person at any date, any corporation, limited or general partnership, limited liability company, trust, estate, association, joint venture or other business
entity (i) the accounts of which would be consolidated with those of such Person in such Person’s consolidated financial statements if such financial statements were prepared in accordance with GAAP or (ii) of which more than 50% of (A) the
outstanding Capital Stock having (in the absence of contingencies) ordinary voting power to elect a majority of the board of directors or other managing body of such Person, (B) in the case of a partnership or limited liability company, the interest
in the capital or profits of such partnership or limited liability company or (C) in the case of a trust, estate, association, joint venture or other entity, the beneficial interest in 
  

 21 

 
such trust, estate, association or other entity business is, at the time of determination, owned or controlled directly or indirectly through one or more
intermediaries, by such Person. 
  
 “Taxes” has
the meaning specified therefor in Section 2.08(a). 
  
 “Term Loan” means, collectively, the loans made by the Lenders to the Borrower on the Effective Date pursuant to Section 2.01(a). 
  
 “Term Loan Commitment” means, with respect to each Lender, the commitment of such Lender to make its
portion of the Term Loan to the Borrower in the amount set forth in Schedule 1.01(A) hereto, as the same may be terminated or reduced from time to time in accordance with the terms of this Agreement. 
  
 “Term Loan Obligations” means any Obligations with respect
to the Term Loan (including without limitation, the principal thereof, the interest thereon, and the fees and expenses specifically related thereto). 
  
 “Termination Event” means (i) a Reportable Event with respect to any Employee Plan, (ii) any event that causes any Loan Party or any of
its ERISA Affiliates to incur liability under Section 409, 502(i), 502(1), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 4971 or 4975 of the IRC, (iii) the filing of a notice of intent to terminate an Employee Plan or the
treatment of an Employee Plan amendment as a termination under Section 4041 of ERISA, (iv) the institution of proceedings by the PBGC to terminate an Employee Plan, or (v) any other event or condition which might constitute grounds under Section
4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Employee Plan. 
  
 “Title Insurance Policy” means a mortgagee’s loan policy, in form and substance satisfactory to the Collateral Agent, together with
all endorsements made from time to time thereto, issued by or on behalf of a title insurance company satisfactory to the Collateral Agent, insuring the Lien created by a Mortgage in an amount and on terms satisfactory to the Collateral Agent,
delivered to the Collateral Agent. 
  
 “Total Term Loan
Commitment” means $62,000,000, which amount is the sum of the amounts of the Lenders’ Term Loan Commitments. 
  
 “Trademark Security Agreement” means a Trademark Security Agreement made by a Loan Party in favor of the Collateral Agent for the benefit
of the Lenders, substantially in the form of Exhibit T-1, securing the Obligations and delivered to the Collateral Agent. 
  
 “TTM EBITDA” means, as of any date of determination and with respect to a Person, the Consolidated EBITDA of such Person and its
Subsidiaries for the 12 month period most recently ended. 
  
 “UCC Filing Authorization Letter” means a letter duly executed by the Borrower authorizing the Collateral Agent to file appropriate financing statements on Form UCC-l without the signature of the Borrower in such office or
offices as may be necessary or, in the opinion of the Collateral Agent, desirable to perfect the security interests purported to be created by each Security Agreement. 
  

 22 

 “WARN” means the Worker Adjustment and Retraining Notification Act. 
  
 Section 1.02 Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise,
(a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed
to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and contract rights. References in this Agreement to “determination” by any Agent include good faith estimates by such Agent (in the case of quantitative
determinations) and good faith beliefs by such Agent (in the case of qualitative determinations). 
  
 Section 1.03 Accounting and Other Terms. Unless otherwise expressly provided herein, each accounting term used herein shall have the meaning given
it under GAAP. All terms used in this Agreement which are defined in Article 8 or Article 9 of the Code as in effect from time to time in the State of New York and which are not otherwise defined herein shall have the same meanings herein as set
forth therein. 
  
 Section 1.04 Time References. Unless
otherwise indicated herein, all references to time of day refer to Eastern Standard Time or Eastern daylight saving time, as in effect in New York City on such day. For purposes of the computation of a period of time from a specified date to a later
specified date, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding”; provided, however, that with respect to a computation of fees or
interest payable to any Agent or any Lender, such period shall in any event consist of at least one full day. 
  
 ARTICLE II 
  
 THE TERM LOAN 
  
 Section 2.01 Term Loan
Commitments. (a) Subject to the terms and conditions and relying upon the representations and warranties herein set forth, each Lender severally agrees to make its portion of the Term Loan to the Borrower on the Effective Date, in an aggregate
principal amount equal to the amount of such Lender’s Term Loan Commitment. 
  

 23 

 (b) Notwithstanding the foregoing, the aggregate principal amount of the Term Loan made on the Effective
Date shall not exceed the Total Term Loan Commitment. Any principal amount of the Term Loan which is repaid or prepaid may not be reborrowed. 
  
 Section 2.02 Making the Term Loan. (a) The Borrower shall give the Administrative Agent a notice in writing, in substantially the form of
Exhibit 2.02 hereto (a “Notice of Borrowing”) not later than 12:00 noon (New York City time) on the date which is 1 Business Day prior to the Effective Date (or such shorter period as the Administrative Agent is willing to
accommodate). Such Notice of Borrowing shall be irrevocable and shall specify (i) the principal amount of the Term Loan, and (ii) the proposed borrowing date, which must be the Effective Date. The Administrative Agent and the Lenders may act without
liability upon the basis of such Notice of Borrowing believed in good faith by the Administrative Agent to be from the Borrower (or from any Authorized Officer thereof designated in writing purportedly from the Borrower to the Administrative Agent).
The Administrative Agent and the Lenders shall have no duty to verify the authenticity of the signature appearing on the Notice of Borrowing. 
  
 (b) The Notice of Borrowing pursuant to this Section 2.02 shall be irrevocable and the Borrower shall be bound to borrow the Term Loan in
accordance therewith. 
  
 (c) The Term Loan shall be made by the
Lenders simultaneously and proportionately to their Pro Rata Shares of the Total Term Loan Commitment, it being understood that no Lender shall be responsible for any default by any other Lender in that other Lender’s obligations to make its
portion of the Term Loan, nor shall the Term Loan Commitment of any Lender be increased or decreased as a result of the default by any other Lender in that other Lender’s obligation to make its portion of the Term Loan, and each Lender shall be
obligated to make its portion of the Term Loan required to be made by it by the terms of this Agreement regardless of the failure by any other Lender. 
  
 Section 2.03 Repayment of the Term Loan; Evidence of Debt. (a) The outstanding principal of the Term Loan shall be repayable in 15 consecutive
quarterly installments, on the last day of each June, September, December and March, commencing on June 30, 2004 and ending on December 31, 2007, each in an amount equal to $2,000,000, followed by 1 installment on the Final Maturity Date, in an
amount equal to $32,000,000; provided, however, that the last such installment shall be in the amount necessary to repay in full the unpaid principal amount of the Term Loan. The outstanding principal of the Term Loan shall be repaid
in full on the Final Maturity Date. 
  
 (b) Each Lender shall
maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrower to such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

  
 (c) The Administrative Agent shall maintain accounts in which
it shall record (i) the amount of the Term Loan, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof. 
  

 24 

 (d) The entries made in the accounts maintained pursuant to subsections (c) or (d) of this
Section 2.03 shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrower to repay the Term Loan in accordance with the terms of this Agreement. 
  
 (e) Any Lender may request that the portion of the Term Loan made by it be evidenced by a promissory note. In such event, the Borrower shall execute and
deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) in a form furnished by the Collateral Agent and reasonably acceptable to the Borrower.
Thereafter, the portion of the Term Loan evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 10.07, be represented by one or more promissory notes in such form payable to
the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 
  
 Section 2.04 Interest. (a) Term Loan. The Term Loan shall bear interest on the principal amount thereof from time to time outstanding, from
the date of the making of the Term Loan until such principal amount is repaid, at a rate per annum equal to the greater of (i) the Reference Rate plus 4.5 percentage points, and (ii) 11.0%. 
  
 (b) Default Interest. To the extent permitted by law, upon the
occurrence and during the continuance of an Event of Default, the principal of, and all accrued and unpaid interest on, the Term Loan, fees, indemnities or any other Obligations of the Loan Parties under this Agreement and the other Loan Documents,
shall bear interest, from the date such Event of Default occurred until the date such Event of Default is cured or waived in writing in accordance herewith, at a rate per annum equal at all times to the Post-Default Rate. 
  
 (c) Interest Payment. Interest on the Term Loan shall be payable
monthly, in arrears, on the first day of each month, commencing on May 1, 2003 and at maturity (whether upon demand, by acceleration or otherwise). Interest at the Post-Default Rate shall be payable on demand. The Borrower hereby authorizes the
Administrative Agent to, and the Administrative Agent may, from time to time, charge the Loan Account pursuant to Section 3.02 with the amount of any interest payment due hereunder. 
  
 (d) General. All interest shall be computed on the basis of a year of
360 days for the actual number of days, including the first day but excluding the last day, elapsed. 
  
 Section 2.05 Termination of Commitment; Prepayment of Term Loan. 
  
 (a) Termination of Total Term Loan Commitment. The Total Term Loan Commitment shall terminate upon the making of the
Term Loan on the Effective Date. 
  
 (b) Optional Prepayment
of Term Loan. The Borrower may, upon at least 5 Business Days prior written notice to the Administrative Agent, prepay without penalty or premium the principal of the Term Loan, in whole or in part. Each prepayment made pursuant to this
Section 2.05(b) shall be accompanied by the payment of accrued interest to the date of such 
  

 25 

 
payment on the amount prepaid. Each such prepayment shall be applied against the remaining installments of principal due on the Term Loan in the inverse
order of maturity. 
  
 (c) Mandatory Prepayment.

  
 (i) Immediately upon receipt of any proceeds of any
Disposition by any Loan Party or its Subsidiaries other than a Permitted Disposition (except Permitted Dispositions of the type described in clauses (b) and (c) of the definition of Permitted Dispositions), the Borrower shall prepay the outstanding
principal amount of the Term Loan in an amount equal to 100% of the Net Cash Proceeds received by such Person in connection with such Disposition to the extent that the aggregate amount of Net Cash Proceeds received by all Loan Parties and their
Subsidiaries (and not paid to the Administrative Agent as a prepayment of the Term Loan) shall exceed for all such Dispositions since the Effective Date $500,000. Nothing contained in this subsection (i) shall permit any Loan Party or any of
its Subsidiaries to make a Disposition of any property other than a Permitted Disposition. 
  
 (ii) Upon the issuance or incurrence by any Loan Party or any of its Subsidiaries of any Indebtedness (other than Indebtedness referred to in clauses (a), (b), (c), (d), (e), and (f) of the definition of Permitted
Indebtedness), the Borrower shall prepay the Term Loan in an amount equal to 100% of the Net Cash Proceeds received by such Person in connection therewith; provided, however, that, notwithstanding the foregoing to the contrary, the
Borrower shall not be obligated to prepay the Term Loan from any proceeds of Subordinated Indebtedness which is incurred in connection with a Permitted Acquisition. The provisions of this subsection (ii) shall not be deemed to be implied
consent to any such issuance or incurrence otherwise prohibited by the terms and conditions of this Agreement. 
  
 (iii) Upon the receipt by any Loan Party or any of its Subsidiaries of any Extraordinary Receipts, the Borrower shall prepay the outstanding principal of
the Term Loan in an amount equal to 100% of such Extraordinary Receipts, net of any reasonable expenses incurred in collecting such Extraordinary Receipts. 
  
 (d) Application of Payments. Each prepayment made pursuant to Section 2.05(c) above shall be applied against the remaining installments of
principal of the Term Loan in the inverse order of their maturity. 
  
 (e) Interest and Fees. Any prepayment made pursuant to this Section 2.05 shall be accompanied by accrued interest on the principal amount being prepaid to the date of prepayment, and if such prepayment would reduce the
amount of the outstanding Term Loan to zero, such prepayment shall be accompanied by the payment of the Loan Servicing Fee accrued to such date pursuant to Section 2.06. 
  
 (f) Cumulative Prepayments. Except as otherwise expressly provided in this Section 2.05, payments with
respect to any subsection of this Section 2.05 are in addition to payments made or required to be made under any other subsection of this Section 2.05. 
  
 Section 2.06 Fees. 
  

 26 

 (a) Closing Fee. On or prior to the Effective Date, the Borrower shall pay to the Administrative
Agent for the account of the Lenders, in accordance with their Pro Rata Shares, a non-refundable closing fee (the “Closing Fee”) equal to $620,000. 
  
 (b) Loan Servicing Fee. From and after the Effective Date and until the date on which all Obligations are paid in
full, the Borrower shall pay to the Administrative Agent for the account of the Agents a non-refundable loan servicing fee (the “Loan Servicing Fee”) equal to $15,000 each month, which shall be payable on the Effective Date (payable
ratably based on the number of days remaining in the month in which the Effective Date occurs) and monthly in advance thereafter on the first day of each month commencing on April 1, 2003. 
  
 (c) Anniversary Fee. The Borrower shall, on each Anniversary Date
that occurs prior to the date upon which the Obligations are paid in full, pay to the Administrative Agent for the account of the Lenders, in accordance with their Pro Rata Shares, a non-refundable anniversary fee (the “Anniversary
Fee”) equal to $930,000 in the aggregate for all Lenders. 
  
 Section 2.07 Securitization. The Borrower hereby acknowledges that the Lenders and their Affiliates may sell or securitize the Term Loan (a “Securitization”) through the pledge of the Term Loan as collateral security
for loans to the Lenders or their Affiliates or through the sale of the Term Loan or the issuance of direct or indirect interests in the Term Loan, which Term Loan to the Lenders or their Affiliates or direct or indirect interests will be rated by
Moody’s, Standard & Poor’s or one or more other rating agencies. The Borrower shall cooperate with the Lenders and their Affiliates to effect the Securitization including, without limitation, by (a) amending this Agreement and the
other Loan Documents, and executing such additional documents, as reasonably requested by the Lenders in connection with the Securitization, provided that (i) any such amendment or additional documentation does not impose any costs or
burdens on the Borrower other than in a de minimis and inconsequential manner and (ii) any such amendment or additional documentation does not adversely affect the rights, or increase the obligations, of the Borrower under the Loan Documents or
change or affect in a manner adverse to the Borrower the financial terms of the Term Loan other than in respect of de minimis costs and expenses resulting from ministerial tasks, and (b) providing such information as may be reasonably requested by
the Lenders in connection with the rating of the Term Loan or the Securitization. 
  
 Section 2.08 Taxes. (a) All payments made by the Borrower hereunder or under any other Loan Document shall be made without set-off, counterclaim, deduction or other defense. All such payments shall be made free
and clear of and without deduction for any present or future income, franchise, sales, use, excise, stamp or other taxes, levies, imposts, deductions, charges, fees, withholdings, restrictions or conditions of any nature now or hereafter imposed,
levied, collected, withheld or assessed by any jurisdiction (whether pursuant to United States Federal, state, local or foreign law) or by any political subdivision or taxing authority thereof or therein, and all interest, penalties or similar
liabilities, excluding taxes on the net income of, and branch profit taxes of, any Lender or any Agent imposed by the jurisdiction in which such Lender or such Agent is organized or any political subdivision thereof or taxing authority thereof or
any jurisdiction in which such Person’s principal office or relevant lending office is located or any political subdivision thereof or taxing authority thereof (such nonexcluded taxes, levies, imposts, deductions, charges, fees, withholdings,
restrictions and conditions being hereinafter collectively referred to as “Taxes”). If the Borrower shall be required by law, rule, regulation or any 
  

 27 

 
interpretation of any relevant Governmental Authority to deduct or to withhold any Taxes from or in respect of any amount payable hereunder, 
  
 (i) the amount so payable shall be increased to the extent necessary so that
after making all required deductions and withholdings (including Taxes on amounts payable to the Lenders or the Agents pursuant to this sentence) the Lenders or the Agents receive an amount equal to the sum they would have received had no such
deduction or withholding been made, 
  
 (ii) the Borrower shall
make such deduction or withholding, and 
  
 (iii) the Borrower
shall pay the full amount deducted or withheld to the relevant taxation authority in accordance with applicable law. Whenever any Taxes are payable by the Borrower, as promptly as possible thereafter, the Borrower shall send the Lenders and the
Agents an official receipt (or, if an official receipt is not available, such other documentation as shall be satisfactory to the Lenders or the Agents, as the case may be) showing payment. In addition, the Borrower agrees to pay any present or
future taxes, charges or similar levies which arise from any payment made hereunder or from the execution, delivery, performance, recordation or filing of, or otherwise with respect to, this Agreement, the Letters of Credit or any other Loan
Document other than the foregoing excluded taxes (hereinafter referred to as “Other Taxes”). 
  
 (b) The Borrower will indemnify the Lenders and the Agents for the amount of Taxes or Other Taxes (including, without limitation, any Taxes or Other
Taxes imposed by any jurisdiction on amounts payable under this Section 2.08) paid by any Lender or any Agent and any liability (including penalties, interest and expenses for nonpayment, late payment or otherwise) arising therefrom or with
respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be paid within 10 days from the date on which any such Lender or any such Agent makes written demand therefor, which demand
shall identify the nature and amount of Taxes or Other Taxes for which indemnification is being sought and the basis of the claim. 
  
 (c) Each Lender that is organized in a jurisdiction other than the United States, a State thereof or the District of Columbia hereby agrees that:

  
 (i) it shall, no later than the Effective Date (or, in the
case of a Lender which becomes a party hereto pursuant to Section 10.07 hereof after the Effective Date, the date upon which such Lender becomes a party hereto) deliver to the Borrower and the Agents: (A) two accurate, complete and signed
originals of U.S. Internal Revenue Service Form W-8ECI or successor form, or (B) two accurate, complete and signed originals of U.S. Internal Revenue Service Form W-8BEN or successor form, in each case, indicating that such Lender is on the date of
delivery thereof entitled to receive payments of principal, interest and fees for the account of its lending office under this Agreement free from, or subject to a reduced rate of, withholding of United States Federal income tax; 
  
 (ii) if at any time such Lender changes its lending office or offices or
selects an additional lending office for purposes of this Agreement, it shall, at the same 
  

 28 

 
time or reasonably promptly thereafter, deliver to the Borrower and the Agents the appropriate forms as described in clause (i) above in replacement for, or
in addition to, the forms previously delivered by it hereunder. 
  
 (d) If the Borrower fails to perform any of its obligations under this Section 2.08, the Borrower shall indemnify the Lenders and the Agents. The obligations of the Borrower under this Section 2.08 shall survive the
termination of this Agreement and the payment of the Term Loan and all other amounts payable hereunder. 
  
 ARTICLE III 
  
 FEES, PAYMENTS AND OTHER COMPENSATION 
  
 Section
3.01 Audit and Collateral Monitoring Fees. The Borrower acknowledges that pursuant to Section 6.01(f), representatives of the Agents may visit any Loan Party and/or conduct Field Survey and Audits of any Loan Party and valuations or
appraisals of any or all of the Collateral and/or business or enterprise valuations of the Loan Parties at any time and from time to time in a manner so as to not unduly disrupt the business of such Loan Party. The Borrower agrees to pay (i) $1,500
per day per examiner plus the examiner’s out-of-pocket costs and reasonable expenses incurred in connection with each such Field Survey and Audit or valuations and (ii) the actual cost of each Field Survey and Audit, appraisal or valuation
conducted by third party auditors or appraisers on behalf of the Agents; provided that so long as no Event of Default has occurred and is continuing, the foregoing fees and costs payable by the Borrower shall not exceed $25,000 during any
Fiscal Year. 
  
 Section 3.02 Payments; Computations and
Statements. (a) The Borrower will make each payment under this Agreement not later than 2:00 p.m. (eastern time) on the day when due, in lawful money of the United States of America and in immediately available funds, to the Administrative
Agent’s Account. All payments received by the Administrative Agent after 2:00 p.m. (eastern time) on any Business Day will be credited to the Loan Account on the next succeeding Business Day. All payments shall be made by the Borrower without
set-off, counterclaim, deduction or other defense to the Agents and the Lenders. Except as provided in Section 2.02, after receipt, the Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment
of principal ratably to the Lenders in accordance with their Pro Rata Shares and like funds relating to the payment of any other amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms of this Agreement,
provided that the Administrative Agent will cause to be distributed all interest and fees received from or for the account of the Borrower not less than once each month and in any event promptly after receipt thereof. The Lenders and the Borrower
hereby authorize the Administrative Agent to, and the Administrative Agent shall, from time to time, charge the Loan Account of the Borrower with any amount due and payable by the Borrower under any Loan Document. Each of the Lenders and the
Borrower agrees that the Administrative Agent shall have the right to make such charges whether or not any Default or Event of Default shall have occurred and be continuing. Whenever any payment to be made under any such Loan Document shall be
stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall in such case be included in the computation of interest or fees, as the case may be. All
computations of fees shall be made by the Administrative Agent on the basis 
  

 29 

 
of a year of 360 days for the actual number of days (including the first day but excluding the last day) occurring in the period for which such fees are
payable. Each determination by the Administrative Agent of an interest rate or fees hereunder shall be conclusive and binding for all purposes in the absence of manifest error. 
  
 (b) The Administrative Agent shall provide the Borrower, not later than 2 Business Days before the end of each calendar
month, a summary statement (in the form from time to time used by the Administrative Agent) of the opening and closing daily balances in the Loan Account of the Borrower during the previous month, the amounts and dates of all payments made on
account of the Term Loan during the previous month, the amount of interest accrued on the Term Loan to the Borrower during such month, and the amount and nature of any charges to the Loan Account made during the previous month on account of fees,
commissions, expenses and other Obligations. All entries on any such statement shall be presumed to be correct and, 30 days after the same is sent, shall be final and conclusive absent manifest error. 
  
 Section 3.03 Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of any Obligation in excess of its ratable share of payments on account of similar obligations obtained by all the Lenders, such Lender
shall forthwith purchase from the other Lenders such participations in such similar obligations held by them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided,
however, that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the
extent of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of such Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender of any
interest or other amount paid by the purchasing Lender in respect of the total amount so recovered). The Borrower agrees that any Lender so purchasing a participation from another Lender pursuant to this Section 3.03 may, to the fullest
extent permitted by law, exercise all of its rights (including the Lender’s right of set-off) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation.

  
 Section 3.04 Apportionment of Payments. Subject to
Section 2.02 hereof and to any written agreement among the Agents and/or the Lenders: 
  
 (a) all payments of principal and interest in respect of the Term Loan, all payments of fees (other than the audit and collateral monitoring fees provided for in Section 3.01) and all other payments in respect
of any other Obligations, shall be allocated by the Administrative Agent among such of the Lenders as are entitled thereto, in proportion to their respective Pro Rata Shares or otherwise as provided herein or, in respect of payments not made on
account of the Term Loan, as designated by the Person making payment when the payment is made. 
  
 (b) After the occurrence and during the continuance of an Event of Default, the Administrative Agent may, and upon the direction of the Required Lenders
shall, apply all payments in respect of any Obligations and all proceeds of the Collateral, subject to the provisions of this Agreement, (i) first, ratably to pay the Obligations in respect of any fees, expense 
  

 30 

 
reimbursements, indemnities and other amounts then due to the Agents until paid in full; (ii) second, ratably to pay interest due in respect of the
Collateral Agent Advances until paid in full; (iii) third, ratably to pay principal of the Collateral Agent Advances (or, to the extent such Obligations are contingent, to provide cash collateral in respect of such Obligations) until paid in
full; (iv) fourth, ratably to pay any fees and indemnities then due to the Lenders until paid in full; (v) fifth, ratably to pay interest due in respect of the Term Loan until paid in full; (vi) sixth, ratably to pay principal
of the Term Loan until paid in full, and (vii) seventh, to the ratable payment of all other Obligations then due and payable. 
  
 (c) In each instance, so long as no Event of Default has occurred and is continuing, Section 3.04(b) shall not be deemed to apply to any payment
by the Borrower specified by the Borrower to the Administrative Agent to be for the payment of Term Loan Obligations then due and payable under any provision of this Agreement or the prepayment of all or part of the principal of the Term Loan in
accordance with the terms and conditions of Section 2.05. 
  
 (d) For purposes of the foregoing, “paid in full” means payment of all amounts owing under the Loan Documents according to the terms thereof, including loan fees, service fees, professional fees, interest (and specifically
including interest accrued after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether or not the same would be or is allowed or disallowed in whole or in part in any Insolvency
Proceeding. 
  
 (e) In the event of a direct conflict between the
priority provisions of this Section 3.04 and other provisions contained in any other Loan Document, it is the intention of the parties hereto that both such priority provisions in such documents shall be read together and construed, to the
fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 3.04 shall control and govern. 
  
 Section 3.05 Increased Costs and Reduced Return. (a) If any Lender or
any Agent shall have determined that the adoption or implementation of, or any change in, any law, rule, treaty or regulation, or any policy, guideline or directive of, or any change in, the interpretation or administration thereof by, any court,
central bank or other administrative or Governmental Authority, or compliance by any Lender or any Agent or any Person controlling any such Lender or any such Agent with any directive of, or guideline from, any central bank or other Governmental
Authority or the introduction of, or change in, any accounting principles applicable to any Lender or any Agent or any Person controlling any such Lender or any such Agent (in each case, whether or not having the force of law), shall (i) subject any
Lender or any Agent, or any Person controlling any such Lender or any such Agent to any tax, duty or other charge with respect to this Agreement or the Term Loan made by such Lender or such Agent, or change the basis of taxation of payments to any
Lender or any Agent or any Person controlling any such Lender or any such Agent of any amounts payable hereunder (except for taxes on the overall net income of any Lender or any Agent or any Person controlling any such Lender or any such Agent),
(ii) impose, modify or deem applicable any reserve, special deposit or similar requirement against the Term Loan or against assets of or held by, or deposits with or for the account of, or credit extended by, any Lender or any Agent or any Person
controlling any such Lender or any such Agent or (iii) impose on any Lender or any Agent or any Person controlling any such Lender or any such 
  

 31 

 
Agent any other condition regarding this Agreement or the Term Loan, and the result of any event referred to in clauses (i), (ii) or (iii) above shall be to
increase the cost to any Lender or any Agent of making the Term Loan or agreeing to make the Term Loan, or to reduce any amount received or receivable by any Lender or any Agent hereunder, then, upon demand by any such Lender or any such Agent, the
Borrower shall pay to such Lender or such Agent such additional amounts as will compensate such Lender or such Agent for such increased costs or reductions in amount. 
  
 (b) If any Lender or any Agent shall have determined that any Capital Guideline or the adoption or implementation of, or
any change in, any Capital Guideline by the Governmental Authority charged with the interpretation or administration thereof, or compliance by any Lender or any Agent or any Person controlling such Lender or such Agent with any Capital Guideline or
with any request or directive of any such Governmental Authority with respect to any Capital Guideline, or the implementation of, or any change in, any applicable accounting principles (in each case, whether or not having the force of law), either
(i) affects or would affect the amount of capital required or expected to be maintained by any Lender or any Agent or any Person controlling such Lender or such Agent, and any Lender or any Agent determines that the amount of such capital is
increased as a direct or indirect consequence of the making of the Term Loan, any Lender’s or any Agent’s or any such other controlling Person’s other obligations hereunder, or (ii) has or would have the effect of reducing the rate of
return on any Lender’s or any Agent’s or any such other controlling Person’s capital to a level below that which such Lender or such Agent or such controlling Person could have achieved but for such circumstances as a consequence of
the making of the Term Loan or any agreement to make the Term Loan or such Lender’s or such Agent’s or such other controlling Person’s other obligations hereunder (in each case, taking into consideration, such Lender’s or such
Agent’s or such other controlling Person’s policies with respect to capital adequacy), then, upon demand by any Lender or any Agent, the Borrower shall pay to such Lender or such Agent from time to time such additional amounts as will
compensate such Lender or such Agent for such cost of maintaining such increased capital or such reduction in the rate of return on such Lender’s, such Agent’s or such other controlling Person’s capital. 
  
 (c) All amounts payable under this Section 3.05 shall bear interest
from the date that is 10 days after the date of demand by any Lender or any Agent until payment in full to such Lender or such Agent at the Reference Rate. A certificate of such Lender or such Agent claiming compensation under this Section
3.05, specifying the event herein above described and the nature of such event shall be submitted by such Lender or such Agent to the Borrower, setting forth the additional amount due and an explanation of the calculation thereof, and such
Lender’s or such Agent’s reasons for invoking the provisions of this Section 3.05, and shall be final and conclusive absent manifest error. 
  
 ARTICLE IV 
  
 CONDITIONS 
  
 Section 4.01 Conditions Precedent. The obligation of the Lenders (or any member thereof) to make the Term Loan, is subject to the fulfillment, to the satisfaction of the Agents, of each of the conditions precedent set forth below:

  

 32 

 (a) Payment of Fees, Etc. The Borrower shall have paid all fees, costs, expenses and taxes then
payable pursuant to Sections 2.06 and/or 10.04. 
  
 (b) Representations and Warranties: No Event of Default. The following statements shall be true and correct: (i) the representations and warranties contained in Article V and in each other Loan Document, certificate or other writing
delivered to any Agent or any Lender pursuant hereto or thereto on or prior to the Effective Date are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties
that already are qualified or modified by materiality in the text thereof) on and as of the Effective Date as though made on and as of such date (it being understood and agreed that any representation or warranty which by its terms is made as of a
specified date shall be required to be true and correct in all material respects only as of such specified date) and (ii) no Default or Event of Default shall have occurred and be continuing on the Effective Date or would result from this Agreement
or the other Loan Documents becoming effective in accordance with its or their respective terms. 
  
 (c) Legality. The making of the Term Loan shall not contravene any law, rule or regulation applicable to any Agent or any Lender. 
  
 (d) Delivery of Documents. The Collateral Agent shall have received
on or before the Effective Date the following, each in form and substance satisfactory to the Collateral Agent and, unless indicated otherwise, dated as of March 28, 2003: 
  
 (i) a Security Agreement, duly executed by the Borrower; 
  
 (ii) a Patent Security Agreement, duly executed by the Borrower; 
  
 (iii) a Trademark Security Agreement, duly executed by the Borrower;

  
 (iv) a UCC Filing Authorization Letter, duly executed by the
Borrower, together with appropriate financing statements on Form UCC-1 duly filed in such office or offices as may be necessary or, in the opinion of the Collateral Agent, desirable to perfect the security interests purported to be created by the
Security Agreement referenced in clause (d)(i) above; 
  
 (v)
certified copies of request for copies of information on Form UCC-11, listing all effective financing statements which name the Borrower as debtor and which are filed in the offices referred to in clause (iv) above, together with copies of such
financing statements, none of which, except as otherwise agreed in writing by the Collateral Agent, shall cover any of the Collateral and the results of searches for any tax Lien and judgment Lien filed against the Borrower or its property, which
results, except as otherwise agreed to in writing by the Collateral Agent, shall not show any such Liens; 
  
 (vi) a control agreement with respect to each deposit account and investment account of the Borrower, duly executed by the Borrower and the depositary
institution or securities intermediary, as applicable. 
  

 33 

 (vii) a copy of the resolutions of the Board of Directors of the Borrower, certified as of the Effective
Date by an Authorized Officer thereof, authorizing (A) the transactions contemplated by the Loan Documents, and (B) the execution, delivery and performance by the Borrower of each Loan Document to which it is or will be a party and the execution and
delivery of the other documents to be delivered by the Borrower in connection herewith and therewith; 
  
 (viii) a certificate of an Authorized Officer of the Borrower, certifying the names and true signatures of the representatives of the Borrower authorized
to sign each Loan Document to which the Borrower is or will be a party and the other documents to be executed and delivered by the Borrower in connection herewith and therewith, together with evidence of the incumbency of such authorized officers;

  
 (ix) a certificate of the appropriate official(s) of the
state of organization and each state of foreign qualification of the Borrower certifying as to the subsistence in good standing of, and the payment of taxes by, the Borrower in such states; 
  
 (x) a true and complete copy of the certificate of incorporation, of the
Borrower certified as of a recent date not more than 30 days prior to the Effective Date by an appropriate official of the state of incorporation of the Borrower which shall set forth the same complete name of the Borrower as is set forth herein and
the organizational number of the Borrower, if an organizational number is issued in such jurisdiction; 
  
 (xi) a copy of the by-laws of the Borrower, together with all amendments thereto, certified as of the Effective Date by an Authorized Officer of the
Borrower; 
  
 (xii) (A) an opinion of Pillsbury Winthrop LLP,
counsel to the Borrower, substantially in the form of Exhibit 4.01(d)(xii) and as to such other matters as the Collateral Agent may reasonably request; 
  

(xiii) a certificate of an Authorized Officer of the Borrower, certifying as to the matters set forth in Section 4.01(b); 
  
 (xiv) a copy of the Financial Statements, together with a certificate of an
Authorized Officer of the Borrower setting forth all existing Indebtedness, pending or threatened litigation or claims and other contingent liabilities of the Borrower; 
  
 (xv) a copy of the financial projections described in Section 5.01(g)(ii) hereof, which projections shall be
satisfactory in form and substance to the Agents; 
  
 (xvi) a
certificate of the chief financial officer of the Borrower, setting forth in reasonable detail the calculations required to establish compliance, as of the Effective Date giving effect to the transactions contemplated hereunder, with each of the
financial covenants contained in Sections 6.03(d) and (e); 
  
 (xvii) evidence of the insurance coverage required by Section 6.01 and the terms of the Security Agreement referenced in clause (d)(i) above and such other insurance coverage with respect to the business and operations of the Loan
Parties as the Collateral Agent 
  

 34 

 
may reasonably request, in each case, where requested by the Collateral Agent, with such endorsements as to the named insureds or loss payees thereunder as
the Collateral Agent may request and providing that such policy may be terminated or canceled (by the insurer or the insured thereunder) only upon 30 days prior written notice to the Collateral Agent and each such named insured or loss payee;

  
 (xviii) a copy of that certain Omnibus Amendment and
Termination Agreement dated as of March 28, 2003 between the Borrower and Elan, together with a certificate of an Authorized Officer of the Borrower stating that such copy is a true and correct copy of such agreement and that such agreement is in
full force and effect and has not been amended or modified; 
  
 (xix) a collateral access agreement, in form and substance satisfactory to the Collateral Agent, executed by each Person who possesses Inventory of the Borrower; 
  
 (xx) copies of the Material Contracts listed on Schedule 5.01(x) as in effect on the Effective Date, certified as
true and correct copies thereof by an Authorized Officer of the Borrower, together with a certificate of an Authorized Officer of the Borrower stating that such agreements remain in full force and effect and that the Borrower has not breached or
defaulted in any of its obligations under such agreements; 
  
 (xxi) a termination and release agreement with respect to the Existing Credit Facility and all related documents, including any security agreements filed with respect to any of the Borrower’s copyrights, patents or trademarks, duly
executed by the Borrower and the Existing Lender, together with UCC-3 termination statements for all UCC-1 financing statements filed by the Existing Lender and covering any portion of the Collateral; 
  
 (xxii) a Notice of Borrowing in accordance with Section 2.02;

  
 (xxiii) the Post-Closing Matters Agreement; and 

 
 (xxiv) such other agreements, instruments, approvals, opinions and other
documents, each satisfactory to the Collateral Agent in form and substance, as the Collateral Agent may reasonably request. 
  
 (e) Material Adverse Effect. The Collateral Agent shall have determined, in its sole judgment, that no event or development shall have occurred
since December 31, 2002 which could reasonably be expected to result in a Material Adverse Effect. 
  
 (f) Proceedings; Receipt of Documents. All proceedings in connection with the making of the Term Loan and the other transactions contemplated by
this Agreement and the other Loan Documents, and all documents incidental hereto and thereto, shall be satisfactory to the Collateral Agent, and the Collateral Agent shall have received all such information and such counterpart originals or
certified or other copies of such documents as the Collateral Agent may reasonably request. 
  

 35 

 (g) Management Reference Checks. The Collateral Agent shall have received satisfactory reference
checks for key management of the Borrower. 
  
 (h) Cash
Management System. The Borrower’s cash management system shall be satisfactory to the Collateral Agent. 
  
 (i) Due Diligence. The Collateral Agent shall have completed its business and legal due diligence with respect to the Borrower and the results
thereof shall be acceptable to the Collateral Agent, in its sole and absolute discretion. Without limiting the foregoing, (i) the Collateral Agent shall have received a Field Survey and Audit, dated not earlier than 30 days prior to the Effective
Date, and such Field Survey and Audit and the results thereof shall be acceptable to the Collateral Agent, in its sole and absolute discretion; (ii) the Collateral Agent shall have satisfactorily completed its analysis that the Borrower’s
Consolidated EBITDA for the Fiscal Year ended December 31, 2002 was $16,300,000 and the Borrower’s “pro forma EBITDA” was for such year was $27,100,000; (iii) the Collateral Agent shall have satisfactorily completed its analysis that
the Borrower’s projected Consolidated EBITDA for the Fiscal Year ending December 31, 2003 will be at least $39,200,000; and (iv) the Collateral Agent shall have determined in its discretion that the Total Term Loan Commitment is less than 50%
of the distressed enterprise value of the Borrower. 
  
 (j)
Equity Proceeds. The Collateral Agent shall have received satisfactory evidence that the Borrower has received proceeds in an amount of at least $26,000,000 from the issuance of its Series C-l Preferred Stock and the Borrower’s chief
financial officer shall have delivered a certificate to the Agents certifying such receipt. 
  
 ARTICLE V 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Section 5.01
Representations and Warranties. Each Loan Party hereby represents and warrants to the Agents and the Lenders as follows: 
  
 (a) Organization, Good Standing, Etc. The Borrower is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware. The Borrower is duly qualified to transact business and is in good standing in California and in each other jurisdiction in which such qualification is required, except where failure to do so would not have a material adverse
effect on the Borrower or its business, properties, prospects or financial condition. The Borrower has all required corporate power and authority necessary to own and operate its property, to carry on its business as now conducted and presently
proposed to be conducted and to carry out the transactions contemplated by this Agreement. 
  
 (b) Authorization, Etc. The execution, delivery and performance by each Loan Party of each Loan Document to which it is or will be a party, (i) have been duly authorized by all necessary action, (ii) do not and
will not contravene its charter or by-laws, its limited liability company or operating agreement or its certificate of partnership or partnership agreement, as applicable, or any applicable law or any contractual restriction binding on or otherwise
affecting it or any of its properties, (iii) do not and will not result in or require the 
  

 36 

 
creation of any Lien (other than pursuant to any Loan Document) upon or with respect to any of its properties, and (iv) do not and will not result in any
default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operations or any of its properties. 
  
 (c) Governmental Approvals. No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority on the part of any Loan Party is required in connection with the consummation of the transactions
contemplated by this Agreement and the other Loan Documents. 
  
 (d) Enforceability of Loan Documents. This Agreement is, and each other Loan Document to which any Loan Party is or will be a party, when delivered hereunder, will constitute valid and legally binding obligations of such Loan Party,
enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and (b) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies. 
  
 (e) Subsidiaries. The Borrower does not presently own or control, directly or indirectly, or hold any rights to acquire, any interest in any other
corporation, association or other business entity nor has the Borrower ever held such interest. The Borrower is not a participant in any joint venture, partnership or similar arrangement nor has the Borrower ever been a participant in any such
arrangement. 
  
 (f) Litigation; Commercial Tort Claims.
Except as set forth in Schedule 5.01(f), there is no action, suit, proceeding or investigation pending or, to the best knowledge of any Loan Party, currently threatened against any Loan Party (or, to the best of any Loan Party’s
knowledge, threatened against or affecting any of the officers, directors or employees of any Loan Party with respect to such Loan Party’s businesses or proposed business activities) that questions the validity of this Agreement or any other
Loan Document or the right of any Loan Party to enter into such agreement or to consummate the transactions contemplated hereby, or that might result, either individually or in the aggregate, in a Material Adverse Effect, or any change in the
current equity ownership of the Borrower nor is any Loan Party aware that there is any basis for the foregoing. The foregoing includes, without limitation, actions, suits, proceedings or investigations pending or threatened (or any basis therefor
known to any Loan Party) involving the prior employment of any Loan Party’s employees, their use in connection with any Loan Party’s business of any information or techniques allegedly proprietary to any of their former employers or their
obligations under any agreements with prior employers. Except as set forth in Schedule 5.01(f), no Loan Party is a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or
instrumentality, no Loan Party has received any opinion or memorandum or legal advice from legal counsel to the effect that it is exposed, from a legal standpoint, to any liability or disadvantage which may be material to its business, and no
action, suit, proceeding or investigation by any Loan Party is currently pending or is intended to be initiated. Except as set forth in Schedule 5.01(f), as of the Effective Date, none of the Loan Parties holds any commercial tort claims in
respect of which a claim has been filed in a court of law or a written notice by an attorney has been given to a potential defendant. 
  

 37 

 (g) Financial Condition. 
  
 (i) The Financial Statements, copies of which have been delivered to the Collateral Agent, fairly present the consolidated
financial condition of the Borrower and its Subsidiaries as at the respective dates thereof and the consolidated results of operations of the Borrower and its Subsidiaries for the fiscal periods ended on such respective dates, all in accordance with
GAAP, and since December 31, 2002, no event or development has occurred that has had or could reasonably be expected to result in a Material Adverse Effect. 
  
 (ii) The Borrower has heretofore furnished to Collateral Agent (A) projected monthly balance sheets, income statements and statements of cash flows of
the Borrower and its Subsidiaries for the period from January 1, 2003, through December 31, 2003, and (B) projected annual balance sheets, income statements and statements of cash flows of the Borrower and its Subsidiaries for the Fiscal Years
ending in 2004 through 2006, which projected financial statements shall be updated from time to time pursuant to Section 6.01(a)(vi). Such projections, as so updated, are believed by the Borrower at the time furnished to be reasonable, have
been prepared on a reasonable basis and in good faith by the Borrower, and have been based on assumptions believed by the Borrower to be reasonable at the time made and upon the best information then reasonably available to the Borrower, and the
Borrower is not aware of any facts or information that would lead it to believe that such projections, as so updated, are incorrect or misleading in any material respect. 
  
 (h) Compliance with Other Instruments, Law, Etc. No Loan Party is in violation of or default under (a) any provision
of its Certificate or Articles of Incorporation, its Bylaws or any of its other organizational documents, (b) any instrument, judgment, order, writ or decree to which it is a party or by which it is bound or (c) the material provisions of any
contract (including, without limitation, any Material Contract) to which it is a party or by which it is bound or any federal or state statute, rule or regulation applicable to any Loan Party. No Default or Event of Default has occurred and is
continuing. 
  
 (i) ERISA. Except as set forth on
Schedule 5.01(i), the Loan Parties do not maintain or contribute to, and have never maintained or contributed to, any “employee benefit plan,” as such term is defined in ERISA. 
  
 (j) Taxes, Etc. All Federal, state and local tax returns and other
reports required by applicable law to be filed by any Loan Party have been filed, or extensions have been obtained, and all taxes, assessments and other governmental charges imposed upon any Loan Party or any property of any Loan Party and which
have become due and payable have been paid, except to the extent contested in good faith by proper proceedings which stay the imposition of any penalty, fine or Lien resulting from the non-payment thereof and with respect to which adequate reserves
have been set aside for the payment thereof in accordance with GAAP. 
  
 (k) Regulations T, U and X. No Loan Party is or will be engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation T, U or X), and no proceeds of the Term Loan
will be used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any margin stock. 
  

 38 

 (l) Nature of Business. No Loan Party is engaged in any business other than the development,
marketing, manufacturing, distribution, selling or similar activity relating to a pharmaceutical product or products affecting the central nervous system. 
  
 (m) Capacity to Protect Interests. The Borrower and the other Loan Parties, by reason of their own business and financial experience or that of
their professional advisors, have the capacity to protect their own interests in connection with incurring the Obligations under the Loan Documents. 
  
 (n) Permits, Etc. Each Loan Party has all franchises, permits, licenses and any similar authority necessary for the conduct of its business, and
each Loan Party believes it can obtain, without undue burden or expense, any similar authority for the conduct of its business as planned to be conducted. No Loan Party is in default in any material respect under any of such franchises, permits,
licenses or other similar authority. 
  
 (o) Properties.
(i) Each Loan Party has good and marketable title to, valid leasehold interests in, or valid licenses to use, all property and assets material to its business, free and clear of all Liens, except Permitted Liens. All such properties and assets are
in good working order and condition, ordinary wear and tear excepted. 
  
 (ii) Schedule 5.01(o) sets forth a complete and accurate list, as of the Effective Date, of the location, by state and street address, of all real property owned or leased by each Loan Party. As of the Effective Date, each Loan Party
has valid leasehold interests in the Leases described on Schedule 5.01(o) to which it is a party. Schedule 5.01(o) sets forth with respect to each such Lease, the commencement date, termination date, renewal options (if any) and annual
base rents. Each such Lease is valid and enforceable in accordance with its terms in all material respects and is in full force and effect. No consent or approval of any landlord or other third party in connection with any such Lease is necessary
for any Loan Party to enter into and execute the Loan Documents to which it is a party, except as set forth on Schedule 5.01(o). To the best knowledge of any Loan Party, no other party to any such Lease is in default of its obligations
thereunder, and no Loan Party (or any other party to any such Lease) has at any time delivered or received any notice of default which remains uncured under any such Lease and, as of the Effective Date, no event has occurred which, with the giving
of notice or the passage of time or both, would constitute a default under any such Lease. 
  
 (p) Full Disclosure. Each Loan Party has disclosed to the Agents all agreements, instruments and corporate or other restrictions to which it is subject, and all other matters known to it, that, individually or
in the aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the other reports, financial statements, certificates or other information furnished by or on behalf of any Loan Party to the Agents in connection with
the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the
light of the circumstances under which it was made, not misleading; provided that, with respect to projected financial information, each Loan Party represents only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time. There is no contingent liability or fact that could reasonably 
  

 39 

 
be expected to result in a Material Adverse Effect which has not been set forth in a footnote included in the Financial Statements or a Schedule hereto.

  
 (q) Operating Lease Obligations. On the Effective
Date, none of the Loan Parties has any Operating Lease Obligations other than the Operating Lease Obligations set forth on Schedule 5.01(q). 
  
 (r) Environmental Matters. Except as set forth on Schedule 5.01(r), Each Loan Party, the operation of its business and any real property
that it owns or has owned, leases or has leased or otherwise occupies or uses or has occupied or used (the “Premises”) are, to the best of each Loan Party’s knowledge, in compliance with all applicable Environmental Laws and
orders or directives of any governmental authorities having jurisdiction under such Environmental Laws. Except as set forth on Schedule 5.01(r), no Loan Party has received any citation, directive, letter or other communication, written or
oral, or any notice of any proceeding, claim or lawsuit, from any Person arising out of the ownership or occupation of the Premises, or the conduct of its operations, and no Loan Party is aware of any basis therefor. To the best of each Loan
Party’s knowledge, no material expenditures are or will be required in order to comply with any Environmental Laws. 
  
 (s) Insurance. Each Loan Party has in full force and effect fire and casualty insurance policies, with extended coverage, sufficient in amount
(subject to reasonable deductibles) to allow it to replace any of its properties that might be damaged or destroyed. No Loan Party is in default with respect to its obligations under any insurance policy maintained by it, and no Loan Party has been
denied insurance coverage. Schedule 5.01(s) sets forth a list of all insurance maintained by each Loan Party on the Effective Date. 
  
 (t) Use of Proceeds. The proceeds of the Term Loan shall be used as follows: (a) $61,500,000 of such proceeds to refinance at a discount all
existing Indebtedness of the Borrower owed under the Existing Credit Facility to the Existing Lender in the principal amount of $99,000,000, and (b) the remainder of such proceeds to pay fees and expenses in connection with the transactions
contemplated hereby. 
  
 (u) Solvency. After giving effect
to the transactions contemplated by this Agreement and before and after giving effect to the making of the Term Loan, each Loan Party is, and the Loan Parties on a consolidated basis are, Solvent. 
  
 (v) Location of Bank Accounts. Schedule 5.01(v) sets forth a
complete and accurate list as of the Effective Date of all deposit, checking and other bank accounts, all securities and other accounts maintained with any broker dealer and all other similar accounts maintained by each Loan Party, together with a
description thereof (i.e., the bank or broker dealer at which such deposit or other account is maintained and the account number and the purpose thereof). 
  
 (w) Intellectual Property. Schedule 5.01(w) contains a complete and accurate list of all (a) patented or
registered Intellectual Property Rights (as defined below) owned or used by any Loan Party, (b) pending patent applications and applications for registrations of other Intellectual Property Rights filed by any Loan Party and (c) unregistered trade
names and 
  

 40 

 
corporate names owned or used by any Loan Party. Schedule 5.01(w) also contains a complete and accurate list of all licenses and other rights granted
by any Loan Party to any third party with respect to any Intellectual Property Rights and all licenses and other rights granted by any third party to any Loan Party with respect to any Intellectual Property Rights, in each case identifying the
subject Intellectual Property Rights. Except as set forth on Schedule 5.01(w), to the best of any Loan Party’s knowledge, the specified Loan Party owns all right, title and interest in and to all of the Intellectual Property Rights
listed on Schedule 5.0 1(w) as owned by the such Loan Party free and clear of all liens, encumbrances or claims of others. To the best of any Loan Party’s knowledge, each Loan Party owns all right, title and interest to, or has or will
be able to obtain the right to use on commercially reasonable terms pursuant to a valid license, all Intellectual Property Rights necessary for the operation of the business of such Loan Party as presently conducted and as presently proposed to be
conducted, free and clear of all liens, encumbrances or claims of others (except, as applicable, licensors). To the best of the any Loan Party’s knowledge, the owners of any Intellectual Property Rights licensed to a Loan Party have taken all
commercially reasonable actions to maintain and protect the Intellectual Property Rights that are subject to such licenses. There have been no claims made against any Loan Party asserting the invalidity, misuse or unenforceability of any of such
Intellectual Property Rights, and to the best of any Loan Party’s knowledge, there are no valid grounds for the same. The Loan Parties have not received any notices of, and are not aware of any facts which indicate a likelihood of, any
infringement or misappropriation by, or conflict with, any third party with respect to such Intellectual Property Rights (including, without limitation, any demand or request that any Loan Party license any rights from a third party). To the best of
any Loan Party’s knowledge, the conduct of any Loan Party’s business has not infringed, misappropriated or conflicted with and does not infringe, misappropriate or conflict with any Intellectual Property rights of others, nor would any
future conduct as presently contemplated infringe, misappropriate or conflict with any Intellectual Property Rights of others. To the best of any Loan Party’s knowledge, the Intellectual Property Rights owned by or licensed to any Loan Party
have not been infringed, misappropriated or conflicted by others. The transactions contemplated by this Agreement shall have no adverse effect on any Loan Party’s right, title and interest in and to the Intellectual Property Rights listed on
Schedule 5.01(w). To the best of any Loan Party’s knowledge after due inquiry, none of the Loan Parties’ employees is obligated under any contract (including licenses, covenants or commitments of any nature) or other agreement, or
subject to any judgment, decree or order of any court or administrative agency, that would interfere with the use of such employee’s best efforts to promote the interests of any Loan Party or that would conflict with any Loan Party’s
business as presently conducted and as presently proposed to be conducted. Neither the execution of the Loan Documents nor the transactions contemplated by the Loan Documents nor the carrying on of the business of any Loan Party by its employees,
nor the conduct of any Loan Party’s business as presently proposed to be conducted, will, to the best of any Loan Party’s knowledge, conflict with or result in a breach of the terms, conditions or provisions of, or constitute a default
under, any contract, covenant or instrument under which any of such employees is now obligated. Each Loan Party does not believe it is or will be necessary to utilize any inventions of any of its employees (or people it currently intends to hire)
made prior to their employment by such Loan Party, except for inventions that will have been assigned or licensed to such Loan Party as of the Effective Date. For purposes of this Agreement, “Intellectual Property Rights” means all
(i) patents, patent applications, patent disclosures and inventions, (ii) trademarks, service marks, trade dress, trade names, logos and corporate names and registrations and applications for registration thereof 
  

 41 

 
together with all of the goodwill associated therewith, (iii) copyrights (registered and unregistered) and copyrightable works and registrations and
applications for registration thereof, (iv) mask works and registrations and applications for registration thereof, (v) computer software, data, data bases and documentation thereof, (vi) trade secrets and other confidential and proprietary
information (including, without limitation, ideas, formulas, compositions, inventions (whether patentable or unpatentable and whether or not reduced to practice), know-how, manufacturing and production processes and techniques, research and
development information, drawings, specifications, designs, plans, proposals, technical data, financial and marketing plans and customer and supplier lists and information) and (vii) copies and tangible embodiments thereof (in whatever form or
medium). 
  
 (x) Material Contracts; Drug Contracts. Set
forth on Schedule 5.01(x) is a complete and accurate list as of the Effective Date of all Material Contracts (including the Drug Contracts) of each Loan Party, showing the parties and subject matter thereof and amendments and modifications
thereto. Each such Material Contract (i) is in full force and effect and is binding upon and enforceable against each Loan Party that is a party thereto and, to the best knowledge of such Loan Party, all other parties thereto in accordance with its
terms, (ii) has not been otherwise amended or modified, and (iii) is not in default due to the action of any Loan Party or, to the best knowledge of any Loan Party, any other party thereto. 
  
 (y) Holding Company and Investment Company Acts. None of the Loan
Parties is (i) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of a “holding company”, as such terms are defined in the Public Utility Holding Company Act of
1935, as amended, or (ii) an “investment company” or an “affiliated person” or “promoter” of, or “principal underwriter” of or for, an “investment company”, as such terms are defined in the
Investment Company Act of 1940, as amended. 
  
 (z) Employee
and Labor Matters. No Loan Party is aware that any officer or key employee, or that any group of employees of any Loan Party, intends to terminate their employment with such Loan Party, nor does any Loan Party have a present intention to
terminate the employment of any of the foregoing. The employment of each officer and employee of any Loan Party is terminable at the will of such Loan Party. No Loan Party is a party to or bound by any currently effective employment contract,
deferred compensation agreement, bonus plan, incentive plan, profit sharing plan, retirement agreement or other employee compensation agreement. Each Loan Party has complied in all material respects with all applicable state and federal equal
employment opportunity and other laws related to employment (including without limitation, provisions thereof relating to wages, hours, equal opportunity, collective bargaining and the payment of social security and other taxes), and no Loan Party
is aware that it has any labor relations problems (including without limitation, any union organization activities, threatened or actual strikes or work stoppages or material grievances). No Loan Party is bound by or subject to (and none of its
assets or properties is bound by or subject to) any written or oral, express or implied, contract, commitment or arrangement with any labor union. 
  
 (aa) Customers and Suppliers. There exists no actual or threatened termination, cancellation or limitation of, or modification to or change in,
the business relationship between (i) any Loan Party, on the one hand, and any customer or any group thereof, on the other hand, whose agreements with any Loan Party are individually or in the aggregate material to the 
  

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business or operations of such Loan Party, or (ii) any Loan Party, on the one hand, and any material supplier thereof, on the other hand. 
  
 (bb) No Bankruptcy Filing. No Loan Party is contemplating either the
filing of a petition by it under any state, federal or foreign bankruptcy or insolvency laws or the liquidation of all or a major portion of such Loan Party’s assets or property, and no Loan Party has any knowledge of any Person contemplating
the filing of any such petition against it. 
  
 (cc) Name;
Jurisdiction of Organization; Organizational ID Number; Chief Place of Business; Chief Executive Office; FEIN. Schedule 5.01(cc) sets forth a complete and accurate list as of the date hereof of (i) the exact legal name of each Loan Party, (ii)
the jurisdiction of organization of each Loan Party, (iii) the organizational identification number of each Loan Party (or indicates that such Loan Party has no organizational identification number), (iv) each place of business of each Loan Party,
(v) the chief executive office of each Loan Party and (vi) the federal employer identification number of each Loan Party. 
  
 (dd) Locations of Collateral. There is no location at which any Loan Party has any Collateral (except for Inventory in transit) other than (i)
those locations listed on Schedule 5.01(dd) and (ii) any other locations approved in writing by the Collateral Agent from time to time. Schedule 5.01 (dd) hereto contains a true, correct and complete list, as of the Effective Date, of
the legal names and addresses of each warehouse or other third party location at which Collateral of each Loan Party is stored. None of the receipts received by any Loan Party from any warehouse states that the goods covered thereby are to be
delivered to bearer or to the order of a named Person or to a named Person and such named Person’s assigns. 
  
 (ee) Security Interests. Each Security Agreement, Patent Security Agreement and Trademark Security Agreement creates in favor of the Collateral
Agent, for the benefit of the Lenders, a legal, valid and enforceable security interest in the Collateral covered thereby. Upon the filing of the UCC-l financing statements described in Section 4.01(d)(iv), such security interests in and
Liens on the Collateral granted thereby shall be perfected, first priority security interests (subject to Permitted Liens), and no further recordings or filings are or will be required (other than filings with the U.S. Patent and Trademark Office
and similar offices in Canada) in connection with the creation, perfection or enforcement of such security interests and Liens. 
  
 (ff) Schedules. All of the information which is required to be scheduled to this Agreement is set forth on the Schedules attached hereto, is
correct and accurate and does not omit to state any information material thereto. 
  
 (gg) Representations and Warranties in Documents; No Default. All representations and warranties set forth in this Agreement and the other Loan Documents are true and correct in all respects at the time as of
which such representations were made and on the Effective Date. No Event of Default has occurred and is continuing and no condition exists which constitutes a Default or an Event of Default. 
  

 43 

 ARTICLE VI 
  
 COVENANTS OF THE LOAN PARTIES 
  

Section 6.01 Affirmative Covenants. So long as any principal of or interest on the Term Loan or any other Obligation (whether or not due) shall
remain unpaid or any Lender shall have any Term Loan Commitment hereunder, each Loan Party will: 
  
 (a) Reporting Requirements. Furnish to the Administrative Agent: 
  
 (i) as soon as available and in any event within 45 days after the end of each fiscal quarter of the Borrower, consolidated
and consolidating balance sheets, consolidated and consolidating statements of operations and retained earnings and consolidated and consolidating statements of cash flows of the Borrower and its Subsidiaries as at the end of such quarter, and for
the period commencing at the end of the immediately preceding Fiscal Year and ending with the end of such quarter, setting forth in each case in comparative form the figures for the corresponding date or period of the immediately preceding Fiscal
Year, all in reasonable detail and certified by an Authorized Officer of the Borrower as fairly presenting, in all material respects, the financial position of the Borrower and its Subsidiaries as of the end of such quarter and the results of
operations and cash flows of the Borrower and its Subsidiaries for such quarter, in accordance with GAAP applied in a manner consistent with that of the most recent audited financial statements of the Borrower and its Subsidiaries furnished to the
Agents and the Lenders, subject to normal year-end audit adjustments and the absence of footnotes; 
  
 (ii) as soon as available, and in any event within 90 days after the end of each Fiscal Year of the Borrower and its Subsidiaries, consolidated and
consolidating balance sheets, consolidated and consolidating statements of operations and retained earnings and consolidated and consolidating statements of cash flows of the Borrower and its Subsidiaries as at the end of such Fiscal Year, setting
forth in each case in comparative form the corresponding figures for the immediately preceding Fiscal Year, all in reasonable detail and prepared in accordance with GAAP, and accompanied by a report and an unqualified opinion, prepared in accordance
with generally accepted auditing standards, of independent certified public accountants of recognized standing selected by the Borrower and satisfactory to the Agents (which opinion shall be without (A) a “going concern” or like
qualification or exception, (B) any qualification or exception as to the scope of such audit, or (C) any qualification which relates to the treatment or classification of any item and which, as a condition to the removal of such qualification, would
require an adjustment to such item, the effect of which would be to cause any noncompliance with the provisions of Section 6.03, together with a written statement of such accountants (1) to the effect that, in making the examination necessary
for their audit of such financial statements, they have not obtained any knowledge of the existence of an Event of Default or a Default under Section 6.03 and (2) if such accountants shall have obtained any knowledge of the existence of an
Event of Default or such Default under Section 6.03, describing the nature thereof; 
  
 (iii) as soon as available, and in any event within 30 days after the end of each fiscal month of the Borrower and its Subsidiaries, internally prepared consolidated and consolidating balance sheets, consolidated and
consolidating statements of operations and retained earnings and consolidated and consolidating statements of cash flows as at the end of such 
  

 44 

 
fiscal month, and for the period commencing at the end of the immediately preceding Fiscal Year and ending with the end of such fiscal month, all in
reasonable detail and certified by an Authorized Officer of the Borrower as fairly presenting, in all material respects, the financial position of the Borrower and its Subsidiaries as at the end of such fiscal month and the results of operations,
retained earnings and cash flows of the Borrower and its Subsidiaries for such fiscal month, in accordance with GAAP applied in a manner consistent with that of the most recent audited financial statements furnished to the Agents and the Lenders,
subject to normal year-end audit adjustments and the absence of footnotes; 
  
 (iv) simultaneously with the delivery of the financial statements of the Borrower and its Subsidiaries required by clauses (i), (ii) and (iii) of this Section 6.01(a), a certificate of an Authorized Officer of
the Borrower (A) stating that such Authorized Officer has reviewed the provisions of this Agreement and the other Loan Documents and has made or caused to be made under his or her supervision a review of the condition and operations of the Borrower
and its Subsidiaries during the period covered by such financial statements with a view to determining whether the Borrower and its Subsidiaries were in compliance with all of the provisions of this Agreement and such Loan Documents at the times
such compliance is required hereby and thereby, and that such review has not disclosed, and such Authorized Officer has no knowledge of, the existence during such period of an Event of Default or Default or, if an Event of Default or Default
existed, describing the nature and period of existence thereof and the action which the Borrower and its Subsidiaries propose to take or have taken with respect thereto and (B) attaching a schedule showing the calculation of the financial covenants
specified in Section 6.03; 
  
 (v) as soon as available
and in any event within 30 days after the end of each fiscal month of the Borrower and its Subsidiaries, reports in form and detail satisfactory to the Agents and certified by an Authorized Officer of the Borrower as being accurate and complete (A)
listing all Accounts Receivable of the Borrower as of the end of such month, which shall include the amount and age of each Account Receivable, showing separately those which are more than 30, 60, 90 and 120 days old, together with a reconciliation
of such schedule with the schedule delivered to the Agents pursuant to this clause (v)(A) for the immediately preceding fiscal month, and such other information as any Agent may reasonably request, (B) listing all accounts payable of the Borrower as
of the end of such month which shall include the amount and age of each account payable, and such other information as any Agent may reasonably request, and (C) listing all Inventory of the Borrower as of the end of such month, and containing a
breakdown of such Inventory by type and amount, the cost and the current market value thereof, the date of acquisition, and such other information as any Agent may reasonably request, all in detail and in form satisfactory to the Agents; 

 
 (vi) (A) on or before December 31 of each year, financial projections,
supplementing and superseding the financial projections for the period referred to in Section 5.01(g)(ii)(A), prepared on a monthly basis and otherwise in form and substance satisfactory to the Agents, for the immediately succeeding Fiscal
Year for the Borrower and its Subsidiaries, (B) concurrently with the consummation of any Permitted Acquisition, all reports and other information provided to the Borrower’s Board of Directors in connection with its analysis and approval of
such Permitted Acquisition, (C) within 30 days of a Permitted Acquisition, financial projections giving effect to such Permitted Acquisition, supplementing and superseding the financial projections for the period referred to in Section
5.01(g)(ii)(A), prepared on a monthly 
  

 45 

 
basis and otherwise in form and substance satisfactory to the Agents, for the remainder of the Fiscal Year in which such Permitted Acquisition is consummated
and for the immediately succeeding Fiscal Year for the Borrower and its Subsidiaries, and (D) on or before June 30 of each Fiscal Year, financial projections, supplementing and superseding the financial projections delivered for such Fiscal Year
pursuant to clause (A) above, in form and substance satisfactory to the Agents, for each remaining quarterly period in such Fiscal Year, all such financial projections to be prepared on a reasonable basis and in good faith, and to be based on
assumptions believed by the Borrower to be reasonable at the time made and from the best information then available to the Borrower; 
  
 (vii) promptly after submission to any Governmental Authority, all documents and information furnished to such Governmental Authority in connection with
any investigation of any Loan Party other than routine inquiries by such Governmental Authority; 
  
 (viii) as soon as possible, and in any event within 3 days after the occurrence of an Event of Default or Default or the occurrence of any event or
development that could reasonably be expected to result in a Material Adverse Effect, the written statement of an Authorized Officer of the Borrower setting forth the details of such Event of Default or Default or other event or development having a
Material Adverse Effect and the action which the affected Loan Party proposes to take with respect thereto; 
  
 (ix) (A) as soon as possible and in any event within 10 days after any Loan Party or any ERISA Affiliate thereof knows or has reason to know that (1) any
Reportable Event with respect to any Employee Plan has occurred, (2) any other Termination Event with respect to any Employee Plan has occurred, or (3) an accumulated funding deficiency has been incurred or an application has been made to the
Secretary of the Treasury for a waiver or modification of the minimum funding standard (including installment payments) or an extension of any amortization period under Section 412 of the IRC with respect to an Employee Plan, a statement of an
Authorized Officer of the Borrower setting forth the details of such occurrence and the action, if any, which such Loan Party or such ERISA Affiliate proposes to take with respect thereto, (B) promptly and in any event within 3 days after receipt
thereof by any Loan Party or any ERISA Affiliate thereof from the PBGC, copies of each notice received by any Loan Party or any ERISA Affiliate thereof of the PBGC’s intention to terminate any Plan or to have a trustee appointed to administer
any Plan, (C) promptly and in any event within 10 days after the filing thereof with the Internal Revenue Service if requested by any Agent, copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) with respect to
each Employee Plan and Multiemployer Plan, (D) promptly and in any event within 10 days after any Loan Party or any ERISA Affiliate thereof knows or has reason to know that a required installment within the meaning of Section 412 of the IRC has not
been made when due with respect to an Employee Plan, (E) promptly and in any event within 3 days after receipt thereof by any Loan Party or any ERISA Affiliate thereof from a sponsor of a Multiemployer Plan or from the PBGC, a copy of each notice
received by any Loan Party or any ERISA Affiliate thereof concerning the imposition or amount of withdrawal liability under Section 4202 of ERISA or indicating that such Multiemployer Plan may enter reorganization status under Section 4241 of ERISA,
and (F) promptly and in any event within 10 days after any Loan Party or any ERISA Affiliate thereof sends notice of a plant closing or mass layoff (as defined in WARN) to employees, copies of each such notice sent by such Loan Party or such ERISA
Affiliate thereof; 
  

 46 

 (x) promptly after the commencement thereof but in any event not later than 5 Business Days after
service of process with respect thereto on, or the obtaining of knowledge thereof by, any Loan Party, notice of each action, suit or proceeding before any court or other Governmental Authority or other regulatory body or any arbitrator which, if
adversely determined, could reasonably be expected to result in a Material Adverse Effect; 
  
 (xi) as soon as possible and in any event within 5 Business Days after execution, receipt or delivery thereof, copies of any material notices that any Loan Party executes or receives in connection with any Material
Contract; 
  
 (xii) promptly after the sending or filing thereof,
copies of all statements, reports and other information any Loan Party sends to any holders of its Indebtedness or its securities or files with the SEC or any national (domestic or foreign) securities exchange; 
  
 (xiii) promptly upon receipt thereof, copies of all financial reports
(including, without limitation, management letters), if any, submitted to any Loan Party by its auditors in connection with any annual or interim audit of the books thereof; 
  
 (xiv) as soon as available but in any event within 3 Business Days after each Cash Test Date, a report on the amount and
location of all Qualified Cash as of such Cash Test Date, in detail and form satisfactory to the Agents (it being understood that there may be an understatement of cash receipts for the 10 days immediately preceding such Cash Test Date resulting in
the amount of Qualified Cash in such report being less than actual Qualified Cash on such Cash Test Date and any such inaccuracy shall not be considered a violation of this covenant); 
  
 (xv) as soon as available but in any event within 30 days of the end of each month, a report on the amounts (including
reasonable estimates thereof if the Borrower’s obligations are not quantified) and dates (including reasonable estimates thereof if the time for payment is not scheduled) of any future milestone payments for which the Borrower is obligated,
together with a description of such milestone payments, in detail and form satisfactory to the Agents; 
  
 (xvi) as soon as available but in any event within 30 days after the end of each fiscal quarter of the Borrower, a reconciliation report, in detail and
form satisfactory to the Agents, of (i) Warehouse Units Shipped to (ii) Units Dispensed to End Users for Diastat, Mysoline, Migranal and D.H.E. 45 and any future acquired commercial products for the Borrower and its Subsidiaries for such quarter
then ended, which data shall be based upon Scott-Levin SPA data or alternative independent sources to the extent such data is commercially available (it being understood that if such data is not commercially available and as a result the Borrower is
unable to deliver same, such failure to deliver by the Borrower shall not be considered a violation of this covenant); and 
  
 (xvii) promptly upon request, such other information concerning the condition or operations, financial or otherwise, of any Loan Party as any Agent may
from time to time may reasonably request. 
  
 (b) Additional
Guaranties and Collateral Security. Cause: 
  

 47 

 (i) each Subsidiary of any Loan Party to execute and deliver to the Collateral Agent promptly and in any
event within 3 Business Days after the formation or acquisition thereof (A) a Guaranty guaranteeing the Obligations, (B) a Security Agreement (and to the extent required by the Collateral Agent, a Patent Security Agreement and a Trademark Security
Agreement), (C) if such Subsidiary has any Subsidiaries, a Pledge Agreement together with (x) certificates evidencing all of the Capital Stock of any Person owned by such Subsidiary, (y) undated stock powers executed in blank with signature
guaranteed, and (z) such opinion of counsel and such approving certificate of such Subsidiary as the Collateral Agent may reasonably request in respect of complying with any legend on any such certificate or any other matter relating to such shares,
(D) one or more Mortgages creating on the real property of such Subsidiary a perfected, first priority Lien on such real property, a Title Insurance Policy covering such real property, a current ALTA survey thereof and a surveyor’s certificate,
each in form and substance satisfactory to the Collateral Agent, together with such other agreements, instruments and documents as the Collateral Agent may require whether comparable to the documents required under Section 6.01(o) or
otherwise, and (E) such other agreements, instruments, approvals, legal opinions or other documents reasonably requested by the Collateral Agent in order to create, perfect, establish the first priority of or otherwise protect any Lien purported to
be covered by any such Security Agreement, Patent Security Agreement, Trademark Security Agreement, Pledge Agreement, or Mortgage, or otherwise to effect the intent that such Subsidiary shall become bound by all of the terms, covenants and
agreements contained in the Loan Documents and that all property and assets of such Subsidiary shall become Collateral for the Obligations; and 
  
 (ii) each owner of the Capital Stock of any such Subsidiary to execute and deliver promptly and in any event within 3 Business Days after the formation
or acquisition of such Subsidiary a Pledge Agreement, together with (A) certificates evidencing all of the Capital Stock of such Subsidiary, (B) undated stock powers or other appropriate instruments of assignment executed in blank with signature
guaranteed, (C) such opinion of counsel and such approving certificate of such Subsidiary as the Collateral Agent may reasonably request in respect of complying with any legend on any such certificate or any other matter relating to such shares and
(D) such other agreements, instruments, approvals, legal opinions or other documents requested by the Collateral Agent. 
  
 (c) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to comply, with all applicable laws, rules, regulations and orders
(including, without limitation, all Environmental Laws), such compliance to include, without limitation, (i) paying before the same become delinquent all taxes, assessments and governmental charges or levies imposed upon it or upon its income or
profits or upon any of its properties, and (ii) paying all other lawful claims which if unpaid might become a Lien or charge upon any of its properties, except, in each case, to the extent contested in good faith by proper proceedings which stay the
imposition of any penalty, fine or Lien resulting from the non-payment thereof and with respect to which adequate reserves have been set aside for the payment thereof in accordance with GAAP, unless, in any event, the failure to comply with any such
law, rule, regulation or order could not reasonably be expected to result in a Material Adverse Effect. 
  
 (d) Preservation of Existence, Etc. Maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its existence, rights and
privileges, and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified and in good 
  

 48 

 
standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such
qualification necessary. 
  
 (e) Keeping of Records and Books
of Account. Keep, and cause each of its Subsidiaries to keep, adequate records and books of account, with complete entries made to permit the preparation of financial statements in accordance with GAAP. 
  
 (f) Inspection Rights. Permit, and cause each of its Subsidiaries to
permit, the agents and representatives of any Agent at any time and from time to time during normal business hours, at the expense of the Borrower (subject to the limitations set forth in Section 3.01), to examine and make copies of and
abstracts from its records and books of account, to visit and inspect its properties, to verify leases, notes, accounts receivable, deposit accounts and its other assets, to conduct audits, physical counts, valuations, appraisals, Phase I
Environmental Site Assessments (and, if requested by the Collateral Agent based upon the results of any such Phase I Environmental Site Assessment, a Phase II Environmental Site Assessment) or examinations and to discuss its affairs, finances and
accounts with any of its directors, officers, managerial employees, independent accountants or any of its other representatives; provided that the Borrower and its Subsidiaries shall not be obligated to comply with this Section 6.01(f)
on more than 1 occasion during any 12 month period unless an Event of Default has occurred and is continuing. 
  
 (g) Maintenance of Properties, Etc. Maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, all of its properties
which are necessary or useful in the proper conduct of its business in good working order and condition, ordinary wear and tear excepted, and comply, and cause each of its Subsidiaries to comply, at all times with the provisions of all leases to
which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder. 
  
 (h) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable insurance
companies or associations (including, without limitation, comprehensive general liability, hazard, rent and business interruption insurance) with respect to its properties (including all real properties leased or owned by it) and business, in such
amounts and covering such risks as is required by any Governmental Authority having jurisdiction with respect thereto or as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated and in
any event in amount, adequacy and scope reasonably satisfactory to the Collateral Agent. All policies covering the Collateral are to be made payable to the Collateral Agent for the benefit of the Lenders, as its interests may appear, in case of
loss, under a standard non-contributory “lender” or “secured party” clause and are to contain such other provisions as the Collateral Agent may require to fully protect the Lenders’ interest in the Collateral and to any
payments to be made under such policies. All certificates of insurance are to be delivered to the Collateral Agent and the policies are to be premium prepaid, with the loss payable and additional insured endorsement in favor of the Collateral Agent
and such other Persons as the Collateral Agent may designate from time to time, and shall provide for not less than 30 days prior written notice to the Collateral Agent of the exercise of any right of cancellation. If any Loan Party or any of its
Subsidiaries fails to maintain such insurance, the Collateral Agent may arrange for such insurance, but at the Borrower’s expense and without any responsibility on the Collateral Agent’s part for obtaining the insurance, 
  

 49 

 
the solvency of the insurance companies, the adequacy of the coverage, or the collection of claims. Upon the occurrence and during the continuance of an
Event of Default, the Collateral Agent shall have the sole right, in the name of the Lenders, any Loan Party and its Subsidiaries, to file claims under any insurance policies, to receive, receipt and give acquittance for any payments that may be
payable thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies.

  
 (i) Obtaining of Permits, Etc. Obtain, maintain and
preserve, and cause each of its Subsidiaries to obtain, maintain and preserve, and take all necessary action to timely renew, all permits, licenses, authorizations, approvals, entitlements and accreditations which are necessary or useful in the
proper conduct of its business. 
  
 (j) Environmental. (i)
Keep any property either owned or operated by it or any of its Subsidiaries free of any Environmental Liens; (ii) comply, and cause each of its Subsidiaries to comply, in all material respects with Environmental Laws and provide to the Collateral
Agent any documentation of such compliance which the Collateral Agent may reasonably request; (iii) immediately notify the Agents of any Release of a Hazardous Material in excess of any reportable quantity from or onto property owned or operated by
it or any of its Subsidiaries and take any Remedial Actions required to abate said Release; (iv) promptly provide the Agents with written notice within 10 days of the receipt of any of the following: (A) notice that an Environmental Lien has been
filed against any property of any Loan Party or any of its Subsidiaries; (B) commencement of any Environmental Action or notice that an Environmental Action will be filed against any Loan Party or any of its Subsidiaries; and (C) notice of a
violation, citation or other administrative order which could reasonably be expected to result in a Material Adverse Effect and (v) defend, indemnify and hold harmless the Agents and the Lenders and their transferees, and their respective employees,
agents, officers and directors, from and against any claims, demands, penalties, fines, liabilities, settlements, damages, costs or expenses (including, without limitation, attorney and consultant fees, investigation and laboratory fees, court costs
and litigation expenses) arising out of (A) the presence, disposal, release or threatened release of any Hazardous Materials on any property at any time owned or occupied by any Loan Party or any of its Subsidiaries (or its predecessors in interest
or title), (B) any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to such Hazardous Materials, (C) any investigation, lawsuit brought or threatened, settlement reached or government order
relating to such Hazardous Materials, (D) any violation of any Environmental Law and/or (E) any Environmental Action filed against any Agent or any Lender. 
  
 (k) Further Assurances. Take such action and execute, acknowledge and deliver, and cause each of its Subsidiaries to take such action and execute,
acknowledge and deliver, at its sole cost and expense, such agreements, instruments or other documents as any Agent may require from time to time in order (i) to carry out more effectively the purposes of this Agreement and the other Loan Documents,
(ii) to subject to valid and perfected first priority Liens (subject to Permitted Liens) any of the Collateral or any other property of any Loan Party and its Subsidiaries, (iii) to establish and maintain the validity and effectiveness of any of the
Loan Documents and the validity, perfection and priority of the Liens intended to be created thereby, and (iv) to better assure, convey, grant, assign, transfer and confirm unto each Agent and each Lender the rights now or hereafter intended to be
granted to it under this Agreement or any other Loan 
  

 50 

 
Document. In furtherance of the foregoing, to the maximum extent permitted by applicable law, each Loan Party (A) authorizes each Agent to execute any such
agreements, instruments or other documents in such Loan Party’s name if an Agent has requested a Loan Party to execute such a document and such Loan Party has failed to do so within a reasonably prompt time frame and to file such agreements,
instruments or other documents in any appropriate filing office, (B) authorizes each Agent to file any financing statement required hereunder or under any other Loan Document, and any continuation statement or amendment with respect thereto, in any
appropriate filing office without the signature of such Loan Party, and (C) ratifies the filing of any financing statement, and any continuation statement or amendment with respect thereto, filed without the signature of such Loan Party prior to the
date hereof. 
  
 (l) Change in Collateral; Collateral
Records. (i) Give the Collateral Agent not less than 30 days prior written notice of any change in the location of any Collateral, including any new deposit accounts or investment accounts, other than to (or in-transit between) locations set
forth on Schedule 5.01(dd) and with respect to which the Collateral Agent has filed financing statements and otherwise fully perfected its Liens thereon, (ii) advise the Collateral Agent promptly, in sufficient detail, of any material adverse
change relating to the type, quantity or quality of the Collateral or the Lien granted thereon and (iii) execute and deliver, and cause each of its Subsidiaries to execute and deliver, to the Collateral Agent for the benefit of the Lenders from time
to time, solely for the Collateral Agent’s convenience in maintaining a record of Collateral, such written statements and schedules as the Collateral Agent may reasonably require, designating, identifying or describing the Collateral.

  
 (m) Landlord Waivers; Collateral Access Agreements.
(i) At any time any Collateral with a book value in excess of $200,000 is located on any real property of the Borrower or any other Loan Party (whether such real property is now existing or acquired after the Effective Date) which is not owned by
the Borrower or any other Loan Party, use commercially reasonable efforts to obtain written subordinations or waivers, in form and substance satisfactory to the Collateral Agent, of all present and future Liens to which the owner or lessor of such
premises may be entitled to assert against the Collateral; and 
  
 (ii) Use commercially reasonable efforts to obtain written access agreements, in form and substance satisfactory to the Collateral Agent, providing access to Collateral with a book value in excess of $500,000 located on any premises not
owned by the Borrower or any other Loan Party in order to remove such Collateral from such premises during an Event of Default. 
  
 (n) Subordination. Cause all Indebtedness and other obligations now or hereafter owed by it to any of its Affiliates, to be subordinated in right
of payment and security to the Obligations owing to the Agents and the Lenders in accordance with a subordination agreement in form and substance satisfactory to the Agents. 
  
 (o) After Acquired Real Property. Upon the acquisition by it or any of its Subsidiaries of any After Acquired
Property, immediately so notify the Collateral Agent, setting forth with specificity a description of the interest acquired, the location of the real property, any structures or improvements thereon and either an appraisal or such Loan Party’s
good-faith estimate of the current value of such real property (for purposes of this Section, the “Current 
  

 51 

 
Value”). The Collateral Agent shall notify such Loan Party whether it intends to require a Mortgage and the other documents referred to below or
in the case of leasehold, a leasehold Mortgage or landlord’s waiver (pursuant to Section 6.01(m) hereof). Upon receipt of such notice requesting a Mortgage, the Person which has acquired such After Acquired Property shall immediately
furnish to the Collateral Agent the following, each in form and substance satisfactory to the Collateral Agent: (i) a Mortgage with respect to such real property and related assets located at the After Acquired Property, each duly executed by such
Person and in recordable form; (ii) evidence of the recording of the Mortgage referred to in clause (i) above in such office or offices as may be necessary or, in the opinion of the Collateral Agent, desirable to create and perfect a valid and
enforceable first priority lien on the property purported to be covered thereby or to otherwise protect the rights of the Agents and the Lenders thereunder, (iii) a Title Insurance Policy, (iv) a survey of such real property, certified to the
Collateral Agent and to the issuer of the Title Insurance Policy by a licensed professional surveyor reasonably satisfactory to the Collateral Agent, (v) Phase I Environmental Site Assessments with respect to such real property, certified to the
Collateral Agent by a company reasonably satisfactory to the Collateral Agent, (vi) in the case of a leasehold interest, a certified copy of the lease between the landlord and such Person with respect to such real property in which such Person has a
leasehold interest, and the certificate of occupancy with respect thereto, (vii) in the case of a leasehold interest, an attornment and nondisturbance agreement between the landlord (and any fee mortgagee) with respect to such real property and the
Collateral Agent, and (viii) such other documents or instruments (including guarantees and opinions of counsel) as the Collateral Agent may reasonably require. The Borrower shall pay all fees and expenses, including reasonable attorneys’ fees
and expenses, and all title insurance charges and premiums, in connection with each Loan Party’s obligations under this Section 6.01(o). 
  
 (p) Fiscal Year. Cause the Fiscal Year of the Borrower and its Subsidiaries to end on December 31 of each calendar year unless the Agents consent
to a change in such Fiscal Year (and appropriate related changes to this Agreement). 
  
 Section 6.02 Negative Covenants. So long as any principal of or interest on the Term Loan or any other Obligation (whether or not due) shall remain unpaid or any Lender shall have any Term Loan Commitment
hereunder, each Loan Party shall not: 
  
 (a) Liens, Etc.
Create, incur, assume or suffer to exist, or permit any of its Subsidiaries to create, incur, assume or suffer to exist, any Lien upon or with respect to any of its properties, whether now owned or hereafter acquired; file or suffer to exist under
the Uniform Commercial Code or any similar law or statute of any jurisdiction, a financing statement (or the equivalent thereof) that names it or any of its Subsidiaries as debtor; sign or suffer to exist any security agreement authorizing any
secured party thereunder to file such financing statement (or the equivalent thereof); sell any of its property or assets subject to an understanding or agreement, contingent or otherwise, to repurchase such property or assets (including sales of
accounts receivable) with recourse to it or any of its Subsidiaries or assign or otherwise transfer, or permit any of its Subsidiaries to assign or otherwise transfer, any account or other right to receive income; other than, as to all of the above,
Permitted Liens. 
  
 (b) Indebtedness. Create, incur,
assume, guarantee or suffer to exist, or otherwise become or remain liable with respect to, or permit any of its Subsidiaries to create, incur, 
  

 52 

 
assume, guarantee or suffer to exist or otherwise become or remain liable with respect to, any Indebtedness other than Permitted Indebtedness. 
  
 (c) Fundamental Changes; Dispositions. Wind-up, liquidate or
dissolve, or merge, consolidate or amalgamate with any Person, or convey, sell, lease or sublease, transfer or otherwise dispose of, whether in one transaction or a series of related transactions, all or any part of its business, property or assets,
whether now owned or hereafter acquired (or agree to do any of the foregoing), or purchase or otherwise acquire, whether in one transaction or a series of related transactions, all or substantially all of the assets of any Person (or any division
thereof) (or agree to do any of the foregoing), or permit any of its Subsidiaries to do any of the foregoing; provided, however, that 
  
 (i) any wholly-owned Subsidiary of any Loan Party may be merged into such Loan Party or another wholly-owned Subsidiary of such Loan Party, or may
consolidate with another wholly-owned Subsidiary of such Loan Party, so long as (A) no other provision of this Agreement would be violated thereby, (B) such Loan Party gives the Agents at least 30 days prior written notice of such merger or
consolidation, (C) no Default or Event of Default shall have occurred and be continuing either before or after giving effect to such transaction, (D) the Lenders’ rights in any Collateral, including, without limitation, the existence,
perfection and priority of any Lien thereon, are not adversely affected by such merger or consolidation and (E) the surviving Subsidiary, if any, is joined as a Loan Party hereunder and is a party to a Guaranty and a Security Agreement (and to the
extent required by the Collateral Agent, a Patent Security Agreement and a Trademark Security Agreement) and the Capital Stock of which Subsidiary is the subject of a Pledge Agreement, in each case, which is in full force and effect on the date of
and immediately after giving effect to such merger or consolidation; and 
  
 (ii) any Loan Party and its Subsidiaries may make Permitted Dispositions and Permitted Acquisitions. 
  
 (d) Change in Nature of Business. Make, or permit any of its Subsidiaries to make, any change in the nature of its business as described in
Section 5.01(l). 
  
 (e) Loans, Advances, Investments,
Etc. Make or commit or agree to make any loan, advance, guarantee of obligations, other extension of credit or capital contributions to, or hold or invest in or commit or agree to hold or invest in, or purchase or otherwise acquire or commit or
agree to purchase or otherwise acquire any shares of the Capital Stock, bonds, notes, debentures or other securities of, or make or commit or agree to make any other investment in, any other Person, or purchase or own any futures contract or
otherwise become liable for the purchase or sale of currency or other commodities at a future date in the nature of a futures contract, or permit any of its Subsidiaries to do any of the foregoing, except for: (i) investments existing on the date
hereof, as set forth on Schedule 6.02(e) hereto, but not any increase in the amount thereof as set forth in such Schedule or any other modification of the terms thereof, (ii) temporary loans and advances by the Borrower to its Subsidiaries
and by such Subsidiaries to the Borrower, made in the ordinary course of business and not exceeding in the aggregate at any one time outstanding $250,000, (iii) Permitted Investments, and (iv) Permitted Acquisitions. 
  

 53 

 (f) Lease Obligations. Create, incur or suffer to exist, or permit any of its Subsidiaries to
create, incur or suffer to exist, any obligations as lessee (i) for the payment of rent for any real or personal property in connection with any sale and leaseback transaction, or (ii) for the payment of rent for any real or personal property under
leases or agreements to lease other than (A) Capitalized Lease Obligations which would not cause the aggregate amount of all obligations under Capitalized Leases entered into after the Effective Date owing by all Loan Parties and their Subsidiaries
in any Fiscal Year to exceed the amounts set forth in subsection (g) of this Section 6.02, and (B) Operating Lease Obligations which would not cause the aggregate amount of all Operating Lease Obligations owing by all Loan Parties and
their Subsidiaries in any Fiscal Year to exceed $2,500,000. 
  
 (g) Capital Expenditures. Make or commit or agree to make, or permit any of its Subsidiaries to make or commit or agree to make, any Capital Expenditure (by purchase or Capitalized Lease) that would cause the aggregate amount of all
Capital Expenditures made by the Loan Parties and their Subsidiaries to exceed $2,500,000 in any Fiscal Year; provided, however, that, notwithstanding the foregoing, this Section 6.02(g) shall not apply to Capital Expenditures
deemed to occur in connection with a Permitted Acquisition to the extent such Capital Expenditure is funded substantially in part from proceeds of the issuance of Subordinated Debt or the Borrower’s Capital Stock. 
  
 (h) Restricted Payments. (i) Declare or pay any dividend or other
distribution, direct or indirect, on account of any Capital Stock of any Loan Party or any of its Subsidiaries, now or hereafter outstanding, (ii) make any repurchase, redemption, retirement, defeasance, sinking fund or similar payment, purchase or
other acquisition for value, direct or indirect, of any Capital Stock of any Loan Party or any direct or indirect parent of any Loan Party, now or hereafter outstanding, (iii) make any payment to retire, or to obtain the surrender of, any
outstanding warrants, options or other rights for the purchase or acquisition of shares of any class of Capital Stock of any Loan Party, now or hereafter outstanding, or (iv) pay any management fees or any other fees or expenses (including the
reimbursement thereof by any Loan Party or any of its Subsidiaries) pursuant to any management, consulting or other services agreement to any of the shareholders or other equityholders of any Loan Party or any of its Subsidiaries or other
Affiliates, or to any other Subsidiaries or Affiliates of any Loan Party; provided, however, (A) the Borrower and its Subsidiaries may make Permitted Restricted Payments at any time, (B) any Subsidiary of the Borrower may pay dividends
to the Borrower, and (C) the Borrower may pay dividends in the form of common Capital Stock or Permitted Preferred Stock; provided that no such payment under clauses (A) or (B) above shall be made if an Event of Default shall have occurred
and be continuing or would result from the making of any such payment. 
  
 (i) Federal Reserve Regulations. Permit any proceeds of the Term Loan to be used for any purpose that would cause the Term Loan to be a margin loan under the provisions of Regulation T, U or X of the Board. 
  
 (j) Transactions with Affiliates. Enter into, renew, extend or be a
party to, or permit any of its Subsidiaries to enter into, renew, extend or be a party to, any transaction or series of related transactions (including, without limitation, the purchase, sale, lease, transfer or exchange of property or assets of any
kind or the rendering of services of any kind) with any Affiliate, except (i) in the ordinary course of business in a manner and to an extent consistent with 
  

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past practice and necessary or desirable for the prudent operation of its business, for fair consideration and on terms no less favorable to it or its
Subsidiaries than would be obtainable in a comparable arm’s length transaction with a Person that is not an Affiliate thereof, (ii) transactions with another Loan Party, (iii) transactions involving the issuance of the Borrower’s Capital
Stock as permitted by Section 6.02(1) and (iv) transactions permitted by Section 6.02(e) or (h). 
  
 (k) Limitations on Dividends and Other Payment Restrictions Affecting Subsidiaries. Create or otherwise cause, incur, assume, suffer or permit to
exist or become effective any consensual encumbrance or restriction of any kind on the ability of any Subsidiary of any Loan Party (i) to pay dividends or to make any other distribution on any shares of Capital Stock of such Subsidiary owned by any
Loan Party or any of its Subsidiaries, (ii) to pay or prepay or to subordinate any Indebtedness owed to any Loan Party or any of its Subsidiaries, (iii) to make loans or advances to any Loan Party or any of its Subsidiaries or (iv) to transfer any
of its property or assets to any Loan Party or any of its Subsidiaries, or permit any of its Subsidiaries to do any of the foregoing; provided, however, that nothing in any of clauses (i) through (iv) of this Section 6.02(k)
shall prohibit or restrict compliance with: 
  
 (A) this
Agreement and the other Loan Documents; 
  
 (B) any agreements in
effect on the date of this Agreement and described on Schedule 6.02(k); 
  
 (C) any applicable law, rule or regulation (including, without limitation, applicable currency control laws and applicable state corporate statutes restricting the payment of dividends in certain circumstances);

  
 (D) in the case of clause (iv), any agreement setting forth
customary restrictions on the subletting, assignment or transfer of any property or asset that is leased or licensed; or 
  
 (E) in the case of clause (iv), any agreement, instrument or other document evidencing a Permitted Lien that restricts, on customary terms, the transfer
of any property or assets subject thereto. 
  
 (l) Limitation
on Issuance of Capital Stock. Except for the issuance or sale of common stock or Permitted Preferred Stock by the Borrower, issue or sell or enter into any agreement or arrangement for the issuance and sale of, or permit any of its Subsidiaries
to issue or sell or enter into any agreement or arrangement for the issuance and sale of, any shares of its Capital Stock, any securities convertible into or exchangeable for its Capital Stock or any warrants. 
  
 (m) Modifications of Indebtedness, Organizational Documents and Certain
Other Agreements; Etc. (i) Amend, modify or otherwise change (or permit the amendment, modification or other change in any manner of) any of the provisions of any of its or its Subsidiaries’ Indebtedness or of any instrument or agreement
(including, without limitation, any purchase agreement, indenture, loan agreement or security agreement) relating to any such Indebtedness if such amendment, modification or change would shorten the final maturity or average life to maturity of, or
require any payment to be made earlier than the date originally scheduled on, such Indebtedness, would increase the interest rate applicable to such Indebtedness, 
  

 55 

 
would change the subordination provisions, if any, of such Indebtedness, or would otherwise be adverse to the Lenders or the issuer of such Indebtedness in
any respect, (ii) except for the Obligations, make any voluntary or optional payment, prepayment, redemption, defeasance, sinking fund payment or other acquisition for value of any of its or its Subsidiaries’ Indebtedness (including, without
limitation, by way of depositing money or securities with the trustee therefor before the date required for the purpose of paying any portion of such Indebtedness when due), or refund, refinance, replace or exchange any other Indebtedness for any
such Indebtedness (except to the extent such Indebtedness is otherwise expressly permitted by the definition of “Permitted Indebtedness”), or make any payment, prepayment, redemption, defeasance, sinking fund payment or repurchase of any
outstanding Indebtedness as a result of any asset sale, change of control, issuance and sale of debt or equity securities or similar event, or give any notice with respect to any of the foregoing, (iii) except as permitted by Section 6.02(c),
amend, modify or otherwise change its name, jurisdiction of organization, organizational identification number or FEIN or (iv) amend, modify or otherwise change its certificate of incorporation or bylaws (or other similar organizational documents),
including, without limitation, by the filing or modification of any certificate of designation, or any agreement or arrangement entered into by it, with respect to any of its Capital Stock (including any shareholders’ agreement), or enter into
any new agreement with respect to any of its Capital Stock, except any such amendments, modifications or changes or any such new agreements or arrangements pursuant to this clause (iv) that either individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. 
  
 (n) Investment Company Act of 1940. Engage in any business, enter into any transaction, use any securities or take any other action or permit any of its Subsidiaries to do any of the foregoing, that would cause it or any of its
Subsidiaries to become subject to the registration requirements of the Investment Company Act of 1940, as amended, by virtue of being an “investment company” or a company “controlled” by an “investment company” not
entitled to an exemption within the meaning of such Act. 
  
 (o)
Compromise of Accounts Receivable. Compromise or adjust any Account Receivable (or extend the time of payment thereof) or grant any discounts, allowances or credits or permit any of its Subsidiaries to do so other than, provided no Default or
Event of Default has occurred and is continuing, in the ordinary course of its business. 
  
 (p) ERISA. (i) Engage, or permit any ERISA Affiliate to engage, in any transaction described in Section 4069 of ERISA; (ii) engage, or permit any ERISA Affiliate to engage, in any prohibited transaction
described in Section 406 of ERISA or 4975 of the IRC for which a statutory or class exemption is not available or a private exemption has not previously been obtained from the U.S. Department of Labor; (iii) adopt or permit any ERISA Affiliate to
adopt any employee welfare benefit plan within the meaning of Section 3(1) of ERISA which provides benefits to employees after termination of employment other than as required by Section 601 of ERISA or applicable law; (iv) fail to make any
contribution or payment to any Multiemployer Plan which it or any ERISA Affiliate may be required to make under any agreement relating to such Multiemployer Plan, or any law pertaining thereto; or (v) fail, or permit any ERISA Affiliate to fail, to
pay any required installment or any other payment required under Section 412 of the IRC on or before the due date for such installment or other payment. 
  

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 (q) Environmental. Permit the use, handling, generation, storage, treatment, release or disposal
of Hazardous Materials at any property owned or leased by it or any of its Subsidiaries, except in compliance with Environmental Laws and so long as such use, handling, generation, storage, treatment, release or disposal of Hazardous Materials does
not result in a Material Adverse Effect. 
  
 (r) Certain
Agreements. Agree to any materially adverse amendment or other materially adverse change to or materially adverse waiver of any of its rights under any Material Contract. 
  
 Section 6.03 Financial Covenants. So long as any principal of or interest on the Term Loan or any other Obligation
(whether or not due) shall remain unpaid or any Lender shall have any Term Loan Commitment hereunder, each Loan Party shall not: 
  
 (a) Leverage Ratio. Permit the Leverage Ratio as of the last day of each fiscal quarter to be greater than 3.25 to 1.0. 
  
 (b) Consolidated Net Worth. Permit Consolidated Net Worth of the
Borrower and its Subsidiaries as of the last day of each fiscal quarter to be less than 100% of the principal amount of the Term Loan outstanding at such time. 
  

(c) Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage Ratio of the Borrower and its Subsidiaries as of the last day of each fiscal
quarter to be as follows: 
  
 (i) At any time that the Leverage
Ratio for any fiscal quarter, as determined in Section 6.03(a) above, is equal to or greater than 1.75 to 1.0, the Fixed Charge Coverage Ratio shall be equal to or greater than 1.5 to 1.0 for such fiscal quarter. 
  
 (ii) At any time that the Leverage Ratio is less than 1.75 to 1.0 for any
fiscal quarter, as determined in Section 6.03(a) above, the Fixed Charge Coverage Ratio shall be equal to or greater than 1.12 to 1.0 for such fiscal quarter. 
  
 (d) Minimum Qualified Cash. Permit (i) as of each Cash Test Date from the Effective Date through March 31, 2004, the
amount of Qualified Cash of the Borrower to be less than $10,000,000; and (ii) as of each Cash Test Date from and after April 1, 2004, the amount of Qualified Cash of the Borrower to be less than $15,000,000. 
  
 (e) Minimum Qualified Cash (Milestone and Elan Effect). Permit (i) as
of each Cash Test Date from the Effective Date through March 31, 2004, the amount of Qualified Cash of the Borrower to be less than the sum of (A) $7,000,000 plus (B) the aggregate amount of all then outstanding Milestone Accrual Amounts
plus (C) the applicable Elan Accrual Amount, if any; and (ii) as of each Cash Test Date from and after April 1, 2004, the amount of Qualified Cash of the Borrower to be less than the sum of (A) $12,000,000 plus (B) the aggregate amount
of all then outstanding Milestone Accrual Amounts plus (C) the applicable Elan Accrual Amount, if any. 
  

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 ARTICLE VII 
  
 MANAGEMENT, COLLECTION AND STATUS OF 
 ACCOUNTS RECEIVABLE AND OTHER COLLATERAL 
  
 Section 7.01 Collection of Accounts Receivable; Management of Collateral. 
  
 (a) After the occurrence and during the continuance of an Event of Default, the Collateral Agent may send a notice of assignment and/or notice of the
Lenders’ security interest to any and all Account Debtors and, thereafter, the Collateral Agent shall have the sole right to collect the Accounts Receivable and payment intangibles of the Borrower and its Subsidiaries and/or take possession of
the Collateral and the books and records relating thereto. After the occurrence and during the continuation of an Event of Default, the Borrower and its Subsidiaries shall not, without prior written consent of the Collateral Agent, grant any
extension of time of payment of any Account Receivable or payment intangible, compromise or settle any Account Receivable or payment intangible for less than the full amount thereof, release, in whole or in part, any Person or property liable for
the payment thereof, or allow any credit or discount whatsoever thereon. 
  
 (b) The Borrower hereby appoints each Agent or its designee on behalf of such Agent as the Borrower’s attorney-in-fact with power exercisable during the continuance of an Event of Default to (i) endorse the
Borrower’s name upon any notes, acceptances, checks, drafts, money orders or other evidences of payment relating to the Accounts Receivable or payment intangibles of the Borrower, (ii) sign the Borrower’s name on any invoice or bill of
lading relating to any of the Accounts Receivable or payment intangibles of the Borrower, drafts against Account Debtors with respect to Accounts Receivable or payment intangibles of the Borrower, assignments and verifications of Accounts Receivable
or payment intangibles and notices to Account Debtors with respect to Accounts Receivable or payment intangibles of the Borrower, (iii) send verification of Accounts Receivable of the Borrower, and (iv) after the occurrence and during the
continuation of an Event of Default, notify the Postal Service authorities to change the address for delivery of mail addressed to the Borrower to such address as such Agent may designate and to do all other acts and things necessary to carry out
this Agreement. All acts of said attorney or designee are hereby ratified and approved, and said attorney or designee shall not be liable for any acts of omission or commission (other than acts of omission or commission constituting gross negligence
or willful misconduct as determined by a final judgment of a court of competent jurisdiction), or for any error of judgment or mistake of fact or law; this power being coupled with an interest is irrevocable until the Term Loan and all other
Obligations under the Loan Documents are paid in full. 
  
 (c)
Nothing herein contained shall be construed to constitute any Agent as agent of the Borrower for any purpose whatsoever, and the Agents shall not be responsible or liable for any shortage, discrepancy, damage, loss or destruction of any part of the
Collateral wherever the same may be located and regardless of the cause thereof (other than from acts of omission or commission constituting gross negligence or willful misconduct as determined by a final judgment of a court of competent
jurisdiction). The Agents shall not, under any circumstance or in any event whatsoever, have any liability for any error or omission or delay of any kind occurring in the settlement, collection or payment of any of the Accounts Receivable of the
Borrower or any instrument received in payment thereof or for any damage resulting therefrom (other than acts of omission or commission constituting gross negligence or willful misconduct as 
  

 58 

 
determined by a final judgment of a court of competent jurisdiction). The Agents, by anything herein or in any assignment or otherwise, do not assume any of
the obligations under any contract or agreement assigned to any Agent and shall not be responsible in any way for the performance by the Borrower of any of the terms and conditions thereof. 
  
 (d) If any Account Receivable of the Borrower includes a charge for any tax
payable to any Governmental Authority, each Agent is hereby authorized (but in no event obligated) in its discretion to pay the amount thereof to the proper taxing authority for the Borrower’s account and to charge the Borrower therefor. The
Borrower shall notify the Agents if any Account Receivable of the Borrower includes any taxes due to any such Governmental Authority and, in the absence of such notice, the Agents shall have the right to retain the full proceeds of such Account
Receivable and shall not be liable for any taxes that may be due by reason of the sale and delivery creating such Account Receivable. 
  
 (e) Notwithstanding any other terms set forth in the Loan Documents, the rights and remedies of the Agents and the Lenders herein provided, and the
obligations of the Loan Parties set forth herein, are cumulative of, may be exercised singly or concurrently with, and are not exclusive of, any other rights, remedies or obligations set forth in any other Loan Document or as provided by law.

  
 Section 7.02 Accounts Receivable Documentation. After
the occurrence and during the continuance of an Event of Default, the Borrower will, at such intervals as the Agents may require, execute and deliver confirmatory written assignments of the Accounts Receivable to the Agents. In addition, the
Borrower shall notify the Agents of any non-compliance in respect of the representations, warranties and covenants contained in Section 7.03. The items to be provided under this Section 7.02 are to be in form reasonably satisfactory to
the Agents and are to be executed and delivered to the Agents from time to time solely for their convenience in maintaining records of the Collateral. The Borrower’s failure to give any of such items to the Agents shall not affect, terminate,
modify or otherwise limit the Collateral Agent’s Lien on the Collateral. The Borrower shall not re-date any invoice or sale or make sales on extended dating beyond that customary in the Borrower’s industry, and shall not re-bill any
Accounts Receivable without promptly disclosing the same to the Agents and providing the Agents with a copy of such re- billing, identifying the same as such. If the Borrower becomes aware of anything materially detrimental to any of the
Borrower’s customers’ credit, the Borrower will promptly advise the Agents thereof. 
  
 Section 7.03 Status of Accounts Receivable and Other Collateral. With respect to Collateral of any Loan Party at the time the Collateral becomes subject to the Collateral Agent’s Lien, each Loan Party
covenants, represents and warrants: (a) such Loan Party shall be the sole owner, free and clear of all Liens (except for the Liens granted in the favor of the Collateral Agent for the benefit of the Lenders and Permitted Liens), and shall be fully
authorized to sell, transfer, pledge and/or grant a security interest in each and every item of said Collateral; (b) each Account Receivable shall be a good and valid account representing a bona fide indebtedness incurred by the Account Debtor
therein named, for a fixed sum as set forth in the invoice relating thereto; (c) no Account Receivable shall be subject to any defense, offset, counterclaim, discount or allowance except as may be stated in the invoice relating thereto, discounts
and allowances as may be customary in such Loan Party’s business and as otherwise disclosed to the Agents; (d) none of the 
  

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transactions underlying or giving rise to any Account Receivable shall violate any applicable state or federal laws or regulations, and all documents
relating thereto shall be legally sufficient under such laws or regulations and shall be legally enforceable in accordance with their terms; (e) no agreement under which any deduction or offset of any kind, other than normal trade discounts, may be
granted or shall have been made by such Loan Party at or before the time such Account Receivable is created; (f) all agreements, instruments and other documents relating to any Account Receivable shall be true and correct and in all material
respects what they purport to be; (g) all signatures and endorsements that appear on all material agreements, instruments and other documents relating to any Account Receivable shall be genuine and all signatories and endorsers shall have full
capacity to contract; (h) such Loan Party shall maintain books and records pertaining to said Collateral in such detail, form and scope as the Agents shall reasonably require; (i) such Loan Party shall immediately notify the Agents if any Account
Receivable arises out of contracts with any Governmental Authority, and will execute any instruments and take any steps required by the Agents in order that all monies due or to become due under any such contract shall be assigned to the Collateral
Agent and notice thereof given to such Governmental Authority under the Federal Assignment of Claims Act or any similar state or local law; (j) such Loan Party will, immediately upon learning thereof, report to the Agents any material loss or
destruction of, or substantial damage to, any of the Collateral, and any other matters affecting the value, enforceability or collectability of any of the Collateral; (k) if any amount payable under or in connection with any Account Receivable is
evidenced by a promissory note or other instrument, such promissory note or instrument shall be immediately pledged, endorsed, assigned and delivered to the Collateral Agent for the benefit of the Lenders as additional Collateral; (1) such Loan
Party shall not re-date any invoice or sale or make sales on extended dating beyond that which is customary in the ordinary course of its business and in the industry; (m) such Loan Party shall conduct a physical count of its Inventory at such
intervals as any Agent may request and such Loan Party shall promptly supply the Agents with a copy of such count accompanied by a report of the value (based on the lower of cost (on a first in first out basis) and market value) of such Inventory;
and (n) such Loan Party is not and shall not be entitled to pledge any Agent’s or any Lender’s credit on any purchases or for any purpose whatsoever. 
  

Section 7.04 Collateral Custodian. Upon the occurrence and during the continuance of any Default or Event of Default, the Collateral Agent may
at any time and from time to time employ and maintain on the premises of any Loan Party a custodian selected by the Collateral Agent who shall have full authority to do all acts necessary to protect the Agents’ and the Lenders’ interests.
Each Loan Party hereby agrees to, and to cause its Subsidiaries to, cooperate with any such custodian and to do whatever the Collateral Agent may reasonably request to preserve the Collateral. All costs and expenses incurred by the Collateral Agent
by reason of the employment of the custodian shall be the responsibility of the Borrower and charged to the Loan Account. 
  
 ARTICLE VIII 
  
 EVENTS OF DEFAULT 
  
 Section 8.01 Events of Default. If any of the following Events of Default shall occur and be continuing: 
  

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 (a) the Borrower shall fail to pay any principal of or interest on the Term Loan, any Collateral Agent
Advance or any fee, indemnity or other amount payable under this Agreement or any other Loan Document within 2 days of when such payment is due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise); 
  
 (b) any representation or warranty made or deemed made by or on behalf of
any Loan Party or by any officer of the foregoing under or in connection with any Loan Document or under or in connection with any report, certificate, or other document delivered to any Agent or any Lender pursuant to any Loan Document shall have
been incorrect in any material respect when made or deemed made; 
  
 (c) any Loan Party shall fail to perform or comply with any covenant or agreement contained in Section 6.01(a), Section 6.01(c), Section 6.01(f), Section 6.01(h), Section 6.02 or Section 6.03, or any Loan Party shall fail to perform or
comply with any material covenant or agreement contained in any Security Agreement to which it is a party, any Pledge Agreement to which it is a party or any Mortgage to which it is a party; provided that any failure to comply with Section
6.02(a) shall be subject to the 20 day cure period set forth in Section 8.01(d) if such failure to comply arises from the existence of a Lien that is not a Permitted Lien, the Loan Parties did not affirmatively grant such Lien and such Lien is
subordinate to the Liens securing the Obligations. 
  
 (d) any
Loan Party shall fail to perform or comply with any other term, covenant or agreement contained in any Loan Document to be performed or observed by it and, except as set forth in subsections (a), (b) and (c) of this Section 8.01, such
failure, if capable of being remedied, shall remain unremedied for 20 days after the earlier of the date a senior officer of any Loan Party becomes aware of such failure and the date written notice of such default shall have been given by any Agent
to such Loan Party; 
  
 (e) the Borrower or any of its
Subsidiaries shall fail to pay any principal of or interest on any of its Indebtedness (excluding Indebtedness evidenced by this Agreement) in excess of $500,000, or any premium thereon, when due (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise) and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Indebtedness, or any other default under any agreement or instrument relating to
any such Indebtedness, or any other event, shall occur and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such default or event is to accelerate, or to permit the acceleration
of, the maturity of such Indebtedness; or any such Indebtedness shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), redeemed, purchased or defeased or an offer to prepay,
redeem, purchase or defease such Indebtedness shall be required to be made, in each case, prior to the stated maturity thereof; 
  
 (f) the Borrower or any of its Subsidiaries (i) shall institute any proceeding or voluntary case seeking to adjudicate it a bankrupt or insolvent, or
seeking dissolution, liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking the entry
of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for any such Person or for any substantial part of its property, (ii) shall be generally not paying its debts as such debts become due or shall
admit in writing its 
  

 61 

 
inability to pay its debts generally, (iii) shall make a general assignment for the benefit of creditors, or (iv) shall take any action to authorize or
effect any of the actions set forth above in this subsection (f). 
  
 (g) any proceeding shall be instituted against the Borrower or any of its Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution, liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for any such Person or for any substantial part of its property, and either such
proceeding shall remain undismissed or unstayed for a period of 30 days or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against any such Person or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its property) shall occur; 
  
 (h) any provision of any Loan Document shall at any time for any reason (other than pursuant to the express terms thereof) cease to be valid and binding
on or enforceable against any Loan Party intended to be a party thereto, or the validity or enforceability thereof shall be contested by any party thereto, or a proceeding shall be commenced by any Loan Party or any Governmental Authority having
jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof, or any Loan Party shall deny in writing that it has any liability or obligation purported to be created under any Loan Document; 
  
 (i) any Security Agreement, any Pledge Agreement, any Mortgage or any other
security document, after delivery thereof pursuant hereto, shall for any reason fail or cease to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien in favor of the Collateral Agent
for the benefit of the Lenders on any Collateral purported to be covered thereby; 
  
 (j) any bank at which any deposit account of any Loan Party is maintained shall fail to comply with any of the terms of any deposit accounts control agreement or similar agreement to which such bank is a party or any
securities intermediary, commodity intermediary or other financial institution at any time in custody, control or possession of any investment property of any Loan Party shall fail to comply with any of the terms of any investment property control
agreement to which such Person is a party; 
  
 (k) one or more
judgments or orders for the payment of money exceeding $250,000 in the aggregate shall be rendered against the Borrower or any of its Subsidiaries and remain unsatisfied and either (i) enforcement proceedings shall have been commenced by any
creditor upon any such judgment or order, or (ii) there shall be a period of 10 consecutive days after entry thereof during which a stay of enforcement of any such judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect; provided, however, that any such judgment or order shall not give rise to an Event of Default under this subsection (k) if and for so long as (A) the amount of such judgment or order is covered by a valid and binding
policy of insurance between the defendant and the insurer covering full payment thereof (subject to customary deductibles) and (B) such insurer has been notified, and has not disputed the claim made for payment, of the amount of such judgment or
order; 
  

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 (l) the Borrower or any of its Subsidiaries is enjoined, restrained or in any way prevented by the order
of any court or any Governmental Authority from conducting all or any material part of its business for more than 15 days; 
  
 (m) any material damage to, or loss, theft or destruction of, any Collateral (unless the same is covered by insurance, the carrier has been notified of
the loss and has not disputed the coverage of such loss, and (i) if the affected Collateral consists of Inventory, the Inventory has been replaced within 60 days after the occurrence of the event and (ii) if the affected Collateral consists of
Equipment, the Equipment has been replaced or restored within 90 days after the occurrence of the event) or any strike, lockout, labor dispute, embargo, condemnation, act of God or public enemy, or other casualty which causes, for more than 15 days,
the cessation or substantial curtailment of revenue producing activities at any facility of any Loan Party, if any such event or circumstance could reasonably be expected to result in a Material Adverse Effect; 
  
 (n) any cessation of a substantial part of the business of any Loan Party
for a period which materially and adversely affects the ability of any Loan Party to continue its business on a profitable basis; 
  
 (o) any Drug Contract is terminated by the manufacturer thereunder or expires by its terms unless the Loan Party that is a party thereto has entered into
a replacement Drug Contract with respect to the subject drug(s) prior to such termination or expiration, which termination or expiration could reasonably be expected to result in a Material Adverse Effect; 
  
 (p) the loss, suspension or revocation of, or failure to renew, any license
or permit now held or hereafter acquired by the Borrower or any of its Subsidiaries, if such loss, suspension, revocation or failure to renew could reasonably be expected to result in a Material Adverse Effect; 
  
 (q) the indictment, or the threatened indictment of the Borrower or any of
its Subsidiaries under any criminal statute, or commencement or threatened commencement of criminal or civil proceedings against any Loan Party, pursuant to which statute or proceedings the penalties or remedies sought or available include
forfeiture to any Governmental Authority of any material portion of the property of such Person; 
  
 (r) any Loan Party or any of its ERISA Affiliates shall have made a complete or partial withdrawal from a Multiemployer Plan, and, as a result of such
complete or partial withdrawal, any Loan Party or any of its ERISA Affiliates incurs a withdrawal liability in an annual amount exceeding $500,000; or a Multiemployer Plan enters reorganization status under Section 4241 of ERISA, and, as a result
thereof any Loan Party’s or any of its ERISA Affiliates’ annual contribution requirements with respect to such Multiemployer Plan increases in an annual amount exceeding $500,000; 
  
 (s) any Termination Event with respect to any Employee Plan shall have
occurred, and, 30 days after notice thereof shall have been given to any Loan Party by any Agent, (i) such Termination Event (if correctable) shall not have been corrected, and (ii) the then current value of such Employee Plan’s vested benefits
exceeds the then current value of assets allocable to such benefits in such Employee Plan by more than $500,000 (or, in the case of a 
  

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 Termination Event involving liability under Section 409, 502(i), 502(1), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212
of ERISA or Section 4971 or 4975 of the IRC, the liability is in excess of such amount); 
  
 (t) the Borrower or any of its Subsidiaries shall be liable for any Environmental Liabilities and Costs the payment of which could reasonably be expected to result in a Material Adverse Effect; or 
  
 (u) a Change of Control shall have occurred. 
  
 then, and in any such event, the Collateral Agent shall, at the request of
the Required Lenders, by notice to the Borrower, declare the Term Loan to be due and payable, whereupon the aggregate principal of the Term Loan, all accrued and unpaid interest thereon, all fees and all other amounts payable under this Agreement
and the other Loan Documents shall become due and payable immediately, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by each Loan Party and (iii) exercise any and all of its other rights
and remedies under applicable law, hereunder and under the other Loan Documents; provided, however, that upon the occurrence of any Event of Default described in subsection (f) or (g) of this Section 8.01, without any
notice to any Loan Party or any other Person or any act by any Agent or any Lender, the Term Loan, together with all accrued and unpaid interest thereon, all fees and all other amounts due under this Agreement and the other Loan Documents shall
become due and payable automatically and immediately, without presentment, demand, protest or notice of any kind, all of which are expressly waived by each Loan Party. 
  
 ARTICLE IX 
  
 AGENTS 
  
 Section 9.01 Appointment. Each Lender hereby irrevocably appoints and authorizes the Administrative Agent and the Collateral Agent to perform the
duties of each such Agent as set forth in this Agreement including: (i) to receive on behalf of each Lender any payment of principal of or interest on the Term Loan outstanding hereunder and all other amounts accrued hereunder for the account of the
Lenders and paid to such Agent, and, subject to Section 2.02 of this Agreement, to distribute promptly to each Lender its Pro Rata Share of all payments so received; (ii) to distribute to each Lender copies of all material notices and
agreements received by such Agent and not required to be delivered to each Lender pursuant to the terms of this Agreement, provided that the Agents shall not have any liability to the Lenders for any Agent’s inadvertent failure to distribute
any such notices or agreements to the Lenders; (iii) to maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the Obligations, the Term Loan, and related matters and to maintain, in accordance
with its customary business practices, ledgers and records reflecting the status of the Collateral and related matters; (iv) to execute or file any and all financing or similar statements or notices, amendments, renewals, supplements, documents,
instruments, proofs of claim, notices and other written agreements with respect to this Agreement or any other Loan Document; (v) to make the Term Loan and Collateral Agent Advances, for such Agent or on behalf of the applicable Lenders as provided
in this Agreement or any other Loan Document; (vi) to perform, exercise, and enforce any and all other rights and remedies of the Lenders with respect to the Loan Parties, the 
  

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 Obligations, or otherwise related to any of same to the extent reasonably incidental to the exercise by such Agent of the
rights and remedies specifically authorized to be exercised by such Agent by the terms of this Agreement or any other Loan Document; (vii) to incur and pay such fees necessary or appropriate for the performance and fulfillment of its functions and
powers pursuant to this Agreement or any other Loan Document; and (viii) subject to Section 9.03 of this Agreement, to take such action as such Agent deems appropriate on its behalf to administer the Term Loan and the Loan Documents and to
exercise such other powers delegated to such Agent by the terms hereof or the other Loan Documents (including, without limitation, the power to give or to refuse to give notices, waivers, consents, approvals and instructions and the power to make or
to refuse to make determinations and calculations) together with such powers as are reasonably incidental thereto to carry out the purposes hereof and thereof. As to any matters not expressly provided for by this Agreement and the other Loan
Documents (including, without limitation, enforcement or collection of the Term Loan), the Agents shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully
protected in so acting or refraining from acting) upon the instructions of the Required Lenders, and such instructions of the Required Lenders shall be binding upon all Lenders and all makers of the Term Loan; provided, however, that
the Agents shall not be required to take any action which, in the reasonable opinion of any Agent, exposes such Agent to liability or which is contrary to this Agreement or any other Loan Document or applicable law. 
  
 Section 9.02 Nature of Duties. The Agents shall have no duties or
responsibilities except those expressly set forth in this Agreement or in the other Loan Documents. The duties of the Agents shall be mechanical and administrative in nature. The Agents shall not have by reason of this Agreement or any other Loan
Document a fiduciary relationship in respect of any Lender. Nothing in this Agreement or any other Loan Document, express or implied, is intended to or shall be construed to impose upon the Agents any obligations in respect of this Agreement or any
other Loan Document except as expressly set forth herein or therein. Each Lender shall make its own independent investigation of the financial condition and affairs of the Loan Parties in connection with the making and the continuance of the Term
Loan hereunder and shall make its own appraisal of the creditworthiness of the Loan Parties and the value of the Collateral, and the Agents shall have no duty or responsibility, either initially or on a continuing basis, to provide any Lender with
any credit or other information with respect thereto, whether coming into their possession before the Term Loan is made hereunder or at any time or times thereafter, provided that, upon the reasonable request of a Lender, each Agent shall provide to
such Lender any documents or reports delivered to such Agent by the Loan Parties pursuant to the terms of this Agreement or any other Loan Document. If any Agent seeks the consent or approval of the Required Lenders to the taking or refraining from
taking any action hereunder, such Agent shall send notice thereof to each Lender. Each Agent shall promptly notify each Lender any time that the Required Lenders have instructed such Agent to act or refrain from acting pursuant hereto. 

 
 Section 9.03 Rights, Exculpation, Etc. The Agents and their
directors, officers, agents or employees shall not be liable for any action taken or omitted to be taken by them under or in connection with this Agreement or the other Loan Documents, except for their own gross negligence or willful misconduct as
determined by a final judgment of a court of competent jurisdiction. Without limiting the generality of the foregoing, the Agents (i) may treat the payee of any portion of the Term Loan as the owner thereof until the Collateral Agent receives
written notice of the assignment or transfer thereof, pursuant to Section 10.07 hereof, signed by such 
  

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 payee and in form satisfactory to the Collateral Agent; (ii) may consult with legal counsel (including, without
limitation, counsel to any Agent or counsel to the Loan Parties), independent public accountants, and other experts selected by any of them and shall not be liable for any action taken or omitted to be taken in good faith by any of them in
accordance with the advice of such counsel or experts; (iii) make no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, certificates, warranties or representations made in or in connection with
this Agreement or the other Loan Documents; (iv) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement or the other Loan Documents on the part of any
Person, the existence or possible existence of any Default or Event of Default, or to inspect the Collateral or other property (including, without limitation, the books and records) of any Person; (v) shall not be responsible to any Lender for the
due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; and (vi) shall not be deemed to have made
any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Collateral Agent’s Lien thereon, or any certificate prepared by any Loan Party in connection
therewith, nor shall the Agents be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral. The Agents shall not be liable for any apportionment or distribution of payments made in good faith
pursuant to Section 3.04, and if any such apportionment or distribution is subsequently determined to have been made in error the sole recourse of any Lender to whom payment was due but not made, shall be to recover from other Lenders any
payment in excess of the amount which they are determined to be entitled. The Agents may at any time request instructions from the Lenders with respect to any actions or approvals which by the terms of this Agreement or of any of the other Loan
Documents the Agents are permitted or required to take or to grant, and if such instructions are promptly requested, the Agents shall be absolutely entitled to refrain from taking any action or to withhold any approval under any of the Loan
Documents until they shall have received such instructions from the Required Lenders. Without limiting the foregoing, no Lender shall have any right of action whatsoever against any Agent as a result of such Agent acting or refraining from acting
under this Agreement or any of the other Loan Documents in accordance with the instructions of the Required Lenders. 
  
 Section 9.04 Reliance. Each Agent shall be entitled to rely upon any written notices, statements, certificates, orders or other documents or any
telephone message believed by it in good faith to be genuine and correct and to have been signed, sent or made by the proper Person, and with respect to all matters pertaining to this Agreement or any of the other Loan Documents and its duties
hereunder or thereunder, upon advice of counsel selected by it. 
  
 Section 9.05 Indemnification. To the extent that any Agent is not reimbursed and indemnified by any Loan Party, the Lenders will reimburse and indemnify such Agent from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses, advances or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against such Agent in any way relating to or arising out of this Agreement
or any of the other Loan Documents or any action taken or omitted by such Agent under this Agreement or any of the other Loan Documents, in proportion to each Lender’s Pro Rata Share, including, without limitation, advances and disbursements
made pursuant to Section 9.08; provided, however, that no Lender shall be liable for any portion of such liabilities, obligations, 
  

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 losses, damages, penalties, actions, judgments, suits, costs, expenses, advances or disbursements for which there has
been a final judicial determination that such liability resulted from such Agent’s gross negligence or willful misconduct. The obligations of the Lenders under this Section 9.05 shall survive the payment in full of the Term Loan and the
termination of this Agreement. 
  
 Section 9.06 Agents
Individually. With respect to its Pro Rata Share of the Total Term Loan Commitment hereunder and the portion of the Term Loan made by it, each Agent shall have and may exercise the same rights and powers hereunder and is subject to the same
obligations and liabilities as and to the extent set forth herein for any other Lender or maker of the Term Loan. The terms “Lenders” or “Required Lenders” or any similar terms shall, unless the context clearly otherwise
indicates, include each Agent in its individual capacity as a Lender or one of the Required Lenders. Each Agent and its Affiliates may accept deposits from, lend money to, and generally engage in any kind of banking, trust or other business with the
Borrower as if it were not acting as an Agent pursuant hereto without any duty to account to the other Lenders. 
  
 Section 9.07 Successor Agent. (a) Each Agent may resign from the performance of all its functions and duties hereunder and under the other Loan
Documents at any time by giving at least 30 Business Days prior written notice to the Borrower and each Lender. Such resignation shall take effect upon the acceptance by a successor Agent of appointment pursuant to clauses (b) and (c) below or as
otherwise provided below. 
  
 (b) Upon any such notice of
resignation, the Required Lenders shall appoint a successor Agent. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents. After any Agent’s resignation hereunder as an Agent, the provisions of
this Article IX shall inure to its benefit as to any actions taken or omitted to be taken by it while it was an Agent under this Agreement and the other Loan Documents. 
  
 (c) If a successor Agent shall not have been so appointed within said thirty (30) Business Day period, the retiring Agent,
with the consent of the other Agent shall then appoint a successor Agent who shall serve as an Agent until such time, if any, as the Required Lenders, with the consent of the other Agent, appoint a successor Agent as provided above. 
  
 Section 9.08 Collateral Matters. 
  
 (a) The Collateral Agent may from time to time make such disbursements and
advances (“Collateral Agent Advances”) which the Collateral Agent, in its sole discretion, deems necessary or desirable to preserve, protect, prepare for sale or lease or dispose of the Collateral or any portion thereof, to enhance
the likelihood or maximize the amount of repayment by the Borrower of the Term Loan and other Obligations or to pay any other amount chargeable to the Borrower pursuant to the terms of this Agreement, including, without limitation, costs, fees and
expenses as described in Section 10.04. The Collateral Agent Advances shall be repayable on demand and be secured by the Collateral. The Collateral Agent Advances shall constitute Obligations hereunder which may be charged to the Loan Account
in accordance with 
  

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 Section 3.02. The Collateral Agent shall notify each Lender and the Borrower in writing of each such Collateral
Agent Advance, which notice shall include a description of the purpose of such Collateral Agent Advance. Without limitation to its obligations pursuant to Section 9.05, each Lender agrees that it shall make available to the Collateral Agent,
upon the Collateral Agent’s demand, in Dollars in immediately available funds, the amount equal to such Lender’s Pro Rata Share of each such Collateral Agent Advance. If such funds are not made available to the Collateral Agent by such
Lender, the Collateral Agent shall be entitled to recover such funds on demand from such Lender, together with interest thereon for each day from the date such payment was due until the date such amount is paid to the Collateral Agent, at the
Federal Funds Rate for 3 Business Days and thereafter at the Reference Rate. 
  
 (b) The Lenders hereby irrevocably authorize the Collateral Agent, at its option and in its discretion, to release any Lien granted to or held by the Collateral Agent upon any Collateral upon payment and satisfaction
of the Term Loan and all other Obligations which have matured and which the Collateral Agent has been notified in writing are then due and payable; or constituting property being sold or disposed of in the ordinary course of any Loan Party’s
business and in compliance with the terms of this Agreement and the other Loan Documents; or constituting property in which the Loan Parties owned no interest at the time the Lien was granted or at any time thereafter; or if approved, authorized or
ratified in writing by the Lenders. Upon request by the Collateral Agent at any time, the Lenders will confirm in writing the Collateral Agent’s authority to release particular types or items of Collateral pursuant to this Section
9.08(b). 
  
 (c) Without in any manner limiting the
Collateral Agent’s authority to act without any specific or further authorization or consent by the Lenders (as set forth in Section 9.08(b)), each Lender agrees to confirm in writing, upon request by the Collateral Agent, the authority
to release Collateral conferred upon the Collateral Agent under Section 9.08(b). Upon receipt by the Collateral Agent of confirmation from the Lenders of its authority to release any particular item or types of Collateral, and upon prior
written request by any Loan Party, the Collateral Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such documents as may be necessary to evidence the release of the Liens granted to the Collateral Agent for the benefit of
the Lenders upon such Collateral; provided, however, that (i) the Collateral Agent shall not be required to execute any such document on terms which, in the Collateral Agent’s opinion, would expose the Collateral Agent to
liability or create any obligations or entail any consequence other than the release of such Liens without recourse or warranty, and (ii) such release shall not in any manner discharge, affect or impair the Obligations or any Lien upon (or
obligations of any Loan Party in respect of) all interests in the Collateral retained by any Loan Party. 
  
 (d) The Collateral Agent shall have no obligation whatsoever to any Lender to assure that the Collateral exists or is owned by the Loan Parties or is
cared for, protected or insured or has been encumbered or that the Lien granted to the Collateral Agent pursuant to this Agreement or any other Loan Document has been properly or sufficiently or lawfully created, perfected, protected or enforced or
is entitled to any particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to the Collateral
Agent in this Section 9.08 or in any other Loan Document, it being understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, the Collateral Agent may act in any 
  

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 manner it may deem appropriate, in its sole discretion, given the Collateral Agent’s own interest in the Collateral
as one of the Lenders and that the Collateral Agent shall have no duty or liability whatsoever to any other Lender, except as otherwise provided herein. 
  
 Section 9.09 Agency for Perfection. Each Lender hereby appoints each Agent and each other Lender as agent and bailee for the purpose of perfecting
the security interests in and liens upon the Collateral in assets which, in accordance with Article 9 of the Code, can be perfected only by possession or control (or where the security interest of a secured party with possession or control has
priority over the security interest of another secured party) and each Agent and each Lender hereby acknowledges that it holds possession or control of any such Collateral for the benefit of the Collateral Agent as secured party. Should any Lender
obtain possession or control of any such Collateral, such Lender shall notify the Collateral Agent thereof, and, promptly upon the Collateral Agent’s request therefor shall deliver possession or control of such Collateral to the Collateral
Agent or in accordance with the Collateral Agent’s instructions. Each Loan Party by its execution and delivery of this Agreement hereby consents to the foregoing. 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 Section 10.01 Notices, Etc. All notices and other communications provided for hereunder shall be in writing and shall be mailed, telecopied or
delivered, if to any Loan Party, at the following address: 
  
 XCEL PHARMACEUTICALS, INC. 
 6363 Greenwich Drive, Suite 100 
 San Diego, California 92122 
 Attention: Chief
Financial Officer 
 Telephone: (858) 202-2700 
 Telecopier: (858) 202-2799 
  
 with a copy to: 
  
 PILLSBURY WINTHROP LLP

 101 West Broadway, Suite 1800 
 San Diego, California 92101 
 Attention: David R. Snyder, Esq. 
 Telephone: (619) 234-5000 
 Telecopier: (619)
234-1995 
  
 if to the Administrative Agent, to it at the
following address: 
  
 REGIMENT CAPITAL III, L.P.

 70 Federal Street, 7th Floor 
 Boston, Massachusetts 02110 
 Attention: Richard Miller 
 Telephone: (617) 488-1600 
 Telecopier: (617)
488-1660 
  

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 if to the Collateral Agent, to it at the following address: 
  
 REGIMENT CAPITAL III, L.P. 
 70 Federal Street, 7th Floor 
 Boston,
Massachusetts 02110 
 Attention: Richard Miller 
 Telephone: (617) 488-1600 
 Telecopier: (617) 488-1660 
  
 in each case, with a copy to: 
  
 PAUL, HASTINGS, JANOFSKY & WALKER LLP 
 515 South Flower Street, 25th Floor 
 Los
Angeles, CA 90071 
 Attention: John Francis Hilson, Esq. 
 Telephone: (213)-683-6000 
 Telecopier: (213) 627-0705 
  
 or, as to each party, at such other address as shall be designated by such
party in a written notice to the other parties complying as to delivery with the terms of this Section 10.01. All such notices and other communications shall be effective, (i) if mailed, when received or 3 days after deposited in the mails,
whichever occurs first, (ii) if telecopied, when transmitted and confirmation received, or (iii) if delivered, upon delivery, except that notices to any Agent pursuant to Articles II and III shall not be effective until received by such Agent.

  
 Section 10.02 Amendments, Etc. No amendment or waiver
of any provision of this Agreement or any other Loan Document, and no consent to any departure by any Loan Party therefrom, shall in any event be effective unless the same shall be in writing and signed by the Required Lenders or by the Collateral
Agent with the consent of the Required Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given, provided, however, that no amendment, waiver or consent
shall (i) reduce the principal of, or interest on, the Term Loan, reduce the amount of any fee payable for the account of any Lender, or postpone or extend any date fixed for any payment of principal of, or interest or fees on, the Term Loan, in
each case without the written consent of any Lender affected thereby, (ii) increase the Total Term Loan Commitment without the written consent of each Lender, (iii) change the aggregate unpaid principal amount of the Term Loan that is required for
the Lenders or any of them to take any action hereunder, (iv) amend the definition of “Required Lenders” or “Pro Rata Share”, (v) release all or a substantial portion of the Collateral (except as otherwise provided in this
Agreement and the other Loan Documents), subordinate any Lien granted in favor of the Collateral Agent for the benefit of the Lenders, or release the Borrower or any Guarantor, or (vi) amend, modify or waive Section 3.04 or this Section
10.02 of this Agreement, in each case, without the written consent of each Lender. Notwithstanding the foregoing, no amendment, waiver or consent shall, unless in writing and signed by an Agent, affect the rights or duties of such Agent (but not
in its capacity as a Lender) under this Agreement or the other Loan Documents. 
  

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 Section 10.03 No Waiver; Remedies, Etc. No failure on the part of any Agent or any Lender to
exercise, and no delay in exercising, any right hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right under any Loan Document preclude any other or further exercise
thereof or the exercise of any other right. The rights and remedies of the Agents and the Lenders provided herein and in the other Loan Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law.
The rights of the Agents and the Lenders under any Loan Document against any party thereto are not conditional or contingent on any attempt by the Agents and the Lenders to exercise any of their rights under any other Loan Document against such
party or against any other Person. 
  
 Section 10.04 Expenses;
Taxes; Attorneys’ Fees. The Borrower will pay on demand, all costs and expenses incurred by or on behalf of each Agent (and, in the case of clauses (b) through (m) below, each Lender), regardless of whether the transactions contemplated
hereby are consummated, including, without limitation, reasonable fees, costs, client charges and expenses of counsel for each Agent (and, in the case of clauses (b) through (m) below, each Lender), accounting, due diligence, periodic field audits,
physical counts, valuations, investigations, searches and filings, monitoring of assets, appraisals of Collateral, title searches and reviewing environmental assessments, miscellaneous disbursements, examination, travel, lodging and meals, arising
from or relating to: (a) the negotiation, preparation, execution, delivery, performance and administration of this Agreement and the other Loan Documents (including, without limitation, the preparation of any additional Loan Documents pursuant to
Section 6.01(b) or the review of any of the agreements, instruments and documents referred to in Section 6.01(f)) (b) any requested amendments, waivers or consents to this Agreement or the other Loan Documents whether or not such
documents become effective or are given, (c) the preservation and protection of any of the Lenders’ rights under this Agreement or the other Loan Documents, (d) the defense of any claim or action asserted or brought against any Agent or any
Lender by any Person that arises from or relates to this Agreement, any other Loan Document, the Agents’ or the Lenders’ claims against any Loan Party, or any and all matters in connection therewith, (e) the commencement or defense of, or
intervention in, any court proceeding arising from or related to this Agreement or any other Loan Document, (f) the filing of any petition, complaint, answer, motion or other pleading by any Agent or any Lender, or the taking of any action in
respect of the Collateral or other security, in connection with this Agreement or any other Loan Document, (g) the protection, collection, lease, sale, taking possession of or liquidation of, any Collateral or other security in connection with this
Agreement or any other Loan Document, (h) any attempt to enforce any Lien or security interest in any Collateral or other security in connection with this Agreement or any other Loan Document, (i) any attempt to collect from any Loan Party upon an
Event of Default, (j) all liabilities and costs arising from or in connection with the past, present or future operations of any Loan Party involving any damage to real or personal property or natural resources or harm or injury alleged to have
resulted from any Release of Hazardous Materials on, upon or into such property, (k) any Environmental Liabilities and Costs incurred in connection with the investigation, removal, cleanup and/or remediation of any Hazardous Materials present or
arising out of the operations of any facility owned or operated by any Loan Party, (1) any Environmental Liabilities and Costs incurred in connection with any Environmental Lien, or (m) the receipt by any Agent or any Lender of any advice from
professionals with respect to any of the foregoing; provided that the Borrower’s obligation to reimburse the Agents and the Lenders for any of the costs and expenses described in clauses (a) through (m) above that are incurred on and
prior to the Effective Date shall 
  

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 not exceed $275,000 unless the Borrower consents in writing to an increase of such amount. Without limitation of the
foregoing or any other provision of any Loan Document: (x) the Borrower agrees to pay all stamp, document, transfer, recording or filing taxes or fees and similar impositions now or hereafter determined by any Agent or any Lender to be payable in
connection with this Agreement or any other Loan Document, and the Borrower agrees to save each Agent and each Lender harmless from and against any and all present or future claims, liabilities or losses with respect to or resulting from any
omission to pay or delay in paying any such taxes, fees or impositions, (y) the Borrower agrees to pay all broker fees that may become due in connection with the transactions contemplated by this Agreement and the other Loan Documents, including
without limitation a fee equal to 2.5% of the Total Term Loan Commitment payable to Libra Securities, LLC, and (z) if the Borrower fails to perform any covenant or agreement contained herein or in any other Loan Document, any Agent may itself
perform or cause performance of such covenant or agreement, and the expenses of such Agent incurred in connection therewith shall be reimbursed on demand by the Borrower. 
  
 Section 10.05 Right of Set-off. Upon the occurrence and during the continuance of any Event of Default, any Agent or
any Lender may, and is hereby authorized to, at any time and from time to time, without notice to any Loan Party (any such notice being expressly waived by the Loan Parties) and to the fullest extent permitted by law, set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time held and other Indebtedness at any time owing by such Agent or such Lender to or for the credit or the account of any Loan Party against any and all obligations of the
Loan Parties either now or hereafter existing under any Loan Document, irrespective of whether or not such Agent or such Lender shall have made any demand hereunder or thereunder and although such obligations may be contingent or unmatured. Each
Lender agrees to notify such Loan Party promptly after any such set-off and application made by such Agent or such Lender provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of the
Agents and the Lenders under this Section 10.05 are in addition to the other rights and remedies (including other rights of set-off) which the Agents and the Lenders may have under this Agreement or any other Loan Documents of law or
otherwise. 
  
 Section 10.06 Severability. Any provision of
this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction. 
  
 Section 10.07 Assignments and Participations. (a) This Agreement and the other Loan Documents shall be binding upon and inure to the benefit of each Loan Party and each Agent and each Lender and their respective successors and
assigns; provided, however, that none of the Loan Parties may assign or transfer any of its rights hereunder without the prior written consent of each Lender and the Borrower and any such assignment without the Lenders’ and the
Borrower’s prior written consent shall be null and void. 
  
 (a) Each Lender may, with the written consent of the Collateral Agent and, so long as no Event of Default has occurred and is continuing, the Borrower (which consent may be withheld in Borrower’s sole discretion if the proposed
Assignee is a hedge fund, but otherwise shall not be unreasonably withheld), assign to one or more other lenders or other entities 
  

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 all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of
the Term Loan made by it); provided, however, that (i) such assignment is in an amount which is at least $5,000,000 or a multiple of $1,000,000 in excess thereof (except such minimum amount shall not apply to an Affiliate of a Lender
or a fund or account managed by a Lender or an Affiliate of a Lender) and (ii) the parties to each such assignment shall execute and deliver to the Collateral Agent, for its acceptance, an Assignment and Acceptance, together with any promissory note
subject to such assignment and such parties shall deliver to the Collateral Agent a processing and recordation fee of $5,000 (except the payment of such fee shall not be required if the assignee is an Affiliate of a Lender or a fund or account
managed by a Lender or an Affiliate of a Lender). Upon such execution, delivery and acceptance, from and after the effective date specified in each Assignment and Acceptance, which effective date shall be at least 3 Business Days after the delivery
thereof to the Collateral Agent (or such shorter period as shall be agreed to by the Collateral Agent and the parties to such assignment), (A) the assignee thereunder shall become a “Lender” hereunder and, in addition to the rights and
obligations hereunder held by it immediately prior to such effective date, have the rights and obligations hereunder that have been assigned to it pursuant to such Assignment and Acceptance and (B) the assigning Lender thereunder shall, to the
extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights and be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance
covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto). 
  

(i) By executing and delivering an Assignment and Acceptance, the assigning Lender and the assignee thereunder confirm to and agree with each other
and the other parties hereto as follows: (A) other than as provided in such Assignment and Acceptance, the assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with this Agreement or any other Loan Document or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto;
(B) the assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Loan Party or any of its Subsidiaries or the performance or observance by any Loan Party of any of its
obligations under this Agreement or any other Loan Document furnished pursuant hereto; (C) such assignee confirms that it has received a copy of this Agreement and the other Loan Documents, together with such other documents and information it has
deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance; (D) such assignee will, independently and without reliance upon the assigning Lender, any Agent or any Lender and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Loan Documents; (E) such assignee appoints and authorizes the Agents to take such
action as agents on its behalf and to exercise such powers under this Agreement and the other Loan Documents as are delegated to the Agents by the terms hereof and thereof, together with such powers as are reasonably incidental hereto and thereto;
and (F) such assignee agrees that it will perform in accordance with their terms all of the obligations which by the terms of this Agreement and the other Loan Documents are required to be performed by it as a Lender. 
  

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 (ii) The Collateral Agent shall, on behalf of the Borrower, maintain, or cause to be maintained at the
Payment Office, a copy of each Assignment and Acceptance delivered to and accepted by it and a register (the “Register”) for the recordation of the names and addresses of the Lenders and principal amount of the portion of the Term
Loan (the “Register Loans”) owing to each Lender from time to time. The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrower, the Agents and the Lenders may treat each
Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender at any reasonable time and from time to time upon reasonable prior
notice. In the case of any assignment not reflected in the Register, the assigning Lender shall maintain a comparable register. 
  
 (iii) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an assignee, together with any promissory notes subject to
such assignment, the Collateral Agent shall, if the Collateral Agent consents to such assignment and if such Assignment and Acceptance has been completed (i) accept such Assignment and Acceptance and (ii) record the information contained therein in
the Register. 
  
 (iv) A Registered Loan (and the registered
note, if any, evidencing the same) may be assigned or sold in whole or in part only by registration of such assignment or sale on the Register (and each registered note shall expressly so provide). Any assignment or sale of all or part of such
Registered Loan (and the registered note, if any, evidencing the same) may be effected only by registration of such assignment or sale on the Register, together with the surrender of the registered note, if any, evidencing the same duly endorsed by
(or accompanied by a written instrument of assignment or sale duly executed by) the holder of such registered note, whereupon, at the request of the designated assignee(s) or transferee(s), one or more new registered notes in the same aggregate
principal amount shall be issued to the designated assignee(s) or transferee(s). Prior to the registration of assignment or sale of any Registered Loan (and the registered note, if any, evidencing the same), the Agents shall treat the Person in
whose name such Registered Loan (and the registered note, if any, evidencing the same) is registered as the owner thereof for the purpose of receiving all payments thereon and for all other purposes, notwithstanding notice to the contrary.

  
 (v) In the event that any Lender sells participations in a
Registered Loan, such Lender shall maintain a register on which it enters the name of all participants in the Registered Loans held by it (the “Participant Register”). A Registered Loan (and the registered note, if any, evidencing
the same) may be participated in whole or in part only by registration of such participation on the Participant Register (and each registered note shall expressly so provide). Any participation of such Registered Loan (and the registered note, if
any, evidencing the same) may be effected only by the registration of such participation on the Participant Register. 
  
 (vi) Any foreign Person who purchases or is assigned or participates in any portion of such Registered Loan shall provide the Agents (in the case of a
purchase or assignment) or the Lender (in the case of a participation) with a completed Internal Revenue Service Form W-8BEN (Certificate of Foreign Status) or a substantially similar form for 
  

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 such purchaser, participant or any other affiliate who is a holder of beneficial interests in the Registered Loan.

  
 (b) Each Lender may sell participations to one or more banks
or other entities in or to all or a portion of its rights and obligations under this Agreement and the other Loan Documents (including, without limitation, all or a portion of its Term Loan Commitment and the Term Loan made by it); provided, that
(i) such Lender’s obligations under this Agreement (including without limitation, its Term Loan Commitment hereunder) and the other Loan Documents shall remain unchanged; and (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, and the Borrower, the Agents and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and the
other Loan Documents. The Loan Parties agree that each participant shall be entitled to the benefits of Section 2.08 and Section 3.05 of this Agreement with respect to its participation in any portion of the Term Loan Commitments and
the Term Loan as if it was a Lender. 
  
 Section 10.08
Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the
same agreement. Delivery of an executed counterpart of this Agreement by telefacsimile shall be equally as effective as delivery of an original executed counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by
telefacsimile also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. The foregoing shall
apply to each other Loan Document mutatis mutandis. 
  
 Section
10.09 GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK. 
  
 Section 10.10 CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK OR OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH
LOAN PARTY HEREBY IRREVOCABLY ACCEPTS IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH LOAN PARTY HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS,
NOTICES, AND DOCUMENTS IN ANY SUIT, ACTION, OR PROCEEDING BROUGHT IN THE UNITED STATES OF AMERICA ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS BY THE MAILING (BY REGISTERED MAIL OR CERTIFIED MAIL, POSTAGE
PREPAID) OR DELIVERING 
  

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 OF A COPY OF SUCH PROCESS TO SUCH LOAN PARTY, C/O THE BORROWER, AT THE BORROWER’S ADDRESS FOR NOTICES AS SET
FORTH IN SECTION 10.01. THE LOAN PARTIES AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING
HEREIN SHALL AFFECT THE RIGHT OF THE AGENTS AND THE LENDERS TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY LOAN PARTY IN ANY OTHER JURISDICTION. EACH LOAN PARTY HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE JURISDICTION OR LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT
ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT ANY LOAN PARTY HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR
TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, EACH LOAN PARTY HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

  
 Section 10.11 WAIVER OF JURY TRIAL,
ETC. EACH LOAN PARTY, EACH AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, OR UNDER ANY AMENDMENT,
WAIVER, CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION THEREWITH, OR ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH
ACTION, PROCEEDINGS OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. EACH LOAN PARTY CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT OR ATTORNEY OF ANY AGENT OR ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY AGENT
OR ANY LENDER WOULD NOT, IN THE EVENT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING WAIVERS. EACH LOAN PARTY HEREBY ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE AGENTS AND THE LENDERS ENTERING INTO
THIS AGREEMENT. 
  
 Section 10.12 Consent by the Agents and
Lenders. Except as otherwise expressly set forth herein to the contrary, if the consent, approval, satisfaction, determination, judgment, acceptance or similar action (an “Action”) of any Agent or any Lender shall be permitted
or required pursuant to any provision hereof or any provision of any other agreement to which any Loan Party is a party and to which any Agent or any Lender has succeeded thereto, such Action shall be required to be in writing and may be withheld or
denied by such Agent or such Lender, in 
  

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 its sole discretion, with or without any reason, and without being subject to question or challenge on the grounds that
such Action was not taken in good faith. 
  
 Section 10.13 No
Party Deemed Drafter. Each of the parties hereto agrees that no party hereto shall be deemed to be the drafter of this Agreement. 
  
 Section 10.14 Reinstatement; Certain Payments. If any claim is ever made upon any Agent or any Lender for repayment or recovery of any amount or
amounts received by such Agent or such Lender in payment or on account of any of the Obligations, such Agent or such Lender shall give prompt notice of such claim to each other Agent and Lender and the Borrower, and if such Agent or such Lender
repays all or part of such amount by reason of (i) any judgment, decree or order of any court or administrative body having jurisdiction over such Agent or such Lender or any of its property, or (ii) any good faith settlement or compromise of any
such claim effected by such Agent or such Lender with any such claimant, then and in such event each Loan Party agrees that (A) any such judgment, decree, order, settlement or compromise shall be binding upon it notwithstanding the cancellation of
any Indebtedness hereunder or under the other Loan Documents or the termination of this Agreement or the other Loan Documents, and (B) it shall be and remain liable to such Agent or such Lender hereunder for the amount so repaid or recovered to the
same extent as if such amount had never originally been received by such Agent or such Lender. 
  
 Section 10.15 Indemnification. In addition to each Loan Party’s other Obligations under this Agreement, each Loan Party agrees to, jointly and severally, defend, protect, indemnify and hold harmless each
Agent and each Lender and all of their respective officers, directors, employees, attorneys, consultants and agents (collectively called the “Indemnitees”) from and against any and all losses, damages, liabilities, obligations,
penalties, fees, reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees, costs and expenses) incurred by such Indemnitees, whether prior to or from and after the Effective Date, whether direct, indirect or
consequential, as a result of or arising from or relating to or in connection with any of the following: (i) the negotiation, preparation, execution or performance or enforcement of this Agreement, any other Loan Document or of any other document
executed in connection with the transactions contemplated by this Agreement, (ii) any Agent’s or any Lender’s furnishing of funds to the Borrower, including, without limitation, the management of the Term Loan, (iii) any matter relating to
the financing transactions contemplated by this Agreement or the other Loan Documents or by any document executed in connection with the transactions contemplated by this Agreement or the other Loan Documents, or (iv) any claim, litigation,
investigation or proceeding relating to any of the foregoing, whether or not any Indemnitee is a party thereto (collectively, the “Indemnified Matters”); provided, however, that the Loan Parties shall not have any
obligation to any Indemnitee under this Section 10.15 for any Indemnified Matter caused by the gross negligence or willful misconduct of such Indemnitee, as determined by a final judgment of a court of competent jurisdiction. Such
indemnification for all of the foregoing losses, damages, fees, costs and expenses of the Indemnitees are chargeable against the Loan Account. To the extent that the undertaking to indemnify, pay and hold harmless set forth in this Section
10.15 may be unenforceable because it is violative of any law or public policy, each Loan Party shall, jointly and severally, contribute the maximum portion which it is permitted to pay and satisfy under applicable law, to the payment and
satisfaction of all Indemnified Matters incurred by the Indemnitees. This 
  

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 Indemnity shall survive the repayment of the Obligations and the discharge of the Liens granted under the Loan Documents.

  
 Section 10.16 Records. The unpaid principal of and
interest on the Term Loan, the interest rate or rates applicable to such unpaid principal and interest, the duration of such applicability, and the accrued and unpaid fees payable pursuant to Section 2.06 hereof, including, without
limitation, the Closing Fee, Loan Servicing Fee and the Anniversary Fee, shall at all times be ascertained from the records of the Agents, which shall be conclusive and binding absent manifest error. 
  
 Section 10.17 Binding Effect. This Agreement shall become effective
when it shall have been executed by each Loan Party, each Agent and each Lender and thereafter shall be binding upon and inure to the benefit of each Loan Party, each Agent and each Lender, and their respective successors and assigns, except that
the Loan Parties shall not have the right to assign their rights hereunder or any interest herein without the prior written consent of each Lender, and any assignment by any Lender shall be governed by Section 10.07 hereof. 
  
 Section 10.18 Interest. It is the intention of the parties hereto that
each Agent and each Lender shall conform strictly to usury laws applicable to it. Accordingly, if the transactions contemplated hereby or by any other Loan Document would be usurious as to any Agent or any Lender under laws applicable to it
(including the laws of the United States of America and the State of New York or any other jurisdiction whose laws may be mandatorily applicable to such Agent or such Lender notwithstanding the other provisions of this Agreement), then, in that
event, notwithstanding anything to the contrary in this Agreement or any other Loan Document or any agreement entered into in connection with or as security for the Obligations, it is agreed as follows: (i) the aggregate of all consideration which
constitutes interest under law applicable to any Agent or any Lender that is contracted for, taken, reserved, charged or received by such Agent or such Lender under this Agreement or any other Loan Document or agreements or otherwise in connection
with the Obligations shall under no circumstances exceed the maximum amount allowed by such applicable law, any excess shall be canceled automatically and if theretofore paid shall be credited by such Agent or such Lender on the principal amount of
the Obligations (or, to the extent that the principal amount of the Obligations shall have been or would thereby be paid in full, refunded by such Agent or such Lender, as applicable, to the Borrower); and (ii) in the event that the maturity of the
Obligations is accelerated by reason of any Event of Default under this Agreement or otherwise, or in the event of any required or permitted prepayment, then such consideration that constitutes interest under law applicable to any Agent or any
Lender may never include more than the maximum amount allowed by such applicable law, and excess interest, if any, provided for in this Agreement or otherwise shall be canceled automatically by such Agent or such Lender, as applicable, as of the
date of such acceleration or prepayment and, if theretofore paid, shall be credited by such Agent or such Lender, as applicable, on the principal amount of the Obligations (or, to the extent that the principal amount of the Obligations shall have
been or would thereby be paid in full, refunded by such Agent or such Lender to the Borrower). All sums paid or agreed to be paid to any Agent or any Lender for the use, forbearance or detention of sums due hereunder shall, to the extent permitted
by law applicable to such Agent or such Lender, be amortized, prorated, allocated and spread throughout the full term of the Term Loan until payment in full so that the rate or amount of interest on account of the Term Loan does not exceed the
maximum amount allowed by such applicable law. If at an time and from time to time (i) the 
  

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 amount of interest payable to any Agent or any Lender on any date shall be computed at the Highest Lawful Rate applicable
to such Agent or such Lender pursuant to this Section 10.18 and (ii) in respect of any subsequent interest computation period the amount of interest otherwise payable to such Agent or such Lender would be less than the amount of interest
payable to such Agent or such Lender computed at the Highest Lawful Rate applicable to such Agent or such Lender, then the amount of interest payable to such Agent or such Lender in respect of such subsequent interest computation period shall
continue to be computed at the Highest Lawful Rate applicable to such Agent or such Lender until the total amount of interest payable to such Agent or such Lender shall equal the total amount of interest which would have been payable to such Agent
or such Lender if the total amount of interest had been computed without giving effect to this Section 10.18. 
  
 Notwithstanding any other provision herein to the contrary, each Agent and each Lender agrees (on behalf of itself and each of its affiliates, directors,
officers, employees and representatives) not to (and agrees to cause each Participant to which such Agent or Lender has participated an interest in any portion of the Term Loan under this Agreement to agree (on behalf of itself and each of its
affiliates, directors, officers, employees and representatives) not to) effect any transaction in the securities of any Loan Party during any period in which party is in possession of material non-public information with respect to such Loan Party.

  
 For purposes of this Section 10.18, the term
“applicable law” shall mean that law in effect from time to time and applicable to the loan transaction between the Borrower, on the one hand, and the Agents and the Lenders, on the other, that lawfully permits the charging and collection
of the highest permissible, lawful non-usurious rate of interest on such loan transaction and this Agreement, including laws of the State of New York and, to the extent controlling, laws of the United States of America. 
  
 The right to accelerate the maturity of the Obligations does not include the
right to accelerate any interest that has not accrued as of the date of acceleration. 
  
 Section 10.19 Confidentiality. Each Agent and each Lender agrees (on behalf of itself and each of its affiliates, directors, officers, employees and representatives) to use and to cause each Participant to
which such Lender has participated an interest in any portion of the Term Loan under this Agreement to agree (on behalf of itself and each of its affiliates, directors, officers, employees and representatives) to use, reasonable precautions to keep
confidential, in accordance with its customary procedures for handling confidential information of this nature and in accordance with safe and sound practices of comparable commercial finance companies, any material non-public information supplied
to it by the Loan Parties pursuant to this Agreement or the other Loan Documents which is identified in writing by the Loan Parties as being confidential at the time the same is delivered to such Person (and which at the time is not, and does not
thereafter become, publicly available or available to such Person from another source not known to be subject to a confidentiality obligation to such Person not to disclose such information), provided that nothing herein shall limit the
disclosure of any such information (i) to the extent required by statute, rule, regulation or judicial process, (ii) to counsel for any Agent or any Lender, (iii) to examiners, auditors, accountants or Securitization Parties, (iv) in connection with
any litigation to which any Agent or any Lender is a party or (v) to any assignee or participant (or prospective assignee or participant) so long as such assignee or participant (or prospective assignee or 
  

 79 

 participant) first agrees, in writing, to be bound by confidentiality provisions similar in substance to this Section
10.19. Each Agent and each Lender agrees that, upon receipt of a request or identification of the requirement for disclosure pursuant to clause (iv) hereof, it will make reasonable efforts to keep the Loan Parties informed of such request or
identification; provided that the each Loan Party acknowledges that each Agent and each Lender may make disclosure as required or requested by any Governmental Authority or representative thereof and that each Agent and each Lender may be
subject to review by Securitization Parties or other regulatory agencies and may be required to provide to, or otherwise make available for review by, the representatives of such parties or agencies any such non-public information. 
  
 Section 10.20 Integration. This Agreement, together with the other
Loan Documents, reflects the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. 
  

 80 

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

	BORROWER:
	
	XCEL PHARMACEUTICALS, INC.
		
	 By:
	 	 /s/ MICHAEL BORER

	 Name:
	 	 Michael T. Borer

	 Title:
	 	 President and Chief Executive Officer

  
 [SIGNATURE PAGE
TO FINANCING AGREEMENT] 

	 COLLATERAL AGENT,
 ADMINISTRATIVE AGENT AND
 LENDER:

	
	REGIMENT CAPITAL III, L.P.
		
	 By:
	 	 Regiment Capital Management, L.L.C.,

	 its
	 	 General Partner

			
	 	 	 By:
	 	 Regiment Capital Advisors, L.L.C.,

	 	 	 its
	 	 Manager

			
	 	 	 By:
	 	 /s/    RICHARD T. MILLER

	 	 	 Name:
	 	Richard T. Miller
	 	 	 Title:
	 	Vice President

  
 [SIGNATURE PAGE
TO FINANCING AGREEMENT] 

 SCHEDULE 1.0 1(A) 
  

COMMITMENTS 
  

	 Lender

	 	 Term Loan Commitment

	 Regiment Capital III, L.P.
	 	$62,000,000

  

 EXHIBIT A-1 
  
 FORM OF ASSIGNMENT AND ACCEPTANCE 
  
 [OMITTED] 
  
 The exhibits and schedules have been omitted from this Agreement as filed with the Securities and Exchange Commission (the “SEC”). The omitted information is
considered immaterial from an investor’s perspective. The Registrant will furnish supplementally a copy of any of the documents to the SEC upon request of the SEC. 
  

 Exhibit A-1 

 EXHIBIT A 
  
 FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT 
  
 [OMITTED] 
  

 A-1 

 EXHIBIT G-1 
  
 FORM OF GUARANTY 
  
 [OMITTED] 
  

 Exhibit G-1 

 EXHIBIT G-1 
  
 [OMITTED] 
  

 EXHIBIT P-1 
  
 FORM OF PATENT SECURITY AGREEMENT 
  
 (Omitted) 
  

 Exhibit P-1 

 EXHIBIT P-2 
  
 FORM OF PLEDGE AGREEMENT 
  
 [OMITTED] 
  

 Exhibit P-2 

 EXHIBIT P-1 
  
 [OMITTED] 

 EXHIBIT S-1 
  
 FORM OF SECURITY AGREEMENT 
  
 (Omitted) 
  

 Exhibit S-1 

 EXHIBIT T-1 
  
 FORM OF TRADEMARK SECURITY AGREEMENT 
  
 (Omitted) 
  

 Exhibit T-1 

 EXHIBIT 2.02 
  
 FORM OF NOTICE OF BORROWING 
  

(Omitted) 
  

 Exhibit 2.02 

 EXHIBIT 4.01(d)(xii) 
  
 FORM OF OPINION OF COUNSEL 
  
 (Omitted) 
  

 Exhibit 4.01(d)(xii)

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