Document:

Exhibit 10.4

 

 

 

 

 

Registration
Rights Agreement

 

Dated
As of July 21, 2017

 

between

 

Pernix
Therapeutics Holdings, Inc.,

 

Pernix
Ireland Pain Limited

 

and

 

1992
MSF International Ltd.,

 

1992
Tactical Credit Master Fund, L.P.

 

 

 

     

     

    

REGISTRATION
RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of July 21, 2017 by and among
Pernix Therapeutics Holdings, Inc., a Maryland corporation (“Pernix”), the Issuer (as defined below) and 1992
MSF International Ltd., a company organized under the laws of the Cayman Islands, and 1992 Tactical Credit Master Fund, L.P.,
a company organized under the laws of the Cayman Islands (the “Initial Holders”).

 

This
Agreement is made in connection with the Exchange Agreement, dated as of July 20, 2017, by and among Pernix, Pernix Ireland Pain
Limited, a company organized under the laws of Ireland (the “Issuer”), the Guarantors party thereto (the “Guarantors”)
and the Initial Holders, which provide for, among other things, the issuance by the Issuer to the Initial Holders of (i) an aggregate
of $35.0 million aggregate principal amount of new 4.25%/5.25% Exchangeable Senior PIK Toggle Notes due 2022 (the “Notes”)
in exchange for $50.0 million aggregate principal amount of convertible notes of Pernix held by the Initial Holders, and (ii)
1,100,498 million shares (the “Exchange Shares”) of Pernix’s common stock, par value $0.01 (the “Common
Stock”).

 

The
Notes are issued under an indenture (the “Indenture”), dated as of the date hereof between the Issuer, the
Guarantors and Wilmington Trust, National Association, as trustee (the “Trustee”). References to the “Securities”
shall mean, collectively, any shares of Common Stock issued upon exchange of the Notes pursuant to the terms thereof (the “Underlying
Shares”) and the Exchange Shares. The execution and delivery of this Agreement is a condition to the Initial Holders’
obligations under the Exchange Agreement.

 

In
consideration of the foregoing, the parties hereto agree as follows:

 

Article
1

Definitions

 

Section
1.01. Definitions. As used in this Agreement, the following capitalized defined terms shall have the following meanings:

 

“1933
Act” shall mean the Securities Act of 1933, as amended from time to time.

 

“1934
Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

“Accreted
Principal Amount” shall have the meaning set forth in the Indenture.

 

     

     

    

 

“Additional
Interest” means all amounts of additional interest, if any, payable under Section 2.04(a) or (b).

 

“Business
Days” means each Monday, Tuesday, Wednesday, Thursday and Friday that is neither a legal holiday nor a day on which
banking institutions or trust companies are authorized or obligated by law to close.

 

“Closing
Date” shall have the meaning set forth in the Exchange Agreement.

 

“Common
Stock” shall have the meaning specified in the preamble.

 

“Depositary”
shall mean The Depository Trust Company, or any other depositary appointed by Pernix, provided, however, that such
depositary must have an address in the Borough of Manhattan, in The City of New York.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2.01(b).

 

“Event
Date” shall have the meaning set forth in Section 2.04(c).

 

“Exchange
Agreement” shall have the meaning set forth in the preamble.

 

“Exchange
Price” shall have the meaning set forth in the Indenture.

 

“Free
Writing Prospectus” shall mean an issuer free writing prospectus, as defined in Rule 433 under the 1933 Act, relating
to an offering Registrable Securities.

 

“Holder”
shall mean the Initial Holders and each Person who becomes the beneficial owner of any Underlying Shares, in each case for so
long as such Person owns any Notes or Registrable Securities.

 

“Issuer”
shall have the meaning set forth in the preamble.

 

“Indenture”
shall have the meaning set forth in the preamble.

 

“Initial
Holders” shall have the meaning set forth in the preamble.

 

“Initial
Shelf Registration Statement” shall have the meaning specified in Section 2(a) hereof.

 

“Notes”
shall have the meaning set forth in the preamble.

 

“Notice
and Questionnaire” shall mean a written notice delivered to Pernix containing substantially the information called for
by the Selling Securityholder Notice and Questionnaire attached as Annex A hereto.

 

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“Pernix”
shall have the meaning set forth in the preamble.

 

“Person”
shall mean an individual, partnership (general or limited), corporation, limited liability company, trust or unincorporated organization,
or a government or agency or political subdivision thereof.

 

“Prospectus”
shall mean the prospectus included in a Registration Statement, including any preliminary prospectus, and any such prospectus
as amended or supplemented by any prospectus supplement, including any such prospectus supplement with respect to the terms of
the offering of any portion of the Registrable Securities covered by the Shelf Registration Statement, and by all other amendments
and supplements to a prospectus, including post-effective amendments, and in each case including all material incorporated by
reference therein.

 

“Registrable
Securities” shall mean the Securities and any securities into or for which such securities have been converted or exchanged,
and any security issued with respect thereto upon any stock dividend, split or similar event; provided, however,
that Securities shall cease to be Registrable Securities when (i) the Shelf Registration Statement with respect to such Securities
shall have been declared effective under the 1933 Act and such Securities shall have been disposed of pursuant to such Shelf Registration
Statement, (ii) such Securities shall have ceased to be outstanding and no Notes are remaining outstanding.

 

“Registration
Expenses” shall mean any and all expenses incident to or incurred in connection with the performance by Pernix of, or
compliance by Pernix with, this Agreement, including without limitation: (i) all SEC, stock exchange or Financial Industry Regulatory
Authority (“FINRA”) registration and filing fees, (ii) all fees and expenses incurred in connection with compliance
with state securities or blue sky laws and compliance with the rules of FINRA (including reasonable fees and disbursements of
counsel for any Holders in connection with blue sky qualification of any of the Registrable Securities and any filings with FINRA),
(iii) all expenses of any Persons in preparing or assisting in preparing, word processing, printing and distributing any Registration
Statement, any Prospectus, any Free Writing Prospectus, any amendments or supplements thereto, securities sales agreements and
other documents relating to the performance of and compliance with this Agreement, (iv) all fees and expenses incurred in connection
with the listing, if any, of any of the Registrable Securities on any securities exchange or exchanges or quotation of the Registrable
Securities on any inter-dealer quotation system, (v) the fees and disbursements of counsel for Pernix and of the independent certified
public accountants of Pernix, including the expenses of any special audits or “cold comfort” letters required by or
incident to such performance and compliance, (vi) the fees and expenses of the Trustee, and any escrow agent or custodian, (vii)
in the case of the Shelf Registration Statement, the reasonable fees and disbursements of one special counsel (and any reasonably
requested local counsel) representing the Holders

 

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(which
counsel shall be elected by the Holders), and (viii) the reasonable fees and disbursements of legal counsel representing Pernix
in connection with any Registration Statement and any registered offering of the Registrable Securities, in each case excluding
underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Securities
by a Holder.

 

“Registration
Statement” shall mean any registration statement of Pernix filed with, or to be filed with, the SEC under the rules
and regulations promulgated under the 1933 Act, that covers any of the Registrable Securities pursuant to the provisions of this
Agreement, and all amendments and supplements to any such Registration Statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein.

 

“SEC”
shall mean the Securities and Exchange Commission or any successor agency or government body performing the functions currently
performed by the United States Securities and Exchange Commission.

 

“Shelf
Registration” shall mean a registration effected pursuant to ‎Section 2.01 hereof.

 

“Shelf
Registration Statement” shall mean the Initial Shelf Registration Statement and any Subsequent Shelf Registration Statement.

 

“Subsequent
Shelf Registration Statement” shall have the meaning specified in Section 2(c) hereof.

 

“Trustee”
shall mean the trustee with respect to the Notes under the Indenture.

 

Article
2

Registration Under the 1933 Act

 

Section
2.01. Shelf Registration. (a) If at any time (i) any Registrable Securities are outstanding, and (ii) any Holder determines
on the advice of counsel that any Registrable Securities held by such Holder are not freely tradeable under Rule 144 under the
1933 Act, then such Holder may make a written request to Pernix for a Shelf Registration (a “Request”). Upon
receipt of any Request, Pernix shall, at Pernix’s cost, (i) file with the SEC not later than 10 Business Days after the
date of such Request, a “shelf” registration statement on Form S-3 which covers all of the Registrable Securities
on an appropriate form under Rule 415 under the 1933 Act, or any similar rule that may be adopted by the SEC, and all amendments
and supplements to such registration statement, including post-effective amendments, including the Prospectus contained therein,
all exhibits thereto and all material incorporated by reference therein relating to the offer and sale of the Registrable Securities
by the Holders from time to time

 

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(the
“Initial Shelf Registration Statement”), and (ii) thereafter shall use its reasonable efforts to cause the
Initial Shelf Registration Statement to be declared effective under the 1933 Act as soon as practicable after the date of such
Request, and not later than 75 days after the date of such Request.

 

(b)           
Pernix shall use its reasonable efforts to cause the effectiveness of each Shelf Registration Statement and keep the Initial Shelf
Registration Statement (or any Subsequent Shelf Registration Statement) continuously effective in order to permit the Prospectus
forming part thereof to be usable by Holders until all Registrable Securities have been sold pursuant to a Shelf Registration
Statement or cease to be outstanding or otherwise to be Registrable Securities (the “Effectiveness Period”);
provided, however, that Registrable Securities will be deemed to be outstanding so long as any of the Notes are
outstanding; provided, further, that no Holder shall be entitled to have the Registrable Securities held by it covered
by a Shelf Registration Statement unless such Holder shall have provided a Notice and Questionnaire in accordance with Section
2(d) and is in compliance with Section 4. From and after the date hereof, Pernix will not grant any existing or future holders
of Pernix’s securities the right to include any securities in any Shelf Registration Statement.

 

(c)           
If any Shelf Registration Statement ceases to be effective for any reason at any time during the Effectiveness Period, Pernix
shall use its reasonable best efforts to promptly cause such Shelf Registration Statement to again become effective under the
1933 Act (including obtaining the prompt withdrawal of any order suspending the effectiveness of such Shelf Registration Statement),
and shall use its reasonable best efforts to promptly amend such Shelf Registration Statement in a manner reasonably expected
to result in the withdrawal of any order suspending the effectiveness of such Shelf Registration Statement or file an additional
registration statement (a “Subsequent Shelf Registration Statement”) for an offering to be made on a delayed
or continuous basis pursuant to Rule 415 of the 1933 Act registering the resale from time to time by the Holders of all Registrable
Securities as of the time of such filing. If a Subsequent Shelf Registration Statement is filed, Pernix shall use its reasonable
best efforts to (i) cause such Subsequent Shelf Registration Statement to become effective under the 1933 Act as promptly as is
reasonably practicable after the filing thereof and (ii) keep such Subsequent Shelf Registration Statement continuously effective
and usable until the end of the Effectiveness Period. Any such Subsequent Shelf Registration Statement shall be a registration
statement on Form S-3 to the extent that Pernix is eligible to use such form. Otherwise, such Subsequent Shelf Registration Statement
shall be on another appropriate form and shall provide for the registration of such Registrable Securities for resale by the Holders
in accordance with any reasonable method of distribution elected by the Holders.

 

(d)           
Notwithstanding any other provisions hereof, Pernix shall use its reasonable efforts to ensure that (i) the Shelf Registration
Statement and any amendment thereto and any Prospectus forming part thereof (and any supplement

 

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thereto)
and any Free Writing Prospectus (and any supplement thereto) complies in all material respects with the 1933 Act and the rules
and regulations thereunder, (ii) the Shelf Registration Statement and any amendment thereto does not, when it becomes effective,
contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading and (iii) any Prospectus forming part of the Shelf Registration Statement, any Free
Writing Prospectus and any supplement to such Prospectus or Free Writing Prospectus (in each case as amended or supplemented from
time to time), does not include an untrue statement of a material fact or omit to state a material fact necessary in order to
make the statements, in light of the circumstances under which they were made, not misleading.

 

(e)           
Pernix agrees, if necessary, to supplement or amend the Shelf Registration Statement, as required by ‎Section 3.01(b) below,
and to furnish to the Holders copies of any such supplement or amendment promptly after its being used or filed with the SEC.

 

(f)           
Each Holder (other than the Initial Holders and their affiliates) wishing to sell Registrable Securities pursuant to a Shelf Registration
Statement and related Prospectus agrees to deliver a Notice and Questionnaire to Pernix at least five (5) Business Days prior
to any intended distribution of Registrable Securities under a Shelf Registration Statement. From and after the date the Initial
Shelf Registration Statement is declared effective, Pernix shall, as promptly as is practicable after the date a Notice and Questionnaire
is delivered, and in any event within five (5) Business Days after such date, (i) if required by applicable law, file with the
SEC a post-effective amendment to the Shelf Registration Statement or prepare and, if required by applicable law, file a supplement
to the related Prospectus or a supplement or amendment to any document incorporated therein by reference or file any other required
document so that the Holder delivering such Notice and Questionnaire is named as a selling security holder in the Shelf Registration
Statement and the related Prospectus in such a manner as to permit such Holder to deliver such Prospectus to purchasers of the
Registrable Securities in accordance with applicable law and, if Pernix shall file a post-effective amendment to the Shelf Registration
Statement, use its reasonable best efforts to cause such post-effective amendment to be declared effective under the 1933 Act
as promptly as is practicable, but in any event by the date that is forty-five (45) days after the date such post-effective amendment
is required by this clause to be filed; (ii) provide such Holder copies of any documents filed pursuant to Section 2.01(f)(i);
and (iii) notify such Holder as promptly as practicable after the effectiveness under the 1933 Act of any post-effective amendment
filed pursuant to Section 2.01(f)(i); provided, that if under applicable law Pernix has more than one option as to the
type or manner of making any such filing, it will make the required filing or filings in the manner or of a type that is reasonably
expected to result in the earliest availability of the Prospectus for effecting resales of Registrable Securities.

 

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Section
2.02. Expenses. Pernix shall pay all Registration Expenses in connection with the registration pursuant to ‎Section
2.01. Each Holder shall pay all underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition
of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

 

Section
2.03. Effectiveness. The Shelf Registration Statement pursuant to ‎Section 2.01 hereof will not be deemed to have become
effective unless it has been declared effective by the SEC; provided, however, that if, after it has been declared
effective, the offering of Registrable Securities pursuant to the Shelf Registration Statement is interfered with by any stop
order, injunction or other order or requirement of the SEC or any other governmental agency or court, such Registration Statement
will be deemed not to have become effective during the period of such interference, until the offering of Registrable Securities
pursuant to such Registration Statement may legally resume.

 

Section
2.04. Additional Interest. (a) If either (i) the Shelf Registration Statement relating to the offer and sale of the Registrable
Securities by the Holders from time to time is not filed with the SEC on or prior to the date that is 10 Business Days after the
date of a Request pursuant to Section 2.01(a), or (ii) the Shelf Registration Statement relating to the offer and sale of the
Registrable Securities by the Holders has not been declared effective on or prior to the date that is 75 days after the date of
such Request (each such event referred to in clauses (i) and (ii) above, a “Registration Default”), then additional
interest shall accrue on the Accreted Principal Amount of the Notes at the rate of (A) 0.25% per annum for each day during the
90-day period beginning on, and including, the date such Registration Default occurs and on which any Registration Default is
continuing, and (B) 0.50% per annum for each day thereafter on which any Registration Default is continuing; provided,
that all such additional interest shall be payable in cash only. Following the cure of all Registration Defaults the accrual of
Additional Interest will cease and the interest rate will revert to the original rate. Pernix will not be obligated to pay Additional
Interest in respect of more than one Registration Default at a time.

 

(b)           
If the Shelf Registration Statement is unusable by the Holders for any reason, and the aggregate number of days in any consecutive
twelve-month period for which the Shelf Registration Statement shall not be usable exceeds 45 days in the aggregate, then additional
interest shall accrue on the Accreted Principal Amount of the Notes at the rate of (i) 0.25% per annum for each day during the
90-day period beginning on, and including, the 45th day after the date such Shelf Registration Statement first ceases to be usable
in such twelve-month period and on which such Shelf Registration Statement shall not be usable, and (ii) 0.50% per annum for each
day thereafter on which such Shelf Registration Statement shall not be usable; provided, that all such additional interest
shall be payable in cash only. Upon the Shelf Registration Statement once again becoming usable, the interest rate borne by the
Notes will be reduced to the

 

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original
interest rate if Pernix is otherwise in compliance with this Agreement at such time. Additional Interest shall be computed based
on the actual number of days for which the Shelf Registration Statement is unusable.

 

(c)           
Pernix shall notify the Trustee and the Holders within three business days after each and every date (an “Event Date”)
for which Additional Interest is payable. Additional Interest shall be payable pursuant to the Indenture in the same manner as
regular interest on the Notes and shall be computed on the basis of a 360-day year comprised of twelve 30-day months

 

Article
3

Registration Procedures

 

Section
3.01. Registration Procedures. In connection with the obligations of Pernix with respect to the Shelf Registration Statement
pursuant to Section ‎2.01 hereof, Pernix shall:

 

(a)           
prepare and file with the SEC the Shelf Registration Statement, including or incorporating by reference all exhibits and financial
statements required under the 1933 Act to be filed or incorporated by reference therewith, within the relevant time period specified
in ‎Article 2, on the appropriate form under the 1933 Act, and (i) shall be available for the sale of the Registrable Securities
by the Holders thereof, (ii) shall comply as to form in all material respects with the requirements of the applicable form and
include or incorporate by reference all financial statements required by the SEC to be filed therewith or incorporated by reference
therein, and (iii) shall comply in all respects with the requirements of Regulation S-T under the 1933 Act, and use its commercially
reasonable efforts to cause such Registration Statement to become effective and remain effective in accordance with ‎Article
2 hereof;

 

(b)           
prepare and file with the SEC such pre- and post-effective amendments to the Shelf Registration Statement as may be (a) reasonably
requested by a Holder, or (b) necessary under applicable law to keep such Shelf Registration Statement effective for the applicable
period in accordance with ‎Article 2 hereof, and cause each Prospectus to be supplemented by any required prospectus supplement,
and as so supplemented to be filed pursuant to Rule 424 (or any similar provision then in force) under the 1933 Act and comply
with the provisions of the 1933 Act, the 1934 Act and the rules and regulations thereunder applicable to them with respect to
the disposition of all securities covered by each Registration Statement during the applicable period;

 

(c)           
(i) furnish to each Holder without charge, as many copies of each Prospectus, including each preliminary Prospectus and any amendment
or supplement thereto, any Free Writing Prospectus and any amendment or supplement thereto and such other documents as such Holder
may reasonably

 

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request,
including financial statements and schedules and, if such Holder so requests, all exhibits, in order to facilitate the public
sale or other disposition of the Registrable Securities (for the avoidance of doubt, any such supplement or amendment electronically
filed with the SEC on the EDGAR system shall be deemed furnished to the Holders); and (ii) hereby consent to the use of the Prospectus
or any amendment or supplement thereto and any Free Writing Prospectus or any amendment or supplement thereto by each of the Holders
in accordance with applicable law in connection with the offering and sale of the Registrable Securities covered by the applicable
Prospectus or any amendment or supplement thereto;

 

(d)           
use its best efforts to register or qualify the Registrable Securities under all applicable state securities or “blue sky”
laws of such jurisdictions as any Holder shall reasonably request by the time the Shelf Registration Statement is declared effective
by the SEC, and do any and all other acts and things which may be reasonably necessary or advisable to enable such Holder to consummate
the disposition in each such jurisdiction of such Registrable Securities owned by such Holder; provided, however,
that Pernix shall not be required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where
it is not then so qualified or would not otherwise be required to qualify but for this ‎Section 3.01(d), or (ii) take any
action which would subject it to general service of process or material taxation in any such jurisdiction where it is not then
so subject;

 

(e)           
notify promptly each Holder and, if requested by such Holder, confirm such advice in writing promptly (i) when the Shelf Registration
Statement has become effective and when any post-effective amendments and supplements thereto become effective, (ii) of any written
comments by the SEC or any request by the SEC or any state securities authority for post-effective amendments and supplements
to the Shelf Registration Statement, Prospectus and any Free Writing Prospectus or for additional information after the Shelf
Registration Statement has become effective, (iii) of the issuance by the SEC or any state securities authority of any stop order
suspending the effectiveness of the Shelf Registration Statement or any order by the SEC or any other regulatory authority preventing
or suspending the use of any preliminary or final Prospectus or the initiation or threatening of any proceeding for such purposes,
(iv) of the happening of any event or the discovery of any facts during the period the Shelf Registration Statement is effective
which makes any statement made in such Shelf Registration Statement or the related Prospectus or Free Writing Prospectus untrue
in any material respect or which requires the making of any changes in such Shelf Registration Statement, Prospectus or Free Writing
Prospectus in order to make the statements therein not misleading, (v) of the receipt by Pernix of any notification with respect
to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening
of any proceeding for such purpose, (vi) of any determination by Pernix that a post-effective amendment to such Shelf Registration
Statement would be appropriate,

 

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(vii)
of the filing of any applicable Prospectus (or any amendment or supplement thereto) or any Free Writing Prospectus (or any amendment
or supplement thereto), and (viii) if, at any time, the representations and warranties of Pernix in the Exchange Agreement or
any applicable underwriting agreement cease to be true and correct in all material respects;

 

(f)           
furnish counsel for the Holders copies of any comment letters received from the SEC or any other request by the SEC or any state
securities authority for amendments or supplements to the Shelf Registration Statement, Prospectus or any Free Writing Prospectus
or for additional information;

 

(g)           
use its best efforts to prevent, or obtain the withdrawal of, any stop order or other order or notice preventing or suspending
the effectiveness of the Shelf Registration Statement, any preliminary or final prospectus or any Free Writing Prospectus at the
earliest possible moment;

 

(h)           
furnish to the Holders without charge, at least one conformed copy (or one electronically reproducible conformed copy) of each
Registration Statement and any post-effective amendment thereto, including financial statements and schedules (without documents
incorporated therein by reference and all exhibits thereto, unless requested);

 

(i)           
cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities
to be sold and not bearing any restrictive legends (or arrange for the book entry transfer of securities in the case of uncertificated
securities); and enable such Registrable Securities to be in such denominations, if applicable, (consistent with the provisions
of the Indenture) and registered in such names as the Holders may reasonably request at least two business days prior to the closing
of any sale of Registrable Securities;

 

(j)           
upon the occurrence of any event or the discovery of any facts, each as contemplated by Sections 3.01(e)(iv) and ‎3.01(e)(v)
hereof, as promptly as practicable after the occurrence of such an event, use its reasonable efforts to prepare a supplement or
post-effective amendment to the Shelf Registration Statement or the related Prospectus, Free Writing Prospectus or any document
incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of the
Registrable Securities, such Prospectus or Free Writing Prospectus will not contain at the time of such delivery any untrue statement
of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading or will remain so qualified. At such time as such public disclosure is otherwise made or
Pernix determine that such disclosure is not necessary, in each case to correct any misstatement of a material fact or to include
any omitted material fact, Pernix agree as promptly as practicable to notify each Holder
of such determination and to furnish to each

 

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Holder
such number of copies of the Prospectus or Free Writing Prospectus, as amended or supplemented, as such Holder may reasonably
request;

 

(k)           
a reasonable time prior to the filing of the Shelf Registration Statement, any Prospectus, any amendment to the Shelf Registration
Statement or amendment or supplement to a Prospectus, Free Writing Prospectus or any document which is to be incorporated by reference
into the Shelf Registration Statement, a Prospectus or a Free Writing Prospectus after initial filing of the Shelf Registration
Statement, provide copies of such document to the Holders; and make representatives of Pernix, as shall be reasonably requested
by the Holders, available for discussion of such document;

 

(l)           
a reasonable time prior to filing the Shelf Registration Statement, any Prospectus forming a part thereof, any Free Writing Prospectus,
any amendment to such Shelf Registration Statement or amendment or supplement to such Prospectus or Free Writing Prospectus, provide
copies of such document to the Holders and to counsel for the Holders, make such changes in any such document prior to the filing
thereof as the Holders and the counsel to the Holders reasonably request;

 

(m)           
use its best efforts to cause all Registrable Securities that are Common Stock to be listed on any securities exchange on which
Common Stock is then listed;

 

(n)           
otherwise comply with all applicable rules and regulations of the SEC and make available to its security holders, as soon as reasonably
practicable, an earning statement covering at least 12 months which shall satisfy the provisions of Section 11(a) of the 1933
Act and Rule 158 thereunder;

 

(o)           
reasonably cooperate and assist in any filings required to be made with FINRA;

 

(p)       provide
and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by the applicable Registration
Statement from and after a date no later than the effective date of such Registration Statement;

 

(r)       take
all reasonable action to ensure that any Free Writing Prospectus utilized in connection with the disposition of any Registrable
Securities complies win all material respects with the 1933 Act, is filed in accordance with the 1933 Act to the extent required
thereby, is retained in accordance with the 1933 Act to the extent required thereby; and

 

(s)
       take all such other reasonable actions as are necessary or advisable in order to expedite
or facilitate the disposition of such Registrable Securities.

 

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Pernix
may (as a condition to the filing of the Shelf Registration) require each Holder to furnish to Pernix such information regarding
the Holder (including, without limitation, a customary selling holder questionnaire) and the proposed distribution by such Holder
of such Registrable Securities as Pernix may from time to time reasonably request in writing.

 

Each
Holder agrees that, upon receipt of any notice from Pernix of the happening of any event or the discovery of any facts, each of
the kind described in Section 3.01(e)(iv) hereof, such will forthwith discontinue disposition of Registrable Securities pursuant
to the Shelf Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus
or Free Writing Prospectus contemplated by ‎Section 3.01(j) hereof, and, if so directed by Pernix, such Holder will deliver
to Pernix (at Pernix’s expense) all copies in such Holder’s possession, other than permanent file copies then in such
Holder’s possession, of the Prospectus or Free Writing Prospectus covering such Registrable Securities current at the time
of receipt of such notice. In the event Pernix shall give any such notice, the period during which the Registration Statement
is required to be maintained effective shall be extended by the number of days during the period from and including the date of
the giving of such notice to and including the date when each Holder either receives the copies of the supplemented or amended
Prospectus or Free Writing Prospectus contemplated by Section 3.01(j) or is advised in writing by Pernix that the use of the Prospectus
may be resumed.

 

In
the event that Pernix fails to file the Shelf Registration Statement and maintain the effectiveness of the Shelf Registration
Statement as provided herein, Pernix shall not file any Registration Statement with respect to any securities (within the meaning
of Section 2(1) of the 1933 Act) of Pernix, other than Registrable Securities.

 

Article
4

Indemnification; Contribution

 

Section
4.01. Indemnification; Contribution. (a) Pernix agrees to indemnify and hold harmless each Holder (or certain funds and/or
accounts for which a Holder or any of its affiliates acts as investment advisor), its affiliates, its manager and the directors,
officers, employees and agents of such Holder, such manager and each Person who controls such Holder or such manager within the
meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act (each, a “Holder Indemnified Party”) as
follows:

 

(i)           
against any and all loss, liability, claim and damage as incurred, arising out of any untrue statement or alleged untrue statement
of a material fact contained in any Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable
Securities were

 

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registered
under the 1933 Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary
to make the statements therein not misleading, or arising out of any untrue statement or alleged untrue statement of a material
fact contained in any Prospectus (or any amendment or supplement thereto) or Free Writing Prospectus (or any amendment or supplement
thereto) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading;

 

(ii)           
against any and all loss, liability, claim and damage, as incurred, to the extent of the aggregate amount paid in settlement of
any litigation or suit, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of
any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided
that (subject to ‎Section 4.01(d) below) any such settlement is effected with the written consent of Pernix; and

 

(iii)           
against any and all expense (including the reasonable fees and disbursements of one counsel chosen by any indemnified party),
reasonably incurred in investigating, preparing or defending against any litigation or suit, or any investigation or proceeding
by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission,
or any such alleged untrue statement or omission, to the extent that any such expense is not paid under subparagraph ‎(i)
or ‎(ii) above;

 

provided,
however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising
out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to Pernix by any Holder expressly for use in the Shelf Registration Statement (or any amendment thereto),
any Prospectus (or any amendment or supplement thereto) or any Free Writing Prospectus (or any amendment or supplement thereto).
Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party
and shall survive the transfer of such securities by such indemnified party.

 

(b)           
The Holders severally and jointly agree to indemnify and hold harmless Pernix and its directors and officers, and each Person,
if any, who controls Pernix within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all
loss, liability, claim, damage and expense described in the indemnity contained in ‎Section 4.01(a) hereof, as incurred, but
only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Shelf Registration
Statement (or any amendment

 

    13 

     

    

 

thereto)
or any Prospectus included therein (or any amendment or supplement thereto) or any Free Writing Prospectus (or any amendment or
supplement thereto) in reliance upon and in conformity with written information with respect to the Holders furnished to Pernix
by the Holders expressly for use in the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment
or supplement thereto) or such Free Writing Prospectus (or any amendment or supplement thereto) and has not been corrected in
a subsequent writing prior to or concurrently with the sale of the Registrable Securities to the Person asserting the claim; provided,
however, that no such Holder Indemnified Party shall be liable for any claims hereunder in excess of the amount of net
proceeds received by such Holder Indemnified Party from the sale of Registrable Securities pursuant to such Shelf Registration
Statement.

 

(c)           
Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action or proceeding
commenced against it in respect of which indemnity may be sought hereunder, but failure so to notify an indemnifying party shall
not relieve such indemnifying party from any liability hereunder to the extent it is not actually and materially prejudiced as
a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this
indemnity agreement. An indemnifying party may participate at its own expense in the defense of such action; provided,
however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel
to the indemnified party. The indemnifying party or parties will be liable for the reasonable fees and expenses of one counsel
(in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action
or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances.
No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any litigation or suit, or any investigation or proceeding by any governmental agency
or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought
under this ‎Article 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement,
compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such
litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability
or a failure to act by or on behalf of any indemnified party.

 

(d)           
If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable
fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated
by ‎Section 4.01(a)(ii) effected without its written consent if (i) such settlement is entered into more than 60 days after
receipt by such indemnifying party of the aforesaid request, (ii) such

 

    14 

     

    

 

indemnifying
party shall have received notice of the terms of such settlement at least 45 days prior to such settlement being entered into
and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the
date of such settlement.

 

(e)           
If the indemnification provided for in this ‎Article 4 is for any reason unavailable to or insufficient to hold harmless an
indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified
party, as incurred, in such proportion as is appropriate to reflect the relative fault of Pernix on the one hand and the Holders
on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations; provided, however, that in no event shall any
Holder Indemnified Party be liable for any claims hereunder in excess of the amount of net proceeds received by such Holder Indemnified
Party from the sale of Registrable Securities pursuant to any Shelf Registration Statement filed pursuant to this Agreement.

 

The
relative fault of Pernix on the one hand and the Holder Indemnified Parties on the other hand shall be determined by reference
to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission
to state a material fact relates to information supplied by Pernix or the Holder Indemnified Parties and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

Pernix
and the Holders agree that it would not be just and equitable if contribution pursuant to this ‎Article 4 were determined
by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to above in this ‎Article 4. The aggregate amount of
losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this ‎Article
4 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing
or defending against any litigation or suit, or any investigation or proceeding by any governmental agency or body, commenced
or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission.

 

No
Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
from any Person who was not guilty of such fraudulent misrepresentation.

 

For
purposes of this ‎Article 4, each Person, if any, who controls a Holder within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act

 

    15 

     

    

 

shall
have the same rights to contribution as such Holder, and each director of an Issuer, and each Person, if any, who controls an
Issuer within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution
as Pernix.

 

Article
5

Miscellaneous

 

Section
5.01. No Inconsistent Agreements. Pernix has not entered into, and Pernix will not after the date of this Agreement enter
into, any agreement which is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof. The rights granted to the Holders hereunder do not and will not for the term of this Agreement in any way
conflict with the rights granted to the holders of Pernix’s other issued and outstanding securities under any such agreements.

 

Section
5.02. Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless Pernix has
obtained the written consent of Holders holding a majority of the then outstanding Registrable Securities (with holders of Notes
deemed to be the holders, for purposes of this Section, of the number of outstanding Underlying Shares into which such Notes are
or would be exchangeable as of the date on which such consent is requested). Each Holder shall be bound by any such amendment,
modification, supplement, waiver or consent effected pursuant to this Section 5.02, whether or not any notice, writing or marking
indicating such amendment, modification, supplement, waiver or consent appears on the Registrable Securities or is delivered to
such Holder.

 

Section
5.03. Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand
delivery, registered first-class mail, telex, telecopier, or any courier guaranteeing overnight delivery (a) if to a Holder, at
the most current address given by the Holder to Pernix by means of a notice given in accordance with the provisions of this ‎Section
5.03, which address, in the case of the Initial Holders, initially is the address set forth in the Exchange Agreement; (b) if
to any other Holder, at the most current address given by such Holder to Pernix by means of a notice given in accordance with
the provisions of this Section 5.03; and (c) if to Pernix, at the address set forth in the Exchange Agreement, and thereafter
at such other address of which notice is given in accordance with the provisions of this ‎Section 5.03.

 

All
such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered;
two business days after being deposited in the mail, postage prepaid, if mailed; when answered back, 

 

    16 

     

    

 

if
telexed; when receipt is acknowledged, if telecopied; and on the next business day if timely delivered to an air courier guaranteeing
overnight delivery.

 

Copies
of all such notices, demands, or other communications shall be concurrently delivered by the person giving the same to the Trustee
under the Indenture, at the address specified in such Indenture.

 

Section
5.04. Successor and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors, assigns and
transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders.
If any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by operation of law or otherwise,
such Registrable Securities shall be held subject to all of the terms of this Agreement, and by taking and holding such Registrable
Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions
of this Agreement. The Initial Holders shall have no liability or obligation to Pernix or any of its Subsidiaries with respect
to any failure by a other Holder to comply with, or any breach by any other Holder of, any of the obligations of such Holder under
this Agreement.

 

Section
5.05. Specific Enforcement. Without limiting the remedies available to the Holders, Pernix acknowledges that any failure
by Pernix to comply with its obligations under Sections ‎2.01 through ‎2.03 hereof may result in material irreparable
injury to the Holders for which there is no adequate remedy at law, that it would not be possible to measure damages for such
injuries precisely and that, in the event of any such failure, any Holder may obtain such relief as may be required to specifically
enforce Pernix’s obligations under Sections ‎2.01 through ‎2.03 hereof.

 

Section
5.06. Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement.

 

Section
5.07. Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof.

 

Section
5.08. Governing Law. THIS AGREEMENT, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT,
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT
OF LAWS THEREOF.

 

    17 

     

    

 

Section
5.09. Severability. In the event that any one or more of the provisions contained herein, or the application thereof in
any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

 

 

 

    18 

     

    

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

 

	 	Pernix
    Therapeutics Holdings, Inc.
	 	 
	 	 
	 	By:	/s/
    K. R. Pina
	 	 	Name:Kenneth R. Pina
	 	 	Title:Corporate Secretary
	 	 

	 	 

	 	Pernix
    Ireland Pain Limited
	 	 
	 	 
	 	By:	/s/
    John A. Sedor
	 	 	Name:John A. Sedor
	 	 	Title:Director

 

 

     

     

    

Confirmed
and accepted as of the date first above written:

 

	1992
                    MSF International Ltd.

         

        By:
         Highbridge Capital Management, LLC, as trading manager and not in its individual capacity

         

	By:	/s/
    Jonathan Segal
	 	Name:Jonathan Segal
	 
	Title:
                    Managing Director

         

	By:	/s/
    Jason Hempel
	 	Name:Jason Hempel
	 	Title:Managing Director
	 	 

	1992
                    Tactical Credit Master Fund, L.P.

         

        By:
         Highbridge Capital Management, LLC, as trading manager and not in its individual capacity

         

	By:	/s/
    Jonathan Segal
	 	Name:Jonathan Segal
	 	Title: Managing Director
	 	 

	By:	/s/
    Jason Hempel
	 	Name:Jason Hempel
	 	Title: Managing Director

 

 

     

     

    

Annex
A

 

Selling
Securityholder Notice and Questionnaire

 

 

     

     

    

 

 

Pernix
Therapeutics Holdings, Inc.

 

SELLING
SECURITYHOLDER NOTICE AND QUESTIONNAIRE

 

The
undersigned beneficial owner of common stock, par value $0.01 per share (the “Common Stock”), of Pernix Therapeutics
Holdings, Inc., a Maryland corporation (the “Company”), (the “Registrable Securities”) understands
that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”) a
registration statement (the “Registration Statement”) for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities, in accordance with
the terms of the Registration Rights Agreement, dated as of July 21, 2017 (the “Registration Rights Agreement”),
among the Company, Pernix Ireland Pain Limited, a company organized under the laws of Ireland, and the Initial Holders named
therein. A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below.

 

In
order to have Registrable Securities included in the Registration Statement (or a supplement or amendment thereto), this Selling
Securityholder Notice and Questionnaire (“Selling Securityholder Questionnaire”) must be completed, executed
and delivered to the Company at the address set forth herein for receipt on or before the dates required in the Registration Rights
Agreement. Record or beneficial owners of Registrable Securities who do not properly complete, execute and return this Selling
Securityholder Questionnaire by such dates (i) will not be named as selling securityholders in the Registration Statement
and (ii) may not use the Prospectus forming a part thereof for resales of Registrable Securities.

 

Certain
legal consequences arise from being named as a selling securityholder in the Registration Statement and the related prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding
the consequences of being named or not being named as a selling securityholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The
undersigned beneficial owner (the “Selling Securityholder”) of Registrable Securities hereby elects to include
the Registrable Securities owned by it and listed below in Item 3 (unless otherwise specified under such Item 4) in
the Registration Statement. The undersigned, by signing and returning this Selling Securityholder Questionnaire, agrees to be
bound with respect to such Registrable Securities by the terms and conditions of this Selling Securityholder Questionnaire and
the Registration Rights Agreement, as if the undersigned Selling Securityholder were an original party thereto.

 

     

     

    

QUESTIONNAIRE

 

Your
signature at the end of this Questionnaire will constitute your consent to the use by the Company in the Registration Statement
of the information contained in your answers. You understand that copies of this Questionnaire, as completed by you, and all
further communications regarding the matters contemplated herein, will be relied upon by the Company and its counsel and other
representatives in connection with the preparation of the Registration Statement.

 

If
the space provided for your response is insufficient, please attach additional sheets. 

 

Certain
capitalized terms used in this Questionnaire have technical meanings that are defined in the Glossary at the end of this Questionnaire.
You should read and understand these definitions before completing this Questionnaire.

 

The
Selling Securityholder hereby provides the following information to the Company and represents and warrants that such information
is accurate and complete:

 

1.       Name
of Selling Securityholder:

 

		(a)	Full
legal name of Selling Securityholder:

 

		(b)	Full
                                         legal name of DTC participant (if applicable and if not the same as (a) above) through
                                         which the shares of Common Stock listed in Item 3 are held:

 

2.       Address
for Notices to Selling Securityholder: 

 

		(i)	If
                                         you are an Individual Selling Securityholder, please provide the following (if
                                         stock is held jointly, please provide for all owners):

 

	Date
    of Birth:	
	 	 
	Home
    Address:	
	 	
	 	
	 	 
	Telephone:	
	Fax:	
	E-Mail:	

	 	 	 
		(ii)	If
                                         you are an Entity Selling Securityholder, please provide:
	 	 	 
	 	 	State
    of Incorporation or Jurisdiction of Organization:

 

    2 

     

    

 

 

	 	
	 	
	Address:	
	 	
	 	
	 	
	Telephone:	
	Fax:	
	E-mail:	
	 	 
	Name
    and Position of Authorized Signatory:
	 	 
	 	

 

 

		3.	Number
of shares of Common Stock beneficially owned (as defined in Item (4)) by the Selling Securityholder:  __________________________________

 

		4.	Beneficial
                                         Ownership of Shares of Common Stock: 

 

“Beneficial
ownership” is determined according to rules promulgated by the SEC. Under these rules, a person is deemed to beneficially
own a security if that person has or shares voting power or investment power with respect to that security, or has the right to
acquire beneficial ownership of that security within 60 days, including through the exercise of any option or other right or the
conversion of any other security. Securities “beneficially owned” by the Selling Securityholder include not only securities
held in his, her or its name, but also securities held by others for his, her or its benefit (regardless of how they are registered).
This includes securities held for the Selling Securityholder by custodians, brokers, relatives, executors, administrators or trustees
(including trusts in which the person has only a remainder interest) if by reason of any contract, relationship, understanding
or arrangement he, she or it obtains benefits substantially equivalent to those of ownership; securities held for the Selling
Securityholder’s account by pledgees; securities owned by a partnership of which the Selling Securityholder is a partner;
and securities owned by any corporation which the Selling Securityholder should regard as a personal holding corporation.

 

(a)       Please
state the name of the person or entity who has voting or investment power over the shares of Common Stock that are currently held
by the Selling Securityholder. Please describe who has or shares: (i) voting power, which includes the power to vote, or to direct
the voting of, such security; and/or (ii) investment power, which includes the power to dispose, or to direct the disposition
of, the shares of Common Stock currently held by the Selling Securityholder directly or indirectly, through any contract, arrangement,
understanding or relationship.

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

 

    3 

     

    

 

(b)       Nature
of Beneficial Ownership.

 

If
the name of the beneficial owner of the shares of Common Stock set forth in your response to Item 4(a) above is that of a limited
partnership, state the names of the general partners of such limited partnership:

	 	 
	 	 
	 	 
	 	 
	 	 

 

(c)       With
respect to each general partner listed in Item 4(b) above who is not a natural person, and is not publicly-held, name each shareholder
(or holder of partnership interests, if applicable) of such general partner. If any of these named shareholders are not natural
persons or publicly-held entities, please provide the same information. This process should be repeated until you reach natural
persons or a publicly-held entity.

	 	 
	 	 
	 	 
	 	 
	 	 

 

(d)       Name
of your controlling shareholder(s) (the "Controlling Entity"). If the Controlling Entity is not a natural person
and is not a publicly-held entity, name each shareholder of such Controlling Entity. If any of these named shareholders are not
natural persons or publicly-held entities, please provide the same information. This process should be repeated until you reach
natural persons or a publicly-held entity.

 

(i)
Full legal name of Controlling Entity(ies) or natural person(s) who have sole or shared voting or dispositive power over the shares
of Common Stock:

	 	 
	 	 
	 	 
	 	 
	 	 

  

		(ii)	Business
                                         address (including street address) (or residence if no business address), telephone number
                                         and facsimile number of such person(s):

 

Address:

	 	 
	 	 
	 	 
	 	 

	Telephone
No.:	 
	Fax
No.:

	 

 

    4 

     

    

 

(iii)
Name of shareholders:

	 	 
	 	 
	 	 

 

		5.	Beneficial
                                         Ownership of Other Securities of the Company:

 

Except
as set forth below in this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Company
other than the shares of Common Stock listed above in Item (3) (“Other Securities”).

 

		(a)	Type
                                         and amount of Other Securities beneficially owned by the Selling Securityholder:

	 	 

 

		(b)	CUSIP
No(s). of such Other Securities beneficially owned:

	 	 

 

		6.	Relationship
                                         with the Company:

 

Except
as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (5% or
more) has held any position or office or has had any other material relationship with the Company (or their predecessors or affiliates)
during the past three years. For the purposes of this question, material relationship includes, within the past three years,
service on the board of directors, entry into an employment agreement or entry into a consulting agreement.

 

State
any exceptions here:

	 	 
	 	 

 

		7.	Broker-Dealer
Status and Affiliations:

	 	 

 

The
Commission requires that all Selling Securityholders that are registered broker-dealers or affiliates of registered broker-dealers
be so identified in the Registration Statement. In addition, the Commission requires that all Selling Securityholders that are
registered broker-dealers be named as underwriters in the Registration Statement and related prospectus, even if they did not
receive the shares of Common Stock as compensation for underwriting activities.

 

(a)       Is
the Selling Securityholder a registered broker-dealer?

__________________________________________________________________

 

		(b)	If
                                         the answer to Item 7(a) is yes, did the Selling Securityholder acquire the shares of
                                         Common Stock as compensation for placement agent or investment banking services to the
                                         Company (if yes, please explain)?

 

    5 

     

    

 

__________________________________________________________________

 

__________________________________________________________________

 

__________________________________________________________________

 

		(c)	If
                                         the answer to Item 7(a) is yes, did the Selling Securityholder acquire the shares of
                                         Common Stock for investment purposes (if you answered no to both Item 7(b) and this Item
                                         7(c), please explain the Selling Securityholder’s reason for acquiring the shares
                                         of Common Stock)?

 

__________________________________________________________________

 

__________________________________________________________________

 

__________________________________________________________________

 

		(d)	Is
                                         the Selling Securityholder an affiliate of a registered broker-dealer(s)? (For purposes
                                         of this response, an “affiliate” of, or person “affiliated” with,
                                         a specified person, is a person that directly, or indirectly through one or more intermediaries,
                                         controls or is controlled by, or is under common control with, the person specified.)

 

__________________________________________________________________

 

		(e)	If
                                         the answer to Item 7(d) is yes, identify the registered broker-dealer(s) and describe
                                         the nature of the affiliation(s):

 

__________________________________________________________________

 

__________________________________________________________________

 

__________________________________________________________________

 

		(f)	If
                                         the answer to Item 7(a) or 7(d) is yes, did the Selling Securityholder, at the time of
                                         purchase of the shares of Common Stock, have any agreements, understandings or arrangements,
                                         directly or indirectly, with any person to distribute the shares of Common Stock (if
                                         yes, please explain)?

 

__________________________________________________________________

 

__________________________________________________________________

 

__________________________________________________________________

 

 

    6 

     

    

 

CONCLUDING STATEMENT

 

I
understand that this information may be used in connection with the Registration Statement.

 

I
will promptly notify you of any changes in such information which may occur subsequent hereto and prior to the filing of the Registration
Statement. I understand and agree that this Questionnaire, as completed by me, and my further communications regarding the matters
contemplated herein, will be relied upon by the Company and its counsel and other representatives in connection with the preparation
of the Registration Statement.

 

I
understand that material misstatements or the omission of material facts in the Registration Statement may give rise to civil
and criminal liabilities to the Company. I will notify you and the Company of any such misstatement of a material fact in the
Registration Statement related to the information contained in this Questionnaire, and of the omission of any material fact necessary
to make the statements contained therein not misleading, as soon as practicable after a copy of the Registration Statement has
been provided to me.

 

IN
WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Questionnaire to be executed and delivered either in
person or by its authorized agent.

 

 

	 	Beneficial
    Owner
	 	 	 
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:

  

Dated:
______________________

 

 

    7 

     

    

Glossary

 

The
following is a list of definitions of certain technical terms used in the Questionnaire:

 

An
“affiliate” of, or a person “affiliated” with, a specified person is a person that directly, or indirectly
through one or more intermediaries, controls, is controlled by, or is under common control with such person.

 

“Beneficial
Owner” of a security includes any of the following persons:

 

		(1)	any
                                         person who, directly or indirectly, through any contract, arrangement, understanding,
                                         relationship, or otherwise, has or shares:

 

		(a)	voting
                                         power with respect to such security, which includes the power to vote, or to direct the
                                         voting of, such security; or

 

		(b)	investment
                                         power with respect to such security, which includes the power to dispose, or to direct
                                         the disposition of, such security;

 

		(2)	any
                                         person who, directly or indirectly, creates or uses a trust, proxy, power of attorney,
                                         pooling arrangement or any other contract, arrangement or device with the purpose or
                                         effect of divesting such person of Beneficial Ownership of a security or preventing the
                                         vesting of such Beneficial Ownership as a part of a plan or scheme to evade the reporting
                                         requirements of Section 13(d) or 13(g) of the Securities Exchange Act of 1934; and

 

		(3)	any
                                         person who has the right to acquire “Beneficial Ownership” (as defined by
                                         reference to paragraph (1) above) of a security within 60 days, including, but not limited
                                         to, any right to acquire such security (a) through the exercise of any option, warrant
                                         or right, (b) through the conversion of a security, (c) pursuant to the power to revoke
                                         a trust, discretionary account or similar arrangement, or (d) pursuant to the automatic
                                         termination of a trust, discretionary account or similar arrangement; provided, however,
                                         that any person who acquires a security or power specified in clauses (a), (b) or (c)
                                         above with the purpose or effect of changing or influencing the control of the issuer,
                                         or in connection with or as a participant in any transaction having such purpose or effect,
                                         immediately upon such acquisition shall be deemed to be the Beneficial Owner of the securities
                                         which may be acquired through the exercise or conversion of such security or power.

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of
a person, whether through the ownership of voting securities, by contract, or otherwise. The terms “controls,” “controlling”
and “controlled” have correlative meanings.

 

“Person”
refers both to natural persons as well as to business entities such as corporations, partnerships, associations, joint stock companies,
business trusts and unincorporated organizations.Exhibit 4.2

 

CHINA BIOLOGIC PRODUCTS HOLDINGS, INC.

 

2008 EQUITY INCENTIVE PLAN

(as assumed and amended on July 21, 2017)

 

1.          Purposes.
This Plan permits the Administrator to grant Options, Restricted Shares, Restricted Share Units, Share Appreciation Rights, and
Other Share-Based Awards in order to retain, attract and motivate Employees, Directors and Consultants and to provide such persons
with equity ownership opportunities and performance-based incentives that are intended to align their interests with those of our
shareholders.

 

2.          Shares
Subject to the Plan. Subject to adjustment as provided in Section 12, a maximum of five million (5,000,000) Shares will be
available for issuance under the Plan. The Shares may be authorized and unissued Shares or Shares now held or subsequently acquired
by the Company.

 

If an Award granted under the Plan lapses, is
forfeited, terminated or canceled, or expires without being exercised or without the issuance of Shares, the unissued and unpurchased
Shares subject to the Award will become available for future grant or sale under the Plan (unless the Plan has terminated).

 

Shares that have actually been issued under
the Plan under any Award will not be returned to the Plan and will not become available for grant or sale under the Plan. With
respect to SARs, only Shares actually issued pursuant to a SAR will cease to be available under the Plan; all remaining Shares
subject to the SARs will remain available for future grant or sale under the Plan (unless the Plan has terminated). Except with
respect to issued Shares, Shares withheld by the Company to pay the exercise price of an Award or to satisfy tax withholding obligations
with respect to an Award will become available for future grant or sale under the Plan. To the extent an Award under the Plan is
paid out in cash rather than Shares, such cash payment will not reduce the number of Shares available for issuance under the Plan.

 

The Company, during the term of this Plan, will
at all time reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of the Plan.

 

3.          Administration
of the Plan.

 

(a)          Administration.
The Board will act as Plan Administrator or will appoint a Committee consistent with Applicable Laws to act as Administrator. If
and so long as the Shares are registered under Section 12(b) or 12(g) of the Exchange Act, the Board will consider
in selecting the membership of any Committee acting as Administrator the requirements regarding (i) “nonemployee directors”
within the meaning of Rule 16b-3 under the Exchange Act; (ii) “independent directors” as described in the listing requirements
for any stock exchange on which Shares are listed; and (iii) Section 14(b)(i) of the Plan if the Company pays salaries for which
it claims on its U.S. tax returns deductions that are subject to the Code section 162(m) limitation. The Board will determine any
Committee member’s term and may remove a Committee member at any time.

 

    	 	 	 

     

    

 

(b)          Powers
of the Administrator. The Administrator will, to the maximum extent permitted by Applicable Laws and the Plan, have full and
sole discretionary authority:

 

(i)          to
determine Fair Market Value;

 

(ii)         to
select the Service Providers to whom Awards may be granted;

 

(iii)        to
determine the number of Shares to be covered by each Award;

 

(iv)        to
approve forms of agreement for use under the Plan;

 

(v)         to
determine the terms and conditions of each Award, including without limitation, the exercise price, amount, the exercise period,
vesting conditions, any vesting acceleration, any waiver of forfeiture restrictions, and any other restriction, condition, or limitation
regarding any Award or its related Shares;

 

(vi)        to
construe and interpret the terms of the Plan and Awards and resolve any disputes regarding Plan and Award provisions;

 

(vii)       to
prescribe, amend and rescind rules and regulations relating to the Plan;

 

(viii)      to
modify or amend each Award;

 

(ix)         to
allow Participants to satisfy withholding tax obligations as permitted by Section 13;

 

(x)         to
authorize any person to execute instruments to effectuate an Award;

 

(xi)        to
delay issuance of Shares or suspend a Participant’s right to exercise an Award to comply with Applicable Laws; and

 

(xii)       to
determine any issues necessary or advisable for administering the Plan.

 

(c)          Effect
of Administrator’s Decision. Any act or decision of the Administrator will be binding and conclusive on the Company,
all Participants, anyone holding an Award, and any person claiming under or through any Participant.

 

    	 	2	 

     

    

 

4.          Eligibility.
ISOs may be granted only to Employees who are subject to U.S. tax. NSOs, Restricted Shares, RSUs, SARs, and Other Share-Based Awards
may be granted to Service Providers; provided that NSOs and SARs may not be granted to Service Providers of any Parent if the Service
Provider is subject to U.S. tax. Service Providers include prospective employees or consultants to whom Awards are granted in connection
with written offers of employment or engagement of services, respectively, with the Company; provided that no Award granted to
a prospective employee or consultant may be exercised or purchased prior to the commencement of employment or services with the
Company.

 

5.          Share
Options.

 

(a)          Grant
of Options. The Administrator may grant Options in such amounts as it will determine from time to time. The Administrator may
grant NSOs, ISOs, or any combination of the two. ISOs will be granted in accordance with Section 14(a) of the Plan. NSOs and SARs
granted to U.S. taxpayers will be granted in accordance with Section 14(c) of the Plan.

 

(b)          Option
Award Agreement. Each Option will be evidenced by an Award Agreement that will specify the type of Option granted, the exercise
price, the number of Shares to which the Option pertains, vesting conditions, the exercise period, restrictions on transferability,
and any other terms and conditions specified by the Administrator (which need not be identical among Participants). If the Award
Agreement does not specify that the Option is to be treated as an ISO, the Option will be a NSO.

 

(c)          Exercise
Price. The exercise price per share with respect to each Option will be determined by the Administrator provided that the exercise
price per share cannot be less than the Fair Market Value of a Share on the Grant Date.

 

(d)          Exercisability.
An Option may be exercised at such time as the Option vests. No Option will be exercisable after the expiration of ten (10) years
from the Grant Date, provided that if an exercise would violate applicable securities laws, the Option will be exercisable no more
than thirty (30) days after the exercise of the Option first would no longer violate applicable securities laws. Subject to the
terms of the Plan, Options may be exercised at such times, and in such amount and subject to such restrictions as will be determined
by the Administrator, in its discretion.

 

(e)          Vesting
Conditions. The Administrator may impose any conditions on the vesting of an Option including, but not limited to the achievement
of Company-wide, business unit, and individual goals (including, but not limited to continued employment or service).

 

(f)          Modification
of Option Awards. The Administrator may accelerate the exercisability of any Option or a portion of any Option. The Administrator
may extend the period for exercise generally provided the exercise period is not extended beyond the earlier of the original term
of the Option or ten (10) years from the original Grant Date.

 

(g)          Exercise
of Option. An Option is exercised when the Company receives: (1) notice of exercise (in such form as the Administrator will
specify from time to time) from the person entitled to exercise the Option, and (2) full payment for the Shares with respect to
which the Option is exercised (together with all applicable withholding taxes). An Option may not be exercised for a fraction of
a Share. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the
Award Agreement and the Plan (together with all applicable withholding taxes). Such consideration may consist entirely of:

 

    	 	3	 

     

    

 

(i)          cash;

 

(ii)         check;

 

(iii)        to
the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, a promissory note;

 

(iv)        other
Shares, provided the Shares have a Fair Market Value on the date of exercise of the Option equal to the aggregate exercise price
for the Shares being purchased;

 

(v)         to
the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, in accordance with any broker-assisted cashless exercise
procedures approved by the Company and as in effect from time to time;

 

(vi)        by
requesting the Company to withhold such number of Shares then issuable upon exercise of the Option that have an aggregate Fair
Market Value equal to the exercise price for the Option being exercised;

 

(vii)       any
combination of the foregoing; or

 

(viii)      such
other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws.

 

(h)          Shares
Issued Upon Exercise. The Company will issue (or cause to be issued) Shares promptly after the Option is exercised. Shares
issued upon exercise of an Option will be issued in the name of the Optionee or, if requested by the Optionee, in the name of the
Optionee and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the register of members of
the Company), no right to vote or receive dividends or any other rights as a shareholder will exist with respect to the Shares,
notwithstanding the exercise of the Option. No adjustment will be made for a dividend or other right for which the record date
is prior to the date the Shares are issued, except as provided in Section 12.

 

(i)          Forfeiture
of Options. All unexercised Options will be forfeited to the Company in accordance with the terms and conditions set forth
in the Award Agreement and again will become available for grant under the Plan.

 

6.          Share
Appreciation Rights.

 

(a)          Grant
of SARs. The Administrator may grant SARs in such amounts as it will determine from time to time.

 

    	 	4	 

     

    

 

(b)          SAR
Award Agreement. Each SAR will be evidenced by an Award Agreement that will specify the exercise price, the number of Shares
underlying the SAR grant, vesting conditions, the exercise period, restrictions on transferability, and such other terms and conditions
specified by the Administrator (which need not be identical among Participants).

 

(c)          Exercise
Price. The exercise price per share with respect to each SAR will be determined by the Administrator provided that the exercise
price per share cannot be less than the Fair Market Value of a Share on the Grant Date.

 

(d)          Exercisability.
A SAR may be exercised at such time as the SAR vests. No SAR will be exercisable after the expiration of ten (10) years from the
Grant Date, provided that if an exercise would violate applicable securities laws, the SAR will be exercisable no more than thirty
(30) days after the exercise of the SAR first would no longer violate applicable securities laws. Subject to the terms of the Plan,
SARs may be exercised at such times, and in such amount and subject to such restrictions as will be determined by the Administrator,
in its discretion.

 

(e)          Vesting
Conditions. The Administrator may impose any conditions on the vesting of a SAR including, but not limited to the achievement
of Company-wide, business unit, and individual goals (including, but not limited to continued employment or service).

 

(f)          Modification
of SAR Awards. The Administrator may accelerate the exercisability of any SAR or a portion of any SAR. The Administrator may
extend the period for exercise generally provided the exercise period is not extended beyond the earlier of the original term of
the SAR or 10 years from the original Grant Date.

 

(g)          Exercise
of SAR. Upon exercise of a vested SAR, a Participant will be entitled to receive payment from the Company in an amount no greater
than (1) the difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times (2) the
number of Shares with respect to which the SAR is exercised. Payment may consist of cash, Shares of equivalent value, or a combination
thereof.

 

(i)          If
paid in Shares, the Company will issue (or cause to be issued) Shares promptly after the SAR is exercised. Until the Shares are
issued (as evidenced by the appropriate entry on the register of members of the Company), no right to vote or receive dividends
or any other rights as a shareholder will exist with respect to the Shares, notwithstanding the exercise of the SAR. No adjustment
will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided
in Section 12.

 

(ii)         If
paid in cash, the Company will pay the participant promptly after the SAR is exercised but in no event later than the 15th day
of the third month following the end of the year in which the SAR is exercised.

 

    	 	5	 

     

    

 

(h)          Forfeiture
of SARs. All unexercised SARs will be forfeited to the Company in accordance with the terms and conditions set forth in the
Award Agreement and again will become available for grant under the Plan.

 

7.          Restricted
Shares and Restricted Share Units.

 

(a)          Grant.
The Administrator may grant Restricted Shares or RSUs in such amounts and form as it will determine from time to time.

 

(b)          Award
Agreement. Each Award of Restricted Shares or RSUs will be evidenced by an Award Agreement that will specify the number and
form, vesting conditions, the Period of Restriction, purchase price (if any), method of payment, restrictions on transferability,
repurchase rights, and such other terms and conditions specified by the Administrator (which need not be identical among Participants).

 

(c)          Vesting
Conditions. The Administrator may impose vesting conditions on awards of Restricted Shares or RSUs including, but not limited
to the achievement of Company-wide, business unit, and individual goals (including, but not limited to continued employment or
service). Unless the Administrator determines otherwise, Restricted Shares will be held in escrow by the Company until the restrictions
on such Shares have lapsed.

 

(d)          Modification
of Restricted Shares or RSUs. The Administrator may accelerate or waive the time at which vesting conditions and other restrictions
lapse and provide for a complete or partial exception to an employment or service restriction.

 

(e)          Rights
During the Restriction Period. During the Period of Restriction, Service Providers who have been granted Restricted Shares
may exercise full voting rights and will be entitled to receive all dividends and other distributions paid with respect to those
Shares, unless the Administrator determines otherwise. Any such dividends or distributions paid in Shares will be subject to the
same restrictions on transferability and forfeitability as the Restricted Shares with respect to which they were paid. Restricted
Shares and RSUs may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable
Period of Restriction.

 

(f)          Removal
of Restrictions. All restrictions imposed on Restricted Shares and RSUs will lapse and the Period of Restriction will end upon
the satisfaction of the vesting conditions imposed by the Administrator at which time:

 

(i)          vested
Restricted Shares, if held in escrow, will be released from escrow as soon as practicable after the last day of the Period of Restriction
or at such other time as the Administrator may determine, but in no event later than the 15th day of the third month
following the end of the year in which vesting occurred, or

 

(ii)         vested
RSUs will be paid in Shares at the time provided for in the Award Agreement, but in no event later than the 15th day
of the third month following the end of the year in which vesting occurred.

 

    	 	6	 

     

    

 

(g)          Forfeiture.
All unvested Restricted Shares and RSUs for which restrictions have not lapsed will be forfeited to the Company on the date set
forth in the Award Agreement. Forfeited Restricted Shares will revert to the Company and will not be available for grant under
the Plan. Forfeited RSUs will become available for grant under the Plan.

 

8.          Other
Share-Based Awards. The Administrator may grant Other Share-Based Awards that are payable in, valued in whole or in part by
reference to, or otherwise based on or related to Shares as may be deemed by the Administrator to be consistent with the purposes
of the Plan. Other Share-Based Awards may include, without limitation, (a) Shares awarded purely as a bonus and not subject to
any restrictions or conditions, (b) grants in lieu of cash compensation, (c) other rights convertible or exchangeable into Shares,
and (d) awards valued by reference to the value of Shares or the value of securities of or the performance of specified Subsidiaries.
The Administrator will have the authority to determine the time or times at which Other Share-Based Awards will be granted, the
number of Shares or Share units and the like to be granted or covered pursuant to an Award, and all other terms and conditions
of an Award, including, but not limited to, the vesting period (if any), purchase price (if any), and whether such Awards will
be payable or paid in cash, Shares or otherwise. Each Other Share-Based Award will be evidenced by an Award Agreement.

 

9.          Cash
Settlement. The Administrator, in its sole discretion, may choose to settle any Award, in whole or in part, granted under the
Plan in cash in lieu of Shares. The value of such Award on the date of distribution will be determined in the same manner as the
Fair Market Value of Shares on the Grant Date of an Option.

 

10.        Leaves
of Absence/Transfer Between Locations. Unless the Administrator provides otherwise or as required by Applicable Laws, an Employee
will not cease to be an Employee in the case of (a) any leave of absence approved by the Employer or (b) transfers between locations
of the Employer or between the Company, its Parent, or any Subsidiary, but vesting of Awards will be suspended during any unpaid
leave of absence.

 

11.        Transferability
of Awards. An Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than
by will or by the laws of descent or distribution and Options and SARs may be exercised, during the lifetime of the Participant,
only by the Participant or the Participant’s legal representative.

 

12.        Adjustments;
Dissolution or Liquidation; Merger or Change in Control.

 

(a)          Adjustments.
In the event of a reorganization, recapitalization, share split, share dividend, extraordinary cash dividend, combination of shares,
merger, consolidation, rights offering, spin off, split off, split up or other event identified by the Committee, the Committee
will equitably adjust (i) the number and kind of shares authorized for issuance under the Plan, (ii) the number and kind of shares
subject to outstanding Awards, and (iii) the exercise price of Options and SARs.

 

(b)          Dissolution
or Liquidation. In the event of the dissolution or liquidation of the Company, the Administrator will notify each Participant
as soon as practicable prior to the effective date of such transaction. To the extent it has not been previously exercised, an
Award will terminate immediately prior to the dissolution or liquidation.

 

    	 	7	 

     

    

 

(c)          Change
in Control. In the event of a merger or Change in Control, the surviving or successor entity may either assume the Company’s
rights and obligations with respect to outstanding Awards or substitute outstanding Awards for substantially equivalent property
(including, but not limited to comparable equity interests in the surviving or successor entity) that are subject to vesting requirements
and repurchase restrictions no less favorable to the Participant than those in effect prior to the merger or Change in Control.

 

In the event that the successor corporation
does not assume or substitute Outstanding Awards, the Participant will fully vest in all Awards, all performance goals and vesting
criteria will be deemed to have been achieved at target levels, and all restrictions will lapse. Any Option or SAR that is not
assumed or substituted in the event of a Change in Control, will be exercisable for a period of time determined by the Administrator
in its sole discretion. The Administrator will provide reasonable notice of such exercise period to the Participant, and the Option
or SAR will terminate upon the expiration of such exercise period.

 

For the purposes of this Section 12(c)
an Award will be considered assumed if, following the Change in Control, the Award confers a right for each Share or Share equivalent
subject to the Award to purchase or receive the consideration (or for an Award payable in cash, the fair market value of the consideration)
received for each Share on the date of the transaction. If holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding Shares will be used. If the consideration received in the Change in Control
is not solely ordinary shares of the successor corporation or its Parent, the Administrator may, with the consent of the successor
corporation pay the Award in the form of ordinary shares of the successor corporation or its Parent equal in fair market value
to the per share consideration received by holders of Shares in the Change in Control.

 

Notwithstanding anything in this Section
12(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not
be considered assumed if the Company or its successor, without the Participant’s consent, modifies any performance goals
except a modification made solely to reflect the successor entity’s post-Change in Control corporate structure (or similar
entity level structure if the successor entity is not a corporation).

 

13.        Tax
Withholding.

 

(a)          Withholding
Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company will have
the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy
federal, state, local, foreign or other taxes required by Applicable Laws to be withheld with respect to such Award (or exercise
thereof).

 

    	 	8	 

     

    

 

(b)          Withholding
Arrangements. The Administrator may permit a Participant to satisfy tax withholding obligations, in whole or in part and without
limitation by (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable Shares having a Fair Market Value
(as of the date that the taxes should be withheld) equal to the withholding amount, or (iii) delivering to the Company already-owned
Shares having a Fair Market Value (as of the date that the taxes should be withheld) equal to the withholding amount.

 

14.        Provisions
Applicable In the Event the Company or the Service Provider is Subject to U.S. Taxation.

 

(a)          Grant
of Incentive Share Options. If the Administrator grants Options to Employees that may be subject to U.S. taxation, the Administrator
may grant such Employee an ISO. Section 5 of this Plan and the following terms apply to all grants that are intended to qualify
as ISO Awards:

 

(i)          Maximum
Amount. Subject to adjustment as provided in Section 12, to the extent consistent with Code section 422, not more than an aggregate
of five million (5,000,000) Shares may be issued pursuant to the exercise of ISOs granted under the Plan.

 

(ii)         Eligibility.
Only Employees of the Company, a Parent or a Subsidiary will be eligible for the grant of ISOs.

 

(iii)        Continuous
Employment. The Optionee must remain in the continuous employment of the Company, any Parent, or any Subsidiary from the ISO
Grant Date to the date that is three months prior to exercise. Service will be treated as continuous during a leave of absence
approved by the Employer that does not exceed three (3) months. A leave of absence approved by the Employer may exceed three (3)
months if reemployment upon expiration of such leave is guaranteed by statute or contract. An Option exercised more than three
months after termination of employment will be treated as a NSO.

 

(iv)        Award
Agreement.

 

(A)         The
Administrator will designate Options granted as ISOs in the Award Agreement.

 

(B)         The
Award Agreement will specify the term of the ISO. The term will not exceed ten (10) years from the Grant Date or five (5) years
from the Grant Date for Ten Percent Owners.

 

(C)         The
Award Agreement will specify an exercise price of not less than the Fair Market Value per Share on the Grant Date or one hundred
ten percent (110%) of the Fair Market Value per Share on the Grant Date for Ten Percent Owners.

 

    	 	9	 

     

    

 

(D)         The
Award Agreement will specify that an ISO is not transferable except by will, beneficiary designation or the laws of descent and
distribution.

 

(v)         Limitation
on ISOs. To the extent that the aggregate Fair Market Value of the Shares with respect to which ISOs are exercisable for the
first time by the Optionee during any calendar year (under all plans of the Company and any Parent or any Subsidiary) exceeds one
hundred thousand dollars ($100,000), Options will not qualify as ISOs and will be treated as NSOs. For purposes of this section,
ISOs will be taken into account in the order in which they were granted. The Fair Market Value of the Shares will be determined
as of the Grant Date.

 

(vi)        Notice
Required Upon Disqualifying Dispositions. The Optionee must notify the Company in writing within thirty (30) days after any
disposition of Shares acquired pursuant to the exercise of an ISO within two years from the Grant Date or one year from the exercise
date. The Optionee must also provide the Company with all information that the Company reasonably requests in connection with determining
the amount and character of Optionee’s income, the Company’s deduction, and the Company’s obligation to withhold
taxes or other amounts incurred by reason of a disqualifying disposition.

 

(b)          Performance-Based
Compensation. The Administrator may impose the following conditions on any Award under this Plan to any Service Provider that
may be subject to U.S. taxation on the Award:

 

(i)          Outside
Directors. Awards that the Administrator intends to qualify as “performance-based compensation” must be (A) granted
by a committee of the Board comprised solely of two or more “outside directors” within the meaning of Code section
162(m) and (B) administered in a manner that will enable such Awards to qualify as “performance-based compensation”
within the meaning of Code section 162(m).

 

(ii)         Maximum
Amount. In any calendar year, no eligible Employee may receive (A) with respect to Awards denominated in Shares, Awards covering
more than five hundred thousand (500,000) Shares (adjusted in accordance with Section 12), or (B) with respect to Awards denominated
in cash, Awards with a Fair Market Value exceeding that of five hundred thousand (500,000) Shares determined as of the Grant Date.

 

(iii)        Performance
Criteria. The performance goal applicable to any Award (other than an Option or SAR) that is intended to qualify as performance-based
compensation must be established in writing prior to the beginning of the Performance Period or at a later time as permitted by
Code section 162(m) and may be based on any one or more of the following performance measures that apply to the individual, a business
unit, or the Company as a whole:

 

    	 	10	 

     

    

 

(A)         increased
revenue;

 

(B)         net
income measures (including but not limited to income after capital costs and income before or after taxes);

 

(C)         share
price measures (including but not limited to growth measures and total shareholder return);

 

(D)         market
share;

 

(E)         earnings
per Share (actual or targeted growth);

 

(F)         earnings
before interest, taxes, depreciation, and amortization (“EBITDA”);

 

(G)         cash
flow measures (including but not limited to net cash flow and net cash flow before financing activities);

 

(H)         return
measures (including but not limited to return on equity, return on average assets, return on capital, risk-adjusted return on capital,
return on investors’ capital and return on average equity);

 

(I)         operating
measures (including operating income, funds from operations, cash from operations, after-tax operating income, sales volumes, production
volumes, and production efficiency);

 

(J)         expense
measures (including but not limited to overhead cost and general and administrative expense);

 

(K)         margins;

 

(L)         shareholder
value;

 

(M)         total
shareholder return;

 

(N)         proceeds
from dispositions;

 

(O)         production
volumes;

 

(P)         total
market value; and

 

(Q)         corporate
values measures (including but not limited to ethics compliance, environmental, and safety).

 

(iv)        The
terms of the performance goal applicable to any Award that is intended to qualify as performance-based compensation must preclude
discretion to increase the amount of compensation that would otherwise be due upon attainment of the goal.

 

    	 	11	 

     

    

 

(v)         Following
the completion of the Performance Period, the outside directors described in Section 14(b)(i) above must certify in writing whether
the applicable performance goals have been achieved for such Performance Period. In determining the amount earned, the Administrator
will have the right to reduce (but not increase) the amount payable at a given level of performance to take into account additional
factors that the Administrator may deem relevant to the assessment of individual or corporate performance for the Performance Period.

 

(c)          Share
Options and SARs Exempt from Code section 409A. Section 5 of this Plan and the following terms apply to all grants of NSOs
and SARs to Service Providers that are subject to U.S. taxation.

 

(i)          Eligibility.
Only Service Providers of the Company or a Related Entity will be eligible for the grant of NSOs or SARs intended to be exempt
from Code section 409A.

 

(ii)         Administration.

 

(A)         The
Administrator may not modify or amend the Options or SARs to the extent that the modification or amendment adds a feature allowing
for additional deferral within the meaning of Code section 409A, and

 

(B)         any
adjustment pursuant to Section 12 will be done in a manner consistent with Code section 409A and Treasury Regulations section 1.409A-1
et seq.

 

(C)         The
Company intends that no payments under this Plan will be subject to the tax imposed by Code section 409A. The Administrator will
interpret and administer the Plan in a manner that avoids the imposition of any increase in tax under Code section 409A(a)(1)(B),
and any ambiguities herein will be interpreted to satisfy the requirements of Code section 409A or any exemption thereto.

 

15.        No
Effect on Employment or Service. Neither the Plan nor any Award will confer upon any Participant any right with respect to
continuing the Participant’s relationship as a Service Provider with the Company, any Parent or any Subsidiary, nor will
either interfere in any way with the Participant’s right or the Company’s or its Parent’s or Subsidiary’s
right to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws.

 

16.        Effective
Date. The Plan’s effective date is May 9, 2008.

 

17.        Term
of Plan. The Plan will terminate on May 9, 2018, unless sooner terminated by the Board pursuant to Section 18.

 

18.        Amendment
and Termination of the Plan.

 

    	 	12	 

     

    

 

(a)          Amendment
and Termination. The Board may at any time amend, alter, suspend or terminate the Plan.

 

(b)          Shareholder
Approval. The Company will obtain shareholder approval of any Plan amendment to the extent necessary and desirable to comply
with Applicable Laws.

 

(c)          Effect
of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan will impair the rights of any
Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing
and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator’s ability to exercise
its powers with respect to Awards granted under the Plan prior to the Plan termination date.

 

19.        Conditions
Upon Issuance of Shares.

 

(a)          Legal
Compliance. The Administrator may delay or suspend the issuance and delivery of Shares, suspend the exercise of Options or
SARs, or suspend the Plan as necessary to comply with Applicable Laws. Shares will not be issued pursuant to the exercise of an
Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws and will
be further subject to the approval of counsel for the Company with respect to such compliance.

 

(b)          Investment
Representations. The Company may require any person exercising or purchasing an Award to represent and warrant that the Shares
are being purchased only for investment and without any present intention to sell or distribute such Shares.

 

20.        Inability
to Obtain Authority. If the Company is unable to obtain required authority from any regulatory body in order to lawfully issue
or sell Shares pursuant to this Plan, all rights with respect to such Shares will be void and the Company will have no liability
with respect to the failure to issue or sell such Shares.

 

21.        Repricing
Prohibited; Exchange and Buyout of Awards. The repricing of Options or SARs is prohibited without prior shareholder approval.
The Administrator may authorize the Company, with prior shareholder approval and the consent of the respective Participants, to
issue new Option or SAR Awards in exchange for the surrender and cancellation of any or all outstanding Awards. The Administrator
may repurchase Options with payment in cash, Shares or other consideration at any time pursuant to terms that are mutually agreeable
to the Company and the Participant..

 

22.        Governing
Law. The Plan, any Award Agreement, and documents evidencing Awards or rights relating to Awards will be construed, administered,
and governed in all respects under and by the laws of the State of Delaware, without giving effect to its conflicts or choice of
law principles.

 

    	 	13	 

     

    

 

23.        Definitions.
The following definitions apply to capitalized terms in the Plan:

 

“Administrator” means the
Board or Committee that administers the Plan pursuant to Section 3.

 

“Applicable Laws” means the
requirements relating to the administration of equity-based awards under Cayman Islands laws, U.S. state corporate laws, U.S. federal
and state securities laws, the Code, any stock exchange or quotation system on which the Shares are listed or quoted and the applicable
laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan.

 

“Award” means an Option,
a SAR, a Restricted Share, a RSU, or an Other Share-Based Award granted pursuant to the terms of the Plan.

 

“Award Agreement” means the
written agreement governing Plan Awards. The Award Agreement is subject to the terms and conditions of the Plan.

 

“Board” means the Board of
Directors of the Company.

 

“Change in Control” means
the occurrence of any of the following events:

 

(i)          Any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) who becomes the “beneficial owner”
(as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent
(50%) or more of the total voting power represented by the Company’s then outstanding voting securities except an acquisition
of securities directly from the Company; or

 

(ii)         The
consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets;

 

(iii)        A
change in the composition of the Board occurring within a two-year period that results in a Board where the majority of the Directors
(1) were elected or nominated in connection with an actual or threatened proxy contest involving Director elections, (2) were not
Directors as of the effective date of the Plan, or (3) were not elected, or nominated for election, to the Board with the affirmative
votes of a majority of the Directors who, at the time of the election or nomination were either Directors as of the effective date
of the Plan or Directors elected or nominated as herein described; or a combination of the three; or

 

(iv)        The
consummation of a merger or consolidation of the Company with any other entity, unless the voting securities of the Company immediately
prior to the merger or consolidation remain outstanding or are converted into voting securities of the surviving entity or parent
so that they continue to represent at least fifty percent (50%) of the total voting power represented by the voting securities
of the surviving entity (or parent) outstanding immediately after such merger or consolidation.

 

“Code” means the Internal
Revenue Code of 1986, as amended. Any reference in the Plan to a section of the Code will be a reference to any successor or amended
section of the Code.

 

    	 	14	 

     

    

 

“Committee” means the compensation
committee, if any, or such similar or successor Committee appointed by the Board. If the Board has not appointed a Committee, the
Board will function in the place of the Committee.

 

“Company” means China Biologic
Products Holdings, Inc., an exempted company incorporated under the laws of the Cayman Islands, or its successor.

 

“Consultant” means any person,
including an advisor, if: (1) the consultant or adviser is a natural person; (2) the consultant or adviser renders bona fide
services to the Company or any Subsidiary; and (3) the services rendered by the consultant or adviser are not in connection
with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market
for the Company’s securities.

 

“Director” means a member
of the Board.

 

“Disability” generally means
total and permanent disability as determined by the Administrator in its discretion in accordance with uniform and non-discriminatory
standards adopted by the Administrator from time to time, but “Disability,” for purposes of an ISO, means total and
permanent disability as defined in Code section 22(e)(3).

 

“Employee” means any person,
including Officers and Directors, who is a common law employee of the Company, a Parent, or a Subsidiary. For Options or SARs granted
to U.S. taxpayers, Employee means any person, including Officers and Directors, who is a common law employee of the Company or
any Related Entity. Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute
“employment” by the Company.

 

“Employer” means the entity
that employs the Employee.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

“Fair Market Value” means,
as of any date, the value of Shares determined as follows:

 

(i)          If
the Shares are listed on any established stock exchange or a national market system, including without limitation any division
or subdivision of the NASDAQ Stock Market, its Fair Market Value will be the closing sales price for such Share (or the closing
bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable; or

 

(ii)         If
the Shares are regularly quoted by a recognized securities dealer but selling prices are not reported, including without limitation
quotation through the Over-The-Counter Bulletin Board quotation service administered by the Financial Industry Regulatory Authority,
the Fair Market Value of a Share will be the mean between the high bid and low asked prices for the Shares on the day of determination,
as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

 

    	 	15	 

     

    

 

(iii)        In
the absence of an established market for the Shares, the Fair Market Value will be determined in good faith by the Administrator,
and to the extent Section 14 applies (a) with respect to ISOs, the Fair Market Value will be determined in a manner consistent
with Code section 422 or (b) with respect to NSOs or SARs, the Fair Market Value will be determined in a manner consistent with
Code section 409A.

 

“Fiscal Year” means the fiscal
year of the Company.

 

“Grant Date” means the date
on which the Administrator grants an Award, or such other later date as is determined by the Administrator, provided that the Administrator
cannot grant an Award prior to the date the material terms of the Award are established. The Administrator may not grant an Award
with a Grant Date that is effective prior to the date the Administrator takes action to approve such Award.

 

“Incentive Share Option”
or “ISO” means an Option intended to qualify as an incentive share option within the meaning of Code section
422 and its regulations.

 

“Nonstatutory Share Option”
or “NSO” means an Option that by is not intended to qualify as an ISO.

 

“Officer” means a person
who is an officer of the Company within the meaning of Section 16 of the Exchange Act and its rules and regulations.

 

“Option” means a share option
granted pursuant to the Plan.

 

“Optionee” means the holder
of an Option granted pursuant to the Plan.

 

“Other Share-Based Awards”
will mean awards of Shares or other rights in accordance with Section 8.

 

“Parent” means a “parent
corporation” as defined in Code section 424(e).

 

“Participant” means the holder
of an Award granted pursuant to the Plan.

 

“Performance Period” means
one or more time periods, which may be of varying and overlapping durations, over which the attainment of the performance goals
or other vesting conditions will be measured for the purpose of determining a Participant’s right to payment.

 

“Period of Restriction” means
the period during which Restricted Share and RSUs are subject to forfeiture or restrictions on transfer pursuant to Section 7.

 

“Plan” means this 2008 Equity
Incentive Plan.

 

“Related Entity” means the
corporation or other entity, other than the Company, to which the Service Provider provides services on the Grant Date, and any
corporation or other entity, other than the Company, in an unbroken chain of corporations or other entities beginning with the
Company in which each corporation or other entity has a controlling interest in another corporation or other entity in the chain,
and ending with the corporation or other entity that has a controlling interest in the corporation or other entity to which the
Service Provider provides services on the Grant Date. For a corporation, a controlling interest means ownership of stock possessing
at least fifty (50%) percent of total combined voting power of all classes of stock, or at least fifty (50%) percent of the total
value of all classes of stock. For a partnership or limited liability company, a controlling interest means ownership of at least
fifty (50%) percent of the profits interest or capital interest of the entity. In determining ownership, the rules of Treasury
Regulation sections 1.414(c)-3 and 1.414(c)-4 apply.

 

    	 	16	 

     

    

 

“Restricted Share” means
Shares awarded to a Participant that are subject to forfeiture and restrictions on transferability in accordance with Section 7.

 

“Restricted Share Unit” or
“RSU” means the right to receive one Share at the end of a specified period of time that is subject to forfeiture
in accordance with Section 7 of the Plan.

 

“Rule 16b-3” means Rule 16b-3
of the Exchange Act or any successor to Rule 16b-3.

 

“Section 16(b)” means Section
16(b) of the Exchange Act.

 

“Service Provider” means
an Employee, Director or Consultant.

 

“Share” means ordinary shares
of a par value of US$0.0001 each in the share capital of the Company, as adjusted in accordance with Section 12.

 

“Share Appreciation Right”
or “SAR” means the right to receive payment from the Company in an amount no greater than the excess of the
Fair Market Value of a Share at the date the SAR is exercised over a specified price fixed by the Administrator in the Award Agreement
that is not less than the Fair Market Value of a Share on the Grant Date.

 

“Subsidiary” means a “subsidiary
corporation” as defined in Code section 424(f).

 

“Ten Percent Owner” means
any Service Provider who is, on the Grant Date of an ISO, the owner of more than 10% of the total combined voting power of all
classes of shares of the Company, any Parent, or any Subsidiary (determined with application of ownership attribution rules of
Code section 424(d)).

 

Adopted by the Board of Directors on May 9,
2008

 

    	 	17

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