Document:

Change of Control Employment Agreement - Jill Stuart

 Exhibit 10.6 
 CHANGE OF CONTROL EMPLOYMENT AGREEMENT 
 AGREEMENT, dated as of September 28, 2007 (this
“Agreement”), by and between Time Warner Telecom Inc., a Delaware corporation (the “Company”), and Jill Stuart (the “Employee”). 
 WHEREAS, the Board of Directors of the Company (the “Board”), has determined that it is in the best interests of the Company and its
stockholders to assure that the Company will have the continued dedication of the Employee, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined in Section 1(b)) The Board believes it is imperative to
diminish the inevitable distraction of the Employee by virtue of the personal uncertainties and risks created by a pending or threatened Change of Control and to encourage the Employee’s full attention and dedication to the Company in the event
of any threatened or pending Change of Control, and to provide the Employee with compensation and benefits arrangements upon a Change of Control that ensure that the compensation and benefits expectations of the Employee will be satisfied and that
provide the Employee with compensation and benefits arrangements that are competitive with those of other corporations. Therefore, in order to accomplish these objectives, the Board has caused the Company to enter into this Agreement. 
 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 
 Section 1. Certain Definitions. (a) “Effective Date” means the first date during the Change of Control Period on which a Change of Control (as defined in Section 1(d)) occurs. Notwithstanding
anything in this Agreement to the contrary, if the Employee’s employment with the Company is terminated during the period commencing on the date of public announcement of a transaction or event involving the Company which, if consummated, would
constitute a Change of Control, and ending on the date on which such Change of Control occurs (provided that such Change of Control occurs within 12 months of the date of such public announcement), and if it is reasonably demonstrated by the
Employee that such termination of employment was at the specific request of a third party that has taken steps reasonably calculated to effect such Change of Control (such a termination of employment, an “Anticipatory Termination”) and if
such Change of Control is consummated, then “Effective Date” means the date immediately prior to the date of such termination of employment. 
 (b) “Change of Control Period” means the period commencing on the date hereof and ending on the eighteen month anniversary of the date hereof; provided, however, that, commencing on the
date eighteen (18) months after the date hereof, and on each annual anniversary of such date (such date and each annual anniversary thereof, the “Renewal Date”), unless previously terminated, the Change of Control Period shall
be automatically extended so as to terminate one year from such Renewal Date, unless, at least sixty (60) days prior to the Renewal Date, the Company shall give notice to the Employee that the Change of Control Period shall not be so extended.

 (c) “Affiliated Company” means any company controlled by, controlling or under common
control with the Company. 
 (d) “Change of Control” means: 
 (1) Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (a “Person”) becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of either (A) the then-outstanding shares of common stock of the
Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that, for purposes of this Section 1(d), the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company,
(ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliated Company or (iv) any acquisition pursuant to a transaction that
complies with Sections 1(d)(3)(A), 1(d)(3)(B) and 1(d)(3)(C); 
 (2) Any time at which individuals who, as of the date hereof, constitute the
Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination
for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding,
for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; 
 (3) Consummation of a reorganization, merger, statutory share exchange or
consolidation or similar transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity by the Company or
any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination: 
 (A) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding voting securities entitled to vote generally in
the election of directors (or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns
the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding
Company Common Stock and the Outstanding Company Voting Securities, as the case may be, 
  

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 (B) no Person (excluding any corporation resulting from such Business Combination or any
employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 25% or more of, respectively, the then-outstanding shares of common stock of the
corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business Combination, and 
 (C) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity
resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or 
 (4) Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 
 Section 2. Employment Period. The Company hereby agrees to continue the Employee in its employ, subject to the terms and conditions
of this Agreement, for the period commencing on the Effective Date and ending on the 18-month anniversary of the Effective Date (the “Employment Period”). The Employment Period shall terminate upon the Employee’s termination of
employment for any reason. 
 Section 3. Terms of Employment. (a) Position and Duties.
(1) During the Employment Period, (A) the Employee’s position (including status, offices, titles and reporting requirements), authority, duties and responsibilities shall be at least commensurate in all material respects with the most
significant of those held, exercised and assigned at any time during the 120-day period immediately preceding the Effective Date and (B) the Employee’s services shall be performed at the office where the Employee was employed immediately
preceding the Effective Date or at any other location less than 35 miles from such office. 
 (2) During the Employment Period, and excluding
any periods of vacation and sick leave to which the Employee is entitled, the Employee agrees to devote reasonable attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge
the responsibilities assigned to the Employee hereunder, to use the Employee’s reasonable best efforts to perform faithfully and efficiently such responsibilities. During the Employment Period, it shall not be a violation of this Agreement for
the Employee to (A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions and (C) manage personal investments, so long as such activities
do not significantly interfere with the performance of the Employee’s responsibilities as an employee of the Company in accordance with this Agreement. It is expressly understood and agreed that, to the extent that any such activities have been
conducted by the Employee prior to the Effective Date, the continued conduct of such activities (or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the
performance of the Employee’s responsibilities to the Company. 
  

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 (b) Compensation. (1) Base Salary. During the Employment Period, the
Employee shall receive an annual base salary (the “Annual Base Salary”) at an annual rate at least equal to 12 times the highest monthly base salary paid or payable, including any base salary that has been earned but deferred, to
the Employee by the Company and the Affiliated Companies in respect of the 12-month period immediately preceding the month in which the Effective Date occurs. The Annual Base Salary shall be paid at such intervals as the Company pays Employee
salaries generally. During the Employment Period, the Annual Base Salary shall be reviewed at least annually, beginning no more than twelve (12) months after the last salary increase awarded to the Employee prior to the Effective Date. Any
increase in the Annual Base Salary shall not serve to limit or reduce any other obligation to the Employee under this Agreement. The Annual Base Salary shall not be reduced after any such increase and the term “Annual Base Salary” shall
refer to the Annual Base Salary as so increased. 
 (2) Annual Bonus. In addition to the Annual Base Salary, the Employee shall
be awarded, for each fiscal year ending during the Employment Period, an annual bonus (the “Annual Bonus”) in cash at least equal to the Employee’s target bonus opportunity under the Company’s Annual Incentive Plan, or any
comparable bonus under any predecessor or successor plan (the “Annual Incentive Plan”) for the fiscal year in which the Effective Date occurs (or if, prior to the Effective Date, the target bonus opportunity for such year has not
been established, the target bonus opportunity for the fiscal year ending immediately prior to the Effective Date), and in each case taking into account any increases in Annual Base Salary to the extent relevant (the “Target
Bonus”). For each fiscal year ending during the Employment Period, (a) any performance goals or other criteria used to determine the actual Annual Bonus earned shall be substantially as favorable to the Employee as the performance
goals or other criteria established with respect to the Employee’s Annual Bonus opportunity for the year in which the Effective Date occurs (or if, prior to the Effective Date, the performance goals or criteria for such year have not been
established, the performance goals or criteria applicable for the fiscal year ending immediately prior to the Effective Date) and (b) to the extent permitted under the Annual Incentive Plans, the exercise of negative discretion under the Annual
Incentive Plan shall be no greater than the exercise of such discretion for the year immediately preceding the year in which the Effective Date occurs. Each such Annual Bonus shall be paid no later than two and a half months after the end of the
fiscal year for which the Annual Bonus is awarded, unless the Employee shall elect to defer the receipt of such Annual Bonus pursuant to an arrangement that meets the requirements of Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”). 
 (3) Incentive, Savings and Retirement Plans. During the Employment Period, the Employee shall
be entitled to participate in all cash incentive, equity incentive, savings and retirement plans, practices, policies, and programs applicable generally to other peer Employees of the Company and the Affiliated Companies, but in no event shall such
plans, practices, policies and programs provide the Employee with incentive opportunities (measured with respect to both regular and special incentive opportunities, to the extent, if any, that such distinction is applicable), savings opportunities
and retirement benefit opportunities, in each case, less favorable, in the aggregate, than the most favorable of those provided by the Company 

  

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and the Affiliated Companies for the Employee under such plans, practices, policies and programs as in effect at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the Employee, those provided generally at any time after the Effective Date to other peer Employees of the Company and the Affiliated Companies. 
 (4) Welfare Benefit Plans. During the Employment Period, the Employee and/or the Employee’s family, as the case may be, shall be
eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and the Affiliated Companies (including, without limitation, medical, prescription, dental,
disability, employee life, group life, accidental death and travel accident insurance plans and programs) to the extent applicable generally to other peer Employees of the Company and the Affiliated Companies, but in no event shall such plans,
practices, policies and programs provide the Employee with benefits that are less favorable, in the aggregate, than the most favorable of such plans, practices, policies and programs in effect for the Employee at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the Employee, those provided generally at any time after the Effective Date to other peer Employees of the Company and the Affiliated Companies. 
 (5) Expenses. During the Employment Period, the Employee shall be entitled to receive prompt reimbursement for all reasonable expenses
incurred by the Employee in accordance with the most favorable policies, practices and procedures of the Company and the Affiliated Companies in effect for the Employee at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Employee, as in effect generally at any time thereafter with respect to other peer Employees of the Company and the Affiliated Companies. 
 (6) Fringe Benefits. During the Employment Period, the Employee shall be entitled to fringe benefits, including, without limitation, tax and financial planning services, payment of club dues, in
accordance with the most favorable plans, practices, programs and policies of the Company and the Affiliated Companies in effect for the Employee at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to
the Employee, as in effect generally at any time thereafter with respect to other peer Employees of the Company and the Affiliated Companies. 
 (7) Office and Support Staff. During the Employment Period, the Employee shall be entitled to an office or offices of a size and with furnishings and other appointments, and to personal secretarial and other assistance, at
least equal to the most favorable of the foregoing provided to the Employee by the Company and the Affiliated Companies at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Employee, as provided
generally at any time thereafter with respect to other peer Employees of the Company and the Affiliated Companies. 
 (8) Vacation.
During the Employment Period, the Employee shall be entitled to paid vacation in accordance with the most favorable plans, policies, programs and practices of the Company and the Affiliated Companies as in effect for the Employee at any time
during the 120-day period immediately preceding the Effective Date or, if more favorable to the Employee, as in effect generally at any time thereafter with respect to other peer Employees of the Company and the Affiliated Companies. 
  

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 Section 4. Termination of Employment. (a) Death or Disability.
The Employee’s employment shall terminate automatically if the Employee dies during the Employment Period. If the Company determines in good faith that the Disability (as defined herein) of the Employee has occurred during the Employment Period
(pursuant to the definition of “Disability”), it may give to the Employee written notice in accordance with Section 12(b) of its intention to terminate the Employee’s employment. In such event, the Employee’s employment with
the Company shall terminate effective on the 30th day after receipt of such notice by the Employee (the “Disability Effective Date”), provided that, within the thirty (30) days after such receipt, the Employee shall not
have returned to full-time performance of the Employee’s duties. “Disability” means the absence of the Employee from the Employee’s duties with the Company on a full-time basis for 180 consecutive business days as a result
of incapacity due to mental or physical illness that is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Employee or the Employee’s legal representative. 
 (b) Cause. The Company may terminate the Employee’s employment during the Employment Period with or without Cause.
“Cause” means: 
 (1) being convicted of, or pleading guilty or nolo contendere to, a charge of
commission of a felony or a misdemeanor involving moral turpitude; 
 (2) engaging in any theft, misappropriation,
embezzlement or financial fraud relating to the Company, or reckless or willful destruction of the Company’s property, in any case that is materially and demonstrably injurious to the Company’s business, financial condition or reputation;

 (3) the willful and continued failure of the Employee to perform substantially the Employee’s duties (as contemplated
by Section 3(a)(1)(A)) with the Company or any Affiliated Company (other than any such failure resulting from incapacity due to physical or mental illness or following the Employee’s delivery of a Notice of Termination for Good Reason),
after a written demand for substantial performance is delivered to the Employee by the Board or the Chief Executive Officer of the Company that specifically identifies the manner in which the Board or the Chief Executive Officer of the Company
believes that the Employee has not substantially performed the Employee’s duties; 
 (4) the willful or reckless engaging
by the Employee in illegal conduct or gross misconduct that is materially and demonstrably injurious to the Company’s business, financial condition or reputation; 
 (5) any willful or reckless material breach of a statutory or common law duty of loyalty to the Company that is materially and
demonstrably injurious to the Company’s business, financial condition or reputation; 
 (6) any material breach of the
Employee’s obligations under this Agreement, including Section 9 and Section 10; or 
  

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 (7) any material and willful breach of the provisions of the Company’s Code of
Conduct covering the following matters (provided that the provision breached is no more restrictive than the comparable provision of the Company’s Code of Conduct as in effect at any time during the 120-day period immediately preceding the
Effective Date): Drug-Free Workplace; Bribery and Fraud; False or Artificial Entries in Books and Records; or Insider Trading (other than failing to observe administrative requirements and blackout periods if no actual insider trading or tipping
occurred), in each case, if such breach is materially and demonstrably injurious to the Company’s business, financial condition or reputation. 
 For
purposes of this Section 4(b), no act, or failure to act, on the part of the Employee shall be considered “willful” unless it is done, or omitted to be done, by the Employee in bad faith or without reasonable belief that the
Employee’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority (A) given pursuant to a resolution duly adopted by the Board, or if the Company is not the ultimate parent corporation
of the Affiliated Companies and is not publicly-traded, the board of directors of the ultimate parent of the Company (the “Applicable Board”), (B) upon the instructions of the Chief Executive Officer of the Company or a senior
officer of the Company or (C) based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Employee in good faith and in the best interests of the Company. With respect to the conduct
described in Sections 4(b)(2) through 4(b)(7), the Company shall provide the Employee with written notice setting forth the details of any claimed breach and the Employee shall have a reasonable period of time (not less than thirty (30) days)
to cure such claimed breach if the breach is curable. The cessation of employment of the Employee shall not be deemed to be for Cause unless and until there shall have been delivered to the Employee a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of the Applicable Board (excluding the Employee, if the Employee is a member of the Applicable Board) at a meeting of the Applicable Board called and held for such purpose
(after reasonable notice is provided to the Employee and the Employee is given an opportunity, together with counsel for the Employee, to be heard before the Applicable Board), finding that, in the good faith opinion of the board, the Employee is
guilty of the conduct described in Section 4(b)(2) through 4(b)(7), and specifying the particulars thereof in detail. 
 (c) Good
Reason. The Employee’s employment may be terminated by the Employee for Good Reason or by the Employee voluntarily without Good Reason. “Good Reason” means: 
 (1) the assignment to the Employee of any duties substantively inconsistent (and excluding the assignment of insubstantial and isolated
additional duties that are not substantively inconsistent) with the Employee’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 3(a), or any other
diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and that is remedied by the Company promptly after receipt of notice thereof
given by the Employee; 
  

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 (2) any failure by the Company to comply with any of the provisions of Section 3(b),
other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and that is remedied by the Company promptly after receipt of notice thereof given by the Employee; 
 (3) the Company’s requiring the Employee (i) to be based at any office or location other than as provided in
Section 3(a)(1)(B), (ii) to be based at a location other than the principal Employee offices of the Company if the Employee was employed at such location immediately preceding the Effective Date, or (iii) to travel on Company business
to a substantially greater extent than required immediately prior to the Effective Date; 
 (4) any purported termination by
the Company of the Employee’s employment otherwise than as expressly permitted by this Agreement; or 
 (5) any failure
by the Company to comply with and satisfy Section 11(c). 
 For purposes of this Section 4(c), the determination of Good Reason shall be made by
the Employee in good faith, and shall be described in reasonable detail in a written notice provided to the Company not later than thirty (30) days after the occurrence of the events deemed to constitute Good Reason. The Employee’s mental
or physical incapacity following the occurrence of an event described above in clauses (1) through (5) shall not affect the Employee’s ability to terminate employment for Good Reason. 
 (d) Notice of Termination. Any termination by the Company for Cause, or by the Employee for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 12(b). “Notice of Termination” means a written notice that (1) indicates the specific termination provision in this Agreement relied upon, (2) to
the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment under the provision so indicated, and (3) if the Date of Termination (as defined
herein) is other than the date of receipt of such notice, specifies the Date of Termination (which Date of Termination shall be not more than thirty (30) days after the giving of such notice). The failure by the Employee or the Company to set
forth in the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of the Employee or the Company, respectively, hereunder or preclude the Employee or the Company,
respectively, from asserting such fact or circumstance in enforcing the Employee’s or the Company’s respective rights hereunder. 
 (e) Date of Termination. “Date of Termination” means (1) if the Employee’s employment is terminated by the Company for Cause, or by the Employee for Good Reason, the date of receipt of the Notice of
Termination or any later date specified in the Notice of Termination, as the case may be, (2) if the Employee’s employment is terminated by the Company other than for Cause, death or Disability, the date on which the Company notifies the
Employee of such termination, (3) if the Employee resigns without Good Reason, the date on which the Employee notifies the Company of such termination, and (4) if the Employee’s employment is terminated by reason of death or
Disability, the date of death of the Employee or the Disability Effective Date, as the case may be. The Company and the Executive shall take all 

  

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steps necessary (including with regard to any post-termination services by the Executive) to ensure that any termination described in this Section 4
constitutes a “separation from service” within the meaning of Section 409A of the Code, and notwithstanding the foregoing, the date on which such separation from service takes place shall be the “Date of Termination”.

 Section 5. Obligations of the Company upon Termination. (a) Good Reason; Other Than for Cause, Death or
Disability. If, during the Employment Period, the Company terminates the Employee’s employment other than for Cause or Disability or the Employee terminates employment for Good Reason: 
 (1) the Company shall pay to the Employee, in a lump sum in cash within thirty (30) days after the Date of Termination, the aggregate
of the following amounts: 
 (A) the sum of (i) the Employee’s Annual Base Salary through the Date of Termination to
the extent not theretofore paid, (ii) any accrued vacation pay to the extent not theretofore paid, (iii) the Employee’s Annual Bonus for the fiscal year immediately preceding the fiscal year in which the Date of Termination occurs
(other than any portion of such Annual Bonus that was previously deferred) to the extent not previously paid as of the Date of Termination, and (iv) the Employee’s business expenses that have not been reimbursed by the Company as of the
Date of Termination that were incurred by the Employee prior to the Date of Termination in accordance with the applicable Company policy (the sum of the amounts described in subclauses (i), (ii), (iii) and (iv), the “Accrued
Obligations”); 
 (B) the product of (i) the Target Bonus and (ii) a fraction, the numerator of which is
the number of days in the current fiscal year through the Date of Termination and the denominator of which is 365 (the “Pro Rata Bonus”); 
 (C) the amount equal to the product of (i) two, and (ii) the sum of (x) the Employee’s Annual Base Salary and (y) the Target Bonus; and 
 (D) an amount equal to eighteen (18) months of premiums based on the premium rate charged by the Company as in effect on the Date of
Termination for the health care continuation coverage mandated by the Consolidated Omnibus Budget Reconciliation Act for the type of coverage for which the Employee is enrolled as of immediately prior to the Date of Termination; 
 (2) the Company shall, at its sole expense as incurred, provide the Employee with (i) outplacement services the scope and provider of
which shall be selected by the Employee in the Employee’s sole discretion, provided that the cost of such outplacement shall not exceed $25,000; and provided, further, that such outplacement benefits shall end not later than the
one year anniversary following the Date of Termination, and (ii) automatic referral or automatic forwarding of incoming Company e-mails to the Employee for one year following the Date of Termination; and 
  

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 (3) to the extent not theretofore paid or provided, the Company shall timely pay or
provide to the Employee any Other Benefits (as defined in Section 6) in accordance with the terms of the underlying plans or agreements. 
 Notwithstanding the foregoing provisions of this Section 5(a)(1) and except as otherwise provided in Section 12(g) with respect to an Anticipatory Termination, in the event that the Employee is a “specified employee”
(within the meaning of Section 409A of the Code and with such classification to be determined in accordance with the methodology established by the applicable employer) (a “Specified Employee”), amounts (other than the Accrued
Obligations) that would otherwise be payable under Section 5(a)(1) during the six-month period immediately following the Date of Termination shall instead be paid, with interest on any delayed payment at the applicable federal rate provided for
in Section 7872(f)(2)(A) of the Code (“Interest”), on the first business day after the date that is six (6) months following the Employee’s “separation from service” within the meaning of Section 409A
of the Code (the “409A Payment Date”). 
 (b) Death. If the Employee’s employment is terminated by reason
of the Employee’s death during the Employment Period, the Company shall provide the Employee’s estate or beneficiaries with (1) the Accrued Obligations, (2) the Pro Rata Bonus, (3) the timely payment or delivery of the Other
Benefits, and (4) an amount equal to the Employee’s Annual Base Salary that would have otherwise been payable if the Employee had remained employed during the period commencing on the Date of Termination and ending on the date thirty
(30) days following the Date of Termination (the “Supplemental Salary Payment”), and the Company shall have no other severance obligations under this Agreement. The Accrued Obligations, the Pro Rata Bonus and the Supplemental
Salary Payment shall be paid to the Employee’s estate or beneficiary, as applicable, in a lump sum in cash within thirty (30) days of the Date of Termination. With respect to the provision of the Other Benefits, the term “Other
Benefits” as utilized in this Section 5(b) shall include, without limitation, and the Employee’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to the most favorable benefits provided by the Company
and the Affiliated Companies to the estates and beneficiaries of peer Employees of the Company and the Affiliated Companies under such plans, programs, practices and policies relating to death benefits, if any, as in effect with respect to other
peer Employees and their beneficiaries at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Employee’s estate and/or the Employee’s beneficiaries, as in effect on the date of the
Employee’s death with respect to other peer Employees of the Company and the Affiliated Companies and their beneficiaries. 
 (c)
Disability. If the Employee’s employment is terminated by reason of the Employee’s Disability during the Employment Period, the Company shall provide the Employee with (1) the Accrued Obligations, (2) a lump sum
cash payment equal to (A) 75% of the amount equal to (i) the sum of the Employee’s Annual Base Salary and Target Bonus, multiplied by (ii) 1.5, less (B) the amount of any disability benefits paid to the Employee under any
disability plan, policy or program covering the Employee (the “Disability Lump Sum”), and (3) the timely payment or delivery of the Other Benefits in accordance with the terms of the underlying plans or agreements, and shall
have no other severance obligations under this Agreement. The Accrued Obligations and the Disability Lump Sum shall be paid to the Employee in a lump sum in cash within thirty (30) days of the Date of Termination, provided, that in the
event that the Employee is a Specified Employee, the Disability Lump Sum shall instead be paid, with Interest, 

  

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to the Employee on the 409A Payment Date. With respect to the provision of the Other Benefits, the term “Other Benefits” as utilized in this
Section 5(c) shall include, and the Employee shall be entitled after the Disability Effective Date to receive, disability and other benefits at least equal to the most favorable of those generally provided by the Company and the Affiliated
Companies to disabled Employees and/or their families in accordance with such plans, programs, practices and policies relating to disability, if any, as in effect generally with respect to other peer Employees and their families at any time during
the 120-day period immediately preceding the Effective Date or, if more favorable to the Employee and/or the Employee’s family, as in effect at any time thereafter generally with respect to other peer Employees of the Company and the Affiliated
Companies and their families. 
 (d) Cause; Other Than for Good Reason. If the Employee’s employment is terminated for
Cause during the Employment Period, the Company shall provide the Employee with the Accrued Obligations and the timely payment or delivery of the Other Benefits, and shall have no other severance obligations under this Agreement. If the Employee
voluntarily terminates employment during the Employment Period, excluding a termination for Good Reason, the Company shall provide the Employee with (1) the Accrued Obligations, (2) the Pro Rata Bonus and (3) the timely payment or
delivery of the Other Benefits, and shall have no other severance obligations under this Agreement. The Accrued Obligations and, if applicable, the Pro Rata Bonus shall be paid to the Employee in a lump sum in cash within thirty (30) days of
the Date of Termination, provided, that in the event the Employee is a Specified Employee, the Pro Rata Bonus shall instead be paid, with Interest, to the Employee on the 409A Payment Date. 
 Section 6. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Employee’s continuing or future
participation in any plan, program, policy or practice provided by the Company or the Affiliated Companies and for which the Employee may qualify, nor, subject to Section 12(f), shall anything herein limit or otherwise affect such rights as the
Employee may have under any other contract or agreement with the Company or the Affiliated Companies. Amounts that are vested benefits or that the Employee is otherwise entitled to receive under any plan, policy, practice or program of or any other
contract or agreement with the Company or the Affiliated Companies (including, for the avoidance of doubt, the Employee’s rights to benefits and payments under any stock options, restricted stock, restricted stock units or other incentive
awards or plans) at or subsequent to the Date of Termination (“Other Benefits”) shall be payable in accordance with such plan, policy, practice or program or contract or agreement, except as explicitly modified by this Agreement.
Without limiting the generality of the foregoing, the Employee’s resignation under this Agreement with or without Good Reason, shall in no way affect the Employee’s ability to terminate employment by reason of the Employee’s
“retirement” under any compensation and benefits plans, programs or arrangements of the Affiliated Companies, including without limitation any retirement or pension plans or arrangements or to be eligible to receive benefits under any
compensation or benefit plans, programs or arrangements of the Affiliated Companies, including without limitation any retirement or pension plan or arrangement of the Affiliated Companies or substitute plans adopted by the Company or its successors,
and any termination which otherwise qualifies as Good Reason shall be treated as such even if it is also a “retirement” for purposes of any such plan. Notwithstanding the foregoing, if the Employee receives payments and benefits pursuant
to Section 5(a) of this Agreement, the Employee shall not be entitled to any severance pay or benefits under any severance plan, program or policy of the Company and the Affiliated Companies, unless otherwise specifically provided therein in a
specific reference to this Agreement. 
  

 11 

 Section 7. Full Settlement. The payments and benefits provided for in this Agreement
upon termination of the Employee’s employment are in full settlement of any and all claims by the Employee known as of the date hereof with respect to the circumstances of such termination of the Employee’s employment. The Company’s
obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense, or other claim, right or action that the Company may have
against the Employee or others. In no event shall the Employee be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Employee under any of the provisions of this Agreement, and such amounts
shall not be reduced whether or not the Employee obtains other employment. The Company agrees to pay as incurred (within ten (10) days following the Company’s receipt of an invoice from the Employee), all legal fees and expenses that the
Employee may reasonably incur as a result of any contest by the Company, the Employee or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result
of any contest by the Employee about the amount of any payment pursuant to this Agreement) (each a “Contest”), plus, in each case, Interest; provided, that, in the case of a Contest initiated by the Employee, the Employee
shall have commenced any legal action (whether or not including litigation) within eighteen (18) months of the Date of Termination; and provided, further, that in the event the resolution of any such Contest includes a finding
denying, in total, the Employee’s claims in such Contest, the Employee shall be required to reimburse the Company, over a period of twelve (12) months from the date of such resolution, for all sums advanced to the Employee pursuant to this
Section 7. In order to comply with Section 409A of the Code, (i) in no event shall the payments by the Company under this Section 7 be made later than the end of the calendar year next following the calendar year in which such
fees and expenses were incurred, provided that the Employee shall have submitted an invoice for such fees and expenses at least ten (10) business days before the end of the calendar year next following the calendar year in which such
fees and expenses were incurred; (ii) the amount of any legal fees and expenses that the Company is obligated to pay in any given calendar year shall not affect the legal fees and expenses that the Company is obligated to pay in any other
calendar year; and (iii) the Employee’s right to have the Company pay such legal fees and expenses may not be liquidated or exchanged for any other benefit. 
 Section 8. Certain Reductions in Payments. 
 (a) Anything in this Agreement to the
contrary notwithstanding, in the event that Ernst & Young LLP or such other nationally recognized accounting firm as shall be selected by the Employee and the Company (as it exists prior to the Effective Date) (the “Accounting
Firm”), shall determine that receipt of all payments, benefits or distributions by the Company or its affiliates in the nature of compensation to or for the Employee’s benefit, whether paid or payable pursuant to this Agreement or
otherwise (a “Payment”) would (after taking into account any value attributable to the non-competition covenant in Section 10(a)), subject the Employee to the excise tax under Section 4999 of the Code, the Accounting Firm
shall determine whether to reduce any of the Payments paid or payable pursuant to this Agreement that are taxable in the year in which the change in ownership or control occurs (the “Agreement Payments”) to the 

  

 12 

 
Reduced Amount (as defined below). The Agreement Payments shall be reduced to the Reduced Amount only if the Accounting Firm determines that the Employee
would have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the Employee’s Agreement Payments were reduced to the Reduced Amount. If such a determination is not made by the Accounting Firm, the Employee shall receive
all Agreement Payments to which the Employee is entitled under this Agreement. Notwithstanding anything to the contrary, in no event shall the value (if any) attributable to the non-competition covenant in Section 10(a) be taken into account
for purposes of the Accounting Firm’s determination, if it would reduce the Agreement Payments to be paid to the Employee, it being understood that any such valuation is intended solely to reduce the amounts that are considered “parachute
payments” and therefore any excise tax under Section 4999 of the Code. Any valuation of the non-competition covenant in Section 10(a) shall be determined by the Accounting Firm (or, if the Accounting Firm is not able to make such
determination, an independent third-party valuation specialist, selected by the Employee), and the Company shall cooperate in good faith in connection with any such valuation process. 
 (b) If the Accounting Firm determines that aggregate Agreement Payments should be reduced to the Reduced Amount, the Company shall promptly give the
Employee notice to that effect and a copy of the detailed calculation thereof. All determinations made by the Accounting Firm (or, with respect to the valuation of the non-competition covenant in Section 10(a), to the extent applicable, the
independent third-party valuation specialist) under this Section 8 shall be binding upon the Company and the Employee and shall be made within sixty (60) days of a termination of the Employee’s employment. For purposes of reducing the
Agreement Payments to the Reduced Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced. The reduction of the Agreement Payments to the Reduced Amount, if applicable, shall be made by reducing the Agreement
Payments under the following sections in the following order: (i) Section 5(a)(1)(C), (ii) Section 5(a)(1)(B), and (iii) Section 5(a)(1)(D). As promptly as practicable following the Accounting Firm’s determination,
the Company shall pay to or distribute for the Employee’s benefit such Agreement Payments as are then due to the Employee under this Agreement and shall promptly pay to or distribute for the Employee’s benefit in the future such Agreement
Payments as become due to the Employee under this Agreement. All fees and expenses of the Accounting Firm and the independent third-party valuation specialist (if any) shall be borne solely by the Company. 
 (c) As a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time of the initial determination by the Accounting
Firm hereunder, it is possible that amounts will have been paid or distributed by the Company to or for the benefit of the Employee pursuant to this Agreement which should not have been so paid or distributed (“Overpayment”) or that
additional amounts which will have not been paid or distributed by the Company to or for the benefit of the Employee pursuant to this Agreement could have been so paid or distributed (“Underpayment”), in each case, consistent with
the calculation of the Reduced Amount hereunder. In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or the Employee which the Accounting Firm believes has a high
probability of success determines that an Overpayment has been made, the Employee shall pay any such Overpayment to the Company together with Interest; provided, however, that no amount shall be payable by the Employee to the Company if and
to the extent such payment would not either reduce the amount on which the Employee is subject to tax under Sections 1 and 4999 of the Code or generate a refund of such taxes. In the 

  

 13 

 
event that the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such
Underpayment shall be promptly paid by the Company to or for the benefit of the Employee together with Interest. 
 (d) For purposes hereof,
the following terms have the meanings set forth below: 
 (1) “Reduced Amount” shall mean the greatest amount
of Agreement Payments that can be paid that would not result in the imposition of the excise tax under Section 4999 of the Code if the Accounting Firm determines to reduce Agreement Payments pursuant to Section 8(a). 
 (2) “Net After-Tax Receipt” shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and
280G(d)(4) of the Code) of a Payment net of all taxes imposed on the Employee with respect thereto under Sections 1 and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1
of the Code and under state and local laws which applied to the Employee’s taxable income for the immediately preceding taxable year, or such other rate(s) as the Employee certifies, in the Employee’s sole discretion, as likely to apply to
him or her in the relevant tax year(s). 
 Section 9. Confidential Information. The Employee shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or the Affiliated Companies, and their respective businesses, which information, knowledge or data shall have been obtained by
the Employee during the Employee’s employment by the Company or the Affiliated Companies and which information, knowledge or data shall not be or become public knowledge (other than by acts by the Employee or representatives of the Employee in
violation of this Agreement). After termination of the Employee’s employment with the Company, the Employee shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the Company and those persons designated by the Company. In no event shall an asserted violation of the provisions of this Section 9 constitute a basis for deferring or
withholding any amounts otherwise payable to the Employee under this Agreement. 
 Section 10. Restrictive Covenants.
(a) Non-competition. In consideration for the payments and benefits under this Agreement, during the period commencing on the Effective Date ending on the six-month anniversary of the Date of Termination, the Employee shall not
directly or indirectly through another be or become an officer, director, partner or employee of or consultant to or act in any managerial capacity with or own any equity interest in any Competitive Business Entity (as defined below); provided,
however, that ownership of less than one percent (1%) of the outstanding equity securities of any entity listed on any national securities exchange or traded on the National Association of Securities Dealers Automated Quotation System shall not
be prohibited hereby. A “Competitive Business Entity” is any Incumbent Local Exchange Carrier (as defined in the Telecommunications Act of 1996), emerging telecommunications provider or cable television or communication company that
competes with the Company in the provision of voice, data, Internet or other services to 

  

 14 

 
customers in any state of the United States in which, as of the Date of Termination, the Company or its controlled affiliates engages or has publicly
announced definitive plans to engage, in the ownership, operation or management of such a business. 
 (b) Non-solicitation. In
consideration for the payments and benefits under this Agreement, during the period commencing on the Effective Date and ending on the first anniversary of the Date of Termination, the Employee shall not directly or indirectly, (1) induce or
attempt to induce any employee of the Company to leave the employ of the Company or in any way interfere with the relationship between the Company, on the one hand, and any employee thereof, on the other hand, (2) hire any person who was an
employee of the Company until six (6) months after such individual’s employment relationship with the Company has been terminated or (3) induce or attempt to induce any customer, supplier, licensee or other business relation of the
Company to cease doing business with the Company, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation, on the one hand, and the Company, on the other hand; provided, that,
solicitations incidental to general advertising or other general solicitations in the ordinary course not specifically targeted at such persons and employment of any person not otherwise solicited in violation hereof shall not be considered a
violation of this Section 10(b). 
 (c) Acknowledgement; Reasonableness. The Employee understands that the foregoing
restrictions may limit his or her ability to earn a livelihood in a business similar to the business of the Company, but the Employee nevertheless believes that he or she has received and will receive sufficient consideration and other benefits as
an employee of the Company and as otherwise provided hereunder to clearly justify such restrictions which, in any event (given his or her education, skills and ability), the Employee does not believe would prevent him or her from otherwise earning a
living. The Employee has carefully considered the nature and extent of the restrictions place upon him or her by this Section 10, and hereby acknowledges and agrees that the same are reasonable in time and territory and do not confer a benefit
upon the Company disproportionate to the detriment of the Employee. Following the Effective Date, the covenants set forth in this Section 10 shall be the exclusive contractual covenants applicable to the Employee with respect to the subject
matter therein and shall supersede and replace any and all similar covenants contained in any other agreement between the Company and the Employee or plan in which the Employee participates. 
 (d) Enforcement. Because the Employee’s services are unique and because the Employee has access to confidential information, the
parties hereto agree that money damages would be an inadequate remedy for any breach of this Section 10. Therefore, in the event of a breach or threatened breach of this Section 10, the Company or its respective successors or assigns may,
in addition to other rights and remedies existing in their favor at law or in equity, apply to any court of competent jurisdiction for specific performance and/or injunction relief in order to enforce, or prevent any violations of, the provision
hereof (without posting a bond or other security) or require the Employee to account for and pay over to the Company all compensation, profits, moneys, accruals or other benefits derived from or received as a result of any transactions constituting
a breach of the covenants contained herein, if and when final judgment of a court of competent jurisdiction is so entered against the Employee. 
  

 15 

 (e) Interpretation. For purposes of this Section 10, references to “the
Company” shall mean the Company as hereinbefore defined and any of its controlled affiliates. 
 Section 11.
Successors. (a) This Agreement is personal to the Employee, and, without the prior written consent of the Company, shall not be assignable by the Employee other than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Employee’s legal representatives. 
 (b) This Agreement shall inure to the
benefit of and be binding upon the Company and its successors and assigns. Except as provided in Section 11(c), without the prior written consent of the Employee this Agreement shall not be assignable by the Company. 
 (c) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.
“Company” means the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid that assumes and agrees to perform this Agreement by operation of law or otherwise. 
 Section 12. Miscellaneous. (a) This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified other than by a written agreement
executed by the parties hereto or their respective successors and legal representatives. 
 (b) All notices and other communications
hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
 if to the Employee: 
 At the
most recent address on file at the Company. 
 if to the Company: 
 Time Warner Telecom Inc. 
 10475 Park Meadows Drive 
 Littleton, Colorado 80124 
 Attention: General Counsel 
 or to such other
address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 
  

 16 

 (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the validity
or enforceability of any other provision of this Agreement. 
 (d) The Company may withhold from any amounts payable under this Agreement
such United States federal, state or local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
 (e) The Employee’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Employee or the Company may have hereunder, including, without limitation,
the right of the Employee to terminate employment for Good Reason pursuant to Sections 4(c)(1) through 4(c)(5), shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 
 (f) The Employee and the Company acknowledge that, except as may otherwise be provided under any other written agreement between the Employee and the
Company, the employment of the Employee by the Company is “at will” and, subject to Section 1(a), prior to the Effective Date, the Employee’s employment may be terminated by either the Employee or the Company, in which case the
Employee shall have no further rights under this Agreement. From and after the Effective Date, except as specifically provided herein, this Agreement shall supersede any other agreement between the parties with respect to the subject matter hereof,
including, without limitation, the Employment Agreement, dated of even date herewith, between the Company and the Employee. 
 (g)
Notwithstanding any provision in this Agreement to the contrary, in the event of an Anticipatory Termination, any payments that are deferred compensation within the meaning of Section 409A of the Code that the Company shall be required to pay
pursuant to Section 5(a)(1) of this Agreement shall be paid as follows: (i) if such Change of Control is a “change in control event” within the meaning of Section 409A of the Code, (A) except as provided in clause
(i)(B), on the date of such Change of Control, or (B) if the Executive is a Specified Employee and the 409A Payment Date is later than the Change of Control, on the 409A Payment Date, and (ii) if such Change of Control is not a
“change in control event” within the meaning of Section 409A of the Code, (A) except as provided in clause (ii)(B), on the first business day following the 18-month anniversary of the date of such Anticipatory Termination (the
“Payment Date”), or (B) if the Executive is a Specified Employee and the 409A Payment Date is later than the Payment Date, on the 409A Payment Date. Interest with respect to the period, if any, from the date of the Change of Control
until the actual date of payment shall be paid on any delayed cash amounts. 
 (h) Within the time period permitted by the applicable
Treasury Regulations, the Company may, in consultation with the Employee, modify the Agreement, in the least restrictive manner necessary and without any diminution in the value of the payments to the Employee, in order to cause the provisions of
the Agreement to comply with the requirements of Section 409A of the Code, so as to avoid the imposition of taxes and penalties on the Employee pursuant to Section 409A of the Code. 
  

 17 

 IN WITNESS WHEREOF, the Employee has hereunto set the Employee’s hand and, pursuant to the
authorization from the Board, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year first above written. 
  

			
	JILL STUART
	
	/s/ Jill Stuart
	
	TIME WARNER TELECOM INC.
		
	By:	 	/s/ Larissa Herda
		 	Larissa Herda
		 	Chairman, CEO and President

  

 18Manufacturing Services Agreement

 EXHIBIT 10.3 
 *(NOTE: CERTAIN PORTIONS OF THIS DOCUMENT HAVE BEEN MARKED TO INDICATE THAT CONFIDENTIAL INFORMATION HAS BEEN OMITTED, CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR THIS CONFIDENTIAL INFORMATION. THE CONFIDENTIAL PORTIONS HAVE BEEN
PROVIDED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION) 

 Execution Version 
 MANUFACTURING SERVICES AGREEMENT 
 This MANUFACTURING SERVICES AGREEMENT
(“Agreement”) is made this 11th day of September, 2007, by and between Catalent Pharma Solutions, LLC, having a place of business at 2200 Lake Shore Drive, Woodstock, Illinois 60098, USA (“Catalent”) and Inspire Pharmaceuticals,
Inc. (“Inspire”), having its principal place of business at 4222 Emperor Boulevard, Suite 200, Durham, North Carolina 27703, USA. 
  

	 	A.	Catalent provides contract pharmaceutical development, manufacturing, packaging, analytical, and sales and marketing services to the pharmaceutical industry.

  

	 	B.	Inspire has certain technology relating to the certain pharmaceutical product and wants Catalent to assist in the manufacture, filling, packaging and testing of such products as
provided in this Agreement and the attachments hereto. 

  

	 	C.	Inspire desires to engage Catalent to provide certain services to Inspire in connection with the processing of Inspire’s Product (defined below); and Catalent desires to
provide such services pursuant to the terms and conditions set forth in this Agreement. 

 NOW, THEREFORE, in consideration of
the mutual covenants, terms and conditions set forth below, the parties agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 The following terms have
the following meanings in this Agreement: 
  

	1.1	“Affiliate(s)” means any corporation, firm, partnership or other entity which controls, is controlled by or is under common control with a party. For purposes of this
definition, “control” shall mean the ownership of at least fifty percent (50%) of the voting share capital of such entity or any other comparable equity or ownership interest; provided, that Affiliates of Catalent shall not include
any entity that controls PTS Holdings Corp. or any entity controlled by or under common control with any such controlling entity (other than PTS Holdings Corp. and entities controlled by it). 

  

	1.2	“API” means the active pharmaceutical ingredient for the Product, which has been released by Inspire and provided to Catalent, along with a certificate of analysis, as
provided in this Agreement. 

  

	1.3	 “Applicable Laws” means all laws, ordinances, rules and regulations within the Territory applicable to the Processing of the Product or any aspect thereof
and the obligations of Catalent or Inspire, as the context requires under this Agreement, including, without limitation, (i) all applicable federal, state and local laws and regulations of each Territory; 

  

 - 1 - 

	 	 
(ii) the U.S. Federal Food, Drug and Cosmetic Act, and (iii) the Good Manufacturing Practices promulgated by the Regulatory Authorities, as amended from
time to time (“GMPs”). 

  

	1.4	“Batch” means a specific quantity of a Product comprising a number of units of Product mutually agreed upon between the parties, and that (a) is intended to have
uniform character and quality within specified limits, and (b) is Processed according to a single manufacturing order during the same cycle of Processing. 

  

	1.5	“Calendar Quarter” means a period of three (3) consecutive months commencing on January 1, April 1, July 1 or October 1 of any calendar
year. 

  

	1.6	“Confidential Information” shall have the meaning set forth in Section 11.2. 

  

	1.7	“Contract Year” means each consecutive twelve (12) month period beginning on the Effective Date and each anniversary thereof. 

  

	1.8	“Defective Product” shall have the meaning set forth in Section 5.2. 

  

	1.9	“Dispute” shall have the meaning set forth in Section 18.9. 

  

	1.10	“Dosage Container” means any final dosage form container(s) the parties may agree upon in writing from time to time. 

  

	1.11	“Effective Date” means the date this Agreement was fully executed. 

  

	1.12	“Facilities” means Catalent’s facilities located in Woodstock, Illinois or such other facility as agreed in writing by the parties. 

  

	1.13	“FDA” means the United States Food and Drug Administration. 

  

	1.14	“Firm Commitment” shall have the meaning set forth in Section 4.2. 

  

	1.15	“Inspire Materials” shall have the meaning set forth in Section 3.1. 

  

	1.16	“Intellectual Property” means all intellectual property (whether or not patented), including without limitation, patents, patent applications, know-how, trade secrets,
copyrights, trademarks, designs, concepts, technical information, manuals, standard operating procedures, instructions or specifications. 

  

	1.17	“Minimum Requirement” shall have the meaning set forth in Section 4.1. 

  

	1.18	 “Process”, “Processed”, or “Processing” means the sterile compounding, filling, producing and/or packaging of the API, other Inspire
Materials and Raw Materials into Product, and any testing, labeling, storage, release, shipment and/or disposal of any of the foregoing, in each case in accordance with the Specifications and the terms and 

  

 - 2 - 

	 	 
conditions set forth in this Agreement. 

  

	1.19	“Processing Date” means the day on which the Product is to be first Processed by Catalent. 

  

	1.20	“Producer Price Index” means the index known as the United States Bureau of Labor Statistics, Producer Price Index, Pharmaceutical Preparation Manufacturing (Series ID:
PCU325412325412), not seasonally adjusted, as it appears in the periodical PPI Detailed Report as published for the region in which the Facility is located, or a comparable successor index. 

  

	1.21	“Product” means the fully compounded bulk drug solution Processed into Dosage Containers and packaged in accordance with the Specifications. 

  

	1.22	“Purchase Order” shall have the meaning set forth in Section 4.3. 

  

	1.23	“Raw Materials” means all raw materials, supplies, components and packaging necessary to manufacture and ship the Product in accordance with the Specifications, as
provided in Exhibit A, but not including the API or other Inspire Materials. 

  

	1.24	“Regulatory Authority” means any governmental regulatory authority within a Territory involved in regulating any aspect of the development, manufacture, market approval,
sale, distribution, packaging or use of the Product. 

  

	1.25	“Rolling Forecast” shall have the meaning set forth in Section 4.2. 

  

	1.26	“Specifications” means the procedures, requirements, standards, quality control testing and other data and the scope of services set forth in (i) the master batch
record and/or master packaging batch record applicable to the Product, as amended in accordance with the terms of Article 8 of this Agreement, (ii) Exhibit A and (iii) any additional specifications. 

  

	1.27	“Term” shall have the meaning set forth in Section 15.1. 

  

	1.28	“Territory” means the United States of America and Canada (upon approval by the Canadian Regulatory Authority). 

  

	1.29	“Unit Pricing” shall have the meaning set forth in Section 7.1. 

 ARTICLE 2 
 VALIDATION, PROCESSING & RELATED SERVICES 
 2.1 Supply and Purchase of Product. During the Term, Catalent shall Process the Inspire Materials and the Products at the Facility in accordance with the
Specifications, the Applicable Laws and the terms and conditions of this Agreement and the Quality Agreement. Inspire shall purchase the Product from Catalent in accordance with the terms and conditions of this 

  

 - 3 - 

 
Agreement. 
 2.2 Other Related Services. Catalent
shall provide other services upon terms and conditions agreed to by the parties in writing from time to time. 
 ARTICLE 3

 MATERIALS 
 3.1 API. Inspire
shall supply or cause to be supplied to Catalent for Processing, at Inspire’s sole cost, the API and applicable reference standards in quantities sufficient to meet Inspire’s requirements for the Product as further set forth in Article 4.
Prior to delivery of any of the API or reference standard to Catalent for Processing, Inspire shall provide to Catalent a copy of the API Material Safety Data Sheet (“MSDS”), if any, as amended, and any subsequent revisions thereto.
Inspire shall supply the API, reference standards, and certificate of analysis [CONFIDENTIAL] (INCOTERMS 2000) the Facility no later than sixty (60) days before the scheduled Processing Date upon which such API will be used by Catalent.
Upon receipt of the API, Catalent shall conduct identification testing of the API. Catalent shall use the API and any other materials (if any) supplied by Inspire to Catalent, including derivatives thereof (such API, other materials and derivatives,
collectively “Inspire Materials”), solely and exclusively for Processing under this Agreement. All Inspire Materials are and shall at all times remain the sole property of Inspire, whether such Inspire Materials remain unused or are
contained in any work-in-progress or finished product, and may not be provided to any third parties. In the event that Catalent’s negligence, willful misconduct, or breach of any representation, warranty or obligation in this Agreement results
in loss, destruction or damage to Inspire Materials such that they cannot be used in connection with Processing under this Agreement, subject to Section 16.1 hereof, Catalent shall reimburse Inspire for Inspire’s cost of replacement
Inspire Materials to replace such lost, destroyed or damaged Inspire Materials. Inspire Materials shall be returned to Inspire upon the earlier of (a) Inspire’s request or (b) the termination or expiration of the term of this
Agreement. In the alternative, if Inspire requests that Inspire Materials be destroyed, Catalent shall destroy such Inspire Materials at Inspire’s expense and certify in writing that such Inspire Materials have been destroyed in accordance with
all Applicable Laws. Catalent shall provide to Inspire monthly reports of all API in its possession. 
 3.2 Raw Materials. Catalent shall be
responsible for procuring, inspecting, testing and releasing adequate Raw Materials as necessary to meet the Firm Commitment, unless otherwise agreed to by the parties in writing. If Inspire requires a specific supplier for any Raw Material, Inspire
shall be responsible for the timeliness, quantity and quality of supply of such Raw Materials. Inspire will be responsible for all costs associated with qualification of a new supplier of a Raw Material not previously qualified by Catalent. Unless a
particular Raw Material can be replaced with the same raw material from another supplier, Catalent shall not be liable for any delay in delivery of Product if (i) Catalent is unable to obtain, in a timely manner, a particular Raw Material
necessary to Process the Product, and (ii) Catalent placed orders for such Raw Materials promptly following receipt of Inspire’s Firm Commitment. 
 3.3 Artwork and Packaging. Inspire shall provide or approve, prior to the procurement of applicable components, all artwork, advertising and packaging information necessary to Process 

  

 - 4 - 

 
the Product. Such artwork, advertising and packaging information is and shall remain the exclusive property of Inspire, and Inspire shall be solely
responsible for the content thereof. Such artwork, advertising and packaging information or any reproduction thereof may not be used by Catalent following the termination of this Agreement, or during the Term of this Agreement in any manner other
than solely for the purpose of performing its obligations hereunder. 
 3.4 Reimbursement for Materials. In the event of (i) a Specification
change for any reason, (ii) termination by Catalent pursuant to Section 15.2(a) or expiration of this Agreement; or (iii) obsolescence of any Raw Material in Catalent’s inventory, Inspire shall bear the cost of any unused Raw
Materials resulting therefrom, provided that Catalent purchased such Raw Materials in quantities consistent with the first three (3) months of Inspire’s Rolling Forecast and any minimum purchase obligations required by the Raw Material
supplier, and provided further that Catalent shall use reasonable commercial efforts to mitigate such costs by using any such unused Raw Materials in the manufacture of other products. Upon Inspire’s request, Catalent will provide Inspire with
documentary proof of its mitigation efforts under this section. 
 ARTICLE 4 
 MINIMUM COMMITMENT, PURCHASE ORDERS & FORECASTS 
 4.1 Minimum
Requirement. During each Contract Year, Inspire shall purchase the minimum number of units of Product (“Minimum Requirement”) set forth on Exhibit B. The Purchase Order (defined below) placed pursuant to Section 4.3 for the
last full or partial Calendar Quarter, as may be the case, of each Contract Year shall be in an amount equal to the difference between (i) the Minimum Requirement and (ii) the aggregate volume of all units purchased during such Contract
Year. Such Purchase Order may have a delivery date any time prior the end of the first full Calendar Quarter of the subsequent Contract Year; provided, however, that in no event will units of Product ordered pursuant to such Purchase Order and
delivered during the subsequent Contract Year be included when determining Inspire’s compliance with such subsequent Contract Year’s Minimum Requirement. Notwithstanding the foregoing, Inspire’s obligation to purchase any Minimum
Requirement under this Section 4.1 shall be reduced for any Contract Year by the number of units of Product within the [CONFIDENTIAL] therefor (other than delays due to investigations required under the Quality Agreement for deviations
or out of specification determinations or delays caused by Inspire’s failure to comply with its obligations under this Agreement) during the applicable Contract Year.  
 4.2 Forecast. On or before the first (1st) day of each calendar month, Inspire shall furnish to Catalent a written twelve (12) month rolling forecast of the quantities of Product that Inspire intends to order from Catalent during such period
(“Rolling Forecast”). The first three (3) months of such Rolling Forecast shall constitute a binding order for the quantities of Product specified therein (“Firm Commitment”) and the following nine (9) months of the
Rolling Forecast shall be non-binding, good faith estimates. Upon receipt of a Rolling Forecast, Catalent shall promptly inform Inspire of potential capacity limitations it anticipates with respect to the non-binding portion of the Rolling Forecast
and the parties shall thereafter cooperate to either modify the non-binding portion of such forecast or to otherwise accommodate the potential 

  

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capacity limitation. 
 4.3 Purchase Orders. On or before the first (1st) day of each Calendar Quarter, Inspire shall submit a
binding, non-cancelable purchase order for the Firm Commitment portion of the Processing (i.e., Processing during the three (3) months immediately following such submission), which specifies the actual number of Batches to be Processed, the
approximate number of Dosage Containers in each Batch, and the requested delivery dates for each Batch (“Purchase Order”). Upon Catalent’s receipt of any Purchase Order, the aggregate Product volumes set forth therein that are
consistent with the quantities of Product that were forecasted to be ordered in the period covered thereby in the Rolling Forecast furnished in the month immediately preceding submission of such Purchase Order, and any additional amounts as may be
required to satisfy Inspire’s Minimum Requirement for a Purchase Order submitted for the last full or partial Calendar Quarter of any Contract Year, shall be binding upon Catalent. Requested delivery dates in Purchase Orders shall be no earlier
than [CONFIDENTIAL] following submission of the order. Catalent shall notify Inspire of receipt of the Purchase Order within five (5) business days of receipt, and within five (5) business days thereafter Inspire and Catalent shall
meet (via telephone or in person) to discuss the Purchase Order and agree upon the delivery dates and destinations for delivery of the Product by the carrier. Catalent shall not unreasonably withhold agreement to any delivery dates or destinations
for delivery of the Product requested by Inspire. In the event of a conflict between the terms of any Purchase Order and this Agreement, this Agreement shall control. Notwithstanding the foregoing, Catalent will accommodate, without cost to Inspire,
increases in Purchase Orders of up to [CONFIDENTIAL] over the quantities of Product that were forecasted to be ordered for the period covered thereby in the Rolling Forecast furnished in the month immediately preceding submission of such
Purchase Order, and Catalent shall use commercially reasonable efforts to supply Inspire with quantities of Product which are in excess of such forecasted quantities, subject in the case of amounts in excess of such [CONFIDENTIAL] increase to
Catalent’s other supply commitments and manufacturing and equipment capacity. During the first Contract Year, Inspire may increase orders [CONFIDENTIAL] above forecast not to exceed [CONFIDENTIAL] units, provided Purchase Orders
for all such Product are delivered at least [CONFIDENTIAL] in advance of the earliest requested delivery date as specified in this Section. 
 4.4 Catalent’s Cancellation of Purchase Orders. In the event Inspire refuses or fails to make scheduled deliveries of the API in accordance with Section 3.1, Catalent reserves the right to cancel all, or any part of, a
Purchase Order for which such undelivered API would be required upon written notice to Inspire, and Catalent shall have no further obligations or liability with respect to such Purchase Order to the extent of such cancellation. 
 4.5 Unplanned Delay or Elimination of Processing. Catalent shall deliver Product as provided in Purchase Orders and on the delivery dates agreed therein, subject
to the terms and conditions of this Agreement. Catalent shall provide Inspire with as much advance notice as possible (and will use its best efforts to provide at least thirty (30) days advance notice where possible) if Catalent determines that
any Processing will be delayed or eliminated for any reason. 
 4.6 Pre-Execution Purchase Orders. The parties acknowledge that, as of the Effective
Date, [CONFIDENTIAL] has placed one or more purchase orders with Catalent for the 

  

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manufacture and supply to Inspire of finished product containing the API. All finished product so ordered shall be deemed “Product” for all
purposes under this Agreement and such purchase orders shall be treated as having been delivered hereunder. In the event of a conflict between the terms of any such purchase order and this Agreement, this Agreement shall control. 
 4.7 Meetings. The parties shall meet from time to time as appropriate during the Term in order to discuss the forecasts delivered by Inspire pursuant to this
Agreement, as well as other matters relevant to the supply of Products, including any potential strategies for improving the productivity, efficiency, and quality of the process by which the Product is manufactured and supplied hereunder.

 ARTICLE 5 
 TESTING;
SAMPLES; RELEASE 
 5.1 Sample; Testing; Acceptance. Inspire shall notify Catalent within [CONFIDENTIAL] following delivery of Product to
Inspire if Inspire has determined that such Product does not meet the warranty set forth in Section 10.1 and shall provide Catalent a sample of such non-conforming Product. Catalent will provide written notice of whether Catalent agrees or
disagrees that the Batch is non-conforming within [CONFIDENTIAL] of its receipt of Inspire’s notice. If Catalent agrees that the Batch is non-conforming or if the Batch is determined to be non-conforming by an independent third party
laboratory as set forth below in this Section 5.1, Catalent shall, at Inspire’s option, re-perform the services in accordance with this Agreement and provide replacement Product to Inspire within [CONFIDENTIAL] of receipt of
Inspire’s notice of non-conformity (or, if applicable, the receipt of the third party laboratory’s determination as anticipated below), or credit any payments made by Inspire for such Product. In addition, Catalent shall reimburse Inspire
for Inspire Materials used in such non-conforming Product (subject to the limitation of liability in Section 16.1). If Catalent does not agree with Inspire’s determination that such Product is non-conforming, then after reasonable efforts
to resolve the disagreement, either party may submit a sample of such Product to a mutually agreed upon independent third party laboratory to determine whether the Product is non-conforming. The independent party’s results shall be final and
binding. Unless otherwise agreed to by the parties in writing, the costs associated with such testing and review shall be borne by the non-prevailing party. 
 5.2 Replacement of Defective Product. In accordance with the terms set forth in this Agreement, Catalent shall, at Inspire’s option under Section 5.1, replace, at Catalent’s sole expense, all Product that does not
comply with the warranty set forth in Section 10.1 (“Defective Product”). THE OBLIGATION OF CATALENT PURSUANT TO SECTION 5.1 TO (I) REPLACE DEFECTIVE PRODUCT OR CREDIT INSPIRE FOR SUCH DEFECTIVE PRODUCT AND (II) REIMBURSE INSPIRE
FOR API AND OTHER INSPIRE MATERIALS USED IN SUCH DEFECTIVE PRODUCT (SUBJECT TO THE LIMITATION OF LIABILITY FOR API AND OTHER INSPIRE MATERIALS IN SECTION 16.1) SHALL, SUBJECT TO INSPIRE’S RIGHTS IN SECTION 15.2(A), BE INSPIRE’S SOLE AND
EXCLUSIVE REMEDY UNDER THIS AGREEMENT FOR RECEIPT OF DEFECTIVE PRODUCT AND IS IN LIEU OF ANY OTHER WARRANTY, EXPRESS OR IMPLIED. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, THE 

  

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FOREGOING LIMITATION WILL NOT APPLY TO ANY LIABILITY OF CATALENT UNDER SECTION 9.7 OR SECTION 13.1 OF THIS AGREEMENT. 
 5.3 Supply of Material for Replacement Product. In the event Catalent is required to replace Product pursuant to Sections 5.1 or 5.2, above, Inspire shall,
subject to Section 5.1, supply Catalent with sufficient quantities of the API in accordance with Section 3.1 as necessary for Catalent to complete such replacement. 
 ARTICLE 6 
 DELIVERY 
 6.1 Delivery. Catalent shall segregate and store all Product until acceptance as set forth in Section 5.1 above. Catalent shall tender the Product for
delivery, [CONFIDENTIAL] (INCOTERMS 2000) the Facility, to carriers designated by Inspire pursuant to this Section 6.1. Catalent shall have responsibility for and bear the risk of loss of any Product until delivery to Inspire at the
Facility. Inspire shall be responsible for all costs and risk of loss associated with shipment of the Product. Inspire shall designate at least three (3) carriers to ship the Product and then designate the priority of such qualified carriers to
Catalent. Catalent shall ensure that the Products are delivered pursuant to this Section 6.1 [CONFIDENTIAL]. Catalent shall retain at Inspire’s cost and expense (including payment of the applicable purchase price for such retained
Product) such quantities of Product from each Batch of Product delivered sufficient to conduct two full testings of Product in accordance with the Specifications and the Quality Agreement. Catalent shall include the applicable Purchase Order number
and quantity of Product with each shipment of Product, as well as the applicable Batch records required under Section 9.1. 
 6.2 Failure to Take
Delivery. If Inspire fails to take delivery on any scheduled delivery date of an order of Product delivered in accordance with the applicable Purchase Order, Catalent promptly shall notify Inspire in writing of such failure, and Inspire shall be
invoiced on the first day of each month for the reasonable and documented storage costs incurred by Catalent in connection with such stored Product after the fourteenth day following such notice from Catalent. For each such Batch of Product not
picked up for delivery by Inspire’s appointed carrier on the agreed delivery date, Inspire agrees that: (i) Inspire has made a fixed commitment to purchase such Product; provided, however, that the foregoing shall not affect the other
terms and conditions of this Agreement, including without limitation Inspire’s rights pursuant to Section 5.1, (ii) risk of ownership for such Product passes to Inspire, (iii) such Product shall be warehoused by Catalent,
(iv) if no delivery date is determined at the time of billing, Catalent shall have the right to ship the Product to Inspire within four (4) months after billing, and (v) Inspire will bear the risk of loss for any decrease in market
value of such Product that relates to factors and circumstances outside of Catalent’s control. Within five (5) days following a written request from Catalent, Inspire shall provide Catalent with a letter confirming items (i) through
(v) of this Section for each Batch of undelivered Product. [CONFIDENTIAL]. 
  

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 ARTICLE 7 
 PRICING AND PAYMENT 
 7.1 Unit Pricing. Inspire shall pay to Catalent the unit pricing set forth on Exhibit
B (“Unit Pricing”) for all Product. In the event Inspire requests services other than Processing Product, Catalent shall provide a written quote of the fee for such additional services and Inspire shall advise Catalent whether it
wishes to have such additional services performed by Catalent. 
 7.2 Price Increase. The Unit Pricing may be adjusted on an annual basis, effective
on each anniversary date of the Effective Date, upon at least sixty (60) days written notice from Catalent to Inspire, by a percentage equal to the [CONFIDENTIAL] as of the date of such notice. Notwithstanding the foregoing, Unit Pricing
may not be increased by more than [CONFIDENTIAL] in any year. 
 7.3 Taxes; Duty. All taxes, duties and other amounts assessed on the API or
the Product prior to or upon sale to Inspire are the responsibility of Inspire, and Inspire shall reimburse Catalent for any such taxes, duties or other expenses paid by Catalent. 
 7.4 Payment Terms. Catalent shall invoice Inspire for all Product upon shipment of the applicable Product
to Inspire or its designee, and payment for such invoices, except for any amounts disputed in good faith by Inspire, shall be due within thirty (30) days after receipt of invoice. Notwithstanding the foregoing, Catalent will invoice immediately
upon release of the Product by Inspire if Inspire requests Catalent to store the Product and Catalent agrees to such storage, provided that Inspire shall not be permitted to delay invoicing hereunder by unreasonably failing to release the Product
following manufacture by Catalent. In the event payment is not received by Catalent on or before the thirtieth (30th) day after receipt of the
invoice, then such unpaid amount shall accrue interest at the rate of [CONFIDENTIAL] until paid in full. If any invoice is rejected or disputed by Inspire, in whole or in part, for any reason, Inspire shall provide Catalent with its reason(s)
for such rejection or dispute, in writing, within fifteen (15) days of receipt of the invoice. The parties agree to negotiate in good faith in order to find a mutually acceptable resolution of the rejection or dispute. Upon any termination or
expiration of this Agreement, if the amount Inspire has previously paid to Catalent exceeds the amount that is actually owed to Catalent for services rendered to the date of such termination, Catalent shall reimburse the balance of the excess
payment(s) to Inspire within thirty (30) days of receipt of a written demand for the same from Inspire. 
 ARTICLE 8

 CHANGES TO SPECIFICATIONS 
 All Specifications and any changes thereto agreed to by the parties from time to time shall be in writing, dated and signed by the parties. No change in the Specifications shall be implemented by Catalent, whether requested by Inspire or
Catalent or requested or required by any Regulatory Authority, until the parties have agreed in writing to such change and the implementation date of such change. Catalent shall respond promptly to any request made by 

  

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Inspire or any Regulatory Authority for a change in the Specifications, and both parties shall use commercially reasonable, good faith efforts to agree to
the terms of such change in a timely manner. As soon as possible after a request is made for any change in Specifications, Catalent shall notify Inspire of the costs associated with such change and shall provide such supporting documentation as
Inspire may reasonably require. Inspire shall be responsible for all costs associated with any such agreed upon changes, excepting only (i) changes that are generally applicable to the manufacture of pharmaceutical products or applicable dosage
forms and required by any Regulatory Authority in order to maintain compliance with Applicable Laws, and (ii) corrective actions taken by Catalent in response to a deficiency noted by any Regulatory Authority, the costs of each of which will be
borne by Catalent. 
 ARTICLE 9 
 RECORDS; REGULATORY MATTERS 
 9.1 Batch Records and Data. Catalent shall provide Inspire with one properly completed copy of the
Batch records prepared for each Batch of Product released by Catalent’s Quality Assurance group. Catalent will provide additional copies at Inspire’s expense. 
 9.2 Recordkeeping. Catalent shall maintain true and accurate books, records, test and laboratory data, reports and all other information relating to Processing under this Agreement, including all information
required to be maintained by all Applicable Laws. Such information shall be maintained in forms, notebooks and records for a period of at least two (2) years from the relevant finished Product expiration date or longer if required under
Applicable Laws. 
 9.3 Regulatory Compliance. Inspire shall be solely responsible for all permits and licenses required by any regulatory agency with
respect to the Product under this Agreement, including any product licenses, applications and amendments in connection therewith. Catalent will be responsible to maintain all permits and licenses required by any Regulatory Authority with respect to
the Facility and the Processing. During the Term, Catalent will assist Inspire with all regulatory matters relating to Processing under this Agreement, at Inspire’s request and at Inspire’s expense. Each party intends and commits to
cooperate to satisfy all Applicable Laws relating to Processing under this Agreement. Catalent shall provide to each applicable Regulatory Authority all documents and information requested by each such Regulatory Authority in support of
Catalent’s and Inspire’s regulatory filings with respect to the Product and the Processing and, from time to time, shall submit to inquiries, audits and inspections by each such Regulatory Authority. Catalent hereby grants Inspire the
right to cross-reference all filings held in Catalent’s name with applicable Regulatory Authorities that are reasonably necessary in connection with Inspire’s obtaining and/or maintaining marketing approval for the Product. Copies of all
documents to be provided to any Regulatory Authority hereunder shall be provided to Inspire at least five (5) business days in advance of, if practical, or otherwise as soon as practicable after, delivery to such Regulatory Authority.

 9.4 Quality Audits. During the term of this Agreement, duly-authorized employees, agents and representatives of Inspire shall be granted access to
the Facility as per the Quality Agreement upon at least thirty (30) days prior written notice and at reasonable times during regular business hours for the purpose of inspecting and verifying that Catalent is complying 

  

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with GMPs, the Specifications and this Agreement. Inspire also shall have the right to perform audits if Inspire reasonably believes in good faith that
audits are warranted in any year for cause and additional audits solely to the extent necessary to address specific quality problems with the Product or if there has been an adverse event with the Product or a proposed inspection by any Regulatory
Authority. For purposes of this Section 9.4, duly-authorized agents and representatives shall be required to sign Catalent’s standard Confidential Disclosure Agreement prior to being allowed access to Catalent’s Facilities. Catalent
agrees to cooperate and assist Inspire as may be necessary or appropriate in order to enable Inspire to carry out the purpose and intent of this Section 9.4, which shall include, without limitation, executing, acknowledging and delivering such
documentation as may be required for travel to any and all of Catalent facilities. 
 9.5 Inspection of Processing. Inspire may [CONFIDENTIAL]
to observe the Processing provided that Inspire provide Catalent at least [CONFIDENTIAL] advance written notice of the attendance of such Inspire representatives. Inspire shall indemnify and hold harmless Catalent for any action or activity
of such representatives while on Catalent’s premises. 
 9.6 Governmental Inspections and Requests. Catalent shall immediately advise Inspire if
an authorized agent of any Regulatory Authority (i) visits the Facility concerning the Processing of the Product or regarding any matter that is likely to impact Product, or (ii) takes any regulatory action with respect to this Agreement
or the Product or Processing. Catalent shall furnish to Inspire a copy of all written information provided by such Regulatory Authority, if any, within five (5) days of Catalent’s receipt of such information. Further, upon receipt of a
Regulatory Authority request to inspect the Facilities or audit Catalent’s books and records with respect to Processing under this Agreement, Catalent shall immediately notify Inspire, and shall provide Inspire with a copy of any written
document received from such Regulatory Authority. Inspire shall have the right to [CONFIDENTIAL]. Notwithstanding anything contained in this Agreement to the contrary, Catalent shall not initiate or participate in any communications with any
Regulatory Authority concerning the Product or the subject matter of this Agreement without prior consultation with Inspire, unless Catalent (i) reasonably believes it is required by law or regulation to make the communication under conditions
that make such prior consultation impractical, in which case Catalent shall promptly thereafter notify Inspire in writing of the nature and content of the communication, or (ii) is requested to do so by Inspire. 
 9.7 Recall. In the event Catalent believes a recall, field alert, Product withdrawal or field correction may be necessary with respect to any Product provided
under this Agreement, Catalent shall immediately notify Inspire in writing. Catalent will not act to initiate a recall, field alert, Product withdrawal or field correction without the express prior written approval of Inspire, unless otherwise
required by Applicable Laws. In the event Inspire believes a recall, field alert, Product withdrawal or field correction may be necessary with respect to any Product provided under this Agreement, Inspire shall immediately notify Catalent in writing
and Catalent shall provide all necessary cooperation and assistance to Inspire. Inspire shall bear the cost of, and shall reimburse Catalent for expenses incurred in connection with, any recall, field alert, Product withdrawal or field correction
related to the Product unless such recall, field alert, Product withdrawal or field correction is caused solely by Catalent’s breach of its obligations under this Agreement or Applicable Laws, or its negligence or willful misconduct, in which
case, such cost shall be borne by Catalent. For purposes hereof, such cost shall be limited to 

  

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reasonable, actual and documented administrative costs incurred by Inspire for such recall, withdrawal or correction, and replacement of the Defective
Product to be recalled, in accordance with Article 5. 
 9.8 Quality Agreement. Contemporaneously with this Agreement, the parties shall execute a
Quality Agreement in substantially the form attached to this Agreement as Exhibit C and shall thereafter comply therewith. The Quality Agreement shall in no way determine financial responsibility of the parties for the responsibilities set
forth therein. In the event of a conflict between the terms of this Agreement and the Quality Agreement, this Agreement shall control, except with respect to quality matters. 
 ARTICLE 10 
 REPRESENTATIONS AND WARRANTIES 
 10.1 Catalent. Catalent represents and warrants to Inspire that: 
 A. At the time of delivery of the Product as provided in Section 6.1, such Product will conform to and will have been Processed in conformance with the Product Specifications, Applicable Laws and the Quality
Agreement; 
 B. Catalent will comply with all Applicable Laws applicable to Catalent’s performance under this Agreement and its use of
any materials or API provided by Inspire hereunder; 
 C. Catalent will not release the Product if the batch record for a particular Batch of
Product indicates that the Product does not comply with the Specifications or Applicable Laws; 
 D. To Catalent’s knowledge,
Catalent’s performance of its obligations under this Agreement will not infringe upon any patent or other proprietary rights of any third party, except to the extent that any such infringement results from Catalent’s compliance with the
Specifications or other use of Inspire’s Confidential Information or Inspire’s Intellectual Property in accordance with the terms of this Agreement; and 
 E. The transfer of the Product by Catalent to Inspire is rightful and free and clear of any liens and/or encumbrances. 
 10.2 Inspire. Inspire represents and warrants to Catalent that: 
 A. The API and other Inspire Materials delivered to
Catalent under this Agreement will comply with all applicable specifications, will have been produced in compliance with the Applicable Laws; 
 B. To Inspire’s knowledge, Inspire has all necessary authority (including rights under any applicable Intellectual Property related to the Product (but excluding the blow-fill-seal Process, Raw Materials and Dosage Container)) to
provide the Inspire Materials to Catalent under this Agreement and to authorize Catalent to Process the Inspire Materials in accordance 

  

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with this Agreement; 
 C. All artwork and the
content thereof provided to Catalent shall comply with all Applicable Laws; 
 D. It has provided all safe handling instructions, health and
environmental information and material safety data sheets applicable to the Product or to any API, if any, except as disclosed to Catalent in writing by Inspire in sufficient time for review and training by Catalent prior to delivery; 
 E. All Product delivered to Inspire by Catalent will be held, used and/or disposed of by Inspire in accordance with all Applicable Laws; and 

F. Inspire will comply with all Applicable Laws applicable to Inspire’s performance under this Agreement and its use of any materials or Products
provided by Catalent under this Agreement. 
 G. Inspire will not release the Product if Catalent has indicated to Inspire in writing that
the Product does not comply with the Specifications or Applicable Laws. 
 10.3 Mutual. Each party hereby represents and warrants to the other
party that: 
 A. Existence and Power. Such party (1) is duly organized, validly existing and in good standing under the laws of
the state in which it is organized, (2) has the power and authority and the legal right to own and operate its property and assets, and to carry on its business as it is now being conducted, and (3) is in compliance with all requirements
of Applicable Laws, except to the extent that any noncompliance would not materially adversely affect such party’s ability to perform its obligations under the Agreement; 
 B. Authorization and Enforcement of Obligations. Such party (1) has the power and authority and the legal right to enter into this Agreement
and to perform its obligations hereunder and (2) has taken all necessary action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. 
 C. Execution and Delivery. This Agreement has been duly executed and delivered on behalf of such party, and constitutes a legal, valid, binding
obligation, enforceable against such party in accordance with its terms; 
 D. No Consents. All necessary consents, approvals and
authorizations of all Regulatory Authorities and other persons required to be obtained by such party in connection with the Agreement have been obtained; and 
 E. No Conflict. The execution and delivery of this Agreement and the performance of such party’s obligations hereunder (1) do not conflict with or violate any requirement of Applicable Laws; and
(2) do not materially conflict with, or constitute a material default or require any consent under, any contractual obligation of such party. 
  

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 F. No Debarment. Neither such party nor any of its officers, directors, agents, Affiliates or
employees (i) was or is presently debarred pursuant to the Generic Drug Enforcement Act of 1992 (“GDEA”), (ii) has been debarred or excluded from participation in the Medicare Program, any state Medicaid program or any other
Federal Health Care Program, (iii) has been charged with, indicted for, or convicted of a criminal offense that would lead to debarment or exclusion under the GDEA, or from participation in the Medicare Program, any state Medicaid program or
any other Federal Health Care Program, or (iv) has been or is under investigation by any government authority for debarment or exclusion action. Each party shall notify the other party immediately upon any inquiry or the commencement of any
such investigation or proceeding or of any circumstance that would cause this certification under this Section 10.3(F) to become false or inaccurate. The obligation to notify the other party in accordance with the preceding sentence shall
survive termination or expiration of this Agreement solely with respect to (i) persons rendering services under this Agreement in the case of Catalent, or (ii) persons interacting with Catalent or reviewing and approving documentation from
Catalent in the case of Inspire. 
 10.4 Limitations. THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS ARTICLE 10 ARE THE SOLE AND EXCLUSIVE
REPRESENTATIONS AND WARRANTIES MADE BY EACH PARTY TO THE OTHER AND NEITHER PARTY MAKES ANY OTHER REPRESENTATIONS, WARRANTIES OR GUARANTEES OF ANY KIND WHATSOEVER, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY,
NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE. 
 ARTICLE 11 
 CONFIDENTIAL INFORMATION 
 11.1 Mutual Obligation. Catalent and Inspire agree that they
will not disclose the other party’s Confidential Information (defined below) to any third party without the prior written consent of the other party except as required by law, regulation or court or administrative order; provided, however, that
prior to making any such legally required disclosure, the party making such disclosure shall give the other party as much prior notice of the requirement for and contents of such disclosure as is practicable under the circumstances and, to the
extent reasonably practicable, shall allow the other party to review and comment on any such disclosure, and the parties shall use commercially reasonable efforts to maintain the confidentiality of the information required to be disclosed by, for
example, obtaining a protective order, filing information under seal, requesting confidential treatment or producing such information in a redacted form, as the case may be. Notwithstanding the foregoing, each party may disclose the other
party’s Confidential Information to any of its employees or Affiliates that (A) need to know such Confidential Information for the purpose of performing under this Agreement, (B) are advised of the contents of this Article, and
(C) agree to be bound by the terms of this Article. Catalent and Inspire further agree that they will not use or permit the use of the other party’s Confidential Information for any purpose except solely to perform their obligations under
this Agreement. 
  

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 11.2 Definition. As used in this Agreement, the term “Confidential Information” includes all such
information furnished by Catalent or Inspire, or any of their respective representatives or Affiliates, to the other or its representatives or Affiliates, whether furnished before, on or after the date of this Agreement and furnished in any form,
including but not limited to written, verbal, visual, electronic or in any other media or manner, as well as any information obtained or generated by either party as a result of performance hereunder. Confidential Information includes all
proprietary technologies, know-how, trade secrets, discoveries, inventions and any other Intellectual Property (whether or not patented), analyses, compilations, business or technical information and other materials prepared by either party, or any
of their respective representatives, containing or based in whole or in part on any such information furnished by the other party or its representatives. Confidential Information also includes the existence of this Agreement and its terms. The API,
other Inspire Materials and all information relating to the Product shall be the Confidential Information of Inspire. 
 11.3 Exclusions.
Notwithstanding Section 11.2, Confidential Information does not include information that (A) is or becomes generally available to the public or within the industry to which such information relates other than as a result of a breach of
this Agreement, or (B) is already known by the receiving party at the time of disclosure as evidenced by the receiving party’s written records, or (C) becomes available to the receiving party on a non-confidential basis from a source
that is entitled to disclose it on a non-confidential basis, or (D) was or is independently developed by or for the receiving party without reference to the Confidential Information, as evidenced by the receiving party’s written records;
or (E) is required to be disclosed pursuant to law, regulation or court order, solely to the extent of such requirement; provided that the party required to make the disclosure complies with the obligations regarding disclosures under such
circumstances that are set forth in Section 11.1. 
 11.4 No Implied License. The receiving party will obtain no right of any kind or license
under any patent application or patent by reason of this Agreement. All Confidential Information will remain the sole property of the party disclosing such information or data. 
 11.5 Return of Confidential Information. Upon termination of this Agreement, the receiving party shall, upon request, promptly return within thirty (30) days all Confidential Information of the disclosing
party, including any copies thereof, and cease its use or, at the request of the disclosing party, shall promptly destroy the same and certify such destruction to the disclosing party; except for a single copy thereof, which may be retained for the
sole purpose of determining the scope of the obligations incurred under this Agreement. 
 11.6 Survival. The obligations of this Article 11
will terminate ten (10) years from the expiration of this Agreement. 
 ARTICLE 12 
 INTELLECTUAL PROPERTY 
 12.1 Ownership of Existing
Technologies. All rights to and interests in Inspire’s Intellectual Property and Confidential Information shall remain vested solely in Inspire and no right or interest therein is transferred or granted to Catalent under this Agreement
except for use in 

  

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performance hereunder or as expressly set forth herein. All rights to and interests in Catalent’s Intellectual Property and Catalent’s Confidential
Information shall remain vested solely in Catalent and no right or interest therein is transferred or granted to Inspire under this Agreement except for use in performance hereunder or as expressly set forth herein. 
 12.2 Inspire Inventions. 
 A. Inspire shall own all
data, work product, results, reports, inventions, developments, discoveries, technologies and information, whether or not patentable, that are generated by Catalent or its employees or agents, by Inspire or its employees or agents, or jointly by
Catalent and Inspire or their employees or agents, in connection with the performance of this Agreement to the extent they relate specifically to Inspire’s Confidential Information, Inspire’s Intellectual Property, the Inspire Materials or
the Product (including without limitation any manufacturing process or know-how applicable specifically to the Inspire Materials or the Product) (“Inspire Inventions”), as well as all Intellectual Property rights therein. Inspire will be
responsible for obtaining patent protection on Inspire Inventions at its own cost. Catalent promptly shall notify Inspire in writing of all Inspire Inventions generated by Catalent under this Agreement and agrees to execute all documents necessary
to perfect all rights to and title in any Inspire Inventions in Inspire. Inspire hereby grants to Catalent a non-exclusive, royalty free license to use the Inspire Inventions solely in connection with the Product during the Term. 
 B. The parties acknowledge that [CONFIDENTIAL] and Catalent (as successor in interest to Cardinal Health PTS, LLC) are parties to a Manufacturing
Services Agreement, dated [CONFIDENTIAL] (the “[CONFIDENTIAL] Agreement”), under which Catalent supplies to [CONFIDENTIAL] certain finished pharmaceutical products containing the same active pharmaceutical ingredient
as the API. Notwithstanding Section 12.2(A), Inspire agrees that Inspire’s ownership rights in any data, work product, results, reports, inventions, developments, discoveries, technologies or information generated by Catalent or its
employees or agents in connection with the performance of this Agreement during the period in which the [CONFIDENTIAL] Agreement is in effect will be subject to the rights, if any, that Catalent is required to grant to [CONFIDENTIAL]
in such data, work product, results, reports, inventions, developments, discoveries, technologies or information under the provisions of Article 12 of the [CONFIDENTIAL] Agreement as in effect on the Effective Date (such rights of
[CONFIDENTIAL] being the “[CONFIDENTIAL] Rights”). Without limiting the foregoing, Catalent agrees to notify Inspire in writing prior to the incorporation of any data, work product, results, reports, inventions, developments,
discoveries, technologies or information generated by Catalent or its employees or agents, which may be subject to the [CONFIDENTIAL] Rights, into the Product or the Processing, and the Parties agree that Inspire may elect to proceed or not
to proceed with such incorporation in its discretion. 
 12.3 Catalent Inventions. Subject to the limitations of Section 12.2, Catalent shall own
all inventions, developments, discoveries, technologies and information, including, without limitation, any manufacturing, packaging or analytical processes or methodologies, whether or not patentable, that are generated by Catalent or its employees
or agents, or jointly by Catalent and Inspire or their employees or agents, in connection with the performance of this Agreement to the extent they relate specifically to Catalent’s Confidential Information or Catalent’s Intellectual
Property (“Catalent Inventions”), as well as all Intellectual Property rights therein. 

  

 - 16 - 

 
Catalent will be responsible for obtaining patent protection on Catalent Inventions at its own cost. Inspire agrees to execute all documents necessary to
perfect all rights to and title in any Catalent Inventions in Catalent. [CONFIDENTIAL]. 
 ARTICLE 13 
 INDEMNIFICATION 
 13.1 Indemnification by
Catalent. Catalent shall indemnify, defend and hold harmless Inspire, its Affiliates, and their respective directors, officers, employees and agents (“Inspire Indemnitees”) from and against any and all suits, claims, losses, demands,
liabilities, damages, costs and expenses (including reasonable attorneys’ fees) in connection with any suit, demand or action by any third party (“Losses”) arising out of or resulting from (A) any breach of its representations,
warranties or obligations set forth in this Agreement, (B) any negligence or willful misconduct by Catalent, or (C) any actual or alleged infringement or violation of any patent, trade secret, copyright, trademark or other proprietary
rights of a third party arising out of or related to Catalent’s Confidential Information or Catalent’s Intellectual Property, except to the extent that any of the foregoing arises out of or results from any Inspire Indemnitee’s
negligence, willful misconduct or breach of this Agreement. 
 13.2 Indemnification by Inspire. Inspire shall indemnify and hold harmless Catalent,
its Affiliates, and their respective directors, officers, employees and agents (“Catalent Indemnitees”) from and against all Losses arising out of or resulting from (A) any breach of its representations, warranties or obligations set
forth in this Agreement; (B) any sale, promotion, distribution, use of or exposure to the Product or any API, including, without limitation, product liability or strict liability; (C) any actual or alleged infringement or violation of any
patent, trade secret, copyright, trademark or other proprietary rights of a third party arising directly out of Inspire’s Confidential Information and/or the Inspire Materials; or (D) any negligence or willful misconduct by Inspire, except
to the extent that any of the foregoing arises out of or results from any Catalent Indemnitee’s negligence, willful misconduct or breach of this Agreement. 
 13.3 Indemnification Procedures. All indemnification obligations in this Agreement are conditioned upon the party seeking indemnification: (A) promptly notifying the indemnifying party of any claim or liability of which the
party seeking indemnification becomes aware (including a copy of any related complaint, summons, notice or other instrument); provided, however, that failure to provide such notice within a reasonable period of time shall not relieve the
indemnifying party of any of its obligations hereunder except to the extent the indemnifying party is prejudiced by such failure; (B) cooperating with the indemnifying party in the defense of any such claim or liability (at the indemnifying
party’s expense); and (C) not compromising or settling any claim or liability without prior written consent of the indemnifying party. 
 ARTICLE 14 
 INSURANCE 
 14.1 Catalent. Catalent shall, at its own cost and expense, obtain and maintain in full force and effect the following insurance during the term of this Agreement: (i) Commercial General 

  

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Liability insurance with per-occurrence and general aggregate limits of not less than $1,000,000; (ii) Products and Completed Operations Liability
Insurance with per-occurrence and general aggregate limits of not less than $10,000,000; (iii) Workers’ Compensation and Employer’s Liability Insurance with statutory limits for Workers’ Compensation and Employer’s Liability
insurance limits of not less than $1,000,000; and (iv) Professional Services Errors & Omissions Liability Insurance with per claim and aggregate limits of not less than $1,000,000 covering sums that Catalent becomes legally obligated
to pay as damages resulting from claims made by Inspire for errors or omissions committed in the conduct of the services outlined in the Agreement. In the event that any of the required policies of insurance are written on a claims made basis, then
such policies shall be maintained during the entire term of this Agreement and for a period of not less than three (3) years following the termination or expiration of this Agreement. Catalent shall obtain a waiver from any insurance carrier
with whom Catalent carries Workers’ Compensation insurance releasing its subrogation rights against Inspire. Catalent shall obtain a waiver from any insurance carrier with whom Catalent carries Property Insurance releasing its subrogation
rights against Inspire. Inspire shall be named as an additional insured under the Commercial General Liability, Products and Completed Operations Liability insurance policies as respects the manufacturing services outlined in this Agreement.
Catalent shall furnish certificates of insurance for all of the above noted policies and required additional insured status to Inspire as soon as practicable after the Effective Date of the Agreement and upon renewal of any such policies. Each
insurance policy that is required under this Section shall be obtained from an insurance carrier with an A.M. Best rating of at least A- VII. 
 14.2
Inspire Insurance. Inspire shall, at its own cost and expense, obtain and maintain in full force and effect the following insurance during the term of this Agreement: (i) Products and Completed Operations Liability Insurance (including
clinical trial coverage) with per-occurrence and general aggregate limits of not less than $10,000,000; (ii) Workers’ Compensation and Employer’s Liability Insurance with statutory limits for Workers’ Compensation and
Employer’s Liability insurance limits of not less than $1,000,000; (iii) All Risk Property Insurance, including transit coverage, in an amount equal to full replacement value covering Inspire’s property while it is in transit to
Catalent’s facility. In the event that any of the required policies of insurance are written on a claims made basis, then such policies shall be maintained during the entire term of this Agreement and for a period of not less than three
(3) years following the termination or expiration of this Agreement. Inspire shall obtain a waiver from any insurance carrier with whom Inspire carries Workers’ Compensation insurance releasing its subrogation rights against Catalent.
Inspire shall obtain a waiver from any insurance carrier with whom Inspire carries Property Insurance releasing its subrogation rights against Catalent. Catalent and its subsidiaries and parent corporation shall be named as additional insureds under
the Products and Completed Operations Liability insurance policies as respects the products and completed operations outlined in this Agreement. Inspire shall furnish certificates of insurance for all of the above noted policies and required
additional insured status to Catalent as soon as practicable after the Effective Date of the Agreement and upon renewal of any such policies. Each insurance policy that is required under this Section shall be obtained from an insurance carrier with
an A.M. Best rating of at least A- VII. 
  

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 ARTICLE 15 
 TERM AND TERMINATION 
 15.1 Term. This Agreement shall commence on the Effective Date and shall continue for a
period of six (6) Contract Years, unless earlier terminated under Section 15.2 or Section 18.15 below (the “Term”). The Agreement may be extended by mutual written agreement of both parties. 
 15.2 Termination by Either Party. 
 (a) Material
Breach. Either party may terminate this Agreement effective upon sixty (60) days prior written notice to the other party, if the other party commits a material breach of this Agreement and fails to cure such breach by the end of such sixty
(60) day period; provided, however, that failure to pay amounts due under this Agreement within fifteen (15) days after such payments are due (as set forth in Section 7.4) shall constitute cause for immediate termination of this
Agreement, or at Catalent’s discretion, Catalent shall be relieved of any further obligation to perform under this Agreement until all outstanding payments are brought current. In the event that Inspire terminates this Agreement as provided in
this Section 15.2(a), Catalent agrees to use commercially reasonable efforts to assist Inspire to promptly transfer, at Inspire’s expense, the manufacture of the Products to any other facility or facilities selected by Inspire in its sole
discretion; provided that, if Inspire terminates as provided in this Section 15.2(a) for Catalent’s failure to supply Product, then such transfer shall be at Catalent’s expense. 
 (b) Bankruptcy. Either party may terminate this Agreement effective upon written notice to the other party, if the other party becomes insolvent
or admits in writing its inability to pay its debts as they become due, files a petition for bankruptcy, makes an assignment for the benefit of its creditors or has a receiver, trustee or other court officer appointed for its properties or assets.

 (c) Inspire Termination by Notice. Inspire may terminate this Agreement by delivery of a one (1) year advance written notice
delivered at any time following the conclusion of the third Contract Year. 
 (d) Catalent Termination by Notice. Catalent may
terminate this Agreement by delivery of a twenty-four (24) month advance written notice delivered at any time following the conclusion of the third Contract Year. 
 ARTICLE 16 
 LIMITATIONS OF LIABILITY 
 16.1 CATALENT’S LIABILITY UNDER THIS AGREEMENT FOR ANY AND ALL CLAIMS FOR LOST, DAMAGED OR DESTROYED API OR OTHER INSPIRE MATERIALS, WHETHER OR NOT SUCH API OR
OTHER INSPIRE MATERIALS ARE INCORPORATED INTO FINISHED PRODUCT, SHALL NOT EXCEED [CONFIDENTIAL]  
  

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 16.2 EXCEPT FOR CATALENT’S LIABILITY FOR [CONFIDENTIAL] (II) THIRD PARTY CLAIMS UNDER SECTION 13.1(A) OR
13.1(B) FOR BODILY HARM OR BODILY INJURY TO ANY PERSON CAUSED BY ANY PRODUCT, OR (III) CATALENT’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, IN NO EVENT SHALL CATALENT’S AGGREGATE LIABILITY IN ANY CONTRACT YEAR UNDER THIS AGREEMENT EXCEED
[CONFIDENTIAL]. FOR PURPOSES OF THIS SECTION, “PAYABLE” SHALL MEAN AMOUNTS INVOICED BY CATALENT BUT NOT PAID BY INSPIRE. 
 16.3 NEITHER
PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL (EXCEPT FOR THOSE INDEMNITY OBLIGATIONS UNDER ARTICLE 13 THAT ARE DETERMINED TO BE CONSEQUENTIAL DAMAGES) DAMAGES ARISING OUT OF PERFORMANCE UNDER
THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, LOSS OF REVENUES, PROFITS OR DATA, WHETHER IN CONTRACT OR TORT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
 ARTICLE 17 
 NOTICE 
 All notices and other communications hereunder shall be in writing and shall be deemed given: (A) when delivered personally; (B) when delivered by facsimile
transmission (receipt verified); (C) when received or refused, if mailed by registered or certified mail (return receipt requested), postage prepaid; or (D) when delivered if sent by express courier service, to the parties at the following
addresses (or at such other address for a party as shall be specified by like notice; provided, that notices of a change of address shall be effective only upon receipt thereof): 
  

			
	 To Inspire:
	  	Inspire Pharmaceuticals, Inc.
		  	4222 Emperor Boulevard, Suite 200
		  	Durham, NC 27703-8566
		  	Attn: General Counsel
		  	Facsimile: (919) 941-9797
		
	 To Catalent:
	  	Catalent Pharma Solutions, LLC
		  	2200 Lake Shore Drive
		  	Woodstock IL 60098
		  	Attn: Vice President/General Manager
		  	Facsimile: (815) 206-1335
		
	 With a copy to:
	  	Catalent Pharma Solutions, LLC
		  	14 Schoolhouse Road
		  	Somerset, NJ 08873
		  	Attn: General Counsel,
		  	Pharmaceutical Technologies and Services
		  	Facsimile: 732-537-6491

  

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 ARTICLE 18 
 MISCELLANEOUS 
 18.1 Entire Agreement; Amendments. This Agreement, the attachments and any amendments thereto
constitute the entire understanding between the parties and supersede any contracts, agreements or understanding (oral or written) of the parties with respect to the subject matter hereof. No term of this Agreement may be amended except upon written
agreement of both parties, unless otherwise provided in this Agreement. 
 18.2 Captions. The captions in this Agreement are for convenience
only and are not to be interpreted or construed as a substantive part of this Agreement 
 18.3 Further Assurances. The parties agree to
execute, acknowledge and deliver such further instruments and to take all such other incidental acts as may be reasonably necessary or appropriate to carry out the purpose and intent of this Agreement. 
 18.4 No Waiver; Cumulative Remedies. Failure by either party to insist upon strict compliance with any term of this Agreement in any one or more instances
will not be deemed to be a waiver of its rights to insist upon such strict compliance with respect to any subsequent failure. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
 18.5 Severability. If any term of this Agreement is declared invalid or unenforceable by a court or other body of competent jurisdiction, the remaining terms of
this Agreement will continue in full force and effect. 
 18.6 Independent Contractors. The relationship of the parties is that of independent
contractors, and neither party will incur any debts or make any commitments for the other party except to the extent expressly provided in this Agreement. Nothing in this Agreement is intended to create or will be construed as creating between the
parties the relationship of joint ventures, co-partners, employer/employee or principal and agent. 
 18.7 Successors and Assigns. This Agreement will
be binding upon and inure to the benefit of the parties, their successors and permitted assigns. Neither party may assign this Agreement, in whole or in part, without the prior written consent of the other party, such consent not to be unreasonably
withheld or delayed, except that either party may, without the other party’s consent, assign this Agreement to an Affiliate or to a successor to substantially all of the business or assets of the assigning company related to the subject matter
of this Agreement, or in connection with the acquisition of such party pursuant to a merger, consolidation, share exchange or other business combination. 
 18.8 Governing Law. This Agreement shall be governed by and construed under the laws of the State of New York, excluding its conflicts of law provisions. The United Nations Convention on Contracts for the International Sale of
Goods shall not apply to this Agreement. 
  

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 18.9 Alternative Dispute Resolution. If any dispute arises between the parties (“Dispute”), such Dispute
shall be presented to the respective presidents or senior executives of Catalent and Inspire for their consideration and resolution. If such parties cannot reach a resolution of the Dispute within thirty (30) days of presentation, then such
Dispute shall be resolved by binding alternative dispute resolution in accordance with the then existing Commercial Arbitration Rules of the American Arbitration Association (“AAA”). Arbitration shall be conducted in the jurisdiction of
the defendant party. Notwithstanding the foregoing and subject to the remaining provisions of this Agreement, either party may seek injunctive or other equitable relief in a court of competent jurisdiction pending the outcome of any negotiations or
mediation conducted hereunder which relate to a breach of obligations set forth in Article 11 or 12. 
 18.10 Prevailing Party. In any dispute
resolution proceeding between the parties in connection with this Agreement, the prevailing party will be entitled to its reasonable attorney’s fees and costs incurred in successfully enforcing any obligation of the other party under this
Agreement in such proceeding. 
 18.11 Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an
original but all of which together will constitute one and the same instrument. Any photocopy, facsimile or electronic reproduction of the executed Agreement shall constitute an original. 
 18.12 Publicity. Neither party will make any press release or other public disclosure regarding this Agreement or the transactions contemplated hereby without the
other party’s express prior written consent, except as required under applicable law or by any governmental agency or by rules of any stock exchange on which shares of the disclosing party are listed, in which case the party required to make
the press release or public disclosure shall use commercially reasonable efforts to obtain the approval of the other party as to the form, nature and extent of the press release or public disclosure prior to issuing the press release or making the
public disclosure, which approval shall not unreasonably be withheld. 
 18.13 Survival. The rights and obligations of the parties shall continue
under Section 9.2 (Recordkeeping), Section 9.7 (Recall), Section 10.3(F) (No Debarment), Article 11 (Confidential Information), Article 12 (Intellectual Property), Article 13 (Indemnification), Article 14 (Insurance), Article 16
(Limitations of Liability), Article 17 (Notice), and Article 18 (Miscellaneous), notwithstanding expiration or termination of this Agreement. 
 18.15
Force Majeure. Except as to payments required under this Agreement, neither party shall be liable in damages for any delay or default in such party’s performance hereunder if such default or delay is caused by events beyond such
party’s reasonable control including, but not limited to, acts of God, regulation or law or other action or failure to act of any government or agency thereof, war or insurrection, civil commotion, destruction of production facilities or
materials by earthquake, fire, flood or storm, labor disturbances, epidemic, or failure of suppliers, public utilities or common carriers; provided however, that the party seeking relief hereunder shall immediately notify the other party of such
cause(s) beyond such party’s reasonable control. The party that may invoke this section shall use all reasonable endeavors to 

  

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reinstate its ongoing obligations to the other. If the cause(s) shall continue unabated for ninety (90) days, then both parties shall meet to discuss
and negotiate in good faith what modifications to this Agreement should result from this force majeure. If as a result of such cause(s), Catalent is unable to fully perform its obligations for a period of one hundred and twenty (120) days,
Inspire shall have the right to terminate this Agreement upon written notice to Catalent. In the event that Inspire terminates this Agreement as provided in this Section 18.15, Catalent agrees to use commercially reasonable efforts to assist
Inspire at Inspire’s expense to transfer promptly the manufacture of the Products to any other facility or facilities selected by Inspire in its sole discretion. 
 IN WITNESS WHEREOF, the parties have caused their duly authorized representative to execute this Agreement effective as of the date first written above. 
  

									
	CATALENT PHARMA SOLUTIONS, LLC	 		 	INSPIRE PHARMACEUTICALS, INC.
					
	By:	 	 /s/ Richard Schindewolf
	 		 	By:	 	 /s/ Christy L. Shaffer

	Name:	 	Richard Schindewolf	 		 	Name:	 	Christy L. Shaffer, Ph.D.
	Its:	 	Vice-President & Global GM, BFS Technology	 		 	Its:	 	PRES. & CEO

  

 - 23 - 

 EXHIBIT A 
 SPECIFICATIONS 
 The specifications for the manufacturing and packaging portion of the services shall be as set forth
in the Chemistry, Manufacturing and Controls sections of the NDA applicable to the Product and as follows: 
 Chemistry and Microbiological Specifications

  

			
	Appearance	  	[CONFIDENTIAL]
	Identification	  	[CONFIDENTIAL]
	Azithromycin Assay	  	[CONFIDENTIAL]
	Chromatographic Purity	  	[CONFIDENTIAL]
		
	pH	  	[CONFIDENTIAL]
	Osmolality	  	[CONFIDENTIAL]
	Viscosity	  	[CONFIDENTIAL]
	Benzalkonium Chloride	  	[CONFIDENTIAL]
	Particulates by Microscopy	  	[CONFIDENTIAL]
		
	Sterility	  	[CONFIDENTIAL]

 Packaging & Palletizing/Shipping Specifications 
 [CONFIDENTIAL] 
  

 - 24 - 

 EXHIBIT B 
 UNIT PRICING, FEES AND MINIMUM REQUIREMENT 
  

					
	 UNIT
PRICING

	 Product
	 	 Dosage Form
	 	 Initial Unit Price

	 AzasiteTM Ophthalmic solution
	 	2.5mL sterile solution	 	[CONFIDENTIAL]

  

					
	 MINIMUM
REQUIREMENT

	 Contract Year
	 	 Product/Dosage Form
	 	 Minimum Requirement

	 Contract Year 1
	 	AzasiteTM /2.5mL sterile solution	 	[CONFIDENTIAL]
	 Contract Year 2
	 	AzasiteTM /2.5mL sterile solution	 	[CONFIDENTIAL]
	 Contract Year 3
	 	AzasiteTM /2.5mL sterile solution	 	[CONFIDENTIAL]
	 Contract Year 4
	 	AzasiteTM /2.5mL sterile solution	 	[CONFIDENTIAL]

 [CONFIDENTIAL] 
  

 - 25 -

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