Document:

EX-10.26

 Exhibit 10.26 

THE SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THIS NOTE
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT IN COMPLIANCE THEREWITH. 
 THIS DEBT INSTRUMENT IS BEING ISSUED WITH “ORIGINAL
ISSUE DISCOUNT” (“OID”) WITHIN THE MEANING OF SECTION 1273(a) OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”). THE HOLDER MAY OBTAIN THE “ISSUE PRICE”, THE AMOUNT OF
ORIGINAL ISSUE DISCOUNT, THE “ISSUE DATE” AND THE YIELD TO MATURITY OF THIS DEBT INSTRUMENT BY SUBMITTING A REQUEST FOR SUCH INFORMATION TO: THE ISSUER, C/O WELSH, CARSON, ANDERSON & STOWE, 320 PARK AVENUE, SUITE 2500, NEW YORK, NEW
YORK 10022. 
  

			
	No. 1	 	$5,000,000

 AMENDED AND RESTATED NOTE 

VALERITAS, INC. 
 DUE
September 8, 2021 
 THIS AMENDED AND RESTATED NOTE (this “Note”) is a duly authorized issue of notes of Valeritas, Inc., a
Delaware corporation (the “Issuer”), designated as its 10% Notes Due September 8, 2021 (the “Maturity Date”), in an aggregate principal amount of Five Million U.S. Dollars (U.S. $5,000,000) (the
“Note”). 
 FOR VALUE RECEIVED, the Issuer promises to pay to WCAS Capital Partners IV, L.P., a Delaware limited
partnership (“CP IV”), or a transferee thereof (together with CP IV’s successors and transferees, the “Holder”), the aggregate principal sum of Five Million U.S. Dollars (U.S. $5,000,000) on the Maturity Date and to pay
interest in kind (and not in cash) (each, an “Interest Payment”) on the principal sum outstanding from time to time under this Note (the “Outstanding Principal Amount”) in accordance with the terms herein. Interest on this Note
will accrue at the rate per annum equal to 10% and will be due and payable in kind (and not in cash) and in arrears by automatically adding accrued interest (the “PIK Interest”) to the Outstanding Principal Amount on each June 30 and
December 31 (each an “Interest Payment Date”), commencing with June 30, 2016. All PIK Interest added to the Outstanding Principal Amount shall thereafter be included in the Outstanding Principal Amount for all purposes hereunder. If
the Issuer fails to pay any Outstanding Principal Amount when due, at maturity, on redemption, upon acceleration or otherwise (the amount of such payment, a “Payment Amount”), then any portion of the Payment Amount shall bear interest at a
rate per annum equal to 12% (or, if less, the maximum interest rate then permitted by applicable law) from the due date thereof (whether at maturity, upon acceleration or otherwise) until paid in full in cash. 

Interest will be computed on the basis of a 360-day year of twelve 30-day months. If an Interest Payment Date is not a Business Day, then the
Interest Payment otherwise payable on 

 
such Interest Payment Date shall be due and payable on the Business Day immediately following such Interest Payment Date. Interest Payments will be paid to the Person in whose name this Note is
registered on the Notes Register on the Business Day prior to the applicable payment date. The Issuer shall maintain the Notes Register at its principal office in which it shall provide for the registration of Notes and of transfers and exchanges
thereof. 
 This Note is subject to the following additional provisions: 

ARTICLE 1 

DEFINITIONS 
 For
purposes of this Note, the following terms shall have the following meanings. 
 “Affiliate” shall mean, with respect to a Person,
any other Person directly or indirectly Controlling, Controlled by, or under common Control with, such first Person. “Control” shall mean, with respect to a Person, possession by another Person, directly or indirectly, of the power to
direct or cause the direction of the management or policies of such first Person, whether through the ownership of voting securities, by contract or otherwise. The words “Controlling” and “Controlled” have correlative meanings.
Without limiting the generality of the foregoing, a Person shall be deemed to be “controlled” by another Person if such other Person possesses, directly or indirectly, power to vote 10% or more of the securities having ordinary voting
powers for the election of directors, managing general partners or equivalent governing body of such Person. 
 “Business Day”
means any day other than a Saturday, Sunday or any other day on which commercial banks in the City of New York are authorized or required by law to remain closed. 

“Capital Royalty Debt” means all Indebtedness of the Issuer arising under or in connection with the Senior Term Loan Agreement. 

“Capitalized Lease Obligation” means, with respect to any Person, the obligations of such Person as lessee under a lease (or other
similar arrangement) which at the time would be required to be capitalized on a balance sheet of such lessee in accordance with GAAP; and, for the purposes of this Note, the amount of such obligations at any time shall be the capitalized amount
thereof at such time determined in accordance with GAAP. 
 “Cash Equivalents” shall mean investments in (i) certificates of
deposit, time deposits, eurodollar time deposits and other interest bearing deposits or accounts (including, without limitation, money market accounts) with any United States commercial banks (including, without limitation, United States branches of
foreign banks) having, or whose parent corporation has, a combined capital and surplus of at least $500,000,000, which mature within one (1) year from the date of investment, (ii) obligations issued or unconditionally guaranteed or insured by the
United States government, any agency or instrumentality thereof and backed by the full faith and credit of the United States government, which obligations mature within one (1) year from the date of investment, (iii) direct obligations issued by any
United States state or political subdivision thereof, which mature within one (1) year from the date of investment and have a 

  
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rating of at least A-2 from Standard & Poor’s Corporation or P-2 from Moody’s Investors Service on the date of investment or (iv) commercial paper which has a rating of at least A-1
from Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc., or any successor, or P-2 from Moody’s Investors Service, or any successor, on the date of investment. 

“Change of Control” means (a) a merger or consolidation involving the Issuer or a sale, exchange, conveyance or other disposition of
voting securities of the Issuer to a person or “group” (within the meaning of Section 13(d)(3) of the Exchange Act), in a single transaction or series of related transactions, if, as a result of such merger, consolidation, sale, exchange
conveyance or other disposition, the stockholders of Issuer immediately prior to such merger, consolidation, exchange, conveyance or other disposition (determined at the time of the first of such series of transactions) beneficially own (within the
meaning of Section 13(d)(3) of the Exchange Act) less than a majority of the voting power of the Issuer (or, if applicable, successor to the Issuer or acquiring entity (or parent thereof)) immediately after such merger, consolidation, sale,
exchange, conveyance or other disposition or series of such transactions; (b) any person or “group” (within the meaning of Sections 13(d)(3) of the Exchange Act), other than the Permitted Holders is or becomes the beneficial owner,
directly or indirectly, a majority of the total voting power of all of the issued and outstanding Equity Interests of the Issuer entitled to vote for the election of directors of the Issuer; (c) a single transaction or series of related transactions
pursuant to which any person or “group” (within the meaning of Section 13(d)(3) of the Exchange Act) acquires all or substantially all of the Issuer’s assets determined on a consolidated basis, including through the purchase of equity
securities of one or more Subsidiaries of the Issuer (it being understood that a sale (or multiple related sales) of one or more Subsidiaries of the Issuer (whether by way or merger, consolidation, reorganization or sale of all or substantially all
of the Subsidiaries’ assets or securities) which constitutes all or substantially all of the consolidated assets of the Issuer shall be deemed a sale of substantially all of the assets of the Issuer for purposes of this definition); and (d) any
person or “group” (within the meaning of Section 13(d)(3) of the Exchange Act), other than any of the Permitted Holders, shall succeed in having a majority of its or their nominees elected to the Board of Directors of the Issuer,
provided that, notwithstanding the foregoing, a Change of Control shall not be deemed to have occurred as a result of the Reverse Merger (as defined in the Senior Term Loan Agreement) and the transactions contemplated by and related thereto.

 “Code” means the United States Internal Revenue Code of 1986, as amended. 

“Consolidated EBITDA” means, for any period, the sum of (a) Consolidated Net Income of the Issuer for such period, plus (b) an
amount which, in the determination of Consolidated Net Income for such period, has been deducted for, without duplication, (i) total interest expense; (ii) the provision for taxes based on income or profits; (iii) the total amount of depreciation
and amortization expense; (iv) the amount of management, monitoring, consulting, transaction and advisory fees paid or accrued during such period to the Sponsors in accordance with the Management Agreement; and (v) non-cash expenses related to
goodwill, trademarks and other intangible asset impairment; and minus (c) to the extent added in determining Consolidated Net Income for such period, the sum of the following for such period (without duplication): (1) interest income for such
period and (2) other non-cash income or gains. 

  
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 “Consolidated Net Income” means, for any period, with respect to any Person and its
Subsidiaries on a consolidated basis, net income as determined in accordance with GAAP; provided that Consolidated Net Income for any such period shall exclude, without duplication, 

(i) any net after-tax extraordinary, unusual or non-recurring gains, losses or charges; 

(ii) the cumulative effect of a change in accounting principle(s) during such period; 

(iii) any net after-tax gains or losses realized upon the disposition of assets outside the ordinary course of business (including any gain or
loss realized upon the disposition of any Equity Interests of any Person) and any net after-tax gains or losses on disposal of disposed, abandoned or discontinued operations; 

(iv) equity-based awards and compensation expense, non-cash compensation charges, including any such charges arising from stock options,
restricted stock grants or other equity-incentive programs; 
 (v) any net after-tax income or loss (less all fees and expenses or charges
relating thereto) attributable to the early extinguishment of Indebtedness; and 
 (vi) effects of any adjustments in the inventory, property
and equipment, software, goodwill, other intangible assets, in-process research and development, deferred revenue, debt line items and any other noncash charges resulting from the application of purchase accounting in relation to any consummated
acquisition or the amortization or write-off of any amounts thereof. 
 “Consolidated Total Debt” means, as of any date of
determination, (a) the aggregate stated balance sheet amount of Indebtedness of the Issuer and its Restricted Subsidiaries outstanding on such date, determined on a consolidated basis in accordance with GAAP, minus (b) the aggregate amount of
cash and Cash Equivalents (in each case, free and clear of all Liens) included in the consolidated balance sheet of the Issuer and its Restricted Subsidiaries as of such date; provided, that Consolidated Total Debt shall not include
Indebtedness in respect of (i) any letter of credit, except to the extent of unreimbursed amounts under standby letters of credit or (ii) obligations under Swap Contracts. 

“Default” shall mean any of the events specified in Section 11.01, which after the giving of notice or the lapse of time set
forth in Section 11.01, or both, would constitute an Event of Default. 
 “Disposition” means with respect to any Property,
any sale, lease, sale and leaseback, assignment (other than an assignment for security), conveyance, transfer or other disposition thereof, and the terms “Dispose” and “Disposed of” shall have correlative meanings. 

“Disqualified Equity Interests” means, with respect to any Person, any Equity Interest of such Person which, by its terms, or by the
terms of any security or other Equity Interests into which it is convertible or for which it is exchangeable, or upon the happening of any event or condition (a) matures or is mandatorily redeemable (other than solely for Qualified Equity
Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control, Initial Public Offering or asset sale so long as any rights of the holders thereof upon the occurrence of a Change of Control, Initial Public
Offering or asset sale event shall be subject to 

  
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the occurrence of the Maturity Date), (b) is redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests), in whole or in part, or (c) is or becomes
convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is ninety one (91) days after the Maturity Date. 

“Equity Interests” means, with respect to any Person, shares of capital stock (or other ownership or profit interests in), limited
liability company interests, membership interests or other equivalents of such Person, warrants, options or other rights for the purchase or other acquisition from such Person of shares of capital stock of (or other ownership or profit interests
in), limited liability company interests, membership interests or other equivalents such Person, securities convertible into or exchangeable for shares of capital stock (or other ownership or profit interests in), limited liability company
interests, membership interests or other equivalents of such Person or warrants, rights or options for the purchase or other acquisition from such Person of such shares (or such other interests), and other ownership or profit interests in such
Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are authorized or otherwise existing on any date of
determination. 
 “Events of Default” has the meaning set forth in Section 11.01. 

“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time. 

“Guaranty” or “Guaranteed,” as shall mean any agreement, undertaking or arrangement by which any Person guarantees or
otherwise becomes or is contingently liable upon the Indebtedness of any other Person (other than by endorsements of instruments in the course of collection). The amount of any Guaranty hereunder shall (subject to any limitations set forth therein)
be deemed to be an amount equal to the outstanding principal amount (or maximum principal amount, if larger) of the obligations in respect of which such Guaranty is made. 

“Holder” has the meaning set forth on the first page of this Note. 

“Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to
advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by
such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or services (excluding accrued expenses and trade accounts payable incurred in the ordinary course of business), (e) all Indebtedness of others
secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (f)
all Guarantees by such Person of Indebtedness of others, (g) all Capitalized Lease Obligations of such Person, (h) the face amount of all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and
letters of guaranty, (i) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (j) all net obligations of such Person under interest rate protection, swap agreements and collar agreements

  
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(such obligations to be equal to the termination value of such agreement giving rise to such obligation that would be payable by such person at such time) and (k) Disqualified Equity Interests.

 “Indemnitee” has the meaning set forth in Article 20. 

“Initial Public Offering” shall mean the initial public offering of the common stock of the IPO Issuer. 

“Interest Payment Date” has the meaning set forth on the first page of this Note. 

“Interest Payment” has the meaning set forth on the first page of this Note. 

“Investment” shall mean, with respect to the Issuer or any of its Restricted Subsidiaries, any loan, advance or extension of credit
(other than to customers in the ordinary course of business) by such Person to, or any Guaranty or other contingent liability with respect to the Equity Interests, indebtedness or other obligations of, or any contributions to the capital of, any
other Person, or any ownership, purchase or other acquisition by such Person of any interest in any Equity Interests or other securities of such other Person. The amount of any Investment shall be the original principal or capital amount thereof,
less all returns of principal or equity thereon and other cash returns thereof, less all liabilities expressly assumed by a Person (other than the Issuer or any of its Subsidiaries) in connection with the sale of such Investment and shall, if made
by the transfer or exchange of property other than cash, be deemed to have been made in an original principal or capital amount equal to the fair market value of such property at the time of such Investment. 

“IPO Issuer” shall mean the Issuer or any parent company of the Issuer. 

“Issue Date” means September 8, 2011. 

“Issuer” has the meaning set forth on the first page of this Note. 

“Leverage Ratio” means as of the any date of determination, the ratio of (a) Consolidated Total Debt as of such date to (b)
Consolidated EBITDA for the four consecutive fiscal quarter period most recently ended for which financial statements described in Section 5.01(a) or (b) of the Issuer are available. 

“Lien” shall mean, with respect to any property, any mortgage, lien, pledge, negative pledge or other agreement not to pledge,
charge, security interest, title retention agreement, levy, execution, seizure, attachment, garnishment or other encumbrance of any kind in respect of such property, whether created by statute, contract, the common law or otherwise, and whether or
not choate, vested or perfected. 
 “Management Agreement” shall mean that certain management agreement dated as of September 8,
2011 between the Sponsor and the Issuer, as the same may be amended, modified or replaced from time to time following the Issue Date. 

“Mandatory Redemption Date” has the meaning set forth in Section 2.01(b). 

  
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 “Material Adverse Effect” shall mean any material adverse effect upon any of the
following: (a) the business, assets, properties, liabilities, financial condition, or results of operations of the Issuer and its Restricted Subsidiaries on a consolidated basis, taken as a whole, or (b) upon the binding nature, validity, or
enforceability of the Notes, or (c) the ability of the Issuer and its Restricted Subsidiaries to perform the payment obligations under the Notes. 

“Maturity Date” has the meaning set forth on the first page of this Note. 

“Net Proceeds (Asset Sales)” shall mean, with respect to any sale or other disposition of material assets (excluding any asset
disposition permitted by Section 6.02 (other than clause (j) thereof)) by the Issuer or any Restricted Subsidiary, the positive difference between (a) the aggregate amount of cash or Cash Equivalents received (including proceeds of insurance paid
with respect to lost or damaged assets, awards arising from condemnation of assets or taking by eminent domain and including by way of sale or discounting of a note, installment receivable or other receivable (but, in each case, only as and when
received)), and (b) the sum of (i) all legal, title and recording tax expenses, commissions and other reasonable fees and expenses (including, without limitation, attorneys’ fees, accountants’ fees, consultant fees’, investment
banking fees, brokerage fees and commissions), incurred in connection with such event or the procurement of any such cash or Cash Equivalents and all federal, state, provincial, foreign and local taxes required to be paid or accrued as a liability
as a consequence of such event, (ii) all payments made by the Issuer or its Restricted Subsidiaries on any Indebtedness which is secured by the assets subject to such asset sale or other disposition in accordance with the terms of any Lien upon or
with respect to such assets or which must by the terms of such Lien, or in order to obtain a necessary consent to such asset sale or other disposition or by applicable law, be repaid out of the proceeds from such asset sale or other disposition,
(iii) any reasonable reserves established in connection therewith, (iv) reasonable holdbacks and (v) indemnity obligations (fixed or contingent) relating thereto. 

“Note” has the meaning set forth on the first page of this Note. 

“Noteholders” means the registered Holders from time to time of the Notes. 

“Notes Register” means the register maintained by the Issuer, which includes a list of the names and addresses of each Holder, as
well as the Outstanding Principal Amount and interest amount owing to such Holder from time to time. The entries in the Notes Register shall be conclusive, and the Issuer may treat each Person whose name is recorded in the Register pursuant to the
terms hereof as a Holder hereunder for all purposes of this Note. The Notes Register shall be available for inspection by any Holder, at any reasonable time and from time to time upon reasonable prior notice. 

“Notes” has the meaning set forth on the first page of this Note. 

“Optional Redemption Date” has the meaning set forth in Section 2.01(a). 

“Optional Redemption Notice” has the meaning set forth in Section 2.01(a). 

“Outstanding Principal Amount” has the meaning set forth on the first page of this Note. 

  
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 “Parent” means Valeritas Holdings, Inc., a Delaware corporation. 

“Payment Amount” has the meaning set forth on the second page of this Note. 

“Permitted Holders” shall mean each of (i) the Sponsor and (ii) limited partners of the Sponsor. 

“Permitted Transferee” means a holder of the Note pursuant to a valid transfer or assignment in compliance with Article 15.

 “Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization,
association, corporation, limited liability company, institution, public benefit corporation, other entity or government (whether federal, state, county, city, municipal, local, foreign, or otherwise, including any instrumentality, division, agency,
body or department thereof). 
 “PIK Interest” has the meaning set forth on the first page of this Note. 

“Property” means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether
tangible or intangible, including, without limitation, Equity Interests. 
 “Qualified Equity Interests” means any Equity
Interests that are not Disqualified Equity Interests. 
 “Redemption Date” has the meaning set forth in Section 2.01(b). 

“Redemption Price” has the meaning set forth in Section 2.01(a). 

“Required Noteholders” means, as of any date, the holders of more than 50% of the Notes. 

“Restricted Payment” shall mean (a) any direct or indirect distribution or dividend to any Person on account of any Equity Interests
of the Issuer or any of its Restricted Subsidiaries (other than dividends payable solely in stock of or other Equity Interests in such Person and stock splits), including, without limitation, any direct or indirect distribution or dividend to any
Person on account of any warrants or other rights or options to acquire Equity Interests of the Issuer or any of its Restricted Subsidiaries, (b) any payment (including, without limitation, any sinking fund payment, prepayment or installment
payment) on account of the purchase, redemption, defeasance or other acquisition or retirement of any Equity Interest in the Issuer or any of its Restricted Subsidiaries, including, without limitation, any warrants or other rights or options to
acquire shares of capital stock or other Equity Interests in the Issuer or any of its Restricted Subsidiaries, (c) any payment of principal of, or interest on, or payment into a sinking fund for the retirement of, or any defeasance of, subordinated
debt of the Issuer or any of its Restricted Subsidiaries or (d) any management, consulting or similar fees, or any interest thereon, payable by the Issuer or any of its Restricted Subsidiaries to any of their respective Affiliates. 

  
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 “Restricted Subsidiary” means any Subsidiary of the Issuer which is not an Unrestricted
Subsidiary. 
 “Securities Act” means the Securities Act of 1933, as amended. 

“Senior Debt” means any Indebtedness of the Issuer or one of its Restricted Subsidiaries permitted to be incurred under the terms of
this Note (including, without limitation, the Capital Royalty Debt), unless the instrument under which such Indebtedness is incurred expressly provides that it is on a parity with or subordinated in right of payment to this Note; provided,
however, that Senior Debt shall not include: 
 (A) accounts payable or any other obligations of the Issuer or a
Restricted Subsidiary to trade creditors created or assumed by the Issuer or a Restricted Subsidiary in the ordinary course of business in connection with the obtaining of materials or services (including guarantees thereof or instruments evidencing
such liabilities); 
 (B) any liability for U.S. Federal, state, local or other taxes owed or owing by the Issuer or a
Restricted Subsidiary; 
 (C) any obligation of the Issuer or a Restricted Subsidiary to any Subsidiary; or 

(D) any obligations with respect to any Equity Interests of the Issuer. 

“Senior Term Loan Agreement” means that certain Second Amended and Restated Term Loan Agreement dated as of May 3, 2016 among
the Issuer, as borrower, Parent, as guarantor, the subsidiary guarantors from time to time party thereto, Capital Royalty Partners II L.P., Capital Royalty Partners II – Parallel Fund “A” L.P., Parallel Investment Opportunities
Partners II L.P., Capital Royalty Partners II (Cayman) L.P., and Capital Royalty Partners II – Parallel Fund “B” (Cayman) L.P., as lenders, as amended, amended and restated, supplemented or modified from time to time 

“Sponsor” means each of Welsh, Carson, Anderson & Stowe XI, L.P., CP IV and WCAS Management Corporation, and each of their
respective Affiliates and related investment funds and the individual general partners of each of the foregoing partnerships. 

“Subordination Agreement” means the Second Amended and Restated Subordination Agreement dated as of May 3, 2016 among the Holder,
Capital Royalty Partners II L.P., Capital Royalty Partners II – Parallel Fund “A” L.P., Parallel Investment Opportunities Partners II L.P., Capital Royalty Partners II (Cayman) L.P., and Capital Royalty Partners II – Parallel
Fund “B” (Cayman) L.P., and the Issuer. 
 “Subsidiary” shall mean, as applied to any Person, any corporation of which
more than fifty percent (50%) of the outstanding stock having ordinary voting power to elect a majority of its board of directors, regardless of the existence at the time of a right of the holders of any class or classes of securities of such
corporation to exercise such voting power by reason of the happening of any contingency, or any partnership or limited liability company of which more than fifty percent (50%) of the outstanding Equity Interests, is at the time owned directly or
indirectly by such Person, or by one or more Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such Person. 

  
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 “Swap Contract” shall mean (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or
forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any
and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International
Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement. 

“Unrestricted Subsidiary” means (a) any Subsidiary of the Issuer that at the time of determination shall be designated an
Unrestricted Subsidiary by the Issuer in the manner provided herein and (b) any Subsidiary of an Unrestricted Subsidiary. The Issuer may designate any of its newly acquired or newly formed Subsidiaries after the date hereof to be an Unrestricted
Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Equity Interests or Indebtedness of, or holds any Lien on any property of, the Issuer or any other Subsidiary of the Issuer that is not a Subsidiary of the Subsidiary to be so
designated; provided, however, that the Subsidiary to be so designated has total assets of $10,000 or less at the time of designation. The value of the total assets of the Subsidiary to be designated as an Unrestricted Subsidiary shall be determined
in good faith by the Issuer’s board of directors or similar governing body and certified to the Holder. The Issuer may designate any Unrestricted Subsidiary as a Restricted Subsidiary; provided, however, that immediately after giving effect to
such designation no Default or Event of Default shall have occurred and be continuing or result therefrom. 
 ARTICLE 2 

REDEMPTION 

Section 2.01 (a) Redemption at Option of the Issuer. At any time and from time to time after the Issue Date, the Issuer may deliver a
written notice to the Holder (the “Optional Redemption Notice”), indicating that the Issuer has elected to redeem, and is requiring the Holder to submit for redemption, subject to Section 2.01(d), all or any portion of this
Note for an amount in cash as set forth below (the “Redemption Price”). The Redemption Price with respect to any such date shall be equal to 100% of the Outstanding Principal Amount of this Note to be redeemed, plus accrued and
unpaid interest on such Outstanding Principal Amount to the Redemption Date. 

  
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 The Optional Redemption Notice shall be sent by facsimile and overnight courier to the Holder and
shall indicate (w) the date fixed for redemption, which shall be not less than five (5) Business Days or more than 30 days after the effective date of the Optional Redemption Notice (the “Optional Redemption Date”), (x) the
Outstanding Principal Amount of this Note to be redeemed, (y) the place or places where this Note is to be surrendered for payment of the Redemption Price and (z) that interest on the portion of this Note to be redeemed will cease to accrue on such
Optional Redemption Date. An Optional Redemption Notice may not be conditional. 
 (b) Mandatory Redemption. 

(i) Change of Control. The Issuer shall redeem concurrently with any Change of Control all of the Notes for an amount in cash equal to
the Redemption Price. 
 (ii) Repayments Upon Sales of Assets. Subject to prior application in accordance with the terms of any
documentation governing any Senior Debt, unless otherwise agreed by the Required Noteholders, on the fifth Business Day following the receipt of Net Proceeds (Asset Sales) in an aggregate amount greater than $15,000,000 for each fiscal year of the
Issuer other than sale of inventory in the ordinary course of business, the Notes shall be repaid in an amount equal to such Net Proceeds (Asset Sales), together with any accrued interest on the portion of the Notes repaid; provided,
however, that no such repayment shall be required if the Issuer notifies the Noteholders on or before the date such repayment would otherwise be required under this Section 2.01(b)(ii) that the Issuer or its Subsidiaries intend to use
any or all of such Net Proceeds (Asset Sales) to invest in capital assets or Investments in the business of the Issuer or its Subsidiaries within twelve (12) months of the date of such sale, lease, transfer or other disposition, in which case, the
repayment of the Notes which is otherwise required under this Section 2.01(b)(ii) up to the amount of the Net Proceeds (Asset Sales) to be reinvested pursuant to this Section 2.01(b)(ii) need not be made, but if all or part of such Net
Proceeds (Asset Sales) are not used within such twelve (12) month period (or committed to be reinvested and actually so reinvested within 90 days after such 12 month period), then the Notes shall be repaid by an amount equal to the Net Proceeds
(Asset Sales) calculated based on the portion of Net Proceeds (Asset Sales) not invested pursuant to this Section 2.01(b)(ii) on the day immediately following such twelve (12) month period (or 90 day period thereafter to the extent so
committed to be reinvested within such 12 month period). Such repayments shall be applied to the principal amount of the Notes, on a pro rata basis. Notwithstanding the foregoing provisions of this Section 2.01(b)(ii), if at the time
the Issuer would otherwise be required to required to repay the Notes pursuant to this Section 2.01(b)(ii), the Issuer does not have access to the applicable Net Proceeds (Assets Sales) as a result of a restriction contained in any
documentation governing any Senior Debt, then the Issuer shall have no obligation to repay the Notes pursuant to this Section 2.01(b)(ii) until such time as and to the extent such restriction no longer applies. 

The date of any such consummation pursuant to clause (i) or (ii) above is referred to herein as a “Mandatory Redemption
Date”, and any Optional Redemption Date or Mandatory Redemption Date is referred to herein as a “Redemption Date”. 

(c) Procedures. If the Issuer has elected to exercise its redemption right pursuant to Section 2.01(a), or in the case of a
mandatory redemption event described in Section 2.01(b), the 

  
 11 

 
Issuer shall pay to the Holder, in cash, on the Redemption Date, by wire transfer of immediately available funds to an account designated in writing by the Holder, an amount equal to the
Redemption Price. In the event that less than the entire Outstanding Principal Amount of this Note is being redeemed, then the Issuer shall, at its own expense, issue and deliver to the Holder within five (5) Business Days after delivery to the
Issuer of this Note, a replacement Note for the Outstanding Principal Amount of this Note not redeemed by the Issuer. 
 If the Issuer has
elected to exercise its redemption right pursuant to Section 2.01(a), or in the case of a mandatory redemption event described in Section 2.01(b) this Note (or portion hereof to be redeemed) shall, on the Redemption Date, become due
and payable at the applicable Redemption Price and from and after such date (unless the Issuer shall default in the payment of the Redemption Price) this Note (or portion hereof that was redeemed) shall cease to bear interest. Upon surrender of this
Note for redemption in accordance with said notice, this Note (or portion hereof to be redeemed) shall be paid by the Issuer at the Redemption Price. 

(d) If the applicable Redemption Date is an Interest Payment Date, the Interest Payment becoming due on such date shall be payable to the
Holder. Notwithstanding anything herein to the contrary, the Issuer may only exercise its rights pursuant to Section 2.01(a) so as to redeem Notes from all Noteholders in proportion to the Outstanding Principal Amount of all Notes held
by each such Noteholder on the applicable Redemption Date. 
 ARTICLE 3 

NO REISSUANCE OF NOTE 

No Notes acquired by the Issuer by reason of redemption, purchase, conversion or otherwise shall be reissued, and all such Notes shall be
retired. Except as contemplated by Section 2.01(c), no additional Notes shall be authorized or issued without the consent of the Required Noteholders. 

ARTICLE 4 
 NO
IMPAIRMENT 
 Except as otherwise approved in writing by the Required Noteholders, the Issuer shall not intentionally take
any action which would impair the rights and privileges of this Note set forth herein or the Holder hereof. 
 ARTICLE 5 

AFFIRMATIVE COVENANTS 

Section 5.01 Financial Statements and Reports. The Issuer shall furnish to the Holder the following financial information: 

(a) Annual Financial Statements. As soon as available and in any event within 15 days following the date the Parent or the Issuer files
Form 10-K with the SEC, the consolidated 

  
 12 

 
balance sheets of Parent, Issuer and their Subsidiaries as of the end of such fiscal year, and the related consolidated statements of income, shareholders’ equity and cash flows of Parent,
Issuer and their Subsidiaries for such fiscal year, prepared in accordance with GAAP consistently applied, all in reasonable detail, accompanied by a report and opinion thereon of KPMG LLP or another firm of independent certified public accountants
of recognized national standing acceptable to the Lenders, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any qualification or exception as to the scope of such audit.

 (b) Quarterly Financial Statements. As soon as available and in any event within 15 days following the date the Parent or the
Issuer files Form 10-Q with the SEC, the consolidated balance sheets of the Obligors as of the end of such quarter, and the related consolidated statements of income, shareholders’ equity and cash flows of Parent, Issuer and their Subsidiaries
for such quarter and the portion of the fiscal year through the end of such quarter, prepared in accordance with GAAP consistently applied, all in reasonable detail, together with a certificate of the chief financial officer of Issuer stating that
such financial statements fairly present the financial condition of Parent, Issuer and their Subsidiaries as at such date and the results of operations of Parent, Issuer and their Subsidiaries for the period ended on such date and have been prepared
in accordance with GAAP consistently applied, subject to changes resulting from normal, year-end audit adjustments and except for the absence of notes; 

(c) No Default. Concurrently with each delivery of financial statements pursuant to clauses (a) or (b) of this Section 5.01 a
certificate executed on behalf of the Issuer by the chief financial officer certifying that no event has occurred and is continuing which constitutes a Default or Event of Default, or describing each such event and the remedial steps being taken by
the Issuer. 
 (d) Other Information. Promptly, such additional financial and other information (x) concerning the Issuer or any of
its Restricted Subsidiaries as the Holder may from time to time reasonably request or (y) delivered by the Issuer to its creditors under any documentation governing any Senior Debt. 

Section 5.02 Notice of Material Events. The Issuer will give prompt notice to the Holder of (i) any event or condition that constitutes
an Event of Default or Default, and (ii) of any litigation or proceeding affecting the Issuer or its Restricted Subsidiaries, which could reasonably be expected to result in a Material Adverse Effect. 

Section 5.03 Existence. The Issuer will and will cause each of its Restricted Subsidiaries to preserve and maintain its legal
existence, except as otherwise permitted hereunder. 
 Section 5.04 Notice of Changes in Organizational Documents. If there is any
change in the certificate of incorporation or by-laws of the Issuer or any of its Restricted Subsidiaries, the Issuer will promptly notify the Holder thereof and deliver the revised copies thereof to the Holder. 

  
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 Section 5.05 Compliance with Applicable Law. The Issuer will, and will cause each of its
Restricted Subsidiaries to, comply in all respects with the requirements of all applicable law, except where the failure to do so individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect. 

Section 5.06 Maintenance of Properties. The Issuer will, and will cause each of its Restricted Subsidiaries to, maintain or cause to be
maintained in the ordinary course of business in good repair, working order and condition (reasonable wear and tear excepted) all material properties used in their respective businesses (whether owned or held under lease), other than obsolete
equipment or unused assets. 
 Section 5.07 Accounting Methods and Financial Records. The Issuer will, and will cause each of its
Restricted Subsidiaries to, maintain a system of accounting established and administered in accordance with GAAP in all material respects, keep adequate records and books of account in which complete entries in all material respects will be made in
accordance with GAAP in all material respects and reflecting all transactions required to be reflected by GAAP and keep accurate and complete records in all material respects of their respective material properties and assets. 

Section 5.08 Insurance. The Issuer will, and will cause each of its Restricted Subsidiaries to maintain insurance including, but not
limited to, business interruption coverage, personal property coverage, workmen’s compensation coverage and directors and officers coverage from responsible companies in such amounts and against such risks to the Issuer and each of its
Subsidiaries as is prudent for similarly situated companies engaged in similarly situated industries and such types, with such limits and deductibles and containing such other terms and conditions as are prudent in the reasonable business judgment
of the Issuer. 
 Section 5.09 Payment of Taxes. The Issuer will, and will cause each of its Restricted Subsidiaries to, pay
and discharge all taxes, including, without limitation, withholding taxes, assessments and governmental charges or levies required to be paid by them or imposed upon them or their income or profits or upon any properties belonging to them, prior to
the date on which penalties attach thereto; except that no such tax, assessment, charge, levy or claim need be paid (x) which is being diligently contested in good faith by appropriate proceedings and for which adequate reserves shall have been set
aside in accordance with GAAP on the appropriate books, but only so long as such tax, assessment, charge, levy or claim does not become a Lien or charge and no foreclosure, distraint, sale or similar proceedings shall have been commenced. The Issuer
will, and will cause each of its Restricted Subsidiaries to, timely file all income and material non-income information returns required by federal, state or local tax authorities before penalties attach thereto. 

Section 5.10 Visits and Inspections. The Issuer will, and will cause each of its Restricted Subsidiaries to, permit representatives of
the Holder, upon reasonable prior written notice, to (i) visit and inspect the properties of the Issuer or any of its Restricted Subsidiaries during business hours, (ii) inspect and make extracts from and copies of their respective books and
records, and (iii) discuss with their respective principal officers their respective businesses, assets, liabilities, financial positions, results of operations and business prospects. The Issuer and each of its Restricted Subsidiaries will also
permit representatives of the Holder to discuss 

  
 14 

 
with their respective accountants the Issuer’s and its Restricted Subsidiaries’ businesses, assets, liabilities, financial positions, results of operations and business prospects to the
extent the Issuer is given the opportunity to be present. 
 ARTICLE 6 

NEGATIVE COVENANTS 

So long as any amount payable under this Note remains unpaid, the Issuer covenants and agrees that the Issuer shall not and shall not permit
any of its Restricted Subsidiaries to: 
 Section 6.01 Limitations on Indebtedness. Incur or assume any Indebtedness unless after
giving pro forma effect to such incurrence on a pro forma basis, the Leverage Ratio would not be greater than 3 to 1. 
 Notwithstanding the
foregoing, the Issuer and its Restricted Subsidiaries may incur the following Indebtedness: 
 (a) Indebtedness permitted under the Senior
Term Loan Agreement; 
 (b) Indebtedness incurred pursuant to the Notes, including the accrual and/or capitalization of interest on this
Note and any applicable fees, costs or expenses associated therewith; 
 (c) Indebtedness outstanding on the date hereof and listed on
Schedule 6.01(b) and any refinancing, extension or replacement thereof; 
 (d) Indebtedness of Issuer or any of its Restricted
Subsidiaries to the Issuer or any other Restricted Subsidiary, so long as to the extent such Indebtedness is owing by Issuer, it is subordinated to the obligations hereunder; 

(e) Guarantees of other Indebtedness permitted pursuant to this Section 6.01; 

(f) Indebtedness in respect of Swap Contracts designed to hedge against the Issuer’s or any Restricted Subsidiary’s exposure to
interest rates, foreign exchange rates or commodities pricing risks incurred in the ordinary course of business and not for speculative purposes; 

(g) Indebtedness to current or former officers, managers, consultants, directors and employees, their respective estates, spouses or former
spouses to finance the purchase or redemption of Equity Interests of Issuer or Parent permitted by Section 6.04; 
 (h) Indebtedness
with respect to Capitalized Lease Obligations or with respect to purchase of equipment; 
 (i) Indebtedness incurred by the Issuer or any of
its Restricted Subsidiaries in respect of letters of credit, bank guarantees, supporting obligations, bankers’ acceptances, performance bonds, surety bonds, statutory bonds, appeal bonds, warehouse receipts or similar instruments issued or
created in the ordinary course of business, including in respect of workers 

  
 15 

 
compensation claims, health, disability or other employee benefits or property, casualty or liability insurance or self-insurance or other Indebtedness with respect to reimbursement-type
obligations regarding workers compensation claims; or 
 (j) the Capital Royalty Debt. 

Section 6.02 Disposition of Assets. At any time sell, lease, abandon, or otherwise dispose of any assets, other than: 

(a) Dispositions permitted under the Senior Term Loan Agreement; 

(b) Dispositions of inventory in the ordinary course of business; 

(c) (i) Dispositions of obsolete, surplus or worn out property in the ordinary course of business and Dispositions in the ordinary course of
business of property no longer used or useful in the conduct of the business of the Issuer or any of its Restricted Subsidiaries and (ii) Dispositions of property no longer used or useful in the conduct of the business of the Issuer and its
Restricted Subsidiaries outside the ordinary course of business in an aggregate amount not to exceed $500,000 per annum; 
 (d)
Dispositions of immaterial assets in the ordinary course of business; 
 (e) Dispositions of property to the extent that (x) such property
is exchanged for credit against the purchase price of similar replacement property or (y) the proceeds of such Disposition are promptly applied to the purchase price of such replacement property; 

(f) Dispositions of property to the Issuer or any Restricted Subsidiary; 

(g) to the extent constituting Dispositions, the making of Investments permitted by Section 6.03 and Restricted Payments permitted by
Section 6.04; 
 (h) Dispositions of cash and Cash Equivalents; 

(i) leases, subleases, licenses or sublicenses (including the provision of software or the licensing of other intellectual property rights)
and terminations thereof, and which do not materially interfere with the business of the Issuer and its Restricted Subsidiaries, taken as a whole; 

(j) transfers of property subject to casualty events or condemnation or eminent domain; 

(k) Dispositions of property not otherwise permitted under this Section 6.02 in an aggregate amount in any year not to exceed 10.0% of
Consolidated EBITDA for the most recently ended four quarter fiscal period at the time any Disposition is made pursuant to this clause (j); 

(l) Dispositions or discounts without recourse of accounts receivable in connection with the compromise or collection thereof in the ordinary
course of business; 

  
 16 

 (m) any swap of assets in exchange for services or other assets in the ordinary course of
business of comparable or greater value or usefulness to the business of the Issuer and its Restricted Subsidiaries as a whole, as determined in good faith by the management of the Issuer; 

(n) Dispositions of Investments in joint ventures to the extent required by, or made pursuant to customary buy/sell arrangements between, the
joint venture parties set forth in joint venture arrangements and similar binding arrangements; 
 (o) the unwinding of any Swap Contracts
pursuant to its terms; 
 (p) sales of non-core assets acquired in connection with Investments; provided that the aggregate amount
of such sales shall not exceed 25.0% of the fair market value of the acquired entity or business; and 
 (q) Disposition of the Equity
Interests of an Unrestricted Subsidiary for fair market value as determined in good faith by the Issuer’s board of directors or similar governing body. 

Section 6.03 Investments. Directly or indirectly make any Investment except that the Issuer and its Restricted Subsidiaries may make:

 (a) Investments permitted under the Senior Term Loan Agreement; 

(b) Investments to purchase Cash Equivalents; 

(c) Investments in the Issuer or a Restricted Subsidiary; 

(d) Investments in any Person (i) that will, upon the making of such Investment, become a Restricted Subsidiary or (ii) if as a result of
such Investment such Person is merged or consolidated with or into, or transfers or conveys all or substantially all its Property to, the Company or a Restricted Subsidiary; 

(e) (i) intercompany loans and advances permitted pursuant to Section 6.01; and (ii) capital contributions or other Investments by the
Issuer or any of its Restricted Subsidiary in the Issuer or one of its Restricted Subsidiaries; 
 (f) loans or advances to officers,
directors, consultants and employees of the Issuer or any of its Restricted Subsidiaries (i) for reasonable and customary business-related travel, entertainment, relocation and analogous ordinary business purposes, (ii) in connection with such
Person’s purchase of Equity Interests of the Issuer and (iii) for any other purposes not described in the foregoing clauses (i) and (ii); provided that the aggregate principal amount outstanding at any time under clause (iii) above shall
not exceed $500,000; 
 (g) Investments (i) consisting of advances to customers or extensions of credit in the nature of accounts
receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and (ii) received in satisfaction or partial satisfaction thereof from financially troubled account debtors and other credits to suppliers in
the ordinary course of business; 

  
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 (h) Investments consisting of Restricted Payments permitted by Section 6.04 and
Guarantees of Indebtedness permitted pursuant to this Section 6.01; 
 (i) Investments existing or contemplated on the Issue Date
and set forth on Schedule 6.03(h) and any modification, replacement, renewal, reinvestment or extension thereof; provided that the amount of any original Investment under this clause (h) is not increased except by the terms of such
Investment as of the Issue Date or as otherwise permitted by Section 6.03; 
 (j) Investments in the ordinary course of business
consisting of UCC Article 3 endorsements for collection or deposit and UCC Article 4 customary trade arrangements with customers consistent with past practices; 

(k) Investments (including debt obligations and Equity Interests) received in connection with permitted dispositions under Section
6.02, the bankruptcy or reorganization of suppliers and customers or in settlement of delinquent obligations of, or other disputes with, customers and suppliers arising in the ordinary course of business or upon the foreclosure with respect to
any secured Investment or other transfer of title with respect to any secured Investment; 
 (l) other Investments, in an aggregate amount
outstanding pursuant to this clause (k) at any time not to exceed $1,000,000 (net of any return in respect thereof, including dividends, interest, distributions, returns of principal, profits on sale, repayments, income and similar amounts); 

(m) advances of payroll payments to officers and employees and advances of fees and payments to directors and consultants, in each case, in
the ordinary course of business; 
 (n) Investments to the extent that payment for such Investments is made solely with Equity Interests of
the Issuer or proceeds thereof or capital contributions in respect thereof; 
 (o) Investments of a Restricted Subsidiary acquired after
the Issue Date or of a corporation merged or amalgamated or consolidated into the Issuer or merged, amalgamated or consolidated with a Restricted Subsidiary, after the Issue Date to the extent that such Investments were not made in contemplation of
or in connection with such acquisition, merger, amalgamation or consolidation, and were in existence on the date of such acquisition, merger or consolidation; 

(p) Guarantees by the Issuer or any of its Restricted Subsidiaries of leases (other than capitalized leases) or of other obligations that do
not constitute Indebtedness, in each case entered into in the ordinary course of business; and 
 (q) Investments in deposit accounts and
securities accounts opened in the ordinary course of business. 

  
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 Section 6.04 Restricted Payments. Directly or indirectly declare or make any Restricted
Payment except that: 
 (a) the Issuer and each Restricted Subsidiary may make any Restricted Payments that are permitted under the Senior
Term Loan Agreement; 
 (b) each Restricted Subsidiary may make Restricted Payments to the Issuer, and other Restricted Subsidiaries of the
Issuer (and, in the case of a Restricted Payment by a non-wholly owned Restricted Subsidiary, to the Issuer and any other Restricted Subsidiary and to each other owner of Equity Interests of such Restricted Subsidiary based on their relative
ownership interests of the relevant class of Equity Interests); 
 (c) the Issuer and each Restricted Subsidiary may declare and make
dividend payments or other Restricted Payments payable solely in Equity Interests; 
 (d) repurchases of Equity Interests in the Issuer
deemed to occur upon exercise of stock options or warrants if such Equity Interests represent a portion of the exercise price of such options or warrants, 

(e) the Issuer may pay for the repurchase, retirement or other acquisition or retirement for value of Equity Interests of the Issuer, by any
future, present or former employee, officer, director, manager or consultant of the Issuer or any of its Restricted Subsidiaries upon the death, disability, retirement or termination of employment of any such Person or pursuant to any employee,
manager or director equity plan, employee, manager or director stock option plan or any other employee, manager or director benefit plan or any agreement (including any stock subscription or shareholder agreement) with any such employee, director,
officer or consultant; provided that the aggregate amount of Restricted Payments made pursuant to this clause (d) shall not exceed an aggregate amount of $500,000 in any calendar year; 

(f) notwithstanding anything to the contrary herein, the Issuer may make regularly scheduled payments of interest on any subordinated debt in
accordance with its terms and the applicable subordination agreement; 
 (g) the Issuer may make payments for the reimbursement of expenses
of board members in connection with the performance of their duties as directors; 
 (h) the Issuer may make consummate transactions
expressly permitted pursuant to Section 6.03 and Section 6.05; and 
 (i) the Issuer may make other Restricted Payments
with the proceeds of, in each case to the extent not otherwise applied: (i) the net proceeds from the sale of (or capital contributions in respect of) Equity Interests of the Issuer and (ii) the net proceeds from the sale of the Equity Interests of
(or dividend or distribution received from) an Unrestricted Subsidiary, provided that, the amount available to be applied for Restricted Payments pursuant to this clause (iii) shall be net of the aggregate amount of Investments made in
Unrestricted Subsidiaries pursuant to Section 6.03(k). 

  
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 Section 6.05 Affiliate Transactions. At any time engage in any transaction with an
Affiliate (other than the Issuer or one of its Restricted Subsidiaries), or make an assignment or other transfer of any of its properties or assets to any such Affiliate, in each case, on terms materially less advantageous to the Issuer or such
Restricted Subsidiary than would be the case if such transaction had been effected with a non-Affiliate, except: 
 (j) as permitted under
the Senior Term Loan Agreement; 
 (k) as specifically provided herein (including the payment of any sums permitted under Section
6.04 hereof and transactions under Section 6.03); 
 (l) as may be described on Schedule 2 attached hereto or any
amendment or modification thereto or replacement thereof (so long as any such amendment, modification or replacement is not disadvantageous to the Noteholders in any material respect as compared to the applicable agreement in effect on the Issue
Date); 
 (m) for agreements and arrangements entered into with employees of the Issuer or any of its Restricted Subsidiaries as part of
normal compensation, incentive compensation and expense reimbursement; 
 (n) the payment or performance of obligations under the
Management Agreement; 
 (o) the payment of reasonable and customary fees, bonuses, severance, retirement packages, paid to, and
indemnities provided on behalf of, officers, directors, employees or consultants of the Issuer or any of its Restricted Subsidiaries; 

(p) the issuance of Equity Interests of the Issuer to the extent not otherwise restricted hereunder; 

(q) the payment of reasonable out-of-pocket costs and expenses relating to registration rights and indemnities provided to shareholders; and

 (r) other transactions to the extent that the amount of such transaction does not exceed $250,000 and the aggregate amount of all such
transactions during any one fiscal year of the Issuer does not exceed $500,000. 
 Section 6.06 Limitation on Upstream Dividends and
Loans by Subsidiaries. Except for (i) restrictions imposed by applicable law and (ii) restrictions imposed by the Notes and any documentation governing any Senior Debt, permit any of its Restricted Subsidiaries to enter into or agree, or
otherwise become subject, to any agreement, contract or other arrangement with any Person pursuant to the terms of which (a) such Subsidiary is or would be prohibited or otherwise restricted from declaring or paying any cash dividends or
distributions on any class of its Equity Interests owned directly or indirectly by the Issuer or from making any other distribution on account of any class of any such Equity Interests owned directly or indirectly by the Issuer; or (b) such
Restricted Subsidiary would be prohibited from making loans to the Issuer or repaying loans or advances to the Issuer; provided that the foregoing clauses shall not apply to contractual obligations which (i) are permitted under the Senior
Term Loan Agreement, (ii) binding on a 

  
 20 

 
Restricted Subsidiary at the time such Restricted Subsidiary first becomes a Restricted Subsidiary of the Issuer, so long as such contractual obligations were not entered into solely in
contemplation of such Person becoming a Restricted Subsidiary of the Issuer, (iii) arise in connection with any Disposition permitted by Section 6.02 and relate solely to the assets or Person subject to such Disposition, or (iv) are customary
restrictions in leases, subleases, licenses, sublicenses or asset sale agreements otherwise permitted hereby so long as such restrictions relate to the assets subject thereto. 

ARTICLE 7 

OBLIGATIONS ABSOLUTE 

No provision of this Note shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of,
and interest on, this Note at the time, place and rate, and in the manner, herein prescribed. 
 ARTICLE 8 

WAIVERS OF DEMAND, ETC. 

The Issuer hereby expressly waives (to the extent permitted by applicable law) demand and presentment for payment, notice of nonpayment,
protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, bringing of suit and diligence in taking any action to collect amounts called for hereunder and will be directly and primarily liable for the payment of
all sums owing and to be owing hereon, regardless of and without any notice, diligence, act or omission as or with respect to the collection of any amount called for hereunder. 

ARTICLE 9 

REPLACEMENT NOTES 

In the event that the Holder notifies the Issuer that this Note has been lost, stolen or destroyed, a replacement Note identical in all
respects to the original Note (except for registration number and Outstanding Principal Amount, if different than that shown on the original Note) shall be issued by the Issuer to the Holder; provided that the Holder executes and delivers to
the Issuer an agreement reasonably satisfactory to the Issuer to indemnify the Issuer from any loss incurred by it in connection with such lost, stolen or destroyed Note. 

ARTICLE 10 
 PAYMENT
OF EXPENSES 
 The Issuer agrees to pay all reasonable expenses, including reasonable attorneys’ fees,
which may be incurred by the Holder in connection with any waiver or consent hereunder, any amendment hereof, any Event of Default or alleged Event of Default hereunder or in enforcing the provisions of this Note and/or collecting any amount due
under this Note. 

  
 21 

 ARTICLE 11 

DEFAULTS AND REMEDIES 

Section 11.01 Events of Default. If any one or more of the following events (each, an “Event of Default”) occurs and
is continuing: 
 (a) any default by the Issuer in any payment of interest on this Note when the same becomes due and payable, and such
default continuing for a period of 180 calendar days; 
 (b) any default by the Issuer in the payment of any principal on this Note when the
same becomes due and payable at the Maturity Date, upon acceleration or otherwise; 
 (c) the Issuer shall default in the observance or
performance of any other agreement contained in this Note (other than as provided in paragraphs (a) and (b) of this Section 11.01), and such default shall continue un-remedied for a period of thirty (30) calendar days after the receipt of notice of
such default shall have been given to the Issuer by the Required Noteholders; 
 (d) any representation or warranty made or deemed made by
the Issuer herein or in any other document furnished by it at any time under or in connection with this Note shall prove to have been inaccurate in any material respect on or as of the date made or deemed made or furnished; 

(e) there shall be entered and remain unstayed a decree or order for relief in respect of the Issuer or any of its Restricted Subsidiaries
under Title 11 of the United States Code, as now constituted or hereafter amended, or any other applicable foreign, Federal or state bankruptcy law or other similar law, or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or similar official of the Issuer or any of its Restricted Subsidiaries, or of any substantial part of their respective properties, or ordering the winding-up or liquidation of the affairs of the Issuer or any of its Restricted
Subsidiaries; or an involuntary petition shall be filed against the Issuer or any of its Restricted Subsidiaries and a temporary stay entered, and (i) such petition and stay shall not be diligently contested, or (ii) any such petition and stay shall
continue undismissed for a period of sixty (60) consecutive days; 
 (f) the Issuer or any of its Restricted Subsidiaries shall file a
petition, answer or consent seeking relief under Title 11 of the United States Code, as now constituted or hereafter amended, or any other applicable foreign, Federal or state bankruptcy law or other similar law, or the Issuer or any of its
Restricted Subsidiaries shall consent to the institution of proceedings thereunder or to the filing of any such petition or to the appointment or taking of possession of a receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Issuer or any of its Restricted Subsidiaries or of any substantial part of their respective properties, or the Issuer or any of its Restricted Subsidiaries shall take any action in furtherance of any such action; 

(g) there is entered by any court or arbitration panel against the Issuer or any of its Restricted Subsidiaries a final non-appealable
monetary judgment, decree or award not covered by insurance or indemnification, for the payment of money which exceeds singly or in the aggregate with other such judgments, $5,000,000, and if, within sixty days after the entry, issue or levy
thereof, such judgment, shall not have been paid or discharged or stayed pending appeal or removed to bond, or if, after the expiration of any such stay, such judgment, warrant or process shall not have been paid or discharged or removed to bond
within 60 days thereafter; 

  
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 (h) there shall occur (i) any payment default (after giving effect to all grace periods and
notices) under any instrument, document or agreement relating to any Indebtedness of the Issuer or any of its Restricted Subsidiaries in an aggregate principal amount exceeding $5,000,000; (ii) any event or condition the occurrence of which
would permit acceleration of such Indebtedness, or which, as a result of a failure to comply with the terms thereof, would make such Indebtedness otherwise due and payable, and which event or condition has not been cured within any applicable cure
period or waived in writing prior to any declaration of an Event of Default or acceleration of the Loans hereunder; or (iii) an acceleration of any Senior Debt; or 

(i) Any Note or any material provision thereof, shall at any time and for any reason (other than as expressly permitted hereunder or
thereunder or the satisfaction in full of all the obligations under this Note) be declared by a court of competent jurisdiction to be null and void, or a proceeding shall be commenced by the Issuer or any of its Restricted Subsidiaries seeking to
establish the invalidity or unenforceability thereof (exclusive of questions of interpretation of any provision thereof or satisfaction of the Obligations), or the Issuer or any of its Restricted Subsidiaries shall deny that it has any liability or
obligation for the payment of principal or interest purported to be created under any Note (other than for payment of the Obligations); or 

(j) Any Change of Control shall occur; 

then, the Required Noteholders may, at their option, by notice to the Issuer, declare all the Notes to be forthwith due and payable, whereupon
the principal of the Notes, together with accrued interest thereon, shall become forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are expressly waived by the Issuer; provided,
however, that in any event described in Section 11.01(e) or (f), all the Notes, together with interest accrued thereon, shall automatically become due and payable, without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived by the Issuer. 
 Section 11.02 Acceleration. The Required Noteholders may rescind an acceleration
and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default have been cured or waived except nonpayment of principal or interest that has become due solely because of acceleration. No
such rescission shall affect any subsequent Default or impair any right consequent thereto. A delay or omission by the Required Noteholders or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right
or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are, to the extent permitted by law, cumulative. 

Section 11.03 Waiver of Past Defaults. Waiver of Past Defaults. The Required Noteholders may waive any past or existing Default
and its consequences. When a Default is waived, it is deemed cured, and any Event of Default arising therefrom shall be deemed to have been cured, but no such waiver shall extend to any subsequent or other Default or impair any consequent right. No
failure to exercise and no delay in exercising, on the part of the Required 

  
 23 

 
Noteholders or any Holder, any right, remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law. 
 Section 11.04 Waiver of Stay or Extension Laws. The Issuer (to the extent it may lawfully do so) shall
not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of
this Note, and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and shall not hinder, delay or impede the execution of any power herein granted to the Holder, but shall suffer
and permit the execution of every such power as though no such law had been enacted. 
 ARTICLE 12 

SUBORDINATION 

Section 12.01 Agreement to Subordinate. If requested by a holder of Senior Debt, the Holder agrees to subordinate the Indebtedness and
other obligations evidenced by this Note pursuant to the terms and conditions of a subordination agreement reasonably satisfactory to the Holder. 

ARTICLE 13 
 SAVINGS
CLAUSE 
 In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or
otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in
any way be affected or impaired thereby. 
 ARTICLE 14 

ENTIRE AGREEMENT; AMENDMENTS 

This Note constitutes the full and entire understanding and agreement between the Issuer and the Holder with respect to the subject hereof.
Neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Issuer and the Required Noteholders. Notwithstanding the foregoing, if (x) any amendment or waiver of any
provision or term of this Note is proposed at any time after the dissolution of CP IV and/or the distribution of Notes to the members of CP IV and (y) such amendment or waiver would reduce the principal of, or rate of interest on, any Note or
postpone the date fixed for any payment of principal and/or interest on any Note, such amendment or waiver shall 

  
 24 

 
require the written consent of a majority in interest of all Holders of Notes other than CP IV and its Affiliates (determined by reference to the aggregate principal amount of Notes held by such
other Holders). 
 ARTICLE 15 

TRANSFER; ASSIGNMENT, ETC. 

Prior to an Initial Public Offering this Note shall not be assignable by Holder except with prior consent of a Board Majority of the Minority
(as such term is defined in the Issuer’s Certificate of Incorporation, as amended), such consent not to be unreasonably withheld and after an Initial Public Offering there shall be no such restriction on assignment. Subject to the foregoing
sentence, Holder may exchange any Note for Notes of different denominations, by surrendering such Note to the Issuer together with written instructions for the issuance of one or more new Notes specifying the respective principal amounts of each new
Note. Subject to any restrictions under applicable law, with the prior written consent of the Required Noteholders, a Holder may transfer a Note to a new Holder, by surrendering such Note to the Issuer duly endorsed for transfer or accompanied by a
duly executed instrument of transfer naming the new Holder, together with written instructions for the issuance of one or more new Notes specifying the respective principal amounts of each new Note and the name of each new Holder and each address
therefor. In each case, the Issuer shall simultaneously deliver to such Holder or its designee such new Notes and shall mark the surrendered Notes as canceled. In lieu of the foregoing procedures, a Holder may, with the prior written consent of the
Required Note Holders, assign a Note (in whole but not in part) to a new Holder by sending written notice to the Issuer of such assignment specifying the new Holder’s name and address; in such case, the Issuer shall promptly acknowledge such
assignment in writing to both the old and new Holder. The Issuer shall not be required to recognize any subsequent Holder of a Note unless and until the Issuer has received reasonable assurance that all applicable transfer taxes have been paid. 

ARTICLE 16 
 NO
WAIVER 
 No failure on the part of the Holder to exercise, and no delay in exercising, any right, remedy or power hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise by the Holder of any right, remedy or power hereunder preclude any other or future exercise of any other right, remedy or power. Each and every right, remedy or power hereby
granted to the Holder or allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by the Holder from time to time. 

ARTICLE 17 
 NOTICES

 Unless otherwise provided herein, any notices, consents, waivers or other communications required or permitted to be given under the
terms of this Note must be in 

  
 25 

 
writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally, (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party) or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and
facsimile numbers for such communications shall be: 
 If to the Issuer: 

Valeritas, Inc. 
 750 Route 202
South 
 Suite 100 

Bridgewater NJ 08807 

Attention: Chief Financial Officer 

Telephone: 908-927-9920 

Facsimile: 908-927-9927 
 With a
copy to: 
 Morgan, Lewis & Bockius, LLP 

502 Carnegie Center 
 Princeton
NJ 08540 
 Telephone number: 609-919-6600 

Facsimile number: 609-919-6701 

Attention: Steven M. Cohen, Esquire 

If to the Holder, to its address and facsimile number appearing in the Notes Register, or to such other address and/or facsimile number and/or
to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) Business Days prior to the effectiveness of such change. Written confirmation of receipt (x) given by the recipient of
such notice, consent, waiver or other communication, (y) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (z)
provided by a courier or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above,
respectively. 
 ARTICLE 18 

HOME OFFICE PAYMENT; MISCELLANEOUS 

The Issuer shall make all cash payments due on this Note in immediately available funds to a bank account of the Holder specified in writing
by the Holder to the Issuer. Whenever the sense of this Note requires, words in the singular shall be deemed to include the plural and words in the plural shall be deemed to include the singular. Paragraph headings are for convenience only and shall
not affect the meaning of this document. 

  
 26 

 ARTICLE 19 

CHOICE OF LAW AND VENUE; WAIVER OF
JURY TRIAL 
 This Note shall be governed by and construed in accordance with the law of the State of New
York. The Issuer hereby irrevocably consents to the exclusive jurisdiction of the United States District Court for the Southern District of New York or any New York State court sitting in New York City (and of the appropriate appellate courts
therefrom) in any suit, action or proceeding seeking to enforce any provision of, or based on any suit, action or proceeding arising out of or in connection with, this Note or the transactions contemplated hereby and irrevocably waives, to the
fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has
been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees
that service of process on such party as provided in this Article 19 shall be deemed effective service of process on such party. THE ISSUER HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATED TO THIS NOTE. 
 ARTICLE 20 

INDEMNITY 
 The
Issuer agrees to indemnify and hold harmless each Noteholder and each of their respective Affiliates, employees, representatives, shareholders, officers, directors, trustees, agents and advisors (any of the foregoing shall be an
“Indemnitee”) from and against any and all claims, liabilities, losses, damages, actions, reasonable attorneys’ fees and expenses (as such fees and expenses are incurred) and demands by any party, including the costs of
investigating and defending such claims, whether or not the Issuer, any Subsidiary thereof or the Person seeking indemnification is the prevailing party arising out of (i) the Notes or otherwise under this agreement, or any transaction contemplated
hereby or thereby, (ii) any claims against the Noteholders, or any of them, by any shareholder or other investor in or lender to the Issuer or any Subsidiary thereof, by any brokers or finders or investment advisers or investment bankers retained by
the Issuer or by any other third party, arising out of this Note; provided that no Indemnitee will be indemnified hereunder for its gross negligence or willful misconduct. 

ARTICLE 21 

SUBORDINATION 

This Note is subject to the terms and conditions of the Subordination Agreement. In the event of any conflict between any provision in this
Note and a provision in the Subordination Agreement, such provision of the Subordination Agreement shall control. No right, power or remedy granted to the Holder hereunder or under any document executed in connection with this Note shall be
exercised by the Holder in contravention of the Subordination Agreement. 

  
 27 

 ARTICLE 22 

AMENDED AND RESTATED NOTE 

This Note amends and restates that certain Note dated September 8, 2011, issued by the Issuer to the Holder, as amended by that certain
Amendment No. 1 to note, dated May 24, 2013 (the “Existing Note”). This Note is executed and delivered in substitution for, but not in satisfaction of, the Existing Note and shall not be deemed a novation of such indebtedness. 

[Remainder of this page intentionally left blank] 

  
 28 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed by its officer
thereunto duly authorized. 
 Dated: May 3, 2016 
  

			
	VALERITAS, INC.
		
	By:	 	

		 	Name: John Timberlake
		 	Title:   Chief Executive Officer

 ACKNOWLEDGED AND AGREED 

as of the date first above written: 
  

			
	WCAS CAPITAL PARTNERS IV, L.P.
		
	By:	 	 WCAS CP IV Associates LLC,
 its General
Partner

		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Amended and Restated WCAS Note] 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed by its officer
thereunto duly authorized. 
 Dated: May 3, 2016 
  

			
	VALERITAS, INC.
		
	By:	 	  

		 	Name:
		 	Title:

 ACKNOWLEDGED AND AGREED 

as of the date first above written: 
  

			
	 WCAS CAPITAL PARTNERS IV, L.P.

		
	 By:
	 	 WCAS CP IV Associates LLC,

		 	 its General Partner

		
	 By:
	 	 

		 	Name: Sean M. Traynor
		 	 Title:EX-10.27

 Exhibit 10.27 

EMPLOYMENT AGREEMENT 

This Employment Agreement (this “Agreement”), effective as of May 3, 2016 (the “Effective Date”), is entered into by and
between Valeritas, Inc., a Delaware corporation (the “Company”), and John Timberlake (the “Executive”). The Company and the Executive are referred to each individually as a “party” and collectively as the
“parties.” 
 RECITALS: 

WHEREAS, the Company and the Executive previously executed an Employment Agreement, dated February 18, 2016 (the “Original
Agreement”); and 
 WHEREAS, the Executive and the Company desire to amend and restate the terms and conditions of the Original
Agreement and to continue the Executive’s employment with the Company upon the amended and restated terms and conditions as set forth herein in this Agreement. 

NOW, THEREFORE, in consideration of the mutual agreements herein set forth, the parties agree as follows: 

1. Term. Subject to termination under Section 4, this Agreement shall be effective for the period beginning on the
Effective Date and continuing until the third anniversary of the Effective Date. The term of this Agreement shall automatically renew for periods of one-year, unless either party gives written notice to the other party at least 30 days prior to the
end of the then existing term or any one-year renewal period, that the term of the Agreement shall not be further extended. The period commencing on the Effective Date and ending on the date on which the term of the Agreement terminates in
accordance with this Section 1 or upon termination of employment in accordance with Section 4 is referred to hereinafter as the “Term.” Nothing in this Agreement shall be construed as giving the Executive any right to be retained
in the employ of the Company, and the Executive specifically acknowledges that the Executive shall be an employee-at-will of the Company, and thus subject to discharge at any time by the Company with or without Cause (as defined in Section 4)
and without compensation of any nature except as provided in Section 5 below. 
 2. Duties. During the Term, the
Executive shall serve as the Chief Executive Officer, Chief Commercial Officer, President and Secretary of the Company, and shall perform the executive and administrative duties, functions and privileges incumbent with such positions and such other
duties as reasonably determined and assigned by the Board of Directors of the Company (the “Board”), from time to time. In addition, the Executive shall serve as the Chief Executive Officer, Chief Commercial Officer and President of
Valeritas Holdings, Inc., the parent of the Company. The Executive shall devote substantially all of his time, attention and skill to such duties, except for paid vacation and other excused absence periods, and shall serve the Company and its
affiliates faithfully and to the best of his ability, and shall use his best efforts to promote the success of the business of the Company. The Executive’s employment is subject to compliance with the Company’s policies, including any code
of conduct, all as may be amended from time to time. 
 Notwithstanding the foregoing, nothing in this Section 2 will prevent the
Executive from 

 
engaging in additional activities in connection with personal investments and community affairs that are not materially inconsistent with the Executive’s duties under this Agreement and that
do not violate Section 6. 
 3. Compensation. 

a. Base Salary. During the Term, the Company shall pay to the Executive an annual base salary (“Base Salary”) of at least
$392,141, less applicable and authorized deductions, subject to review annually for appropriate increases by the Board pursuant to the normal performance review policy for senior level executives. The Base Salary shall be payable in accordance with
the Company’s payroll schedule. 
 b. Annual Bonus. For each calendar year during the Term, the Executive shall be eligible to
earn an annual discretionary bonus (“Annual Bonus”) based upon the level of attainment of performance goals established by the Board. The target level of the Annual Bonus during the period he is serving as Chief Executive Officer, Chief
Commercial Officer, President and Secretary of the Company is 50% of the Executive’s Base Salary (the “Target Bonus”). The Executive’s actual Annual Bonus, if any, will be awarded in the Company’s discretion, and shall be
paid in accordance with the terms and conditions of the Company’s Annual Bonus program. Except as provided in Section 5, in no event will the Executive be eligible to be awarded an Annual Bonus if the Executive is not actively employed by the
Company on, or has given or received notice of termination or resignation prior to, the date on which bonuses for the applicable year are paid to similarly situated employees. In no event will any Annual Bonus be paid later than March 15 of the
calendar year following the calendar year for which the Annual Bonus is earned. The Executive’s receipt of an Annual Bonus in one year does not guarantee receipt of any bonus in any subsequent year. 

c. Equity Compensation. The Executive currently holds outstanding equity awards that remain subject to the terms of the applicable
award agreement evidencing the equity award. The Executive will be eligible to receive equity awards pursuant to the terms of the Valeritas Holdings, Inc. 2016 Incentive Compensation Plan, or successor equity compensation plan, as each may be
amended from time to time (the “Equity Plan”) as determined by the Company in its discretion. All determinations as to eligibility to receive equity awards, as well as the amount of any such equity grants made under the Equity Plan, shall
be made in the Company’s sole discretion, subject to final approval by the Board or its designee. All equity awards shall be subject to the terms of the award agreement evidencing the equity award and the Equity Plan, or other equity plan
pursuant to which the equity award was granted. 
 d. Other Benefits. During the Term, the Executive shall be eligible to participate
in such employee benefit plans, programs or arrangements as are generally made available from time to time to other Company senior executives, to the extent the Executive is eligible under the terms of the plans, programs or arrangements pursuant to
which such benefits are provided. Nothing in this Agreement shall prevent the Company from amending or terminating any Company employee benefit plan, program or arrangement from time to time as the Company deems appropriate. 

e. Paid Time Off. During the Term, the Executive shall accrue a minimum of four (4) weeks paid time off each year, subject to the terms
of the Company’s paid time off policy as in effect from time to time. 

  
 2 

 4. Termination Events. This Agreement, the Executive’s employment with the
Company and its affiliates, and any and all rights of the Executive under this Agreement will terminate (except as otherwise provided in Section 5): 

a. Upon the death of the Executive; 

b. If the Company terminates the Executive due to the Disability (as hereinafter defined) of the Executive, immediately upon notice from the
Company to the Executive; 
 c. For Cause (as hereinafter defined), immediately upon notice from the Company to the Executive, or such later
time as such notice may specify; 
 d. If the Company terminates the Executive without Cause or the Executive resigns for Good Reason (as
hereinafter defined); and 
 e. If the Executive resigns other than for Good Reason. 

The Executive agrees to resign from all officer and director positions with the Company and its affiliates effective upon the Executive’s
termination of employment. 
 For purposes of this Agreement, the Executive will be deemed to have a “Disability” if he is
disabled within the meaning of such term under the Company’s long-term disability plan. 
 For purposes of this Agreement,
“Cause” shall mean the Executive’s (i) misappropriation of funds with respect to the Company or its affiliates, (ii) a material violation of this Agreement or of the employment policies of the Company or an affiliate, as in effect
from time to time, (iii) a breach of any written confidentiality, nonsolicitation or noncompetition covenant with the Company or an affiliate, including but not limited to those set forth in this Agreement, (iv) conviction of a felony, or (v)
misconduct that has a material adverse effect on the business, operations, assets, properties, or financial condition of the Company or an affiliate; provided, however, that to the extent the Board determines to terminate the Executive for
Cause based on violation under clause (ii) or a breach under (iii), the Board shall provide the Executive with ten(10) days’ written notice prior to such a termination for Cause and the Executive shall have an opportunity to cure the applicable
violation or breach, but only to the extent such violation or breach, as applicable, is capable of being cured, as determined by the Board in its sole discretion. 

For purposes of this Agreement, the Executive shall have “Good Reason” if he provides the Company with written notice of his intent to resign within
sixty (60) days after the occurrence of any of the following without the Executive’s written consent: (i) a material diminution in the Executive’s duties, authority or responsibilities relative to the duties, authority or responsibilities
in effect immediately prior to the change such that Executive no longer has the title of, or serves or functions as, Chief Executive Officer of the Company; (ii) the Company requires that the 

  
 3 

 
Executive’s principal office location be moved to a location more than fifty (50) miles from the Executive’s principal office location immediately before the change; (iii) a material
diminution by the Company of the Executive’s Base Salary or Target Bonus; (iv) the Company fails to renew the Agreement, in accordance with Section 1; or (v) any material breach by the Company of this Agreement; provided, however, that the
occurrence of an event described in clauses (i) through (v) of this definition shall not constitute Good Reason if such event is fully corrected in all material respects by the Company within thirty (30) days following the receipt of the
Executive’s written notice of his intent to resign. If the Company fails to cure the event described in clauses (i) through (v) the Executive must actually resign within thirty (30) days following the expiration of the cure period. 

5. Obligations Upon Termination. 

a. By the Company or the Executive for any Reason. If the Executive’s employment is terminated by the Company or the Executive for
any reason, with or without Cause (as defined below), the Executive will have no further rights against the Company or an affiliate hereunder, except as set forth in subsection (b) or (c) below to the extent applicable, and except for the right to
receive any unpaid Base Salary attributable to employment before the termination date and any other payments that have accrued or fully vested but which have not yet been paid prior to such termination. Other than the payments set forth in this
subsection (a) and subsections (b) and (c) below, as applicable, the Executive will not be entitled to receive any other compensation for the calendar year during which the Executive’s termination of employment occurs or any subsequent calendar
period. 
 b. By the Company without Cause or the Executive for Good Reason. If the Executive’s employment is terminated by the
Company without Cause (other than due to death or Disability), or the Executive resigns for Good Reason, and in either case the Executive executes and does not revoke a Release (as defined in subsection (e) below) (a “Qualifying
Termination”), then the Executive will be eligible to receive the benefits set forth in either subsection (i) or (ii) below (but not both). 

(i) Not in Connection with a Change in Control. If the Qualifying Termination occurs prior to the effective date of a Change in
Control (as defined in the Equity Plan) and the Qualifying Termination is not a “Qualifying Pre-Closing Termination” (as defined in subsection (ii) below), or the Qualifying Termination occurs more than twelve (12) months after a Change in
Control (in either case, a “Standard Qualifying Termination”), the Executive shall be entitled to: 
 (1)
continuation of the Executive’s Base Salary (at the salary rate then in effect) for twelve (12) months following the Executive’s employment termination date (the “Severance Period”), in accordance with the Company’s payroll
schedule, commencing on the sixtieth (60th) day after the Executive’s effective date of termination, with the first such installment payment including any unpaid severance payments that would have been made on the normal payroll dates occurring
during the first sixty (60) days following the date of termination; 

  
 4 

 (2) an Annual Bonus for the year in which the Executive’s Qualifying
Termination occurs, subject to achievement of any performance targets or goals applicable to such Annual Bonus and otherwise to the extent that the Company, in its sole discretion, awards bonuses to its executives for the year in which the
termination occurs, and any such Annual Bonus shall be pro-rated to reflect the Executive’s employment with the Company through the date of termination and shall be payable in a lump sum at the same time as other such annual bonuses are payable
to active employees; 
 (3) any Annual Bonus earned but not yet paid for any completed full fiscal year immediately
preceding the employment termination date; and 
 (4) provided that the Executive is eligible for and timely elects COBRA
continuation coverage under the Company’s group health plan, the Company will reimburse the Executive for the monthly COBRA cost of continued coverage under such plan for the Executive, and, where applicable, his spouse and dependents, less the
amount the Executive would have been required to pay for such coverage if the Executive were an active employee of the Company, for the Severance Period, or until the Executive becomes employed by another employer offering any such benefits
(whichever is earlier), provided that the Company reserves the right to restructure the foregoing reimbursement arrangement in any manner necessary or appropriate to avoid fines, penalties or negative tax consequences to the Company or any affiliate
or the Executive (including, without limitation, to avoid any penalty imposed under the Patient Protection and Affordable Care Act or the guidance issued thereunder), as determined by the Company in its sole and absolute discretion. The Executive
agrees to provide the Company with notice of eligibility under another health plan within two (2) weeks of such eligibility. The Executive shall submit appropriate evidence of each such expense within sixty (60) days after his receipt of the invoice
or billing statement for such expense, and the Company shall provide the Executive with the requisite reimbursement on the next payroll date thereafter. The monthly reimbursements described in this clause (4) shall be paid in normal payroll
installments, commencing on the sixtieth (60th) day after the Executive’s effective date of termination. The first such installment payment shall include any unpaid severance payments that would have been made on the normal payroll dates
occurring during the first sixty (60) days following the date of termination. The COBRA health care continuation coverage period under section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”) shall run concurrently with
the Severance Period. 
 (ii) In Connection with a Change in Control. If the Qualifying Termination occurs either (A) within three
months prior to the effective date of a Change in Control but during the “Pre-Closing Period” (as defined below) (a “Qualifying Pre-Closing Termination”), or (B) on the date of, or within twelve (12) months after, the effective
date of a Change in Control (in either case, together with a Qualifying Pre-Closing Termination, a “CIC 

  
 5 

 
Qualifying Termination”), the Executive shall be entitled to the same payments and benefits set forth under Section 5(b)(i) above, except that (1) the Severance Period for purposes of
Sections 5(b)(i)(1) and 5(b)(i)(4) shall extend for eighteen (18) months instead of twelve (12) months and (2) in lieu of the Annual Bonus set forth in Section 5(b)(i)(2), the Executive shall receive the Target Annual Bonus for the year in which the
Executive’s Qualifying Termination occurs, pro-rated to reflect the Executive’s employment with the Company through the date of termination, which shall be payable to the Executive on the sixtieth (60th) day following the Executive’s
employment termination date, provided that if the Change in Control occurs after a Qualifying Termination under Section 5(b)(i) above, but prior to payment of the Annual Bonus for the year in which the Executive’s termination of employment
occurs, the pro-rated Target Annual Bonus described in this subsection (ii) shall be paid on the sixtieth (60th) day following the Change in Control. For the avoidance of doubt, if a Change in Control occurs after a Qualifying Termination under
Section 5(b)(i) above, and after payment of the pro-rated Annual Bonus described in Section 5(b)(i)(2), the Executive shall not be eligible to receive any additional payments for any Annual Bonus, including the Target Annual Bonus described in this
subsection (ii). 
 For purposes of this Agreement, the “Pre-Closing Period” means the period commencing with the Company’s
execution of a definitive agreement for a Change in Control transaction and ending upon the earlier to occur of (A) the closing of the Change in Control contemplated by such definitive agreement and (B) the termination of such definitive agreement
without the consummation of the contemplated Change in Control. 
 (iii) No Duplication of Benefits. Notwithstanding anything to the
contrary, under no circumstances shall the Executive be eligible to receive payments under both subsections (i) and (ii) of this Section 5(b). 

c. Death or Disability. If the Company terminates the Executive’s employment on account of the Executive’s Disability
(subject to the requirements of applicable law) or if the Executive dies while employed by the Company, the Company shall pay the Executive (or the Executive’s estate in the case of death) the Executive’s Base Salary (at the salary rate
then in effect) for three (3) months following the Executive’s termination of employment, in accordance with the Company’s payroll schedule, commencing on the sixtieth (60th) day after the Executive’s effective date of termination,
with the first such installment payment including any unpaid severance payments that would have been made on the normal payroll dates occurring during the first sixty (60) days following the date of termination. Except as provided in subsection (a)
above, the Executive shall not be entitled to any other compensation for the calendar year during which the termination occurs or any subsequent calendar period. 

d. Employee Benefit Plans. The Executive’s accrual of or participation in plans providing for benefits will cease on the effective
date of the Executive’s termination of employment and the Executive will be entitled to accrued benefits pursuant to such plans only as provided in such plans. The Executive will not receive, as part of his termination pay pursuant to this
Section 5, any payment or other compensation for any vacation, holiday, sick leave or other leave unused on the effective date of termination of the Executive’s employment pursuant to this Agreement, except to the extent required to be paid by
applicable law. 

  
 6 

 e. Release Requirement. The Company will be obligated to provide the severance benefits
set forth in this Section 5 (except in the case of death) only if the Executive executes and does not revoke a complete release of any and all claims that the Executive may have against the Company and its affiliates, substantially in the form
attached hereto as Exhibit A, with such changes as are required to comply with applicable law at the time of the Executive’s termination of employment or as reasonably determined by Company counsel to be necessary or appropriate (the
“Release”). Such Release shall become effective upon the expiration of the revocation period contemplated thereby, as long as the Executive does not revoke the Release during such revocation period. Notwithstanding anything to the
contrary, if the Release is not effective as of the scheduled payment date for the Executive’s receipt of the payments and/or benefits set forth in this Section 5 (other than subsection (a)) (e.g., on the sixtieth (60th) day following the
Executive’s termination date), the Executive will forfeit such payments and/or benefits. 
 f. Code section 280G.
Notwithstanding anything to the contrary, if any severance payment under this Section 5, either alone or together with any other payment which the Executive has received or has the right to receive from the Company or an affiliate (“Total
Payments”), would otherwise exceed the amount (the “Safe Harbor Amount”) that could be received by the Executive without the imposition of an excise tax under section 4999 of the Code, then the Total Payments shall be reduced to the
extent, and only to the extent, necessary to assure that their aggregate present value, as determined in accordance the applicable provisions of section 280G of the Code and the regulations thereunder, does not exceed the greater of the following
dollar amounts: (i) the Safe Harbor Amount, or (ii) the greatest after-tax amount payable to the Executive after taking into account any excise tax imposed under section 4999 of the Code on the Total Payments. The Company shall pay all of the fees,
including legal and accounting fees, associated with calculating the amounts set forth in this subsection (f). 
 6. Covenant Not to
Compete; Non-Disclosure of Information; Invention Assignment; Return of Company Property. 
 a. Covenant Not to Compete/Not to
Solicit. The Executive acknowledges and recognizes that the Company operates in a competitive field and that confidential information concerning its business operations is a substantial asset that was acquired through considerable time, money
and effort. Accordingly, in consideration of the execution of this Agreement, the Executive agrees to the following: 
 (i) During the
Restricted Period (as defined below) and within the Restricted Area (as defined below), the Executive will not, individually or in conjunction with others, directly or indirectly, engage in any activities with a Competitive Business (as defined
below), whether as an officer, director, proprietor, employer, partner, independent contractor, active investor, consultant, advisor or agent, except in connection with the Executive’s responsibilities as an employee of the Company or an
affiliate. 

  
 7 

 (ii) During the Restricted Period, the Executive will not, directly or indirectly, compete with
the Company by soliciting, inducing or influencing any Company Clients (as defined below) to discontinue or reduce the extent of such relationship with the Company. 

(iii) During the Restricted Period, the Executive will not (1) directly or indirectly recruit, solicit or otherwise influence any employee or
agent of the Company to discontinue such employment or agency relationship with the Company, or (2) employ or seek to employ, or cause or permit any Competitive Business to employ or seek to employ for any Competitive Business any person who is then
(or was at any time within one (1) year prior to the date the Executive or the Competitive Business employs or seeks to employ such person) employed by the Company. 

(iv) During the Restricted Period, the Executive will not interfere with, or disrupt or attempt to disrupt any relationship, contractual or
otherwise, between the Company and any Company Clients, customer, employee or agent of the Company. 
 b. Non-Disclosure of
Information. The Executive acknowledges that the Company’s trade secrets, private or secret processes, methods and ideas, as they exist from time to time, customer lists and other confidential information concerning the Company’s
products, services, training methods, development, technical information, marketing activities and procedures, credit and financial data concerning the Company and/or the Company’s Clients (the “Proprietary Information”) are valuable,
special and unique assets of the Company, access to and knowledge of which are essential to the performance of the Executive hereunder. In light of the highly competitive nature of the industry in which the Company’s business is conducted, the
Executive agrees that all Proprietary Information, heretofore or in the future obtained by the Executive as a result of the Executive’s association with the Company shall be considered confidential. 

In recognition of this fact, the Executive agrees that the Executive will not use or disclose any of such Proprietary Information for the
Executive’s own purposes or for the benefit of any person or other entity or organization (except the Company) under any circumstances, except as set forth in Section 6.1 below, unless such Proprietary Information has been publicly disclosed
generally or, unless upon written advice of legal counsel reasonably satisfactory to the Company, the Executive is legally required to disclose such Proprietary Information. Documents (as defined below) prepared by the Executive or that come into
the Executive’s possession during the Executive’s association with the Company that include Proprietary Information are and will remain the property of the Company, and when this Agreement terminates, such Documents shall be returned to
the Company at the Company’s principal place of business, as provided in the Notice provision (Section 10.f) of this Agreement or destroyed. 

c. Documents. “Documents” shall mean all original written, recorded, or graphic matters whatsoever, and any and all copies
thereof, including, but not limited to: papers; books; records; tangible things; correspondence; communications; telex messages; memoranda; work-papers; reports; affidavits; statements; summaries; analyses; evaluations; customer mailing lists;
client records and information; agreements; agendas; advertisements; instructions; charges; manuals; brochures; publications; directories; industry lists; schedules; price lists; client lists; 

  
 8 

 
statistical records; training manuals; computer printouts; books of account, records and invoices reflecting business operations; all things similar to any of the foregoing however denominated.
In all cases where originals are not available, the term “Documents” shall also mean identical copies of original documents or non-identical copies thereof. 

d. Company’s Clients. The “Company’s Clients” shall be any person or entity for whom the Company has a contractual
relationship, including, but not limited to, any person or entity which has entered into any contract for the distribution of any of the Company’s products within one (1) year immediately preceding the date Executive’s employment with the
Company terminates. 
 e. Restricted Period. The “Restricted Period” shall be at all times during the Executive’s
employment with the Company, and shall extend for twelve (12) months following the Executive’s termination of employment if such termination is a Standard Qualifying Termination, or for eighteen (18) months following the Executive’s
termination of employment if such termination is a CIC Qualifying Termination, provided, however, that the Restricted Period shall be extended by any period of time during which the Executive is in breach of the covenants set forth in this Section
6. The periods of time during which the Executive is in violation of the covenants set forth in this Section 6 shall be in addition to the Restricted Period specified herein. 

f. Restricted Area. The “Restricted Area” shall mean any geographic area in which the Company actively did business within
the twelve (12) months preceding the Executive’s termination of employment or which the Company planned to conduct business during that same period. 

g. Competitive Business. “Competitive Business” shall mean a company that is in any stage of research, development or
commercialization of a patch, pump or other extended insulin release device or mechanism primarily targeted to diabetic patients. Notwithstanding the foregoing, the following activities will not be prohibited “Competitive Business”
activities: (i) a passive investment of up to five percent (5%) of the outstanding stock of a publicly held corporation regardless of whether such corporation engages in a Competitive Business; (ii) providing investment banking services on behalf of
an investment banking firm regardless of whether or not such firm is providing services to an entity engaged in a Competitive Business; or (iii) the Executive commencing employment with any entity that engages in both Competitive Business activities
and activities which are not Competitive Business activities so long as the Executive provides services to such entity with respect to non-Competitive Business activities and does not engage in Competitive Business activities. 

h. Covenants as Essential Elements of this Agreement. It is understood by and between the parties hereto that the foregoing covenants
contained in Sections 6(a) and 6(b) are essential elements of this Agreement, and that but for the agreement by the Executive to comply with such covenants, the Company would not have agreed to enter into this Agreement. Such covenants by the
Executive shall be construed to be agreements independent of any other provisions of this Agreement. 

  
 9 

 i. Company Includes. For purposes of this Agreement, the Company shall include the
Company, and any parent and any direct and indirect subsidiaries and affiliates (as defined in Rule 501 under the Securities Act of 1933). 

j. Invention Assignment. The Executive agrees that all inventions, including, but not limited to, improvements, and all know-how,
processes, techniques, formulas, ideas, circuits, designs, trademarks, trade secrets and copyrightable works (collectively, “Inventions”) which result from work performed by the Executive on behalf of the Company or from access to
Proprietary Information shall be the property solely of the Company. The Executive agrees, both during and after employment with the Company, to disclose promptly and in writing, to the Company, all Inventions that the Executive, either solely or
jointly with others, make, author, discover, develop, conceive and/or reduce to practice derived from Proprietary Information. The Executive hereby assigns and agrees to assign to the Company or its designee, without further consideration, his
entire right and interest in and to all Inventions, including all rights to obtain, register and enforce patents, copyrights, mask work rights and other intellectual property protection for Inventions. The Executive agrees to execute all documents
reasonably necessary to perfect such intellectual property rights and the assignment of those rights to the Company or its designee. The Executive further agrees to assist the Company (at the Company’s expense), both during and after employment
with the Company, in obtaining, protecting and/or enforcing patents, copyrights or other forms of Inventions. 
 k. Return of Company
Property. Upon termination of the Executive’s employment with the Company for any reason whatsoever, voluntarily or involuntarily (and in all events within five (5) days of the Executive’s effective date of termination), and at any
earlier time the Company requests, the Executive will deliver to the person designated by the Company all originals and copies of all documents and property of the Company in the Executive’s possession, under the Executive’s control or to
which the Executive may have access. The Executive will not reproduce or appropriate for the Executive’s own use, or for the use of others, any property, Proprietary Information or Inventions, and shall remove from any personal computing or
communications equipment all information relating to the Company. 
 1. Permitted Conduct. Nothing in this Agreement restricts or
prohibits the Executive from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim
or assisting with an investigation directly with a self-regulatory authority or a government agency or entity, including the U.S. Equal Employment Opportunity Commission (“EEOC”), the Department of Labor (“DOL”), the National
Labor Relations Board (“NLRB”), the Department of Justice (“DOJ”), the Securities and Exchange Commission (“SEC”), the Congress, and any agency Inspector General (collectively, the “Regulators”), or from
making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation. The Executive does not need the prior authorization of the Company to engage in such communications with the Regulators, respond to
such inquiries from the Regulators, provide confidential information or documents to the Regulators, or make any such reports or disclosures to the Regulators. The Executive is not required to notify the Company that the Executive has engaged in
such communications with the Regulators. 

  
 10 

 7. Covenants to Survive this Agreement. The covenants of the Executive contained in
Section 6(b) hereof shall survive the termination of the Executive’s employment for any reason and the expiration or termination of this Agreement or any part thereof without regard to the reason therefor. The covenants of the Executive
contained in Section 6(a) hereof shall survive the termination of the Executive’s employment for any reason and the expiration or termination of this Agreement or any part thereof, except as otherwise expressly provided in this Agreement. Both
parties hereby expressly agree and contract that it is not the intention of either party to violate any public policy or any statutory or common law, and that if any sentence, paragraph, clause or combination of the same of Section 6 (including any
provisions incorporated by reference) is in violation of the law of any state where applicable, such sentence, paragraph, clause, or combination of the same shall be void in the jurisdictions where it is unlawful, and the remainder of such paragraph
and this Agreement shall remain binding on the parties hereto. It is the intention of both parties to make the covenants of Section 6 binding only to the extent that it may be lawfully done under existing applicable laws. In the event that any part
of any covenant of Section 6 is determined by a court of law to be overly broad thereby making the covenant unenforceable, the parties hereto agree, and it is their desire, that such court shall substitute a reasonable, judicially enforceable
limitation in place of the offensive part of the covenant and as so modified the covenant shall be as fully enforceable as set forth herein by the parties themselves in the modified form. 

8. Injunctive Relief, an Additional Remedy. The Executive acknowledges that the injury that would be suffered by the Company as
a result of breach of the provisions of Section 6 would be irreparable and that an award of monetary damages to the Company for such breach would be an inadequate remedy. Consequently, the Company will have the right in addition to any other rights
it may have, to obtain injunctive relief to restrain any breach or threatened breach or otherwise to specifically enforce any provision of this Agreement and the Company will not be obligated to post bond or the security in seeking such relief.
Without limiting the Company’s rights under this Section or any other remedies of the Company, if the Executive breaches any provisions of Section 6, and the Company obtains an injunction or final judgment that Executive has violated Section 6,
the Company will have the right to cease making any payments otherwise to the Executive under this Agreement. 
 9.
Withholding. Anything to the contrary notwithstanding, all payments required to be made by the Company hereunder to the Executive or the Executive’s estate or beneficiaries shall be subject to the withholding of such amounts, if
any, relating to tax and other payroll deductions as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts, the Company may accept other arrangements pursuant to
which it is satisfied that such tax and other payroll obligations will be satisfied in a manner complying with applicable law or regulation. 

  
 11 

 10. Miscellaneous. 

a. Executive Representations. The Executive hereby represents and warrants to the Company that he is not subject to, or a party to, any
employment agreement, non-competition covenant, non-disclosure agreement or other agreement, covenant, understanding or restriction of any nature whatsoever which would prohibit the Executive from executing this Agreement and performing fully his
duties and responsibilities hereunder, or which would in any manner, directly or indirectly, limit or affect the duties and responsibilities which may now or in the future be assigned to the Executive by the Company. Further, the Company expects the
Executive not to, and the Executive hereby acknowledges that he shall not, use any proprietary or confidential information of any prior employer in the performance of his duties. 

b. Governing Law. The validity, construction, interpretation and enforceability of this Agreement and the capacity of the parties shall
be determined and governed by the laws of the State of New Jersey without regard to conflicts of law. 
 c. Jurisdiction and Service of
Process. Any legal action or proceeding with respect to this Agreement shall be brought in the courts of the State of New Jersey or of the United States of America for the District of New Jersey. By execution and delivery of this Agreement, each
of the parties hereto accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts. Each of the parties hereto irrevocably consents to the service of process of any of the aforesaid
courts in any such action or proceeding by mailing copies thereof by certified mail, postage prepaid, to the party at its address set forth in subsection (f). THE PARTIES IRREVOCABLY WAIVE ANY RIGHT TO TRIAL BY JURY TO ALL CLAIMS HEREUNDER. 

d. Assignment. This Agreement and any rights and benefits hereunder shall inure to the benefit of and be enforceable by the
Executive’s legal representatives, heirs or legatees. This Agreement and any rights and benefits hereunder shall inure to the benefit of and be binding upon the Company and its successors and assigns. This Agreement is personal to each of the
parties hereto, and neither party may assign or delegate any of the rights or obligations hereunder without first obtaining a written consent of the other party, except the Company may assign this Agreement without the Executive’s consent
provided that the Company merges with, or transfers all or substantially all of the Company’s assets to, a transferee or surviving company that agrees to assume this Agreement in its entirety, without modification or amendment. 

e. Collateral Agreements. This Agreement constitutes the entire Agreement between the parties respecting the employment of the
Executive, and supersedes any and all prior agreements and understandings concerning the terms and conditions of the Executive’s employment by the Company or an affiliate, including the Original Agreement, and there are no representations,
warranties or commitments relating to such employment, except as set forth or referred to herein, provided that, notwithstanding the foregoing, the Employee Confidentiality and Inventions Agreement between the Executive and the Company shall remain
in full force and effect. This Agreement may be amended only by an instrument in writing executed by the parties hereto. For the avoidance of doubt, this Agreement shall not supersede any award agreement between the Executive and the Company or an
affiliate evidencing outstanding equity awards. 

  
 12 

 f. Notices. Any notice, request, demand or other communication hereunder shall be in
writing and shall be deemed duly given when personally delivered to an officer of the Company or to the Executive, as the case may be, or when delivered by national next-business day delivery service or certified mail at the following addresses:

 If to the Company: 

Valeritas, Inc. 
 750 Route 202
South, Suite 600 
 Bridgewater, NJ 08807 

Attention: Human Resources 
 If
to the Executive: 
 8 Old Bam Court 

Newtown, PA 18940 
 g.
Counterparts. This Agreement may be executed in any number of counterparts. All executed counterparts shall constitute one Agreement notwithstanding that all signatories are not signatories to the original or the same counterpart. 

h. Mitigation. The Executive shall not be required to mitigate the amount of any payments and/or benefits under this Agreement by
seeking other employment or otherwise. The payments and/or benefits to be provided pursuant to Section 5 shall not be reduced by any compensation or benefits payable or provided to the Executive as a result of employment by another employer after
the date of termination or otherwise. 
 i. Waiver of Breach. No delay or omission by a party in exercising any right, remedy or
power under this Agreement or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by such party from time to time and as often as may be deemed expedient or necessary by such
party in its sole discretion. 
 j. Application of Section of 409A of the Internal Revenue Code. 

(i) This Agreement is intended to comply with the requirements of section 409A of the Code and its corresponding regulations (“Section
409A”), and shall in all respects be administered in accordance with Section 409A. Notwithstanding anything in this Agreement to the contrary, distributions may only be made under this Agreement upon an event and in a manner permitted by
Section 409A or an applicable exemption. Severance benefits provided under this Agreement are intended to be exempt from Section 409A under the “separation pay exception” to the maximum extent applicable. Further, any payments that qualify
for the “short-term deferral” exception or another exception under Section 409A shall be paid under the applicable exception. For purposes of Section 409A, all payments to be made 

  
 13 

 
upon a termination of employment under this Agreement may only be made upon the Executive’s “separation from service” (within the meaning of such term under Section 409A), each
payment made under this Agreement shall be treated as a separate payment, and the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments. In no event shall the Executive, directly
or indirectly, designate the fiscal year of payment, except as permitted under Section 409A. Notwithstanding any provision of this Agreement to the contrary, in no event shall the timing of the Executive’s execution of the Release, directly or
indirectly, result in the Executive designating the calendar year of payment, and if a payment that is subject to execution of the Release could be made in more than one taxable year, payment shall be made in the later taxable year. The Executive
will be solely responsible for any tax imposed under Section 409A and in no event will the Company have any liability with respect to any tax, interest or other penalty imposed under Section 409A. 

(ii) Notwithstanding anything herein to the contrary, if, at the time of the Executive’s termination of employment with the Company, the
Executive is a “specified employee” (as such term is defined in Section 409A) and it is necessary to postpone the commencement of any payments or benefits otherwise payable under this Agreement as a result of such termination of employment
to prevent any accelerated or additional tax under Section 409A, then the Company shall postpone the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or
provided to the Executive) that are not otherwise paid within the ‘short-term deferral exception’ under Treas. Reg. section 1.409A-1(b)(4), and the ‘separation pay exception’ under Treas. Reg. section 1.409A-1(b)(9)(iii), until
the first payroll date that occurs after the date that is six months following the Executive’s “separation of service” (as such term is defined under Section 409A) with the Company. If any payments are postponed due to such
requirements, such postponed amounts shall be paid in a lump sum to the Executive on the first payroll date that occurs after the date that is six (6) months following Executive’s separation of service with the Company. If the Executive dies
during the postponement period prior to the payment of postponed amount, the amounts withheld on account of Section 409A shall be paid to the personal representative of the Executive’s estate within sixty (60) days after the date of the
Executive’s death. 
 (iii) All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in
accordance with the requirements of Section 409A, including, where applicable, the requirement that (1) any reimbursement shall be for expenses incurred during the Executive’s lifetime (or during a shorter period of time specified in this
Agreement), (2) the amount of expenses eligible for reimbursement, or in kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in kind benefits to be provided, in any other calendar year, (3) the
reimbursement of an eligible expense shall be made on or before the last day of the calendar year following the year in which the expense is incurred and (4) the right to reimbursement or in kind benefits is not subject to liquidation or exchange
for another benefit. 
 [SIGNATURE PAGE FOLLOWS] 

  
 14 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the
day and year first written above, 
  

			
	COMPANY:
	
	Valeritas, Inc.
		
	By:	 	

		
	Name:	 	Lüke Duster
		
	Its:	 	Chairman of the Board of Directors
	
	EXECUTIVE:
	
	

	John Timberlake

 SIGNATURE PAGE TO EMPLOYMENT AGREEMENT 

OF JOHN TIMBERLAKE 

  
 15 

 EXHIBIT A 

RELEASE AND WAIVER OF CLAIMS 

In consideration of the benefits and mutual agreements set forth in the Employment Agreement, effective as of May 3, 2016 (the
“Agreement”), between Valeritas, Inc. (the “Company”) and [                    ] (the “Executive”), to which this form
is attached, the 
 Executive, intending to be legally bound, agrees to the terms and conditions set forth in this Release and Waiver of
Claims (the “Release and Waiver”). 
 1. In exchange for the consideration provided to the Executive by the Agreement that the
Executive is not entitled to receive absent the Agreement, including but not limited to the applicable severance consideration set forth in Section 5 of the Agreement, and the other commitments of the Company in the Agreement and in Paragraph 3 of
the Release and Waiver, the Executive and his or her heirs, representatives, agents and attorneys hereby generally and completely, subject to the provisions set forth below in Paragraph 2, releases the Company and any of its predecessors,
successors, parents, affiliated or subsidiary companies, and its or their present or former officers, directors, agents, members of the Board of Directors, representatives or employees, and the various Company benefit plans, committees, trustees,
fiduciaries, trusts and their respective successors and assigns, heirs, executors and personal or legal representatives (collectively referred to as the “Releasees”) from any and all claims or causes of action the Executive may have or
claim to have against the Releasees including any claims arising out of or relating in any way to the Executive’s employment with the Company and/or the termination of such employment. In waiving and releasing any and all claims against the
Releasees, whether or not now known to the Executive, the Executive understands that this means that if the Executive later discovers facts different from or in addition to those facts currently known by the Executive, or believed by the Executive
to be true, the waivers and releases of this Release and Waiver will remain effective in all respects – despite such different or additional facts and the Executive’s later discovery of such facts, even if the Executive would not have
signed this Release and Waiver if the Executive had prior knowledge of such facts. The claims released include, but are not limited to: 

(a) all claims for monetary damages arising under Title VII of the Civil Rights Act of 1964 (as amended), Sections 1981 through 1988 of Title
42 of the United States Code (as amended), the Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the Older Workers Benefit Protection Act of 1990 (“OWBPA”), and the Americans with Disabilities Act of 1990 (as
amended); 
 (b) any and all other claims, including but not limited to claims brought under the Rehabilitation Act, the Executive
Retirement Income Security Act of 1974 (as amended), the Uniformed Services Employment and Reemployment Rights Act of 1994, the National Labor Relations Act (as amended), the Federal Worker Adjustment and Retraining Notification Act (as amended),
the Family and Medical Leave Act of 1993, the Occupational Safety and Health Act (as amended), the Equal Pay Act (as amended), the Labor Management Relations Act, New Jersey Law Against Discrimination, New Jersey Equal Pay Act, New Jersey Civil
Rights Law, New Jersey Conscientious Employee Protection Act, New Jersey Family Leave Act, New Jersey Wage and Hour Law, New Jersey WARN Laws, and the New Jersey Constitution; 

  
 16 

 (c) all claims arising under any Executive Order or derived from or based upon any state or
federal regulations; 
 (d) all common law claims, including but not limited to any and all rights to discovery, claims for wrongful
discharge, constructive discharge, violation of public policy, breach of an express or implied contract, breach of an implied covenant of good faith and fair dealing, negligent or intentional infliction of emotional distress, defamation, conspiracy,
tortious interference with contract or prospective economic advantage, promissory estoppel, equitable estoppel, fraud, misrepresentation, detrimental reliance, retaliation, and negligence; 

(e) all claims for personal injury, including physical injury, mental anguish, emotional distress, pain and suffering, embarrassment,
humiliation, damage to name or reputation, interest, liquidated damages, and punitive damages; and 
 (f) all claims for costs, interest,
and attorneys’ fees. 
 2. Paragraph 1 shall not apply to any claims the Executive may have with respect to the Company’s
severance obligations under Section 5 of the Agreement, any rights the Executive may have with respect to outstanding equity interests in the Company, rights to indemnification under the Company’s by-laws or otherwise, or any rights to recover
under any director and officer liability insurance policy maintained by the Company for the benefit of the Executive in accordance with the terms of such director and officer liability insurance policy. In addition, Paragraph 1 shall in no event
apply to any claims that, as a matter of applicable law, are not waivable, the Executive’s right to vested benefits under the written terms of the Company’s 401(k) Plan, claims for unemployment or workers’ compensation benefits, any
medical claim incurred during the Executive’s employment that is payable under applicable medical plans or an employer-insured liability plan, or claims arising after the date on which the Executive signs the Release and Waiver. The Executive
and the Company agree that nothing in this Release and Waiver restricts or prohibits the Executive from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential information to,
reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or a government agency or entity, including the U.S. Equal Employment Opportunity Commission
(“EEOC”), the Department of Labor (“DOL”), the National Labor Relations Board (“NLRB”), the Department of Justice (“DOJ”), the Securities and Exchange Commission (”SEC”), the Congress, and any agency
Inspector General (collectively, the “Regulators”), or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation. However, the Executive is waiving the Executive’s right
to receive any individual monetary relief resulting from such claims, regardless of whether the Executive or another party has filed them, and in the event the Executive obtains such monetary relief the Company will be entitled to an offset for the
payments made pursuant to Section 5 of the Agreement, except where such limitations are prohibited as a matter of law (e.g., under the Sarbanes-Oxley Act of 2002, 18 U.S.C.A. §§ 1514A). The Executive does not need the prior authorization
of the Company to engage in such communications with the Regulators, respond to such inquiries from the Regulators, provide confidential information or documents to the Regulators, or make any such reports or disclosures to the Regulators. The
Executive is not required to notify the Company that the Executive has engaged in such communications with the Regulators. 

  
 17 

 3. The Company, for and in consideration of the undertakings of the Executive set forth herein,
and intending to be legally bound, do hereby remise, release and forever discharge the Executive of and from any and all actions and causes of actions, suits, debts, claims and demands whatsoever in law or in equity, which the Company ever had, now
have, or which the Company may have, by reason of any matter, cause or thing whatsoever, from the beginning of the Executive’s employment with the Company and its affiliates up to and including the date of this Release and Waiver, arising from
or relating to any and all acts, events and omissions relating to the Executive’s employment with the Company, the termination of his employment relationship with the Company and its affiliates, or his service or status as (one or more of) an
agent, officer, director and/or employee of the Company and its affiliates, including, but not limited to, any claims, whether known or unknown, which have been asserted, could have been asserted or could be asserted now or in the future, including
any claims under any federal, state or local laws (“Released Claims”). Without limiting the foregoing, and subject to the last sentence of this Paragraph 3, Released Claims will not include any claims arising from the willful misconduct,
misrepresentation or fraud of the Executive, or any breach of any prior agreements between the Executive and the Company that impose non-competition, non-solicitation, confidentiality and/or nondisclosure obligations upon the Executive. The Company
shall not initiate or cause to be initiated against the Executive any lawsuit, compliance review, administrative claim, investigation or proceedings of any kind which pertain in any manner to the Released Claims. Notwithstanding the provisions of
Paragraph 1, the Executive shall continue to be indemnified and held harmless by the Company, from any liability, costs or obligations with respect to any and all actions and causes of actions, suits, debts, claims and demands whatsoever in law or
in equity (including, without limitation, any reasonable attorney fees or other charges incurred in defending same) to the maximum extent permitted under the applicable state law of the state in which the Company is incorporated and any policies of
insurance then in effect, limited only to the extent of any limit, from time to time, for current officers and directors of the Company. 

4. The Executive agrees that the Executive will not apply for, nor otherwise seek or accept, employment or re-employment with the Company or
any of its related or successor companies, and the Executive forever releases and discharges the Company and its related or successor companies from any obligation to consider the Executive for employment or re-employment in any capacity. 

5. The Executive acknowledges that, subject to the provisions set forth in Paragraph 2, any prior agreements between the Executive and the
Company that impose non-competition, non-solicitation, confidentiality and/or nondisclosure obligations upon the Executive shall remain in force and effect. 

6. The Executive acknowledges that the Executive has received all amounts due from the Company through the Executive’s termination of
employment, including but not limited to all wages earned and payment for all accrued but unused paid vacation time. No other amounts are due to the Executive from the Company except pursuant to Section 5 of the 

  
 18 

 
Agreement (to the extent applicable). The Executive also represents that there are no existing claims, charges, or complaints filed by the Executive against the Releasees in any federal, state or
local court or administrative agency. 
 7. The Executive acknowledges that the only consideration the Executive has received for signing
this Release and Waiver is that set forth herein and in the Agreement. No other promise, inducement, threat, agreement or understanding of any kind or description has been made with or to the Executive to cause the Executive to enter into this
Release and Waiver. The Executive further acknowledges that the consideration the Executive is receiving from the Company through this Release and Waiver and the Agreement is greater than any amount the Executive would otherwise be entitled to from
the Company. 
 8. The Executive understands that the Executive has been given a period of twenty- one (21) calendar days to review and
consider this Release and Waiver before signing it. The Executive also understands that the Executive is free to use as much of the twenty-one (21) day period as the Executive wishes or considers necessary before deciding to sign this Release and
Waiver, provided, however, that the Executive may not sign this Release and Waiver before the Executive’s termination of employment. Changes to the Company’s offer contained in this Release and Waiver that are immaterial will not restart
the twenty-one (21) day consideration period. [To be modified if termination occurs pursuant to a group termination program to reflect 45 day required consideration period and disclosures about the decisional unit, the eligibility factors for
selection for termination, and the ages and job titles of employees who were and who were not selected for termination and offered consideration for signing a release.] 

9. The Executive may revoke this Release and Waiver within seven (7) calendar days of signing it by delivering written notice of revocation to
                     at                     . If
the Executive has not revoked this Release and Waiver within that seven (7) day period, it becomes effective immediately on the eighth day after the Executive signs the Release and Waiver. 

10. The Company hereby advises the Executive to consult with an attorney. The Executive agrees that the Executive has had the opportunity to
review this Release and Waiver with an attorney, that the Company recommends that the Executive review this Release and Waiver with an attorney and that the Executive fully understands the terms and conditions of this Release and Waiver. The
Executive further acknowledges that the Executive accepts the terms of this Release and Waiver and enters into it freely, voluntarily, and without duress or coercion. 

11. Should any provision of this Release and Waiver be declared or determined by any Court of competent jurisdiction to be illegal, invalid or
unenforceable (except for Paragraph 1), the legality, validity and enforceability of the remaining parts, terms or provisions shall not be affected thereby and the illegal, unenforceable or invalid part, term or provisions shall be deemed not to be
part of this Release and Waiver. 
 12. This Release and Waiver shall be governed by New Jersey law, and the Courts of New Jersey, either
federal or state, shall have jurisdiction over, and be the proper venue for, any disputes arising out of this Release and Waiver. 

  
 19 

 I ACKNOWLEDGE THAT I HAVE CAREFULLY READ THIS RELEASE AND WAIVER OF CLAIMS AND UNDERSTAND ALL OF ITS TERMS,
INCLUDING THE FULL AND FINAL RELEASE AND WAIVER OF CLAIMS SET FORTH ABOVE. I FURTHER ACKNOWLEDGE THAT I HAVE VOLUNTARILY ENTERED INTO THIS RELEASE AND WAIVER OF CLAIMS, THAT I HAVE NOT RELIED UPON ANY REPRESENTATION OR STATEMENT, WRITTEN OR ORAL,
NOT SET FORTH IN THIS RELEASE AND WAIVER OF CLAIMS AND THAT I HAVE BEEN GIVEN THE OPPORTUNITY AND BEEN ENCOURAGED TO HAVE THIS RELEASE AND WAIVER OF CLAIMS REVIEWED BY AN ATTORNEY. 

 

					
	  
	 		 	  

			
	Name: [                    ]	 		 	On behalf of Valeritas
			
	Date:	 		 	Name:
			
		 		 	Title:
			
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