Document:

Exhibit 10.1

 

	Execution Copy	CONFIDENTIAL
    TREATMENT HAS BEEN REQUESTED BY
	 	CYNAPSUS THERAPEUTICS INC.

 

Portions herein
identified by [**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange
Act of 1934, as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

LICENSE AGREEMENT

 

by and
between

 

MONOSOL
RX, LLC

 

and

 

cynapsus
THERAPEUTICS INC.

 

Dated as
of April 1, 2016

 

     

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

LICENSE
AGREEMENT

 

This
LICENSE AGREEMENT (together with any Schedules hereto, this “Agreement”) is entered into as of April 1, 2016
(the “Effective Date”) by and between MonoSol Rx, LLC, a Delaware limited liability company (“Licensor”),
and Cynapsus Therapeutics Inc., a Canadian corporation (“Licensee”). Licensor and Licensee are sometimes referred
to hereinafter individually as a “Party” and collectively as the “Parties.”

 

RECITALS:

 

A.          Licensor
owns patented and trade secret proprietary technology related to film-based drug delivery systems which includes orally soluble
film strips containing active pharmaceutical ingredients.

 

B.          Licensee
owns patented technology related to the film based drug delivery of the active pharmaceutical ingredient, Apomorphine, and desires
to develop and commercialize a sublingual film product in the Territory (as defined below) containing Apomorphine.

 

C.          Licensee
wishes to obtain an exclusive right and license under the Licensed Patents (as defined below) in connection with the development
and commercialization of the Product (as defined below) in the Field (as defined below) in the Territory and Licensor desires
to grant such an exclusive right to Licensee, pursuant to the terms and subject to the conditions set forth in this Agreement.

 

D.          In
consideration of the mutual representations, warranties and covenants contained herein, the Parties agree as follows:

 

SECTION 1.
INTERPRETATION AND CONSTRUCTION; DEFINITIONS

 

1.1          Certain
Definitions. As used herein, the following terms shall have the following meanings:

 

1.1.1           “505(b)(2)
NDA” means a new drug application submitted pursuant to the requirements of the FDA under 21 U.S.C. § 355(b)(2)
of the Act, and any equivalent application submitted in any country in the Territory pursuant to any similar abbreviated route
of approval together, in each case, with all additions, deletion or supplements thereto.

 

1.1.2           “Act”
means, as applicable, the United States Federal Food, Drug, and Cosmetic Act of 1938, as amended (21 U.S.C. §§ 301
et seq.).

 

     

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

1.1.3           “Affiliate”
of a Person means any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by
or is under common control with such first Person. As used in this definition of Affiliate, “control” and, with correlative
meanings, the terms “controlled by” and “under common control with,” shall mean to possess
the power to direct the management or policies of a Person, whether through: (a) direct or indirect beneficial ownership
of fifty percent (50%) or more of the voting interest in such entity; (b) the right to appoint fifty percent (50%) or more
of the directors of such entity; or (c) by contract or otherwise. The Parties acknowledge and agree that under no circumstances
shall the term “Affiliate” as defined herein mean as to either Party, for any purpose, any (i) Venture Entity
having, directly or indirectly, an interest in or controlling, alone or with others, such Party, or (ii) other Persons in
which such Venture Entity have an interest or are controlled by, controlling or are under common control with such Person, unless
such Party directly possesses the power to control and direct management of such other Persons.

 

1.1.4           “Agreement”
has the meaning set forth in the Preamble of this Agreement.

 

1.1.5           “ANDA”
means an abbreviated new drug application submitted pursuant to the requirements of the FDA under 21 U.S.C. § 355(j) of the
Act, and any equivalent application submitted in any country in the Territory pursuant to any similar abbreviated route of approval
together, in each case, with all additions, deletions or supplements thereto.

 

1.1.6           “API”
means the active pharmaceutical ingredient Apomorphine and any salts, prodrugs, derivatives and analogues thereof alone or in
combination with any antiemetic.

 

1.1.7           “Applicable
Law” means all laws, rules and regulations, including any rules, regulations, guidelines, or other requirements of Regulatory
Authorities, applicable to the Development, Commercialization or Supply of the Product, as the case may be, that may be in effect
from time to time in any country in the Territory.

 

1.1.8           
“Bankruptcy Event” means the occurrence of any of the following with respect to a Party: (a) such Party files
in any court or agency, pursuant to any statute or regulation of any state or country, a petition in bankruptcy or insolvency
or for reorganization (except for the purposes of a bona fide amalgamation or other reorganization); (b) such Party files for
an arrangement or for the appointment of a receiver or trustee of such Party or of its assets; (c) such Party is served with an
involuntary petition against it, filed in any insolvency proceeding, and such petition is not be dismissed within sixty (60) days
after the filing thereof; or (d) such Party is dissolved or liquidated, or (e) such Party shall make an assignment for the benefit
of its creditors.

 

    	2

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

1.1.9           “Business
Combination” means, with respect to a Party: (a) a transaction or series of related transactions that results in the
sale or other disposition of all or substantially all of such Party’s assets which relate to this Agreement; or (b) a merger
or consolidation in which such Party is not the surviving corporation or in which, if such Party is the surviving corporation,
the shareholders of such Party immediately prior to the consummation of such merger or consolidation do not, immediately after
consummation of such merger or consolidation, possess, directly or indirectly through one or more intermediaries, a majority of
the voting power of all of the surviving entity’s outstanding stock and other securities and the power to elect a majority
of the members of such Part’s board of directors; or (c) a transaction or series of related transactions if the shareholders
of such Party immediately prior to the initial such transaction do not, immediately after consummation of such transaction or
any of such related transactions, own, directly or indirectly through one or more intermediaries, stock or other securities of
the entity that possess a majority of the voting power of all of such Party’s outstanding stock and other securities and
the power to elect a majority of the members of such Party’s board of directors.

 

1.1.10         “Business
Day” means any day other than a Saturday or Sunday on which banking institutions in New York, New York, United
States are open for business.

 

1.1.11         “Calendar
Quarter” means the three (3) month period in any given calendar year ending on March 31, June 30, September 30
and December 31.

 

1.1.12         “Commercialization”
means any and all activities directed to the making, marketing, promoting, distributing offering for sale, selling, importation
and exportation of the Product. When used as a verb, “Commercialize” means to engage in Commercialization.

 

1.1.13         “Competitive
Infringement” has the meaning set forth in Section 8.2.1.

 

1.1.14         “Confidential
Information” has the meaning set forth in Section 5.1.

 

1.1.15         “Confidentiality
Agreement” means that certain Confidentiality Agreement between Licensee and Licensor dated as of February 24, 2015.

 

1.1.16         “Control”
or “Controlled” means, with respect to any Intellectual Property, the possession (whether by ownership, license
or sublicense, other than by a license, sublicense or other right granted (but not assignment) pursuant to this Agreement) by
a Party (or its Affiliate) of the ability to assign or grant to the other Party the licenses, sublicenses or rights to access
and use such Intellectual Property as provided for in this Agreement, without violating the terms of any agreement or other arrangement
with any third Party in existence as of the time such Party would be required hereunder to grant such license, sublicense, or
rights of access or use.

 

1.1.17         “CPA
Firm” has the meaning set forth in Section 3.10.

 

    	3

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

1.1.18         “CTA”
means a clinical trial authorization application submitted pursuant to the requirements of the EMA under Applicable Law, and any
equivalent application submitted in any country in the Territory, in each case, with all additions, deletion or supplements thereto.

 

1.1.19         “Development”
means pre-clinical and clinical drug development activities conducted by or on behalf of Licensee which occur prior to or as a
condition of Regulatory Approval including, among other things: test method development and stability testing, toxicology, formulation,
process development, manufacturing scale-up, development-stage manufacturing, cGMP audits, cGCP audits, cGLP audits, analytical
method validation, manufacturing process validation, cleaning validation, scale-up, quality assurance/quality control development,
statistical analysis and report writing, pre-clinical and clinical studies, regulatory filing submissions and pre-approvals, and
regulatory affairs related to the foregoing. When used as a verb, “Develop” means to engage in Development.

 

1.1.20         “Disclosing
Party” has the meaning set forth in Section 5.1.

 

1.1.21         “Drug
Product” means a drug product as defined in 21 C.F.R. § 314.3 for administration to human subjects.

 

1.1.22         “Effective
Date” has the meaning set forth in the Preamble of this Agreement.

 

1.1.23         “EMA”
means the European Medicines Agency, and any of its successor agencies or departments.

 

1.1.24         “FDA”
means the United States Food and Drug Administration, and any of its successor agencies or departments.

 

1.1.25         “Field”
means the indications in humans of: (a) the acute, intermittent treatment of hypomobility, “off” episodes associated
with Parkinson’s disease in patients that have motor fluctuations; (b) restless leg syndrome; and (c) erectile dysfunction.

 

1.1.26         
“GAAP” means United States generally accepted accounting principles, consistently applied.

 

1.1.27         “Governmental
Authority” means any national, international, federal, state, provincial or local government, or political subdivision
thereof, or any multinational organization or any authority, agency or commission entitled to exercise any administrative, executive,
judicial, legislative, police, regulatory or taxing authority or power, any court or tribunal (or any department, bureau or division
thereof, or any governmental arbitrator or arbitral body).

 

    	4

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

1.1.28         “IFRS”
means accounting standards issued by the International Accounting Standards Board.

 

1.1.29         “Indemnitee”
has the meaning set forth in Section 6.3.1.

 

1.1.30         “Indemnitor”
has the meaning set forth in Section 6.3.1.

 

1.1.31         “Intellectual
Property” means all: (a) all patents, patent applications including provisional applications and statutory invention
registrations, including reissues, divisions, continuations, continuations-in-part, and reexaminations and all inventions disclosed
therein; (b) copyrightable works, copyrights in works of authorship of any type, including computer software and industrial
designs, registrations and applications for registration thereof; (c) trade secrets, know-how, processes, specifications,
product designs, descriptions of the manufacturing process and equipment and all other manufacturing information, engineering
and other manuals and drawings, standard operating procedures, flow diagrams, chemical, pharmacological, toxicological, pharmaceutical,
physical and analytical, safety, quality assurance, quality control and clinical data, technical information, data, research records,
supplier lists and similar data and information and other material confidential or proprietary technical, business and other information;
(d) any and all rights of application regarding any of the foregoing; and (e) rights to sue and recover damages or obtain
injunctive relief for infringement, or misappropriation thereof.

 

1.1.32         “Licensed
Patents” means all patents and patent applications in the Territory, in each case owned or Controlled by Licensor or
its Affiliates as of the Effective Date or at any time during the Term, including any continuations, continuations-in-part, divisions,
or any substitute applications, any patent issued with respect to any such patent applications, any reissue, reexamination, renewal
or extension (including any supplementary protection certificate) of any such patent, and any confirmation patent or registration
patent or patent of addition based on any such patent, and all foreign counterparts of any of the foregoing, or as applicable
portions thereof or individual claims therein, which would be infringed, absent a license or other right to practice granted under
such patents and patent applications, by the Development or Commercialization of the Product in the Territory. Except for inadvertent
inaccuracies and/or omissions, the Licensed Patents existing as of the Effective Date are set forth in Schedule 1.1B attached
hereto.

 

1.1.33         “Licensee”
has the meaning set forth in the Preamble to this Agreement.

 

1.1.34         “Licensee
Indemnitees” has the meaning set forth in Section 6.2.

 

1.1.35         “Licensor”
has the meaning set forth in the Preamble to this Agreement.

 

1.1.36         “Licensor
Indemnitees” has the meaning set forth in Section 6.1.

 

    	5

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

1.1.37         “Losses”
means any and all damages, awards, deficiencies, settlement amounts, defaults, assessments, fines, dues, penalties, costs, fees,
liabilities, obligations, taxes, liens, losses, lost profits and expenses (including, without limitation, court costs, interest
and reasonable fees of attorneys, accountants and other experts), together with all documented out-of-pocket costs and expenses
incurred in complying with any judgments, orders, decrees, stipulations, investigations and injunctions that arise from or relate
to a Third Party Claim.

 

1.1.38         “Major
Market” means the United States, the European Union or Japan.

 

1.1.39         
“Material Decline” has the meaning set forth in Section 3.3.3.

 

1.1.40         “NDA”
means a new drug application submitted pursuant to the requirements of the FDA under 21 U.S.C. § 355(b)(1) of the Act,
and any equivalent application submitted in any country in the Territory, in each case, with all additions, deletion or supplements
thereto.

 

1.1.41         “Net
Sales” means, for any period of determination, with respect to the Product sold by Licensee (or any Affiliate, successor,
sublicensee, subcontractor or agent of Licensee or sublicensee), the aggregate gross sales for such Product by Licensee (or any
Affiliate, successor, sublicensee, subcontractor or agent of Licensee or Sublicensee) on an arms-length basis from Third Parties
in the Territory during such period, less the following deductions applied on a per Unit basis:

 

(a)              trade
discounts, including cash and quantity discounts or rebates, credits or refunds;

 

(b)              allowances
or credits granted upon claims or returns;

 

(c)              charges
included in the gross sales price for freight, insurance, transportation, postage, and handling of the Product;

 

(d)              customs
duties, sales, excise and use taxes and any other governmental charges (including value added tax) paid in connection with the
transportation, distribution, use or sale of the Product (but excluding what is commonly known as income taxes);

 

(e)              rebates
and chargebacks or retroactive price reductions made to federal, state or local governments (or their agencies), or any Third
Party payor, administrator or contractor, including managed health organizations; and

 

(f)              commissions
related to import, distribution or promotion of the Product paid to Third Parties (specifically excluding any amounts paid to
sales personnel, sales representatives and sales agents who are employees or consultants of, or members of a contract sales force
engaged by or on behalf of, Licensee or its Affiliates or sublicensees).

 

    	6

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

For
the avoidance of doubt, any sale of the Product by Licensee (or any Affiliate, successor, sublicensee, subcontractor or agent
of Licensee or sublicensee) to another of these entities for resale by such entity to a Third Party shall not be deemed a sale
for purposes of this definition of Net Sales.

 

Further,
transfers or dispositions of the Product: (i) in connection with patient assistance programs; (ii) for charitable or promotional
purposes; (iii) for preclinical, clinical, regulatory or governmental purposes or under so-called “named patient”
or other limited access programs; or (iv) for use in any tests or studies reasonably necessary to comply with any Applicable Law
or request by a Regulatory Authority shall not, in each case of (i) through (iv), be deemed sales of the Product for purposes
of this definition of Net Sales.

 

The
amounts of any deductions accrued pursuant to this Section shall be determined from books and records maintained in accordance
with GAAP or IFRS, as the case may be, as required by the accounting standards organization in the jurisdiction of the Licensee,
and shall only be deducted once and only to the extent not otherwise deducted from the aggregate amount invoiced.

 

1.1.42         “Party”
or “Parties” has the meaning set forth in the Preamble to this Agreement.

 

1.1.43         “Patent
Infringement Claims” has the meaning set forth in Section 8.3.

 

1.1.44         “Person”
means an individual, sole proprietorship, partnership, limited partnership, limited liability partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated association, joint venture or other legal entity
or organization, including a government or political subdivision, department or agency of a government.

 

1.1.45         “Phase
III Studies” means Phase III clinical studies conducted by or on behalf of Licensee showing additional therapeutic benefits
of the Product as indicated with data on the labels and/or required for a Regulatory Approval Application.

 

1.1.46         “Product”
means any Drug Product in a dosage form for oral administration, which Drug Product contains API as an active pharmaceutical ingredient.

 

1.1.47         “Product
Patent” has the meaning set forth in Section 8.1.2.

 

    	7

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

1.1.48         “Quarterly
Royalty Reports” has the meaning set forth in Section 3.5.

 

1.1.49         “Receiving
Party” has the meaning set forth in Section 5.1.

 

1.1.50         “Reference
Listed Drug” means a listed Drug Product identified by FDA, or similar Regulatory Authority outside of the United States,
as a Drug Product upon which an applicant may rely in seeking approval of any Regulatory Approval Application.

 

1.1.51         “Regulatory
Approval” means any approvals (including applications therefore, supplements and amendments thereto and pricing and
reimbursement approvals), licenses, registrations or authorizations of any Regulatory Authority, necessary for the Development,
Commercialization, Supply, manufacture, testing, labeling, packaging, or shipping of the Product in the Territory, including the
505(b)(2) NDA, NDA, any sNDA and CTA for the Products.

 

1.1.52         “Regulatory
Approval Application” means any filings submitted to the FDA, EMA or similar Regulatory Authority outside of the United
States or Europe, including any 505(b)(2) NDA, NDA, sNDA, CTA and any equivalent application submitted in any country pursuant
to any similar route of approval together, in each case, with all additions, deletion or supplements thereto, for Regulatory Approval
of the Products in the Territory.

 

1.1.53         “Regulatory
Authority” means any national, regional, state, provincial or local regulatory agency, department, bureau, commission,
council or other governmental authority in the Territory involved in the granting of approvals (including pricing and reimbursement
approvals), licenses, registrations or authorizations for the marketing, sale, manufacturing, testing, labeling, storage, handling,
packaging, shipping or supply of Drug Products, including the FDA and EMA.

 

1.1.54         
“sNDA” means a Supplemental NDA, which is an application for an already approved NDA for the Product for any
changes in packaging, labeling, dosages, formulations, new indications, or additional therapeutic benefit which has been filed
with the FDA under the Act to obtain Regulatory Approval in the United States or with a similar Regulatory Authority outside of
the United States, including all amendments and supplements thereto and all data and documentation submitted to the applicable
Regulatory Authority in connection therewith.

 

1.1.55         “Term”
has the meaning set forth in Section 7.1.

 

1.1.56         “Territory”
means worldwide.

 

1.1.57         “Third
Party” means any Person other than Licensor and Licensee and their respective Affiliates or successors.

 

    	8

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

1.1.58         “Third
Party Claims” has the meaning set forth in Section 6.1.

 

1.1.59         “Unit”
shall mean a single dosage strip of the Product, in an individual foil pouch, for sample or sale.

 

1.1.60         “Upfront
Milestone Payments” has the meaning set forth in Section 3.1.1.

 

1.1.61         “Venture
Entity” shall mean a Person for which its primary business is the investment of capital in other Persons, and shall
explicitly exclude any Person which markets, sells, promotes, develops or manufactures Drug Products and any Person for which
its primary business is owning or Controlling Intellectual Property.

 

SECTION 2.
License

 

2.1          License
Granted to Licensee. Subject to the terms and conditions of this Agreement, Licensor hereby grants to Licensee and its
Affiliates, and Licensee and its Affiliates accept:

 

2.1.1           an
exclusive, limited, royalty-bearing license, with the right to grant sublicenses (subject to Section 2.1.3) under the Licensed
Patents to Develop and Commercialize the Product in the Field in the Territory; and

 

2.1.2           Licensor
covenants and agrees with Licensee that during the Term Licensor will not Develop or Commercialize, and will not grant any license
or similar right with respect to the Product to any Affiliate or Third Party to Develop or Commercialize, the Product in the Field.
For greater certainty, during the Term Licensor will not Develop or Commercialize, or license to a Third Party, any Licensed Patents
to Develop or Commercialize the API, alone or in combination with another active agent, for any human use within the Field.

 

2.1.3           Licensee
shall have the right to sublicense the license rights set forth in this Section 2.1 to any Affiliate and to a Third
Party subject to Licensor’s prior written consent, which will not be unreasonably withheld. Notwithstanding the foregoing,
the Licensee shall have the right to subcontract (and grant related sublicenses) for the manufacture of the Products with up to
two (2) Third Parties (at any one time) without Licensor’s prior written consent. Upon request, Licensee shall provide the
names of the subcontract manufacturers to Licensor.

 

2.2          No
Implied Licenses; Negative Covenant. Except as expressly set forth in this Agreement, Licensee shall not acquire any license
or other Intellectual Property interest, by implication or otherwise, under any Intellectual Property Controlled by Licensor or
its Affiliates. Licensee shall, not, nor shall it permit any of its Affiliates or permitted sublicensees to, practice the Licensed
Patents licensed to it by Licensor outside the scope of the license granted to it under this Agreement.

 

    	9

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

2.3          Licensor
Retained Rights.   Any rights of Licensor not expressly granted to Licensee under the provisions of this
Agreement shall be retained by Licensor. Licensor, except as set forth in Section 2.1.2, shall retain the right to
exploit the Licensed Patents for purposes outside of scope of the license granted in Section 2.1 anywhere in the world,
without any duty to account to Licensee or obtain Licensee’s consent for such exploitation.

 

2.4          Clarification
of Rights.         The Parties acknowledge that the Licensed Patents are
"intellectual property" for purposes of Section 365(n) of the U.S. Bankruptcy Code and that Licensee will have the right
to exercise all rights provided by Section 365(n) with respect to the Licensed Patents.

 

SECTION 3.
PAYMENTS AND REPORTS

 

3.1          Milestone
Payments.

 

3.1.1           Upfront
Milestone Payments. In consideration for the license granted herein by Licensor, Licensee shall pay to Licensor the following
one-time non-refundable payments (the “Upfront Milestone Payments”):

 

	Milestone
                                         Payment
 (U.S.
                                         Dollars)
	 	 	Date Payment
    Due
	$	5,000,000.00	 	 	Upon execution
    of this Agreement.
	$	4,000,000.00	 	 	On December 1, 2016.
	$	5,000,000.00	 	 	On the earlier to occur
    of:  (a) the filing of a NDA for the Product by Licensee; or (b) June 30, 2017.

 

3.1.2           Ongoing
Milestone Payments. In addition to the Upfront Milestone Payments, Licensee shall pay to Licensor the following one-time non-refundable
payments:

 

	Milestone
                                         Payment
 (U.S.
                                         Dollars)
	 	 	Date Payment
    Due
	$	4,000,000.00	 	 	On the earlier
    to occur of:  (a) submission of a Regulatory Approval Application to any Regulatory Authority within the European
    Union; or (b) December 1, 2018.
	$	[**]	 	 	On the earlier to occur
    of:  (a) the first day of Product availability at a pharmacy in the United States; or (b) six (6) months after the
    approval of the NDA by the FDA.
	$	[**]	 	 	On the earlier to occur
    of:  (a) the first day of Product availability at a pharmacy in the European Union: or (b) six (6) months after
    the approval of the CTA by the EMA or a European Union member county.

 

    	10

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

3.1.3           Sales
Milestone Payments. Licensee shall pay to Licensor the following one-time non-refundable sales milestone payments; provided,
however, that in no event shall two (2) sales milestone payments be due and payable by Licensee in the same calendar year:

 

	Milestone
                                         Payment
 (U.S.
                                         Dollars)
	 	 	Date Payment
    Due
	$	[**]	 	 	Upon the achievement of $[**]
    in Net Sales of the Product within a calendar year within the Territory.
	$	[**]	 	 	Upon the achievement of $[**] in Net Sales
    within a calendar year within the Territory.
	$	[**]	 	 	Upon the achievement of $[**] in Net Sales
    within a calendar year within the Territory.

 

3.1.4           In
the event any Business Combination or Product licensing event involving Licensee occurs within ninety (90) calendar days of the
Effective Date, then, upon the consummation of such Business Combination or Product licensing event, Licensee shall immediately
pay to Licensor any remaining Upfront Milestone Payments and Licensee shall continue to be obligated to pay all other milestone
payments as set forth in this Section 3.1 and all royalty payments as set forth in Section 3.3 as and when due.

 

3.1.5           In
the event any Business Combination involving Licensee occurs prior to March 31, 2017 but more than ninety (90) calendar days after
the Effective Date, then, upon the consummation of such Business Combination, Licensee shall pay to Licensor the final Upfront
Milestone Payment upon the earlier to occur of (1) the filing of an NDA for the Product and (2)
March 31, 2017 and Licensee shall continue to be obligated to pay all other milestone payments as set forth in this Section
3.1 and all royalty payments as set forth in Section 3.3 as and when due.

 

3.2          Notice;
Payment. Licensee shall deliver written notice to Licensor of the achievement of any other milestone event set forth in Section
3.1.1, or 3.1.2 upon achievement of the applicable milestone event by Licensee or its Affiliates together with the
payment of the associated milestone payment. Licensee shall deliver written notice to Licensor of the achievement of any milestone
event set forth in Section 3.1.3 within thirty (30) days after the achievement of the applicable milestone event by Licensee
or its Affiliates together with the payment of the associated milestone payment.

 

    	11

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

3.3          Royalties.

 

3.3.1           Subject
to Section 3.4, from the Effective Date through December 31, 2024, and in addition to any payments set forth in Section
3.1, Licensee or its Affiliates during such time shall pay to Licensor an amount equal to [**] percent ([**]%) of the quarterly
Net Sales of the Product in the Territory.

 

3.3.2           Subject
to Section 3.4, from January 1, 2025 until the termination of this Agreement, Licensee or its Affiliates, in consideration
of the rights granted to Licensee under Section 2.1.1 and/or 2.1.2, as applicable, shall pay to Licensor an amount equal to [**]
percent ([**]%) of the quarterly Net Sales of the Product in the Territory, provided that in respect of any jurisdiction or jurisdictions
in the Territory, Licensee may terminate its rights with respect to the Licensed Patents upon one hundred and eighty (180) days
prior written notice to Licensor. In such event Licensee or its Affiliates shall cease to be obligated to pay to Licensor an amount
equal to [**] percent ([**]%) of the quarterly Net Sales of the Product in such jurisdiction or jurisdictions. Licensor will have
no further obligations under this Agreement in jurisdictions where Licensee is not paying and/or ceases to pay a royalty after
January 1, 2025.

 

3.3.3           Notwithstanding
Section 3.3.2, from January 1, 2025 until the termination of this Agreement, in the event that Net Sales of the Product
in any jurisdiction or jurisdictions in the Territory suffer a Material Decline as the result of either (i) the entry of a non-authorized
generic of the Product in film into such jurisdiction or jurisdictions or (ii) off-label prescribing of the Product in film impacting
sales of branded Rx scripts for the Product in film outside the Field, the Licensor shall agree to the reduction of the royalty
rate specified in Section 3.3.2 with respect to such jurisdiction or jurisdictions from [**] percent ([**]%) to [**] percent ([**]%).
In order to access the rights provided under this Section 3.3.3 and/or Section 7.2.3, the Licensee shall provide
to the Licensor a written report detailing the Material Decline in Net Sales and the reasons therefor, which report shall be subject
to verification by Licensor. For the purpose of this Section 3.3.3 and Section 7.2.3, Material Decline shall mean
a reduction in Net Sales of the Product in any jurisdiction of more than twenty percent (20%) in the current twelve month period
compared to the preceding twelve month period (the “Material Decline”). The revised royalty rate contemplated by this
Section 3.3.3 shall take effect for the Calendar Quarter immediately following the delivery of the written report and Licensor’s
verification thereof, specified above.

 

    	12

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

3.3.4           Notwithstanding
anything contained herein to the contrary, any payment due and payable by Licensee in accordance with this Section 3.3
shall be paid to Licensor on a quarterly basis within thirty (30) days after the end of the applicable Calendar Quarter.

 

3.4          Minimum
Royalty. Notwithstanding anything set forth in this Agreement to the contrary, as of January 1, 2020, the minimum annual
royalty payment due and payable by Licensee to Licensor shall be [**] Dollars ($[**]).

 

3.5          Royalty
Reports and Payments. During the Term, Licensee shall submit quarterly royalty reports (“Quarterly Royalty Reports”)
to Licensor within thirty (30) days following the end of each Calendar Quarter, provided that in respect of the final quarter
of the year, Licensee shall have sixty (60) days in which to submit the required Quarterly Royalty Report. Each Quarterly Royalty
Report shall cover the most recently completed Calendar Quarter and shall show: (a) the aggregate gross and Net Sales of
the Product during the most recently completed Calendar Quarter including reasonable detail
with respect to the calculation of Net Sales such as, Units sold, discounts, credits and other components in the calculation of
Net Sales; (b) the royalties, in U.S. dollars, payable with respect to such Net Sales; and (c) with respect to
the Quarterly Royalty Report for the fourth Calendar Quarter of each year, any true-up required.
Each Quarterly Royalty Report shall be accompanied by the payment shown as due on such Quarterly Royalty Report.

 

3.6          Manner
of Payment. All sums due under this Agreement shall be payable in U.S. dollars by bank wire in immediately available funds
to such bank account(s) as Licensor shall designate in writing. All overdue amounts due to Licensor hereunder shall bear interest
at the rate equal to one and one half percent (1.5%) per month or at the highest rate permitted by Applicable Law, whichever is
less.

 

3.7          Bartering
Prohibited. Licensee and its Affiliates and subcontractors shall not solicit or accept any bartered goods or services
in exchange for the sale or transfer of the Product.

 

3.8          Taxes
and Withholding. Except with respect to the calculation of Net Sales, all payments under this Agreement will be made without
any deduction or withholding for or on account of any tax, duties, levies, or other charges unless such deduction or withholding
is required by Applicable Law. If Licensee is so required to deduct or withhold, Licensee will: (a) notify Licensor of such
requirement in writing; (b) pay to the relevant authorities the full amount required to be deducted or withheld promptly
upon the earlier of determining that such deduction or withholding is required; and (c) forward to Licensor an official receipt
(or certified copy) or other documentation reasonably acceptable to Licensor evidencing such payment to such authorities.

 

    	13

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

3.9          Accounting.
All financial terms and standards defined or used in this Agreement for sales or activities occurring in the Territory shall be
governed by and determined in accordance with GAAP or IFRS, as the case may be, as required by the accounting standards organization
in the jurisdiction of the Licensee, including the calculation of Net Sales and royalties due Licensor hereunder; provided
that when the actual results become known relative to any accrued amount, any difference between the actual results and the
accrual is reported and accounted for in the next payment due hereunder (subject to customary processing periods). To the extent
that the difference between such accruals and the actual results has led to an underpayment, Licensee shall pay Licensor the amount
of such underpayment on the next date payment is due to Licensor hereunder. To the extent that the difference between such accruals
and the actual results has led to an overpayment to Licensor, Licensee may set-off such overpayments against subsequent payments
to be made to Licensor; additionally, if any overpayments remain upon the expiration or termination of this Agreement, Licensor
shall refund such overpayments to Licensee within thirty (30) days of receiving an invoice for such overpayment together with
applicable supporting documentation.

 

3.10        Record
Keeping; Audits. Licensee and its Affiliates shall keep books and accounts of record in connection with Net Sales of the
Product in sufficient detail to permit accurate determination of all figures necessary for verification of royalties to be paid
hereunder. Licensee and its Affiliates shall maintain such records for a period of at least three (3) years after the end of the
Calendar Quarter in which they were generated; provided, however, that if any records are in dispute and Licensee has received
written notice from Licensor of the records which are in dispute, Licensee and its Affiliates shall keep such records until the
later of three (3) years or until such dispute is resolved. No more than once every calendar year, upon reasonable advance written
notice to Licensee, Licensor will have the right to engage a nationally recognized public accounting firm chosen by Licensor and
reasonably acceptable to Licensee (which accounting firm will not be the external auditor of Licensor, will not have been hired
or paid on a contingency basis and will have experience auditing pharmaceutical companies) (a “CPA Firm”) to
conduct an audit of such books and records of Licensee to determine the correctness of the amount of royalties paid to Licensor
under the terms of this Agreement. The CPA Firm will be given access to and will be permitted to examine such books and records
of Licensee as it will reasonably request, upon thirty (30) days’ prior written notice having been given by Licensor, during
regular business hours, for the sole purpose of determining compliance with the Net Sales royalty provisions of this Agreement.
Prior to any such examination taking place, the CPA Firm will enter into a confidentiality agreement reasonably acceptable to
Licensee and Licensor with respect to the Confidential Information to which they are given access and will not contain in its
report or otherwise disclose to Licensor or any Third Party any information labeled by Licensee as being confidential customer
information regarding pricing or other competitively sensitive proprietary information. Licensor and Licensee will be entitled
to receive a full written report of the CPA Firm with respect to its findings and Licensor will provide, without condition or
qualification, Licensee with a copy of the report, or other summary of findings, prepared by such CPA Firm promptly following
Licensor’s receipt of same. In the event of any dispute between Licensor and Licensee regarding the findings of any such
inspection or audit, the Parties will initially attempt in good faith to resolve the dispute amicably between themselves, and
if the Parties are unable to resolve such dispute within thirty (30) days after delivery to both Parties of the CPA Firm’s
report, each Party will select an internationally recognized independent certified public accounting firm (other than the CPA
Firm), and the two firms chosen by the Parties will choose a third internationally recognized independent certified public accounting
firm which will resolve the dispute, and such accounting firm’s determination will be binding on both Parties absent manifest
error by such accounting firm. All costs and expenses of such auditor incurred in connection with performing any such audit shall
be paid by Licensor unless such audit discloses an underpayment of at least five percent (5%), in which case Licensee shall bear
such costs and expenses.

 

    	14

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

3.11        Underpayments
and Overpayments. If an audit conducted pursuant to 3.10 reveals that any additional royalty payments were due
to Licensor under this Agreement, then Licensee shall pay to Licensor such additional royalty payments within thirty (30) days
of the date Licensee receives written notice of such underpayment from Licensor. If an audit conducted pursuant to Section
3.10 reveals that Licensor was paid royalties in excess of those royalties due to Licensor under this Agreement, then Licensee
shall, at its election, be entitled to: (a) a refund of such amount within thirty (30) days of the date Licensor receives written
notice of such overpayment from Licensee; or (b) deduct such amount from the next royalty payment due Licensor under this Agreement.

 

SECTION 4.
REPRESENTATIONS, WARRANTIES AND COVENANTS

 

4.1          Representations,
Warranties and Covenants of Each Party. Each Party hereby represents and warrants as of the Effective Date to the other
Party as follows:

 

4.1.1           Corporate
Existence, Power, and Authority. Such Party: (a) is duly formed and in good standing under the laws of the jurisdiction
of its formation; (b) has the power and authority and the legal right to enter into this Agreement and perform its obligations
hereunder; and (c) has taken all necessary action on its part required to authorize the execution and delivery of this Agreement
and the performance of its obligations hereunder.

 

4.1.2           Binding
Agreement. This Agreement has been duly executed and delivered on behalf of such Party and constitutes a legal, valid and
binding obligation of such Party and is enforceable against it in accordance with its terms subject to the effects of bankruptcy,
insolvency or other laws of general application affecting the enforcement of creditor rights and judicial principles affecting
the availability of specific performance and general principles of equity, whether enforceability is considered a proceeding at
law or equity.

 

    	15

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

4.1.3           Compliance
with Applicable Law. All necessary consents, approvals and authorizations of all Regulatory Authorities and other Persons
required to be obtained by such Party in connection with the execution and delivery of this Agreement and the performance of its
obligations as of the Effective Date hereunder have been obtained.

 

4.1.4           No
Conflict with Applicable Law. The execution and delivery of this Agreement, the performance of such Party’s obligations
hereunder, and any actions or omissions of such Party related to the activities contemplated hereunder and the circumstances surrounding
this Agreement: (a) do not and will not conflict with or violate any Applicable Law or any provision of the articles of incorporation,
bylaws or other governing charter documents of such Party; and (b) do not and will not conflict with, violate, or breach,
or constitute a default or require any consent under, any contractual obligation or court or administrative order by which such
Party is bound.

 

4.1.5           No
Conflict with Agreement. Each Party agrees not to engage in any action that is in violation or inconsistent with the terms
and conditions of this Agreement or that interferes with the consummation of the transactions contemplated under this Agreement.

 

4.1.6           Bankruptcy;
Insolvency. Neither Party is aware of any action or petition, pending or otherwise, for bankruptcy or insolvency of such Party
or its Affiliates or subsidiaries in any state, country or other jurisdiction, and it is not aware of any facts or circumstances
that could result in such Party becoming or being declared insolvent, bankrupt or otherwise incapable of meeting its obligations
under this Agreement as they become due in the ordinary course of business.

 

4.2          Additional
Licensor Representations, Warranties and Covenants. Licensor represents, warrants and covenants to Licensee as follows:

 

4.2.1           Right
to Grant License. Licensor and its Affiliates have the right to grant the licenses granted to Licensee herein, and except
in connection with commercial lending arrangements, Licensor owns all right, title and interest in and to, or has a license, sublicense
or otherwise permission to use and license, the Licensed Patents, as of the Effective Date, free and clear of any liens, charges
and encumbrances.

 

4.2.2           Third
Party Agreements. Except in connection with commercial lending arrangements, neither Licensor nor any of its Affiliates is
a party to or otherwise bound by any oral or written contract or agreement that will result in any Third Party obtaining any interest
in, or that would give to any Third Party any right to assert any claim in or with respect to, any of Licensee’s rights
under this Agreement.

 

4.2.3           No
Legal Action against Licensor. Licensor is not a party to, nor to Licensor’s knowledge is Licensor threatened with,
any legal or equitable action, recall or withdrawal, or under active investigation by or before any Governmental Authority, arbitrator,
Regulatory Authority, which is reasonably likely to adversely affect its ability to execute and deliver this Agreement or fully
and timely perform its covenants, duties and obligations set forth herein.

 

    	16

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

4.2.4           Patent
Rights. To Licensor’s knowledge , the Licensed Patents listed in Schedule 1.1B are valid and subsisting, in full force
and effect, and have not been canceled, expired, or abandoned. Schedule 1.1B may be amended to correct inadvertent inaccuracies
and/or omissions subsequent to execution of this Agreement. The accuracy and completeness of Schedule 1.1B is based on records
of Licensor’s patent attorney’s docket system or as publically available at certain databases on the internet. No
review of actual files has been conducted.

 

4.2.5           Licensed
Patents. Following the Effective Date, upon notice from Licensee, Licensor shall provide annually to Licensee an update on
any patents and published patent applications constituting Licensed Patents.

 

4.2.6           Compliance
with Applicable Law. During the Term, Licensor shall comply with and maintain in force all licenses, consents, permits and
authorizations necessary to perform its obligations under this Agreement.

 

4.3          Additional
Licensee Representations, Warranties and Covenants. Licensee further represents, warrants and covenants to Licensor that:

 

4.3.1           Third
Party Agreements. As of the Effective Date, neither Licensee nor any of its Affiliates is a party to or otherwise bound by
any oral or written contract or agreement that will result in any Third Party obtaining any interest in, or that would give to
any Third Party any right to assert any claim in or with respect to, any of Licensor’s rights under this Agreement.

 

4.3.2           No
Legal Action Against Licensee. As of the Effective Date, Licensee is not a party to, nor to Licensee’s knowledge is
Licensee threatened with, any legal or equitable action or under active investigation by or before any court, arbitrator, administrative
agency or other tribunal which is reasonably likely to adversely affect its ability to execute and deliver this Agreement or fully
and timely perform its covenants, duties and obligations set forth herein.

 

4.3.3           Compliance
with Applicable Law. During the Term, Licensee shall comply with and maintain in force all licenses, consents, permits and
authorizations necessary to perform its obligations under this Agreement.

 

4.3.4           Responsibilities.
Licensee shall have sole responsibility for the Development and Commercialization of the Product and all regulatory activities
associated with the Product.

 

    	17

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

4.4          Disclaimer.
EACH PARTY HEREBY DISCLAIMS ANY AND ALL REPRESENTATIONS AND WARRANTIES IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREIN
NOT EXPRESSLY MADE IN THIS AGREEMENT TO THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE LAWS, INCLUDING WITH RESPECT TO THE PRODUCT
OR THE LICENSED PATENTS LICENSED OR GRANTED UNDER THIS AGREEMENT, INCLUDING ANY WARRANTY OF NON-INFRINGEMENT, QUALITY, PERFORMANCE,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING
OR USAGE OR TRADE. FOR THE AVOIDANCE OF DOUBT, NOTHING CONTAINED IN THIS SECTION 4.4 SHALL OPERATE TO LIMIT OR INVALIDATE
ANY EXPRESS WARRANTY CONTAINED HEREIN OR ANY IMPLIED WARRANTY OF GOOD FAITH AND/OR FAIR DEALING.

 

SECTION 5.
CONFIDENTIAL INFORMATION

 

5.1          General.
Pursuant to the terms of this Agreement, each of Licensor and Licensee (in such capacity, the “Disclosing Party”)
has disclosed and will be disclosing to the other Party, and to the Affiliates, officers, directors, employees, agents and/or
representatives of each (in such capacity, the “Receiving Party”) certain secret, confidential or proprietary
data, and related information, including, without limitation, technical, scientific, business and other information, data, materials
and the like relating to drug applications, patent applications, products, processes, formulations, manufacturing technology,
samples, operating methods and procedures, marketing, manufacturing, distribution and sales methods and systems, sales figures,
pricing policies and price lists and other business information (“Confidential Information”). The Receiving
Party shall make no use of any Confidential Information of the Disclosing Party except in the exercise of its rights and the performance
of its obligations set forth in this Agreement. The Receiving Party: (a) shall keep and hold as confidential, and shall cause
its officers, directors, employees, agents and representatives to keep and hold as confidential, all Confidential Information
of the Disclosing Party; and (b) shall not disclose, and shall cause its Affiliates, officers, directors, employees, agents
and representatives not to disclose, any Confidential Information of the Disclosing Party. Confidential Information disclosed
by the Disclosing Party shall remain the sole and absolute property of the Disclosing Party, subject to the rights granted in
this Agreement or Applicable Law.

 

5.2          Prior
Confidentiality Agreement. As of the Effective Date, the terms of this Section 5 shall supersede any prior non-disclosure,
secrecy or confidentiality agreement between the Parties (or their Affiliates) relating to the subject of this Agreement, including
the Confidentiality Agreement, which is hereby terminated. Any information disclosed pursuant to any such prior agreement shall
be deemed Confidential Information for purposes of this Agreement.

 

    	18

     

    

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

5.3          Exceptions.
The above restrictions set forth in Section 5.1 on the use and disclosure of Confidential Information shall not apply to
any information which: (a) is already known to the Receiving Party at the time of disclosure by the Disclosing Party, as
demonstrated by competent proof (other than as a result of prior disclosure under any agreement between the Parties with respect
to confidentiality); (b) is or becomes generally known or available to the public other than through any act or omission
of the Receiving Party in breach of this Agreement (or any other agreement between the Parties with respect to confidentiality);
(c) is acquired by the Receiving Party from a Third Party who is not directly or indirectly under an obligation of confidentiality
to the Disclosing Party with respect to same, or (d) is developed independently by the Receiving Party without the use, direct
or indirect, of the Disclosing Party’s Confidential Information. In addition, nothing in this Section 5 shall be
interpreted to limit the ability of either Party to disclose its own Confidential Information to any other Person on such terms
and subject to such conditions as it deems advisable or appropriate.

 

5.4          Permitted
Disclosures. It shall not be a breach of Section 5.1 if a Receiving Party discloses Confidential Information of
a Disclosing Party: (a) pursuant to Applicable Law, including securities laws applicable to a public company, to any Regulatory
Authority or the listing standards or agreements of any national or international securities exchange or The NASDAQ Stock Market
or other Governmental Authority; or (b) in a judicial, administrative or arbitration proceeding to enforce such Party’s
rights under this Agreement; provided, however, that the Receiving Party (i) provides the Disclosing Party with as
much advance written notice as possible of the required disclosure, (ii) reasonably cooperates with the Disclosing Party
in any attempt to prevent, limit or seek confidential treatment for the disclosure and (iii) discloses only the minimum amount
of Confidential Information necessary for compliance.

 

5.5          Confidential
Terms. Each Party acknowledges and agrees that the terms and conditions of this Agreement shall be considered Confidential
Information of each Party and shall be treated accordingly. Notwithstanding the foregoing, each Party acknowledges and agrees
that the other may be required to disclose some or all of the information included in this Agreement in order to comply with its
obligations under securities laws or the listing standards or agreements of any national or international securities exchange
or The NASDAQ Stock Market, and hereby consents to such disclosure to the extent deemed advisable or appropriate by its respective
counsel (but only after consulting with the other to the extent practicable). The Parties may also disclose the existence of this
Agreement and terms thereof to their directors, investors, officers, employees, attorneys, accountants and other advisers on a
need to know basis and may, upon obtaining a written confidentiality agreement, further disclose the existence and terms of this
Agreement to other Third Parties to whom it may be relevant in connection with financings, acquisitions and similar transactions
to the extent such Third Parties are under confidentiality obligations at least as restrictive as those set forth herein.

 

    	19

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

SECTION 6.
INDEMNIFICATION; LIMITATION OF LIABILITY

 

6.1          Indemnification
by Licensee. Licensee shall defend, indemnify and hold harmless Licensor and its Affiliates and each of their respective
officers, directors, shareholders, employees, successors and assigns (“Licensor Indemnitees”) from and against
all claims, allegations, suits, actions or proceedings asserted against any Licensor Indemnitee by any Third Parties, whether
governmental or private (“Third Party Claims”), and all associated Losses, to the extent arising out of or
resulting from: (a) the performance or failure to perform by Licensee (or any of its Affiliates, sublicensees, subcontractors
or agents) any of its obligations under this Agreement; (b) a material breach by Licensee or any of its Affiliates, sublicensees,
subcontractors or agents of any of Licensee’s representations, warranties, covenants or agreements under this Agreement;
(c) the Development or Commercialization of the Product (including, without limitation any product liability claims relating
thereto); or (d) violation of Applicable Law by any Licensee Indemnitee; provided, however, that in all cases referred
to in this Section 6.1, Licensee shall not be liable to indemnify Licensor for any Losses of Licensor to the extent
that such Losses of Licensor were caused by (i) the gross negligence or willful misconduct or intentional wrongdoing of Licensor
or any of its Affiliates, subcontractors or agents, (ii) any breach by Licensor or any of its Affiliates, subcontractors
or agents of Licensor’s representations, warranties, covenants or agreements under this Agreement, or (iii) matters
for which Licensor has an obligation to indemnify any Licensee Indemnitee pursuant to Section 6.2.

 

6.2          Indemnification
by Licensor. Licensor shall defend, indemnify and hold harmless Licensee and its Affiliates and each of their respective
officers, directors, shareholders, employees, successors and assigns (“Licensee Indemnitees”) from and against
all Third Party Claims, and all associated Losses, to the extent arising out of or resulting from: (a) the performance or
failure to perform by Licensor (or any its Affiliates, subcontractors or agents) of any of its obligations under this Agreement;
(b) a material breach by Licensor or any of its Affiliates, subcontractors or agents of any of its representations, warranties,
covenants or agreements under this Agreement; or (c) violation of Applicable Law by any Licensor Indemnitee; provided, however,
that in all cases referred to in this Section 6.2, Licensor shall not be liable to indemnify any Licensee Indemnitee
for any Losses of such Licensee Indemnitee to the extent that such Losses were caused by (i) the gross negligence or willful
misconduct or intentional wrongdoing of Licensee or any of its Affiliates, sublicensees, subcontractors or agents, (ii) any
breach by Licensee or any of its Affiliates, sublicensees, subcontractors or agents of Licensee’s representations, warranties,
covenants or agreements under this Agreement, or (iii) matters for which Licensee has an obligation to indemnify any Licensor
Indemnitee pursuant to Section 6.1; or (iv) with respect to a claim under Section 8.3 by a Third Party,
the API.

 

    	20

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

6.3          Procedure
for Indemnification.

 

6.3.1           Notice.
In the case of a Third Party Claim (as contemplated by Sections 6.1 or 6.2) other than a Patent Infringement Claim (which is subject
to the procedures set forth in Section 8.3) made by any Person who is not a Party of this Agreement (or an Affiliate
thereof) as to which a Party (the “Indemnitor”) may be obligated to provide indemnification pursuant to this
Agreement, such Party seeking indemnification hereunder (“Indemnitee”) will notify the Indemnitor in writing
of the Third Party Claim (and specifying in reasonable detail the factual basis for the Third Party Claim and to the extent known,
the amount of the Third Party Claim) reasonably promptly after becoming aware of such Third Party Claim; provided, however,
that failure to give such notification will not affect the indemnification provided hereunder except to the extent the Indemnitor
shall have been actually materially prejudiced as a result of such failure.

 

6.3.2           Defense
of Claim. If a Third Party Claim is made against an Indemnitee, the Indemnitor will be entitled, within thirty (30) days after
receipt of written notice from the Indemnitee of the commencement or assertion of any such Third Party Claim, to assume the defense
thereof by providing written notice to Indemnitee of its intention to assume the defense of such Third Party Claims within such
thirty (30) day period (at the expense of the Indemnitor) with counsel selected by the Indemnitor and reasonably satisfactory
to the Indemnitee for so long as the Indemnitor is conducting a good faith and diligent defense. Should the Indemnitor so elect
to assume the defense of a Third Party Claim, the Indemnitor will not be liable to the Indemnitee for any legal or other expenses
subsequently incurred by the Indemnitee in connection with the defense thereof; provided, however, that if under applicable
standards of professional conduct a conflict of interest exists between the Indemnitor and the Indemnitee in respect of such claim,
such Indemnitee shall have the right to employ separate counsel to represent such Indemnitee with respect to the matters as to
which a conflict of interest exists and in that event the reasonable fees and expenses of such separate counsel shall be paid
by such Indemnitor; provided, further, that the Indemnitor shall only be responsible for the reasonable fees and expenses
of one separate counsel for such Indemnitee. If the Indemnitor assumes the defense of any Third Party Claim, the Indemnitee shall
have the right to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed
by the Indemnitor. If the Indemnitor assumes the defense of any Third Party Claim, the Indemnitor will promptly supply to the
Indemnitee copies of all material correspondence and documents relating to or in connection with such Third Party Claim and keep
the Indemnitee reasonably informed of developments relating to or in connection with such Third Party Claim, as may be reasonably
requested by the Indemnitee (including, without limitation, providing to the Indemnitee on reasonable request updates and summaries
as to the status thereof). If the Indemnitor chooses to defend a Third Party Claim, all Indemnitees shall reasonably cooperate
with the Indemnitor in the defense thereof (such cooperation to be at the expense, including reasonable legal fees and expenses,
of the Indemnitor). If the Indemnitor does not elect to assume control by written acknowledgement of the defense of any Third
Party Claim within the thirty (30) day period set forth above, or if such good faith and diligent defense is not being or ceases
to be conducted by the Indemnitor, the Indemnitee shall have the right, at the expense of the Indemnitor, after five (5) Business
Days’ written notice to the Indemnitor of its intent to do so, to undertake the defense of the Third Party Claim for the
account of the Indemnitor (with counsel selected by the Indemnitee), and to compromise or settle such Third Party Claim, exercising
reasonable business judgment.

 

    	21

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

6.3.3           Settlement
of Claims. In no event may the Indemnitor compromise or settle any Third Party Claim in a manner which admits fault or negligence
on the part of the Indemnitee without the prior written consent of the Indemnitee. Without limiting the foregoing, if the Indemnitor
acknowledges in writing its obligation to indemnify the Indemnitee for a Third Party Claim, the Indemnitee will agree to any settlement,
compromise or discharge of such Third Party Claim that the Indemnitor may recommend that by its terms obligates the Indemnitor
to pay the full amount of Losses (whether through settlement or otherwise) in connection with such Third Party Claim and unconditionally
and irrevocably releases the Indemnitee completely from all Losses in connection with such Third Party Claim; provided, however,
that, without the Indemnitee’s prior written consent, the Indemnitor shall not consent to any settlement, compromise or
discharge (including, without limitation, the consent to entry of any judgment), that provides for injunctive or other nonmonetary
relief affecting the Indemnitee.

 

6.3.4           Assumption
of Defense. Notwithstanding anything to the contrary contained herein, an Indemnitee shall be entitled to assume the defense
of any Third Party Claim, at its own expense, with respect to the Indemnitee upon written notice to the Indemnitor pursuant to
this Section 6.3.4, in which case, the Indemnitor shall be relieved of liability under Section 6.1 or
6.2, as applicable, solely for such Third Party Claim and related Losses.

 

6.4          Insurance.
During the Term and for a period of five (5) years after the termination or expiration of this Agreement, each Party shall obtain
and/or maintain, respectively, at its sole cost and expense, comprehensive general liability insurance, products liability insurance
and clinical trials insurance (including any self-insured arrangements), each in amounts, respectively, which are reasonable and
customary in the U.S. pharmaceutical industry for companies of comparable size and activities at the respective place of business
of each Party but in no event less than [**] Dollars ($[**]) per occurrence and [**] Dollars ($[**]) annual aggregate. Each Party
shall also maintain any mandatory insurance, including but not limited to workers compensation coverage, in accordance with all
Applicable Law. All insurance policies reflecting such insurance shall be written on a “per occurrence” or “claims
made” basis with an insurance company rated at least A-3 by Best’s rating guide. Licensor and its designees who have
an insurable interest shall be added as an additional insured on the Licensee’s product liability insurance policy. Each
such insurance policy shall provide for at least thirty (30) calendar days prior written notice to Licensor of the cancellation
or any substantial modification of the terms of coverage. Such product liability insurance (or self-insured arrangements) shall
insure against all liability, including without limitation personal injury, physical injury, or property damage arising out of
the manufacture, sale, distribution, or marketing of the Product. Each Party also agrees to waive, and will require its insurers
to waive, all rights of subrogation against the other Party, and its directors, officers, employees, and agents on all the foregoing
coverages. Each Party shall provide written proof of the existence of such insurance to the other Party upon written request.

 

    	22

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

6.5          Limitation
of Liability. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER OR
ANY OF ITS AFFILIATES FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING, WITHOUT
LIMITATION, LOST PROFITS, BUSINESS OR GOODWILL) SUFFERED OR INCURRED BY SUCH OTHER PARTY OR ITS AFFILIATES IN CONNECTION WITH
THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREIN OR A BREACH OR ALLEGED BREACH OF THIS AGREEMENT. THE FOREGOING SENTENCE SHALL
NOT (A) APPLY IN CASES OF A PARTY’S FRAUD, GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT, (B) NOT LIMIT THE OBLIGATIONS OF
EITHER PARTY TO INDEMNIFY THE OTHER PARTY FROM AND AGAINST THIRD PARTY CLAIMS UNDER THIS SECTION 6.5, OR (C) LIMIT THE
DAMAGES AVAILABLE TO A PARTY FOR THE OTHER PARTY’S BREACH OF ITS OBLIGATIONS UNDER SECTION 5.

 

SECTION 7.
TERM AND TERMINATION

 

7.1          Term.
This Agreement shall commence as of the Effective Date and, shall continue until terminated in accordance with Section 7.2
(the “Term”).

 

7.2          Termination.
In addition to any other provision of this Agreement expressly providing for termination of this Agreement:

 

7.2.1           Licensor
may, in its sole discretion, terminate this Agreement immediately upon written notice if:

 

(a)
Licensee fails to make any payments required under this Agreement when due and Licensee does not make the required payments within
thirty (30) days of receiving notice from Licensor;

 

(b)
if Licensee fails to commercialize the Product in at least one Major Market by January 1, 2020;

 

(c)
if Licensee pays to Licensor not more than the minimum royalty payment due to Licensor for any thirty (30) consecutive months,
from the date of first commercial sale, in accordance with Section 3.4;

 

(d)
if Licensee fails a primary endpoint of its current Phase III Studies (CTH-300 and CTH-301) and either (i) fails to start another
Phase III study within six (6) months after such failed primary endpoint or (ii) fails a primary endpoint of any subsequent Phase
III Study;

 

    	23

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

(e)
if Section 8.4 has been violated; or

 

(f)
no further royalty payments are due and payable to Licensor pursuant to Section 3.3.

 

7.2.2           Licensee
may, in its sole discretion, terminate this Agreement:

 

(a)
if Licensor fails to use commercially reasonable efforts to enforce or conduct an action to defend the Licensed Patents on behalf
of Licensee in response to a Patent Infringement Claim within ninety (90) days of receipt of written notification from Licensee
of its desire that Licensor pursue such action;

 

(b)
following written notice that the Licensor is in material breach of the Agreement, if the Licensor fails to remedy same within
ninety (90) days of receipt of the written notice describing the breach and requiring it to be so remedied;

 

(c)
at any time after June 30, 2017, but prior to Commercialization of the initial Product, upon ninety (90) days prior written notice
to Licensor, if Licensee has abandoned further Development of the Product in all jurisdictions and has publicly announced abandonment
of the Product; or

 

(d)
at any time after December 31, 2024, the Licensee may terminate this Agreement for any reason upon one hundred and eighty (180)
days prior written notice to Licensor,

 

7.2.3           At
any time during the Term of this Agreement, if Licensee can establish that a Material Decline (as defined in Section 3.3.3) has
occurred in a jurisdiction or jurisdictions in the Territory as a result of the Licensor licensing to a Third Party any Licensed
Patents to Develop or Commercialize the API either alone or in combination with another active agent, for any human use, solely
with respect to such jurisdiction or jurisdictions in the Territory, the Licensee may terminate this Agreement with respect to
the jurisdiction or jurisdictions in the Territory which have suffered a Material Decline, upon thirty (30) days prior written
notice to Licensor.

 

7.2.4           Either
Party may terminate this Agreement: (a) immediately upon written notice upon the occurrence of a Bankruptcy Event with respect
to the other Party; or (b) if the other Party commits any material misrepresentation or breach of any of its covenants, obligations,
representations or warranties under this Agreement to which such action to terminate applies and, in the case of a breach which
is capable of remedy, such Party fails to remedy the same within ninety (90) days after receipt of a written notice describing
the breach and requiring it to be so remedied.

 

    	24

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

7.2.5           This
Agreement may be terminated by the non-breaching Party upon written notice to the other Party, if the other Party has violated
the exclusivity provisions set forth in its obligations under Section 2 or the confidentiality provisions set forth in
Section 5 and fails to remedy same within thirty (30) days of receipt of a written notice describing the breach and requiring
it to be so remedied.

 

7.3          No
Waiver. The right of Licensee or Licensor to terminate this Agreement, as herein above provided, shall not be affected
in any way by Licensee’s or Licensor’s respective waiver or failure to take action with respect to any prior default
or breach.

 

7.4          Effects
of Termination.

 

7.4.1           Effect
of Termination Generally. On the expiration or earlier termination of this Agreement for any reason, except as otherwise expressly
provided herein, all rights and obligations of each Party hereunder shall cease.

 

7.4.2           Milestone
Payments; Disposition and Transfer of Inventory upon Termination; Royalties Due Thereon Not Affected By Termination. Subject
to Section 7.4.3, on the termination of this Agreement: (a) Licensee shall pay to
Licensor all milestones as set forth in Section 3.1.1, to the extent not already paid to Licensor; (b) all
unpaid royalty payments payable to Licensor pursuant to Section 3.3 for Product sold as of the Effective Date of termination
shall remain due and payable as scheduled; and (c) Licensee shall pay to Licensor a royalty, in the same amount and calculated
in accordance with the terms set forth in Section 3.3 and subject to all of the provisions of Section 3.4
through Section 3.11 inclusive, on each sale of remaining inventory of Product by Licensee (or any Affiliate,
successor, sublicensee, subcontractor or agent of Licensee or sublicensee) when and as such Product is sold.

 

7.4.3           Milestone
Payments; Disposition and Transfer of Inventory upon Termination; Royalties Due Thereon Affected By Termination.         On
the termination of this Agreement by Licensor pursuant to Section 7.2.1(d) or Licensee pursuant to Section 7.2.2(a)
to Section 7.2.2(d), Licensee shall have no further obligation to pay to Licensor any milestone payments as set forth
in Section 3.1, to the extent not already paid or due to Licensor.

 

7.4.4           Accrued
Rights. Termination, relinquishment or expiration of this Agreement for any reason shall be without prejudice to any right
which shall have accrued to the benefit of either Party prior to such termination, relinquishment or expiration including damages
arising from any breach under this Agreement. Termination, relinquishment or expiration of this Agreement shall not relieve either
Party from any obligation which is expressly or by implication intended to survive such termination, relinquishment or expiration
of this Agreement and shall not affect or prejudice any provision of this Agreement which is expressly or by implication provided
to come into effect on, or continue in effect after, such termination, relinquishment or expiration. Remedies for breaches under
this Agreement shall also survive any termination, relinquishment or expiration of this Agreement.

 

    	25

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

7.4.5           Survival.
The following Sections of this Agreement, as well as any other provisions in this Agreement which specifically state they will
survive termination or expiration of this Agreement, shall survive termination of this Agreement for any reason: Section 1,
Section 2 (provided that the license granted in Section 2.1 shall be non-exclusive and all such
sections shall survive for the sole purpose of selling out remaining inventory of Product), Section 3.1 and Section
3.2 (with respect to earned and unpaid milestone payments), Section 3.3 and Section 3.4 (with respect to
earned and unpaid royalty payments), Sections 3.5 through Section 3.11 inclusive (with respect to milestone
and royalty payments due prior to and earned and unpaid accrued milestone and royalty payments owed after such termination or
expiration), Sections 4.4, 5, 6, 7.3, 7.4, 8 (with respect to pending claims thereunder),
and Section 9.

 

7.4.6           Return
of Confidential Information. Within thirty (30) days of any expiration or termination of this Agreement: (a) Licensee
shall deliver to Licensor, upon written request, all Confidential Information of Licensor, except for any documents or records
that Licensee is required to retain by Applicable Law; and (b) Licensor shall cease to use and shall deliver to Licensee,
upon written request, all Confidential Information of Licensee except for any documents or records that Licensor is required to
retain by Applicable Law.

 

SECTION 8.
INTELLECTUAL PROPERTY

 

8.1          Patent
Prosecution and Maintenance.

 

8.1.1           Licensor
shall be responsible for the preparation, filing, prosecution and maintenance of the Licensed Patents. The cost of such preparation,
filing, prosecution and maintenance of the Licensed Patents shall be borne by Licensor.

 

8.1.2           Licensee
shall have the option, but not the obligation, of leading the preparation, filing, prosecution and maintenance of any and all
patents or patent applications which claim the API or its use which, if granted in the United States, would satisfy the requirements
for listing in the Orange Book for the Product Developed or Commercialized by the Licensee under this Agreement (“Product
Patents”). The Parties will work together to prosecute such Product Patents. The cost of such preparation, filing, prosecution
and maintenance of any such Product Patents shall be borne by Licensee.

 

    	26

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

8.1.3           In
the event that Licensor desires to abandon or cease prosecution or maintenance of any Licensor Patent in any country in the Territory,
Licensor shall provide reasonable prior written notice to Licensee of such intention to abandon (which notice shall, to the extent
possible, be given no later than sixty (60) days prior to the next deadline for any action that must be taken with respect to
any such Licensor Patent in the relevant patent office). In such case, upon Licensee’s written election provided no later
than thirty (30) days after such notice from Licensor, Licensee shall have the right to assume prosecution and maintenance of
such Licensor Patent at Licensee’s expense. If Licensee does not provide such election within thirty (30) days after such
notice from Licensor, Licensor may, in its sole discretion, continue prosecution and maintenance of such Licensor Patent or discontinue
prosecution and maintenance of such Licensor Patent. 

 

8.1.4           Cooperation
of the Parties. The Parties shall cooperate at the requesting Party’s expense, with respect to the preparation, filing,
prosecution and maintenance of any Licensed Patents and Product Patents and in the obtaining and maintenance of any extensions,
supplementary protection certificates and the like with respect to any Licensor Patents and Product Patents. Such cooperation
includes promptly informing the other Party of any matters coming to such Party’s attention that may affect the preparation,
filing, prosecution or maintenance of any such patent applications.

 

8.2          Infringement
by Third Parties.

 

8.2.1           Each
Party shall promptly notify the other Party in writing of any alleged or threatened infringement of any Licensed Patent in the
Field or Product Patent of which it becomes aware (a “Competitive Infringement”). In any such instance Licensor
shall have the sole right, at its option, to bring such alleged or threatened Competitive Infringement to an end and Licensee
shall provide reasonable assistance to Licensor in connection therewith, at Licensee’s cost and expense (the costs and expenses
of the Licensor in connection therewith, including the investigation and analysis thereof, to be reimbursed to Licensor by Licensee
on an as-incurred basis). Licensee shall be entitled to be represented by independent counsel of its own choice and at its own
expense. Licensor shall keep Licensee and/or its designated legal counsel reasonably informed as to the progress in connection
with the foregoing Competitive Infringement. If Licensor fails to initiate a suit or take other appropriate action that it has
the right to initiate or take pursuant to this Section 8.2 with respect to a Competitive Infringement in the Territory
within ninety (90) days after becoming aware of the basis for such suit or action, then Licensee may, in its discretion, provide
Licensor with written notice requiring Licensor to initiate a suit or take other appropriate action with respect to such Competitive
Infringement in the Territory, such suit or other appropriation action to be taken at the sole cost and expense of Licensee. Notwithstanding
anything to the contrary contained in this Agreement, Licensor shall have the unilateral right to enter into any settlement without
the prior written consent of Licensee with respect to any Competitive Infringement suit or action to the extent such settlement
would not adversely affect the Licensee’s rights or benefits with respect to the Development or Commercialization of the
Product, in which case, Licensee’s prior written consent shall be required, which consent shall not be unreasonably withheld.

 

    	27

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

8.2.2           If
Licensor recovers monetary damages in any enforcement action pursuant to Section 8.2.1, such recovery shall be allocated
(i) first to the reimbursement of any unreimbursed expenses incurred by Licensor in such enforcement action, (ii) second to any
expenses incurred by Licensee in such enforcement action, and (iii) any remaining amounts shall be allocated to Licensor and Licensee
in such proportion so as to compensate each Party for their respective provable losses resulting from the Competitive Infringement.

 

8.3          Infringement
of Third Party Rights. Each Party shall promptly notify the other Party in
writing if it becomes aware of any allegation by a Third Party that the activity of either of the Parties or their Affiliates
or sublicensee or subcontractor in connection with the Development or Commercialization of any Product infringes the issued patent
rights (or would infringe the claims, if issued, of a pending patent application) of any Third Party in the Territory (“Patent
Infringement Claims”). The Party, directly or through an Affiliates or sublicensee or subcontractor, alleged to have
infringed the patent rights of a Third Party shall have the sole right to defend such alleged infringement. In the event of a
litigation in accordance with this Section 8.3, the Party not controlling such litigation shall use its reasonable
efforts to cooperate at the controlling Party’s cost and expense (the costs and expenses of the non-controlling Party in
connection with such litigation, including the investigation and analysis thereof, to be reimbursed to the non-controlling Party
on an as-incurred basis), including: (a) if required for the purposes of any cross claim or counterclaim, the furnishing
of a power of attorney to bring suit in the other Party’s name and/or being named as a party in such suit and as necessary,
becoming a client of the other Party’s legal counsel and agreeing that such legal counsel will act solely under the instruction
of the other Party and will sign a waiver with such legal counsel to that effect and the Party bringing the action shall keep
the other Party and/or their designated legal counsel reasonably informed as to the progress of such action; and (b) providing
reasonable assistance to the controlling Party in connection therewith (including in connection with investigation and analysis
thereof by the non-controlling Party’s legal counsel and advisors). Neither Party shall enter into any settlement of any
actual or threatened litigation under this Section 8.3 where the Product is directly named, without the prior written
consent of the other Party, such consent not to be unreasonably withheld, conditioned or delayed; provided that the Party
whose actions have allegedly infringed the issued patents rights of a Third Party shall have the unilateral right to enter into
any such settlement without the prior written consent of the other Party to the extent such litigation or threatened litigation
involves in any manner such Party’s owned Intellectual Property and such settlement would not be reasonably expected to
adversely affect the other Party’s rights or benefits with respect to such Product or its Commercialization of such Product,
in which case, the other Party’s prior written consent shall be required which consent shall not be unreasonably withheld.

 

    	28

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

8.4          No
Challenges. During the Term: (a) neither Licensee nor any Affiliate thereof shall publicly challenge the validity or enforceability
of the Licensed Patents to the extent directly related to the Agreement; and (b) Licensee shall ensure that no sublicensee or
subcontractor of Licensee or any Affiliate thereof, or any other Third Parties involved in the Development or Commercialization
of the Product (including without limitation, contract manufacturers) shall publicly challenge the validity or enforceability
of the Licensed Patents, to the extent directly related to the Agreement, such that, in the case of clause (b), if such challenge
was successful, any obligation owed to Licensor under this Agreement would be avoided.

 

SECTION 9.
MISCELLANEOUS

 

9.1          Independent
Contractor. Neither Licensor nor Licensee, together in each case with their respective employees and representatives,
are under any circumstances to be considered as employees, partners, joint venturers, agents or representatives of the other by
virtue of this Agreement, and neither shall have the authority or power to bind the other or contract in the other’s name.

 

9.2          Registration
and Filing of this Agreement. To the extent, if any, that either Party concludes in good faith that it or the other Party
is required to file or register this Agreement or a notification thereof with any Regulatory Authority including, without limitation,
the U.S. Securities and Exchange Commission or the U.S. Federal Trade Commission, in accordance with Applicable Law, such Party
shall inform the other Party thereof. Should both Parties jointly agree in writing that either of them is required to submit or
obtain any such filing, registration or notification, they shall cooperate, each at its own expense, in such filing, registration
or notification and shall execute all documents reasonably required in connection therewith. In such filing, registration or notification,
the Parties shall request confidential treatment of sensitive provisions of this Agreement, to the extent permitted by Applicable
Law. The Parties shall promptly inform each other as to the activities or inquiries of any such Regulatory Authority relating
to this Agreement, and shall reasonably cooperate to respond to any request for further information therefrom on a timely basis.

 

9.3          Notices.
Any notice or other communication required or permitted hereunder shall be in writing and shall be deemed given when so delivered
in person, by overnight courier, by facsimile transmission (with receipt confirmed by automatic transmission report) or two (2)
Business Days after being sent by registered or certified mail (postage prepaid, return receipt requested), as follows:

 

    	29

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

	If to Licensee:	Cynapsus Therapeutics Inc.
	 	828 Richmond Street West
	 	Toronto, Ontario
	 	Canada M6J 1C9
	 	Attention:  Chief Executive Officer
	 	Telephone: 416-703-2449
	 	Facsimile:  416-703-8752
	 	 
	With a copy to:	Borden Ladner Gervais LLP
	 	40 King Street West, Suite 4200
	 	Toronto, Ontario M5H 3Y4
	 	Attention:  Jeffrey Graham
	 	Telephone:  416-367-6174
	 	Facsimile:  416-361-7377
	 	 
	If to Licensor:	MonoSol Rx, LLC
	 	30 Technology Drive
	 	Warren, New Jersey 07059
	 	Attn:  Vice President, Business Development
	 	Facsimile No.:  908.561.1209
	 	 
	With a copy to:	Day Pitney LLP
	 	One Jefferson Road
	 	Parsippany, New Jersey 07054
	 	Attention:  Thomas A. Zalewski, Esq.
	 	Facsimile No.:  973.966.1015

 

Either Party
may by notice given in accordance with this Section 9.3 to the other Party designate another address or person for
receipt of notices hereunder.

 

9.4          Equitable
Remedies. Each Party specifically recognizes that any breach by it of Section 2 or Section 5 may cause irreparable injury
to the other Party and that actual damages may be difficult to ascertain, and in any event, may be inadequate. Accordingly (and
without limiting the availability of legal or equitable, including injunctive, remedies under any other provisions of this Agreement),
each Party agrees that in the event of any such breach, the other Party shall be entitled to seek injunctive relief and such other
legal and equitable remedies as may be available.

 

    	30

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

9.5          Binding
Effect; No Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective
successors and permitted assigns. Neither Licensor nor Licensee may assign any of its rights or delegate any of its liabilities
or obligations hereunder, whether by operation of law, or otherwise, without the prior written consent of the other Party, provided,
however, without the prior written consent of the other Party, either Party may assign this Agreement in connection with a Business
Combination, unless the assignee of the Licensee is engaged, to a material extent, in manufacturing water-soluble polymer films,
compounds, and solutions, in which case the prior written consent of the Licensor would be required. Notwithstanding the above,
either Party may assign any of its rights to payments of royalties and any other amounts due under this Agreement to any of its
Affiliates or any Third Party. Any assignee shall agree in writing to be bound by all of the obligations of the assigning Party
hereunder. Any purported assignment or transfer in violation of this Section 9.5 will be void ab initio and
of no force or effect.

 

9.6          No
Implied Waivers; Rights Cumulative. No failure on the part of Licensor or Licensee to exercise and no delay in exercising
any right, power, remedy or privilege under this Agreement, or provided by statute or at law or in equity or otherwise, including
the right or power to terminate this Agreement, shall impair, prejudice or constitute a waiver of any such right, power, remedy
or privilege or be construed as a waiver of any breach of this Agreement or as an acquiescence therein, nor shall any single or
partial exercise of any such right, power, remedy or privilege preclude any other or further exercise thereof or the exercise
of any other right, power, remedy or privilege.

 

9.7          Severability.
If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions
of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in
part or degree shall remain in full force and effect to the extent not held invalid or unenforceable. The Parties further agree
to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision that shall achieve,
to the extent possible, the economic, business and other purposes of such invalid or unenforceable provision.

 

9.8          Amendment.
This Agreement may not be amended and no provision hereof may be modified or waived, except by an instrument in writing duly executed
by each of the Parties hereto.

 

9.9          Rules
of Construction. The Parties hereto agree that they have been represented by counsel during the negotiation and execution
of this Agreement and, therefore, waive the application of any law, regulation, holding or ruling of construction providing that
ambiguities in an agreement or other document shall be construed against the Party drafting such agreement or document.

 

9.10        Publicity.
The Parties intend to issue a joint press release upon the execution of this Agreement. The Parties shall jointly agree to the
language of the joint press release prior to issuance. Parties shall also jointly agree on any future press releases and other
public statements disclosing the existence of or relating to this Agreement prior to any such release or disclosure; provided,
however, that neither Party shall be prevented from complying with any duty of disclosure it may have pursuant to Applicable
Law, including securities laws applicable to a public company.

 

    	31

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

9.11        Expenses.
Except as expressly set forth herein, each Party shall bear all fees and expenses incurred by such Party in connection with, relating
to or arising out of the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated
hereby, including attorneys’, accountants’ and other professional fees and expenses.

 

9.12        Governing
Law; Waiver. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New
Jersey without regarding to its conflict of laws principles. Each of Licensor and Licensee hereby irrevocably submits with regard
to any action or proceeding for itself and in respect to its property, generally and unconditionally, to the non-exclusive jurisdiction
of the Federal Courts located in New Jersey. The Parties waive trial by jury in any suit or action brought for the resolution
of any dispute under this Agreement.

 

9.13        Entire
Agreement. This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof
and supersede all prior agreements, written or oral, between the Parties.

 

9.14        Third
Party Beneficiaries. None of the provisions of this Agreement, express or implied, is intended to be or shall be for the
benefit of or enforceable by any Person (including, without limitation, any creditor of either Party hereto) other than Licensee
and Licensor and their respective successors and permitted assigns. No such Person shall obtain any right under any provision
of this Agreement or shall by reason of any such provision make any claim in respect of any debt, liability or obligation (or
otherwise) against either Party hereto.

 

9.15        Interpretation
and Construction. The headings of Sections in this Agreement are provided for convenience only and shall not affect its
construction or interpretation. All references to “Section” or “Sections” refer to the corresponding Section
or Sections of this Agreement. All words used in this Agreement shall be construed to be of such gender or number as the circumstances
require. Unless otherwise expressly provided in this Agreement, the word “including” does not limit the preceding
words or terms and shall be deemed to be followed by the words “without limitation.” Unless otherwise expressly provided
in this Agreement, the terms “shall have responsibility for”, “shall be responsible for” or the like,
shall be deemed to be followed by “and shall be obligated to duly carry out such responsibility.”

 

9.16        Counterparts;
Signatures. This Agreement may be executed in multiple counterparts, all of which, when executed, shall be deemed to be
an original and all of which together shall constitute one and the same document. Signatures provided by facsimile or e-mail transmission
shall be deemed to be original signatures.

 

    	32

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives, effective
as of the Effective Date.

 

	 	CYNAPSUS THERAPEUTICS INC.
	 	 
	 	By:	/s/ Anthony Giovinazzo
	 	Name:	Anthony Giovinazzo
	 	Title:	President and Chief Executive Officer
	 	 
	 	MONOSOL RX, LLC
	 	 
	 	By:	/s/ Keith Kendall
	 	Name:	Keith Kendall
	 	Title:	Chief Executive Officer

 

[Signature
Page to License Agreement]

 

     

     

    

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
BY

CYNAPSUS THERAPEUTICS
INC.

 

Portions herein identified by
[**] have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. A complete copy of this document has been filed separately with the Securities and Exchange Commission.

 

Schedule
1.1B

 

Licensed
Patents as of the Effective Date

 

[**]Exhibit

EXECUTIVE EMPLOYMENT AGREEMENT
AGREEMENT, dated April 1, 2016 (the “Agreement”), by and between Innophos Holdings, Inc., a Delaware corporation (the “Company”), and Hermanus (Han) Kieftenbeld (the “Executive”).
RECITAL
Whereas, it is in the best interests of the Company and its subsidiaries to provide the Executive with the compensation and benefits as provided herein in order to retain the services of the Executive and to permit the Executive to focus on the interests of the Company, its subsidiaries and its stockholders.
AGREEMENT
For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Executive and the Company agree as follows
1.Effective Date.  The term “Effective Date” means April 1, 2016.  The Agreement supersedes any other oral or written agreement or understanding between the Company and the Executive.
2.Employment Period.  The Company hereby agrees to employ the Executive, and the Executive hereby agrees to be employed by the Company, on the terms and subject to the conditions of this Agreement, for the period commencing on the Effective Date and ending on December 31, 2017 (the “Initial Period”).  Following the Initial Period, the Agreement shall automatically renew for successive one-year periods (“Renewal Period”), unless either party gives notice of non-renewal to the other party at least ninety (90) days prior to the end of the Initial Period or any Renewal Period, as applicable.  For purposes of this Agreement, the “Employment Period” shall include the Initial Period and any subsequent Renewal Period.
3.Terms of Employment.
(a)Position and Duties.
(i)Position.  During the Employment Period, the Executive shall serve as the Company’s Senior Vice President and Chief Financial Officer, with duties, powers and responsibilities provided in the Company’s Bylaws for such office, if any, and otherwise commensurate with such title and office.  The Executive shall report directly to the Company’s President and Chief Executive Officer.
(ii)Exclusivity.  During the Employment Period, and excluding any periods of disability, vacation and sick leave to which the Executive is entitled, the Executive agrees to devote substantially all of his attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the Executive’s responsibilities hereunder, to use the Executive’s reasonable best efforts to perform such responsibilities.  During the Employment Period, it shall not be a violation of this Agreement for the Executive to:  (A) with the approval of the Chief Executive Officer, serve on corporate, civic or charitable boards or committees; (B) with the approval of the Chief Executive Officer, deliver lectures, fulfill speaking engagements or teach at educational institutions; and (C) manage personal and family investments; all so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities; and, in the case of the 

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Executive’s management of his personal and family investments, so long as all such investment management activities comply with applicable law and any ethics, conflict of interest, insider trading and other similar policies enacted by the Company from time to time.
(iii)Place of Business.  The Executive’s place of business shall be at the Company’s Cranbury, New Jersey headquarters location, subject to temporary assignment and business travel as may be reasonably necessary to conduct the Company’s business.  
(b)Compensation.
(i)    Base Salary.  During the Employment Period, the Executive shall receive an annual base salary (“Annual Base Salary”) of Four Hundred Twenty-Five Thousand Dollars ($425,000).  The Annual Base Salary shall be reviewed by the Compensation Committee (the “Committee”) of the Company’s Board of Directors (the “Board”) no less frequently than annually during the Employment Period and may be increased (but not decreased) at the discretion of the Committee or the Board.  If the Executive’s Annual Base Salary is increased, the increased amount shall be the new Annual Base Salary for the remainder of the Employment Period, subject to continued annual review and adjustment.  The Annual Base Salary shall be payable in installments subject to legally required tax withholdings, consistent with the Company’s payroll procedures in effect from time to time.
(ii)    Annual Bonus.  In addition to the Annual Base Salary, the Executive shall be eligible to earn, for each calendar year ending during the Employment Period, an annual bonus (an “Annual Bonus”) on terms and conditions, including performance goals, as set forth from time to time in the Company’s Executive, Management and Sales Incentive Plan or such other short-term written bonus plan in effect during the Employment Period (collectively, the “Bonus Plan”).  The Executive’s annual target bonus (the “Target Bonus”) shall be sixty percent (60 %) (the “Target Percentage”) of the Executive’s Annual Base Salary and may be increased (but not decreased) at the discretion of the Committee or the Board.  Provided that the Executive is employed by the Company at the end of the applicable calendar year, the Executive’s Annual Bonus shall be fully vested upon the close of the calendar year to which it relates, and unless deferred by the written agreement of the Company and the Executive in accordance with Section 409A (as hereafter defined), shall be paid promptly after the close of such year but in any event on or before March 15 of the calendar year following the calendar year for which the Annual Bonus is earned.
(iii)    Long-Term Incentive Compensation.  During the Employment Period, the Executive shall participate in the Company’s long term incentive compensation arrangements, including without limitation the Company’s Long Term Equity Incentive Plan and successor plans, if any (collectively, the “LTI”), as such arrangements are in effect from time to time, on terms and conditions generally applicable to the highest level of the Company’s executive employees.  The Executive’s target awards for LTI purposes shall be determined separately for each new performance measurement period by the Committee within ninety (90) days of the commencement of each performance measurement period and, subject to the performance measurement cycle(s) established by the Committee, no less frequently than every twelve (12) months during the Employment Period.  Notwithstanding the foregoing, the Executive's LTI award for 2016 shall have a date of grant value, as calculated on a basis consistent with LTI awards to all other similarly-situated executives, of 90% of the Executive's Annual Base Salary.  LTI awards in the Committee’s or the Board’s discretion may be granted in the form of stock options, restricted stock, phantom stock, cash, stock appreciation rights or units, performance shares or any combination thereof, or other form approved by the Committee or the Board (collectively, “LTI Awards”), as provided in the LTI.  Provided the Executive is employed by the Company at the end of the applicable 

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calendar year (except as otherwise provided in Paragraph 5 below), the Executive’s LTI Awards shall be fully vested upon the close of the performance period to which they relate.  Unless deferred by the written agreement of the Company and the Executive in accordance with Section 409A, the Executive’s LTI Awards shall be paid promptly after the close of such performance period but in any event on or before March 15 of the calendar year following the calendar year in which the Executive first acquires a vested right to receive such LTI Award.
(iv)    Incentive, Pension, Savings and Retirement Plans.  During the Employment Period, the Executive shall be entitled to participate in all other compensation and incentive plans, practices, policies and programs, and all savings and retirement plans, practices, policies and programs, in each case on terms and conditions no less favorable than the terms and conditions generally applicable to the highest level of Company’s United States-based executive employees.
(v)    Welfare Benefit Plans.  During the Employment Period, the Executive and the Executive’s spouse and eligible dependents, as the case may be, shall participate in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and its affiliates on terms and conditions no less favorable than the terms and conditions generally applicable to the highest level of the Company’s executive employees.
(vi)    Expenses.  During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the Company’s policies, practices and procedures in effect from time to time for executive employees.
(vii)    Fringe Benefits.  During the Employment Period, in addition to the other benefits and entitlements as provided herein, the Executive shall be entitled to fringe benefits on the same basis as those provided generally to the highest level of Company’s United States-based executive employees.
(viii)    Vacation.  During the Employment Period, the Executive shall be entitled to four (4) weeks paid vacation per year (which may be increased (but not decreased) at the discretion of the Committee or the Board) in accordance with the plans, policies, programs and practices of the Company.
(ix)    Withholding Requirements.  All grants and payments to the Executive are subject to and conditioned upon satisfaction of all tax withholding requirements.  The Executive shall execute all documents and take all action reasonably deemed necessary by the Company to ensure compliance with all such withholding requirements.
(x)    Legal Fees. Within 30 days of the execution of this Agreement, the Company shall directly pay to Outten & Golden LLP the reasonable attorney’s fees actually incurred by Executive in connection with review and negotiation of this Agreement, provided that the Executive provides any documentation reasonably requested by the Company evidencing such fees.
4.    Termination of Employment.
(a)    Death or Disability.  The Employment Period and the Executive’s employment shall terminate automatically upon the Executive’s death during the Employment Period.  If the Executive becomes Disabled during the Employment Period (pursuant to the definition of Disability set forth below), the Company may notify Executive in accordance with Paragraph 4(g) of this Agreement of its 

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intention to terminate the Executive’s employment.  In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after Executive’s receipt of such notice (the “Disability Effective Date”) unless the Executive has returned to full-time performance of the Executive’s duties and presented reasonable evidence that the Executive has not incurred a Disability, both within thirty (30) days after receipt of such notice.  For purposes of this Agreement, “Disability” shall mean the Executive’s absence from the Executive’s duties with the Company on a full-time basis for one hundred eighty (180) consecutive days as a result of mental or physical incapacity.  Such incapacity must be total and permanent based on a good faith assessment by the Company and must also qualify the Executive for benefits under the Company’s long-term disability program covering the Executive.
(b)    Termination by the Company with or without Cause.  The Company may terminate the Employment Period and the Executive’s employment during the Employment Period with or without Cause.  For purposes of this Agreement, “Cause” shall mean:
(i)    other than by reason of a physical or mental incapacity, any continued and willful failure of the Executive at any time to attempt in good faith to perform the Executive’s duties with the Company, including a continued and willful failure by the Executive to attempt in good faith to meet reasonable, material performance expectations that are not measured by Company economic performance, which is not cured by the Executive within sixty (60) days after receiving notice from the Company identifying such deficiencies; or
(ii)    the willful engaging by the Executive in illegal conduct or gross misconduct that is materially and demonstrably injurious to the Company; or
(iii)    conviction of the Executive of a felony (other than a traffic-related felony) or a guilty or nolo contendere plea by the Executive with respect thereto; or
(iv)    a material breach by the Executive of any material provision of this Agreement; or
(v)    a willful violation by the Executive of a material legal requirement, or of any material written Company policy or procedure, that in either case is materially and demonstrably injurious to the Company; or
(vi)    the Executive’s failure to obtain or maintain, or inability to qualify for, any license (other than a driver’s license) required by law for the performance of the Executive’s material job responsibilities, or the suspension or revocation of any such license held by the Executive as a result of an action or inaction by the Executive; provided that, if such failure, suspension or revocation is curable, the Company shall not have the right to terminate the Executive’s employment for Cause pursuant to this Paragraph 4(b)(vi) unless the Executive does not cure the failure within a reasonable time (not less than sixty (60) days) after receiving notice of such deficiency, provided, in no event shall Cause exist under this clause (vi) so long as the Executive is diligently pursuing a cure of such failure, suspension or revocation in good faith and the failure is cured within one hundred twenty (120) days after receiving such notice.
(c)    Willfulness.  For purposes of Paragraph 4(b), no act or failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive without the reasonable, good faith belief that the Executive’s act or omission was in accordance with, or not contrary to, the duties and responsibilities of Executive’s position.  Any act, or failure to act, based upon express authority given by the Company with respect to such act or omission or based upon the 

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advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in the best interests of the Company.
(d)    Termination by Executive with or without Good Reason.  The Executive may terminate the Employment Period and his employment with or without Good Reason.  Termination with Good Reason shall be treated for purposes of this Agreement as a termination by the Company “without Cause.”  For purposes of this Agreement, “Good Reason” shall mean, in the absence of a written consent of the Executive:
(i)    a material reduction in the Executive’s authority, title or duties, or the assignment to the Executive of duties that are inconsistent in a significant way with the Executive’s position; or a change in the Executive’s reporting requirements so that the Executive reports to someone other than the Chief Executive Officer or
(ii)    any reduction by the Company of the Executive’s Annual Base Salary other than a good faith reduction, which is remedied by the Company within thirty (30) business days after receiving notice from the Executive; or
(iii)    any reduction by the Company of the Target Percentage applicable to Executive’s Target Bonus; or
(iv)    any material failure by the Company to comply with and satisfy any material provision of this Agreement, excluding for this purpose any action not taken in bad faith and which is remedied by the Company within thirty (30) business days after receiving notice from the Executive; or
(v)    any order from any person to whom the Executive reports, directing the Executive to take any action or to refrain from taking any action that in Executive’s good-faith, considered and informed judgment violates any applicable legal or regulatory requirement, provided that such order continues in effect and is not revoked within thirty (30) days after receiving notice from the Executive; or
(vi)    relocation of Executive’s principal place of employment to a location that is at least fifty (50) miles farther from the Executive’s place of business as provided in this Agreement.
The Executive’s mental or physical incapacity following the occurrence of an event described above in clauses (i) through (vi) shall not affect the Executive’s ability to terminate employment for Good Reason.
(e)    Sunset on Right to Terminate for Good Reason. 
(i)    Except as further set forth herein, the Executive shall notify the Company in writing of the existence of any circumstances constituting Good Reason within one hundred twenty (120) days after learning of any such circumstances.  The Company shall then have an additional thirty (30) days to investigate and provide a written determination setting forth the results of such investigation and any applicable remedy.  If the circumstances constituting Good Reason have not been fully cured by the Company within such thirty (30) day period, the Executive shall have an additional sixty (60) days to exercise the right to terminate for Good Reason.
(ii)    The Executive shall be conclusively deemed to have learned of such circumstances on the date of any notice by the Company to the Executive concerning such circumstances.  

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If the Executive does not timely do so, the right to terminate for Good Reason shall lapse and be deemed waived, and the Executive shall not thereafter have the right to terminate for Good Reason unless further circumstances occur which themselves give rise to a right to terminate for Good Reason, in which case the provisions of this Paragraph 4(f) shall once again apply, based on such further circumstances.
(iii)    In the case of the Company’s relocation of (or announced intention to relocate) Executive’s principal place of employment under Paragraph 4(d)(v), the circumstances giving rise to Executive’s right to terminate for Good Reason shall be deemed to have arisen, for purposes of Executive’s notice obligation, on the earliest date Executive has notice of the Company’s intention to relocate Executive’s principal place of employment.  Within thirty (30) days after receiving such notice, Executive shall notify the Company in writing of his intention to terminate his or her employment for Good Reason under Paragraph 4(d)(v) as of the effective date of such relocation.  Executive may withdraw his notice of intention to terminate his employment under this paragraph, and the Company may revoke its relocation or intention to relocate Executive’s principal place of employment, in which case Paragraph 4(d)(v) shall not apply
(f)    Notice of Termination.  Any termination by the Company with or without Cause, or by the Executive with or without Good Reason, shall be communicated by Notice of Termination to the other party in accordance with Paragraph 13(b) of this Agreement.  For purposes of this Agreement, a “Notice of Termination” means a notice which:  (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as defined in subparagraph (h) below) is other than the date of receipt of such notice, specifies the termination date (which date shall within thirty (30) days after the giving of such notice).  The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not constitute a waiver of any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder.
(g)    Date of Termination.  Except as otherwise provided in Paragraph 12(a) hereof, “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date, specified therein, that is within thirty (30) days of such notice, as the case may be, (ii) if the Executive’s employment is terminated by the Company without Cause, the Date of Termination shall be the date on which the Company notifies the Executive of such termination, or any later date, specified therein, as the case may be, (iii) if the Executive’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Executive or the Disability Effective Date, as the case may be, (iv) if the Executive’s employment is terminated by the Executive other than for Good Reason, the Date of Termination shall be the date of receipt of the Notice of Termination or any later date, specified therein, that is within thirty (30) days of such notice, subject to the Company’s acceptance of such proposed later Date of Termination; and (v) if the Executive’s employment is terminated upon the expiration of the Employment Period under Paragraph 2, the Date of Termination shall be the last day of the Employment Period.
5.    Obligations of the Company upon Termination.

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(a)    Upon any termination of the Executive’s employment, the Company shall pay or provide to the Executive (or his estate, in the case of the Executive’s death), the “Obligations,” which shall consist of:
(vii)    the Executive’s Annual Base Salary through the Date of Termination;
(viii)    any earned and vested but unpaid Annual Bonus and/or LTI Awards with respect to any calendar year or performance period ended prior to the Date of Termination;
(ix)    any unreimbursed business expenses incurred by the Executive prior to the Date of Termination but which remain unpaid on the Date of Termination;
(x)    any accrued and unpaid vacation and sick days; and
(xi)    other benefits, if any, to which the Executive is entitled under other applicable plans, programs, agreements and arrangements of the Company or its affiliates.  Except as otherwise provided herein, the amounts payable to the Executive (or his estate) pursuant to clauses (i), (iii) and (iv) above shall be paid in a single cash lump sum within thirty (30) days after the Date of Termination.
Any amounts to be paid or provided pursuant to clause (ii) above shall be provided as set forth in Paragraph 3(b)(ii) or (iii), as applicable.  Any benefits to be paid or provided to the Executive (or his estate) pursuant to clause (v) above shall be paid or provided in the manner and at the time or times provided under the terms of applicable plan, program, agreement or arrangement.
(b)    Severance Pay, Etc.  Notwithstanding any severance plan or policy (“Severance Policy”) generally in effect during the Employment Period for employees of the Company or its subsidiaries, if, during the Employment Period, the Company terminates the Executive’s employment without Cause, or the Executive terminates his employment for Good Reason, or the Executive’s employment terminates at the end of the Employment Period following a non-renewal by the Company under Paragraph 2, then, in addition to the Obligations to be paid or provided to the Executive as provided in Paragraph 5(a) above, but conditioned upon the Executive’s execution (and, if applicable, non-revocation) of a release in the form of the Release attached hereto as Exhibit A (the “Release”):
(i)    the Company shall pay to the Executive severance compensation in an amount equal to the Annual Base Salary and Annual Bonus amounts that the Executive would have earned under Paragraphs 3(b)(i) and 3(b)(ii), above, (A) if the Executive had remained employed for twelve (12) months following the Date of Termination (such period or assumed continuing employment is hereinafter referred to as the “Severance Period”), but in no event shall payments for such Severance Period commence prior to the effective date of the Release (and any payments that would have been made but for the fact that the Release had not yet been effective shall be made upon such Release’s becoming final and binding, without interest) and (B) if, for each calendar year or portion thereof within the Severance Period, the Executive had earned, based on the assumed attainment of all applicable performance goals for such year, an Annual Bonus in an amount equal to the Target Bonus in effect for his or her immediately prior to his or her Date of Termination, pro-rated for any period less than a full calendar year.  The Annual Base Salary payments to be made pursuant to the preceding sentence shall be paid in equal monthly installments, and each Annual Bonus amount payable pursuant to the preceding sentence shall be paid at the same time following the close of the calendar year to which it relates as it would have been paid pursuant to Paragraph 3(b)(ii) if the Executive had remained employed at the close of such year.

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(ii)    for the period commencing on the Date of Termination and concluding twelve (12) months after the Date of Termination, the Company shall continue to provide health insurance coverage to the Executive and the Executive’s spouse and eligible dependents on the same basis such benefits were provided immediately prior to the Date of Termination (provided that such subsidized continuation coverage is subject to the filing of health care continuation coverage elections by the Executive, the Executive’s spouse and eligible dependents under the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”);
(iii)    the Company shall cause all unvested equity-based awards, cash awards, LTI Awards and other long term incentive awards (collectively, the “Long Term Incentive Awards”) granted to the Executive (whether or not granted pursuant to this Agreement) to become immediately vested in full as of the Date of Termination, to the extent that such awards would have become vested during the Severance Period if the Executive had remained in employment with the Company until the end of such period.  In the case of any Long Term Incentive Awards subject to attainment of any performance targets, all targets applicable to such award are deemed to be fully attained during the applicable performance period.  In the case of any Long Term Incentive Awards that are payable in cash  and become vested pursuant to the preceding sentence, this amount shall be paid to the Executive in a single cash lump sum within thirty (30) days following the Date of Termination, or, if later, upon the effective date of the Release.  Any stock options that become so vested shall remain exercisable for the lesser of (a) the remainder of their respective original terms, or (b), until the end of the Severance Period;
(iv)    the Company shall pay to the Executive an additional severance payment in a single lump sum in cash within ten (10) days of the Date of Termination, or, if later, upon the effective date of the Release, in an amount equal to the Target Percentage multiplied by the Annual Base Salary, pro-rated for any period less than a full calendar year; and
(v)    if the Executive is not exempted or cannot by reason of this Agreement be exempted from the Severance Policy, the amount of the severance pay described in clause (i) above shall be offset by the present value of any amount to be paid to the Executive pursuant to the Severance Policy.
All payments to which the Executive is entitled under this Paragraph 5(b) and which are conditioned upon and subject to the Release will commence as set forth herein, but in no event shall such Release become effective, if at all, more than sixty (60) days after the Date of Termination and, provided further, that if such sixty (60) day period spans two calendar years, the payments will commence in the second calendar year.
(vi)    Notwithstanding the foregoing provisions of this Paragraph 5(b), if the Executive is found to have breached the Executive’s obligations under any restrictive covenant agreements entered into with the Company or the covenants referenced in Paragraph 9 of this Agreement, (i) the Executive shall no longer be entitled to, and the Company shall no longer be obligated to pay, any remaining unpaid portion of the amounts otherwise payable under this Paragraph 5(b) as of the date of such breach, and (ii) the Executive shall repay any portion of such amounts previously paid or provided to the Executive; provided, however, that Executive shall be entitled to retain the first $1,000 of any such amounts, which will be considered full and adequate consideration for the Executive’s general release.  (For purposes of determining repayment of benefits, if any, the Executive shall repay the Company its costs incurred to provide such benefits.)  Any disputes with respect to the application of this Paragraph 5(b)(vi) will be subject to Paragraph 7 hereof; provided that during the pendency of any such dispute, the 

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Company will be entitled to withhold any payments pursuant to this Paragraph 5(b) so long as the Company believes, in good faith, that it is reasonably likely to prevail in such dispute.
(c)    Death.  If the Executive’s employment is terminated by reason of the Executive’s death, the Company shall pay or provide the Executive’s estate or beneficiaries with the Obligations and shall provide the health care continuation coverage to the Executive’s spouse and eligible dependents, if any, in accordance with the provisions of Paragraph 5(b)(ii) above, for the greater of the length of time defined in the applicable benefit plan or policy in effect at the time of the Executive’s death or a twelve (12) month period commencing as of the Date of Termination.  In addition, all of the Executive’s outstanding Long Term Incentive Awards shall be treated as described in Paragraph 5(b)(iii) above in respect of a twelve (12) month period following the Date of Termination for purposes of this subparagraph (vi).  The Obligations shall be paid to the Executive’s estate or beneficiary, as applicable, in the manner and at the time or times provided in Paragraph 5(a) above.
(d)    Disability.  If the Executive’s employment is terminated by reason of the Executive’s Disability, the Company shall pay or provide the Obligations to the Executive and shall provide the health care continuation coverage to the Executive and the Executive’s spouse and eligible dependents, if any, in accordance with the provisions of Paragraph 5(b)(ii) above, for the greater of the length of time defined in the applicable benefit plan or policy in effect at the time the Executive becomes disabled or a twelve (12) month period commencing as of the Date of Termination.  In addition, all of the Executive’s outstanding Long Term Incentive Awards shall be treated as described in Paragraph 5(b)(iii) above in respect of a twelve (12) month period following the Date of Termination for purposes of this subparagraph (d).  The Obligations shall be paid to the Executive in the manner and at the time or times provided in Paragraph 5(a) above.
(e)    Cause; Other than for Good Reason.  If the Company terminates the Executive’s employment for Cause, or the Executive terminates his employment without Good Reason, in either case, during the Employment Period, the Company shall pay or provide the Obligations to the Executive as set forth in Paragraph 5(a).  In no event shall a termination without Good Reason by the Executive, as described in Paragraph 4(d), constitute a breach of this Agreement by the Executive.
(f)    Change in Control.  
(i)    If the Executive’s employment is terminated (1) by the Company without Cause, (2) by the Executive for Good Reason, or (3) at the end of the Employment Period following non-renewal under Paragraph 2 (each, a “Non-Cause Termination”), in each case within twenty-four (24) months after a Change in Control, the Company shall pay or provide the Executive with the payments and benefits set forth in Paragraphs 5(b)(i)-(iii) at the time and in the manner provided therein, except that the period to pay or provide payments and benefits (other than medical coverage benefits) shall be extended to twenty-four (24) months.  Medical coverage benefits under such circumstances will only be extended to eighteen (18) months.
(ii)    If the Executive’s employment is terminated as a Non-Cause Termination, within six (6) months before a Change in Control, the Executive shall be entitled to receive the same payments and benefits as he would have received in accordance with Paragraph 5(f)(i) above had the Executive’s employment with the Company terminated immediately following the occurrence of the Change in Control.  
(iii)    To the extent that any cash amounts which the Executive is entitled to receive pursuant to Paragraphs 5(f)(i)and(ii) exceed the amounts, if any, that were paid to the Executive 

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under Paragraph 5(b) upon the Executive’s termination of employment prior to the Change in Control, the excess amounts shall be paid to the Executive in a single cash lump sum (x) within 10 days after the date of the Change in Control or (y), the time specified in Paragraph 5(b) for such payment to be made, whichever date is later.  Notwithstanding the foregoing, any payments or benefits accruing to the Executive solely as a result of a Change in Control or similarly defined event under any Company plan or arrangement shall accrue and be provided to the Executive in accordance with such plan or arrangement and only to the extent that such payment or benefit is more favorable to the Executive than the same or similar provision provided for herein.
(g)    Code Section 4999.
(i)    If any Payments (as defined in Paragraph 5(h)(ii) to be made to or for the benefit of the Executive under this Agreement or under any plan or arrangement maintained by the Company or its affiliated companies are subject to the excise tax (the “Excise Tax”) under section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), then such Payments shall be reduced by the smallest amount necessary in order for no portion of the Executive’s total Payments to be subject to the Excise Tax.
(ii)    No reduction in any of the Executive’s Payments shall be made pursuant to Paragraph 5(g)(i) above if the After Tax Amount of the Payments payable to Executive without such reduction would exceed the After Tax Amount of the reduced Payments payable to Executive in accordance with Paragraph 5(g)(i) above.  For purposes of the foregoing, (i) the “After Tax Amount” of the Executive’s Payments, as computed with, and as computed without, the reduction provided for under Paragraph 5(g)(i), shall mean the amount of the Payments, as so computed, that the Executive would retain after payment of all taxes (including without limitation any federal, state or local income taxes, the Excise Tax or any other excise taxes, any employment, social security or medicare taxes, and any other taxes) imposed with respect to such Payments in the year or years in which payable; and (ii) the amount of such taxes shall be computed at the rates in effect under the applicable tax laws in the year in which the 280G Change in Control occurs, or if then ascertainable, the rates in effect in any later year in which any Payment is expected to be paid following the 280G Change in Control (and if not so ascertainable, using then current rates), and in the case of any income taxes, by using the maximum combined federal, state and (if applicable) local income tax rates then in effect under such laws.   
(iii)    Any reduction in the Executive’s Payments required to be made pursuant to Paragraph 5(g)(i) above (the “Required Reduction”) shall be made as follows: first, any outstanding performance-based cash or equity incentive awards the performance periods for which had not ended, and the performance goals for which had not been attained, prior to the occurrence of the Change in Control, to the extent such awards are treated as Payments, shall be reduced, by cancellation of the acceleration of the vesting and time of payment of such awards; second, any severance payments or benefits, or any other Payments the full amounts of which are treated as contingent on the Change in Control pursuant to paragraph (a) of Treas. Reg. §1.280G-l, Q/A 24 shall be reduced; and third, any cash or equity awards, or nonqualified deferred compensation amounts, that vest solely based on the Executive’s continued service with the Company, and that pursuant to paragraph (c) of Treas. Reg. § 1.280G-l, Q/A 24 are treated as contingent on the Change in Control because they become vested as a result of the Change in Control, shall be reduced, by canceling the acceleration of their vesting.  In each case, the amounts described in clauses first, second and third of the preceding sentence, (x) shall be reduced only to the extent of the portion thereof, if any, that is treated as contingent on the Change in Control under the regulations issued under Code section 280G,  (y) shall be reduced in the inverse order of their originally scheduled dates of payments or vesting, as applicable, and  (z) shall be so reduced only to the extent necessary to achieve the 

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Required Reduction. Notwithstanding anything to the contrary, any such reduction shall be made in accordance with Section 409A of the Code (as defined below).
(iv)    A determination as to whether any reduction in the Executive’s Payments is required pursuant to this Paragraph 5(g), and if so, as to which Payments are to be reduced and the amount of the reduction to be made to any such Payments, shall be made by no later than thirty (30) days prior to the closing of the transaction or the occurrence of the event that constitutes the Change in Control, or as soon thereafter as administratively practicable. Such determinations, and the assumptions to be utilized in arriving at such determinations, shall be made by the Company in consultation with the Auditor (as hereinafter defined) (at the expense of the Company).  The Auditor shall be a nationally recognized public accounting firm, law firm or consulting firm.
(h)    For purposes of this Agreement:
(i)A “Change in Control” means the date on which the earliest of the following events occurs:
(A)any Person, as defined in this Paragraph 5(h), becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 50% or more of (x) the then outstanding shares of common stock of the Company or (y) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the “Company Voting Stock”);
(B)any Person becomes the beneficial owner of 50% or more of (x) the then outstanding shares of common stock of Innophos (as defined in this Paragraph 5(h)) or (y) the combined voting power of the then outstanding securities of Innophos entitled to vote generally in the election of directors;
(C)the closing of a sale or other disposition (whether by merger, consolidation, reorganization or otherwise) of all or substantially all of the assets of the Company, or the Company adopts a plan of liquidation providing for the distribution of all or substantially all of its assets ;
(D)the Company combines with another entity (by merger or otherwise) but, immediately after the combination, the stockholders of the Company immediately prior to the combination hold, directly or indirectly, 50% or less of the Company Voting Stock, other ownership interests of the combined entity, and any parent entity owning 100% of the Company Voting Stock or other ownership interests of such combined entity (there being excluded from the number of shares or other ownership interests held by such stockholders, but not from the voting stock of the combined entity, any shares or other ownership interests received by affiliates of such other entity in exchange for stock or other ownership interests of such other entity); or
(E)the majority of the Board consists of individuals other than Incumbent Directors, which term means the members of the Board on the date of the employment agreement; provided that any person becoming a director subsequent to such date whose election or nomination for election was supported by two-thirds of the directors who then comprised the Incumbent Directors shall be considered to be an Incumbent Director; 
(ii)Notwithstanding anything herein to the contrary, for purposes of this Agreement, a Change in Control shall not include any transaction, whether by bona fide public offering or private placement to institutional investors of any class or series of capital stock of the Company, determined by the Board to be effected for the purpose of equity financing, including the conversion of any debt securities of the Company into equity securities of the Company.  The definition of a Change in 

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Control under this Agreement is not intended to modify or otherwise affect the definition of such term or any similar term under any other plan or arrangement of the Company.  For purposes of this Paragraph 5(h), a “Person” means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, other than employee benefit plans sponsored or maintained by the Company and corporations controlled by the Company,  and “Innophos” means Innophos, Inc., a Delaware corporation.
(iii)“Payment” shall mean any payment or benefit in the nature of compensation that is to be paid or provided to the Executive or for his benefit in connection with a Change in Control (whether under this Agreement or otherwise, including by the entity, or by any affiliate of the entity, whose acquisition of the stock or assets of the Company or any of their affiliates constitutes the Change in Control), if the Executive is a “disqualified individual” (as defined in section 280G(c) of the Code) at the time of the Change in Control, to the extent that such payment or benefit is “contingent” on the Change in Control within the meaning of section 280G(b)(2)(A)(i) of the Code and the regulations issued thereunder.
6.    Non-exclusivity of Rights.  Except as otherwise specifically provided in this Agreement, nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company or any of its affiliated companies for which the Executive may qualify, nor shall anything herein limit or otherwise negatively affect such rights as the Executive may have under any contract or agreement with the Company or any of its affiliated companies.  Amounts that are vested benefits, consisting of any compensation previously deferred by the Executive, or that the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any other contract or agreement with the Company or any of its affiliated companies at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program or other contract or agreement, except as explicitly modified by this Agreement.
7.    Arbitration; No Set Off.  Any controversy, dispute or claim arising out of or relating to this Agreement, the Executive’s employment with the Company, or the termination thereof (collectively, “Covered Claims”) shall be resolved by binding arbitration, to be held in Newark, New Jersey, before a panel of three arbitrators with expertise in employment and labor matters, in accordance with the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association (“AAA Employment Rules”). Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.  The Company shall promptly advance to the Executive (and his beneficiaries) any and all costs and expenses (including without limitation attorneys’ fees) incurred by the Executive (or any of his beneficiaries) in resolving any such Covered Claim; provided, however, that to the extent that the Executive’s claims/defenses do not prevail in such arbitration, then the panel, in its discretion, may determine that some or all of the amounts advanced by the Company shall be repaid by the Executive (or his beneficiaries) to the Company.  Pending the resolution of any Covered Claim, the Executive (and his beneficiaries) shall continue to receive all payments and benefits due from the Company and its affiliated companies under this Agreement or otherwise.  Except as provided below, the Company’s obligation to make or cause to be made the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company or any of its affiliated companies may have against the Executive or others.
8.    Nature of Obligation.  The Company shall not be required to establish a special or separate fund or other segregation of assets to assure payments under this Agreement, and, if the Company shall make any investments to aid it in meeting its obligations hereunder, the Employee shall have no right, title or interest in or to any such investments except as may otherwise be expressly 

-12-

provided in a separate written instrument relating to such investments and nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between the Company and the Employee or any other person.  To the extent that any person acquires a right to receive payments under this Agreement such right shall be no greater than the right of an unsecured creditor.
9.    Restrictive Covenants.
(a)    The Executive acknowledges that his employment as an executive officer of the Company creates a relationship of confidence and trust between the Executive and the Company with respect to confidential and proprietary information applicable to the business of the Company and its clients.  The Executive further acknowledges the competitive nature of the business of the Company.  Accordingly, it is agreed that the restrictions contained in this Paragraph 9 are reasonable and necessary for the protection of the interests of the Company and that any violation of these restrictions could cause substantial and irreparable injury to the Company.
(b)    The Executive and the Company agree that provisions of Exhibit B attached to this Agreement shall be made a part hereof as if set forth at length in the body of this Agreement.
10.    Successors.
(a)    This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by the Executive and the Executive’s legal representatives.
(b)    No rights or obligations of the Company under this Agreement may be assigned or transferred by the Company without the Executive’s prior written consent, except that such rights or obligations may be assigned or transferred pursuant to a merger or consolidation in which the Company is not the continuing entity, or a sale, liquidation or other disposition of all or substantially all of the assets of the Company, provided that the terms and conditions of Paragraph 10(c) below are satisfied.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and permitted assigns.
(c)    The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly, and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place, all within ten (10) days after the occurrence of the applicable event.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.
11.    Indemnification and Directors’ and Officers’ Insurance.
(a)    Scope of Indemnification.  The Company shall, and shall cause Innophos to, indemnify and defend the Executive to the fullest extent permitted under Delaware law (including without limitation the Delaware General Corporation Law and the Company’s (and Innophos’s) Certificate of Incorporation and By Laws) from and against any expenses (including but not limited to attorneys’ fees, expenses of investigation and preparation and fees and disbursements of the Executive’s accountants or other experts), judgments, fines, penalties and amounts paid in settlement (collectively, the “Indemnified 

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Liabilities”) actually and reasonably incurred by the Executive in connection with any proceeding in which the Executive was or is made party or was or is involved (for example, as a witness) by reason of the fact the Executive was or is employed by the Company or was or is an officer or director of the Company, and/or Innophos, except that such obligation shall not extend to any proceeding to the extent initiated or instituted by the Executive.
(b)    Insurance.  The Company agrees to continue and maintain directors’ and officers’ liability insurance policies covering the Executive at least to the extent provided on the date hereof.  Such insurance coverage shall continue as to the Executive even if the Executive has ceased to be a director, officer, member, employee or agent of the Company with respect to acts or omissions which occurred prior to his cessation of employment with, or service as a director or officer of, the Company.  Insurance contemplated under this Paragraph 11(b) shall inure to the benefit of the Executive’s heirs, executors and administrators.
12.    Section 409A Compliance.  The parties intend that any severance or other compensation payable to the Executive under this Agreement be paid or provided in compliance with Section 409A of the Code and all regulations, guidance, and other interpretative authority issued thereunder (“Section 409A”) such that there will be no adverse tax consequences, interest, or penalties for the Executive under Section 409A as a result of the payments and benefits so paid or provided to him.  The parties agree to modify this Agreement, or the timing (but not the amount) of the payment of the severance or other compensation, or both, to the extent necessary to comply with Section 409A.  In addition, notwithstanding anything to the contrary contained in any other provision of this Agreement, the payments and benefits to be provided to the Executive under this Agreement shall be subject to the provisions set forth below.
(a)    The date of the Executive’s “separation from service”, as defined in the regulations issued under Section 409A, shall be treated as the Executive’s Date of Termination for purpose of determining the time of payment of any amount (other than Obligations) that becomes payable to the Executive pursuant to Paragraph 5 hereof upon the termination of his employment.
(b)    In the case of any amounts that are payable to the Executive under this Agreement, or under any other “nonqualified deferred compensation plan” (within the meaning of Section 409A) maintained by the Company or any of its affiliated companies, in the form in the form of “a series of installment payments”, as defined in Treas. Reg. §1.409A-2(b)(2)(iii), (A) the Executive’s right to receive such payments shall be treated as a right to receive a series of separate payments under Treas. Reg. §1.409A-2(b)(2)(iii), and (B) to the extent any such plan does not already so provide, it is hereby amended to so provide, with respect to amounts payable to the Executive thereunder.
(c)    If the Executive is a “specified employee” within the meaning of the Section 409A at the time of the Executive’s “separation from service” within the meaning of  Section 409A, then any payment otherwise required to be made to the Executive under this Agreement on account of the Executive’s separation from service, to the extent such payment (after taking in to account all exclusions applicable to such payment under Section 409A) is properly treated as deferred compensation subject to Section 409A, shall not be made until the first business day after (i) the expiration of six months from the date of the Executive’s separation from service, or (ii) if earlier, the date of  the Executive’s death (the “Delayed Payment Date”). On the Delayed Payment Date, there shall be paid to the Executive or, if the Executive has died, to the Executive’s estate, in a single cash lump sum, an amount equal to aggregate amount of the payments delayed pursuant to the preceding sentence, without interest.

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(d)    All expenses eligible for reimbursement hereunder shall be paid to the Executive promptly, but in any event by no later than December 31 of the calendar year following the calendar year in which such expenses were incurred. The expenses incurred by the Executive in any calendar year that are eligible for reimbursement under this Agreement shall not affect the expenses incurred by the Executive in any other calendar year that are eligible for reimbursement hereunder. The Executive’s right to receive any reimbursement hereunder shall not be subject to liquidation or exchange for any other benefit.
(e)    If, as of the date on which, or by which, any payment required to be made to the Executive (or his estate) under this Agreement, calculation of the amount of such payment is not administratively practicable due to events beyond the control of the Executive (or his estate) then such payment shall be made to the Executive (or his estate) within ten (10) business days after, but in any event by no later than December 31 next following, the date on which calculation of the amount of such payment first becomes administratively practicable.
13.    Miscellaneous.
(a)    This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.  The parties may exchange and agree on details concerning the provisions of this Agreement, and the conditions to which the rights and privileges under this Agreement are subject.  No provision of this Agreement may be waived except by a written waiver explicitly identifying the provision and signed by the party making the waiver.
(b)    All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:
	
		
	If to the Executive:
	Hermanus (Han) Kieftenbeld

At the most recent address on file at the Company.

and

Outten & Golden LLP
3 Park Ave, 29 FL
New York, NY 10016
Attn: Wendi S. Lazar, Esq.

	If to the Company:
	Innophos Holdings, Inc. 
259 Prospect Plains Road 
Cranbury, NJ  08512 
Attn: Senior Vice President – Human Resources

and

Innophos Holdings, Inc. 
259 Prospect Plains Road 
Cranbury, NJ 08512 
Attn: Chair, Compensation Committee

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or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Any notice, request or other communication given in connection with this Agreement shall be in writing and shall be deemed to have been given (i) when personally delivered to the recipient (provided a written acknowledgment of receipt is obtained), (ii) three (3) business days after mailing by certified or registered mail, postage prepaid, return receipt requested or (iii) two business days after being sent by a nationally recognized overnight courier (provided that a written acknowledgment of receipt is obtained by the overnight courier), to the party concerned at the address indicated above (or such other address as the recipient shall have specified by ten (10) days’ advance notice given in accordance with this Paragraph 13(b)).
(c)    The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.
(d)    The Company shall withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.
(e)    The Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.
(f)    Definitions set forth in this Agreement and any terms of this Agreement which conflict with the provisions of any other policy, plan, contract, or other arrangement which applies to the Executive shall supersede and replace the conflicting provisions of such other policy, plan, contract or arrangement to the extent necessary to resolve the conflict.
(g)    The interpretation and construction of this Agreement (including the Exhibits hereto) shall be governed by the internal laws of the State of New Jersey as a contract to be performed in such state and without regard to the conflict of law provisions thereof.
(h)    Notwithstanding Paragraph 7 above, the Company may seek equitable relief in the event of a breach by the Executive of the covenants set forth in Exhibit B hereto.  In that regard, the parties hereby consent to exclusive jurisdiction and agree that such proceeding will be conducted in the federal or state courts of the State of New Jersey sitting in and for the County of Middlesex or otherwise in such state and county wherein the headquarters of the Company is located at the time; provided such other location shall be in the United States of America.  To effect the foregoing, the Executive hereby subjects herself to the in personam jurisdiction of such courts and waives all objections as to improper venue for such forum posited as provided in the preceding sentence.
(i)    Except as otherwise expressly set forth in this Agreement, upon the expiration of the Employment Period, the respective rights and obligations of the parties shall survive such expiration to the extent necessary to carry out the intentions of the parties as embodied in the rights and obligations of the parties under this Agreement.  This Agreement shall continue in effect until there are no further rights or obligations of the parties outstanding hereunder and shall not be terminated by either party without the express prior written consent of both parties.
(j)    The Company represents and warrants to the Executive that (i) the execution, delivery and performance of this Agreement by the Company has been fully and validly authorized by all 

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necessary corporate action, (ii) the officer signing this Agreement on behalf of the Company is duly authorized to do so, (iii) the execution, delivery and performance of this Agreement does not violate any applicable law, regulation, order, judgment or decree or any agreement, plan or corporate governance document to which the Company is a party or by which it is bound and (iv) upon execution and delivery of this Agreement by the Executive and the Company, it shall be a valid and binding obligation of the Company enforceable against it in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.

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	HERMANUS (HAN) KIEFTENBELD
	INNOPHOS HOLDINGS, INC.

	

Signed: /s/ Hermanus Kieftenbeld
	

By: /s/ Jean Marie Mainente

	

Date: March 31, 2016
	

Title: SVP, Human Resources

	 
	

Date: April 1, 2016

For good and valuable consideration, the undersigned hereby agrees to be bound by Paragraph 11(a) hereof.
	
		
	 
	INNOPHOS, INC.

	 
	

By:  /s/ Jean Marie Mainente

	 
	

Title: SVP, Human Resources

	 
	

Date: April 1, 2016

EXHIBIT A
FORM OF RELEASE
1.    Release of Claims.
The Executive recognizes that the payments and other benefits to be received by his include amounts and benefits above and beyond any amounts otherwise due his for services rendered or to be rendered or under the Company’s general policies or programs. Except as set forth in Section 3 herein, in consideration of, and as a condition to these payments, the Executive hereby, to the extent allowed by law, releases and forever discharges the Company and all of its affiliates, present or former officers, directors, shareholders, Executives, agents, successors or assigns (the “Releasees”) from any claim concerning past, present or future employment and benefits thereunder, and of and from all claims or causes of action or other demands whatsoever, which the Executive ever had, now has, or hereafter can, shall or may have against the Releasees, arising out of or related to his  employment relationship with the Company or the termination of that relationship (the “Claims”).
This release or giving up of the Claims is binding on the Executive, his heirs, assigns, and/or representatives.
Listed below are the statutes and legal theories from which the Executive has released and discharged the Releasees and under which the Executive will not bring any Claim.  In the event that the law prohibits a release or waiver of Claims under any such statute or theory, the Executive hereby waives the right to seek or accept damages in a proceeding under the statute or theory and/or hereby acknowledges that the Executive has no valid Claim under such statute or theory.  The Claims released are any alleged violation by the Company of:
		
	•
	The National Labor Relations Act, as amended;

		
	•
	Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq.;

		
	•
	Sections 1981 through 1988 of Title 42 of the United States Code, as amended;

		
	•
	The Employment Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001 et seq.;

		
	•
	The Immigration Reform Control Act, as amended;

		
	•
	The Americans with Disabilities Act;

		
	•
	The Age Discrimination in Employment Act, as amended, and including the Older Workers Benefit Protection Act, 29 U.S.C. § 621 et seq.;

		
	•
	The Fair Labor Standards Act, as amended;

		
	•
	The Occupational Safety and Health Act, as amended;

		
	•
	The Family and Medical Leave Act;

		
	•
	The Consolidated Omnibus Budget Reconciliation Act, as amended;

		
	•
	Any federal, state or local laws against discrimination or protecting whistleblowers, or any other federal, state or local law or common law relating to employment, wages, hours, or any other terms and conditions of employment.

The Claims released also are:
		
	•
	Any public policy, contract, tort, or other common law claim or cause of action, including but not limited to breach of implied or express contract, intentional or negligent infliction of emotional distress, negligent misrepresentation, defamation, wrongful discharge;

		
	•
	Any claim or cause of action for commission, back wages or other compensation, including, but not limited to, commissions, back wages or compensation, related to or arising out of any payments or sums the Company has received or may receive in the future from any source at any time;

		
	•
	Any claim or allegation for costs, fees, or other expenses, including attorneys’ fees, incurred in any matter or proceeding.

2.    Unknown Claims Released.  The Executive understands that the Executive is releasing claims that the Executive may not know about.  This is the Executive’s knowing and voluntary intent, even though the Executive recognizes that someday the Executive might learn that some or all of the facts they currently believe to be true are untrue and even though the Executive might then regret having signed this Release.  Nevertheless, the Executive assumes that risk and agrees that this Release shall remain effective in all respects in any such case.  The Executive expressly waives all rights they might have under any law that is intended to protect the Executive from waiving unknown claims, and the Executive understands the significance of doing so.
3.    Claims Not Released.  Anything to the contrary notwithstanding contained herein, nothing herein shall release Company or any Releasee from any claims or damages based on (i) any right or claim that arises after the date of this Release, (ii) any Claim or Claims relating to any rights, benefits or entitlements (including equity awards) which are accrued or vested or otherwise payable (whether immediately or over time) as of the Date of Termination under the Employment Agreement between Executive and the Company and any employee benefit plans, programs, equity award plans, awards and/or programs in which Executive participated, or (iii) the Executive’s eligibility for indemnification and advancement of expenses in accordance with any agreement with the Company, applicable laws or the certificate of incorporation and by-laws of Company, or any applicable insurance policy.
4.    No Participation in Claims.  The Executive understands that if this Agreement were not signed, the Executive could have the right to voluntarily assist other individuals or entities in bringing claims against the Releasees.  The Executive hereby waives that right and agrees not to provide any such assistance, other than assistance in an investigation or proceeding conducted by an agency of the United States, state or local government.  To the extent that the law prohibits the Executive from waiving his right to bring and/or participate in the investigation of a claim, the Executive nevertheless waives his right to seek or accept any damages or relief in any proceeding.
5.    Nonadmission of Liability.  The Executive recognizes and agrees that this Release is not intended to imply any wrongdoing on the Releasees’ parts with respect to his employment or its termination, or any other reason, and shall not constitute evidence of the same.
6.    Voluntary Agreement.  The Executive’s decision to enter into this Release is based solely on the mutual considerations described above and is wholly his free act and deed.  Before signing this Release, the Executive has had the opportunity for up to twenty-one (21) days to carefully consider the terms and ramifications of this Release and the opportunity to consult with his advisors, legal or otherwise, which the Company has encouraged the Executive to do.
7.    Governing Law and Interpretation.  This Release shall be governed and conformed in accordance with the laws of the State of New Jersey, without regard to its conflict of laws provisions.
8.    Separate Enforceability of Terms.  If any terms of this Release are declared invalid by any court of competent jurisdiction, the Release shall be deemed amended by excluding the invalid term or terms, and all remaining terms shall continue in full force and effect.  The Executive and the Company agrees to execute such amendments as may be necessary to accomplish the intent of this paragraph, which is to maintain in force all terms of this Release to the full extent permitted by law.
9.    Limitations on Changing Release.  This Release may not be modified, altered or changed except upon express written consent of both parties wherein specific reference is made to this Release.
10.    Revocation; Effectiveness.  The Executive may revoke this Release for a period of seven (7) days following the day the Executive executes this Release.  Any revocation within this period must be submitted, in writing, to the Company at the address listed below.  The revocation must be delivered to Senior Vice President Human Resources, Innophos Inc., 259 Prospect Plains Road, Cranbury, NJ 08512. and postmarked within seven (7) days of execution of this Release.  This Release shall not become effective or enforceable until the revocation period has expired.  If the last day of the revocation period is a Saturday, Sunday, or legal holiday in Illinois, then the revocation period shall not expire until the next following day which is not a Saturday, Sunday, or legal holiday.
NOTWITHSTANDING THE EFFECTIVENESS OF THIS RELEASE, THE EXECUTIVE ACKNOWLEDGES THAT CERTAIN CONSIDERATION FOR THIS RELEASE AND/OR CERTAIN COMPENSATION AND BENEFITS PAYABLE TO HIS MAY BE CONDITIONED ON HIS EXECUTING AND NOT REVOKING THE RELEASE WITHIN SIXTY DAYS AFTER HIS TERMINATION OF EMPLOYMENT.
THE EXECUTIVE HAS HAD TWENTY ONE (21) DAYS TO CONSIDER THIS RELEASE AND CONFIRMS THAT THE COMPANY ADVISED HIS TO CONSULT WITH HIS ATTORNEY BEFORE EXECUTING THE RELEASE.
THE EXECUTIVE AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS RELEASE DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL TWENTY ONE (21) DAY CONSIDERATION PERIOD.
HAVING ELECTED TO EXECUTE THIS RELEASE, TO FULFILL THE PROMISES SET FORTH HEREIN, THE EXECUTIVE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION ENTERS INTO THIS AGREEMENT AND GENERAL RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS THE EXECUTIVE HAS OR MIGHT HAVE AGAINST THE RELEASEES.

IN WITNESS WHEREOF, the parties knowingly and voluntarily executed this Release as of the date set forth below:
Innophos Holdings, Inc.
By:                        
Name:
Title:
Date:                        
Hermanus (Han) Kieftenbeld                         
Current personal mailing address:
                        
                        
Date:                        

EXHIBIT B
NONCOMPETITION AND NONSOLICITATION AGREEMENT
1.    General.
The terms of this Noncompetition and Nonsolicitation Agreement are made part of the Employment Agreement to which it is an exhibit, and, except as expressly provided in this Noncompetition and Nonsolicitation Agreement, shall be of unlimited duration.  For purposes of this Exhibit, the “Noncompete Period” means that period commencing on the Effective Date and ending at the conclusion of the Severance Period following the Date of Termination, except that if the Company does not have an obligation to pay the Executive for the Severance Period, the Noncompete Period will be twelve (12) months.  The “Nonsolicitation Period” shall be measured in the same manner and shall end at the conclusion of the Severance Period following the Date of Termination, except that if the Company does not have an obligation to pay the Executive for the Severance Period, the Nonsolicitation Period will be twelve (12) months . Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Employment Agreement to which this Exhibit is attached.
2.    Confidential Information.
a.    The Executive acknowledges that the information, observations and data, including trade secrets, obtained by the Executive while employed or retained by the Company and its controlled affiliates concerning their business and affairs (collectively, “Confidential Information”) are the property of those entities.  Therefore, the Executive agrees that, except as required by law, court order, an arbitrator, a mediator or by other legal process, including, but not limited to, depositions, interrogatories, court testimony, arbitration, and the like, and except in connection with any litigation, arbitration or mediation involving the Employment Agreement (including the Exhibits thereto), including the enforcement of the Employment Agreement (including the Exhibits thereto), the Executive shall not at any time disclose to any unauthorized person or use for his own purposes any Confidential Information without the prior written consent of the Company’s Board of Directors (which may delegate to an authorized officer authority to give such consent), unless and to the extent that: (i) the Confidential Information becomes generally known to and available for use by the public or generally known in the industry other than as a result of the Executive’s acts or omissions, (ii) the Executive discloses or uses such information in the performance of his duties as an employee and an officer of the Company (including services to its controlled affiliates) in the ordinary course of business, or (iii) the Executive discloses such information to third parties with whom the Company or its affiliates have entered into a non-disclosure agreement and such disclosure is made in the ordinary course performance of the Executive’s duties and responsibilities to the Company and its affiliates.  The Executive  shall deliver to the Company promptly following the termination of his employment, or at any other time the Company may reasonably request, all memoranda, notes, plans, records, reports, computer tapes, printouts and software and other documents and data (and copies thereof) embodying the Confidential Information or Work Product (as defined below)  which the Executive may then possess or control, provided that the Executive may retain (i) papers and other materials of a personal nature, including, but not limited to, photographs, correspondence, personal diaries, calendars and rolodexes, personal files and phone books, (ii) information showing his compensation or relating to reimbursement of expenses, (iii) information that the Executive reasonably believes may be needed for tax purposes and (iv) copies of plans, programs and agreements relating to his or her employment, or termination thereof, with the Company. Notwithstanding the foregoing or anything in this Agreement to the contrary, Confidential Information or Work Product shall not include: any information in the Executive’s possession or known to the Executive prior to employment with the Company, including but not limited to information that is located on the Executive’s rolodex (whether paper or electronic), any information that is generally known in the industry or in the public domain, or any information that becomes generally known in the industry or in the public domain through no wrongful act on the Executive’s part.
b.    The Executive represents and warrants to the Company that, to the best of his knowledge, the Executive has nothing that contains any material information which belongs to any former employer that the Executive is not entitled to have or use for the benefit of the Company and its controlled affiliates.  If at any time the Executive discovers that the foregoing statement is incorrect in any material respect, the Executive shall promptly return any such materials to the Executive’s former employer or obtain any necessary consents.  The Executive understands that Company does not want any such materials, and that the Executive will not be permitted to use or refer to any such materials in the performance of the Executive’s duties.
3.    Intellectual Property, Inventions and Patents.
The Executive acknowledges that all discoveries, concepts, ideas, inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports, patent applications, copyrightable work and mask work (whether or not including any confidential information) and all registrations or applications related thereto, all other proprietary information and all similar or related information (whether or not patentable) which (i) relate to the Company’s or any of its controlled affiliate’s actual or anticipated business, research and development or existing or future products or services and (ii) are conceived, developed or made by the Executive (whether individually or jointly with others) while employed by the Company or its affiliates or their predecessors in interest (collectively, “Work Product”), belong to the Company or such affiliate, as the case may be.  The Executive shall disclose Work Product promptly to the Company or the applicable affiliate in the manner reasonably required under procedures established by those entities and, at the expense of the Company or applicable affiliate, as the case may be, perform all actions reasonably requested on behalf of any such entity (whether during or after any period of employment or engagement) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorney and other instruments).  The Employee acknowledges and agrees that the Company’s or applicable affiliate’s ownership of Work Product includes all future rights arising from the Work Product, which rights do not yet exist, as well as new uses, media, means and forms of exploitation throughout the universe exploiting current or future technology yet to be developed.
4.    Non-competition and Non-solicitation.
a.    Non-competition.  The Executive acknowledges that, during the course of the Executive’s employment or similar engagement with the Company and its controlled affiliates (including their respective predecessors in interest), the Executive has or will become familiar with the trade secrets of, and other Confidential Information concerning, those entities and that the Executive’s services have been, and are reasonably expected to be, of special, unique and extraordinary value to the Company and its affiliates.  As a result, the Executive agrees that, during the Noncompete Period, the Executive shall not directly or indirectly own any interest in, manage, control, participate in, be employed by, consult with, render services for, or in any manner engage in any Competing Business within any geographical area in which the Company or any of its controlled affiliates engage or have active plans at the Date of Termination to engage in such businesses.  The Executive acknowledges and agrees that this restriction is without specific geographic limitation inasmuch as the Company and its affiliates conduct business on a nationwide and international basis, that its sales and marketing prospects are for continued expansion both nationally and internationally, that access to the Company’s Confidential Information would provide any national or international competitor with an unfair competitive advantage, and that, therefore, the restrictions set forth in this section are reasonable and properly required for the adequate protection of the legitimate interests of the Company.  Nothing herein shall prohibit the Executive from owning beneficially not more than 2% of any class of outstanding equity securities or other comparable interests of any issuer that is publicly traded, so long as the Executive has no active participation in the business of such issuer.  For purposes hereof, the term “Competing Business” means any business that is engaged in the production or sale of phosphates or other products that compete with the products produced, distributed or sold by the Company or its controlled affiliates (or are in the process of being actively developed by such entities) as of the Date of Termination.  This restriction shall not prevent the Executive from working for a subsidiary, division, venture or other business or functional service unit (collectively a “Unit”) of a Competing Business so long as (i) such Unit is not itself a Competing Business, (ii) the Executive does not manage or participate in business activities or projects of any Unit that is a Competing Business, and (iii) the Executive otherwise strictly complies with the restrictive covenants contained in this Exhibit.  
b.    Non-solicitation.  During the Nonsolicitation Period, the Executive shall not directly or indirectly through another person or entity: (i) induce or attempt to induce any executive or other key employee of the Company or any controlled affiliate to leave the employ of any of those entities, or in any way interfere with the relationship between the Company or any such affiliate and any such person; (ii) solicit any person who was an executive or other key employee of the Company or any controlled affiliate at any time within the one year period prior to an offer of employment to such person; or (iii) induce or attempt to induce any customer, supplier, licensee, licensor, franchisee or other business relation of the Company or any controlled affiliate to cease doing business with any Company-affiliated entity, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and Company affiliated entity.  The following shall not be deemed a violation of this provision (a) providing customary business references for Company executives or other key employees at their request, (b) being involved in a general solicitation to the public of general advertising, or (c) if an entity with which the Executive is associated hires or engages any employee of the Company or any of its controlled affiliates, if the Executive was not, directly or indirectly, involved in hiring or identifying such person as a potential recruit or assisting in the recruitment of such employee. For purposes hereof, the Executive shall only be deemed to have been involved “indirectly” in soliciting, hiring or identifying an employee if the Executive (x) directs a third party to solicit or hire the Employee, (y) identifies an employee to a third party as a potential recruit or (z) aids, assists or participates with a third party in soliciting or hiring an employee.
5.    Nature of Restrictive Covenants; Enforcement.
a.    For purposes of enforcement, the restrictive covenants contained in this schedule are independent of any other provision of this Exhibit.  As a result, the existence of any claim or right of set-off that the Executive may have or allege against the Company, whether based on this Exhibit or otherwise, shall not prevent the enforcement of the covenants or be deemed to mitigate any harm suffered by the Company.  Notwithstanding the above, Executive shall be released from the  Noncompete Period and the Nonsolicitation Period post-termination of employment if the Company fails to pay Executive all material amounts due under  Paragraph 5(b) or Error! Reference source not found. of the Employment Agreement, as and if applicable, following notice to the Company and reasonable opportunity to cure.
b.    Because the Executive’s services are unique (resulting in the Company’s need for the restrictions in this schedule) and because the Executive has access to Confidential Information, Work Product and other proprietary resources representing valuable assets of the Company, the parties agree that the Company and its affiliates might suffer irreparable harm from a breach or threatened breach by the Executive of the restrictions set forth in this Exhibit and that money damages would not be an adequate remedy for any such non-compliant conduct.  In the event of a breach or threatened breach of the restrictive covenants in this Exhibit, the Company (including its affected affiliates and their respective successors or assigns) in addition to other rights and remedies existing in their favor, shall be entitled to seek specific performance and/or injunctive or other equitable relief from a court of competent jurisdiction in order to enforce, or prevent any violations of, the provisions in this Exhibit (without posting a bond or other security, any requirement of which is waived by the Executive).  In the event of any breach by the Executive of the restrictions set forth in this Exhibit, the Noncompete Period shall be tolled until such breach has been cured.  If, at the time of enforcement, a court holds that restrictions contained in this Exhibit are unreasonable under circumstances then existing, the parties agree that the maximum period, scope or geographical area reasonable under such circumstances (or as otherwise allowed by governing law) are to be substituted for the stated period, scope or area provided in this Exhibit, and the restrictions are to be deemed reformed to that extent and shall be enforceable as so reformed to the fullest extent permitted by law to provide protection to the Company.
The Executive acknowledges and agrees that (i) the restrictions contained in this Exhibit are reasonable and will not subject his to undue hardship, (ii) the Executive has had the opportunity to review these restrictions and the other provisions of this Agreement with legal counsel and such other advisors as the Executive deems appropriate, (iii) the Executive has carefully read and fully understands all of the provisions of this Exhibit, and (iv) the Executive is voluntarily entering into the Employment Agreement containing this Exhibit without any reliance upon any representations or statement made by the Company with regard to the subject matter, basis or effect of this Exhibit, other than those in writing, including those contained in the Employment Agreement and this Exhibit.
6.    Non-Disparagement.
Executive shall not at any time make any statement, written or otherwise, that disparages or criticizes the Company or any related party. The Company (which, for this purpose, shall be limited to members of the Company’s Board of Directors, and its Named Executive Officers) shall not at any time make any statement, written or otherwise, that disparages or criticizes Executive.

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