Document:

Exhibit 10.4

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made by and between Steve C. Bierman (the “Employee”) and CNH America LLC, (the “Company”).

 

RECITALS

 

The Company and Employee acknowledge the following:

 

1.                                       Employee has valuable expertise and experience which will enable him to provide valuable business and management services to the Company; and

 

2.                                       The Company desires to employ Employee in its business or in such other businesses as the Company may from time to time engage, and Employee desires to accept such employment.

 

AGREEMENTS

 

In consideration of the mutual covenants and agreements set forth in this Agreement, the parties agree as follows:

 

1.                                      Employment

 

1.1                                 Duties. Employee shall serve as an employee of the Company and will faithfully and to the best of Employee’s ability perform the duties of Employee’s position and any other duties assigned by the Company from time to time.

 

1.2                                 Best Efforts. Employee agrees to devote Employee’s entire business time, best efforts, skill and attention to the discharge of Employee’s duties while employed by the Company.

 

1.3                                 Duty to Act in the Best Interest of the Company. Employee shall not act in any manner, directly or indirectly, which may damage the business of the Company or which would adversely affect the goodwill, reputation or business relations of the Company with its customers, the public generally or with any of its other employees.

 

2.                                      Term of Employment

 

2.1                                 Term. This Agreement shall become effective upon execution and shall remain in effect until the termination of the Employee’s employment. The parties understand and agree that this Agreement does not alter the at-will status of the Employee’s employment and that either party shall have the right to terminate Employee’s employment at any time subject to the provisions set forth below.

 

	
 
    	
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2.2                                 Termination for Cause. The Company shall have the right to terminate Employee’s employment with the Company for any of the following causes (each a “Termination for Cause”):

 

(a)                     Conviction of Employee for, or entry of a plea of guilty or nolo contendere by Employee with respect to, any felony or any crime involving an act of moral turpitude;

 

(b)                    Engaging in any act involving willful malfeasance, fraud, embezzlement or dishonesty (including alteration or falsification of records) by Employee in performing services for or on behalf of the Company;

 

(c)                     Conduct which is detrimental to the reputation, goodwill or business operations of the Company;

 

(d)                    Material failure by Employee to perform his duties;

 

(e)                     Employee’s continued absence from his/her duties without the consent of the Employee’s supervisor after receipt of notification from the Company, other than absence due to bona fide illness or disability as defined herein;

 

(f)                       Employee’s failure or refusal to comply with the directions of his/her supervisor or with the policies, standards and regulations of the Company, provided that such directions, policies, standards or regulations do not require Employee (i) to take any action which is illegal, immoral or unethical or (ii) to fail to take any action required by applicable law, regulations or licensing standards;

 

(g)                    Conduct, actions, or performance that violates the CNH Business Ethics Policy or Code of Conduct; or

 

(h)                    Employee’s breach of any of the restrictive covenants set forth in Section 5 of this Agreement.

 

Upon the effectiveness of any Termination for Cause by the Company, or a voluntary quit without the approval of the Company, payment of all compensation to Employee under this Agreement shall cease immediately (except for any payment of compensation accrued but unpaid through the date of such Termination for Cause).

 

2.3                                 Termination by the Company Without Cause.

 

(a)                                  The Company shall have the right to terminate Employee’s employment without cause upon written notice to Employee. If the Company terminates Employee’s employment without cause pursuant to this Section 2.3, in lieu of severance benefits under the Company’s Separation Allowance Policy, the Company agrees to pay to the Employee an amount equal to two (2) years’ base salary in effect at the time of separation (the “Severance Payment”). Payment of the Severance Payment shall be made in the same manner and at the same frequency as Employee was paid prior to termination of employment. Company shall be authorized to deduct from Severance Payments paid to Employee such withholding and other applicable taxes as are customarily withheld from employees. In the event of Employee’s termination of employment with Company for any reason other than a Termination for Cause or voluntary quit without the permission of

 

	
 
    	
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Company, Employee shall continue to be eligible for participation in the CNH Supplemental Retiree Medical Plan (“Retiree Medical Plan”), in accordance with its terms and provisions; provided, however, that Employee shall lose eligibility for the Retiree Medical Plan if the Employee violates any provisions of this Agreement including the non-compete provisions.

 

(b)                                 Employee shall be required to sign and not revoke a commercially reasonable release as a condition to receiving the Severance Payment and benefits set forth in paragraph 2.3(a), above, which shall be similar to, as determined by the Company, the sample release attached hereto.

 

2.4                                 Termination Due to Disability or Death. If the Employee is unable to perform his/her duties under this Agreement by reason of physical or mental disability, the Employee’s employment shall be terminated and all compensation to the Employee under this Agreement shall cease immediately (except for any payment of compensation accrued but unpaid through that date, COBRA benefits and other benefits to which the Employee may be entitled notwithstanding termination of his/her employment). The term “disability” as used herein shall mean a condition which prohibits the Employee from performing his/her duties substantially in the manner he/she is capable of performing them on the date of this Agreement, which cannot be removed by reasonable accommodations on the part of the Company, for 60 days or more during any one year period. If the Employee should die during the term of this Agreement, this Agreement shall terminate and all payments to Employee under this Agreement shall cease immediately (except for any such payments accrued but unpaid through the date of death).

 

2.5                                 COBRA Coverage. Any period of continued post-employment medical plan coverage provided in accordance with this Agreement shall count against the minimum period of coverage required by the medical continuation provisions of COBRA and any other applicable legislation.

 

3.                                      Compensation

 

3.1                                 Base Compensation. Subject to Section 2 of this Agreement, during the term of Employee’s employment with the Company, the Company shall pay to Employee an annual salary (“Base Compensation”), which salary shall be set and reviewed annually by the Board of Directors. Employee acknowledges that Employee’s employment and/or continuation of employment is consideration for the covenant made by Employee in Section 5 of this Agreement against post-employment competition, and that said consideration is reasonable and adequate.

 

3.2                         Incentive Compensation. Subject to Section 2 of this Agreement, in addition to the Base Compensation referred to in Section 3.1 of this Agreement, Employee shall be eligible to participate in any incentive pay plan adopted by the Board of Directors for a group of employees that includes executive officers. Any incentive compensation

 

	
 
    	
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under this Section 3.2 and under such incentive pay plan shall be determined in accordance with the terms of such incentive pay plan(s) and need not be uniform among all executive officers.

 

3.3                                 Reimbursement of Business Expenses. During the term of this Agreement, the Company shall reimburse Employee for all ordinary and necessary business expenses incurred by him in connection with the business, upon submission by Employee to the Company of vouchers itemizing such expenses in a form satisfactory to the Company, properly identifying the nature and business purpose of any such expenditure.

 

3.4                                 Benefits. During the term of Employee’s employment with the Company, Employee shall be entitled to participate in such insurance, medical and retirement plans and to be provided such other fringe benefits as have been accorded other similarly-situated employees of the Company, as determined from time to time by the Company. Employee shall also be eligible to participate in the Retiree Medical Plan, in accordance with its terms and conditions. All rights and benefits under such plans shall be determined in accordance with the underlying plan documents.

 

4.                                      Property of the Company/Assignment

 

4.1                                 During Employment. Employee agrees that all works created by Employee, including without limitation software, contracts, fees, commissions, customer lists and any other incident of any business developed or sought by the Company, or earned or carried on by Employee for the Company, are and shall be the exclusive property of the Company for its sole use.

 

Employee hereby grants and assigns to the Company (without additional compensation) his/her entire right, title and interest under applicable laws in and to all software products and modifications thereto, inventions, improvements, drawings, designs, prototypes, patents, patent applications, trade secrets, confidential information, cost information, marketing plans, new product plans, proposed product improvements, research information, customer lists and customer contacts, all other technical and research data, and copyrightable material (including derivative works) made, conceived, developed or acquired by him solely or jointly with others during the period of his/her employment by the Company, but only to the extent the foregoing pertains to the business. During the term of his/her employment with the Company and for two years after the termination of his/her employment with the Company for any reason, Employee shall execute all documents as requested by Company to accomplish such assignment of rights, and shall otherwise cooperate with the Company and its attorneys in the protection and enforcement of the Company’s intellectual property rights, at the expense of Company

 

	
 
    	
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4.2                                 Upon Termination of Employment. Upon termination of employment, any Company property over which Employee has any control, is in Employee’s possession or which was in Employee’s possession or was otherwise entrusted to Employee for use in Employee’s employment must be turned over and must remain on Company premises immediately following Employee’s date of termination. Any Company property which Employee possesses that is not on Company premises as of Employee’s date of termination must be returned to the Company as soon as possible following Employee’s termination. Employee agrees to provide all codes, passwords, usernames, or other identification or information necessary to access any of the Company’s computer files, e-mail accounts, or voicemail systems and agrees to cooperate with the Company in an effort to transfer any files, data, systems, or other information to the Company or its designated agent or employee. Employee agrees that, as of the date of Employee’s termination, Employee will not access or attempt to access any computer, e-mail, voicemail, or other system of the Company. Employee agrees that any breach of any aspect of this paragraph shall entitle the Company to any and all relief provided for under Enforcement, including immediate cessation of any severance payments and benefits under this Agreement and the return of any severance payments previously made to Employee.

 

5.                                      Covenants of Non-Disclosure, Non-Solicitation and Non-Competition

 

5.1                                 During Term of Employment. The Employee agrees during his/her employment with the Company he/she shall not, directly or indirectly, either individually or as an employee, agent, partner, shareholder, consultant or in any other capacity, participate in, engage in or have a financial or other interest in any business which is competitive with the Company or any successor or assign of the Company. The ownership of one percent (1%) or less of the outstanding securities of a publicly-traded company/business, even though that company/business may be a competitor of the Company, shall not be deemed financial participation in a competitor.

 

5.2                                 Upon Termination of Employment. The Employee agrees that, upon voluntary or involuntary termination of employment with the Company and for a period of two (2) years thereafter, he/she will not, anywhere in the United states, as an owner, director, officer, employee, partner, consultant, representative, agent, or in any other capacity, accept a position that is equivalent to the position held with the Company or perform duties or provide services similar to those provided to the Company, with any business that competes with the Company in the type of business conducted by the Company at the time Employee’s employment is terminated, including without limitation any recognized competitor of the Company in the agricultural or construction equipment industries including, but not limited to: John Deere, AGCO, Claas, Kubota, McCormick, Caterpillar, Komatsu, JCB, Doosan, Hyundai, Volvo, Hitachi, Terex, Liebherr or any subsidiaries or affiliates of such entities. The type of business conducted by the Company includes, without limitation, designing, developing, testing, manufacturing, assembling,

 

	
 
    	
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marketing, distributing and selling agricultural and/or construction equipment, parts and components and providing related and ancillary financial and credit services.

 

The Employee further agrees that, upon voluntary or involuntary termination of employment with the Company and for a period of two (2) years thereafter, he/she will not, directly or indirectly, individually or as an employee, agent, partner, shareholder, consultant, or in any other capacity, canvass, contact, solicit or accept any of the Company’s customers with whom the Employee had direct or indirect contact during the two (2) year period preceding his/her termination for the purpose of providing services, products or business that are substantially similar to the services, products or business which the Company provides to said customers.

 

5.3                                 Impairment of Company’s Relationships. The Employee further agrees that during the term of his/her employment and for a period of two (2) years thereafter, he/she will not interfere with or attempt to impair the relationship between the Company and any of its employees nor will the Employee attempt, directly or indirectly, to solicit, entice, or otherwise induce any other employee to terminate his/her association with the Company. The term “solicit, entice or induce” includes, but is not limited to, the following: (a) initiating communications with an employee of the Company relating to possible employment; (b) offering bonuses or additional compensation to encourage employees of the Company to terminate their employment and accept employment with a competitor, supplier or customer of the Company; (c) referring employees of the Company to personnel or agents employed or engaged by competitors, suppliers or customers of the Company; or (d) referring personnel or agents employed or engaged by competitors, suppliers or customers of the Company to employees of the Company.

 

5.4.                              Non-Disclosure of Information

 

(a)                     Confidential Information: As used in this Agreement, “Confidential Information” shall mean any and all information whether generated by the Company or by a third party at the Company’s request, disclosed by the Company to Employee during the period of the Employee’s employ with the Company, including, without limitation, trade secrets, design documents, copyright material, inventions, technology, processes, marketing data, business strategies, financial information and records, product information (including, without limitation, any product designs, specifications, capabilities, drawings, diagrams, blueprints, models and similar items), customer and prospective customer lists, supplier and vendor lists, product pricing formulas, software and similar information, in any form (whether oral, electronic, written, graphic or other printed form or obtained from access to or observation of the Company’s facilities or operations). Confidential Information does not include information or data which is:

 

(1)                  at the time of disclosure, or thereafter becomes, available to the general public by publication or otherwise through (i) no fault or negligence of the Employee or (ii) no breach of this Agreement by Employee;

 

	
 
    	
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(2)                  in the possession of the Employee prior to disclosure thereof by the Company as evidenced by written records of the Employee prepared prior to the date of disclosure of such information to the Employee;

 

(3)                  independently developed by the Employee without the benefit of any of the Confidential Information as evidenced by the written records of the Employee prepared to the date of disclosure of such information to the Employee; or

 

(4)                  disclosed to Employee by a third party having no obligation of confidentiality to the Company with respect to the information so disclosed.

 

(b)                    Trade Secrets: The parties also acknowledge that certain of the Company’s Confidential Information is a “trade secret” (Trade Secret) as that term is defined in 63 Del. Laws, c. 218, § 1, et. Seq..; of the Delaware Uniform Trade Secrets Act, i.e. information, including a formula, pattern, compilation, program, device, method, technique or process, that: a. Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and b. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 

(c)                     Disclosure of Confidential Information: Except as required in the performance of his/her duties of employment, and for a period of two (2) years following the termination of his/her or her employment with the Company, Employee shall not disclose to a third party or use any of the Company’s Confidential Information and shall not remove any of the Company’s Confidential Information in any form or media from the Company’s offices, unless he or she first obtains the written consent of the Company.

 

(d)                    Disclosure of Trade Secrets: Employee shall never disclose to a third party, or use any of the Company’s Trade Secrets, except in the court of his/her employment, and shall not remove any of the Company’s Trade Secrets in any form or media from the Company’s offices, unless he or she first obtains the written consent of the Company. The parties acknowledge that this obligation has no termination date.

 

5.5                                 Waiver of Unintended Effects. It is not the purpose of the Agreement to preclude Employee from engaging in employment that is not competitive with the Company, does not pose a competitive threat to the Company, and does not interfere with the Company’s protectable business interests. If during the term of this Agreement, Employee wishes to engage in a business that may involve a violation of the literal terms of this Agreement but Employee believes it will not pose a competitive threat to the Company, Employee agrees to submit to the Company in writing a request to engage in this business. Any such request must specifically refer to this Agreement. The Company agrees that it will respond to the request with reasonable promptness and that it will not unreasonably withhold permission to engage in the business specified in the request, regardless of the terms of this Agreement, if the business sought to be engaged in is not

 

	
 
    	
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competitive with that of the Company and does not pose a competitive threat to the Company. Any such permission granted by the Company must be in writing, shall extend only to the business specifically identified in Employee’s written request, and shall not otherwise constitute a waiver of the Company’s rights under this Agreement.

 

5.6.                              Common Law of Torts and Trade Secrets. The parties agree that nothing in the Agreement shall be construed to limit or negate the common law of torts or trade secrets where it provides the Company with broader protection than that provided herein.

 

6.                                      Disclosures

 

6.1                                 Upon Employment. Employee represents and warrants to the Company that Employee is not a party to any confidentiality, non-competition, non-solicitation or similar agreements with any third party, or to any agreement the terms of which could prohibit the employee from performing his/her employment duties for the Company, or to any agreement which could be breached by Employee’s performance of Employee’s employment duties for the Company.

 

6.2                                 Upon Termination of Employment. Employee shall promptly notify any subsequent employer during the Non-Compete Period of the terms of this Agreement to ensure that this Agreement is not breached.

 

7.                                      Indemnification

 

The Company shall indemnify and hold harmless Employee from and against any claim of liability or loss (including costs and reasonable attorneys’ fees) arising as a result of Employee’s proper performance of his/her obligations under this Agreement in accordance with the provisions for indemnification of officers of the Company set forth in the Bylaws of the Company.

 

8.                                      Miscellaneous Provisions

 

8.1                                 Assignment and Successors. The Company may assign its rights and obligations under this Agreement to any corporation or other entity which controls, is controlled by, or is under common control with, the Company, without Employee’s consent. Further, if the Company sells all or substantially all of the assets of the business, the rights and obligations of the Company under this Agreement may be assigned without Employee’s consent. In all other circumstances, the rights and obligations of the Company under this Agreement may be assigned with Employee’s consent (which shall not be unreasonably withheld) and shall inure to the benefit of and be binding upon the successors and assigns of the Company. Employee’s obligation to provide services hereunder may not be assigned to or be assumed by any other person or entity.

 

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Company’s Corporate Secretary, and to Employee at his/her address as shown in the Company’s records.

 

8.3                                 Severability. If any provision or portion of this Agreement shall be or become illegal, invalid or unenforceable in whole or in part for any reason, such provision shall be ineffective only to the extent of such illegality, invalidity or unenforceability, without invalidating the remainder of such provision or the remaining provisions of this Agreement. If any court of competent jurisdiction should deem any covenant herein to be invalid, illegal or unenforceable because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable.

 

8.4                                 Integration, Amendment and Waiver. This Agreement constitutes the entire agreement between the Company and the Employee, superseding all prior similar arrangements and agreements, and may be modified, amended or waived only by a written instrument signed by both parties.

 

8.5                                 Governing Law. This Agreement shall be construed in accordance with and governed for all purposes by the laws of the State of Delaware.

 

8.6                                 Interpretation. The headings contained in this Agreement are for reference purposes only, and shall not affect in any way the meaning or interpretation of this Agreement. The language in all parts of this Agreement shall in all cases be construed according to its fair meaning, and not strictly for or against any party. In this Agreement, unless the context otherwise requires, the masculine, feminine and neuter genders and the singular and the plural include one another.

 

8.7                                 Non-Wavier of Rights and Breaches. No failure or delay of any party in the exercise of any right given to such party hereunder shall constitute a waiver unless the time specified for the exercise of such right has expired, nor shall any single or partial exercise of any right preclude other or further exercise thereof or of any other right. The waiver by a party of any default of any other party shall not be deemed to be a waiver of any subsequent default or other default by such party.

 

8.8                                 Enforcement. Employee acknowledges that an irreparable injury will result to the Company and its business in the event of a breach of any of the covenants or obligations of Employee contained Sections 4, 5, and 6 of this Agreement. Employee also acknowledges and agrees that the damages or injuries which the Company may sustain as a result of such a breach are difficult to ascertain and money damages alone would not be an adequate remedy to the Company. Employee therefore agrees that if a controversy arises concerning the rights or obligations of a party under this Agreement or Employee breaches any of the covenants or obligations contained in Sections 4, 5, or 6 of this Agreement, the Company shall be entitled to any injunctive, or other relief necessary to enforce, prevent or restrain any violation of the provisions of this Agreement (without

 

	
 
    	
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posting a bond or other security). Such relief, however, shall be cumulative and non-exclusive and shall be in addition to any other right or remedy to which the Company may be entitled. Employee also agrees that any breach by Employee of Employee’s obligations enumerated in Sections 4, 5, and 6 of this Agreement shall entitle the Company to reimbursement for any and all attorneys fees incurred in enforcing this Agreement or taking action against Employee for breach of Sections 4, 5, or 6 of this Agreement.

 

8.9                                 Internal Revenue Code Compliance. To the extent applicable, it is intended that this Agreement and any payments or benefits due hereunder be subject to all applicable tax withholding and that this Agreement comply with the provisions of Internal Revenue Code (“Code”) Section 409A and that any such payments not constitute excess parachute payments under Code Section 280G.

 

(a)                                  The parties intend for the payments under this Agreement to be exempt from the application of Code Section 409A due to the application of one or more of the exemptions set forth in Treasury Regulation Sections 1.409A-1(b)(4) (short-term deferrals), 1.409A-1(b)(9) (separation pay plans) and/or 1.409A-1(b)(10) (legal settlements). To the extent that any provision of this Agreement is subject to the application of Code Section 409A, it is intended that this Agreement first be bifurcated into payments and benefits that are subject to Code Section 409A and payments and benefits that are not subject to Code Section 409A, Any payments or benefits due hereunder that are subject to Code Section 409A shall be administered and paid in a manner that complies with the provisions of Code Section 409A and such payments will not be delayed, accelerated or otherwise changed except as required to comply with Code Section 409A or as expressly permitted under Code Section 409A. This Agreement shall be administered by the Company in a manner consistent with the intent of the preceding sentences, and any provision that would cause this Agreement to become subject to and then fail to satisfy Code Section 409A shall have no force or effect until amended to comply with Code Section 409A (which amendment may be retroactive to the extent permitted by Code Section 409A). The Company reserves the right to adjust the timing of payments under this Agreement in order to ensure that this Agreement complies with the intent of this Section.

 

(b)                                 Any provision that would, in the reasonable opinion of the Company’s regular tax consultant, cause Employee to receive any excess parachute payments as defined under Code Section 280G(b)(1). shall be null and void and such excess payments shall be forfeited.

 

8.10                           Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument.

 

	
 
    	
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IN WITNESS WHEREOF, the Company and Employee have caused this Employment Agreement to be duly executed as of the date first written above.

 

 

	
EMPLOYEE
    	
 
    	
CNH America LLC:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Steve C. Bierman
    	
 
    	
/s/ Ann Daane
    
	
Steve C. Bierman
    	
 
    	
Ann Daane
    
	
 
    	
 
    	
Vice President
    
	
 
    	
 
    	
Human Resources North America
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
March 23, 2009
    	
 
    	
April 6, 2009
    
	
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11PediatRx Inc.: Exhibit 10.1  - Filed by newsfilecorp.com

TERMINATION AGREEMENT

     This TERMINATION AGREEMENT
(“Termination Agreement”) is entered into as of June 27, 2012, by
and between Apricus Biosciences, Inc., a Nevada corporation
(“Apricus”) and PediatRx Inc., a Nevada corporation
(“PediatRx”).

     WHEREAS, Apricus and PediatRx
(each a “Party” and together the “Parties”) entered
into a term sheet dated January 26, 2012 (the “Term Sheet”) and a
letter agreement dated February 21, 2012 (the “Letter Agreement”),
pursuant to which the Parties contemplated a potential merger transaction
whereby Apricus would acquire PediatRx (the “Merger”);

     WHEREAS, as of June 1, 2012,
Apricus and PediatRx have mutually agreed to terminate discussions regarding the
Merger and thus no longer desire to effect the Merger;

     THEREFORE, in consideration of
the mutual terms and covenants contained herein and in satisfaction of certain
obligations set forth in the Term Sheet and the Letter Agreement, and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
Apricus and PediatRx agree as follows:

     1. Mutual Termination of the
Merger. The Parties hereby acknowledge that they have formally terminated
discussions regarding the Merger pursuant to Section 19(a) of the Term Sheet.

     2. Break-up Fee. Apricus
shall issue and deliver to PediatRx 373,134 shares (the “Shares”)
of Common Stock, par value $0.001 per share (“Common Stock”) in
full satisfaction of Apricus’s obligation to pay PediatRx $1,000,000 in Common
Stock in the event that the Merger is not consummated on or before June 1, 2012,
such payment to be made pursuant to Section 20 of the Term Sheet and as set
forth in the Letter Agreement (the “Payment Obligations”). The
Parties acknowledge that the Payment Obligations represent additional
consideration to be paid by Apricus under each of the Asset Purchase Agreement
and Co-Promotion Agreement between the Parties (each as defined below).

     3. Representations and
Warranties of PediatRx. PediatRx represents and warrants to Apricus that the
statements contained in this Section 3 are true and correct as of the date
hereof and will be true and correct as of the date of issuance of the
Shares:

(a) Organization. PediatRx
represents that it is an entity duly formed, validly existing and in good
standing under the laws of the jurisdiction of its organization, has not been
organized, reorganized or recapitalized specifically for the purpose of
investing in Apricus and has all corporate power and authority to enter into
this Termination Agreement and to consummate the transactions contemplated
hereby and thereby.

(b) Validity. The execution,
delivery and performance of this Termination Agreement, and the consummation by
PediatRx of the transactions contemplated hereby, have been duly authorized by
all necessary corporate actions on the part of PediatRx. This Termination
Agreement has been duly executed and delivered by PediatRx and constitutes a valid and
binding obligation of PediatRx, enforceable against it in accordance with its
terms, except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, and any other laws of general application
affecting enforcement of creditors’ rights generally, and as limited by laws
relating to the availability of specific performance, injunctive relief, or
other equitable remedies.

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(c) Investment Representations and
Warranties. PediatRx understands and agrees that (i) the offering and sale
of the Shares has not been registered under the Securities Act of 1933, as
amended, and the applicable rules and regulations thereunder (the
“Securities Act”) and, therefore, cannot be resold unless they are
registered under the Securities Act or unless an exemption from registration is
available; and (ii) the issuance of the Shares is being made in reliance on
federal and state exemptions for transactions not involving a public offering,
which depend upon, among other things, the bona fide nature of the investment
intent and the accuracy of PediatRx’s representations as expressed herein.

(d) Restricted Securities.

      (i)
PediatRx understands that the Shares will be characterized as “restricted
securities” under the federal securities laws inasmuch as they are being
acquired from Apricus in a private placement under Section 4(2) of the
Securities Act and that under such laws and applicable regulations the Shares
may be resold without registration under the Securities Act only in certain
limited circumstances. PediatRx further agrees that any certificates
representing the Shares (each, a “Certificate”) shall bear a
restrictive legend in substantially the following form (the “Restrictive
Legend”):

THESE SECURITIES HAVE NOT BEEN
REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE AND HAVE BEEN ISSUED IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS.

     (ii)
PediatRx acknowledges that the Shares must be held indefinitely unless
subsequently registered under the Securities Act and under applicable state
securities laws or an exemption from such registration is available. PediatRx
understands that Apricus is under no obligation to register the resale of the
Shares, except as provided herein.

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     (iii)
PediatRx is aware of the provisions of Rule 144 under the Securities Act
(“Rule 144”), which permit limited resale of securities purchased
in a private placement.

(e) Acquisition for Own Account.
The Shares to be acquired by PediatRx pursuant to this Termination Agreement are
being acquired for its own account and without a view to the public distribution
of such Shares or any interest therein other than as permitted under applicable
law.

(f) Ability to Protect its Own
Interests and Bear Economic Risks. PediatRx has sufficient knowledge and
experience in financial and business matters so as to be capable of evaluating
the merits and risks of its investment in the Shares and PediatRx is capable of
bearing the economic risks of such investment, including a complete loss of its
investment in the Shares.

(g) Access to Information.
PediatRx has been furnished with and carefully read a copy of this Termination
Agreement and has been given the opportunity to ask questions of, and receive
answers from, Apricus concerning the terms and conditions of the Shares and
other related matters. PediatRx further represents and warrants to Apricus that
Apricus has made available to PediatRx or its agents all documents and
information relating to an investment in the Shares requested by or on behalf of
PediatRx.

     4. Representations and
Warranties of Apricus. Apricus represents and warrants to PediatRx that the
statements contained in this Section 4 are true and correct as of the date
hereof and will be true and correct as of the date of issuance of the
Shares:

(a) Organization. Apricus
represents that it is an entity duly formed, validly existing and in good
standing under the laws of the jurisdiction of its organization and has all
corporate power and authority to enter into this Termination Agreement and to
consummate the transactions contemplated hereby and thereby.

(b) Validity. The execution,
delivery and performance of this Termination Agreement, and the consummation by
PediatRx of the transactions contemplated hereby, have been duly authorized by
all necessary corporate actions on the part of Apricus. This Termination
Agreement has been duly executed and delivered by Apricus and constitutes a
valid and binding obligation of Apricus, enforceable against it in accordance
with its terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, and any other laws of general
application affecting enforcement of creditors’ rights generally, and as limited
by laws relating to the availability of specific performance, injunctive relief,
or other equitable remedies.

(c) Valid Issuance of Shares.
The Shares, when issued and delivered in accordance with the terms of this
Termination Agreement, will be duly authorized, validly issued, fully paid and
non-assessable shares of Common Stock in the capital of Apricus and free of
restrictions on transfer other than restrictions on transfer imposed by law or
this Termination Agreement. Based in part on the accuracy of the representations
of PediatRx in Section 3 of this Termination Agreement and subject to filings
pursuant to applicable state securities laws, the offer, sale and issuance of
the Shares to be issued pursuant to and in conformity with the terms of this
Termination Agreement will be issued in compliance with all applicable federal
and state securities laws.

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(d) Confidential Information.
Apricus confirms that it has destroyed all Information (defined in the
confidentiality agreement (the “Confidentiality Agreement”) dated
November 18, 2011 between Apricus and PediatRx) provided by PediatRx to Apricus
in connection with the Merger (the “Merger Confidential Information”) and
all copies thereof, including, without limitation, any and all documents that
may contain abstracts, excerpts or other portions of the Merger Confidential
Information in accordance with Section 7 of the Confidentiality Agreement,
provided, however, Apricus may retain all Information that relates to the
Co-Promotion Agreement, Asset Purchase Agreement and the Bi-Coastal Co-Promotion
Agreement (each as defined below).

     5. Form S-3
Registration. In the event that Apricus proposes to file a
registration statement on Form S-3 (or any successor form) registering for
resale (a “Resale S-3”) by a third party shares of Common Stock,
Apricus will, at least ten business days prior to the filing of the Resale S-3,
give written notice of the proposed filing to PediatRx. Within five business
days following the delivery of a notice of the proposed filing of a Resale S-3,
PediatRx may elect to have Apricus also register the resale of part or all of
the Shares in the Resale S-3. If Apricus has not filed a Resale S-3 registering
shares of Common Stock for resale by a third party by July 31, 2012, Apricus
shall file a Resale S-3 for the Shares by no later than such date. Upon filing
any such Resale S-3, Apricus will use commercially reasonable efforts to have
the registration statement declared effective and to maintain the effectiveness
of the registration statement. The foregoing notwithstanding, after the
Expiration Date (defined below), Apricus shall have no obligations under this
Section 5 to include any portion of the Shares in a Resale S-3 or to maintain
the effectiveness of any Resale S-3 registering any portion of the Shares for
resale. For purposes of this Section 5, the “Expiration Date” shall mean the
date on which the Shares then held by PediatRx may be sold without volume
limitations under Rule 144; for the avoidance of doubt, the Expiration Date
shall not be calculated with reference to the volume limits set forth below in
Section 7 of this Termination Agreement.

     6. Removal of
Legend.

     (a) Resale S-3.
Certificates evidencing Shares shall not be required to contain the legend set
forth in Section 3(d) of this Termination Agreement if a Resale S-3 covering the
resale of such Shares under the Securities Act is and remains effective,
provided that PediatRx covenants that it shall only sell pursuant to the
prospectus contained in the Resale S-3. 

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     (b) Rule 144. For the
purpose of removing the legend set forth in Section 3(d) pursuant to Rule 144,
Apricus agrees that June 1, 2012 was the time of the sale of the Shares by
Apricus to PediatRx. Provided that PediatRx is not then an "affiliate" of
Apricus, the Certificates shall not be required to contain the legend set forth
in Section 3(d) of this Termination Agreement if PediatRx gives written notice
to Apricus notifying Apricus of its intention to sell such Shares in compliance
with Rule 144. If PediatRx proposes to sell such Shares relying on Rule 144,
Apricus may require PediatRx to provide to Apricus an opinion of counsel
selected by PediatRx and reasonably acceptable to Apricus (at the expense of
PediatRx), the form and substance of which will be reasonably satisfactory to
Apricus, to the effect that such sale does not require registration under the
Securities Act. 

     (c) Removal Procedure.
Following (1) the effectiveness of the Resale S-3 contemplated in Section (6)(a)
of this Termination Agreement or (2) the later of (i) the receipt by Apricus of
the notice from PediatRx contemplated in Section 6(b) of this Termination
Agreement and (ii) the receipt by Apricus of the opinion of counsel of PediatRx
contemplated in Section 6(b) of this Termination Agreement, if required, Apricus
shall, following the delivery by PediatRx to Apricus or Apricus’s transfer agent
of a legended certificate representing such Shares, use commercially reasonable
efforts to promptly deliver or cause to be delivered to PediatRx a certificate
representing such Shares that is free of the Restrictive Legend. Apricus may not
make any notation on its records or give instructions to any transfer agent of
Apricus that enlarge the restrictions on transfer set forth in Section 3(d) of
this Termination Agreement.

     7. Selling
Restrictions. At such time as the Shares become eligible for resale
pursuant to a valid and effective registration statement or pursuant to an
exemption from the registration requirements of the Securities Act, including
Rule 144, PediatRx, on behalf of itself, its successors, assigns and
transferees, covenants and agrees that, if it proposes to sell any of the Shares
on a public market or quotation service, it shall only be permitted to sell on
any given Trading Day (defined below), such number of Shares as does not exceed
five percent (5%) of the average daily volume of the Common Stock traded in the
previous five (5) Trading Days, as determined on the Principal Exchange. In
addition, PediatRx may not sell or transfer any Shares during the first half
hour or the last half hour of any Trading Day. PediatRx shall provide written
e-mail notice to Apricus on each day it sells any Shares, stating the number of
Shares sold that day. PediatRx may sell or transfer any of the Shares in a
private transaction not effected on the Principal Exchange (defined below)
without complying with the restrictions provided in this Section 7, provided
that the purchaser agrees to be bound by this Section 7. Notwithstanding the
foregoing, in the event that any of the Shares are sold or otherwise transferred
in a private transaction not effected on the Principal Exchange, then the
applicable volume limit under this Section 7 shall thereafter be ratably divided
among the holders of the Shares after such sale or transfer such that the
aggregate sales limit remains fixed at five percent among all holders of the
Shares, and the parties to such sale or transfer shall notify Apricus in writing
of the agreed upon allocation, which agreement shall be binding on the parties
to the transfer. The foregoing volume limit shall no longer apply with respect
to any particular Share following the initial sale of such Share on the
Principal Exchange. For purposes of this Section 7, “Principal Exchange” shall
mean the NASDAQ Capital Market or other public market or quotation service on
which the Common Stock is then listed or traded. For purposes of this Section 7,
“Trading Day” shall mean any day on which the Common Stock is listed for trading
on the Principal Exchange. 

5

     8. Mutual Release. Each
Party hereby irrevocably waives, releases and discharges, on behalf of itself,
its affiliates, shareholders, officers, directors, employees and
representatives, the other Party from any and all liabilities and obligations to
such other Party of any kind or nature whatsoever (including, without
limitation, in respect of rights of contribution or indemnification), in each
case whether absolute or contingent, liquidated or unliquidated, and whether
arising under any agreement or understanding, or the articles of incorporation,
bylaws, or other constitutive documents of the Parties or otherwise at law or
equity. The foregoing waiver, release and discharge shall not apply, however, in
respect of any liability or obligation arising under (i) that certain Asset
Purchase Agreement, dated February 21, 2012, by and between Apricus and PediatRx
(the “Asset Purchase Agreement”); (ii) that certain Co-Promotion
Agreement, dated February 21, 2012, by and among Apricus and PediatRx (the
“Co-Promotion Agreement”); (iii) that certain Assignment (the
“Assignment”) of rights from PediatRx to Apricus relating to the
Bi-Coastal Pharmaceutical Corp. (“Bi-Coastal”) Co-Promotion
Agreement (the “Bi-Coastal Co-Promotion Agreement”), dated
February 21, 2012 by and between PediatRx, Apricus and Bi-Coastal; (iv) the
Confidentiality Agreement; or (v) this Termination Agreement.

     9. Entire Agreement. This
Termination Agreement constitutes the entire agreement and understanding of the
Parties with respect to the Merger and the Payment Obligations, and supersedes
any and all prior or contemporaneous agreements and understandings, whether oral
or written, between the Parties with respect to the matters set forth herein. No
provision of this Termination Agreement may be amended, modified or waived,
except in writing signed by each of the Parties.

     10. Successors. This
Termination Agreement shall be binding upon and inure to the benefit of each of
the Parties and their respective successors, legal representatives and
assigns.

     11. Counterparts. This
Termination Agreement may be executed in any number of counterparts, each of
which together shall constitute one and the same original document.

     12. Governing Law; Dispute
Resolution. This Termination Agreement shall be interpreted under California
law, excluding conflict-of-law principles. Any dispute arising under or relating
to this Termination Agreement shall be resolved in a court of competent
jurisdiction located in the City and County of San Diego, California. The
prevailing party in any such dispute shall be entitled to be awarded its fees
and expenses, including reasonable attorneys’ fees.

[Remainder of page intentionally left blank; signature page to
follow]

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     IN WITNESS WHEREOF, the Parties
have executed this Termination Agreement as of the date first set forth
above.

	 	APRICUS BIOSCIENCES, INC.
  
	 	  	  
	 	  	  
	 	By: 	/s/
      Bassam Damaj 
	 	Name: 	Bassam Damaj, Ph.D. 
	 	Title: President and Chief Executive
      Officer 
	 	  	  
	 	  	  
	 	  	  
	 	PEDIATRX INC. 
	 	  	  
	 	By: 	/s/
      Cameron Durrant 
	 	Name: 	Cameron Durrant, M.D., MBA 
	 	Title: President and Chief Executive
      Officer

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