Document:

Exhibit 10.2

 

 

 

 

CREDIT
AGREEMENT

 

by and
among

 

CANTOR
FITZGERALD SECURITIES,

 

as Agent,

 

THE LENDERS
THAT ARE PARTY HERETO

 

as the
Lenders, 

 

and

 

PERNIX
IRELAND PAIN LIMITED

 

as Borrower

 

Dated
as of July 21, 2017

 

 

 

 

 

    

     

    

 

Table of
Contents

 

Page

 

	1.   DEFINITIONS
    AND CONSTRUCTION.	1
	1.1   Definitions. 
    Capitalized terms used in this Agreement shall have the meanings specified therefor on Schedule 1.1.	1
	1.2   Accounting
    Terms	1
	1.3   Code	1
	1.4   Construction.	2
	1.5   Time
    References	2
	1.6   Schedules
    and Exhibits	2
	2.   LOANS
    AND TERMS OF PAYMENT.	3
	2.1   Loans.	3
	2.2   [Reserved].	3
	2.3   Borrowing
    Procedures and Settlements.	3
	2.4   Payments;
    Reductions of Commitments; Prepayments.	5
	2.5   Promise
    to Pay; Promissory Notes.	8
	2.6   Interest
    Rates:  Rates, Payments, and Calculations.	9
	2.7   Crediting
    Payments.	10
	2.8   Designated
    Account.	10
	2.9   Maintenance
    of Loan Account; Statements of Obligations.	11
	2.10   [Reserved].	11
	2.11   [Reserved].	11
	2.12   [Reserved].	11
	2.13   Capital
    Requirements.	11
	2.14   Incremental
    Loans.	12
	3.   CONDITIONS;
    TERM OF AGREEMENT.	13
	3.1   Conditions
    Precedent to the Closing Date Loans	13
	3.2   Conditions
    Precedent to each Subsequent Loan.	13
	3.3   Conditions
    Precedent to all Extensions of Credit	14
	3.4   Maturity.	14
	3.5   Effect
    of Maturity	14
	3.6   Early
    Termination by Borrower	14

 

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Table
of Contents

 

(continued)

 

Page

 

	4.   REPRESENTATIONS
    AND WARRANTIES.	14
	4.1   Due
    Organization and Qualification; Subsidiaries.	15
	4.2   Due
    Authorization; No Conflict.	15
	4.3   Governmental
    Consents..	16
	4.4   Binding
    Obligations; Perfected Liens.	16
	4.5   Title
    to Assets; No Encumbrances; Intellectual Property.	16
	4.6   Litigation.	16
	4.7   Compliance
    with Laws.	17
	4.8   No
    Material Adverse Effect	17
	4.9   No
    Liquidation	17
	4.10   Employee
    Benefits.	17
	4.11   Environmental
    Condition.	17
	4.12   Complete
    Disclosure.	18
	4.13   Patriot
    Act.	18
	4.14   Indebtedness.	18
	4.15   Payment
    of Taxes	18
	4.16   Margin
    Stock	19
	4.17   Governmental
    Regulation..	19
	4.18   OFAC.	19
	4.19   Employee
    and Labor Matters..	19
	4.20   [Reserved].	19
	4.21   Leases	19
	4.22   [Reserved].	20
	4.23   [Reserved].	20
	4.24   [Reserved].	20
	4.25   [Reserved].	20
	4.26   Health
    Care and Regulatory Matters.	20
	4.27   FDA
    Regulatory Compliance.	21
	4.28   Material
    Contracts.	22
	5.   AFFIRMATIVE
    COVENANTS.	22

 

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Table
of Contents

 

(continued)

 

Page

 

	5.1   Financial
    Statements, Reports, Certificates.	22
	5.2   [Reserved].	22
	5.3   Existence.	22
	5.4   Maintenance
    of Properties..	22
	5.5   Taxes	22
	5.6   Insurance.	23
	5.7   Inspection.	23
	5.8   Compliance
    with Laws.	23
	5.9   Environmental.,	23
	5.10   [Reserved].	24
	5.11   Formation
    or Acquisition of Subsidiaries.	24
	5.12   Further
    Assurances.	24
	5.13   Zohydro
    Assets.	25
	5.14   [Reserved].	25
	5.15   [Reserved].	25
	5.16   Compliance
    with Health Care Laws.	25
	5.17   Use
    of Proceeds.	26
	5.18   Post
    Closing Obligations	26
	6.   NEGATIVE
    COVENANTS.	26
	6.1   Indebtedness.	26
	6.2   Liens.	26
	6.3   Restrictions
    on Fundamental Changes,	26
	6.4   Disposal
    of Assets..	27
	6.5   Nature
    of Business.	27
	6.6   Prepayments
    and Amendments.	27
	6.7   Restricted
    Payments	29
	6.8   Accounting
    Methods	30
	6.9   Investments.	30
	6.10   Transactions
    with Affiliates:	30
	6.11   Use
    of Proceeds.	31
	6.12   Limitation
    on Issuance of Equity Interests.	31

 

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Table
of Contents

 

(continued)

 

Page

 

	6.13   Negative
    Pledge..	31
	6.14   Borrower's
    Activities.	31
	6.15   Burdensome
    Agreements.	31
	7.   [RESERVED].	32
	8.   EVENTS
    OF DEFAULT.	32
	8.1   Payments	32
	8.2   Covenants	32
	8.3   Judgments.	33
	8.4   Voluntary
    Bankruptcy, etc.	33
	8.5   Involuntary
    Bankruptcy, etc.	33
	8.6   Default
    Under Other Agreements.	33
	8.7   Representations,
    etc.	33
	8.8   Guaranty.	33
	8.9   Security
    Documents	33
	8.10   Loan
    Documents	33
	8.11   Change
    in Control.  A Change in Control shall occur.	34
	9.   RIGHTS
    AND REMEDIES.	34
	9.1   Rights
    and Remedies.	34
	9.2   Remedies
    Cumulative.	34
	10.   WAIVERS;
    INDEMNIFICATION.	34
	10.1   Demand;
    Protest; etc.	34
	10.2   The
    Lender Group’s Liability for Collateral..	35
	10.3   Indemnification	35
	11.   NOTICES.	36
	12.   CHOICE
    OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE PROVISION.	37
	13.   ASSIGNMENTS
    AND PARTICIPATIONS; SUCCESSORS.	38
	13.1   Assignments
    and Participations.	38
	13.2   Successors	40
	14.   AMENDMENTS;
    WAIVERS.	40

 

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Table
of Contents

 

(continued)

 

Page

 

	14.1   Amendments
    and Waivers.	40
	14.2   Replacement
    of Certain Lenders.	42
	14.3   No
    Waivers; Cumulative Remedies	42
	15.   AGENT;
    THE LENDER GROUP.	42
	15.1   Appointment
    and Authorization of Agent.	42
	15.2   Delegation
    of Duties.	43
	15.3   Liability
    of Agent	43
	15.4   Reliance
    by Agent..	43
	15.5   Notice
    of Default or Event of Default.	44
	15.6   Credit
    Decision..	44
	15.7   Costs
    and Expenses; Indemnification	44
	15.8   Agent
    in Individual Capacity.	45
	15.9   Successor
    Agent	45
	15.10   Lender
    in Individual Capacity.	46
	15.11   Collateral
    Matters.	46
	15.12   Restrictions
    on Actions by Lenders; Sharing of Payments.	47
	15.13   Agency
    for Perfection.	48
	15.14   Payments
    by Agent to the Lenders.	48
	15.15   Concerning
    the Collateral and Related Loan Documents.	48
	15.16   Confidentiality;
    Disclaimers by Lenders; Other Reports and Information.	48
	15.17   Several
    Obligations; No Liability	48
	16.   WITHHOLDING
    TAXES.	49
	16.1   Payments.	49
	16.2   Exemptions.	49
	16.3   Reductions.	51
	16.4   Refunds	51
	17.   GENERAL
    PROVISIONS.	51
	17.1   Effectiveness.	51
	17.2   Section
    Headings.	52
	17.3   Interpretation..	52

 

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Table
of Contents

 

(continued)

 

Page

 

	17.4   Severability
    of Provisions.	52
	17.5   [Reserved].	52
	17.6   Debtor-Creditor
    Relationship.	52
	17.7   Counterparts;
    Electronic Execution.	52
	17.8   Revival
    and Reinstatement of Obligations; Certain Waivers	52
	17.9   Confidentiality.	53
	17.10   Survival.	54
	17.11   Patriot
    Act..	54
	17.12   Integration.	54

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EXHIBITS
AND SCHEDULES

 

	Exhibit A-1	Form of Assignment and Acceptance 
	Exhibit B-1	Form of Notice of Borrowing
	Exhibit C-1	Form of Compliance Certificate
	Exhibit  I-1	Form of Intercompany Subordination Agreement
	Exhibit N-1	Form of Note
	Exhibit P-1	Form of Perfection Certificate 
	 	 
	Schedule A-1	Agent’s Account
	Schedule A-2	Authorized Persons
	Schedule C-1	Commitments
	Schedule D-1	Designated Account
	Schedule G-1	Generics Assets
	Schedule P-1	Permitted Investments
	Schedule P-2	Permitted Liens
	Schedule 1.1	Definitions
	Schedule 3.1	Conditions Precedent to Closing Date Loan
	Schedule 3.2	Conditions Precedent to Each Subsequent Loan
	Schedule 4.1(b)	Capitalization of Borrower
	Schedule 4.1(c)	Capitalization of Parent’s Subsidiaries
	Schedule 4.1(d)	Subscriptions, Options, Warrants, Calls
	Schedule 4.5	Intellectual Property
	Schedule 4.6(b)	Litigation
	Schedule 4.11	Environmental Matters
	Schedule 4.14	Permitted Indebtedness
	Schedule 4.15	Tax Related Proceedings
	Schedule 4.26	Regulatory Disclosure
	Schedule 4.29	Insurance
	Schedule 5.1	Financial Statements, Reports, Certificates
	Schedule 5.17	Subsequent Loans – Use of Proceeds
	Schedule 5.18	Post-Closing Obligations

 

 

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CREDIT
AGREEMENT

 

THIS
CREDIT AGREEMENT (this “Agreement”), is entered into as of July 21,, 2017, by and among the lenders identified
on the signature pages hereof (each of such lenders, together with its successors and permitted assigns, is referred to hereinafter
as a “Lender”, as that term is hereinafter further defined), Cantor Fitzgerald Securities, as administrative
agent for each member of the Lender Group (in such capacity, together with its successors and assigns in such capacity, “Agent”)
and Pernix IRELAND PAIN LIMITED, a private company limited by shares incorporated
under the laws of the Republic of Ireland (and expected to be converted after the Closing Date to a designated activity company
incorporated under the laws of Ireland and in connection therewith, renamed as Pernix Ireland Pain Designated Activity Company)
(the “Borrower”).

 

WHEREAS,
capitalized terms used in the preamble hereto and in these Recitals shall have the respective meanings set forth for such terms
in Schedule 1.1;

 

WHEREAS,
the Borrower has requested that the Lenders provide a term loan facility and the Lenders are willing to do so on the terms and
conditions set forth herein; and

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency
and receipt of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             DEFINITIONS AND CONSTRUCTION.

 

1.1              
Definitions. Capitalized terms used in this Agreement shall have the meanings specified therefor on Schedule
1.1.

 

1.2              
Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with
GAAP; provided, that (i) if Borrower notifies Agent that Borrower requests an amendment to any provision hereof to eliminate
the effect of any Accounting Change occurring after the Closing Date or in the application thereof on the operation of such provision
(or if Agent notifies Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless
of whether any such notice is given before or after such Accounting Change or in the application thereof, then Agent and Borrower
agree that they will negotiate in good faith amendments to the provisions of this Agreement that are directly affected by such
Accounting Change with the intent of having the respective positions of the Lenders and Borrower after such Accounting Change
conform as nearly as possible to their respective positions as of the date of this Agreement and, until any such amendments have
been agreed upon and agreed to by the Required Lenders, the provisions in this Agreement shall be calculated as if no such Accounting
Change had occurred. When used herein, the term “financial statements” shall include the notes and schedules thereto,
and (ii) to the extent expressly required pursuant to the provisions of this Agreement, certain calculations shall be made on
a pro forma basis. Whenever the term “Borrower” is used in respect of a financial covenant or a related definition,
it shall be understood to mean Borrower and its Subsidiaries on a consolidated basis, unless the context clearly requires otherwise.
Notwithstanding anything to the contrary contained herein, (a) all financial statements delivered hereunder shall be prepared,
and all financial covenants contained herein shall be calculated, without giving effect to any election under the Financial Accounting
Codification Section 825-10 (or any similar accounting principle) permitting a Person to value its financial liabilities or Indebtedness
at the fair value thereof, and (b) the term “unqualified opinion” as used herein to refer to opinions or reports provided
by accountants shall mean an opinion or report that is (i) unqualified, and (ii) does not include any explanation, supplemental
comment, or other comment concerning the ability of the applicable Person to continue as a going concern or concerning the scope
of the audit.

 

1.3              
Code. Any terms used in this Agreement that are defined in the Code shall be construed and defined as set
forth in the Code unless otherwise defined herein; provided, that to the extent that the Code is used to

 

    

     

    

define
any term herein and such term is defined differently in different Articles of the Code, the definition of such term contained
in Article 9 of the Code shall govern.

 

1.4              
Construction. Unless the context of this Agreement or any other Loan Document clearly requires otherwise,
references to the plural include the singular, references to the singular include the plural, the terms “includes”
and “including” are not limiting, and the term “or” has, except where the context otherwise requires,
the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,”
“hereunder,” and similar terms in this Agreement or any other Loan Document refer to this Agreement or such other
Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document,
as the case may be. Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise
specified. Any reference in this Agreement or in any other Loan Document to any agreement, instrument, or document shall include
all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements,
thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications,
renewals, replacements, substitutions, joinders, and supplements set forth herein). The words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties.
Any reference herein or in any other Loan Document to the satisfaction, repayment, or payment in full of the Obligations shall
mean (a) the indefeasible payment or repayment in full in cash of (i) the principal amount of, and interest accrued and unpaid
with respect to, all outstanding Loans, together with the payment of any premium applicable to the repayment of the Loans, (ii)
all Lender Group Expenses that have accrued and are unpaid regardless of whether demand has been made therefor and (iii) all fees
or charges that have accrued hereunder or under any other Loan Document and are unpaid, (b) the receipt by Agent of cash collateral
in order to secure any other contingent Obligations for which a claim or demand for payment has been made on or prior to such
time or in respect of matters or circumstances known to Agent or a Lender at such time that are reasonably expected to result
in any loss, cost, damage, or expense (including attorneys’ fees and legal expenses), such cash collateral to be in such
amount as Agent reasonably determines is appropriate to secure such contingent Obligations, (c) the payment or repayment in full
in cash of all other outstanding Obligations other than unasserted contingent indemnification Obligations and (d) the termination
of all of the Commitments of the Lenders. Any reference herein to any Person shall be construed to include such Person’s
successors and permitted assigns. Any requirement of a writing contained herein or in any other Loan Document shall be satisfied
by the transmission of a Record. Any reference to any law shall include all statutory and regulatory provisions consolidating,
amending, replacing or interpreting such law and any reference to any law, rule or regulation shall, unless otherwise specified,
refer to such law, rule or regulation as amended, modified or supplemented from time to time. Any references in this Agreement
to “Articles” and/or “Sections” which make reference to any particular piece of legislation or statute,
including without limitation, Bankruptcy Code, ERISA, IRC and/or the Code shall for greater certainty mean the equivalent section
in the applicable piece of legislation to the extent that the context implies reference to such other similar or equivalent legislation
as is in effect from time to time in any other applicable jurisdiction, as applicable. Furthermore, where any such reference is
meant to apply to such other similar or equivalent legislation where such other similar or equivalent legislation has parallel
or like concepts, then such references shall import such parallel or like concepts from such other similar or equivalent legislation,
as applicable.

 

1.5              
Time References. Unless the context of this Agreement or any other Loan Document clearly requires otherwise,
all references to time of day refer to Eastern standard time or Eastern daylight saving time, as in effect in New York, New York
on such day. For purposes of the computation of a period of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each means “to and including”;
provided that, with respect to a computation of fees or interest payable to Agent or any Lender, such period shall in any
event consist of at least one full day.

 

1.6              
Schedules and Exhibits. All of the schedules and exhibits attached to this Agreement shall be deemed incorporated
herein by reference.

 

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2.             LOANS AND TERMS OF PAYMENT.

 

2.1              
Loans.

 

(a)               
Subject to the terms and conditions and relying upon the representations and warranties set forth herein and in the other
Loan Documents, each Lender agrees, severally and not jointly, to make (a) a Loan to the Borrower on the Closing Date (the “Closing
Date Loan”) and (b) Loans to the Borrower from time to time after the Closing Date on any Business Day during the Availability
Period (each such Loan a “Subsequent Loan”), in each case, in an aggregate amount not to exceed such Lender’s
Commitment; provided that the aggregate principal amount of the Closing Date Loan shall not be greater than $30,000,000
and the aggregate principal amount of all Subsequent Loans shall not be greater than $15,000,000. Amounts repaid or repaid in
respect of Loans may not be reborrowed.

 

(b)              
Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their
applicable Commitments; provided that the failure of any Lender to make any Loan shall not in itself relieve any other
Lender of its obligation to lend hereunder (it being understood, however, that no Lender shall be responsible for the failure
of any other Lender to make any Loan required to be made by such other Lender).

 

(c)               
The outstanding principal amount of the Loans, together with interest accrued and unpaid thereon, shall be due and payable
on the Maturity Date or, if earlier, on the date on which they are declared due and payable pursuant to the terms of this Agreement.

 

2.2              
[Reserved].

 

2.3              
Borrowing Procedures and Settlements.

 

(a)               
Procedure for Borrowings. Each Borrowing shall be made by a written request in the form attached hereto as Exhibit
B-1 (a “Notice of Borrowing”) by an Authorized Person delivered to Agent and received by Agent no later
than 11:00 a.m. on the Business Day that is four (4) Business Days prior to the requested Funding Date, specifying, in each case,
(A) the amount of such Borrowing, and (B) the requested Funding Date (which shall be a Business Day); provided, that (i)
a Notice of Borrowing in respect of any Borrowing to be made on the Closing Date may be delivered no later than 5:00 p.m. on the
Business Day prior to the Closing Date, (ii) Agent may, at the direction of the Required Lenders in their sole discretion, elect
to accept as timely requests that are received later than 11:00 a.m. on the applicable Business Day and (iii) no Notice of Borrowing
shall be delivered to any Lender during the hours of 9:00 a.m. through 4:00 p.m., New York City time, on any Business Day. At
Agent’s election, in lieu of delivering the above-described written request, any Authorized Person may give Agent telephonic
notice of such request by the required time. In such circumstances, Borrower agrees that any such telephonic notice will be confirmed
in writing within one (1) Business Day of the giving of such telephonic notice, but the failure to provide such written confirmation
shall not affect the validity of the request.

 

(b)              
Funding of Borrowings. After receipt of a request for a Borrowing pursuant to Section ‎2.3(a), Agent shall promptly
notify the Lenders by telecopy, telephone, email, or other electronic form of transmission, of the requested Borrowing; provided
that no Notice of Borrowing shall be delivered to any Lender during the hours of 9:00 a.m. through 4:00 p.m., New York City time,
on any Business Day. Each Lender shall make each Loan to be made by it hereunder on the proposed Funding Date thereof by wire
transfer of immediately available funds by 2:00 p.m. on the Business Day that is the requested Funding Date to the Designated
Account or other applicable account in accordance with Section ‎3; provided, that no Lender shall have an obligation to make
any Loan if one or more of the applicable conditions precedent set forth in Section ‎3 has not been or will not be satisfied
on the requested Funding Date for the applicable Borrowing unless such condition has been waived in accordance with the applicable
provisions of Section ‎3. The Agent will make such 

 

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Loans
available to the Borrower by promptly crediting the amounts so received, in like funds, to the Designated Account. Nothing herein
shall be deemed to obligate any Lender to obtain the funds for its Loan in any particular place or manner or to constitute a representation
by any Lender that it has obtained or will obtain the funds for its Loan in any particular place or manner.

 

(c)               
[reserved].

 

(d)              
[reserved].

 

(e)               
[reserved].

 

(f)               
Notation. Agent, as a non-fiduciary agent for Borrower, shall maintain a register showing the principal amount
of the Loans, owing to each Lender, and the interests therein of each Lender, from time to time and such register shall, absent
manifest error, conclusively be presumed to be correct and accurate.

 

(g)               
Defaulting Lenders.

 

(i)                
Notwithstanding the provisions of Section 2.4(b)(iii), Agent shall not be obligated to transfer to a Defaulting
Lender any payments made by Borrower to Agent for the Defaulting Lender’s benefit or any proceeds of Collateral that would
otherwise be remitted hereunder to the Defaulting Lender, and, in the absence of such transfer to the Defaulting Lender, Agent
shall transfer any such payments (A) first, to each Non-Defaulting Lender ratably in accordance with their Pro Rata Share (but,
in each case, only to the extent that such Defaulting Lender’s portion of a Loan (or other funding obligation) was funded
by such other Non-Defaulting Lender), (B) to a suspense account maintained by Agent, the proceeds of which shall be retained by
Agent and may be made available to be advanced to or for the benefit of Borrower as such Defaulting Lender’s Pro Rata Share
of any Subsequent Loan required to be made pursuant to Section ‎2.1 from any remaining Commitments (upon the request of Borrower
and subject to the conditions set forth in Sections ‎3.2 and ‎3.3) as if such Defaulting Lender had made
its portion of Loans (or other funding obligations) hereunder, and (C) from and after the date on which the Commitments are cancelled
or terminated and all other Obligations have been paid in full, to such Defaulting Lender in accordance with tier (H) of Section
2.4(b)(iii). Subject to the foregoing, Agent may hold and, in its permitted discretion, re-lend to Borrower for the account
of such Defaulting Lender the amount of all such payments received and retained by Agent for the account of such Defaulting Lender.
Solely for the purposes of voting or consenting to matters with respect to the Loan Documents (including the calculation of Pro
Rata Share in connection therewith), such Defaulting Lender shall be deemed not to be a “Lender” and such Lender’s
Commitment shall be deemed to be zero; provided, that the foregoing shall not apply to any of the matters governed by Section
‎14.1(a)(i) through ‎(iii). The provisions of this Section ‎2.3(g) shall remain effective with respect
to such Defaulting Lender until the earlier of (x) the date on which all of the Non-Defaulting Lenders, Agent and Borrower shall
have waived, in writing, the application of this Section ‎2.3(g) to such Defaulting Lender, or (y) the date on which
such Defaulting Lender makes payment of all amounts that it was obligated to fund hereunder, pays to Agent all amounts owing by
Defaulting Lender in respect of the amounts that it was obligated to fund hereunder, and, if requested by Agent, provides adequate
assurance to Agent of its ability to perform its future obligations hereunder. The operation of this Section ‎2.3(g)
shall not be construed to increase or otherwise affect the Commitment of any Lender, to relieve or excuse the performance by such
Defaulting Lender or any other Lender of its duties and obligations hereunder, or to relieve or excuse the performance by Borrower
of its duties and obligations hereunder to Agent or to the Lenders other than such Defaulting Lender. Any failure by a Defaulting
Lender to fund amounts that it was obligated to fund hereunder shall constitute a material breach by such Defaulting Lender of
this Agreement and shall entitle Borrower, at its option, upon written notice to Agent, to arrange for a substitute Lender to
assume the Commitment of such Defaulting Lender, such substitute Lender to be reasonably acceptable to Agent. In connection with
the arrangement of such a substitute Lender, the Defaulting Lender shall have no right to refuse to be replaced hereunder, and
agrees to execute and deliver a completed form of Assignment and Acceptance in favor of the substitute Lender (and agrees that
it shall be deemed to have executed and delivered such document if it fails to do so) subject only to being paid its share of
the outstanding Obligations, including all interest, fees, and 

 

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other
amounts that may be due and payable in respect thereof); provided, that any such assumption of the Commitment of such Defaulting
Lender shall not be deemed to constitute a waiver of any of the Lender Groups’ or Borrower’s rights or remedies against
any such Defaulting Lender arising out of or in relation to such failure to fund. In the event of a direct conflict between the
priority provisions of this Section ‎2.3(g) and any other provision contained in this Agreement or any other Loan Document,
it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent possible,
to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the
terms and provisions of this Section ‎2.3(g) shall control and govern.

 

(h)              
Independent Obligations. All Loans shall be made by the Lenders contemporaneously and in accordance with their Pro
Rata Shares. It is understood that (i) no Lender shall be responsible for any failure by any other Lender to perform its obligation
to make any Loan hereunder, nor shall any Commitment of any Lender be increased or decreased as a result of any failure by any
other Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its obligations hereunder shall
excuse any other Lender from its obligations hereunder.

 

2.4              
Payments; Reductions of Commitments; Prepayments.

 

(a)               
Payments by Borrower.

 

(i)                
Except as otherwise expressly provided herein, all payments made or remitted by Borrower under this Agreement or the other
Loan Documents shall be made to Agent’s Account for the account of the Lender Group and shall be made in immediately available
funds, no later than 2:00 p.m. on the date specified herein. Any payment received by Agent later than 2:00 p.m. shall be deemed
to have been received (unless Agent, at the direction of the Required Lenders in their sole discretion, elects to credit it on
the date received) on the following Business Day and any applicable interest or fee shall continue to accrue until such following
Business Day. Without limiting the generality of the foregoing, Agent may require that any payments due under this Agreement be
made in the United States.

 

(ii)              
Unless Agent receives notice from Borrower prior to the date on which any payment is due to the Lenders that Borrower will
not make such payment in full as and when required, Agent may assume that Borrower has made (or will make) such payment in full
to Agent on such date in immediately available funds and Agent may (but shall not be so required), in reliance upon such assumption,
distribute to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent Borrower does
not make such payment in full to Agent on the date when due, each Lender severally shall repay to Agent on demand such amount
distributed to such Lender, together with interest thereon at the Defaulting Lender Rate for each day from the date such amount
is distributed to such Lender until the date repaid; provided that such interest shall be an obligation of the Borrower and shall
be payable by the Borrower upon demand.

 

(b)              
Apportionment and Application.

 

(i)                
So long as no Application Event has occurred and is continuing and except as otherwise provided herein with respect to
Defaulting Lenders, all principal and interest payments received by Agent shall be apportioned ratably among the Lenders (according
to the unpaid principal balance of the Obligations to which such payments relate held by each Lender) and all payments of fees
and expenses received by Agent (other than fees or expenses that are for Agent’s separate account) shall be apportioned
ratably among the Lenders having a Pro Rata Share of the type of Commitment or Obligation to which a particular fee or expense
relates.

 

(ii)              
Subject to Section 2.4(b)(v) and Section ‎2.4(d), all payments to be made hereunder by Borrower shall
be remitted to Agent and all such payments, and all proceeds of Collateral received by Agent, shall be applied, so long as no
Application Event has occurred and is continuing and except as otherwise provided 

 

    -5-

     

    

herein
with respect to Defaulting Lenders, to reduce the balance of the Loans outstanding and, thereafter, to Borrower (to be wired to
the Designated Account) or such other Person entitled thereto under applicable law.

 

(iii)            
At any time that an Application Event has occurred and is continuing and except as otherwise provided herein with respect
to Defaulting Lenders, all payments remitted to Agent and all proceeds of Collateral received by Agent shall be applied as follows:

 

A.                
first, to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then due to Agent
from the Loan Parties under the Loan Documents, until paid in full,

 

B.                
second, to pay any fees or premiums then due to Agent from the Loan Parties under the Loan Documents until paid
in full,

 

C.                
third, ratably, to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then
due to any of the Lenders from the Loan Parties under the Loan Documents, until paid in full,

 

D.                
fourth, ratably, to pay any fees or premiums then due to any of the Lenders under the Loan Documents until paid
in full,

 

E.                 
fifth, ratably, to pay interest accrued in respect of the Loans until paid in full,

 

F.                 
sixth, ratably, to pay the principal of all Loans until paid in full,

 

G.                
seventh, to pay any other Obligations other than Obligations owed to Defaulting Lenders,

 

H.                
eighth, ratably to pay any Obligations owed to Defaulting Lenders; and

 

I.                   
ninth, to Borrower (to be wired to the Designated Account) or such other Person entitled thereto under applicable
law.

 

(iv)            
Agent promptly shall distribute to each Lender, pursuant to the applicable wire instructions received from each Lender
in writing, such funds as it may be entitled to receive.

 

(v)              
In each instance, so long as no Application Event has occurred and is continuing, Section ‎2.4(b)(ii) shall
not apply to any payment made by Borrower to Agent and specified by Borrower to be for the payment of specific Obligations then
due and payable (or prepayable) under any provision of this Agreement or any other Loan Document.

 

(vi)            
For purposes of Section ‎2.4(b), “paid in full” of a type of Obligation means payment in cash or
immediately available funds of all amounts owing on account of such type of Obligation, including interest accrued after the commencement
of any Insolvency Proceeding, default interest, interest on interest, and expense reimbursements, irrespective of whether any
of the foregoing would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding.

 

(vii)          
In the event of a direct conflict between the priority provisions of this Section ‎2.4 and any other provision
contained in this Agreement or any other Loan Document, it is the intention of the parties hereto that such provisions be read
together and construed, to the fullest extent possible, to be in concert with each 

 

    -6-

     

    

other.
In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, if the conflict relates to the provisions
of Section ‎2.3(g) and this Section ‎2.4, then the provisions of Section ‎2.3(g) shall control
and govern, and if otherwise, then the terms and provisions of this Section ‎2.4 shall control and govern.

 

(c)               
Termination of Commitments.

 

(i)                
Scheduled Termination of Commitments. Upon (i) the making of the Closing Date Loans on the Closing Date, the Commitments
shall be reduced by $30,000,000 on the Closing Date, and (ii) the making of each Subsequent Loan, Commitments in an amount equal
to the principal amount of such Subsequent Loans shall terminate on the date of such Borrowing. Unless previously terminated in
full, all unused Commitments shall terminate on the last Business Day of the Availability Period. Any Incremental Term Commitment
shall terminate as set forth in the applicable Incremental Agreement.

 

(ii)              
Optional Termination and Reduction of Commitments.  The Borrower may at any time terminate, or from time to
time reduce, the Commitments; provided that each reduction of the Commitments shall be in an amount that is an integral
multiple of $1,000,000.

 

The
Borrower shall notify the Agent in writing of any election to terminate or reduce the Commitments under Section ‎2.4(c)(ii)
at least three (3) Business Day prior to the effective date of such termination or reduction, specifying such election and
the effective date thereof. Promptly following receipt of any notice, the Agent shall advise the Lenders of the contents thereof.
Each notice delivered by the Borrower pursuant to this Section ‎2.4(c)(ii) shall be irrevocable; provided
that a notice of termination of the Commitments delivered by the Borrower may state that such notice is conditioned upon other
transactions, in which case such notice may be revoked by the Borrower (by written notice to the Agent on or prior to the specified
effective date) if such condition is not satisfied. Any termination or reduction of the Commitments shall be permanent and may
not be reinstated. Each reduction of the Commitments shall be made ratably among the Lenders in accordance with each Lender’s
Pro Rata Share; provided that if any Lender is a Defaulting Lender at such time as the Borrower elects to terminate or
reduce the Commitments hereunder, the Borrower may (in its discretion) apply all or any portion of the Commitments to be reduced,
to the Commitment of any one or more Defaulting Lenders specified by the Borrower before applying any remaining reduction ratably
to all other Lenders.

 

(d)              
Prepayments.

 

(i)                
Optional Prepayments. Borrower shall have the right at any time and from time to time to prepay any Borrowing in
whole or in part, without premium or penalty, subject to prior notice in accordance with Section ‎2.4(d)(i)(A).

 

(A)       Notice
and Terms of Optional Prepayment. Borrower shall notify the Agent by delivery of a notice of prepayment executed by an Authorized
Person of any prepayment hereunder not later than 11:00 a.m., at least three (3) Business Days prior to the date of prepayment.
Each such notice shall be irrevocable and shall specify the prepayment date, the principal amount of each Borrowing or portion
thereof to be prepaid; provided that a notice of prepayment delivered by Borrower may state that such notice is conditioned
upon other transactions, in which case such notice may be revoked by the Borrower (by written notice to the Agent on or prior
to the specified effective date) if such condition is not satisfied. Promptly following receipt of any such notice relating to
a Borrowing, the Agent shall advise the applicable Lenders of the contents thereof. Each prepayment of a Borrowing shall be applied
ratably to the Loans. Prepayments shall be accompanied by accrued interest to the extent required by Section ‎2.6(d).
Each prepayment hereunder shall be in an amount that is an integral multiple of $1,000,000 (or such lesser amount or integral
to repay all outstanding Loans).

 

(ii)              
Mandatory Prepayments. 

 

    -7-

     

    

(A)
       In the event (x) Parent and its Subsidiaries receive any Net Cash Proceeds in any fiscal
year from Non-Exclusive Licenses made pursuant to clause (d) of the definition of “Permitted Dispositions” under this
Agreement (or, without duplication, clause (d) of the definition of “Permitted Dispositions” under the ABL Credit
Agreement, Section 4.16(b) of the 2017 Indenture or any provision in any document governing any permitted Refinancing Indebtedness
of any of the foregoing requiring a mandatory prepayment or redemption or mandatory offer to prepay or redeem based on receipt
of proceeds from any non-exclusive license) and (y) if, at any time, the accumulated Excess Proceeds equal or exceed $5,000,000,
then a prepayment amount in accordance with the applicable NEL Ratio shall be required to be applied in accordance with clause
(D) below. “NEL Ratio” means (1) 50% of the aggregate Net Cash Proceeds (to the extent constituting Excess
Proceeds) of up to $5,000,000 received by Parent and its Subsidiaries in any fiscal year from Non-Exclusive Licenses and (2) 75%
of the aggregate Net Cash Proceeds (to the extent constituting Excess Proceeds) in excess of $5,000,000 received by Parent and
its Subsidiaries in any fiscal year from Non-Exclusive Licenses.

 

(B)       In
the event that Parent and its Subsidiaries receive any Net Cash Proceeds in excess of the Disposition Threshold from sales or
dispositions of assets pursuant to clause (q) of the definition of “Permitted Dispositions” under this Agreement (or,
without duplication, clause (q) of the definition of “Permitted Dispositions” under the ABL Credit Agreement, Section
4.16(a) of the 2017 Indenture or any provision in any document governing any permitted Refinancing Indebtedness of any of the
foregoing requiring a mandatory prepayment or redemption or mandatory offer to prepay or redeem based on receipt of proceeds from
any Asset Sale other than a non-exclusive license), 100% of such Net Cash Proceeds shall be required to be applied in accordance
with clause (D) below.

 

(C) [reserved].

 

(D) 
Any prepayment required pursuant to clauses (A) through (B) above shall be applied to obligations under this Agreement, obligations
under the 2017 Indenture and obligations under the ABL Credit Agreement in the following manner:  all prepayment amounts
shall first, be offered to prepay the outstanding principal amount of the Loans hereunder (with the balance, if any, to
reduce permanently any unused Commitments hereunder) in accordance with the provisions of this clause (D), second, be offered
to redeem the principal amount of the notes outstanding under the 2017 Indenture in accordance with the terms thereof and third,
be applied to prepay the loans outstanding under the ABL Credit Agreement (together with a corresponding permanent reduction in
commitments thereunder) in accordance with the terms thereof.  The offer to prepay under clause first shall be made
as follows:  within three (3) Business Days after the occurrence of any prepayment event described in clauses (A) through
(C) above, the Borrower shall make an offer to apply all applicable prepayment amounts to prepay the outstanding principal amount
of the Loans hereunder (with the balance, if any, to reduce permanently any unused Commitments hereunder) on the date that is
three (3) Business Days after the offer date (a “Prepayment Date”). Any Lender may elect not to accept
its pro rata portion of any such prepayment amount  pursuant to clause first above (the “Declined Amount”)
by delivering a written notice thereof to the Agent at least one Business Day prior to the applicable Prepayment Date, which Declined
Amount shall then be applied in accordance with clauses second and third above.

 

2.5              
Promise to Pay; Promissory Notes.

 

(a)                     
Borrower agrees to pay the Lender Group Expenses on the earlier of (i) the first day of the month following the date on
which the applicable Lender Group Expenses were first incurred or (ii) the date on which demand therefor is made by Agent (it
being acknowledged and agreed that any charging of such costs, expenses or Lender Group Expenses to the Loan Account pursuant
to the provisions of Section ‎2.6(d) shall be deemed to constitute a demand for payment thereof for the purposes of
this subclause (ii)). Borrower promises to pay all of the Obligations (including principal, interest, premiums, if any, fees,
costs, and expenses (including 

 

    -8-

     

    

Lender
Group Expenses)) in full on the Maturity Date or, if earlier, on the date on which the Obligations become due and payable pursuant
to the terms of this Agreement. Borrower agrees that its obligations contained in the first sentence of this Section ‎2.5(a)
shall survive payment or satisfaction in full of all other Obligations.

 

(b)                    
Any Lender may request that any portion of its Commitments or the Loans made by it be evidenced by one or more promissory
notes (each a “Note”), in substantially the form attached hereto as Exhibit N-1. In such event, Borrower
shall execute and deliver to such Lender the requested Note payable to the order of such Lender in a form furnished by Agent and
reasonably satisfactory to Borrower. Thereafter, the portion of the Commitments and Loans evidenced by such Note and interest
thereon shall at all times be represented by one or more Notes in such form payable to the order of the payee named therein.

 

2.6              
Interest Rates: Rates, Payments, and Calculations.

 

(a)               
Interest Rates. Except as provided in Section ‎2.6(c), the Loans (including any Additional PIK Principal)
shall bear interest (from the date of incurrence through but excluding the date of repayment or prepayment (whether by acceleration
or otherwise)) as follows:

 

(i)                
if only Cash Interest is paid on the applicable Interest Payment Date, 7.50% per annum, and

 

(ii)              
if any PIK Interest is paid on the applicable Interest Payment Date pursuant to Section ‎2.6(d), 8.50% per annum.

 

(b)              
[Reserved].

 

(c)               
Default Rate. Upon the occurrence and during the continuation of an Event of Default (automatically upon the occurrence
of any Event of Default pursuant to Section ‎8.1, ‎8.4 or ‎8.5 and otherwise at the election of Agent or the Required
Lenders), all Obligations that have been charged to the Loan Account pursuant to the terms hereof shall bear interest at a per
annum rate equal to two (2) percentage points above the per annum rate otherwise applicable thereunder.

 

(d)              
Payment.

 

(i)                
All interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and on the Maturity Date
or any earlier date of repayment or prepayment of such Loan.

 

(ii)              
The Borrower may, at its sole discretion (an “Interest Election”), elect to pay interest on the Loans
in respect of any Interest Payment Date, (A) entirely in cash (“Cash Interest”) or (B) partly as Cash Interest
and partly by adding the amount of such interest up to a maximum amount of 4.00% per annum to the outstanding principal amount
of the Loans (“PIK Interest”, and the amount of any such PIK Interest added to the principal of the Loans on
any Interest Payment Date as required by the relevant Interest Election(s), the “Additional PIK Principal”)
(with Cash Interest and Additional PIK Principal to be allocated pro rata among the Lenders in proportion to the aggregate principal
amount of the portion of the Loan held by each Lender).

 

(iii)            
Borrower must make an Interest Election by delivering a notice to the Agent no later than three (3) Business Days prior
to the effective date of any Interest Election, which notice shall specify (x) whether such Interest Election is made under clause
(ii)(A) or (ii)(B) of the immediately preceding paragraph and (y) the effective date of such Interest Election. An Interest Election
(as to the portion of the interest payable as PIK Interest subject to such Interest Election only) shall remain in effect until
the earlier of (i) the date that is three months following the effective date of such Interest Election and (ii) the Maturity
Date. The Agent shall promptly deliver a corresponding notice to each Lender. In the absence of such an election for any Interest
Payment Date, 

 

    -9-

     

    

interest
on the Loans shall be payable according to the Interest Election most recently made pursuant to this Section ‎2.6(d)
(or, in the case of the first Interest Payment Date, in cash).

 

(iv)            
Cash Interest on each Loan shall be paid in arrears on each Interest Payment Date applicable to such Loan. PIK Interest
on each Loan shall be payable by increasing the outstanding principal amount of the Loans by the amount of Additional PIK Principal,
rounded up to the nearest whole dollar on the Interest Payment Date for such period as required by the relevant Interest Election(s).
Interest shall also be paid on the date of any prepayment of Loans under Section ‎2.4 for the portion of the Loans
so prepaid and upon payment (including prepayment) in full thereof.

 

(e)               
Computation. All interest and fees chargeable under the Loan Documents shall be computed on the basis of a 365/366
day year, for the actual number of days elapsed in the period during which the interest or fees accrue.

 

(f)               
Intent to Limit Charges to Maximum Lawful Rate. In no event shall the interest rate or rates payable under this
Agreement, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court
of competent jurisdiction shall, in a final determination, deem applicable. Borrower and the Lender Group, in executing and delivering
this Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided,
that, anything contained herein to the contrary notwithstanding, if such rate or rates of interest or manner of payment exceeds
the maximum allowable under applicable law, then, ipso facto, as of the date of this Agreement, Borrower is and shall be
liable only for the payment of such maximum amount as is allowed by law, and payment received from Borrower in excess of such
legal maximum, whenever received, shall be applied to reduce the principal balance of the Obligations to the extent of such excess.

 

(g)               
Payment. Except to the extent provided to the contrary in Section ‎2.6(c), (i) all interest and all other
fees payable hereunder or under any of the other Loan Documents shall be due and payable, in arrears, on the Interest Payment
Date and, with respect to accrued and unpaid interest on any Loan being prepaid or repaid, the date of such prepayment or repayment,
and (ii) all costs and expenses payable hereunder or under any of the other Loan Documents, and all Lender Group Expenses shall
be due and payable on the earlier of (x) the first day of the month following the date on which the applicable costs, expenses,
or Lender Group Expenses were first incurred or (y) the date on which demand therefor is made by Agent (it being acknowledged
and agreed that any charging of such costs, expenses or Lender Group Expenses to the Loan Account pursuant to the provisions of
the following sentence shall be deemed to constitute a demand for payment thereof for the purposes of this subclause (y)). Borrower
hereby authorize Agent, from time to time without prior notice to Borrower, to charge to the Loan Account (A) as and when due
and payable, all fees payable hereunder or under any of the other Loan Documents, (B) as and when incurred or accrued, all Lender
Group Expenses, and (C) as and when due and payable all other payment obligations payable under any Loan Document. All amounts
(including interest, fees, costs, expenses, Lender Group Expenses, or other amounts payable hereunder or under any other Loan
Document) shall constitute Obligations hereunder, and shall initially accrue interest at the rate then applicable to Loans.

 

2.7              
Crediting Payments. The receipt of any payment item by Agent shall not be required to be considered a payment
on account unless such payment item is a wire transfer of immediately available federal funds made to Agent’s Account or
unless and until such payment item is honored when presented for payment. Should any payment item not be honored when presented
for payment, then Borrower shall be deemed not to have made such payment and interest shall be calculated accordingly. Anything
to the contrary contained herein notwithstanding, any payment item shall be deemed received by Agent only if it is received into
Agent’s Account in Dollars on a Business Day on or before 2:00 p.m. If any payment item is received into Agent’s Account
on a non-Business Day or after 2:00 p.m. on a Business Day (unless Agent, at the direction of the Required Lenders in 

 

    -10-

     

    

their
sole discretion, elects to credit it on the date received), it shall be deemed to have been received by Agent as of the opening
of business on the immediately following Business Day.

 

2.8              
Designated Account. Agent and any other member of the Lender Group is authorized to make the Loans under
this Agreement based upon telephonic or other instructions received from anyone purporting to be an Authorized Person or, without
instructions, if pursuant to Section ‎2.6(d). Borrower agrees to establish and maintain the Designated Account with
the Designated Account Bank for the purpose of receiving the proceeds of the Loans requested by Borrower and made by Agent or
the Lenders hereunder. Unless otherwise agreed by Agent and Borrower, any Loan requested by Borrower and made by Agent or the
Lenders hereunder shall be made to the Designated Account.

 

2.9              
Maintenance of Loan Account; Statements of Obligations. Agent shall maintain an account on its books in the
name of Borrower (the “Loan Account”) on which Borrower will be charged with all Loans made by Agent or the
Lenders to Borrower or for Borrower’s account and with all other payment Obligations hereunder or under the other Loan Documents,
including, accrued interest, fees and expenses, and Lender Group Expenses. In accordance with Section ‎2.7, the Loan
Account will be credited with all payments received by Agent from Borrower or for Borrower’s account. Agent shall make available
to Borrower monthly statements regarding the Loan Account, including the principal amount of the Loans, interest accrued hereunder,
fees accrued or charged hereunder or under the other Loan Documents, and a summary itemization of all charges and expenses constituting
Lender Group Expenses accrued hereunder or under the other Loan Documents, and each such statement, absent manifest error, shall
be conclusively presumed to be correct and accurate and constitute an account stated between Borrower and the Lender Group unless,
within 30 days after Agent first makes such a statement available to Borrower, Borrower shall deliver to Agent written objection
thereto describing the error or errors contained in such statement.

 

2.10           
[Reserved].

 

2.11           
[Reserved].

 

2.12           
[Reserved].

 

2.13           
Capital Requirements.

 

(a)               
If, after the date hereof, any Lender determines that (i) any Change in Law regarding capital or reserve requirements for
banks or bank holding companies, or (ii) compliance by such Lender, or its parent bank holding companies, with any guideline,
request or directive of any Governmental Authority regarding capital adequacy (whether or not having the force of law), has the
effect of reducing the return on such Lender’s, or such holding companies’ capital as a consequence of such Lender’s
commitments hereunder to a level below that which such Lender, or such holding companies could have achieved but for such Change
in Law or compliance (taking into consideration such Lender’s, or such holding companies’ then existing policies with
respect to capital adequacy and assuming the full utilization of such entity’s capital) by any amount deemed by such Lender
to be material, then such Lender may notify Borrower and Agent thereof. Following receipt of such notice, Borrower agrees to pay
such Lender on demand the amount of such reduction of return of capital as and when such reduction is determined, payable within
30 days after presentation by such Lender of a statement in the amount and setting forth in reasonable detail such Lender’s
calculation thereof and the assumptions upon which such calculation was based (which statement shall be deemed true and correct
absent manifest error). In determining such amount, such Lender may use any reasonable averaging and attribution methods. Failure
or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s
right to demand such compensation; provided that Borrower shall not be required to compensate a Lender pursuant to this
Section for any reductions in return incurred more than 180 days prior to the date that such Lender notifies Borrower of such
Change in Law giving rise to such reductions and of such Lender’s intention to claim compensation therefor; provided
further that if such claim arises by reason of the Change in 

 

    -11-

     

    

Law
that is retroactive or if the effects of such Change in Law were not reasonably known to such Lender during such 180-day period
referred to above, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof
or the date such effects of such Change in Law became known or would have reasonably been known to such Lender, as applicable.
Borrower shall not be required to pay any amount to any Person under this Section ‎2.13(a) in respect of any Taxes
governed by Section ‎16 of this Agreement or any Excluded Taxes.

 

(b)              
If any Lender requests amounts under Section ‎2.13(a) (such Lender, an “Affected Lender”),
then such Affected Lender shall use reasonable efforts to promptly designate a different one of its lending offices or to assign
its rights and obligations hereunder to another of its offices or branches, if (i) in the reasonable judgment of such Affected
Lender, such designation or assignment would eliminate or reduce amounts payable pursuant to Section ‎2.13(a) and (ii)
in the reasonable judgment of such Affected Lender, such designation or assignment would not subject it to any material unreimbursed
cost or expense and would not otherwise be materially disadvantageous to it. Borrower agrees to pay all reasonable out-of-pocket
costs and expenses incurred by such Affected Lender in connection with any such designation or assignment. If, after such reasonable
efforts, such Affected Lender does not so designate a different one of its lending offices or assign its rights to another of
its offices or branches so as to eliminate Borrower’s obligation to pay any future amounts to such Affected Lender pursuant
to Section ‎2.13(a), then Borrower (without prejudice to any amounts then due to such Affected Lender under Section
‎2.13(a), as applicable) may, unless prior to the effective date of any such assignment the Affected Lender withdraws
its request for such additional amounts under Section ‎2.13(a), may substitute a Lender reasonably acceptable to Agent
to purchase the Obligations owed to such Affected Lender and such Affected Lender’s Commitments hereunder (a “Replacement
Lender”), and if such Replacement Lender agrees to such purchase, such Affected Lender shall assign to the Replacement
Lender its Obligations and Commitments, and upon such purchase by the Replacement Lender, which such Replacement Lender shall
be deemed to be a “Lender” for purposes of this Agreement and such Affected Lender shall cease to be a “Lender”
for purposes of this Agreement.

 

(c)               
Notwithstanding anything herein to the contrary, the protection of Section ‎2.13 shall be available to each
Lender (as applicable) regardless of any possible contention of the invalidity or inapplicability of the law, rule, regulation,
judicial ruling, judgment, guideline, treaty or other change or condition which shall have occurred or been imposed, so long as
it shall be customary for lenders affected thereby to comply therewith. Notwithstanding any other provision herein, neither Issuing
Bank nor any Lender shall demand compensation pursuant to this Section ‎2.13 if it shall not at the time be the general
policy or practice of Issuing Bank or such Lender (as the case may be) to demand such compensation in similar circumstances under
comparable provisions of other credit agreements, if any.

 

2.14           
Incremental Loans.

 

(a)               
At any time during the period from and after the Closing Date through but excluding the final day of the Availability Period,
the Borrower may (but subject to the conditions set forth in clauses ‎(b) and (c) below), add one or more new tranches of
term facilities and/or increase the principal amount of the term loan commitments by an amount in the aggregate for all such new
tranches and increases in term loan commitments not to exceed $20,000,000 (each such new tranche or increase, an “Incremental
Facility” and the loans thereunder, “Incremental Loans”). Incremental Facilities may be provided
by any Lender (it being understood that no Lender shall be obligated to increase its Commitments or participate in any Incremental
Facility) or any prospective lender who is reasonably satisfactory to Agent and Borrower. The Borrower shall not be obligated
to offer the opportunity to any Lender (other than the Initial Lenders) to participate in any Incremental Facility. Any Incremental
Facility shall be in an amount of at least $1,000,000.

 

(b)              
Each of the following shall be conditions precedent to any Incremental Facility:

 

    -12-

     

    

(i)                
Agent or Borrower has obtained the commitment of one or more Lenders (or other prospective lenders) reasonably satisfactory
to Agent and Borrower to provide the applicable Incremental Facility and any such Lenders (or prospective lenders) shall have
executed and delivered to the Agent and the Borrower such documentation as may be reasonably required by the Agent to evidence
and effectuate such Incremental Facility (an “Incremental Agreement” and the date of the effectiveness of such
Incremental Agreement the “Incremental Date”), in form and substance reasonably satisfactory to the Initial
Lenders (or, if no Initial Lenders are party to this Agreement at such time, the Required Lenders), to which such Lenders (or
prospective lenders), Borrower, and Agent are party, and

 

(ii)              
each of the conditions precedent set forth in Section ‎3.2 are satisfied.

 

On
the Incremental Date of such Incremental Agreement, each Lender party thereto and not previously a party to this Agreement shall
become a Lender for all purposes in connection with this Agreement. Any Incremental Agreement may, with the consent of Agent,
Borrower and the Lenders or prospective lenders agreeing to the proposed Incremental Facility, effect such amendments to this
Agreement and the other Loan Documents as may be necessary or appropriate to effectuate the provisions of this Section ‎2.14.

 

(c)               
The terms and provision of the Loans made pursuant to any Incremental Facility shall be as follows:

 

(i)                
the creation or provision of any Incremental Facility shall require the approval of the Initial Lenders (or, if no Initial
Lenders are party to this Agreement at such time, the Required Lenders) (which approval shall be separate and distinct from such
Lender’s discretionary right to agree to provide any portion of any Incremental Facility and any such approval of the providing
of Incremental Loans or the Borrower’s entering into any Incremental Facility shall not, in and of itself, require or imply
that such Lender agrees to provide any portion of such Incremental Facility),

 

(ii)              
the terms and conditions applicable to any Incremental Loan shall be identical to the Loans (it being understood that Incremental
Loans may be a part of the Loans), except (x) as to maturity and amortization (which shall be subject to the following clauses
(iii) and (iv)), (y) terms and conditions that are not more favorable to the Lenders of such Incremental Loan relative to the
Lenders holding the Loans outstanding immediately prior to the incurrence of such Incremental Loan and (z) as may be otherwise
agreed to by the Initial Lenders (or, if no Initial Lenders are party to this Agreement at such time, the Required Lenders), the
Lenders making such Incremental Loan and Borrower; provided that the terms and conditions applicable to any Incremental Loan maturing
after the latest Maturity Date in effect for the Loans outstanding immediately prior to the incurrence of such Incremental Loan
may provide for material additional or different financial or other covenants or prepayment requirements applicable only during
periods after such latest Maturity Date,

 

(iii)            
the Weighted Average Life to Maturity of any Incremental Loans shall be no shorter than the remaining Weighted Average
Life to Maturity of the then existing Loans, and

 

(iv)            
the maturity date of the Incremental Loans shall not be earlier than the Latest Maturity Date then in effect.

 

(d)                    
Unless otherwise specifically provided herein, all references in this Agreement and any other Loan Document to Loans shall
be deemed, unless the context otherwise requires, to include Loans made pursuant to any Incremental Facility pursuant to this
Section ‎2.14.

 

The
Incremental Loans established pursuant to this Section ‎2.14 shall constitute Loans under, and shall be entitled to
all the benefits afforded by, this Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit
equally and ratably from any guarantees and the security interests created by the

 

    -13-

     

    

Loan
Documents. Borrower shall take any actions reasonably required by Agent to ensure and demonstrate that the Liens and security
interests granted by the Loan Documents continue to be perfected under the Code or otherwise after giving effect to the establishment
of any such Incremental Facility.

 

3.             CONDITIONS;
TERM OF AGREEMENT.

 

3.1              
Conditions Precedent to the Closing Date Loans. The obligation of each Lender to make the Closing Date Loan
provided for hereunder is subject to the fulfillment, to the satisfaction of each Lender, of each of the conditions precedent
set forth on Schedule 3.1 (the making of such Closing Date Loan by a Lender being conclusively deemed to be its satisfaction
or waiver of the conditions precedent unless the Agent has received written notice from such Lender prior to the Closing Date
specifying its objection thereto), as well as the conditions set forth in Section ‎3.3.

 

3.2              
Conditions Precedent to each Subsequent Loan. The obligation of each Lender to make each Subsequent Loan
provided for hereunder is subject to the fulfillment, to the satisfaction of the Required Lenders, of each of the conditions precedent
set forth on Schedule 3.2 (the making of such Subsequent Loan by a Lender being conclusively deemed to be its satisfaction
or waiver of the conditions precedent unless the Agent received written notice from such Lender prior to the applicable Funding
Date specifying its objection thereto), as well as the conditions set forth in Section ‎3.3.

 

3.3              
Conditions Precedent to all Extensions of Credit. The obligation of the Lender Group (or any member thereof)
to make any Loan hereunder (or to extend any other credit hereunder) at any time shall be subject to the following conditions
precedent:

 

(a)               
the representations and warranties of Borrower or its Subsidiaries contained in this Agreement or in the other Loan Documents
shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date of such Loan,
as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier
date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality
in the text thereof) as of such earlier date); and

 

(b)              
no Default or Event of Default shall have occurred and be continuing on the date of such extension of credit, nor shall
either result from the making thereof.

 

3.4              
Maturity. Subject to Section ‎9.1, this Agreement shall continue in full force and effect for a term
ending on the Maturity Date.

 

3.5              
Effect of Maturity. On the Maturity Date, all commitments of the Lender Group to provide additional credit
hereunder shall automatically be terminated and all of the Obligations immediately shall become due and payable without notice
or demand and Borrower shall be required to repay all of the Obligations in full. No termination of the obligations of the Lender
Group (other than payment in full of the Obligations and termination of the Commitments) shall relieve or discharge any Loan Party
of its duties, obligations, or covenants hereunder or under any other Loan Document and Agent’s Liens in the Collateral
shall continue to secure the Obligations and shall remain in effect until all Obligations have been paid in full and the Commitments
have been terminated. When all of the Obligations have been paid in full and the Lender Group’s Commitments have been terminated
irrevocably, Agent will, at Borrower’s sole expense, execute and deliver any termination statements, lien releases, discharges
of security interests, and other similar discharge or release documents (and, if applicable, in recordable form) as are reasonably
necessary to release, as of record, Agent’s Liens and all notices of security interests and liens previously filed by Agent.

 

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3.6              
Conditions Subsequent. The obligation of the Lender Group (or any member thereof) to continue to make Loans
(or otherwise extend credit hereunder) is subject to the fulfillment, on or before the date applicable thereto (or such longer
date as the Required Lenders may agree), of the conditions subsequent described in Section 5.18 (the failure by Borrower
to so perform or cause to be performed such conditions subsequent as and when required by the terms thereof (after giving effect
to any extensions agreed to by the Required Lenders), shall constitute an Event of Default).

 

3.7              
Early Termination by Borrower. Borrower has the option, at any time upon ten (10) Business Days prior written
notice to Agent, to terminate this Agreement and terminate the Commitments hereunder by repaying to Agent all of the Obligations
in full. The foregoing notwithstanding, (a) Borrower may, by written notice to Agent, rescind termination notices relative to
proposed payments in full of the Obligations with the proceeds of third party Indebtedness if the closing for such issuance or
incurrence does not happen on or before the date of the proposed termination and the termination notice was stated to be conditional
upon such closing (in which case, a new notice shall be required to be sent in connection with any subsequent termination), and
(b) Borrower may extend the date of termination at any time with the consent of the Required Lenders if the termination notice
was stated to be conditional upon the occurrence of a specified event, which event has not yet occurred (which consent shall not
be unreasonably withheld or delayed to the extent not exceeding an aggregate period of an additional five Business Days).

 

4.             REPRESENTATIONS
AND WARRANTIES.

 

In
order to induce the Lender Group to enter into this Agreement, Borrower makes the following representations and warranties to
the Lender Group which shall be true, correct, and complete, in all material respects (except that such materiality qualifier
shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text
thereof), as of the Closing Date, and shall be true, correct, and complete, in all material respects (except that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality
in the text thereof), as of the date of the making of each Loan made thereafter, as though made on and as of the date of such
Loan (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations
and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable
to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of such earlier
date) and such representations and warranties shall survive the execution and delivery of this Agreement:

 

4.1              
Due Organization and Qualification; Subsidiaries.

 

(a)               
Parent and each Loan Party (i) is duly organized, incorporated (in the case of each Loan Party incorporated in Ireland)
and existing and (to the extent such concept is applicable in such jurisdiction) in good standing under the laws of the jurisdiction
of its organization, (ii) is qualified to do business in any jurisdiction where the failure to be so qualified could reasonably
be expected to result in a Material Adverse Effect, and (iii) has all requisite power and authority to own and operate its properties,
to carry on its business as now conducted and as proposed to be conducted, to enter into the Loan Documents to which it is a party
and to carry out the transactions contemplated thereby.

 

(b)              
Set forth on Schedule 4.1(b) (as such Schedule may be updated from time to time to reflect changes resulting from
transactions permitted under this Agreement) is a complete and accurate description of the authorized Equity Interests of Borrower,
by class, and, as of the Closing Date, a description of the number of shares of each such class that are issued and outstanding.
Borrower is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of
its or any of its Subsidiaries’ Equity Interests or any security convertible into or exchangeable for any of its or any
of its Subsidiaries’ Equity Interests.

 

    -15-

     

    

(c)               
Set forth on Schedule 4.1(c) (as such Schedule may be updated from time to time to reflect changes resulting from
transactions permitted under this Agreement), is a complete and accurate list of Parent’s direct and indirect Subsidiaries,
showing: (i) the number of shares of each class of common and preferred Equity Interests authorized for each of such Subsidiaries,
(ii) the number and the percentage of the outstanding shares of each such class owned directly or indirectly by Parent and (iii)
identification of whether such Subsidiary is a Guarantor. All of the outstanding Equity Interests of each such Subsidiary has
been validly issued and is fully paid and non-assessable.

 

(d)              
Except as set forth on Schedule 4.1(d), there are no subscriptions, options, warrants, or calls relating to any
shares of Borrower’s or any of its Subsidiaries’ Equity Interests, including any right of conversion or exchange under
any outstanding security or other instrument.

 

4.2              
Due Authorization; No Conflict.

 

(a)               
As to each Loan Party, the execution, delivery, and performance by such Loan Party of the Loan Documents to which it is
a party have been duly authorized by all necessary action on the part of such Loan Party.

 

(b)              
As to each Loan Party, the execution, delivery, and performance by such Loan Party of the Loan Documents to which it is
a party do not and will not (i) violate any material provision of Requirements of Law applicable to any Loan Party or its Subsidiaries,
the Governing Documents of any Loan Party or its Subsidiaries, or any order, judgment, or decree of any court or other Governmental
Authority binding on any Loan Party or its Subsidiaries, (ii) conflict with, result in a breach of, or constitute (with due
notice or lapse of time or both) a default under (A) 2015 Note Purchase Documents, the 2017 Note Purchase Documents, the Treximet
Note Purchase Documents, the ABL Loan Documents or any other Material Debt Documents or (B) any other Material Contract, except
to the extent for purposes of this clause (B), any such conflict, breach or default could not individually or in the aggregate
reasonably be expected to have a Material Adverse Effect, (iii) result in or require the creation or imposition of any Lien
of any nature whatsoever upon any assets of any Loan Party, other than Permitted Collateral Liens, (iv) require any approval of
any holder of Equity Interests of a Loan Party or any approval or consent of any Person under any Material Contract of any Loan
Party or any Subsidiary, other than consents or approvals that have been obtained and that are still in force and effect and except,
in the case of any Material Contract (other than the debt documents referred to in subclause (ii)(A) above), for consents or approvals,
the failure to obtain could not individually or in the aggregate reasonably be expected to cause a Material Adverse Effect or
(v) or materially adversely affect any Health Care Permit.

 

4.3              
Governmental Consents. The execution, delivery, and performance by each Loan Party of the Loan Documents
to which such Loan Party is a party and the consummation of the transactions contemplated by the Loan Documents do not and will
not require any registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority,
other than registrations, consents, approvals, notices, or other actions that have been obtained and that are still in force and
effect and except for filings and recordings with respect to the Collateral not yet required to be made pursuant to the terms
of this Agreement or the other Loan Documents, or otherwise delivered to Agent for filing or recordation, as of the Closing Date.

 

4.4              
Binding Obligations; Perfected Liens.

 

(a)               
Each Loan Document has been duly executed and delivered by each Loan Party that is a party thereto and is the legally valid
and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its respective terms, except
as enforcement may be limited by equitable principles or by bankruptcy, insolvency, examinership, reorganization, moratorium,
or similar laws relating to or limiting creditors’ rights generally.

 

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(b)              
Agent’s Liens are validly created, perfected and first priority Liens, or will be perfected, with the priority required
by this Agreement, within any applicable timeframes as set forth in the Loan Documents (except, in the case of perfection of any
Lien, to the extent none of the Loan Parties are required to take any further steps or actions pursuant to any Loan Document to
perfect such Lien), subject only to Permitted Collateral Liens.

 

4.5              
Title to Assets; No Encumbrances; Intellectual Property. Each of the Loan Parties and its Subsidiaries has
(a) good, sufficient and legal title to (in the case of fee interests in Real Property), (b) valid leasehold interests in (in
the case of leasehold interests in real or personal property), and (c) good and marketable title to (in the case of all other
personal property), all of their respective assets reflected in their most recent financial statements delivered to the Initial
Lenders prior to the Closing Date or delivered pursuant to Section ‎5.1, as applicable, in each case except for assets
disposed of since the date of such financial statements to the extent permitted hereby. All of such assets are free and clear
of Liens except for Permitted Liens. Each of Borrower and its Subsidiaries (if any) owns, or possesses the right to use, all of
the Intellectual Property that is reasonably necessary for the operation of their respective businesses as conducted, except for
those for which the failure to own or possess the right to use could not reasonably be expected to result in a Material Adverse
Effect. As of the Closing Date, a complete and correct list of all of (x) the registrations and applications for Intellectual
Property applicable to any of the Products or otherwise owned by any of the Loan Parties or its Subsidiaries and (y) licenses
of Intellectual Property (including Patent Licenses) applicable to any of the Products is set forth on Schedule 4.5. To
Borrower’s knowledge, the operation of Borrower’s and each of its Subsidiaries’ respective businesses, by Borrower
or any of its Subsidiaries as currently conducted, does not infringe upon or otherwise violate any Intellectual Property owned
by any other Person, except as, either individually or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect. No claim or litigation alleging that the Intellectual Property owned or used by Borrower or any of its Subsidiaries,
or the conduct of any Borrower’s or any of its Subsidiaries’ businesses, infringe or otherwise violate the Intellectual
Property of any Person, is pending or, to knowledge of Borrower, threatened in writing, which, either individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect. To Borrower’s knowledge, no Person has infringed or misappropriated
or is currently infringing or misappropriating any Intellectual Property owned by any of the Loan Parties or their Subsidiaries,
in each case, that either individually or in the aggregate could reasonably be expected to result in a Material Adverse Effect.
No Loan Party holds any assets as the trustee of any trust.

 

4.6              
Litigation.

 

(a)               
There are no actions, suits, or proceedings pending or, to the knowledge of Borrower, after due inquiry, threatened in
writing against a Loan Party or any of its Subsidiaries that either individually or in the aggregate could reasonably be expected
to result in a Material Adverse Effect.

 

(b)              
Schedule 4.6(b) sets forth a complete and accurate description of each of the actions, suits, or proceedings with
asserted liabilities in excess of, or that could reasonably be expected to result in liabilities in excess of $2,000,000 that,
as of the Closing Date, is pending or, to the knowledge of Borrower, after due inquiry, threatened against a Loan Party or any
of its Subsidiaries.

 

(c)               
To the knowledge of the Loan Parties, there is no pending or threatened Health Care Proceeding commenced, brought, conducted
or heard by or before, or otherwise involving, any Governmental Authority or arbitrator against or affecting any Loan Party or
any Subsidiary of any Loan Party, except to the extent such pending or threatened Health Care Proceeding could not reasonably
be expected to result in a Material Adverse Effect. No Loan Party has received written notice of any such Health Care Proceeding
against or affecting such Loan Party or any Subsidiary of such Loan Party.

 

4.7              
Compliance with Laws. No Loan Party nor any of its Subsidiaries is: (a) in violation of any applicable laws,
rules, regulations, executive orders, or codes (including Environmental Laws) that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect, or (b) subject to or in default

 

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with
respect to any final judgments, writs, injunctions, decrees, rules or regulations of any court or any federal, state, municipal
or other governmental department, commission, board, bureau, agency or instrumentality or any other Governmental Authority, domestic
or foreign, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

 

4.8              
No Material Adverse Effect. All historical financial statements relating to the Loan Parties and their Subsidiaries
that have been delivered by Borrower to Agent have been prepared in accordance with GAAP (except, as expressly noted therein and/or
in the case of unaudited financial statements, for the lack of footnotes and being subject to year-end audit adjustments) and
present fairly in all material respects, the Loan Parties’ and their Subsidiaries’ consolidated financial condition
as of the date thereof and results of operations for the period then ended. Since December 31, 2016, no event, circumstance, or
change has occurred that has or could reasonably be expected to result in a Material Adverse Effect with respect to the Loan Parties
and their Subsidiaries (it being understood and agreed that the award entered on February 2, 2017 in the arbitration proceeding
among certain Affiliates of Borrower and GlaxoSmithKline LLC, Glaxo Group Limited, GlaxoSmithKline Intellectual Property Holdings
Limited, GlaxoSmithKline Intellectual Property Management Limited and any other proceedings or events related to such award or
such proceeding has not resulted nor could reasonably be expected to result in a Material Adverse Effect).

 

4.9              
No Liquidation. All indebtedness represented by the Loans is being incurred for proper purposes and in good
faith. As of the Closing Date and as of the date of the making of any Loans hereunder, no steps have been taken or are currently
intended by any Loan Party or, to the knowledge of the Loan Parties, any other Person for the winding-up, liquidation, dissolution
or administration or for the appointment of a receiver or administrator of any Loan Party for all or any of the Loan Parties’
properties or assets. As of the Closing Date, after giving pro forma effect to the Transactions and the assumed use of the proceeds
of the Transactions to invest in the business of the Parent and its Subsidiaries,  Parent and its Subsidiaries, taken as a
whole and on a consolidated basis, will be able to pay their debts in the ordinary course of business.

 

4.10           
Employee Benefits. No Loan Party, none of their Subsidiaries, nor any of their ERISA Affiliates maintains
or contributes to, or within the last six years has contributed to, any Benefit Plan or Multiemployer Plan.

 

4.11           
Environmental Condition. Except as set forth on Schedule 4.11, (a) to Borrower’s knowledge,
no Loan Party’s nor any of its Subsidiaries’ properties or assets has ever been used by a Loan Party, its Subsidiaries,
or by previous owners or operators in the disposal of, or to produce, store, handle, treat, release, or transport, any Hazardous
Materials, where such disposal, production, storage, handling, treatment, release or transport was in violation, in any material
respect, of any applicable Environmental Law, (b) to Borrower’s knowledge, after due inquiry, no Loan Party’s nor
any of its Subsidiaries’ properties or assets has ever been designated or identified in any manner pursuant to any Environmental
Law as a Hazardous Materials disposal site or as a location at which any material Remedial Action is required pursuant to any
Environmental Law, (c) no Loan Party nor any of its Subsidiaries has received notice that an Environmental Lien has attached to
any revenues or to any Real Property owned or operated by a Loan Party or its Subsidiaries or that any such Environmental Lien
has caused such Real Property to be subject to any material restrictions on the ownership, occupancy, use of transferability of
such Real Property by any Loan Party or any of its Subsidiaries, (d) except to the extent such Loan Party or Subsidiary has set
aside on its books financial reserves as required by GAAP (or such other generally accepted accounting principles as may be applicable
in the relevant jurisdiction), to Borrower’s knowledge, there are no releases of Hazardous Materials at, on, under, from
or affecting any Real Property, or other Environmental Liabilities, that are reasonably expected to form the basis of a material
Environmental Action against any Loan Party or any of its Subsidiaries and (e) no Loan Party nor any of its Subsidiaries nor any
of their respective facilities or operations is subject to any outstanding Environmental Action or any written order, consent
decree, or settlement agreement with any Person relating to any Environmental Law or Environmental Liability that individually
or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

 

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4.12           
Complete Disclosure. All factual information taken as a whole (other than forward-looking information and
projections and information of a general economic nature and general information about Borrower’s industry) furnished by
or on behalf of a Loan Party or its Subsidiaries in writing to Agent or any Lender (including all information contained in the
Schedules hereto or in the other Loan Documents) for purposes of or in connection with this Agreement or the other Loan Documents,
and all other such factual information taken as a whole (other than forward-looking information and projections and information
of a general economic nature and general information about Borrower’s industry) hereafter furnished by or on behalf of a
Loan Party or its Subsidiaries in writing to Agent or any Lender will be, true and accurate, in all material respects, on the
date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such
information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such
information was provided. As of the date on which any Projections are delivered to Agent and/or the Lenders, such Projections
represent Borrower’s good faith estimate, on the date such Projections are delivered, of the Loan Parties’ and their
Subsidiaries’ future performance for the periods covered thereby based upon assumptions believed by Borrower to be reasonable
at the time of the delivery thereof to Agent and/or Lenders (it being understood that such Projections are subject to uncertainties
and contingencies, many of which are beyond the control of the Loan Parties and their Subsidiaries, that no assurances can be
given that such Projections will be realized, and that actual results may differ in a material manner from such Projections).

 

4.13           
Patriot Act. To the extent applicable, each Loan Party is in compliance, in all material respects, with the
(a) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto,
(b) Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot
Act of 2001) (the “Patriot Act”) and (c) any other applicable Anti-Terrorism Laws. No part of the proceeds
of the loans made hereunder will be used by any Loan Party or any of their Affiliates, directly or indirectly, for any payments
to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone
else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation
of the United States Foreign Corrupt Practices Act of 1977, as amended.

 

4.14           
Indebtedness. Set forth on Schedule 4.14 is a true and complete list of all Indebtedness of each Loan
Party and each of its Subsidiaries outstanding immediately prior to the Closing Date that is to remain outstanding immediately
after giving effect to the closing hereunder on the Closing Date and such Schedule accurately sets forth the aggregate principal
amount of such Indebtedness as of the Closing Date.

 

4.15           
Payment of Taxes. Except as otherwise permitted under Section ‎5.5, all income and other material
tax returns and reports of each Loan Party and its Subsidiaries required by any Governmental Authority to be filed by any of them
have been timely filed with the appropriate Governmental Authority, and all income and other material taxes shown on such tax
returns to be due and payable and all material assessments, fees and other governmental charges upon a Loan Party and its Subsidiaries
and upon their respective assets, income, businesses and franchises that are due and payable have been paid to the appropriate
Governmental Authority when due and payable. Each Loan Party and each of its Subsidiaries have made adequate provision in accordance
with GAAP for all taxes not yet due and payable. Borrower does not know of any proposed tax assessment against a Loan Party or
any of its Subsidiaries that is not being actively contested by such Loan Party or such Subsidiary diligently, in good faith,
and by appropriate proceedings; provided such reserves or other appropriate provisions, if any, as shall be required in conformity
with GAAP shall have been made or provided therefor. Except as set forth on Schedule 4.15, as of the Closing Date, there
is no unstayed action, suit, proceeding, investigation (solely in the case of investigations, known to Borrower), audit, or claim
now pending or, to the knowledge of Borrower, threatened by any authority regarding any material taxes relating to the Parent
or any of its Subsidiaries. Except as set forth on Schedule 4.15, neither the Borrower nor any of its Subsidiaries has entered
into a currently effective agreement or waiver extending, or having the effect of extending, any statute of limitations relating
to the payment or collection of any material taxes of the Parent or any of its Subsidiaries.

 

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4.16           
Margin Stock. No Loan Party nor any of its Subsidiaries is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds
of the loans made to Borrower will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose
of purchasing or carrying any Margin Stock or for any purpose that violates the provisions of Regulation T, U or X of the Board
of Governors.

 

4.17           
Governmental Regulation. No Loan Party is a “registered investment company” or a company “controlled”
by a “registered investment company” or a “principal underwriter” of a “registered investment company”
as such terms are defined in the Investment Company Act of 1940. No Loan Party is required to be registered under the Investment
Company Act of 1940.

 

4.18           
OFAC. No Loan Party nor any of its Subsidiaries is in violation of any of the country or list based economic
and trade sanctions administered and enforced by OFAC. No Loan Party nor any of its Subsidiaries (a) is a Sanctioned Person or
a Sanctioned Entity, (b) has its assets located in Sanctioned Entities, or (c) derives revenues from investments in, or transactions
with Sanctioned Persons or Sanctioned Entities. No proceeds of any Loan made hereunder will be used to fund any operations in,
finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity.

 

4.19           
Employee and Labor Matters. There is (i) no unfair labor practice complaint pending or, to the knowledge
of Borrower, threatened against Borrower or its Subsidiaries before any Governmental Authority and no grievance or arbitration
proceeding pending or threatened against Borrower or its Subsidiaries which arises out of or under any collective bargaining agreement
and that could reasonably be expected to result in a Material Adverse Effect, (ii) no strike, labor dispute, slowdown, stoppage
or similar action or grievance pending or threatened in writing against Borrower or its Subsidiaries that could reasonably be
expected to result in a Material Adverse Effect or (iii) as of the Closing Date, to the knowledge of Borrower, after due inquiry,
no union representation question existing with respect to the employees of Parent or its Subsidiaries and no union organizing
activity taking place with respect to any of the employees of Parent or its Subsidiaries. None of Borrower or its Subsidiaries
has incurred any liability or obligation under the Worker Adjustment and Retraining Notification Act or similar state law, which
remains unpaid or unsatisfied. The hours worked and payments made to employees of Borrower and its Subsidiaries have not been
in violation of the Fair Labor Standards Act or any other applicable legal requirements, except to the extent such violations
could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. All material payments
due from Borrower or its Subsidiaries on account of wages and employee health and welfare insurance and other benefits have been
paid or accrued as a liability on the books of Borrower, except where the failure to do so could not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect.

 

4.20           
[Reserved].

 

4.21           
Leases. Each Loan Party and its Subsidiaries enjoy peaceful and undisturbed possession under all leases material
to their business and to which they are parties or under which they are operating, and, subject to Permitted Protests, all of
such material leases are valid and subsisting and no default by the applicable Loan Party or its Subsidiaries exists under any
of them, except as could not reasonably be expected to result in a Material Adverse Effect.

 

4.22           
[Reserved].

 

4.23           
[Reserved].

 

4.24           
[Reserved].

 

4.25           
[Reserved].

 

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4.26          Health
Care and Regulatory Matters.

 

(a)               
Compliance with Health Care Laws; Health Care Permits. Each Loan Party and each of their respective Subsidiaries
is in compliance with all Health Care Laws, Registrations and requirements of Government Drug Rebate Programs applicable to it
and its assets, business or operations, except to the extent (x) related to certain DESI Program Products and (y) that any noncompliance,
individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. Except as disclosed with
respect to DESI Program Products or as disclosed in Schedule 4.26 or in public filings of the Parent with the SEC prior
to the Closing Date, (i) each Loan Party and each of their Subsidiaries (x) holds in full force and effect (without default, violation
or noncompliance) all Health Care Permits necessary for it to own, lease, sublease or operate its assets or to conduct its business
and operations as presently conducted (including to include its Products in any Government Drug Rebate Program in which it participates),
except to the extent where such failure to be in full force and effect or such default, material violation or material noncompliance,
individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect and (y) to the extent prudent
and customary in the industry in which it is engaged, has obtained and maintains accreditation from all generally recognized accreditation
agencies, (ii) to the knowledge of each Loan Party, no circumstance exists or event has occurred which could reasonably be expected
to result in the suspension, revocation, termination, restriction, limitation, modification or non-renewal of any Health Care
Permit that could reasonably be expected to have a Material Adverse Effect, (iii) the Products provided by any Loan Party are
qualified for participation in the Government Drug Rebate Programs, and each Loan Party and each of their Subsidiaries is entitled
to participate in the Government Drug Rebate Programs and (iv) no Loan Party or any of its Subsidiaries directly bills, receives
reimbursement from, or otherwise participates as a provider or supplier in the Medicare or any Medicaid program.

 

(b)              
Rebates. Except to the extent a failure to do so would not reasonably be expected to result in a Material Adverse
Effect, each Loan Party and each of their respective Subsidiaries has timely filed or caused to be timely filed all reports that
it is required to file under applicable Requirements of Law with respect to Government Drug Rebate Programs. No Loan Party is
aware of any claims, actions or appeals pending before any administrative contractor, intermediary or carrier or any other Governmental
Authority with respect to any such reports filed by such Loan Party, or any claim made by any Governmental Authority in connection
with any audit of such reports.

 

(c)               
Material Statements. No Loan Party nor any of their Subsidiaries, nor any officer, affiliate, employee or agent
of any Loan Party or any Subsidiary of any Loan Party, has made an untrue statement of a material fact or fraudulent statement
to any Governmental Authority, failed to disclose a material fact that must be disclosed to any Governmental Authority, or committed
an act, made a statement or failed to make a statement that, at the time such statement, disclosure or failure to disclose occurred,
would constitute a violation of any Health Care Law that could reasonably be expected to have a Material Adverse Effect.

 

(d)              
Exclusion. Except (1) as disclosed in public filings of the Parent with the SEC prior to the Closing Date or (2)
where any of the following would not reasonably be expected to result in a Material Adverse Effect, no Loan Party nor any of their
Subsidiaries, nor, to the knowledge of any Loan Party, any owner, officer, director, partner, agent or managing employee or Person
with a “direct or indirect ownership interest” (as that phrase is defined in 42 C.F.R. § 420.201) in any Loan
Party or any Subsidiary of any Loan Party, has (i) had a civil monetary penalty assessed pursuant to 42 U.S.C. § 1320a-7;
(ii) been suspended, debarred or excluded from participation in Medicare, Medicaid or any other federal or state healthcare program;
(iii) been convicted (as that term is defined in 42 C.F.R. §1001.2) of any of those offenses described in 42 U.S.C. §1320a-7b
or 18 U.S.C. §§669, 1035, 1347 or 1518, including any of the following categories of offenses: (A) criminal offenses
relating to the delivery of an item or service under any federal health care program (as that term is defined in 42 U.S.C. §1320a-7b)
or healthcare benefit program (as that term is defined in 18 U.S.C. §24b), (B) criminal offenses under federal or state law
relating to patient neglect or abuse in connection with the delivery of a healthcare item or service, (C) criminal offenses under
laws relating to fraud and abuse, theft, embezzlement, false statements to third

 

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parties,
money laundering, kickbacks, breach of fiduciary responsibility or other financial misconduct in connection with the delivery
of a healthcare item or service or with respect to any act or omission in a program operated by or financed in whole or in part
by any federal, state or local governmental agency, (D) laws relating to the interference with or obstruction of any investigations
into any criminal offenses described in this clause ‎‎(d), or (E) criminal offenses under laws relating to the
unlawful manufacturing, distribution, prescription or dispensing of a controlled substance; or (iv) been involved or named in
a complaint made or any other action taken pursuant to the False Claims Act under 31 U.S.C. §§3729-3731 or qui tam action
brought pursuant to 31 U.S.C. §3729 et seq.

 

(e)               
HIPAA. Except to the extent that failure to do so would not reasonably be expected to result in a Material Adverse
Effect, each Loan Party and each of their respective Subsidiaries is in compliance with HIPAA. Further, in each contractual arrangement
that is subject to HIPAA, the relevant Loan Party and each of its respective Subsidiaries has: (i) entered into a written business
associate agreement (as such term is defined under the HIPAA regulations) that substantially meets the requirements of HIPAA;
(ii) at all times complied in all material respects with such business associate agreements in respect of the HIPAA privacy or
security standards; and (iii) to such Loan Party or Subsidiary’s knowledge, at no time experienced or had a material unauthorized
use or disclosure of Protected Health Information (as defined in the HIPAA regulations) or privacy or security breach or other
privacy or security incident within the meaning of HIPAA.

 

(f)               
Corporate Integrity Agreement. Except as disclosed in public filings of the Parent with the SEC prior to the Closing
Date, no Loan Party nor any of their Subsidiaries, nor any owner, officer, director, partner, agent or managing employee of any
Loan Party or any Subsidiary of any Loan Party, is a party to or bound by any individual integrity agreement, corporate integrity
agreement, corporate compliance agreement, deferred prosecution agreement, consent order, consent decree, settlement agreement,
or other formal or informal agreement with any Governmental Authority concerning compliance with Health Care Laws, any Government
Drug Rebate Programs or the requirements of any Health Care Permit.

 

4.27           
FDA Regulatory Compliance.

 

(a)               
Except as disclosed with respect to DESI Program Products or as disclosed in Schedule 4.26 or in public filings
of the Parent with the SEC prior to the Closing Date and (2) as would not reasonably be expected to result in a Material Adverse
Effect, (i) each Loan Party and each of their Subsidiaries has, and it and its Products are in conformance with, all Registrations,
(ii) all Registrations are valid and in full force and effect; (iii) to the knowledge of each Loan Party, neither the FDA nor
any comparable Governmental Authority is considering limiting, suspending, or revoking any such Registration; (iv) the Loan Parties
and each of their Subsidiaries have fulfilled and performed their obligations under each Registration, and no event has occurred
or condition or state of facts exists which would constitute a breach or default under, or would cause revocation or termination
of, any such Registration; and (v) all reports, documents, claims, permits, adverse event reports, complaints, notices, registrations
and applications required to be filed, maintained or furnished to the FDA or any other Regulatory Authority by a Loan Party or
any of its Subsidiaries have been so filed, maintained or furnished.

 

(b)              
Each Loan Party and each of their Subsidiaries are conducting their business and operations in compliance with all applicable
Health Care Laws, except to the extent that any noncompliance, individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect. Except (1) with respect to DESI Program Products or as disclosed in Schedule 4.26 or
in public filings of the Parent with the SEC prior to the Closing Date and (2) as would not reasonably be expected to result in
a Material Adverse Effect, (i) no Loan Party nor any of their Subsidiaries is subject to any obligation arising under an administrative
or regulatory action, proceeding, investigation or inspection by or on behalf of the FDA or any comparable Governmental Authority,
warning letter, Form FDA-483, untitled letter, notice of violation letter, consent decree, request for information or other notice,
response or commitment made to or with the FDA or any comparable Governmental Authority, in each case, in respect of such Loan
Party or its Subsidiary, and no such obligation has been threatened and (ii) no Loan Party has received written notice from a
Governmental Authority that any 

 

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Product
designed, developed, investigated, manufactured, prepared, assembled, packaged, tested, labeled, distributed, sold or marketed
by or on behalf of any Loan Party or any of their Subsidiaries that are subject to the jurisdiction of the FDA or any comparable
Governmental Authority are not being designed, developed, investigated, manufactured, prepared, assembled, packaged, tested, labeled,
distributed, sold and marketed in compliance with the Health Care Laws.

 

(c)       Except
as would not reasonably be expected to be result in a Material Adverse Effect, all pre-clinical and clinical investigations conducted
or sponsored by or on behalf of any Loan Party or any of their Subsidiaries are being and have been conducted in compliance with
all applicable Health Care Laws including (i) FDA standards for the design, conduct, performance, monitoring, auditing, recording,
analysis and reporting of clinical trials contained in Title 21 parts 50, 54, 56, 312 and 314 of the Code of Federal Regulations,
and (ii) federal and state Requirements of Law restricting the collection, use and disclosure of individually identifiable health
information and personal information.

 

(d)       Except
(i) as disclosed in public filings of the Parent with the SEC prior to the Closing Date or (ii) as would not reasonably be expected
to be result in a Material Adverse Effect, neither any Loan Party nor any of their Subsidiaries has voluntarily or involuntarily
initiated, conducted or issued, caused to be initiated, conducted or issued, or received written notice of any material recall,
field corrective action, market withdrawal or replacement, safety alert, warning, “dear doctor” letter, investigator
notice, or other notice or action to wholesalers, distributors, retailers, healthcare professionals or patients relating to an
alleged lack of safety, efficacy or regulatory compliance of any Product or is currently considering initiating, conducting or
issuing any recall of any Product.

 

4.28           
Material Contracts. Except for matters which, either individually or in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect, each Material Contract of any Loan Party or Subsidiary (other than those that
have expired at the end of their normal terms) (a) is in full force and effect and is binding upon and enforceable against the
applicable Loan Party or its Subsidiary and, to Borrower’s knowledge, after due inquiry, each other Person that is a party
thereto in accordance with its terms, (b) has not been otherwise amended or modified (other than amendments or modifications permitted
by Section 6.6(b)), and (c) is not in default due to the action or inaction of the applicable Loan Party or its Subsidiary.

 

4.29           
Insurance. Schedule 4.29 lists all insurance policies maintained by or on behalf of the Borrower as of the
Closing Date.

 

5.                  
AFFIRMATIVE COVENANTS.

 

Borrower
covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations (other than contingent
indemnification obligations for which no claim has been asserted):

 

5.1              
Financial Statements, Reports, Certificates. Borrower (a) will deliver to Agent each of the financial statements,
reports, notices and other items set forth on Schedule 5.1 no later than the times specified therein, (b) agrees that no
Loan Party or Subsidiary of a Loan Party will have a fiscal year different from that of Borrower and (c) agrees to maintain a
system of accounting that enables Borrower or Parent to produce financial statements in accordance with GAAP.

 

5.2              
IP Security Agreements. In order to facilitate filings with the United States Patent and Trademark Office
and the United States Copyright Office, and any other intellectual property registry in any other applicable jurisdiction Agent
may reasonably request, each Loan Party or Subsidiary of a Loan Party that owns registered Patents, Trademarks or Copyrights shall
execute and deliver to Agent one or more short form Intellectual Property security agreements, or supplements thereto, in appropriate
form for filing and in a format acceptable to the Agent in its reasonable discretion, to further evidence Agent’s Lien on
such Intellectual Property pursuant to the other applicable Loan Documents.

 

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5.3              
Existence. Except as otherwise permitted under Section ‎6.3 or Section ‎6.4, Borrower
will, and will cause each of its Subsidiaries to, at all times preserve and keep in full force and effect such Person’s
valid existence and (where applicable) good standing in its jurisdiction of organization and, except as could not reasonably be
expected to result in a Material Adverse Effect, good standing with respect to all other jurisdictions in which it is qualified
to do business and any rights, franchises, permits, licenses, accreditations, authorizations, or other approvals material to their
businesses.

 

5.4              
Maintenance of Properties. Borrower will, and will cause each of its Subsidiaries to, maintain and preserve
all of its assets that are necessary or useful in the proper conduct of its business in good working order and condition, ordinary
wear, tear, casualty, and condemnation and Permitted Dispositions excepted (and except where the failure to do so could not reasonably
be expected to result in a Material Adverse Effect).

 

5.5              
Taxes. Borrower will, and will cause each of its Subsidiaries to, pay in full before delinquency or before
the expiration of any extension period all federal and all other material governmental assessments and taxes imposed, levied,
or assessed against it, or any of its assets or in respect of any of its income, businesses, or franchises, except to the extent
that (a) the validity of such governmental assessment or tax is the subject of a Permitted Protest and so long as, in the case
of an assessment or tax that has or may become a Lien against any of the Collateral, such contest proceedings conclusively operate
to stay the sale of any portion of the Collateral to satisfy such assessment or tax or (b) the failure to pay could not reasonably
be expected, individually or in the aggregate, to have a Material Adverse Effect. Borrower will and will cause each of its Subsidiaries
to make timely payment or deposit of all material tax payments and withholding taxes required of it and them by applicable law,
including those laws concerning state disability, and local, state, and federal income taxes (and any foreign equivalent thereof).

 

5.6              
Insurance. Borrower will, or will cause Parent to, at Borrower’s or Parent’s expense, maintain
insurance respecting each of Borrower’s and its Subsidiaries’ assets wherever located, covering liabilities, losses,
damages and other risks and hazards as are customarily are insured against by other Persons engaged in same or similar businesses
and similarly situated and located. All such policies of insurance shall be with financially sound and reputable insurance companies
reasonably acceptable to Agent (it being agreed that, as of the Closing Date, each of Navigators Specialty Insurance Company,
Chubb Custom Insurance Company, Ironshore Specialty Insurance Company, Federal Insurance Company and Lloyd’s of London is
acceptable to Agent) and in such amounts as is carried generally in accordance with sound business practice by companies in similar
businesses similarly situated and located and, in any event, in amount, adequacy, and scope reasonably satisfactory to the Required
Lenders (it being agreed that the amount, adequacy, and scope of the policies of insurance of Borrower in effect as of the Closing
Date are acceptable to the Required Lenders). All property insurance policies covering the Collateral are to be made payable to
Agent for the benefit of Agent and the Lenders, as their interests may appear, in case of loss, pursuant to a standard loss payable
endorsement with a standard non-contributory “lender” or “secured party” clause and are to contain such
other provisions as Agent may reasonably require to fully protect the Lenders’ interest in the Collateral and to any payments
to be made under such policies. All certificates of property and general liability insurance are to be delivered to Agent, with
the loss payable (but only in respect of Collateral) and additional insured endorsements in favor of Agent and shall provide for
not less than 30 days (10 days in the case of non-payment) prior written notice to Agent of the exercise of any right of cancellation.
If Borrower or its Subsidiaries fails to maintain such insurance, Agent may arrange for such insurance, but at Borrower’s
expense and without any responsibility on Agent’s part for obtaining the insurance, the solvency of the insurance companies,
the adequacy of the coverage, or the collection of claims. Borrower shall give Agent prompt notice of any loss exceeding $250,000
covered by their or their Subsidiaries’ casualty or business interruption insurance. Upon the occurrence and during the
continuance of an Event of Default, Agent shall have the sole right to file claims under any property and general liability insurance
policies in respect of the Collateral, to receive, receipt and give acquittance for any payments that may be payable thereunder,
and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary
to effect the collection, compromise or settlement of any claims under any such insurance policies.

 

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5.7              
Inspection. Borrower will, and will cause each of its Subsidiaries to, permit Agent, any Lender, and each
of their respective duly authorized representatives or agents to visit any of its properties and inspect any of its assets or
books and records, to examine and make copies of its books and records, and to discuss its affairs, finances, and accounts with,
and to be advised as to the same by, its officers and employees (provided an authorized representative of Borrower shall be allowed
to be present) at such reasonable times and intervals as Agent or any Lender, as applicable, may designate and, so long as no
Default or Event of Default has occurred and is continuing, with reasonable prior notice to Borrower and during regular business
hours; provided that, so long as no Event of Default has occurred and is continuing, Agent and the Lenders taken as a whole
shall not exercise such rights at the Borrower’s expense more often than one time during any calendar year.

 

5.8              
Compliance with Laws. Borrower will, and will cause each of its Subsidiaries to, comply with the requirements
of all applicable laws, rules, regulations, and orders of any Governmental Authority, other than laws, rules, regulations, and
orders the non-compliance with which, individually or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.

 

5.9              
Environmental. Borrower will, and will cause each of its Subsidiaries to,

 

(a)               
Keep any property either owned or operated by Borrower or its Subsidiaries free of any Environmental Liens or post bonds
or other financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens,

 

(b)              
Comply, in all material respects, with Environmental Laws and provide to Agent documentation of any material non-compliance
which Agent reasonably requests,

 

(c)               
Promptly notify Agent of any release of which Borrower has knowledge of a Hazardous Material in any reportable quantity
from or onto property owned or operated by Borrower or its Subsidiaries and take any Remedial Actions required to abate said release
under, or otherwise to come into compliance with, in all material respects, applicable Environmental Law,

 

(d)              
Promptly, but in any event within five (5) Business Days of its receipt thereof, provide Agent with written notice of any
of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of Borrower
or its Subsidiaries, (ii) written notice of commencement of any material Environmental Action filed against or written notice
that a material Environmental Action will be filed against, Borrower or its Subsidiaries, and (iii) written notice of a material
violation, citation, or other administrative order from a Governmental Authority, and

 

(e)               
If Borrower or any of its Subsidiaries, or any tenant or occupant of any Real Property owned, leased or operated by Borrower
or any of its Subsidiaries, causes or permits any intentional or unintentional act or omission resulting in the presence or release
of any Hazardous Material (except in compliance with applicable Environmental Laws), Borrower agrees to undertake, and/or to cause
any of its Subsidiaries, and use commercially reasonable efforts to cause its tenants or occupants to undertake, at their sole
expense, any clean up, removal, remedial or other action required pursuant to Environmental Laws to remove and clean up any Hazardous
Materials from any Real Property except where the failure to do so has not resulted in, and could not reasonably be expected to
result in, a Material Adverse Effect.

 

5.10           
Intellectual Property. Each Loan Party and each of its Subsidiaries shall have the duty, with respect to
Intellectual Property that is necessary in or material to the conduct of such Loan Party’s or such Subsidiary’s business,
to use commercially reasonable efforts to protect and diligently enforce and defend such of its Intellectual Property, including
(A) to diligently enforce and defend, including promptly suing for infringement, misappropriation, or dilution and to recover
any and all damages for such infringement, misappropriation, or dilution, and filing for opposition, interference, and cancellation
against conflicting Intellectual Property rights of any Person, (B) to prosecute diligently any trademark application or service
mark application that is part of the

 

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Trademarks
pending as of the date hereof or hereafter until the termination of this Agreement, (C) to prosecute diligently any patent application
that is part of the Patents pending as of the date hereof or hereafter until the termination of this Agreement, (D) to take all
reasonable and necessary action to preserve and maintain all of such Loan Party’s or such Subsidiary’s Trademarks,
Patents, Copyrights, Intellectual Property licenses (including Patent Licenses), and its rights therein, including paying all
maintenance fees and filing of applications for renewal, affidavits of use, and affidavits of noncontestability, and (E) to require
all employees, consultants, and contractors of each Loan Party or Subsidiary who were involved in the creation or development
of such Intellectual Property to sign agreements containing assignment of Intellectual Property rights and obligations of confidentiality.
Each Loan Party and each of its Subsidiaries shall take the steps described in this Section 5.10 with respect to all new
or acquired Intellectual Property to which it is now or later becomes entitled that is necessary in or material to the conduct
of such Loan Party’s or such Subsidiary’s business. Each Loan Party and each of its Subsidiaries shall take reasonable
steps to maintain the confidentiality of, and otherwise protect and enforce its rights in, the Intellectual Property that is necessary
in or material to the conduct of such Loan Party’s or such Subsidiary’s business.

 

5.11           
Formation or Acquisition of Subsidiaries.  Borrower will, at the time that any Loan Party forms or incorporates
any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Closing Date, within 20 days of such
formation, incorporation or acquisition (or such later date as permitted by the Required Lenders in their sole discretion) (a)
cause such new Subsidiary to provide to Agent either a joinder to the Security Agreement or a security agreement that is consistent
with the Security Agreement or a security agreement that is otherwise customary for such Subsidiary’s jurisdiction of organization
or incorporation to provide an “all asset” lien and such other changes as are reasonably satisfactory to the Required
Lenders, together with such other guaranty or security agreements, as well as appropriate financing statements, all in form and
substance reasonably satisfactory to the Required Lenders (including being sufficient to grant Agent a first priority Lien (subject
only to Permitted Collateral Liens) in and to the types of assets of such newly formed, incorporated or acquired Subsidiary included
as “Collateral” or any similar term under the Security Agreement or any Additional Document); (b) grant a first priority
lien over the Equity Interests of such new Subsidiary in favor of the Agent to secure the Obligations; (c) cause such new Subsidiary
to provide to Agent a guaranty substantially similar to the form of guaranty included in the guaranty and security agreement provided
as of the Closing Date in connection with the ABL Credit Agreement, with changes as are reasonably satisfactory to the Required
Lenders and (d) provide to Agent all other documentation, including one or more opinions of counsel reasonably satisfactory to
the Required Lenders, which, in their opinion, is appropriate with respect to the execution and delivery of the applicable documentation
referred to above. Any document, agreement, or instrument executed or issued pursuant to this Section ‎5.11 shall constitute
a Loan Document.

 

5.12           
Further Assurances. (a) Borrower will, and will cause each of the other Loan Parties to, at any time upon
the reasonable request of Agent or the Required Lenders, execute or deliver to Agent any and all financing statements, fixture
filings, security agreements, pledges, assignments, opinions of counsel, and all other documents (together with any security documents
executed pursuant to Section 5.11, the “Additional Documents”) that the Agent or Required Lenders may reasonably
request in form and substance reasonably satisfactory to the Required Lenders, to create, perfect, ensure the enforceability of
and continue perfected or to better perfect Agent’s Liens in all of the assets of Borrower and its Subsidiaries of the type
that constitute “Collateral” or any similar term (as defined in the Security Agreement or in any Additional Document)
(whether now owned or hereafter arising or acquired, tangible or intangible, real or personal), or enable the Agent to apply for
any registration, or give any notification in connection with the Agent’s Lien in the Collateral so that the Lien has the
priority required by the Agent and in order to fully consummate all of the transactions contemplated hereby and under the other
Loan Documents; provided that the foregoing shall not apply to any Subsidiary of Borrower if providing such documents would
result in material adverse tax consequences to Parent and its Subsidiaries or the costs to the Loan Parties of providing such
documents are unreasonably excessive (as determined by the Required Lenders in consultation with Borrower) in relation to the
benefits to Agent and the Lenders of the security afforded thereby. To the maximum extent permitted by applicable law, Borrower
and each other Loan Party hereby authorizes Agent to execute any such Additional Documents in the applicable Loan Party’s
name and authorizes Agent to file such executed

 

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Additional
Documents in any appropriate filing office; provided that Agent shall not exercise such authority unless Borrower or any
other Loan Party refuses or fails to execute or deliver any reasonably requested Additional Documents within a reasonable period
of time following the request to do so or an Event of Default exists. In furtherance of, and not in limitation of, the foregoing,
each Loan Party shall take such actions as Agent or the Required Lenders may reasonably request from time to time to ensure that
the Obligations are guaranteed by the Guarantors and are secured by a first priority perfected Lien on all assets of Borrower
and the other Loan Parties (if any) of a type that constitute “Collateral” or any similar term (as defined in the
Security Agreement or in any Additional Document).

 

(b)
Upon entry into any Material Contract after the Closing Date, involving aggregate consideration payable to or by the Borrower
of $500,000 or more, the Borrower shall promptly (and in any event within 10 Business Days of entry thereto) notify the Agent
thereof and after reasonably request by Agent, shall serve a notice of assignment, substantially in the form of Schedule 5 to
the Security Agreement, on each of the other parties to such Material Contract and shall use reasonable endeavors to procure that,
within 30 days of the date of such notice (or such later date as the Agent may agree in its sole discretion), each of those other
parties acknowledges that notice,substantially in the form of Schedule 5 to the Security Agreement.

 

(c)
Upon entry into any material Insurance (as defined in the Security Agreement) involving aggregate coverage of $500,000 or more
for the assets of the Borrower, the Borrower shall promptly (and in any event within 10 Business Days of the execution and delivery
by the Borrower of the contracts evidencing such Insurance (as defined in the Security Agreement)) notify the Agent thereof and
after reasonably request by Agent, shall serve a notice of assignment, substantially in the form of Schedule 6 to the Security
Agreement, on each of the other parties to such Insurance (as defined in the Security Agreement) and shall use reasonable endeavors
to procure that, within 30 days of the date of such notice (or such later date as the Agent may agree in its sole discretion),
each of those other parties acknowledges that notice, substantially in the form of Schedule 6 to the Security Agreement.

 

5.13           
Zohydro Assets. Borrower shall ensure at all times that Agent maintains a perfected first-priority lien on
the Borrower’s and each of its Subsidiaries’ right, title and interest in, to and under Zohydro Assets.

 

5.14           
Lender Meetings. Parent will, at the request of Agent or of the Required Lenders and upon reasonable prior
notice, hold a quarterly meeting or conference call (at a mutually agreeable location and time or, in the case of a conference
call, at a mutually agreeable time) with all Lenders who choose to participate in such meeting or call at which meeting or call
shall be reviewed the financial results of the previous fiscal quarter or year, as applicable, and the financial condition of
Parent and its Subsidiaries and the projections presented for the current fiscal quarter or year, as applicable, of Parent.

 

5.15           
Material Contracts.

 

(a)       Each
Loan Party will, and each Loan Party will cause its Subsidiaries to, comply with all terms and conditions of and fulfill all obligations
under each Material Contract to which any of them is a party, except to the extent the failure to so comply would not result in
a Material Adverse Effect. Upon the occurrence of a breach of any such Material Contract by any other party thereto, which is
not cured as provided therein, each Loan Party will act in a commercially reasonable way in determining whether and how to enforce
its, or its Subsidiary’s, as applicable, rights and remedies thereunder.

 

(b)       Each
Loan Party will not, and each Loan Party will not permit any of its Subsidiaries to: (i) forgive, release or reduce any payment,
or delay or postpone any payment, owed to any Loan Party or any of their respective Affiliates under or in respect of any Material
Contract or (ii) amend, modify, restate, cancel, supplement, terminate or waive any provision of any Material Contract, grant
any consent thereunder or agree to do any of the foregoing, in each case, to the extent such forgiveness, release, reduction,
delay, postponement, amendment,

 

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modification,
restatement, cancellation, supplement, termination, waiver, grant or agreement would reasonably be expected to result in a Material
Adverse Effect.

 

5.16           
Compliance with Health Care Laws.

 

(a)               
Each Loan Party and each of their respective Subsidiaries will comply with all applicable Health Care Laws, except (i)
to the extent that any noncompliance, individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect or (ii) as disclosed with respect to the DESI Program Products or as disclosed in Schedule 4.26 or in public filings
of the Parent with the SEC prior to the Closing Date.

 

(b)              
Except (1) with respect to DESI Program Products or as disclosed in Schedule 4.26 or in public filings of the Parent
with the SEC prior to the Closing Date and (2) as would not reasonably be expected to result in a Material Adverse Effect, each
Loan Party and each of their respective Subsidiaries shall (i) obtain, maintain and preserve, and cause each of its Subsidiaries
to obtain, maintain and preserve, and take all necessary action to timely renew, all material Health Care Permits and Registrations
which are necessary or useful in the proper conduct of its business; (ii) be and remain in material compliance with all requirements
for participation in, and for licensure required to provide the goods or services that are reimbursable by any Governmental Authority
to any Person; (iii) with relation to any Persons providing services for or on behalf of any Loan Party (either as an employee
or independent contractor), (A) not use the services of such Persons who are not, to the Loan Parties’ knowledge, in compliance
with all applicable Health Care Laws in the performance of their duties and (B) cause such Persons to maintain in full force and
effect all professional licenses and other Health Care Permits required to perform such duties; and (iv) keep and maintain all
records required to be maintained by any Governmental Authority or otherwise under any Health Care Law. All Products designed,
developed, investigated, manufactured, prepared, assembled, packaged, tested, labeled, distributed, sold or marketed by or on
behalf of any Loan Party or any of their Subsidiaries that are subject to the jurisdiction of the FDA or any comparable Governmental
Authority shall be designed, developed, investigated, manufactured, prepared, assembled, packaged, tested, labeled, distributed,
sold and marketed in compliance with the Health Care Laws.

 

(c)               
Each Loan Party and each of their respective Subsidiaries that, in each case, actively engages in the marketing of Products,
shall maintain a corporate and health care regulatory compliance program (“RCP”) which addresses the requirements
of Health Care Laws, including HIPAA, and includes at least the following components: (i) standards of conduct and procedures
that describe compliance policies regarding laws with an emphasis on prevention of fraud and abuse; (ii) a specific officer within
high-level personnel identified as having overall responsibility for compliance with such standards and procedures; (iii) training
and education programs which effectively communicate the compliance standards and procedures to employees and agents, including
fraud and abuse laws; (iv) auditing and monitoring systems and reasonable steps for achieving compliance with such standards and
procedures including publicizing a reporting system to allow employees and other agents to anonymously report criminal or suspect
conduct and potential compliance problems; (v) disciplinary guidelines and consistent enforcement of compliance policies including
discipline of individuals responsible for the failure to detect violations of the RCP; and (vi) mechanisms to immediately respond
to detected violations of the RCP. Each Loan Party and each of their respective Subsidiaries shall modify such RCPs from time
to time, as may be necessary to ensure continuing compliance with all applicable Health Care Laws. Upon request, the Agent (and/or
its consultants) shall be permitted to review such RCPs.

 

(d)              
Borrower shall provide to Agent upon request, an accurate, complete and current list of all third party rebate agreements
with respect to the business of the Loan Parties.

 

5.17           
Use of Proceeds. Borrower shall use the proceeds of each Subsequent Loan only for the purposes listed in
Schedule 5.17 hereto, it being understood and agreed that if the proceeds of any Subsequent Loan are used, directly or indirectly,
to acquire any Equity Interests of any Person or any other assets, such acquired assets shall be

 

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included
as Collateral to the same extent as the assets held by Borrower on the Closing Date and any Person whose Equity Interests are
so acquired shall become a Guarantor.

 

5.18           
Post-Closing Obligations. Subject to Section 3.6 (with respect to grace periods, notice periods and
extensions provided for therein), the Loan Parties shall execute and deliver the documents and complete the tasks set forth on
Schedule 5.18, in each case within the time periods specified therefor.

 

6.             
NEGATIVE COVENANTS.

 

Borrower
covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations (other than contingent
indemnification obligations for which no claim has been asserted):

 

6.1              
Indebtedness and Contingent Obligations. Borrower will not, and will not permit any of its Subsidiaries to,
create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or indirectly, liable with respect
to (i) any Indebtedness, except for Permitted Indebtedness or (ii) any Contingent Obligations, except for Permitted Contingent
Obligations.

 

In
the event that an item of proposed Indebtedness meets the criteria of more than one of the categories of Permitted Indebtedness
described in clauses (a) through (w) of the definition of “Permitted Indebtedness”, the Borrower on the date of its
incurrence, shall be permitted to divide and classify (a “Classification”) such item of Indebtedness in more
than one of the types of Permitted Indebtedness and only be required to include the amount and type of such Indebtedness in one
of such types and from time to time to reclassify (a “Reclassification”) all or a portion of such item of Indebtedness
into one or more of the types of Permitted Indebtedness; provided, that, the Borrower will deliver a certificate executed by an
Authorized Officer to the Agent providing details of the nature and amounts of the Classification or Reclassification, as applicable;
provided, further, that no Reclassification of Indebtedness into Indebtedness permitted by clause (v) of the definition of “Permitted
Indebtedness” is permitted.

 

6.2              
Liens. Borrower will not, and will not permit any of its Subsidiaries to create, incur, assume, or suffer
to exist, directly or indirectly, any Lien on any of its property or assets, of any kind, whether now owned or hereafter acquired,
or any income or profits therefrom, except for Permitted Liens.

 

6.3              
Restrictions on Fundamental Changes and Sale and Leaseback Transactions. Borrower will not, and will not
permit any of its Subsidiaries to do any of the following, except in compliance with Section 6.4:

 

(a)               
enter into any merger, consolidation, reorganization or recapitalization (other than a merger between an Acquisition Subsidiary and a Target to effectuate a Permitted Acquisition),

 

(b)              
liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution), or

 

(c)               
suspend or cease operating
a substantial portion of its or their business, except as expressly permitted pursuant to clause ‎(a)
or clause (b) above or pursuant to a transaction permitted under Section ‎6.4.

 

(d)              
form any new Subsidiary
(other than an Acquisition Subsidiary) without the prior written consent of the Required Lenders; provided, that, to the extent
the Required Lenders provide consent with respect to the formation of any new Subsidiary, such new Subsidiary shall become a Guarantor
pursuant Section 5.11, 

 

(e)               
enter into any arrangement
with any Person whereby, in a substantially contemporaneous transaction, a Loan Party or any Subsidiary of any Loan Party sells
or transfers all or substantially all of its right, title and interest in an asset and, in connection therewith, acquires or leases
back the right to use such asset.

 

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6.4              
Disposal of Assets. Other than Permitted Dispositions or transactions expressly permitted by Sections
‎6.3 or ‎6.9, Borrower will not, and will not permit any of its Subsidiaries to convey, sell, lease, license,
assign, transfer, abandon or otherwise dispose of (or enter into an agreement to convey, sell, lease, license, assign, transfer,
abandon or otherwise dispose of) any of its or their assets (whether in one transaction or a series of related transactions).

 

6.5              
Nature of Business. Borrower will not, and will not permit any of its Subsidiaries to make any material change
in the nature of its or their business as conducted by Parent and its Subsidiaries on the date hereof or acquire any properties
or assets that are not reasonably related to the conduct of such business activities; provided, that the foregoing shall
not prevent Borrower and its Subsidiaries from engaging in any business that is reasonably related or ancillary to the then-current
business of Parent and its Subsidiaries.

 

6.6              
Prepayments and Amendments. Borrower will not, and will not permit any of its Subsidiaries to,

 

(a)               
Except in connection with Refinancing Indebtedness permitted by Section ‎6.1,

 

(i)                
optionally prepay, redeem, defease, purchase or otherwise acquire any Indebtedness of Parent or its Subsidiaries, other
than: 

 

(A)       the
Obligations in accordance with this Agreement,

 

(B)       Permitted
Intercompany Advances and the Zohydro Intercompany Note,

 

(C)       The
ABL Facility Debt,

 

(D)       Permitted
Indebtedness owed to any Treximet Indenture Note Party,,

 

(E)       the
Zohydro Holdback Amount to Zogenix, as required pursuant to the terms of the Zogenix Purchase Agreement, so long as no Default
or Event of Default exists before or giving effect to any such payment of the Zohydro Holdback Amount,

 

(F)       with
respect to any Material Debt of any Loan Party or Subsidiary (other than the Treximet Note Purchase Debt, the 2015 Note Purchase
Debt, the 2017 Note Purchase Debt or the ABL Facility Debt), payments of principal made solely by exchanging such Material Debt
for shares of Qualified Equity Interests without any payment of cash (other than in respect of fractional shares in an amount
not to exceed $50,000), or

 

(G)       with
respect to the 2017 Note Purchase Debt, (1) payments of principal on the 2017 Note Purchase Debt made solely by exchanging such
2017 Note Purchase Debt for shares of Qualified Equity Interests without any payment of cash (other than in respect of fractional
shares in an amount not to exceed $50,000), (2) payments of cash, Equity Interest of Borrower or a combination thereof in satisfaction
of conversions of the Notes (as defined in the 2017 Indenture) pursuant to the terms of the 2017 Indenture or (3) redemptions
of the Notes (as defined in the 2017 Indenture) pursuant to the terms of the 2017 Indenture.

 

(ii)              
make any payment on account of Indebtedness that has been contractually subordinated in right of payment to the Obligations
if such payment is not permitted at such time under the subordination terms and conditions, or

 

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(b)              
Directly or indirectly, amend, modify, or change any of the terms or provisions of any of the following:

 

(i)                
any agreement, instrument, document, indenture, or other writing evidencing or concerning Permitted Indebtedness other
than (1) the Obligations in accordance with this Agreement, (2) Permitted Intercompany Advances, (3) Indebtedness permitted under
clauses (c), (j), (k) and (r) of the definition of Permitted Indebtedness and (4) Indebtedness referred
to in clauses (iii) through (vi) below,

 

(ii)              
the Governing Documents of any Loan Party or any of its Subsidiaries if the effect thereof, either individually or in the
aggregate, could reasonably be expected to be materially adverse to the interests of the Agent or the Lenders,

 

(iii)            
the Treximet Note Purchase Documents if such amendment or modification would (1) increase the principal amount of such
Indebtedness or the rate of interest payable thereon, (2) shorten the maturity date, or the average life to maturity, thereof,
(3) prohibit any Loan Party from performing its obligations under the Loan Documents, or restrict or impair the rights of Agent
to use any Intellectual Property or license of Intellectual Property on the terms set forth in the Loan Documents, (4) grant Liens
on any of the Collateral in favor of the Treximet Note Purchase Creditors (or any of them) or (5) result in the material terms
of such Treximet Note Purchase Debt to be less favorable in any material respect to the Loan Parties,

 

(iv)            
the 2015 Note Purchase Documents if such amendment or modification would (1) increase the principal amount of such Indebtedness
or the rate of interest payable thereon, (2) shorten the maturity date, or the average life to maturity, thereof, (3) prohibit
any Loan Party from performing its obligations under the Loan Documents, or restricting or impairing the rights of Agent to use
any Intellectual Property or license of Intellectual Property on the terms set forth in the Loan Documents, (4) grant Liens to
secure such 2015 Note Purchase Debt, or (5) result in the material terms of such 2015 Note Purchase Debt to be less favorable
in any material respect to the Loan Parties (it being understood and agreed that the 2015 Note Purchase Debt may be amended or
otherwise modified to increase or decrease the Conversion Rate (as defined in the 2015 Indenture)),

 

(v)              
the 2017 Note Purchase Documents if such amendment or modification would (1) increase the principal amount of such Indebtedness
or the rate of interest payable thereon, (2) shorten the maturity date, or the average life to maturity, thereof, (3) prohibit
any Loan Party from performing its obligations under the Loan Documents, or restricting or impairing the rights of Agent to use
any Intellectual Property or licenses of Intellectual Property on the terms set forth in the Loan Documents, (4) grant Liens to
secure such 2017 Note Purchase Debt, or (5) result in the material terms of such 2017 Note Purchase Debt to be less favorable
in any material respect to the Loan Parties (it being understood and agreed that the 2017 Note Purchase Debt may be amended or
otherwise modified to increase or decrease the Conversion Rate (as defined in the 2017 Indenture)), 

 

(vi)            
the Material Debt Documents (other than the 2015 Note Purchase Documents, the 2017 Note Purchase Documents, the Treximet
Note Purchase Documents or the ABL Loan Documents), if such amendment or modification would (1) increase the principal amount
of such Indebtedness or the rate of interest payable thereon, (2) shorten the maturity date, or the average life to maturity,
thereof, (3) prohibit any Loan Party from performing its obligations under the Loan Documents, or restricting or impairing the
rights of Agent to use any Intellectual Property or license of Intellectual Property on the terms set forth in the Loan Documents,
(4) grant Liens on any assets of any Loan Party or Subsidiary to secure such Material Debt, other than Liens permitted under clause
(u) of the definition of Permitted Liens or (5) result in the material terms of such Indebtedness to be less favorable in any
material respect to the Loan Parties, or

 

(vii)          
any agreement, instrument, document, indenture, or other writing evidencing or concerning Permitted Indebtedness with a
principal or committed amount in excess of $2,000,000, which

 

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amendment
or modification in any case prohibits any such Loan Party from performing its obligations under this Agreement or any other Loan
Document to which it is a party.

 

6.7              
Restricted Payments. Borrower will not, and will not permit any of its Subsidiaries to make any Restricted
Payment; provided, that, so long as (i) it is permitted by law and (ii) no Default or Event of Default shall have occurred
and be continuing or would result therefrom,

 

(a)               
Borrower may make repurchases of stock of former employees, directors or consultants pursuant to stock purchase agreements
so long as an Event of Default does not exist at the time of such repurchase and would not exist after giving effect to such repurchase,
provided, however, that all such repurchases do not exceed $300,000 in the aggregate per fiscal year; and provided, further, that
up to $300,000 of such amount may be carried over and used in subsequent fiscal years, in addition to the amounts permitted for
such fiscal year,

 

(b)              
Any Subsidiary of Borrower may make a dividends or distributions to Borrower,

 

(c)               
Any Loan Party or any of its Subsidiaries may make dividends payable solely in its common stock, and (iii) with respect
to the 2015 Note Purchase Debt, payable solely in Qualified Equity Interests,

 

(d)              
Any non-Loan Party Subsidiary may make dividends or distributions to another non-Loan Party Subsidiary or a Loan Party,

 

(e)               
Any Loan Party may make dividends or distributions to another Loan Party,

 

(f)               
(i) Borrower may make distributions or dividends paid to Parent (A) to pay reasonable and customary administrative operating
costs and expenses incurred in the Ordinary Course of Business and other reasonable and customary corporate overhead costs and
expenses (including out-of-pocket administrative, legal, accounting and similar expenses provided by third parties), incurred
to third parties in the Ordinary Course of Business, (B) to pay for customary compensation arrangements for, benefits for, indemnification
for, reimbursement of expenses of, and employment arrangements with, current or former directors, officers and other employees
of Parent and its Subsidiaries entered into in the Ordinary Course of Business, (C) to pay reasonable and customary audit and
other accounting and reporting expenses of Parent to third parties, (D) to pay for the payment of reasonable and customary insurance
premiums in the Ordinary Course of Business, (E) for cash management purposes in the Ordinary Course of Business, (F) to fund
any Restricted Payments as set forth in clauses (g) and (h) below, (G) to pay franchise taxes and other fees, taxes (other than
income taxes) imposed upon it and expenses required to maintain its corporate existence, (H) with respect to any taxable period
to permit Parent to pay federal and state income taxes then due and owing by Parent; provided that such distributions or dividends
shall be limited to an amount equal to the lesser of (x) the sum of (1) if Pernix Holdco 3, LLC and Parent are members of a consolidated,
combined or similar income tax group for U.S. federal or state income tax purposes (or Pernix Holdco 3, LLC is disregarded as
an entity separate from Parent for U.S. federal income tax purposes) during such period, the federal and state income taxes that
Pernix Holdco 3, LLC and its Subsidiaries would have been required to pay with respect to such taxable period if they were a stand-alone
tax group with Pernix Holdco 3, LLC as the corporate common parent of such stand-alone tax group, and otherwise zero, and (2)
the federal and state income taxes of Parent with respect to such taxable period that are attributable to the income of Borrower
and/or its Subsidiaries that is includible in gross income by Parent pursuant to Section 951 of the Code (or any similar or analogous
provision of state tax Law) and (y) Parent's aggregate federal and state income tax liability for such taxable period, (I) [reserved],
(J) to pay principal of, premium, if any, and interest on, and all other amounts payable under the ABL Facility Debt and the 2017
Note Purchase Debt and (K) to satisfy obligations arising under agreements in the Ordinary Course of Business pursuant to which
Parent is party rather than the relevant operating Subsidiary, including, (1) licenses, and co-promotion agreements for products

 

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distributed
by any Subsidiary of Parent, (2) marketing of products distributed by any Subsidiary of Parent, (3) agreements with pharmacy benefit
managers and managed care organizations related to rebates on products distributed by any Subsidiary of Parent, and (4) agreements
with distributors that provide for the payment of fees and/or rebates in respect of products distributed by any Subsidiary of
Parent,

 

(g)               
Payments in respect of the Zohydro Intercompany Note owed by a Loan Party, including any interest or premium accrued thereon
may be made in respect of such Indebtedness,

 

(h)              
Payments owed by a Loan Party expressly permitted by Section ‎6.6(a), and

 

(i)                
Borrower and its Subsidiaries may make Restricted Payments to any Treximet Indenture Note Party.

 

6.8              
Accounting Methods. Borrower will not, and will not permit any of its Subsidiaries to modify or change its
fiscal year or its method of accounting (other than as may be required to conform to GAAP).

 

6.9              
Investments. Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, make
or acquire any Investment or incur any liabilities (including contingent obligations) for or in connection with any Investment
except for Permitted Investments.

 

6.10           
Transactions with Affiliates. Borrower will not, and will not permit any of its Subsidiaries to, directly
or indirectly, enter into, permit to exist or renew or extend any transaction or arrangement (including, without limitation, the
purchase, sale, lease, conveyance, transfer, assignment, distribution, abandonment or exchange of property or assets, or the rendering
of any service) with any Affiliate of Borrower or any of its Subsidiaries except for:

 

(a)               
transactions (other than the payment of management, consulting, monitoring, or advisory fees) between Borrower or its Subsidiaries,
on the one hand, and any Affiliate of Borrower or its Subsidiaries, on the other hand, so long as such transactions (A) are fully
disclosed to Agent prior to the consummation thereof, if they involve one or more payments by Borrower or its Subsidiaries in
excess of $2,500,000 for any single transaction or series of related transactions and (B) are no less favorable, taken as
a whole, to Borrower or its Subsidiaries, as applicable, than would be obtained in an arm’s length transaction with a non-Affiliate;
provided that any transaction or series of transactions pursuant to this clause (a) with an aggregate value in excess of $2,500,000
must first be approved by a majority of the Board of Directors of Parent who are disinterested in the subject matter of the transaction
pursuant to a board resolution delivered to the Agent and the Initial Lenders at least two business days prior to the consummation
of such transaction; provided, further, that, if the aggregate value of any transaction or series of transactions pursuant to
this clause (a) is in excess of $15,000,000, Parent will deliver to the Agent a favorable written opinion from a nationally recognized
investment banking, appraisal or accounting firm (x) as to the fairness of the transaction to the relevant Loan Party or Subsidiary,
as applicable, from a financial point of view or (y) stating that the terms of such transaction are, taken as a whole, no less
favorable to the relevant Loan Party or Subsidiary, as applicable, than those that would have been obtained in a comparable arm’s
length transaction by such Loan Party or Subsidiary, as applicable, with a non-Affiliate,

 

(b)              
so long as it has been approved by Borrower’s or its applicable Subsidiary’s Board of Directors (or comparable
governing body) in accordance with applicable law, any indemnity provided for the benefit of directors (or comparable managers)
of Borrower or its applicable Subsidiary,

 

(c)               
so long as it has been approved by Borrower or its applicable Subsidiary’s Board of Directors (or comparable governing
body) in accordance with applicable law, the payment of reasonable 

 

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compensation,
severance, or employee benefit arrangements to employees, officers, and outside directors of Borrower and its Subsidiaries in
the Ordinary Course of Business and consistent with industry practice,

 

(d)              
(i) transactions by and between or among the Loan Parties, (ii) transactions solely by and between or among Subsidiaries
that are not Loan Parties and (iii) transfers of assets or property to, or payment of Indebtedness owed to, Treximet Indenture
Note Parties, in each case subject to, and to the extent permitted by, the terms of this Agreement and the other Loan Documents,

 

(e)               
transactions expressly permitted by Section 6.7 or 6.9, and

 

(f)               
the Transactions or transactions in relation to the Loan Documents, the 2017 Exchange Agreement,, the ABL Facility Documents
or the Registration Rights Agreement (as defined in the 2017 Indenture).

 

6.11           
Use of Proceeds. Borrower will not, and will not permit any of its Subsidiaries to, use the proceeds of any
loan made hereunder for any purpose other than (a) on the Closing Date, (i) to repay, in part, the outstanding principal, accrued
interest, and accrued fees and expenses owing under or in connection with the Zohydro Intercompany Note, and (ii) to pay the fees,
costs, and expenses incurred in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby
and thereby, and (b) thereafter, consistent with Section 5.17 and other terms and conditions hereof, for their lawful and
permitted purposes (including that no part of the proceeds of the loans made to Borrower will be used to purchase or carry any
such Margin Stock or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any purpose
that violates the provisions of Regulation T, U or X of the Board of Governors).

 

6.12           
Limitation on Issuance of Equity Interests. Except for the issuance or sale of Qualified Equity Interests
by Borrower or a disposition permitted by Section ‎6.4, Borrower will not, and will not permit any of its Subsidiaries
to issue or sell or enter into any agreement or arrangement for the issuance or sale of any of its Equity Interests.

 

6.13           
Negative Pledge. Borrower will not, and will not permit any of its Subsidiaries to, create, grant or otherwise
cause or suffer to exist or become effective a security interest in Zohydro Assets in favor of any Person other than the Agent,
and each Loan Party will not, and each Loan Party will not permit any of its Subsidiaries to, create or otherwise cause or suffer
to exist or become effective any agreement restricting or placing limitations on its ability to grant a security interest to the
Agent in their respective right, title and interest in, to and under Zohydro Assets.

 

6.14           
Borrower’s Activities. Notwithstanding anything to the contrary herein, the Borrower shall not become
liable for any material obligations or hold any material assets (other than the Equity Interests of its Subsidiaries) other than
as necessary to (i) operate in the Ordinary Course of Business and to pursue Permitted Acquisitions and other new business opportunities
permitted by this Agreement or (ii) perform its obligations under (A) the 2017 Note Purchase Documents, (B) the 2015 Note Purchase
Documents, (C) the Loan Documents, (D) the ABL Loan Documents, (E) the Zohydro Intercompany Note and (F) the Zohydro Contracts.

 

6.15           
Burdensome Agreements. Except as provided in the following sentence, each Loan Party will not, and each Loan
Party will not permit any of its Subsidiaries to, create or otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction of any kind in any case on the ability of any Subsidiary of any Loan Party to: (A) pay or make Restricted
Payments to any Loan Party; (B) pay any Indebtedness owed to any Loan Party; (C) make loans or advances to any Loan Party; or
(D) transfer any of its property or assets to any Loan Party. Notwithstanding the immediately prior sentence, each Loan Party
and each of the Loan Parties’ Subsidiaries may create, cause or suffer to exist or become effective any such consensual
encumbrance or restriction provided by (a) the Loan Documents, (b) the Treximet Indenture and the 2015 Indenture (each as in effect
on the Closing Date), (c) the 2017 Indenture and any agreement entered into to refinance all or any part of the

 

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2017
Notes (but only to the extent the consensual encumbrances or restrictions contained therein that limit the actions described in
(A) – (D) above are no more restrictive with respect to such actions than the 2017 Indenture if less than all of the 2017
Notes will be refinanced), (d) the ABL Loan Documents, (e) any instrument governing Indebtedness or Equity Interests of a Person
acquired by any Loan Party or any of the Loan Parties’ Subsidiaries as in effect at the time of (and not in anticipation
of) such acquisition, which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person,
other than the Person and/or any of its Subsidiaries, or the property or assets of the Person and/or any of its Subsidiaries,
so acquired, (f) any instrument governing Indebtedness incurred in connection with a Permitted Acquisition, (g)(x) customary non-assignment
and similar provisions in contracts, leases and licenses entered into in the Ordinary Course of Business, (y) net worth provisions
in leases and other agreements and (z) provisions restricting cash or other deposits in agreements entered into by each Loan Party
or any Subsidiary of such Loan Party in the Ordinary Course of Business, (h) mortgage financings, purchase money obligations and
Capital Lease Obligations that impose restrictions on the property owned or leased, (i) any agreement for the sale or other disposition
permitted by this Agreement of the Equity Interests or all or substantially all of the property and assets of a Subsidiary of
any Loan Party that restricts distributions by that Subsidiary pending its sale or other disposition, (j) Permitted Liens, (k)
restrictions on cash or other deposits or net worth imposed by customers or suppliers or required by insurance, surety or bonding
companies, in each case, under contracts entered into in the Ordinary Course of Business, (l) customary encumbrances or restrictions
contained in agreements in connection with Hedge Agreements or Bank Products permitted under this Agreement, (m) customary provisions
contained in leases or licenses of Intellectual Property and other agreements, in each case, entered into in the Ordinary Course
of Business, or (n) any consensual encumbrance or restriction of any kind existing under any agreement that extends, renews, refinances,
replaces, amends, modifies, restates or supplements the agreements containing the encumbrances or restrictions in the foregoing
clauses (a) through (m), or in this clause (n) (provided that the terms and conditions of any such consensual encumbrance or restriction
of any kind that limit the actions described in (A) – (D) above are no more restrictive than those under or pursuant to
the agreement so extended, renewed, refinanced, replaced, amended, modified, restated or supplemented).

 

6.16           
Additional Guarantors. Borrower shall not permit any of its Subsidiaries to Guarantee or otherwise be or
become liable for any obligations under the Treximet Indenture, unless such Subsidiary also Guarantees the Obligations on a pari
passu or senior basis.

 

7.                  
[RESERVED].

 

8.                  
EVENTS OF DEFAULT.

 

Any
one or more of the following events shall constitute an event of default (each, an “Event of Default”) under
this Agreement:

 

8.1              
Payments. If Borrower fails to pay when due and payable, or when declared due and payable, (a) all or any
portion of the Obligations consisting of interest, fees, or charges due the Lender Group, reimbursement of Lender Group Expenses,
or other amounts (other than any portion thereof constituting principal) constituting Obligations (including any portion thereof
that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part
as a claim in any such Insolvency Proceeding), and such failure continues for a period of three (3) Business Days or (b) all or
any portion of the principal of the Loans;

 

8.2              
Covenants. If any Loan Party or any of its Subsidiaries:

 

(a)               
fails to perform or observe any covenant or other agreement contained in any of (i) Sections 3.6, 5.1, ‎5.3
(solely with respect to Borrower’s existence), ‎5.6, ‎5.7 (solely if Borrower refuses to allow
Agent or its representatives or agents to visit Borrower’s properties, inspect its assets or books or records, examine and
make copies of its books and records, or discuss Borrower’s affairs, finances, and accounts with 

 

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officers
and employees of Borrower), ‎5.11, ‎5.13, 5.17 or 5.18 of this Agreement, (ii) Section ‎6
of this Agreement, (iii) [reserved], or (iv) Section 8 of the Security Agreement;

 

(b)              
fails to perform or observe any covenant or other agreement contained in any of Sections ‎5.3 (other than with
respect to Borrower’s existence), ‎5.4, ‎5.5, ‎5.8, and ‎5.12 of this Agreement
and such failure continues for a period of 10 days after the earlier of (i) the date on which such failure shall first become
known to any officer of Borrower or (ii) the date on which written notice thereof is given to Borrower by Agent; or

 

(c)               
fails to perform or observe any covenant or other agreement contained in this Agreement, or in any of the other Loan Documents,
in each case, other than any such covenant or agreement that is the subject of another provision of this Section 8 (in
which event such other provision of this Section 8 shall govern), and such failure continues for a period of 30 days after
the earlier of (i) the date on which such failure shall first become known to any officer of Borrower or (ii) the date on which
written notice thereof is given to Borrower by Agent;

 

8.3              
Judgments. If one or more final judgments for the payment of money involving an aggregate amount of $2,000,000
or more (except to the extent fully covered (other than to the extent of customary deductibles) by insurance pursuant to which
the insurer has not denied coverage) is entered or filed against a Loan Party or any of its Subsidiaries, or with respect to any
of their respective assets, and either (a) there is a period of 30 consecutive days at any time after the entry of any such judgment
during which (1) the same is not discharged, satisfied, vacated, or bonded pending appeal, or (2) a stay of enforcement thereof
is not in effect, or (b) enforcement proceedings are commenced upon such judgment;

 

8.4              
Voluntary Bankruptcy, etc. If an Insolvency Proceeding is commenced by a Loan Party or any of its Subsidiaries,
or any Loan Party or any of its Subsidiaries shall make a general assignment for the benefit of creditors, or shall fail generally
to pay its debts as they become due;

 

8.5              
Involuntary Bankruptcy, etc. If an Insolvency Proceeding is commenced against a Loan Party or any of its
Subsidiaries and any of the following events occur: (a) such Loan Party or such Subsidiary consents to the institution of such
Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted, (c) such Insolvency
Proceeding remains undismissed and unstayed for a period of 30 consecutive calendar days, (d) an interim trustee is appointed
to take possession of all or any substantial portion of the properties or assets of, or to operate all or any substantial portion
of the business of, such Loan Party or its Subsidiary, or (e) an order for relief shall have been issued or entered therein;

 

8.6              
Default Under Other Agreements. If there is (a) a default in one or more agreements to which a Loan Party
or any of its Subsidiaries is a party with one or more third Persons relative to a Loan Party’s or any of its Subsidiaries’
Indebtedness involving an aggregate amount of $3,000,000 or more, and such default (i) occurs at the final maturity of the obligations
thereunder, or (ii) results in a right by such third Person, irrespective of whether exercised, to accelerate the maturity of
such Loan Party’s or its Subsidiary’s obligations thereunder (after giving effect to any notice or lapse of time if
required thereunder), (b) an involuntary early termination of one or more Hedge Agreements to which a Loan Party or any of its
Subsidiaries is a party involving an aggregate amount of $3,000,000 or more or (c) the occurrence of an “Event of Default”
under and as defined in any Treximet Note Purchase Document, any 2015 Note Purchase Document, any 2017 Note Purchase Document,
any 2017 Term Facility Document or any other Material Debt Document;

 

8.7              
Representations, etc. If any warranty, representation, certificate, statement, or Record made herein or in
any other Loan Document or delivered in writing to Agent or any Lender in connection with this Agreement or any other Loan Document
proves to be untrue in any material respect (except that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof) as of the date of issuance or making
or deemed making thereof;

 

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8.8              
Guaranty. If the obligation of any Guarantor under the applicable guaranty agreement is limited or terminated
by operation of law or by such Guarantor (other than in accordance with the terms of this Agreement);

 

8.9              
Security Documents. If the Security Agreement or any other Loan Document that purports to create a Lien,
shall, for any reason, fail or cease to create a valid and perfected and, except to the extent of Permitted Collateral Liens,
first priority Lien on the Collateral covered thereby, except (a) as a result of a disposition of the applicable Collateral in
a transaction permitted under this Agreement or (b) as the result of the failure of Agent to maintain possession of any Collateral
actually delivered to it;

 

8.10           
Loan Documents. The validity or enforceability of any Loan Document shall at any time for any reason (other
than solely as the result of an action or failure to act on the part of Agent) be declared to be null and void, or a proceeding
shall be commenced by a Loan Party or its Subsidiaries, or by any Governmental Authority having jurisdiction over a Loan Party
or its Subsidiaries, seeking to establish the invalidity or unenforceability thereof, or a Loan Party or its Subsidiaries shall
deny that such Loan Party or its Subsidiaries has any liability or obligation purported to be created under any Loan Document,
or any Loan Party or any of its Subsidiaries shall challenge the enforceability of any material provision of any Loan Document
in writing or shall assert in writing that any material provision of any such Loan Document has ceased to be or otherwise is not
valid, binding and enforceable in accordance with its or their terms (other than by reason of the payment in full of the Obligations
or any other termination of any Loan Document in accordance with the terms thereof); or the Liens on any material portion of the
Collateral purported to be created under any of the Loan Documents shall cease to be, or shall be asserted in writing by any Loan
Party or any of its Subsidiaries not to be, a valid and perfected Lien in such material portion of the Collateral, with the priority
required pursuant to this Agreement; or

 

8.11           
Change in Control. A Change in Control shall occur.

 

9.                  
RIGHTS AND REMEDIES.

 

9.1              
Rights and Remedies. Upon the occurrence and during the continuation of an Event of Default, Agent may, with
the consent of the Required Lenders and, at the instruction of the Required Lenders, shall (in each case under clauses (a) or
(b) by written notice to Borrower), in addition to any other rights or remedies provided for hereunder or under any other Loan
Document or by applicable law, do any one or more of the following:

 

(a)               
declare the principal of, and any and all accrued and unpaid interest and fees in respect of, the Loans and all other Obligations,
whether evidenced by this Agreement or by any of the other Loan Documents to be immediately due and payable, whereupon the same
shall become and be immediately due and payable and Borrower shall be obligated to repay all of such Obligations in full, without
presentment, demand, protest, or further notice or other requirements of any kind, all of which are hereby expressly waived by
Borrower;

 

(b)              
declare the Commitments terminated, whereupon the Commitments shall immediately be terminated together with any obligation
of any Lender to make Loans; and

 

(c)               
exercise all other rights and remedies available to Agent or the Lenders under the Loan Documents, under applicable law,
or in equity.

 

The
foregoing to the contrary notwithstanding, upon the occurrence of any Event of Default described in Section ‎8.4 or Section
‎8.5, in addition to the remedies set forth above, without any notice to Borrower or any other Person or any act by the Lender
Group, the Commitments shall automatically terminate and the Obligations, inclusive of the principal of, and any and all accrued
and unpaid interest and fees in respect of, the Loans and all other Obligations, whether evidenced by this Agreement or by any
of the other Loan Documents, shall automatically become and be immediately due and payable and Borrower shall automatically be
obligated to

 

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repay all
of such Obligations in full, without presentment, demand, protest, or notice or other requirements of any kind, all of which are
expressly waived by Borrower.

 

9.2              
Remedies Cumulative. The rights and remedies of the Lender Group under this Agreement, the other Loan Documents,
and all other agreements shall be cumulative. The Lender Group shall have all other rights and remedies not inconsistent herewith
as provided under the Code, by law, or in equity. No exercise by the Lender Group of one right or remedy shall be deemed an election,
and no waiver by the Lender Group of any Event of Default shall be deemed a continuing waiver. No delay by the Lender Group shall
constitute a waiver, election, or acquiescence by it.

 

10.              
WAIVERS; INDEMNIFICATION.

 

10.1           
Demand; Protest; etc. Borrower waives demand, protest, notice of protest, notice of default or dishonor,
notice of payment and nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents,
instruments, chattel paper, and guarantees at any time held by the Lender Group on which Borrower may in any way be liable.

 

10.2           
The Lender Group’s Liability for Collateral. Borrower hereby agrees that: (a) so long as Agent
complies with its obligations, if any, under the Code, the Lender Group shall not in any way or manner be liable or responsible
for: (i) the safekeeping of the Collateral, (ii) any loss or damage thereto occurring or arising in any manner or fashion from
any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding
agency, or other Person, and (b) all risk of loss, damage, or destruction of the Collateral shall be borne by Borrower, except
to the extent such loss, damage or destruction is determined by a final non-appealable judgment of a court of competent jurisdiction
to have directly resulted from the Agent’s and Lender’s gross negligence or willful misconduct.

 

10.3           
Indemnification. Borrower shall pay, indemnify, defend, and hold the Agent-Related Persons, the Lender-Related
Persons, and each Participant (each, an “Indemnified Person”) harmless (to the fullest extent permitted by
law) from and against any and all claims, demands, suits, actions, investigations, proceedings, liabilities, fines, costs, penalties,
and damages, and all reasonable fees and disbursements of attorneys, experts, or consultants and all other costs and expenses
actually incurred in connection therewith or in connection with the enforcement of this indemnification (as and when they are
incurred and irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of them
(a) in connection with or as a result of or related to the execution and delivery (provided that Borrower shall not be liable
for costs and expenses (including attorneys’ fees) of any Lender (other than Agent in its capacity as such) incurred in
advising, structuring, drafting, reviewing or administering the Loan Documents), enforcement, performance, or administration (including
any restructuring or workout with respect hereto) of this Agreement, any of the other Loan Documents, or the transactions contemplated
hereby or thereby or the monitoring of Borrower’s and its Subsidiaries’ compliance with the terms of the Loan Documents
(provided, that the indemnification in this clause (a) shall not extend to (i) disputes solely between or among the Lenders
that do not involve any acts or omissions of any Loan Party, or (ii) disputes solely between or among the Lenders
and their respective Affiliates that do not involve any acts or omissions of any Loan Party; it being understood and agreed
that the indemnification in this clause (a) shall extend to Agent (but not the Lenders) relative to disputes between or among
Agent on the one hand, and one or more Lenders, or one or more of their Affiliates, on the other hand, or (iii) any Taxes or any
costs attributable to Taxes, which shall be governed by Section ‎16), (b) with respect to any actual or
prospective investigation, litigation, or proceeding related to this Agreement, any other Loan Document or the making of
any Loans hereunder, or the use of the proceeds of the Loans provided hereunder (irrespective of whether any Indemnified
Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto, and (c) in connection
with or arising out of any presence or release of Hazardous Materials at, on, under, to or from any assets or properties owned,
leased or operated by Borrower or any of its Subsidiaries or any

 

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Environmental
Actions, Environmental Liabilities or Remedial Actions related in any way to any such assets or properties of Borrower or any
of its Subsidiaries (each and all of the foregoing, the “Indemnified Liabilities”). The foregoing to the contrary
notwithstanding, Borrower shall not have any obligation to any Indemnified Person under this Section ‎10.3 with respect
to any Indemnified Liability that a court of competent jurisdiction finally determines to have resulted from (i) the gross negligence
or willful misconduct of such Indemnified Person or its officers, directors, employees, attorneys, or agents or (ii) a willful
and material breach by an Indemnified party of its obligations under this Agreement. This provision shall survive the termination
of this Agreement and the repayment in full of the Obligations. If any Indemnified Person makes any payment to any other Indemnified
Person with respect to an Indemnified Liability as to which Borrower was required to indemnify the Indemnified Person receiving
such payment, the Indemnified Person making such payment is entitled to be indemnified and reimbursed by Borrower with respect
thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES
WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER
PERSON.

 

11.              
NOTICES.

 

Unless
otherwise provided in this Agreement, all notices or demands relating to this Agreement or any other Loan Document shall be in
writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage
prepaid) shall be personally delivered or sent by registered or certified mail (postage prepaid, return receipt requested), overnight
courier, electronic mail (at such email addresses as a party may designate in accordance herewith), or telefacsimile. In the case
of notices or demands to Borrower or Agent, as the case may be, they shall be sent to the respective address set forth below:

 

	If to Borrower:	Pernix Ireland Pain Limited
	 	3 Burlington
        Road

        

        Dublin
        4 Ireland

        

	 	 
	 	c/o Pernix Therapeutics Holdings, Inc.
	 	 
	 	10
        North Park Place, Suite 201

        

        Morristown,
        NJ 07960

        

	 	Attn:
        General Counsel

        

	 	 
	 	Fax No.: (862) 260-8752
	 	 
	with copies to:	Davis Polk & Wardwell, LLP
	 	450 Lexington Avenue
	 	New York, New York 10017
	 	Attn: Jinsoo Kim
	 	Fax Number: (212) 450-5800
	 	 
	If
        to Agent:

        
	Cantor
Fitzgerald Securities

	 	Attn:
        Nils Horning (Legal)

        

        110
        E. 59th St.

        

        New
        York, NY 10022

        

        Email:
        NHorning@cantor.com

        

        Telephone
        Number: 212-829-4889

        

        Fax
        Number: 646-219-1180

        

    -39-

     

    

	 	Attn:
        Jon Stapleton (Credit)

        

        110
        E. 59th St.

        

        New
        York, NY 10022

        

        Email:
        JStapleton@cantor.com

        

	 	 
	 	Bobbie
        Young (Agency)

        

        900
        West Trade Street, Suite 725

        

        Charlotte,
        NC 28202

        

        Email:
        BankLoansAgency@cantor.com

        

        Fax
        Number: 646-390-1764

        

	 	 
	with
        copies to:

        
	Skadden,
Arps, Slate, Meagher & Flom LLP

	 	Four Times Square
	 	New York, New York 10036
	 	Attn: Sarah M. Ward
	 	Fax Number: (917) 777-2126
	 	 

Any
party hereto may change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner
given to the other party. All notices or demands sent in accordance with this Section ‎11, shall be deemed received
on the earlier of the date of actual receipt or three (3) Business Days after the deposit thereof in the mail; provided,
that (a) notices sent by overnight courier service shall be deemed to have been given when received, (b) notices by facsimile
shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall
be deemed to have been given at the opening of business on the next Business Day for the recipient) and (c) notices by electronic
mail shall be deemed received upon the sender’s receipt of an acknowledgment from the intended recipient (such as by the
“return receipt requested” function, as available, return email or other written acknowledgment).

 

12.              
CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE PROVISION.

 

(a)               
THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN
DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, THE RIGHTS
OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO, AND
ANY CLAIMS, CONTROVERSIES OR DISPUTES ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER,
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

(b)              
THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY
OF NEW YORK, STATE OF NEW YORK; PROVIDED, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY
BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL
OR OTHER PROPERTY MAY BE FOUND. BORROWER AND EACH MEMBER OF THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW,
ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING
IS BROUGHT IN ACCORDANCE WITH THIS SECTION ‎12(b).

 

    -40-

     

    

(c)               
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND EACH MEMBER OF THE LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE
RIGHTS, IF ANY, TO A JURY TRIAL OF ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION DIRECTLY OR INDIRECTLY BASED UPON OR ARISING
OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS (EACH A “CLAIM”). BORROWER AND EACH MEMBER OF THE LENDER
GROUP REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

(d)              
BORROWER AND EACH MEMBER OF THE LENDER GROUP HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK AND THE STATE OF NEW YORK, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO ANY LOAN DOCUMENTS, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT. EACH OF THE PARTIES HERETO AGREES
THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT
ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT AGENT MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST
ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(e)               
NO CLAIM MAY BE MADE BY ANY LOAN PARTY AGAINST THE AGENT, ANY OTHER LENDER, OR ANY AFFILIATE, DIRECTOR, OFFICER, EMPLOYEE,
COUNSEL, REPRESENTATIVE, AGENT, OR ATTORNEY-IN-FACT OF ANY OF THEM FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY
DAMAGES OR LOSSES IN RESPECT OF ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY ARISING OUT OF OR RELATED TO
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY ACT, OMISSION, OR EVENT OCCURRING IN CONNECTION
THEREWITH, AND EACH LOAN PARTY HEREBY WAIVES, RELEASES, AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT
ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

 

(f)               
CONSENT TO SERVICE OF PROCESS.  THE BORROWER HEREBY IRREVOCABLY DESIGNATES, APPOINTS, AUTHORIZES AND EMPOWERS PARENT
AS ITS AGENT FOR SERVICE OF PROCESS AT ITS OFFICES LOCATED AT 10 NORTH PARK PLACE, SUITE 201 MORRISTOWN, NJ 07960 (OR SUCH OTHER
OFFICE OF PARENT LOCATED IN THE UNITED STATES AND NOTIFIED TO AGENT AND THE LENDERS IN WRITING FROM TIME TO TIME FOR PURPOSES
OF THIS SECTION 12(F) AT LEAST TEN (10) BUSINESS DAYS PRIOR TO THE EFFECTIVENESS OF SUCH CHANGE IN OFFICES FOR PURPOSES OF THIS
SECTION 12(F)) TO ACCEPT AND ACKNOWLEDGE FOR AND ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS, NOTICES OR OTHER DOCUMENTS THAT
MAY BE SERVED IN ANY SUIT, ACTION OR PROCEEDING RELATING HERETO IN ANY NEW YORK COURT.

 

13.              
ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.

 

13.1           
Assignments and Participations.

 

    -41-

     

    

(a)               
(i) Subject to the conditions set forth in clause (a)(ii) below, any Lender may assign and delegate all or any portion
of its rights and duties under the Loan Documents (including the Obligations owed to it and its Commitments) to one or more assignees
(each, an “Assignee”), with the prior written consent (such consent not be unreasonably withheld or delayed)
of:

 

(A)       Borrower;
provided, that no consent of Borrower shall be required (1) if an Event of Default has occurred and is continuing, or (2)
in connection with an assignment to a Person that is a Lender or an Affiliate (other than natural persons) of a Lender; provided
further, that Borrower shall be deemed to have consented to a proposed assignment unless they object thereto by written notice
to Agent within ten (10) Business Days after having received notice thereof; and

 

(B)       Agent.

 

(ii)       Assignments shall be subject to the following additional conditions:

 

A.                
no assignment may be made to a natural person,

 

B.                
no assignment may be made to a Loan Party or an Affiliate of a Loan Party,

 

C.                
the amount of the Commitments and the other rights and obligations of the assigning Lender hereunder and under the other
Loan Documents subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment
is delivered to Agent) shall be in a minimum amount (unless waived by Agent) of $1,000,000 (except such minimum amount shall not
apply to (I) an assignment or delegation by any Lender to any other Lender, an Affiliate of any Lender, or a Related Fund of such
Lender or (II) a group of new Lenders, each of which is an Affiliate of each other or a Related Fund of such new Lender to the
extent that the aggregate amount to be assigned to all such new Lenders is at least $1,000,000),

 

D.                
each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights
and obligations under this Agreement,

 

E.                 
the parties to each assignment shall execute and deliver to Agent an Assignment and Acceptance; provided, that Borrower
and Agent may continue to deal solely and directly with the assigning Lender in connection with the interest so assigned to an
Assignee until written notice of such assignment, together with payment instructions, addresses, and related information with
respect to the Assignee, have been given to Borrower and Agent by such Lender and the Assignee,

 

F.                 
unless waived by Agent, the assigning Lender or Assignee has paid to Agent, for Agent’s separate account, a processing
fee in the amount of $3,500, and

 

G.                
the assignee, if it is not a Lender, shall deliver to Agent an Administrative Questionnaire in a form approved by Agent
(the “Administrative Questionnaire”).

 

(b)              
From and after the date that Agent receives the executed Assignment and Acceptance and, if applicable, payment of the required
processing fee, (i) the Assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have
been assigned to it pursuant to such Assignment and Acceptance, shall be a “Lender” and shall have the rights and
obligations of a Lender under the Loan Documents 

 

    -42-

     

    

(and
for the avoidance of doubt, shall have no greater rights under Section ‎16 than the assigning Lender), and (ii) the
assigning Lender shall, to the extent that rights and obligations hereunder and under the other Loan Documents have been assigned
by it pursuant to such Assignment and Acceptance, relinquish its rights (except with respect to Section ‎10.3) and
be released from any future obligations under this Agreement (and in the case of an Assignment and Acceptance covering all or
the remaining portion of an assigning Lender’s rights and obligations under this Agreement and the other Loan Documents,
such Lender shall cease to be a party hereto and thereto); provided, that nothing contained herein shall release any assigning
Lender from obligations that survive the termination of this Agreement, including such assigning Lender’s obligations under
Section ‎15, Section ‎16 and Section ‎17.9(a).

 

(c)               
[Reserved].

 

(d)              
Immediately upon Agent’s receipt of the required processing fee, if applicable, and delivery of notice to the assigning
Lender pursuant to Section ‎13.1(b), this Agreement shall be deemed to be amended to the extent, but only to the extent,
necessary to reflect the addition of the Assignee and the resulting adjustment of the Commitments arising therefrom. The Commitment
allocated to each Assignee shall reduce such Commitments of the assigning Lender pro tanto.

 

(e)               
Any Lender may at any time sell to one or more commercial banks, financial institutions, or other Persons (a “Participant”)
participating interests in all or any portion of its Obligations, its Commitment, and the other rights and interests of that Lender
(the “Originating Lender”) hereunder and under the other Loan Documents; provided, that (i) the Originating
Lender shall remain a “Lender” for all purposes of this Agreement and the other Loan Documents and the Participant
receiving the participating interest in the Obligations, the Commitments, and the other rights and interests of the Originating
Lender hereunder shall not constitute a “Lender” hereunder or under the other Loan Documents and the Originating Lender’s
obligations under this Agreement shall remain unchanged, (ii) the Originating Lender shall remain solely responsible for the performance
of such obligations, (iii) Borrower, Agent, and the Lenders shall continue to deal solely and directly with the Originating Lender
in connection with the Originating Lender’s rights and obligations under this Agreement and the other Loan Documents, (iv)
no Lender shall transfer or grant any participating interest under which the Participant has the right to approve any amendment
to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to the extent such amendment to,
or consent or waiver with respect to this Agreement or of any other Loan Document would (A) extend the final maturity date
of the Obligations hereunder in which such Participant is participating, (B) reduce the interest rate applicable to the Obligations
hereunder in which such Participant is participating, (C) release all or substantially all of the Collateral or guaranties
(except to the extent expressly provided herein or in any of the Loan Documents) supporting the Obligations hereunder in which
such Participant is participating, (D) postpone the payment of, or reduce the amount of, the interest or fees payable to such
Participant through such Lender (other than a waiver of default interest), or (E) decreases the amount or postpones the due dates
of scheduled principal repayments or prepayments or premiums payable to such Participant through such Lender, (v) no participation
shall be sold to a natural person, (vi) no participation shall be sold to a Loan Party or an Affiliate of a Loan Party, and (vii)
all amounts payable by Borrower hereunder shall be determined as if such Lender had not sold such participation, except that,
if amounts outstanding under this Agreement are due and unpaid, or shall have been declared or shall have become due and payable
upon the occurrence of an Event of Default, each Participant shall be deemed to have the right of set off in respect of its participating
interest in amounts owing under this Agreement to the same extent as if the amount of its participating interest were owing directly
to it as a Lender under this Agreement. The rights of any Participant only shall be derivative through the Originating Lender
with whom such Participant participates and no Participant shall have any rights under this Agreement or the other Loan Documents
or any direct rights as to the other Lenders, Agent, Borrower, the Collateral, or otherwise in respect of the Obligations. No
Participant shall have the right to participate directly in the making of decisions by the Lenders among themselves. Each Lender
that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it
enters the name and address of each Participant and the principal amounts (and 

 

    -43-

     

    

stated
interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant
Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register
(including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans,
letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is
necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c)
of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error,
and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation
for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Agent (in its capacity
as administrative agent) shall have no responsibility for maintaining a Participant Register.

 

(f)               
In connection with any such assignment or participation or proposed assignment or participation or any grant of a security
interest in, or pledge of, its rights under and interest in this Agreement, a Lender may, subject to the provisions of Section
‎17.9, disclose all documents and information which it now or hereafter may have relating to Parent and its Subsidiaries
and their respective businesses.

 

(g)               
Any other provision in this Agreement notwithstanding, any Lender may at any time create a security interest in, or pledge,
all or any portion of its rights under and interest in this Agreement in favor of any Federal Reserve Bank in accordance with
Regulation A of the Federal Reserve Bank or U.S. Treasury Regulation 31 CFR §203.24, and such Federal Reserve Bank may enforce
such pledge or security interest in any manner permitted under applicable law.

 

13.2           
Successors. This Agreement shall bind and inure to the benefit of the respective successors and assigns of
each of the parties; provided, that Borrower may not assign this Agreement or any rights or duties hereunder without the
Lenders’ prior written consent and any prohibited assignment shall be absolutely void ab initio. No consent to assignment
by the Lenders shall release Borrower from its Obligations. A Lender may assign this Agreement and the other Loan Documents and
its rights and duties hereunder and thereunder pursuant to Section 13.1 and, except as expressly required pursuant to Section
‎13.1, no consent or approval by Borrower is required in connection with any such assignment.

 

14.              
AMENDMENTS; WAIVERS.

 

14.1           
Amendments and Waivers.

 

(a)               
No amendment, waiver or other modification of any provision of this Agreement or any other Loan Document, and no consent
with respect to any departure by Borrower therefrom, shall be effective unless the same shall be in writing and signed by the
Required Lenders (or by Agent at the written request of the Required Lenders) and the Loan Parties that are party thereto and
then any such waiver or consent shall be effective, but only in the specific instance and for the specific purpose for which given;
provided, that no such waiver, amendment, or consent shall, unless in writing and signed by all of the Lenders directly
affected thereby and all of the Loan Parties that are party thereto, do any of the following:

 

(i)                
increase the amount of or extend the expiration date of any Commitment of any Lender or amend, modify, or eliminate Section
‎2.4(c)(i),

 

(ii)              
postpone or delay any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees,
or other amounts due hereunder or under any other Loan Document,

 

(iii)            
reduce the principal of, or the rate of interest on, any loan or other extension of credit hereunder, or reduce any fees
or other amounts payable hereunder or under any other Loan Document (except in connection with the waiver of applicability of
Section ‎2.6(c) (which waiver shall be effective with the written consent of the Required Lenders)),

 

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(iv)            
amend, modify, or eliminate this Section or any provision of this Agreement providing for consent or other action by all
Lenders,

 

(v)              
amend, modify or eliminate Section 3.4,

 

(vi)            
amend any provisions in Section 15.11 that relate to release of Agent’s Liens,

 

(vii)          
other than as permitted by Section ‎15.11, release Agent’s Lien in and to any of the Collateral,

 

(viii)        
amend, modify, or eliminate the definitions of “Required Lenders” or “Pro Rata Share”,

 

(ix)            
contractually subordinate any of Agent’s Liens (unless otherwise expressly permitted under this Agreement),

 

(x)              
other than in connection with a merger, liquidation, dissolution or sale of such Person expressly permitted by the terms
hereof or the other Loan Documents, release Borrower or any Guarantor from any obligation for the payment of money or consent
to the assignment or transfer by Borrower or any Guarantor of any of its rights or duties under this Agreement or the other Loan
Documents, or

 

(xi)            
amend, modify, or eliminate any of the provisions of Section ‎2.4(b)(i), ‎(ii) or ‎(iii),

 

(b)              
No amendment, waiver, modification, or consent shall amend, modify, waive, or eliminate, any provision of Section ‎15
pertaining to Agent, or any other rights or duties of Agent under this Agreement or the other Loan Documents, without the
written consent of Agent, Borrower, and the Required Lenders;

 

(c)               
[reserved];

 

(d)              
[reserved]; and

 

(e)               
[reserved].

 

Anything
in this Section ‎14.1 to the contrary notwithstanding, any amendment, waiver, modification, elimination, or consent
of or with respect to any provision of this Agreement or any other Loan Document may be entered into without the consent of, or
over the objection of, any Defaulting Lender other than any of the matters governed by Section ‎14.1(a)(i) through
‎(iii) that affect such Lender.

 

14.2           
Replacement of Certain Lenders.

 

(a)               
If (i) any action to be taken by the Lender Group or Agent hereunder requires the consent, authorization, or agreement
of all Lenders or all Lenders affected thereby and if such action has received the consent, authorization, or agreement of the
Required Lenders but not of all Lenders or all Lenders affected thereby, or (ii) any Lender makes a claim for compensation under
Section ‎16, then Borrower or Agent, upon at least five (5) Business Days prior irrevocable notice, may permanently
replace any Lender that failed to give its consent, authorization, or agreement (a “Non-Consenting Lender”)
or any Lender that made a claim for compensation (a “Tax Lender”) with one or more Replacement Lenders, and
the Non-Consenting Lender or Tax Lender, as applicable, shall have no right to refuse to be replaced hereunder. Such notice to
replace the Non-Consenting Lender or Tax Lender, as applicable, shall specify an effective date for such replacement, which date
shall not be later than fifteen (15) Business Days after the date such notice is given.

 

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(b)              
Prior to the effective date of such replacement, the Non-Consenting Lender or Tax Lender, as applicable, and each Replacement
Lender shall execute and deliver an Assignment and Acceptance, subject only to the Non-Consenting Lender or Tax Lender, as applicable,
being repaid in full its share of the outstanding Obligations (without any premium or penalty of any kind whatsoever, but including
all interest, fees and other amounts that may be due and payable in respect thereof. If the Non-Consenting Lender or Tax Lender,
as applicable, shall refuse or fail to execute and deliver any such Assignment and Acceptance prior to the effective date of such
replacement, Agent may, but shall not be required to, execute and deliver such Assignment and Acceptance in the name or and on
behalf of the Non-Consenting Lender or Tax Lender, as applicable, and irrespective of whether Agent executes and delivers such
Assignment and Acceptance, the Non-Consenting Lender or Tax Lender, as applicable, shall be deemed to have executed and delivered
such Assignment and Acceptance. The replacement of any Non-Consenting Lender or Tax Lender, as applicable, shall be made in accordance
with the terms of Section ‎13.1. Until such time as one or more Replacement Lenders shall have acquired all of the
Obligations, the Commitments, and the other rights and obligations of the Non-Consenting Lender or Tax Lender, as applicable,
hereunder and under the other Loan Documents, the Non-Consenting Lender or Tax Lender, as applicable, shall remain obligated to
make the Non-Consenting Lender’s or Tax Lender’s, as applicable, Pro Rata Share of Loans.

 

14.3           
No Waivers; Cumulative Remedies. No failure by Agent or any Lender to exercise any right, remedy, or option
under this Agreement or any other Loan Document, or delay by Agent or any Lender in exercising the same, will operate as a waiver
thereof. No waiver by Agent or any Lender will be effective unless it is in writing, and then only to the extent specifically
stated. No waiver by Agent or any Lender on any occasion shall affect or diminish Agent’s and each Lender’s rights
thereafter to require strict performance by Borrower of any provision of this Agreement. Agent’s and each Lender’s
rights under this Agreement and the other Loan Documents will be cumulative and not exclusive of any other right or remedy that
Agent or any Lender may have.

 

15.              
AGENT; THE LENDER GROUP.

 

15.1           
Appointment and Authorization of Agent. Each Lender hereby designates and appoints Cantor Fitzgerald Securities
as its agent under this Agreement and the other Loan Documents and each Lender hereby irrevocably authorizes Agent to execute
and deliver each of the other Loan Documents on its behalf and to take such other action on its behalf under the provisions of
this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to
Agent by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto.
Agent agrees to act as agent for and on behalf of the Lenders on the conditions contained in this Section 15. Any provision
to the contrary contained elsewhere in this Agreement or in any other Loan Document notwithstanding, Agent shall not have any
duties or responsibilities, except those expressly set forth herein or in the other Loan Documents which shall be ministerial
and administrative in nature. Without limiting the generality of the foregoing, the Agent (a) shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default or an Event of Default has occurred and is continuing; (b) shall not
have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly
contemplated hereby or by the other Loan Documents that the Agent is required to exercise as directed in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents);
provided that, the Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may
expose the Agent to liability with respect to which it is not indemnified or that is contrary to any Loan Document or applicable
law, including, for the avoidance of doubt, any debtor relief law applicable to any Defaulting Lender; and (c) shall not, except
as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Loan Parties or any of its Affiliates that is communicated to or obtained by the
Person serving as the Agent or any of its Affiliates in any capacity. Without limiting the generality of the foregoing, the use
of the term “agent” in this Agreement or the other Loan Documents with reference to Agent is not intended to connote
any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term
is used merely as a matter of market custom, and

 

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is
intended to create or reflect only a representative relationship between independent contracting parties. Each Lender hereby further
authorizes Agent to act as the secured party under each of the Loan Documents that create a Lien on any item of Collateral. Except
as expressly otherwise provided in this Agreement, Agent shall have and may use its sole discretion with respect to exercising
or refraining from exercising any discretionary rights or taking or refraining from taking any actions that Agent expressly is
entitled to take or assert under or pursuant to this Agreement and the other Loan Documents. Without limiting the generality of
the foregoing, or of any other provision of the Loan Documents that provides rights or powers to Agent, Lenders agree that Agent
shall have the right, but not the duty (to the extent exercise of the following would constitute the taking of a discretionary
action or the exercise any discretionary powers), to exercise the following powers as long as this Agreement remains in effect:
(a) maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the Obligations,
the Collateral, payments and proceeds of Collateral, and related matters, (b) execute or file any and all financing or similar
statements or notices, amendments, renewals, supplements, documents, instruments, proofs of claim, notices and other written agreements
with respect to the Loan Documents, (c) make Loans, for itself or on behalf of Lenders, as provided in the Loan Documents, (d)
exclusively receive, apply, and distribute payments and proceeds of the Collateral as provided in the Loan Documents, (e) open
and maintain such bank accounts and cash management arrangements as Agent deems necessary and appropriate in accordance with the
Loan Documents for the foregoing purposes, (f) perform, exercise, and enforce any and all other rights and remedies of the
Lender Group with respect to Borrower or its Subsidiaries, the Obligations, the Collateral, or otherwise related to any of same
as provided in the Loan Documents, and (g) incur and pay such Lender Group Expenses as Agent may deem necessary or appropriate
for the performance and fulfillment of its functions and powers pursuant to the Loan Documents.

 

15.2           
Delegation of Duties. Agent may execute any of its duties under this Agreement or any other Loan Document
by or through agents, employees or attorneys in fact (each, a “Sub-Agent”) and shall be entitled to advice
of counsel concerning all matters pertaining to such duties. Agent and any such Sub-Agent may perform any and all of its duties
and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article
15 shall apply to any such Sub-Agent and to the Related Parties of the Agent and any such Sub-Agent, and shall apply to their
respective activities in connection with the syndication of the credit facilities under this Agreement as well as activities as
such Agent. Agent shall not be responsible for the negligence or conduct of any Sub-Agent that it selects as long as such selection
was made without gross negligence or willful misconduct.

 

15.3           
Liability of Agent. None of the Agent-Related Persons shall (a) be liable for any action taken or omitted
to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated
hereby (except for its own gross negligence or willful misconduct as determined by a final and non-appealable judgment of a court
of competent jurisdiction), or (b) be responsible in any manner to any of the Lenders for any recital, statement, representation
or warranty made by Borrower or any of its Subsidiaries or Affiliates, or any officer or director thereof, contained in this Agreement
or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received
by Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of Borrower or its Subsidiaries
or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under
any obligation to any Lenders to ascertain or to inquire as to (i) the observance or performance of any of the agreements contained
in, or conditions of, this Agreement or any other Loan Document, or to inspect the books and records or properties of Borrower
or its Subsidiaries, (ii) any statement, warranty or representation made by any other Person in or in connection with this Agreement
or any other Loan Document, (iii) the contents of any certificate, report or other document delivered hereunder or thereunder
or in connection herewith or therewith, (iv) the performance or observance of any of the covenants, agreements or other terms
or conditions set forth herein or therein or the occurrence of any Default or Event of Default, (v) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or the
creation, perfection or priority of any Lien purported to be created by the Security

 

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Agreement
or any other Loan Document, (v) the value or the sufficiency of any Collateral, or (vi) the satisfaction of any condition set
forth in Article 3 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Agent.

 

15.4           
Reliance by Agent. Agent shall be entitled to rely, and shall be fully protected in relying, and shall not
incur any liability for relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, telefacsimile
or other electronic method of transmission, telex or telephone message, statement or other document or conversation believed by
it to be genuine and correct and to have been signed, sent, or made by the proper Person or Persons, and upon advice and statements
of legal counsel (including counsel to Borrower or counsel to any Lender), independent accountants and other experts selected
by Agent. The Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by
the proper Person, and shall not incur any liability for relying thereon. Agent shall be fully justified in failing or refusing
to take any action under this Agreement or any other Loan Document unless Agent shall first receive such advice or concurrence
of the Lenders as it deems appropriate and until such instructions are received, Agent shall act, or refrain from acting, as it
deems advisable. If Agent so requests, it shall first be indemnified to its reasonable satisfaction by the Lenders against any
and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. Agent shall
in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance
with a request or consent of the Required Lenders and such request and any action taken or failure to act pursuant thereto shall
be binding upon all of the Lenders.

 

15.5           
Notice of Default or Event of Default. Agent shall not be deemed to have knowledge or notice of the occurrence
of any Default or Event of Default unless and until notice describing such Default or Event of Default is given to the Agent in
writing by the Loan Parties or a Lender. Agent promptly will notify the Lenders of its receipt of any such notice or of any Event
of Default of which Agent has actual knowledge. If any Lender obtains actual knowledge of any Event of Default, such Lender promptly
shall notify the other Lenders and Agent of such Event of Default. Each Lender shall be solely responsible for giving any notices
to its Participants, if any. Subject to Section 15.4, Agent shall take such action with respect to such Default or Event
of Default as may be requested by the Required Lenders in accordance with Section 9; provided, that unless and until
Agent has received any such request, Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default or Event of Default as it shall deem advisable. In no event shall the Agent be required to comply
with any such directions to the extent that the Agent believes that its compliance with such directions would be unlawful.

 

15.6           
Credit Decision. Each Lender acknowledges that none of the Agent-Related Persons has made any representation
or warranty to it, and that no act by Agent hereinafter taken, including any review of the affairs of Borrower and its Subsidiaries
or Affiliates, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender. Each Lender
represents to Agent that it has, independently and without reliance upon any Agent-Related Person and based on such due diligence,
documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects,
operations, property, financial and other condition and creditworthiness of Borrower or any other Person party to a Loan Document,
and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into
this Agreement and to extend credit to Borrower. Each Lender also represents that it will, independently and without reliance
upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to
make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan
Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property,
financial and other condition and creditworthiness of Borrower or any other Person party to a Loan Document. Except for notices,
reports, and other documents expressly herein required to be furnished to the Lenders by Agent, Agent shall not have any duty
or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property,
financial and other condition or creditworthiness of Borrower or any other Person party to a

 

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Loan
Document that may come into the possession of any of the Agent-Related Persons. Each Lender acknowledges that Agent does not have
any duty or responsibility, either initially or on a continuing basis (except to the extent, if any, that is expressly specified
herein) to provide such Lender with any credit or other information with respect to Borrower, its Affiliates or any of their respective
business, legal, financial or other affairs, and irrespective of whether such information came into Agent’s or its Affiliates’
or representatives’ possession before or after the date on which such Lender became a party to this Agreement.

 

15.7           
Costs and Expenses; Indemnification. Agent may incur and pay Lender Group Expenses to the extent Agent reasonably
deems necessary or appropriate for the performance and fulfillment of its functions, powers, and obligations pursuant to the Loan
Documents, including court costs, attorneys’ fees and expenses (limited, in the case of legal fees and expenses, to reasonable
and documented fees and expenses of one counsel to the Agent, any Sub-Agent and the Lenders (taken as a whole) in each material
or relevant jurisdiction (unless (x) a conflict or potential conflict exists as determined in the reasonable judgment of any such
party in which case(s) the fees, charges and disbursements of reasonably necessary additional counsel for all such affected parties
shall be covered, (y) special regulatory counsel is necessary as determined in the reasonable judgment of the Agent or the Required
Lenders, in which case the fees and expenses of such regulatory counsel shall be covered or (z) an Event of Default exists)),
fees and expenses of financial accountants, advisors, consultants, and appraisers, costs of collection by outside collection agencies,
auctioneer fees and expenses, and costs of security guards or insurance premiums paid to maintain the Collateral, whether or not
Borrower is obligated to reimburse Agent or Lenders for such expenses pursuant to this Agreement or otherwise. Agent is authorized
and directed to deduct and retain sufficient amounts from payments or proceeds of the Collateral received by Agent to reimburse
Agent for such out-of-pocket costs and expenses prior to the distribution of any amounts to Lenders. In the event Agent is not
reimbursed for such costs and expenses by Borrower or its Subsidiaries, each Lender hereby agrees that it is and shall be obligated
to pay to Agent such Lender’s ratable thereof. Whether or not the transactions contemplated hereby are consummated, each
of the Lenders, on a ratable basis, shall indemnify and defend the Agent-Related Persons (to the extent not reimbursed by or on
behalf of Borrower and without limiting the obligation of Borrower to do so) from and against any and all Indemnified Liabilities;
provided, that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified
Liabilities resulting solely from such Agent-Related Person’s gross negligence or willful misconduct nor shall any Lender
be liable for the obligations of any Defaulting Lender in failing to make a Loan or other extension of credit hereunder. Without
limitation of the foregoing, each Lender shall reimburse Agent upon demand for such Lender’s ratable share of any costs
or out of pocket expenses (including attorneys, accountants, advisors, and consultants fees and expenses) incurred by Agent in
connection with the preparation, execution, delivery, administration, modification, amendment, or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement
or any other Loan Document to the extent that Agent is not reimbursed for such expenses by or on behalf of Borrower. The undertaking
in this Section shall survive the payment of all Obligations hereunder and the resignation or replacement of Agent.

 

15.8           
Agent in Individual Capacity. Cantor Fitzgerald Securities and its Affiliates may make loans to, issue letters
of credit for the account of, accept deposits from, provide bank products to, acquire Equity Interests in, and generally engage
in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and its Subsidiaries and Affiliates
and any other Person party to any Loan Document as though Cantor Fitzgerald Securities were not Agent hereunder, and, in each
case, without notice to or consent of the other members of the Lender Group. The other members of the Lender Group acknowledge
that, pursuant to such activities, Cantor Fitzgerald Securities or its Affiliates may receive information regarding Borrower or
its Affiliates or any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of Borrower
or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge that, in
such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver Agent will use its reasonable
best efforts to obtain), Agent shall not be under any obligation to provide such information to them. The terms “Lender”
and “Lenders” include Cantor Fitzgerald Securities in its individual capacity, to the extent Cantor Fitzgerald Securities
is party hereto as a Lender at the relevant time of determination.

 

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15.9           
Successor Agent. Agent may resign as Agent upon 30 days prior written notice to the Lenders (unless such
notice is waived by the Required Lenders) and Borrower (unless such notice is waived by Borrower). If Agent resigns under this
Agreement, the Required Lenders shall be entitled, with (so long as no Event of Default has occurred and is continuing) the consent
of Borrower (such consent not to be unreasonably withheld, delayed, or conditioned), appoint a successor Agent for the Lenders.
If no successor Agent is appointed prior to the effective date of the resignation of Agent, Agent may appoint, after consulting
with the Lenders and Borrower, a successor Agent. If Agent has materially breached or failed to perform any material provision
of this Agreement or of applicable law, the Required Lenders may agree in writing to remove and replace Agent with a successor
Agent from among the Lenders with (so long as no Event of Default has occurred and is continuing) the consent of Borrower (such
consent not to be unreasonably withheld, delayed, or conditioned). In any such event, upon the acceptance of its appointment as
successor Agent hereunder, such successor Agent shall succeed to all the rights, powers, and duties of the retiring Agent and
the term “Agent” shall mean such successor Agent and the retiring Agent’s appointment, powers, and duties as
Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section
‎15 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement.
If no successor Agent has accepted appointment as Agent by the date which is 30 days following a retiring Agent’s notice
of resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform
all of the duties of Agent hereunder until such time, if any, as the Lenders appoint a successor Agent as provided for above.

 

15.10       
Lender in Individual Capacity. Any Lender and its respective Affiliates may make loans to, issue letters
of credit for the account of, accept deposits from, provide bank products to, acquire Equity Interests in and generally engage
in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and its Subsidiaries and Affiliates
and any other Person party to any Loan Documents as though such Lender were not a Lender hereunder without notice to or consent
of the other members of the Lender Group. The other members of the Lender Group acknowledge that, pursuant to such activities,
such Lender and its respective Affiliates may receive information regarding Borrower or its Affiliates or any other Person party
to any Loan Documents that is subject to confidentiality obligations in favor of Borrower or such other Person and that prohibit
the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence
of a waiver of such confidentiality obligations, which waiver such Lender will use its reasonable best efforts to obtain), such
Lender shall not be under any obligation to provide such information to them.

 

15.11       
Collateral Matters.

 

(a)               
The Lenders hereby irrevocably authorize Agent to release any Lien on any Collateral (other than the Zohydro Assets and
any material Intellectual Property that constitutes Collateral, except in the case of clause (i) or if all of the Lenders have
expressly consented thereto in writing) (i) upon the termination of the Commitments and payment and satisfaction in full by Borrower
of all of the Obligations, (ii) constituting property being sold or disposed of if a release is required or desirable in connection
therewith and if Borrower certifies to Agent that (x) the sale or disposition is permitted under Section ‎6.4 and (y)
following such sale or disposition, such property no longer constitutes Collateral and is not required to be pledged as Collateral
pursuant to this Agreement or any of the Loan Documents (and Agent may rely conclusively on any such certificate, without further
inquiry), (iii) constituting property in which Borrower or its Subsidiaries owned no interest at the time Agent’s Lien was
granted nor at any time thereafter, (iv) constituting property leased or licensed to Borrower or its Subsidiaries under a
lease or license that has expired or is terminated in a transaction permitted under this Agreement and such property no longer
constitutes Collateral and is not required to be pledged as Collateral pursuant to this Agreement or the other Loan Documents,
or (v) in connection with a credit bid or purchase authorized under this Section ‎15.11. The Loan Parties and the Lenders
hereby irrevocably authorize Agent, based upon the instruction of the Required Lenders, to (a) consent to the sale of, credit
bid, or purchase (either directly or indirectly through one or more entities) all or any portion of the Collateral at any sale
thereof conducted under the provisions of the Bankruptcy Code, including Section 363 of the Bankruptcy Code, (b) credit bid or
purchase (either directly or indirectly through one or more entities) all or any portion of the 

 

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Collateral
at any sale or other disposition thereof conducted under the provisions of the Code, including pursuant to Sections 9-610 or 9-620
of the Code, or (c) credit bid or purchase (either directly or indirectly through one or more entities) all or any portion of
the Collateral at any other sale or foreclosure conducted or consented to by Agent in accordance with applicable law in any judicial
action or proceeding or by the exercise of any legal or equitable remedy. In connection with any such credit bid or purchase,
(i) the Obligations owed to the Lenders shall be entitled to be, and shall be, credit bid on a ratable basis (with Obligations
with respect to contingent or unliquidated claims being estimated for such purpose if the fixing or liquidation thereof would
not impair or unduly delay the ability of Agent to credit bid or purchase at such sale or other disposition of the Collateral
and, if such contingent or unliquidated claims cannot be estimated without impairing or unduly delaying the ability of Agent to
credit bid at such sale or other disposition, then such claims shall be disregarded, not credit bid, and not entitled to any interest
in the Collateral that is the subject of such credit bid or purchase) and the Lenders whose Obligations are credit bid shall be
entitled to receive interests (ratably based upon the proportion of their Obligations credit bid in relation to the aggregate
amount of Obligations so credit bid) in the Collateral that is the subject of such credit bid or purchase (or in the Equity Interests
of the any entities that are used to consummate such credit bid or purchase), and (ii) Agent, based upon the instruction of the
Required Lenders, may accept non-cash consideration, including debt and equity securities issued by any entities used to consummate
such credit bid or purchase and in connection therewith Agent may reduce the Obligations owed to the Lenders (ratably based upon
the proportion of their Obligations credit bid in relation to the aggregate amount of Obligations so credit bid) based upon the
value of such non-cash consideration. Except as provided above, Agent will not execute and deliver a release of any Lien on any
Collateral without the prior written authorization of (y) if the release is of all or substantially all of the Collateral, all
of the Lenders, or (z) otherwise, the Required Lenders. Upon request by Agent or Borrower at any time, the Lenders will confirm
in writing Agent’s authority to release any such Liens on particular types or items of Collateral expressly permitted to
be released pursuant to this Section ‎15.11; provided, that (1) anything to the contrary contained in any of
the Loan Documents notwithstanding, Agent shall not be required to execute any document or take any action necessary to evidence
such release on terms that, in Agent’s opinion, could expose Agent to liability or create any obligation or entail any consequence
other than the release of such Lien without recourse, representation, or warranty, and (2) such release shall not in any manner
discharge, affect, or impair the Obligations or any Liens (other than those expressly released) upon (or obligations of Borrower
in respect of) any and all interests retained by Borrower, including, the proceeds of any sale, all of which shall continue to
constitute part of the Collateral. Each Lender further hereby irrevocably authorizes Agent, at its option and in its sole discretion,
to subordinate any Lien granted to or held by Agent under any Loan Document to the holder of any Permitted Collateral Lien on
such property if such Permitted Collateral Lien secures Permitted Purchase Money Indebtedness.

 

(b)              
Agent shall have no obligation whatsoever to any of the Lenders (i) to verify or assure that the Collateral exists or is
owned by Borrower or its Subsidiaries or is cared for, protected, or insured or has been encumbered, (ii) to verify or assure
that Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected, or enforced or are entitled
to any particular priority, (iii) to verify or assure that any particular items of Collateral meet the eligibility criteria applicable
in respect thereof, (iv) to impose, maintain, increase, reduce, implement, or eliminate any particular reserve hereunder or to
determine whether the amount of any reserve is appropriate or not, or (v) to exercise at all or in any particular manner or under
any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available
to Agent pursuant to any of the Loan Documents, it being understood and agreed that in respect of the Collateral, or any act,
omission, or event related thereto, subject to the terms and conditions contained herein, Agent may act in any manner it may deem
appropriate, in its sole discretion given Agent’s own interest in the Collateral in its capacity as one of the Lenders and
that Agent shall have no other duty or liability whatsoever to any Lender as to any of the foregoing, except as otherwise expressly
provided herein.

 

15.12       
Restrictions on Actions by Lenders; Sharing of Payments.

 

 

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(a)               
Each of the Lenders agrees that it shall not, without the express written consent of Agent, and that it shall, to the extent
it is lawfully entitled to do so, upon the written request of Agent, set off against the Obligations, any amounts owing by such
Lender to Borrower or its Subsidiaries or any deposit accounts of Borrower or its Subsidiaries now or hereafter maintained with
such Lender. Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Agent,
take or cause to be taken any action, including, the commencement of any legal or equitable proceedings to enforce any Loan Document
against Borrower or any Guarantor or to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral.

 

(b)              
If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or otherwise, any proceeds of Collateral
or any payments with respect to the Obligations, except for any such proceeds or payments received by such Lender from Agent pursuant
to the terms of this Agreement, or (ii) payments from Agent in excess of such Lender’s Pro Rata Share of all such distributions
by Agent, such Lender promptly shall (A) turn the same over to Agent, in kind, and with such endorsements as may be required to
negotiate the same to Agent, or in immediately available funds, as applicable, for the account of all of the Lenders and for application
to the Obligations in accordance with the applicable provisions of this Agreement, or (B) purchase, without recourse or warranty,
an undivided interest and participation in the Obligations owed to the other Lenders so that such excess payment received shall
be applied ratably as among the Lenders in accordance with their Pro Rata Shares; provided, that to the extent that such
excess payment received by the purchasing party is thereafter recovered from it, those purchases of participations shall be rescinded
in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be returned to such purchasing
party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the
recovery of the excess payment.

 

15.13       
Agency for Perfection. Agent hereby appoints each other Lender as its agent (and each Lender hereby accepts
such appointment) for the purpose of perfecting Agent’s Liens in assets which, in accordance with Article ‎8 or Article
‎9, as applicable, of the Code can be perfected by possession or control. Should any Lender obtain possession or control of
any such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent’s request therefor shall deliver possession
or control of such Collateral to Agent or in accordance with Agent’s instructions.

 

15.14       
Payments by Agent to the Lenders. All payments to be made by Agent to the Lenders shall be made by bank wire
transfer of immediately available funds pursuant to such wire transfer instructions as each party may designate for itself by
written notice to Agent. Concurrently with each such payment, Agent shall identify whether such payment (or any portion thereof)
represents principal, premium, fees, or interest of the Obligations.

 

15.15       
Concerning the Collateral and Related Loan Documents. Each member of the Lender Group authorizes and directs
Agent to enter into this Agreement and the other Loan Documents. Each member of the Lender Group agrees that any action taken
by Agent in accordance with the terms of this Agreement or the other Loan Documents relating to the Collateral and the exercise
by Agent of its powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall
be binding upon all of the Lenders.

 

15.16       
Confidentiality; Disclaimers by Lenders; Other Reports and Information. By becoming a party to this Agreement,
each Lender agrees to keep all material, non-public information regarding Borrower and its Subsidiaries and their operations,
assets, and existing and contemplated business plans in a confidential manner in accordance with Section ‎17.9. In
addition to the foregoing, (x) any Lender may from time to time request of Agent in writing that Agent provide to such Lender
a copy of any report or document provided by Borrower or its Subsidiaries to Agent that has not been contemporaneously provided
by Borrower or such Subsidiary to such Lender, and, upon receipt of such request, Agent promptly shall provide a copy of same
to such Lender, (y) to the extent that Agent is entitled, under any provision of the Loan Documents, to request additional reports
or information from Borrower or its Subsidiaries, any Lender may, from time to time, reasonably request Agent to

 

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exercise
such right as specified in such Lender’s notice to Agent, whereupon Agent promptly shall request of Borrower the additional
reports or information reasonably specified by such Lender, and, upon receipt thereof from Borrower or such Subsidiary, Agent
promptly shall provide a copy of same to such Lender, and (z) any time that Agent renders to Borrower a statement regarding the
Loan Account, Agent shall send a copy of such statement to each Lender.

 

15.17       
Several Obligations; No Liability. Notwithstanding that certain of the Loan Documents now or hereafter may
have been or will be executed only by or in favor of Agent in its capacity as such, and not by or in favor of the Lenders, any
and all obligations on the part of Agent (if any) to make any credit available hereunder shall constitute the several (and not
joint) obligations of the respective Lenders on a ratable basis, according to their respective Commitments, to make an amount
of such credit not to exceed, in principal amount, at any one time outstanding, the amount of their respective Commitments. Nothing
contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect of, the
business, assets, profits, losses, or liabilities of any other Lender. Each Lender shall be solely responsible for notifying its
Participants of any matters relating to the Loan Documents to the extent any such notice may be required, and no Lender shall
have any obligation, duty, or liability to any Participant of any other Lender. Except as provided in Section ‎15.7, no member
of the Lender Group shall have any liability for the acts of any other member of the Lender Group. No Lender shall be responsible
to Borrower or any other Person for any failure by any other Lender to fulfill its obligations to make credit available hereunder,
nor to advance for such Lender or on its behalf, nor to take any other action on behalf of such Lender hereunder or in connection
with the financing contemplated herein.

 

16.              
WITHHOLDING TAXES.

 

16.1           
Payments. All payments made by Borrower hereunder or under any note or other Loan Document will be made without
setoff, counterclaim, or other defense. In addition, all such payments will be made free and clear of, and without deduction or
withholding for, any present or future Indemnified Taxes, and in the event any deduction or withholding of Indemnified Taxes is
required, Borrower shall comply with the next sentence of this Section ‎16.1. If any Indemnified Taxes are so levied
or imposed, Borrower agrees to pay the full amount of such Indemnified Taxes and such additional amounts as may be necessary so
that every payment of all amounts due under this Agreement, any note, or Loan Document, including any amount paid pursuant to
this Section ‎16.1 after withholding or deduction for or on account of any Indemnified Taxes, will not be less than
the amount provided for herein. Borrower will furnish to Agent as promptly as possible after the date the payment of any Indemnified
Tax is due pursuant to applicable law, certified copies of tax receipts evidencing such payment by Borrower. Without any duplication
of any other obligation under this Section ‎16.1, Borrower agrees to pay any present or future stamp, value added or
documentary taxes or any other excise or property taxes, charges, or similar levies that arise from any payment made hereunder
or from the execution, delivery, performance, recordation, or filing of, or otherwise with respect to this Agreement or any other
Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment
made pursuant to Section 14.2).

 

16.2           
Exemptions.

 

(a)       If
a Lender or Participant is entitled to claim an exemption from applicable withholding tax in any jurisdiction, such Lender or
such Participant agrees with and in favor of Agent, to deliver to Agent (or, in the case of a Participant, to the Lender granting
the participation only) any such form or forms, as may be required under the laws of such jurisdiction as a condition to exemption
from, or reduction of, foreign withholding or backup withholding tax before receiving its first payment under this Agreement,
but only if such Lender or such Participant is legally able to deliver such forms, provided, that nothing in this Section
‎16.2(a) shall require a Lender or Participant to disclose any information that it deems to be confidential (including,
its tax returns). Each Lender and each Participant shall provide new forms (or successor forms) upon the expiration or obsolescence
of any previously delivered forms and shall promptly notify Agent (or, in the case of a Participant, notify the Lender

 

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granting
the participation only) of any change in circumstances which would modify or render invalid any claimed exemption or reduction.

 

(b)       If
a Lender or Participant claims exemption from, or reduction of, withholding tax and such Lender or Participant sells, assigns,
grants a participation in, or otherwise transfers all or part of the Obligations of Borrower to such Lender or Participant, such
Lender or Participant agrees to notify Agent (or, in the case of a sale of a participation interest, to notify the Lender granting
the participation only) of the percentage amount in which it is no longer the beneficial owner of Obligations of Borrower to such
Lender or Participant. To the extent of such percentage amount, Agent will treat such Lender’s or such Participant’s
documentation provided pursuant to Section ‎16.2(a) as no longer valid. With respect to such percentage amount, such
Participant or Assignee will provide new documentation, pursuant to Section ‎16.2(a), if applicable. Borrower agrees
that each Participant shall be entitled to the benefits of this Section ‎16 with respect to its participation in any
portion of the Commitments and the Obligations so long as such Participant complies with the obligations set forth in this Section
‎16 with respect thereto.

 

16.3           
Reductions.

 

(a)               
If a Lender or a Participant is subject to an applicable withholding tax, Agent (or, in the case of a Participant, the
Lender granting the participation) may withhold from any payment to such Lender or such Participant an amount equivalent to the
applicable withholding tax (subject to the third sentence of Section 16.1). If the forms or other documentation required by Section
‎16.2(a) are not delivered to Agent (or, in the case of a Participant, to the Lender granting the participation), then
Agent (or, in the case of a Participant, to the Lender granting the participation) may withhold from any payment to such Lender
or such Participant not providing such forms or other documentation an amount equivalent to the applicable withholding tax.

 

(b)              
If the IRS or any other Governmental Authority of the United States or other jurisdiction asserts a claim that Agent (or,
in the case of a Participant, the Lender granting the participation) did not properly withhold tax from amounts paid to or for
the account of any Lender or any Participant due to a failure on the part of the Lender or any Participant (because the appropriate
form was not delivered, was not properly executed, or because such Lender failed to notify Agent (or such Participant failed to
notify the Lender granting the participation) of a change in circumstances which rendered the exemption from, or reduction of,
withholding tax ineffective, or for any other reason) such Lender shall indemnify and hold Agent harmless (or, in the case of
a Participant, such Participant shall indemnify and hold the Lender granting the participation harmless) for all amounts paid,
directly or indirectly, by Agent (or, in the case of a Participant, to the Lender granting the participation), as tax or otherwise,
including penalties and interest, and including any taxes imposed by any jurisdiction on the amounts payable to Agent (or, in
the case of a Participant, to the Lender granting the participation only) under this Section ‎16, together with all
costs and expenses (including attorneys’ fees and expenses). The obligation of the Lenders and the Participants under this
subsection shall survive the payment of all Obligations and the resignation or replacement of Agent.

 

16.4           
Refunds. If Agent or a Lender determines, in its sole discretion, that it has received a refund of any Indemnified
Taxes to which Borrower has paid additional amounts pursuant to this Section ‎16, it shall pay over such refund to
Borrower (but only to the extent of payments made, or additional amounts paid, by Borrower under this Section ‎16 with
respect to Indemnified Taxes giving rise to such a refund), net of all out-of-pocket expenses of Agent or such Lender and without
interest (other than any interest paid by the applicable Governmental Authority with respect to such a refund); provided, that
Borrower, upon the request of Agent or such Lender, agrees to repay the amount paid over to Borrower (plus any penalties, interest
or other charges, imposed by the applicable Governmental Authority, other than such penalties, interest or other charges imposed
as a result of the willful misconduct or gross negligence of Agent hereunder) to Agent or such Lender in the event Agent or such
Lender is required to repay such refund to such Governmental Authority. Notwithstanding anything in this Agreement to the

 

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contrary,
this Section ‎16.4 shall not be construed to require Agent or any Lender to make available its tax returns (or any
other information which it deems confidential) to Borrower or any other Person.

 

Subject
to Section ‎16.2(b), nothing in this Section ‎16 shall be construed as creating any obligations of Borrower
to any Participant or any rights in favor of any Participant against Borrower.

 

17.              
GENERAL PROVISIONS.

 

17.1           
Effectiveness. This Agreement shall be binding and deemed effective when executed by Borrower, Agent, and
each Lender whose signature is provided for on the signature pages hereof.

 

17.2           
Section Headings. Headings and numbers have been set forth herein for convenience only. Unless the contrary
is compelled by the context, everything contained in each Section applies equally to this entire Agreement.

 

17.3           
Interpretation. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed against
the Lender Group or Borrower, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed
by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish
fairly the purposes and intentions of all parties hereto.

 

17.4           
Severability of Provisions. Each provision of this Agreement shall be severable from every other provision
of this Agreement for the purpose of determining the legal enforceability of any specific provision.

 

17.5           
[Reserved]. 

 

17.6           
Debtor-Creditor Relationship. The relationship between the Lenders and Agent, on the one hand, and the Loan
Parties, on the other hand, is solely that of creditor and debtor. No member of the Lender Group has (or shall be deemed to have)
any fiduciary relationship or duty to any Loan Party arising out of or in connection with the Loan Documents or the transactions
contemplated thereby, and there is no agency or joint venture relationship between the members of the Lender Group, on the one
hand, and the Loan Parties, on the other hand, by virtue of any Loan Document or any transaction contemplated therein.

 

17.7           
Counterparts; Electronic Execution. This Agreement may be executed in any number of counterparts and by different
parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which,
when taken together, shall constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement by
telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart
of this Agreement. Any party delivering an executed counterpart of this Agreement by telefacsimile or other electronic method
of transmission also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. The foregoing shall apply to
each other Loan Document mutatis mutandis.

 

17.8           
Revival and Reinstatement of Obligations; Certain Waivers. If any member of the Lender Group repays,
refunds, restores, or returns in whole or in part, any payment or property (including any proceeds of Collateral)
previously paid or transferred to such member of the Lender Group in full or partial satisfaction of any Obligation
or on account of any other obligation of any Loan Party under any Loan Document, because the payment, transfer,
or the incurrence of the obligation so satisfied is asserted or declared to be void, voidable, or otherwise recoverable under
any law relating to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent transfers,
preferences, or other voidable or recoverable obligations or transfers (each, a “Voidable Transfer”),
or because such member of the Lender Group elects to do so on the reasonable advice of its counsel in connection with a claim
that the payment, transfer, or incurrence is or may be a Voidable Transfer, then, as to any such Voidable Transfer,
or the amount thereof that such member of the Lender Group elects to repay,

 

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restore,
or return (including pursuant to a settlement of any claim in respect thereof), and as to all reasonable costs, expenses, and
attorneys’ fees of such member of the Lender Group related thereto, (i) the liability of the Loan Parties with
respect to the amount or property paid, refunded, restored, or returned will automatically and immediately be revived, reinstated,
and restored and will exist and (ii) Agent’s Liens securing such liability shall be effective, revived, and remain
in full force and effect, in each case, as fully as if such Voidable Transfer had never been made.  If, prior to
any of the foregoing, (A) Agent’s Liens shall have been released or terminated or (B) any provision of this Agreement shall
have been terminated or cancelled, Agent’s Liens, or such provision of this Agreement, shall be reinstated in
full force and effect and such prior release, termination, cancellation or surrender shall not diminish, release, discharge, impair
or otherwise affect the obligation of any Loan Party in respect of such liability or any Collateral securing such liability. 

 

17.9           
Confidentiality.

 

(a)               
Agent and Lenders each individually (and not jointly or jointly and severally) agree that material, non-public information
regarding Borrower and its Subsidiaries, their operations, assets, and existing and contemplated business plans (“Confidential
Information”) shall be treated by Agent and the Lenders in a confidential manner, and shall not be disclosed by Agent
and the Lenders to Persons who are not parties to this Agreement, except: (i) to attorneys for and other advisors, accountants,
auditors, and consultants to any member of the Lender Group and to employees, directors and officers of any member of the Lender
Group (the Persons in this clause (i), “Lender Group Representatives”) on a “need to know” basis
in connection with this Agreement and the transactions contemplated hereby and on a confidential basis, (ii) to Subsidiaries and
Affiliates of any member of the Lender Group, provided that any such Subsidiary or Affiliate shall have agreed to receive such
information hereunder subject to the terms of this Section ‎17.9, (iii) as may be required by regulatory authorities
so long as such authorities are informed of the confidential nature of such information, (iv) as may be required by statute, decision,
or judicial or administrative order, rule, or regulation; provided that (x) prior to any disclosure under this clause (iv),
the disclosing party agrees to provide Borrower with prior notice thereof, to the extent that it is practicable to do so and to
the extent that the disclosing party is permitted to provide such prior notice to Borrower pursuant to the terms of the applicable
statute, decision, or judicial or administrative order, rule, or regulation and (y) any disclosure under this clause (iv) shall
be limited to the portion of the Confidential Information as may be required by such statute, decision, or judicial or administrative
order, rule, or regulation, (v) as may be agreed to in advance in writing by Borrower, (vi) as requested or required by any Governmental
Authority pursuant to any subpoena or other legal process, provided, that, (x) prior to any disclosure under this clause (vi)
the disclosing party agrees to provide Borrower with prior written notice thereof, to the extent that it is practicable to do
so and to the extent that the disclosing party is permitted to provide such prior written notice to Borrower pursuant to the terms
of the subpoena or other legal process and (y) any disclosure under this clause (vi) shall be limited to the portion of the Confidential
Information as may be required by such Governmental Authority pursuant to such subpoena or other legal process, (vii) as to any
such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Agent
or the Lenders or the Lender Group Representatives), (viii) in connection with any assignment, participation or pledge of any
Lender’s interest under this Agreement, provided that prior to receipt of Confidential Information any such assignee, participant,
or pledgee shall have agreed in writing to receive such Confidential Information either subject to the terms of this Section
‎17.9 or pursuant to confidentiality requirements substantially similar to those contained in this Section ‎17.9
(and such Person may disclose such Confidential Information to Persons employed or engaged by them as described in clause
(i) above), (ix) in connection with any litigation or other adversary proceeding involving parties hereto which such litigation
or adversary proceeding involves claims related to the rights or duties of such parties under this Agreement or the other Loan
Documents; provided, that, prior to any disclosure to any Person (other than any Loan Party, Agent, any Lender, any of
their respective Affiliates, or their respective counsel) under this clause (ix) with respect to litigation involving any Person
(other than Borrower, Agent, any Lender, any of their respective Affiliates, or their respective counsel), the disclosing party
agrees to provide Borrower with prior written notice thereof, and (x) in connection with, and to the extent reasonably necessary
for, the exercise of any secured creditor remedy under this Agreement or under any other Loan Document.

 

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(b)              
Anything in this Agreement to the contrary notwithstanding, Agent may disclose information concerning the terms and conditions
of this Agreement and the other Loan Documents to loan syndication and pricing reporting services or in its marketing or promotional
materials, with such information to consist of deal terms and other information customarily found in such publications or marketing
or promotional materials and may otherwise use the name, logos, and other insignia of Borrower or the other Loan Parties and the
Commitments provided hereunder in any “tombstone” or other advertisements, on its website or in other marketing materials
of the Agent.

 

(c)               
The Loan Parties hereby acknowledge that Agent or its Affiliates may make available to the Lenders materials or information
provided by or on behalf of Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower
Materials on IntraLinks, SyndTrak or another similar electronic system (the “Platform”) and certain of the
Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information with
respect to the Loan Parties or their securities) (each, a “Public Lender”). The Loan Parties shall be deemed
to have authorized Agent and its Affiliates and the Lenders to treat any Borrower Materials marked “PUBLIC” or otherwise
at any time filed with the SEC as not containing any material non-public information with respect to the Loan Parties or their
securities for purposes of United States federal and state securities laws. All Borrower Materials marked “PUBLIC”
are permitted to be made available through a portion of the Platform designated as “Public Investor” (or another similar
term). Agent and its Affiliates and the Lenders shall be entitled to treat any Borrower Materials that are not marked “PUBLIC”
or that are not at any time filed with the SEC as being suitable only for posting on a portion of the Platform not marked as “Public
Investor” (or such other similar term).

 

(d)              
During the course of any visits, inspections, examinations and discussions, representatives of the Agent and the Lenders
may encounter individually identifiable healthcare information as defined under HIPAA, or other confidential information relating
to healthcare patients (collectively, the “Confidential Healthcare Information”). The Loan Party maintaining
such Confidential Healthcare Information shall, consistent with HIPAA’s “minimum necessary” provisions, permit
such disclosure for their “healthcare operations” purposes.

 

17.10       
Survival. All representations and warranties made by the Loan Parties in the Loan Documents and in the certificates
or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered
to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the
making of any Loans, regardless of any investigation made by any such other party or on its behalf and notwithstanding that Agent
or any Lender may have had notice or knowledge of any Default or Event of Default or incorrect representation or warranty at the
time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of, or any accrued
interest on, any Loan or any fee or any other amount payable under this Agreement is outstanding or unpaid and so long as the
Commitments have not expired or been terminated.

 

17.11       
Patriot Act. Each Lender that is subject to the requirements of the Patriot Act hereby notifies Borrower
that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies Borrower,
which information includes the name and address of Borrower and other information that will allow such Lender to identify Borrower
in accordance with the Patriot Act. In addition, if Agent is required by law or regulation or internal policies to do so, it shall
have the right to periodically conduct (a) Patriot Act searches, OFAC/PEP searches, and customary individual background checks
for the Loan Parties and (b) OFAC/PEP searches and customary individual background checks for the Loan Parties’ senior management
and key principals, and Borrower agrees to cooperate in respect of the conduct of such searches and further agrees that the reasonable
costs and charges for such searches shall constitute Lender Group Expenses hereunder and be for the account of Borrower.

 

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17.12       
Integration. This Agreement, together with the other Loan Documents, reflects the entire understanding of
the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement,
oral or written, before the date hereof.

 

[Signature
pages to follow.]

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first above written.

 

 

	Borrower: 	 	 	PERNIX IRELAND PAIN LIMITED	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	By:	/s/
John A. Sedor    	 
	 	 	 	 	Name:	John A. Sedor	 
	 	 	 	 	Title:	Director	 
	 	 	 	 	 	 	 

 

 

 

 

[Signature
Page to Credit Agreement]

 

    	 

    	 

    
 

	 	 	 	CANTOR FITZGERALD SECURITIES, as Agent	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	By:	/s/
James Bond _    	 
	 	 	 	 	Name:	James Bond _	 
	 	 	 	 	Title:	Chief Operating Officer	 
	 	 	 	 	 	 	 

 

 

 

[Signature
Page to Credit Agreement]

 

    	 

    	 

    

	LENDERS:	 	1992 MSF International Ltd.

                                              

	 	 	 	BY: HIGHBRIDGE CAPITAL MANAGEMENT, LLC, AS TRADING MANAGER,

                                                 

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

 

	 	 	1992 MSF International Ltd.

                                              

	 	 	 	BY: HIGHBRIDGE CAPITAL MANAGEMENT, LLC, AS TRADING MANAGER,

                                                 

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

 

 

[Signature Page to Credit Agreement]

 

    	 

    	 

    

Schedule
1.1

 

As used
in the Agreement, the following terms shall have the following definitions:

 

“2015
Indenture” means that certain Indenture dated as of April 22, 2015 by and among Parent and 2015 Note Purchase Trustee,
governing the 4.25% Convertible Notes due 2021 issued by Parent, as may be amended, restated, modified, supplemented, renewed,
or replaced from time to time in accordance with the terms of the Agreement.

 

“2015
Note Purchase Creditors” means 2015 Note Purchase Investors and 2015 Note Purchase Trustee, collectively.

 

“2015
Note Purchase Debt” means all obligations, liabilities and indebtedness of every kind, nature and description owing
by Parent to one or more of the 2015 Note Purchase Creditors evidenced by or arising under one or more of the 2015 Note Purchase
Documents, whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated
or unliquidated, including principal, interest, charges, fees, costs, indemnities and reasonable expenses, however evidenced,
whether as principal, surety, endorser, guarantor or otherwise, whether now existing or hereafter arising.

 

“2015
Note Purchase Documents” means the 2015 Securities Purchase Agreement, the 2015 Indenture, the Notes (as such term is
defined in the 2015 Indenture) and all other agreements, documents and instruments at any time executed and/or delivered by Parent
with, to or in favor of 2015 Note Purchase Creditors in connection with or related to the 2015 Indenture, as each of the foregoing
may be amended, restated, modified, supplemented, renewed, or replaced from time to time in accordance with the terms of the Agreement.

 

“2015
Note Purchase Investors” has the same meaning as “Holders” in the 2015 Indenture.

 

“2015
Note Purchase Trustee” has the same meaning as “Trustee” in the 2015 Indenture.

 

“2015
Securities Purchase Agreement” means, individually and collectively, those certain Note Purchase Agreements entered
into by and between Parent and each investor party thereto in connection with the issuance of the “Notes” (as such
term is defined in the 2015 Indenture).

 

“2017
Exchange Agreement” means the exchange agreement entered into as of July 20, 2017 among Borrower, as issuer of the new
exchangeable notes referred to therein, the guarantors party thereto and the holders of the existing notes referred to therein
party thereto, as may be amended, restated, modified, supplemented, renewed, or replaced from time to time in accordance with
the terms of the Agreement.

 

“2017
Indenture” means that certain Indenture dated as of the Closing Date by and among Borrower and 2017 Note Purchase Trustee,
as may be amended, restated, modified, supplemented, renewed, or replaced from time to time in accordance with the terms of the
Agreement.

 

“2017
Note Purchase Creditors” means 2017 Note Purchase Investors and 2017 Note Purchase Trustee, collectively.

 

    
Schedule 1.1
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“2017
Note Purchase Debt” means all obligations, liabilities and indebtedness of every kind, nature and description owing
by Parent or any of its Subsidiaries that are guarantors of the 2017 Notes to one or more of the 2017 Note Purchase Creditors
evidenced by or arising under one or more of the 2017 Note Purchase Documents, whether direct or indirect, absolute or contingent,
joint or several, due or not due, primary or secondary, liquidated or unliquidated, including principal, interest, charges, fees,
costs, indemnities and reasonable expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise,
whether now existing or hereafter arising.

 

“2017
Note Purchase Documents” means the 2017 Exchange Agreement, the 2017 Indenture, the Notes (as such term is defined in
the 2017 Indenture) and all other agreements, documents and instruments at any time executed and/or delivered by Parent or any
of its Subsidiaries with, to or in favor of 2017 Note Purchase Creditors in connection with or related to the 2017 Exchange Agreement
or the 2017 Indenture, as each of the foregoing may be amended, restated, modified, supplemented, renewed, or replaced from time
to time in accordance with the terms of the Agreement.

 

“2017
Note Purchase Investors” has the same meaning as “Holders” in the 2017 Indenture.

 

“2017
Note Purchase Trustee” has the same meaning as “Trustee” in the 2017 Indenture.

 

“2017
Notes” means “Notes” as such term is defined in the 2017 Indenture.

 

“ABL
Credit Agreement” means that certain Credit Agreement dated as of the Closing Date by and among Parent and certain of
its Subsidiaries, the lenders party thereto and Cantor Fitzgerald Securities, as agent, as may be amended, restated, modified,
supplemented, renewed or replaced from time to time in accordance with the terms of the Agreement.

 

“ABL
Facility Creditors” means the lenders and agent under the ABL Credit Agreement.

 

“ABL
Facility Debt” means all obligations, liabilities and indebtedness of every kind, nature and description owing by Parent
and its Subsidiaries to one or more of the ABL Facility Creditors evidenced by or arising under one or more of the ABL Loan Documents,
whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated,
including principal, interest, charges, fees, costs, indemnities and reasonable expenses,  however evidenced, whether as
principal, surety, endorser, guarantor or otherwise, whether now existing or hereafter arising.

 

“ABL
Facility” means the asset based revolving credit facility provided pursuant to the ABL Credit Agreement.

 

“ABL
Loan Documents” means the ABL Credit Agreement, the related guarantee and security agreement and all other agreements,
documents and instruments at any time executed and/or delivered by Parent or any of its Subsidiaries with, to or in favor of the
ABL Facility Creditors in connection therewith or related thereto, as each of the foregoing may be amended, restated, modified,
supplemented, renewed or replaced from time to time in accordance with the terms of the Agreement.

 

“Acceptable
Entity” means any Person that is (a) a corporation or limited liability company organized and existing under the laws
of the United States of America, any State thereof or the

 

    
Schedule 1.1
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District
of Columbia, or (b) a corporation or an entity treated as a corporation for U.S. federal income tax purposes organized and existing
under the laws of Bermuda, the Netherlands, Belgium, Switzerland, Luxembourg, the Republic of Ireland, Canada, the United Kingdom,
Sweden, Denmark or any other jurisdiction acceptable to the Required lenders.

 

“Account”
means an account (as that term is defined in the Code), including all health-care insurance receivables (as that term is defined
in the Code).

 

“Account
Debtor” means “account debtor”, as defined in Article 9 of the Code and any other Person who is obligated
on an Account, chattel paper, or a general intangible.

 

“Accounting
Changes” means changes in accounting principles required by the promulgation of any rule, regulation, pronouncement
or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants (or successor
thereto or any agency with similar functions).

 

“Acquired
Cash Flow Ratio” means, with respect to any Target acquired in a Permitted Acquisition, a ratio, (a) the numerator of
which is an amount equal to Acquired Gross Profits for the 12-month period most recently ended at least 30 days but not more than
45 days prior to the acquisition date (or, to the extent more recently ended, the 12-month period for which financial statements
have been made available to the Borrower), minus the sum of (i) pro forma cash interest expense relating to any Indebtedness
(including any Subsequent Loan) incurred, acquired or assumed by any Loan Party or Subsidiary in connection with such Permitted
Acquisition, including any such acquired or assumed Indebtedness of such Target and its Subsidiaries that remains outstanding
immediately after giving effect to such Permitted Acquisition and the repayment or refinancing of any such Indebtedness in connection
therewith (calculated on a pro forma basis as if such Indebtedness were incurred at the beginning of such 12-month period) (the
“Pro Forma Cash Interest”), (ii) any fees paid or required to be paid during such 12-month period to regulatory
agencies by such Target and/or its Subsidiaries or in respect of any of their assets or businesses (including PDUFA fees, ACA
fees and any amounts paid in connection with the FDA’s Risk Evaluation and Mitigation Strategy) and (iii) any other incremental
operating expenses projected in good faith to be incurred during the 12-month period immediately following the consummation of
such Permitted Acquisition in order to market or maintain the marketability of any product(s) of such Target and/or its Subsidiaries,
and (b) the denominator of which is the Pro Forma Cash Interest.

 

“Acquired
Gross Profits” means, with respect to any Target acquired in a Permitted Acquisition, an amount equal to (i) the net
revenues of  such Target, minus (ii) the cost of goods of such Target, minus (iii) any recurring deferred,
milestone or other contingent payments in connection with any sale or licensing of Intellectual Property and any royalty payments,
in any such case, made during the 12-month period most recently ended at least 30 days but not more than 45 days prior to the
acquisition date (or, to the extent more recently ended, the 12-month period for which financial statements have been made available
to the Borrower) with respect to any of its assets or businesses, in each case, for the relevant period.

 

“Acquired
Indebtedness” means Indebtedness of a Target or any of its Subsidiaries whose assets or Equity Interests are acquired
by an Acquisition Subsidiary after the Closing Date in a Permitted Acquisition; provided, that such Indebtedness (a) is
either purchase money Indebtedness or a Capital Lease with respect to Equipment or mortgage financing with respect to Real Property
and is only secured by such Equipment, Real Property or other assets acquired or leased pursuant to such Indebtedness and

 

    
Schedule 1.1
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proceeds
thereof, (b) was in existence prior to the date of such Permitted Acquisition, (c) was not incurred in connection with, or in
contemplation of, such Permitted Acquisition, (d) no Loan Party or “Credit Party” (as defined in the 2017 Indenture)
guarantees, grants a Lien on its assets to secure or is otherwise obligated on such Indebtedness (other than the relevant Target
and any of its Subsidiaries, in any such case, to the extent such Persons guaranteed or were otherwise obligated on such Indebtedness
prior to the acquisition of the Target by the relevant Acquisition Subsidiary), and (e) such Indebtedness is not secured by liens
on any material Intellectual Property.

 

“Acquisition
Indebtedness” means Indebtedness of an Acquisition Subsidiary or any Target or any of Target’s Subsidiaries whose
assets or Equity Interests are acquired by such Acquisition Subsidiary after the Closing Date in a Permitted Acquisition; provided,
that such Indebtedness (a) is incurred to finance all or a portion of the Purchase Price in connection with such Permitted Acquisition
and is only secured by assets of such Acquisition Subsidiary acquired in such Permitted Acquisition, assets of such Target and
such Target’s Subsidiaries and proceeds thereof, (b) no Loan Party or “Credit Party” (as defined in the 2017
Indenture) guarantees, grants a Lien on its assets to secure or is otherwise obligated on such Indebtedness (other than such Acquisition
Subsidiary, such Target and such Target’s Subsidiaries), and (c) such Indebtedness is not secured by liens on any material
Intellectual Property (other than Liens securing the Obligations).

 

“Acquisition
Subsidiary” means any direct Subsidiary of Borrower that is (i) formed to consummate a Permitted Acquisition and (ii)
an Acceptable Entity; provided that such Acquisition Subsidiary will be subject to Section ‎5.11 of the Agreement
and shall become a Guarantor pursuant to the terms thereof.

 

“Additional
Documents” has the meaning specified therefor in Section ‎5.12 of the Agreement.

 

“Additional
PIK Principal” has the meaning specified therefor in Section ‎2.6(d) of the Agreement.

 

“Administrative
Questionnaire” has the meaning specified therefor in Section ‎13.1(a) of the Agreement.

 

“Affected
Lender” has the meaning specified therefor in Section ‎2.13(b) of the Agreement.

 

“Affiliate”
means, as applied to any Person, any other Person who directly or indirectly controls, is controlled by, or is under direct or
indirect common control with, such Person. For purposes of this definition, “control” means the possession, directly
or indirectly through one or more intermediaries, of the power to direct or cause the direction of the management and policies
of a Person, whether through the ownership of Equity Interests, by contract, or otherwise, and the terms “controlling”
and “controlled” have meanings correlative to the foregoing; provided, that, for purposes of Section ‎6.10
of the Agreement: (a) any Person which owns directly or indirectly 10% or more of the Equity Interests having ordinary voting
power for the election of directors or other members of the governing body of a Person or 10% or more of the partnership or other
ownership interests of a Person (other than as a limited partner of such Person) shall be deemed an Affiliate of such Person,
(b) each director (or comparable manager) of a Person shall be deemed to be an Affiliate of such Person, and (c) each partnership
in which a Person is a general partner shall be deemed an Affiliate of such Person.

 

    
Schedule 1.1
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“Agent”
has the meaning specified therefor in the preamble to the Agreement.

 

“Agent-Related
Persons” means Agent, together with its Affiliates and the officers, directors, employees, attorneys, partners, trustees,
administers, managers, advisors, representative, Sub-Agents and agents of Agent, its Affiliates and any Sub-Agent.

 

“Agent’s
Account” means the Deposit Account of Agent identified on Schedule A-1 to the Agreement (or such other Deposit
Account of Agent that has been designated as such, in writing, by Agent to Borrower and the Lenders).

 

“Agent’s
Liens” means the Liens granted by Borrower or its Subsidiaries to Agent under the Loan Documents and securing the Obligations.

 

“Agreement”
means the Credit Agreement to which this Schedule 1.1 is attached.

 

“Anti-Terrorism
Laws” means any laws of the United States relating to terrorism or money laundering, including Executive Order No. 13224
(effective September 24, 2001), the PATRIOT Act, the laws comprising or implementing the Bank Secrecy Act, and the laws administered
by OFAC.

 

“Application
Event” means the occurrence of (a) a failure by Borrower to repay all of the Obligations in full on the Maturity Date,
or (b) an Event of Default and the election by Agent or the Required Lenders to accelerate all or any part of the Obligations
pursuant to Section ‎9.1 of the Agreement, or to require that payments and proceeds of Collateral be applied pursuant
to Section 2.4(b)(iii) of the Agreement.

 

“Asset
Sale” means any sale, lease, conveyance, license, abandonment, transfer, assignment or other disposition of any property
or assets (whether in one transaction or a series of related transactions) by Parent or any of its Subsidiaries.

 

“Assignee”
has the meaning specified therefor in Section ‎13.1(a) of the Agreement.

 

“Assignment
and Acceptance” means an Assignment and Acceptance Agreement substantially in the form of Exhibit A-1 to the
Agreement.

 

“Authorized
Person” means any one of the individuals identified on Schedule A-2 to the Agreement, as such schedule is updated
from time to time by written notice from Borrower to Agent.

 

“Availability
Period” means the period from but excluding the Closing Date to but excluding the Maturity Date.

 

“Bank
Product” means any one or more of the following financial products or accommodations extended to Borrower or its Subsidiaries:
(a) credit cards (including commercial cards (including so-called “purchase cards”, “procurement cards”
or “p-cards”)), (b) credit card processing services, (c) debit cards, (d) stored value cards, (e) Cash Management
Services, or (f) transactions under Hedge Agreements.

 

“Bank
Product Agreements” means those agreements entered into from time to time by Borrower or its Subsidiaries in connection
with the obtaining of any of the Bank Products.

 

    
Schedule 1.1
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“Bankruptcy
Code” means title 11 of the United States Code, as in effect from time to time.

 

“Benefit
Plan” means a “defined benefit plan” (as defined in Section 3(35) of ERISA) subject to Title IV of ERISA
for which any Loan Party, any of their respective Subsidiaries or any of their respective ERISA Affiliates has been an “employer”
(as defined in Section 3(5) of ERISA) within the past six years.

 

“Board
of Directors” means, as to any Person, the board of directors (or comparable managers) of such Person, or any committee
thereof duly authorized to act on behalf of the board of directors (or comparable managers).

 

“Board
of Governors” means the Board of Governors of the Federal Reserve System of the United States (or any successor).

 

“Borrower”
has the meaning specified therefor in the preamble to the Agreement. The Borrower is expected to be converted after the Closing
Date to a designated activity company incorporated under the laws of the Republic of Ireland and in connection therewith, renamed
as Pernix Ireland Pain Designated Activity Company.

 

“Borrower
Materials” has the meaning specified therefor in Section ‎17.9(c) of the Agreement.

 

“Borrowing”
means a borrowing consisting of Loans made on the same day by the Lenders (or Agent on behalf thereof).

 

“Business
Day” means any day that is not a Saturday, Sunday, or other day on which banks are authorized or required to close in
the state of New York.

 

“Capitalized
Lease Obligation” means that portion of the obligations under a Capital Lease that is required to be capitalized in
accordance with GAAP.

 

“Capital
Lease” means a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP.

 

“Cash
Equivalents” means (a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States
or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one
(1) year from the date of acquisition thereof, (b) marketable direct obligations issued or fully guaranteed by any state of the
United States or any political subdivision of any such state or any public instrumentality thereof maturing within one (1) year
from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either
Standard & Poor’s Rating Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”),
(c) commercial paper maturing no more than 270 days from the date of creation thereof and, at the time of acquisition, having
a rating of at least A-1 from S&P or at least P-1 from Moody’s, (d) certificates of deposit, time deposits, overnight
bank deposits or bankers’ acceptances maturing within one (1) year from the date of acquisition thereof issued by any bank
organized under the laws of the United States or any state thereof or the District of Columbia or any United States branch of
a foreign bank having at the date of acquisition thereof combined capital and surplus of not less than $1,000,000,000, (e) Deposit
Accounts maintained with (i) any bank that satisfies the criteria described in clause (d) above, or (ii) any other bank

 

    
Schedule 1.1
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organized
under the laws of the United States or any state thereof so long as the full amount maintained with any such other bank is insured
by the Federal Deposit Insurance Corporation, (f) repurchase obligations of any commercial bank satisfying the requirements of
clause (d) of this definition or recognized securities dealer having combined capital and surplus of not less than $1,000,000,000,
having a term of not more than seven days, with respect to securities satisfying the criteria in clauses (a) or (d) above, (g)
debt securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued
by any commercial bank satisfying the criteria described in clause (d) above, and (h) Investments in money market funds substantially
all of whose assets are invested in the types of assets described in clauses (a) through (g) above.

 

“Cash
Interest” has the meaning specified therefor in Section ‎2.6(d) of the Agreement.

 

“Cash
Management Services” means any cash management or related services including treasury, depository, return items, overdraft,
controlled disbursement, merchant store value cards, e-payables services, electronic funds transfer, interstate depository network,
automatic clearing house transfer (including the Automated Clearing House processing of electronic funds transfers through the
direct Federal Reserve Fedline system) and other cash management arrangements.

 

“Change
in Control” means that:

 

(a)
any Person or two or more Persons, in each case, other than the Permitted Holders, acting in concert, shall have acquired beneficial
ownership, directly or indirectly, of Equity Interests of Parent (or other securities convertible into such Equity Interests)
representing 49% or more of the combined voting power of all Equity Interests of Parent entitled (without regard to the occurrence
of any contingency) to vote for the election of members of the Board of Directors of Parent;

 

(b)
any Person or two or more Persons, in each case, other than the Permitted Holders, acting in concert, shall have acquired by contract
or otherwise, or shall have entered into a contract or arrangement that, upon consummation thereof, will result in its or their
acquisition of the power to exercise, directly or indirectly, a controlling influence over the management or policies of Parent
or control over the Equity Interests of such Person entitled to vote for members of the Board of Directors of Parent on a fully-diluted
basis (and taking into account all such Equity Interests that such Person or group has the right to acquire pursuant to any option
right) representing 49% or more of the combined voting power of such Equity Interests;

 

(c)
during any period of 24 consecutive months commencing on or after the Closing Date, the occurrence of a change in the composition
of the Board of Directors of Parent such that a majority of the members of such Board of Directors are not Continuing Directors;

 

(d)
Parent fails to own and control, directly or indirectly, 100% of the Equity Interests of Borrower;

 

(e)
Borrower fails to own and control, directly or indirectly, 100% of the Equity Interests of each other Loan Party; or

 

(f)
the occurrence of any “Change in Control” or “Fundamental Change” as defined in the 2015 Note Purchase
Documents, the 2017 Note Purchase Documents, the Treximet Note Purchase Documents, the ABL Loan Documents or any other Material
Debt Documents.

 

    
Schedule 1.1
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“Change
in Law” means the occurrence after the date of the Agreement of: (a) the adoption or effectiveness of any law, rule,
regulation, judicial ruling, judgment, directive or treaty, (b) any change in any law, rule, regulation, judicial ruling, judgment,
directive or treaty or in the administration, interpretation, implementation or application by any Governmental Authority of any
law, rule, regulation, guideline, directive or treaty, or (c) the making or issuance by any Governmental Authority of any request,
rule, guideline or directive, whether or not having the force of law; provided that notwithstanding anything in the Agreement
to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements
or directives thereunder or issued in connection therewith or in implementation thereof and (ii) all requests, rules, guidelines,
requirements or directives concerning capital adequacy promulgated by the Bank for International Settlements, the Basel Committee
on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities shall, in
each case, be deemed to be a “Change in Law,” regardless of the date enacted, adopted, implemented or issued.

 

“Claim”
has the meaning specified therefor in Section ‎11 of the Agreement.

 

“Closing
Date” means July 21, 2017.

 

“Closing
Date Loan” has the meaning specified therefore in Section ‎2.1 of the Agreement.

 

“CMS”
means The Centers for Medicare and Medicaid Services of the United States Department of Health and Human Services, and any Governmental
Authority successor thereto.

 

“Code”
means the New York Uniform Commercial Code, as in effect from time to time; provided, however, that in the event that, by reason
of mandatory provisions of law, any or all of the perfection or priority of, or remedies with respect to, any Liens on any Collateral
is governed by the Uniform Commercial Code (or similar code or statute) as enacted and in effect in a jurisdiction other than
the State of New York, the term “Code” shall mean the Uniform Commercial Code (or similar code or statute) as enacted
and in effect in such other jurisdiction solely for purposes of the provisions hereof relating to such perfection, priority or
remedies.

 

“Collateral”
means all assets and interests in assets and proceeds thereof now owned or hereafter acquired by Borrower or its Subsidiaries
in or upon which a Lien is granted by such Person in favor of Agent or the Lenders under any of the Loan Documents.

 

“Commitment”
means, with respect to each Lender, the commitment of such Lender to make Loans hereunder, in each case as such Dollar amounts
are set forth beside such Lender’s name under the applicable heading on Schedule C-1 to the Agreement or in the Assignment
and Acceptance pursuant to which such Lender became a Lender under the Agreement, as such amounts may be reduced or increased
from time to time pursuant to assignments made in accordance with the provisions of Section ‎13.1 of the Agreement.

 

“Compliance
Certificate” means a certificate substantially in the form of Exhibit C-1 to the Agreement delivered by the chief
financial officer or principal accounting officer of Borrower to Agent.

 

“Confidential
Information” has the meaning specified therefor in Section ‎17.9(a) of the Agreement.

 

    
Schedule 1.1
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“Contingent
Obligation” means, with respect to any Person, any direct or indirect liability of such Person: (a) with respect to
any Indebtedness of another Person (a “Third Party Obligation”) if the purpose or intent of such Person incurring
such liability, or the effect thereof, is to provide assurance to the obligee of such Third Party Obligation that such Third Party
Obligation will be paid or discharged, or that any agreement relating thereto will be complied with, or that any holder of such
Third Party Obligation will be protected, in whole or in part, against loss with respect thereto; (b) with respect to any
undrawn portion of any letter of credit issued for the account of such Person or as to which such Person is otherwise liable for
the reimbursement of any drawing; (c) to make take-or-pay or similar payments if required regardless of nonperformance by
any other party or parties to an agreement; or (d) for any obligations of another Person pursuant to any guarantee or pursuant
to any agreement to purchase, repurchase or otherwise acquire any obligation or any property constituting security therefor, to
provide funds for the payment or discharge of such obligation or to preserve the solvency, financial condition or level of income
of another Person. The amount of any Contingent Obligation shall be equal to the amount of the obligation so guaranteed or otherwise
supported or, if not a fixed and determinable amount, the maximum amount so guaranteed or otherwise supported.

 

“Continuing
Directors” means (a) any member of the Board of Directors who was a director (or comparable manager) of Parent on the
Closing Date, and (b) any individual who becomes a member of the Board of Directors of Parent after the Closing Date if such individual
was approved, appointed or nominated for election to the Board of Directors of Parent by a majority of the Continuing Directors.

 

“Copyrights”
means any and all rights in any works of authorship, including (a) copyrights and moral rights, (b) copyright registrations and
recordings thereof and all applications in connection therewith including those listed on Schedule 4.5 to the Agreement,
(c) income, license fees, royalties, damages, and payments now and hereafter due or payable under and with respect thereto, including
payments under all licenses entered into in connection therewith and damages and payments for past, present, or future infringements
thereof, (e) the right to sue for past, present, and future infringements thereof, and (d) all rights corresponding thereto throughout
the world.

 

“Core
Assets” means the Silenor Assets and the Generics Assets.

 

“Default”
means an event, condition, or default that, with the giving of notice, the passage of time, or both, would be an Event of Default.

 

“Defaulting
Lender” means any Lender that (a) has failed to fund any amounts required to be funded by it under the Agreement on
the date that it is required to do so under the Agreement, (b) notified Borrower, Agent, or any Lender in writing that it does
not intend to comply with all or any portion of its funding obligations under the Agreement, (c) has made a public statement to
the effect that it does not intend to comply with its funding obligations under the Agreement or under other agreements generally
(as reasonably determined by Agent) under which it has committed to extend credit, (d) failed, within one (1) Business Day after
written request by Agent, to confirm that it will comply with the terms of the Agreement relating to its obligations to fund any
amounts required to be funded by it under the Agreement, (e) otherwise failed to pay over to Agent or any other Lender any other
amount required to be paid by it under the Agreement on the date that it is required to do so under the Agreement, unless the
subject of a good faith dispute, or (f) (i) becomes or is insolvent or has a parent company that has become or is insolvent or
(ii) becomes the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, or custodian or
appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any
such proceeding or appointment or has a

 

    
Schedule 1.1
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parent company
that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, or custodian
appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any
such proceeding or appointment.

 

“Defaulting
Lender Rate” means the interest rate applicable to the Loan on which such interest accrues plus (ii) 2.00% per
annum.

 

“Deposit
Account” means any deposit account (as that term is defined in the Code).

 

“Designated
Account” means the Deposit Account of Borrower identified on Schedule D-1 to the Agreement (or such other Deposit
Account of Borrower located at Designated Account Bank that has been designated as such, in writing, by Borrower to Agent).

 

“DESI
Program Products” means Products subject to regulation under the FDA’s Drug Efficacy Study Implementation program.

 

“Designated
Account Bank” has the meaning specified therefor in Schedule D-1 to the Agreement (or such other bank that is
located within the United States that has been designated as such, in writing, by Borrower to Agent).

 

“Disposition
Threshold” means the Net Cash Proceeds received from one or more Asset Sales or Non-Exclusive Licenses in an aggregate
amount of up to $1,500,000. For the avoidance of doubt, such amount shall be cumulative, shall not reset and shall apply to any
Asset Sale or Non-Exclusive License.

 

“Disqualified
Equity Interests” shall mean any Equity Interest that, by its terms (or by the terms of any security or other Equity
Interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures
or is mandatorily redeemable (other than solely for Qualified Equity Interests), pursuant to a sinking fund obligation or otherwise
(except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a
change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that
are accrued and payable and the termination of the Commitments), (b) is redeemable at the option of the holder thereof (other
than solely for Qualified Equity Interests), in whole or in part, (c) provides for the scheduled payments of dividends in cash,
or (d) is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified
Equity Interests, in each case, prior to the date that is 180 days after the Maturity Date.

 

“Dollars”
or “$” means United States dollars.

 

“Earn-Outs”
shall mean unsecured liabilities of a Loan Party arising under an agreement to make any deferred payment as a part of the Purchase
Price for a Permitted Acquisition, including milestone payments, earn-out payments, performance bonuses or consulting payments
in any related services, employment or similar agreement, in an amount that is subject to or contingent upon the revenues, income,
cash flow or profits (or the like) of the Target.

 

“EBITDA”
means, for the applicable Test Period:

 

(a)       Parent’s
consolidated net earnings (or loss),

 

minus

 

    
Schedule 1.1
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(b)       without
duplication, the sum of the following amounts of Parent for such period to the extent included in determining consolidated net
earnings (or loss) for such period:

 

(i)       any
extraordinary, unusual, or non-recurring gains,

 

(ii)       interest
income,

 

(iii)       exchange,
translation or performance gains relating to any hedging transactions or foreign currency fluctuations, and

 

(iv)       income
arising by reason of the application of ASC 805,

 

plus

 

(c)       without
duplication, the sum of the following amounts of Parent for such period to the extent included in determining consolidated net
earnings (or loss) for such period:

 

(i)       any
extraordinary, unusual, or non-recurring losses,

 

(ii)       the
aggregate interest expense determined on a consolidated basis in accordance with GAAP,

 

(iii)       tax
expense based on income, profits or capital, including federal, foreign, state, franchise and similar taxes (and for the avoidance
of doubt, specifically excluding any sales taxes or any other taxes held in trust for a Governmental Authority),

 

(iv)       depreciation
and amortization for such period,

 

(v)       with
respect to any Permitted Acquisition after the Closing Date, costs, fees, charges, or expenses consisting of out-of-pocket expenses
owed by Parent or any of its Subsidiaries to any Person for services performed by such Person in connection with such Permitted
Acquisition incurred within 180 days of the consummation of such Permitted Acquisition,

 

(vi)       with
respect to any Permitted Acquisitions after the Closing Date: (1) purchase accounting adjustments, including a dollar for dollar
adjustment for that portion of revenue that would have been recorded in the relevant period had the balance of deferred revenue
(unearned income) recorded on the closing balance sheet and before application of purchase accounting not been adjusted downward
to fair value to be recorded on the opening balance sheet in accordance with GAAP purchase accounting rules; and (2) non-cash
adjustments in accordance with GAAP purchase accounting rules under FASB Statement No. 141 and EITF Issue No. 01-3, in the event
that such an adjustment is required by Parent’s independent auditors, in each case, as determined in accordance with GAAP,

 

(vii)       fees,
costs, charges and expenses, in respect of Earn-Outs incurred in connection with any Permitted Acquisition to the extent permitted
to be incurred under the Agreement that are required by the application of ASC 805 to be and are expensed by Parent and its Subsidiaries,

 

(viii)       non-cash
compensation expense (including deferred non-cash compensation expense), or other non-cash expenses or charges, arising from the
sale or issuance of Equity Interests, the granting of stock options, and the granting of stock appreciation rights and similar
arrangements (including any repricing, amendment, modification, substitution, or change of any such

 

    
Schedule 1.1
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Equity Interests,
stock option, stock appreciation rights, or similar arrangements) minus the amount of any such expenses or charges when
paid in cash to the extent not deducted in the computation of net earnings (or loss),

 

(ix)       one-time
restructuring charges incurred in the Ordinary Course of Business, reserves or expenses, deducted in the determination of net
earnings for such period,

 

(x)       non-cash
exchange, translation, or performance losses relating to any hedging transactions or foreign currency fluctuations,

 

(xi)       non-cash
gains or losses on the fair value of Hedge Agreements,

 

(xii)       non-cash
losses on sales of fixed assets or write-downs of fixed or intangible assets,

 

(xiii)       non-recurring
product launch costs, litigation costs outside of the Ordinary Course of Business and transaction costs related to the Transactions
deducted in the determination of net earnings for such period,

 

(xiv)       all
deferred financing costs written off and premium paid or other expenses incurred directly in connection with any early extinguishment
of Indebtedness and any net gain (loss) from any write-off or forgiveness of Indebtedness of Parent and its Subsidiaries deducted
in the determination of net earnings for such period,

 

(xvi)       losses
(or minus gains) from Asset Sales included in the determination of net income for such Test Period (excluding sales, expenses
or losses related to current assets), and

 

(xvii)       non-recurring
expenses incurred in connection with Permitted Acquisitions and Asset Sales deducted in the determination of net income for such
period;

 

in each
case, determined on a consolidated basis in accordance with GAAP.

 

“Environmental
Action” means any written complaint, summons, citation, notice, directive, order, claim, investigation, judgment, letter,
or other written communication, or any litigation or judicial or administrative proceeding, from or involving any Governmental
Authority or any third party, involving violations of Environmental Laws by Borrower or any Subsidiary of Borrower, or releases
of Hazardous Materials (a) from or to any assets or properties, or businesses of Borrower, any Subsidiary of Borrower, or any
of their predecessors in interest, (b) from adjoining properties or businesses to any properties of Borrower or any Subsidiary
of Borrower or (c) from or onto any facilities which received Hazardous Materials generated by Borrower, any Subsidiary of Borrower,
or any of their predecessors in interest.

 

“Environmental
Law” means any applicable federal, state, provincial, foreign or local statute, law, rule, regulation, ordinance, code,
binding and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and
in each case as amended, or any judicial or administrative interpretation thereof, including any judicial or administrative order,
consent decree or judgment, in each case, to the extent binding on Borrower or its Subsidiaries, relating to the environment,
the effect of the environment on employee health, or Hazardous Materials, in each case as amended from time to time.

 

    
Schedule 1.1
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“Environmental
Liabilities” means all liabilities, monetary obligations, losses, damages, costs and expenses (including all reasonable
fees, disbursements and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines,
penalties, sanctions, and interest incurred as a result of any claim or demand, or Remedial Action required, by any Governmental
Authority or any third party, and which relate to any Environmental Action.

 

“Environmental
Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities.

 

“Equipment”
means equipment (as that term is defined in the Code).

 

“Equity
Interest” means, with respect to a Person, all of the shares, options, warrants, interests, participations, rights to
purchase, or other equivalents (regardless of how designated) of or in such Person, whether voting or nonvoting, including capital
stock (or other ownership or profit interests or units), preferred stock, or any other “equity security” (as such
term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act); provided that
“Equity Interests” shall not include any debt securities convertible into or exchangeable for any securities otherwise
constituting Equity Interests pursuant to this definition.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and any and all rules or regulations promulgated from time
to time thereunder, and any successor statute thereto.

 

“ERISA
Affiliate” means (a) any Person subject to ERISA whose employees are treated as employed by the same employer as the
employees of any Loan Party or any of their respective Subsidiaries under IRC Section 414(b), (b) any trade or business subject
to ERISA whose employees are treated as employed by the same employer as the employees of any Loan Party or their respective Subsidiaries
under IRC Section 414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any organization subject
to ERISA that is a member of an affiliated service group of which any Loan Party or any of their respective Subsidiaries is a
member under IRC Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any Person subject
to ERISA that is a party to an arrangement with any Loan Party or any of their respective Subsidiaries and whose employees are
aggregated with the employees of any Loan Party or any of their respective Subsidiaries under IRC Section 414(o).

 

“Event
of Default” has the meaning specified therefor in Section ‎8 of the Agreement.

 

“Excess
Proceeds” means the aggregate Net Cash Proceeds received by the Parent or any of its Subsidiaries from one or more Non-Exclusive
Licenses in excess of the Disposition Threshold.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as in effect from time to time, and the rules and regulations promulgated
thereunder.

 

“Excluded
Taxes” means (i) any tax imposed on the net income (however denominated) or net profits of any Lender or any Participant
(including any branch profits or franchise taxes), in each case imposed by the jurisdiction (or by any political subdivision or
taxing authority thereof) in which such Lender or such Participant is organized or the jurisdiction (or by any political subdivision
or taxing authority thereof) in which such Lender’s or such Participant’s principal office is located in each case
as a result of a present or former connection between such Lender or such Participant and the jurisdiction or

 

    
Schedule 1.1
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taxing authority
imposing the tax (other than any such connection arising solely from such Lender or such Participant having executed, delivered
or performed its obligations or received payment under, or enforced its rights or remedies under the Agreement or any other Loan
Document) and (ii) taxes resulting from a Lender’s or a Participant’s failure to comply with the requirements of Section
‎16.2 of the Agreement, (iii) any United States federal withholding taxes that would be imposed on amounts payable to
a Non-U.S. Lender based upon the law (and the applicable withholding rate) in effect at the time such Non-U.S. Lender becomes
a party to the Agreement (or designates a new lending office), excluding any amount that such Non-U.S. Lender (or its assignor,
if any) was previously entitled to receive pursuant to Section ‎16.1 of the Agreement with respect to such withholding
tax at the time such Non-U.S. Lender becomes a party to the Agreement (or designates a new lending office) and (iv) any United
States federal withholding taxes imposed under FATCA.

 

“fair
market value” means, at the time of any given transaction, with respect to any asset or property, the price (after taking
into account any liabilities related to such asset or property) that could be negotiated in an arm’s length transaction,
for cash, between a willing seller and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete
the transaction

 

“FATCA”
means Sections 1471 through 1474 of the IRC, as of the date of this Agreement (or any amended or successor version that is substantively
comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations thereof,
including any applicable intergovernmental agreement with respect thereto.

 

“FDA”
means the U.S. Food and Drug Administration and any Governmental Authority successor thereto.

 

“Funding
Date” means the date on which a Borrowing occurs.

 

“GAAP”
means generally accepted accounting principles as in effect from time to time in the United States, consistently applied.

 

“Generics
Assets” means the products listed on Schedule G-1 to the Agreement.

 

“Glaxo
LLC” means GlaxoSmithKline, LLC.

 

“Governing
Documents” means, with respect to any Person, the certificate or articles of incorporation, constitution, by-laws, or
other organizational documents of such Person.

 

“Government
Drug Rebate Program” means, collectively, the Medicaid Drug Rebate Program with CMS and any individual state drug rebate
program administered by any State.

 

“Governmental
Authority” means the government of any nation or any political subdivision thereof, whether at the national, state,
territorial, provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central
bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of,
or pertaining to, government (including any supra-national bodies such as the European Union or the European Central Bank). The
term “Governmental Authority” shall further include any institutional review board, ethics committee, data monitoring
committee, or other committee or entity with defined authority to oversee Regulatory Matters or any agency, branch or other governmental
body charged with the responsibility and/or vested with the authority to administer and/or enforce any Health Care Laws.

 

    
Schedule 1.1
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“GSK”
means, collectively, Glaxo Group Limited, Glaxo LLC, GlaxoSmithKline Intellectual Property Holdings Limited and GlaxoSmithKline
Intellectual Property Management Limited.

 

“Guarantee”
means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or other obligation
of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise,
of such Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation
of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise) or (ii) entered into
for purposes of assuring in any other manner the obligee of such Indebtedness or other obligation of the payment thereof or to
protect such obligee against loss in respect thereof, in whole or in part; provided, that the term “Guarantee” does
not include endorsements for collection or deposit in the Ordinary Course of Business. The term “Guarantee” used as
a verb has a corresponding meaning.

 

“Guarantor”
means each Person that becomes a guarantor after the Closing Date pursuant to Section ‎5.11 of the Agreement.

 

“Hazardous
Materials” means (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws
or regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic
substances,” or any other formulation intended to define, list, or classify substances by reason of deleterious properties
such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil,
petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids, produced waters,
and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources,
(c) any flammable substances or explosives or any radioactive materials, and (d) asbestos in any form or electrical equipment
that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million.

 

“Health
Care Laws” means all Requirements of Law relating to (a) fraud and abuse (including the following statutes, as amended,
modified or supplemented from time to time and any successor statutes thereto and regulations promulgated from time to time thereunder:
the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)); the civil False Claims Act (31 U.S.C. § 3729 et seq.);
and Sections 1320a-7 and 1320a-7a and 1320a-7b of Title 42 of the United States Code); (b) the Medicare Prescription Drug, Improvement,
and Modernization Act of 2003 (Pub. L. No. 108-173)); (c) any Government Drug Rebate Program, (d) all statutes and regulations
administered by the FDA or any comparable Governmental Authority, including but not limited to the Food, Drug, and Cosmetic Act
(21 U.S.C. § 301 et seq.); (e) the Physician Payments Sunshine Act; (f) the licensure or regulation of healthcare providers,
suppliers, professionals, facilities or payors; (g) patient health care; (h) quality, safety certification and accreditation standards
and requirements; (i) HIPAA; (j) certificates of operations and authority; (k) laws regulating the provision of free or discounted
care or services; and (l) any and all other applicable federal, state or local health care laws, rules, codes, statutes, regulations,
manuals, orders, ordinances, statutes, policies, professional or ethical rules, administrative guidance and requirements, as the
same may be amended, modified or supplemented from time to time, and any successor statute thereto.

 

“Health
Care Permits” means any and all permits, licenses, authorizations, certificates, certificates of need, as well as accreditations
and plans of third-party accreditation agencies (such as the Joint Commission for Accreditation of Healthcare Organizations) that
are (a) necessary to enable any

 

    
Schedule 1.1
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Loan Party
to continue to conduct its business as it is conducted on the Closing Date, or (b) required under any Health Care Law or the business
affairs, practices, licensing or reimbursement entitlements of any Loan Party.

 

“Health
Care Proceeding” means any inquiries, investigations, probes, audits, hearings, litigation or proceedings (in each case,
whether civil, criminal, administrative or investigative) concerning any alleged or actual non-compliance by any Loan Party with
any Health Care Laws or the requirements of any Health Care Permit.

 

“Hedge
Agreement” means a “swap agreement” as that term is defined in Section 101(53B)(A) of the Bankruptcy Code,
that is intended to provide protection against fluctuations in interest, commodity prices or currency exchange rates and not for
speculative purposes.

 

“HIPAA”
means (a) the Health Insurance Portability and Accountability Act of 1996; (b) the Health Information Technology for Economic
and Clinical Health Act (Title XIII of the American Recovery and Reinvestment Act of 2009); and (c) any state and local laws regulating
the privacy and/or security of individually identifiable information, in each case as the same may be amended, modified or supplemented
from time to time, any successor statutes thereto, and any and all rules or regulations promulgated from time to time thereunder.

 

“Incremental
Agreement” has the meaning specified therefor in Section ‎2.14 of the Agreement.

 

“Incremental
Date” has the meaning specified therefor in Section ‎2.14 of the Agreement.

 

“Incremental
Facility” has the meaning specified therefor in Section ‎2.14 of the Agreement.

 

“Incremental
Loan” has the meaning specified therefor in Section 2.14 of the Agreement.

 

“Indebtedness”
as to any Person means (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by
bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations in respect of letters of credit,
bankers acceptances, or other financial products, (c) all obligations of such Person as a lessee under Capital Leases, (d) all
obligations or liabilities of others secured by a Lien on any asset of such Person, irrespective of whether such obligation or
liability is assumed, (e) all obligations of such Person to pay the deferred purchase price of assets or services due more than
180 days after such assets are acquired or such services are contemplated (other than trade payables incurred in the Ordinary
Course of Business and repayable in accordance with customary trade practices), (f) all monetary obligations of such Person owing
under Hedge Agreements (which amount shall be calculated based on the amount that would be payable by such Person if the Hedge
Agreement were terminated on the date of determination), (g) any Disqualified Equity Interests of such Person, (h) solely for
purposes of calculating the Total Leverage Ratio, “earnouts” and similar payment obligations (but only at such time
and to the extent such obligation is required to be included as a liability on the balance sheet of such Person in accordance
with GAAP of such Person arising out of purchase and sale contracts), (i) any obligation of such Person guaranteeing or intended
to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation
of any other Person that constitutes Indebtedness under any of clauses (a) through (h) above and (j) off-balance sheet liabilities,
liabilities under any ERISA plan that is subject to Section 412 of the Code or Title IV of ERISA and/or Multiemployer Plan liabilities
of such Person. For

 

    
Schedule 1.1
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purposes
of this definition, (i) the amount of any Indebtedness represented by a guaranty or other similar instrument shall be the lesser
of the principal amount of the obligations guaranteed and still outstanding and the maximum amount for which the guaranteeing
Person may be liable pursuant to the terms of the instrument embodying such Indebtedness, and (ii) the amount of any Indebtedness
which is limited or is non-recourse to a Person or for which recourse is limited to an identified asset shall be valued at the
lesser of (A) if applicable, the limited amount of such obligations, and (B) if applicable, the fair market value of such assets
securing such obligation.

 

“Indemnified
Liabilities” has the meaning specified therefor in Section ‎10.3 of the Agreement.

 

“Indemnified
Person” has the meaning specified therefor in Section ‎10.3 of the Agreement.

 

“Indemnified
Taxes” means any Taxes, other than Excluded Taxes, imposed on or with respect to any payments made by or on account
of any obligation of Borrower under any Loan Document.

 

“Initial
Lenders” means, collectively, at any time of determination, (a) any Person identified as a Lender on the signature pages
to the Agreement as of the Closing Date (not including any of their respective assignees that become Lenders from time to time
after the Closing Date), other than any such Person who is no longer party to the Agreement as a Lender at the relevant time of
determination, (b) any other Lender that, at the relevant time of determination, is an Affiliate of any Person identified as a
Lender on the signature pages to the Agreement as of the Closing Date, (c) any other Lender that is engaged in making, purchasing,
holding or investing in bank loans and similar extensions of credit in the ordinary course and that is administered, advised or
managed by (i) any Person referred to in clause (a) or (b) above or (ii) an entity or an Affiliate of an entity that administers,
advises or manages any Person referred to in clause (a) or (b) above, and (d) any fund or investment vehicle that is managed by
the same entity that manages a Person identified as a Lender on the signature pages to the Agreement as of the Closing Date.

 

“Insolvency
Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under
any other state or federal or other applicable bankruptcy or insolvency law, assignments for the benefit of creditors, formal
or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, examinership,
arrangement, or other similar relief, or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of such Person or any substantial part of its properties.

 

“Intellectual
Property” means any and all Patents, Copyrights, Trademarks, rights under Patent Licenses, trade secrets, know-how,
inventions (whether or not patentable), algorithms, software programs (including source code and object code), processes, product
designs, industrial designs, blueprints, drawings, data, customer lists, URLs and domain names, specifications, documentations,
reports, catalogs, literature, and any other forms of technology or proprietary information of any kind, including all rights
therein and all applications for registration or registrations thereof.

 

“Intercompany
Subordination Agreement” means an intercompany subordination agreement, dated as of even date with the Agreement, executed
and delivered by Borrower, each of its Subsidiaries, and Agent, the form and substance of which is reasonably satisfactory to
the Required Lenders.

 

    
Schedule 1.1
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“Interest
Election” has the meaning specified therefor in Section ‎2.6(d) of the Agreement.

 

“Interest
Payment Date” means with respect to any Loan, the last day of the Interest Period applicable to the Borrowing of which
such Loan is a part and the Maturity Date.

 

“Interest
Period” means with respect to any Borrowing, the period commencing on the date of such Borrowing and ending on each
of the numerically corresponding days in each of the calendar months that are three months thereafter or, if earlier, the Maturity
Date; provided that if any Interest Period would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day.

 

“Inventory”
means inventory (as that term is defined in the Code).

 

“Investment”
means, with respect to any Person, any investment by such Person in any other Person (including Affiliates) in the form of
loans, guarantees, advances, capital contributions (excluding (a) commission, travel, and similar advances to officers and
employees of such Person made in the Ordinary Course of Business, to the extent such advances would not be required to be
classified as investments on a balance sheet prepared in accordance with GAAP, and (b) bona fide accounts receivable
arising in the Ordinary Course of Business), or acquisitions of Indebtedness, Equity Interests or all or substantially all of
the assets of such other Person (or of any division or business line of such other Person), and any other items that are or
would be classified as investments on a balance sheet prepared in accordance with GAAP. The amount of any Investment shall be
the original cost of such Investment plus the cost of all additions thereto, without any adjustment for increases or
decreases in value, or write-ups, write-downs, or write-offs with respect to such Investment.

 

“IRC”
means the Internal Revenue Code of 1986, as in effect from time to time.

 

“Latest
Maturity Date” shall mean, at any date of determination, the latest Maturity Date applicable to any Loan or Commitment
hereunder at such time.

 

“Lender”
has the meaning set forth in the preamble to the Agreement and shall also include any other Person made a party to the Agreement
pursuant to the provisions of Section ‎13.1 of the Agreement and “Lenders” means each of the Lenders
or any one or more of them.

 

“Lender
Group” means each of the Lenders and Agent, or any one or more of them.

 

“Lender
Group Expenses” means all (a) out-of-pocket costs or expenses (including taxes and insurance premiums) required to be
paid by Borrower or its Subsidiaries under any of the Loan Documents that are paid, advanced, or incurred by the Lender Group,
(b) documented out-of-pocket fees or charges paid or incurred by Agent in connection with the Lender Group’s transactions
with Borrower and its Subsidiaries under any of the Loan Documents, including, photocopying, notarization, couriers and messengers,
telecommunication, public record searches, filing fees, recording fees, publication, real estate surveys and real estate title
policies and endorsements and environmental audits, (c) Agent’s customary fees and charges imposed or incurred in connection
with any background checks or OFAC/PEP searches related to Borrower or its Subsidiaries, (d) Agent’s customary fees and
charges (as adjusted from time to time) with respect to the disbursement of funds (or the receipt of funds) to or for the account
of Borrower (whether by wire transfer or otherwise), together with any out-of-pocket costs and expenses incurred in connection
therewith, (e) customary charges imposed or incurred by Agent resulting from the dishonor of checks payable by or to any Loan
Party, (f) reasonable documented out-of-pocket

 

    
Schedule 1.1
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costs and
expenses paid or incurred by the Lender Group to correct any default or enforce any provision of the Loan Documents, or during
the continuance of an Event of Default, in gaining possession of, maintaining, handling, preserving, storing, shipping, selling,
preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated,
(g) Agent’s reasonable costs and expenses (including reasonable documented attorneys’ fees and expenses) relative
to third party claims or any other lawsuit or adverse proceeding paid or incurred, whether in enforcing or defending the Loan
Documents or otherwise in connection with the transactions contemplated by the Loan Documents, Agent’s Liens in and to the
Collateral, or the Lender Group’s relationship with Borrower or any of its Subsidiaries, (h) Agent’s reasonable documented
costs and expenses (including reasonable documented attorneys’ fees and due diligence expenses) incurred in advising, structuring,
drafting, reviewing, administering (including travel, meals, and lodging), or amending, waiving, or modifying the Loan Documents,
and (i) Agent’s and each Lender’s reasonable documented costs and expenses (including reasonable documented attorneys,
accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing (including attorneys, accountants,
consultants, and other advisors fees and expenses incurred in connection with a “workout,” a “restructuring,”
or an Insolvency Proceeding concerning Borrower or any of its Subsidiaries or in exercising rights or remedies under the Loan
Documents), or defending the Loan Documents, irrespective of whether a lawsuit or other adverse proceeding is brought, or in taking
any enforcement action or any Remedial Action with respect to the Collateral.

 

“Lender
Group Representatives” has the meaning specified therefor in Section ‎17.9 of the Agreement.

 

“Lender-Related
Person” means, with respect to any Lender, such Lender, together with such Lender’s Affiliates and the officers,
directors, employees, partners, trustees, administers, managers, advisors, representative, attorneys, and agents of such Lender,
such Lender’s manager and such Lender’s Affiliates.

 

“Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement, encumbrance, easement, lien
(statutory or other), security interest, or other security arrangement and any other preference, priority, or preferential arrangement
of any kind or nature whatsoever, including any conditional sale contract or other title retention agreement, the interest of
a lessor under a Capital Lease and any synthetic or other financing lease having substantially the same economic effect as any
of the foregoing.

 

“Loan”
shall mean the Closing Date Loan, any Subsequent Loan and any Incremental Loan, in each case made (or to be made) hereunder.

 

“Loan
Account” has the meaning specified therefor in Section ‎2.9 of the Agreement.

 

“Loan
Documents” means the Agreement, the Security Agreement, the Intercompany Subordination Agreement, any Additional Document,
any Incremental Agreement, any license or sublicense agreement granted in favor of Agent, any note or notes executed by Borrower
in connection with the Agreement and payable to any member of the Lender Group, and any other instrument or agreement entered
into, now or in the future, by Borrower or any of its Subsidiaries and any member of the Lender Group in connection with the Agreement.

 

“Loan
Party” means the Borrower or any Guarantor.

 

    
Schedule 1.1
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“Margin
Stock” means “margin stock” as defined in Regulation U of the Board of Governors as in effect from time
to time.

 

“Material
Adverse Effect” means (a) a material adverse effect in the business, operations, results of operations, assets, liabilities
or financial condition of Borrower and its Subsidiaries, taken as a whole, (b) a material impairment of Borrower’s and its
Subsidiaries ability to perform their obligations under the Loan Documents to which they are parties or of the Lender Group’s
ability to enforce the Obligations or realize upon the Collateral (other than as a result of as a result of an action taken or
not taken that is solely in the control of Agent), or (c) a material impairment of the enforceability or priority of Agent’s
Liens with respect to all or a material portion of the Collateral.

 

“Material
Contract” means (a) each contract or agreement related to Core Assets or Zohydro Assets to which any Loan Party or any
of its Subsidiaries is a party involving aggregate consideration payable to or by such Loan Party or such Subsidiary of $750,000
or more (other than purchase orders in the ordinary course of the business of such Loan Party or such Subsidiary and other than
contracts that by their terms may be terminated by such Loan Party or Subsidiary in the ordinary course of its business upon less
than 60 days’ notice without penalty or premium), (b) all Patent Licenses (other than immaterial Patent Licenses), (c) any
settlement agreement to which a Loan Party or Subsidiary is a party involving an amount in excess of $750,000, (d) any agreement
with respect to rebates in excess of $750,000 provided for any Inventory of a Loan Party or Subsidiary and (e) all other contracts
or agreements, the loss of which could reasonably be expected to result in a Material Adverse Effect.

 

“Material
Debt” means the 2017 Note Purchase Debt, 2015 Note Purchase Debt, the Treximet Note Purchase Debt, the ABL Facility
Debt and any other Indebtedness of the Parent and/or its Subsidiaries involving an aggregate amount of $3,000,000 or more.

 

“Material
Debt Documents” means the 2017 Note Purchase Documents, 2015 Note Purchase Documents, the Treximet Note Purchase Documents
and all other agreements, documents, notes, indentures and instruments at any time executed and/or delivered by Borrower or any
other Person evidencing, governing or securing or otherwise related to any other Material Debt, as each of the foregoing may be
amended, restated, modified, supplemented, renewed, or replaced from time to time in accordance with the terms of the Agreement.

 

“Maturity
Date” means July 21, 2022; provided that the Maturity Date with respect to the Loans made pursuant to any Incremental
Facility shall mean the maturity date specified with respect thereto in the applicable Incremental Agreement.

 

“Medicaid”
means, collectively, the healthcare assistance program established by Title XIX of the Social Security Act (42 U.S.C. §§
1396 et seq.) and any statutes succeeding thereto, and all laws, rules, regulations, manuals, orders, guidelines or requirements
(whether or not having the force of law) pertaining to such program, including all state statutes and plans for medical assistance
enacted in connection with such program, in each case as the same may be amended, supplemented or otherwise modified from time
to time.

 

“Medicare”
means, collectively, the health insurance program for the aged and disabled established by Title XVIII of the Social Security
Act (42 U.S.C. §§ 1395 et seq.) and any statutes succeeding thereto, and all laws, rules, regulations, manuals, orders,
guidelines or requirements (whether or not having the force of law) pertaining to such program, in each case as the same may be
amended, supplemented or otherwise modified from time to time.

 

    
Schedule 1.1
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“Moody’s”
has the meaning specified therefor in the definition of Cash Equivalents.

 

“Multiemployer
Plan” means a multiemployer plan within the meaning of Section 4001(a)(3) of ERISA to which any Loan Party or any Subsidiary
or any of their respective ERISA Affiliates (or any Person who in the last five years was an ERISA Affiliate) is making or accruing
an obligation to make contributions or has within the preceding five plan years (as determined on the applicable date of determination)
made contributions.

 

“Net
Cash Proceeds” means, with respect to any Asset Sale or Non-Exclusive License, the proceeds of such Asset Sale or Non-Exclusive
License in the form of cash (including (i) payments in respect of deferred payment obligations to the extent corresponding to
principal, but not interest, when received in the form of cash and/or cash equivalents, and (ii) proceeds from the conversion
of other consideration received when converted to cash), net of:

 

(1)
       brokerage commissions and other fees and expenses directly related to such Asset Sale
or Non-Exclusive License, as applicable, including reasonable and customary fees and expenses of counsel, accountants and investment
bankers;

 

(2)
       provisions for taxes as a result of such Asset Sale or Non-Exclusive License, as applicable,
without regard to the consolidated results of operations of Parent and its Subsidiaries;

 

(3)
       payments required to be made to holders of minority interests in Subsidiaries as a result
of such Asset Sale or Non-Exclusive License, as applicable, or to repay Indebtedness (other than the Obligations) outstanding
at the time of such Asset Sale or Non-Exclusive License, as applicable, that is secured by a Lien on the property or assets sold,
disposed of or subject to such Non-Exclusive License, as applicable, to the extent required to be applied prior to the repayment
of the Obligations; and

 

(4)
       appropriate amounts to be provided as a reserve against liabilities associated with
such Asset Sale or Non-Exclusive License, as applicable, including pension and other post-employment benefit liabilities, liabilities
related to environmental matters and indemnification obligations associated with such Asset Sale or Non-Exclusive License, as
applicable, with any subsequent reduction of the reserve other than by payments made and charged against the reserved amount to
be deemed a receipt of cash.

 

“Non-Consenting
Lender” has the meaning specified therefor in Section ‎‎14.2(a) of the Agreement.

 

“Non-Defaulting
Lender” means each Lender other than a Defaulting Lender.

 

“Non-Exclusive
License” means the licensing on a non-exclusive basis (including co-promotion arrangements) of patents, trademarks,
copyrights, and other Intellectual Property rights in the Ordinary Course of Business that does not materially and adversely affect
the business or condition (financial or otherwise) of Parent and any of its Subsidiaries, taken as a whole.

 

“Non-U.S.
Lender” means any Lender or Participant that is not a United States person within the meaning of IRC section 7701(a)(30).

 

    
Schedule 1.1
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“Notice
of Borrowing” has the meaning specified therefor in Section ‎2.3(a) of the Agreement.

 

“Obligations”
means all loans, debts, principal, interest (including any interest that accrues after the commencement of an Insolvency Proceeding,
regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), premiums, liabilities
(including all amounts charged to the Loan Account pursuant to the Agreement), obligations (including indemnification obligations),
fees, Lender Group Expenses (including any fees or expenses that accrue after the commencement of an Insolvency Proceeding, regardless
of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), guaranties, and all covenants
and duties of any other kind and description owing by any Loan Party arising out of, under, pursuant to, in connection with, or
evidenced by the Agreement or any of the other Loan Documents and irrespective of whether for the payment of money, whether direct
or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all interest not paid
when due and all other expenses or other amounts that Borrower is required to pay or reimburse by the Loan Documents or by law
or otherwise in connection with the Loan Documents. Without limiting the generality of the foregoing, the Obligations of Borrower
under the Loan Documents include the obligation to pay (i) the principal of the Loans, (ii) interest accrued on the Loans, (iii)
Lender Group Expenses, (iv) fees payable under the Agreement or any of the other Loan Documents, and (v) indemnities and other
amounts payable by any Loan Party under any Loan Document. Any reference in the Agreement or in the Loan Documents to the Obligations
shall include all or any portion thereof and any extensions, modifications, renewals, or alterations thereof, both prior and subsequent
to any Insolvency Proceeding.

 

“OFAC”
means The Office of Foreign Assets Control of the U.S. Department of the Treasury.

 

“Ordinary
Course of Business” means, in respect of any transaction involving any Loan Party or any Subsidiary, the ordinary course
of business of such Loan Party or Subsidiary, as conducted by such Loan Party or Subsidiary in accordance with past practices.

 

“Originating
Lender” has the meaning specified therefor in Section ‎13.1(e) of the Agreement.

 

“Other
Connection Taxes” means, with respect to any Lender or Participant, Taxes imposed as a result of a present or former
connection between such Lender or Participant and the jurisdiction imposing such Tax (other than connections arising from such
Lender or Participant having executed, delivered, become a party to, performed its obligations under, received payments under,
received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or
sold or assigned an interest in any Loan or Loan Document).

 

“Parent”
means Pernix Therapeutics Holdings, Inc.

 

“Participant”
has the meaning specified therefor in Section ‎13.1(e) of the Agreement.

 

“Participant
Register” has the meaning specified therefor in Section ‎13.1(e) of the Agreement.

 

    
Schedule 1.1
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“Patent
License” means any license or distribution agreement pursuant to which Borrower or any of its Subsidiaries is granted
rights with respect to Patents for use in connection with the use, sale, manufacture, import, export and/or distribution of any
Products.

 

“Patents”
means patents and patent applications, including (a) the patents and patent applications listed on Schedule 4.5 to the
Agreement, (b) all continuations, divisionals, continuations-in-part, re-examinations, reissues, and renewals thereof and improvements
thereon, (c) all income, royalties, damages and payments now and hereafter due or payable under and with respect thereto, including
payments under all licenses entered into in connection therewith and damages and payments for past, present, or future infringements
thereof, (d) the right to sue for past, present, and future infringements thereof, and (e) all of rights corresponding thereto
throughout the world.

 

“Patriot
Act” has the meaning specified therefor in Section ‎4.13 of the Agreement.

 

“Perfection
Certificate” means a certificate in the form of Exhibit P-1 to the Agreement.

 

“Permits”
means, with respect to any Person, any permit, approval, clearance, authorization, license, registration, certificate, concession,
grant, franchise, variance or permission from, and any other contractual obligations with, any Governmental Authority, in each
case whether or not having the force of law and applicable to or binding upon such Person or any of its property or Products or
to which such Person or any of its property or Products is subject, including all Registrations and all Health Care Permits.

 

“Permitted
Acquisition” means the acquisition by any Acquisition Subsidiary (which shall be a Loan Party) of all (but not less
than all) of the Equity Interests of any Person (the “Target”) or any assets of a Person, (a) with the prior
written approval of the Required Lenders or (b) subject to the satisfaction of each of the following conditions:  (1)
such acquisition shall be consensual, shall have been approved by the Target’s Board of Directors (or comparable governing
board) and shall be consummated in accordance with the terms of the agreements and documents related thereto, and in compliance
with all applicable laws; (2) the business and assets acquired in such acquisition shall be free and clear of all Liens (other
than Permitted Liens); (3) at the time of such acquisition and after giving effect thereto, no Default or Event of Default has
occurred and is continuing or would result therefrom; (4) the business and assets acquired in such acquisition shall be of the
type engaged in or owned by the Loan Parties as of the Closing Date and any business or assets reasonably related thereto; (5)
the requirements of Sections 5.11 and ‎5.12 of the Agreement shall have been satisfied with respect to Target and its Subsidiaries
and other assets so acquired; (6) Agent shall have received notice of such acquisition, together with all information and other
diligence as it shall reasonably request, including financial information, regulatory information and copies of Patent Licenses
being acquired or granted; and (7) the Target and its Subsidiaries (if any) (other than any such Subsidiaries with immaterial
assets and liabilities) are Acceptable Entities.

 

“Permitted
Collateral Lien” means, with respect to any asset that constitutes Collateral or is required to constitute Collateral
pursuant to any Loan Document, (a) any non-consensual Permitted Lien on such asset that is senior to the Agent’s Lien on
such asset by operation of law, and (b) other than with respect to any material Intellectual Property or Zohydro Assets, any Permitted
Lien on such asset pursuant to clause (f) or (r) of the definition of “Permitted Liens”, in any such case, only to
the extent the existence of such Lien and/or the priority of such Lien over the Agent’s Lien on such asset does not violate
or contravene any other provision of the Agreement.

 

    
Schedule 1.1
 Page -23 -

     

    

“Permitted
Contingent Obligations” means Contingent Obligations (a) arising in respect of the Indebtedness under the 2017 Note
Purchase Documents; (b) resulting from endorsements for collection or deposit in the Ordinary Course of Business; (c)
pursuant to agreements outstanding on the Closing Date that do not exceed $1,000,000 individually, or $2,500,000 in the aggregate
(and including any refinancings, extensions or amendments to the indebtedness underlying such Contingent Obligations except to
the extent any such refinancing, extension or amendment increases the amount of the Contingent Obligation relating thereto);
(d) incurred in the Ordinary Course of Business with respect to surety and appeal bonds, performance bonds and other similar obligations
not to exceed $1,000,000 in the aggregate at any time outstanding; (e) arising with respect to customary indemnification
obligations in favor of purchasers in connection with dispositions of personal property assets that are Permitted Dispositions;
(f) existing or arising under any Hedge Contract, so long as there exists no Event of Default both immediately before and immediately
after giving effect to any such transaction, and provided, that such obligations are (or were) entered into by a Loan Party in
the Ordinary Course of Business for the purpose of mitigating risks associated with interest rates, commodity prices, currency,
liabilities, commitments, investments, assets, or property held or reasonably anticipated by such Person and not for purposes
of speculation; (g) that are Permitted Investments; (h) that constitute Permitted Indebtedness or are with respect to
indebtedness that constitutes Permitted Indebtedness; (i) pursuant to the Zogenix Purchase Agreement as in effect on the
date hereof or as amended so long as any amendment is not materially adverse to the interests of the Lender Group; and (j) not
permitted by clauses (a) through (i) above, not to exceed $1,000,000 in the aggregate at any time outstanding.

 

“Permitted
Dispositions” means:

 

(a)       sales,
abandonment, or other dispositions of Equipment that is substantially worn, damaged, or obsolete or no longer used or useful in
the Ordinary Course of Business and leases or subleases of Real Property not useful in the conduct of the business of Borrower
and its Subsidiaries,

 

(b)       sales
of Inventory to buyers (including without limitation, sales of inventory to Affiliates to the extent permitted pursuant to Section
‎6.10 of the Agreement) in the Ordinary Course of Business,

 

(c)       the
disposition of Cash Equivalents in the Ordinary Course of Business in a manner that is not prohibited by the terms of the Agreement,

 

(d)       the
entry into Non-Exclusive Licenses; provided that the Borrower will not, and will not permit its Subsidiaries to, enter into any
Non-Exclusive License unless the following conditions are met:

 

(i)
       the relevant Loan Party receives consideration at the time of the Non-Exclusive License
at least equal to fair market value (determined by Borrower, or, in the case of any Non-Exclusive License valued in excess of
$2,500,000, by the Board of Directors of Parent) of such Non-Exclusive License,

 

(ii)
       100% of the consideration consists of cash or Cash Equivalents (it being understood
that any deferred payment, milestone payment, royalty payment or other contingent payment in connection with any sale or licensing
of Intellectual Property, in each case, to be paid in cash or Cash Equivalents, shall constitute cash consideration for purposes
of this clause (ii)), and

 

    
Schedule 1.1
 Page -24 -

     

    

(iii)
       the Borrower shall comply with Section 2.4(d)(ii) of the Agreement in connection with
such Non-Exclusive License,

 

(e)       the
granting of Permitted Liens,

 

(f)       the
sale or discount, in each case without recourse, of accounts receivable arising in the Ordinary Course of Business, but only in
connection with the compromise or collection thereof,

 

(g)       any
involuntary loss, damage or destruction of property of Borrower or any Subsidiary,

 

(h)       any
involuntary condemnation, seizure or taking, by exercise of the power of eminent domain or otherwise, or confiscation or requisition
of use of property,

 

(i)       the
leasing or subleasing of any real or personal property of Borrower or its Subsidiaries in the Ordinary Course of Business,

 

(j)       [reserved],

 

(k)       the
lapse or abandonment of patents, trademarks, copyrights, or other Intellectual Property rights, in each case, that are not material
and in the Ordinary Course of Business and that is, in the reasonable judgment of the Borrower or Parent, no longer economically
practicable or commercially reasonable to maintain or useful in any material respect in the conduct of business of Parent and
its Subsidiaries, taken as a whole, so long as, (A) with respect to copyrights, such copyrights are not material revenue generating
copyrights and (B) such lapse or abandonment is not materially adverse to the interests of the Lender Group,

 

(l)       the
making of Restricted Payments that are expressly permitted to be made pursuant to the Agreement,

 

(m)       the
making of Permitted Investments,

 

(n)       so
long as no Event of Default has occurred and is continuing or would immediately result therefrom, transfers of assets (i) from
Borrower or any of its Subsidiaries to a Loan Party, and (ii) from any Subsidiary of Parent that is not a Loan Party to Borrower
or any Subsidiary of Borrower,

 

(o)       any
other disposition (other than a Non-Exclusive License) in a transaction or series of related transactions of assets with a fair
market value of less than $100,000,

 

(p)       sales
or dispositions to the Treximet Indenture Note Parties, and

 

(q)       sales
or dispositions of assets for which (i) the relevant Loan Party receives consideration at the time of the sale or disposition
at least equal to fair market value (determined by Borrower, or, in the case of any assets valued in excess of $2,500,000, by
the Board of Directors of Parent) of the assets or Equity Interests issued or sold or otherwise disposed of, (ii) at least 75%
of the consideration consists of cash or Cash Equivalents (it being understood that any deferred payment, milestone payment, royalty
payment or other contingent payment in connection with any sale or licensing of Intellectual Property, in each case, to be paid
in cash or Cash Equivalents, shall constitute cash

 

    
Schedule 1.1
 Page -25 -

     

    

consideration
for purposes of this clause (ii)); provided that for purposes of this clause (ii), instruments or securities received from
the purchaser that are promptly, but in any event within 90 days of the closing, converted by such Loan Party to cash, to the
extent of the cash actually so received, shall be considered cash received at closing and (iii) the Borrower shall comply with
Section 2.4(d)(ii) of the Agreement in connection with such sale or disposition.

 

“Permitted
Holders” means (a) any Person identified as a Lender on the signature pages to the Agreement as of the Closing Date
(not including any of their respective assignees that become Lenders from time to time after the Closing Date), regardless of
whether or not such Person continues to be party to the Agreement as a Lender at the relevant time of determination, (b) any Affiliate
of any Person referred to in clause (a) above, (c) any other Person (other than a natural person) that is engaged in making, purchasing,
holding or investing in bank loans and similar extensions of credit in the ordinary course and that is administered, advised or
managed by (i) any Person referred to in clause (a) or (b) above or (ii) an entity or an Affiliate of an entity that administers,
advises or manages any Person referred to in clause (a) or (b) above, (d) any fund or investment vehicle that is managed by the
same entity that manages a Person identified as a Lender on the signature pages to the Agreement as of the Closing Date..and (e)
any other Person with which one or more Persons referred to in clauses (a), (b), (c) and/or (d) above forms a “group”
(within the meaning of Section 14(d) of the Exchange Act) so long as, in the case of this clause (e), one or more Persons referred
to in clauses (a), (b), (c) and/or (d) above beneficially own, directly or indirectly, more than 50% in the aggregate of the relevant
voting stock beneficially owned by the group.

 

“Permitted
Indebtedness” means:

 

(a)       Indebtedness
evidenced by the Agreement or the other Loan Documents,

 

(b)       Indebtedness
set forth on Schedule 4.14(a) to the Agreement and any Refinancing Indebtedness in respect of such Indebtedness,

 

(c)       Permitted
Purchase Money Indebtedness incurred by a Loan Party not constituting Indebtedness in connection with a Permitted Acquisition,
mortgage financings and capital leases, in an aggregate amount for this clause (c) not to exceed $1,000,000 outstanding at any
time (whether in the form of a loan or a lease) used solely to acquire equipment or other assets used in the Ordinary Course of
Business and secured only by such equipment or other assets,

 

(d)       endorsement
of instruments or other payment items for deposit in the Ordinary Course of Business,

 

(e)       trade
accounts payable arising and paid on a timely basis and in the Ordinary Course of Business,

 

(f)       Indebtedness,
if any, arising under Hedge Agreements that are incurred for the bona fide purpose of hedging the interest rate, commodity, or
foreign currency risks associated with Borrower’s and its Subsidiaries’ operations and not for speculative purposes,

 

(g)       [reserved],

 

(h)       Permitted
Intercompany Advances;

 

    
Schedule 1.1
 Page -26 -

     

    

(i)       unsecured
Indebtedness in respect of bid, performance, appeal and surety bonds, including guarantees or obligations of the Loan Parties
with respect to letters of credit supporting such bid, performance and surety bonds or other forms of credit enhancement supporting
performance obligations under services contracts, workers’ compensation claims, self-insurance obligations, unemployment
insurance, health, disability and other employee benefits or property, casualty or liability insurance, in each case incurred
in the Ordinary Course of Business,

 

(j)       unsecured
Indebtedness arising from agreements to provide for indemnification, adjustment of purchase price, or other similar obligations,
in each case, incurred in connection with Permitted Dispositions subject to the limits set forth in the definition thereof,

 

(k)       Acquired
Indebtedness and Acquisition Indebtedness; provided that the aggregate outstanding amount of all such Indebtedness permitted
pursuant to this clause (k) does not exceed $10,000,000,

 

(l)       unsecured
Indebtedness arising from agreements to provide for milestones and royalty payments, to the extent such obligations are considered
Indebtedness under GAAP, incurred in connection with a Permitted Acquisition and subject to the limits set forth in the definition
of “Permitted Acquisition”; provided that the only obligor in respect of such Indebtedness is the relevant Acquisition
Subsidiary that is the acquirer or investor, as applicable, in such Permitted Acquisition,

 

(m)       unsecured
Indebtedness arising from agreements to provide for indemnification, adjustment of purchase price, Earn-Outs or other similar
obligations to which the seller may become entitled, in each case, incurred in connection with a Permitted Acquisition or any
other Investment permitted hereby, to the extent such payment is determined by a final closing balance sheet, working capital
calculation or other similar method or such payment depends on the performance of such business or assets after the closing; provided,
that, (1) at the time of closing, the amount of any such payment is not determinable or is of a contingent nature and, to the
extent such payment thereafter becomes fixed and finally determined, the amount is paid within 60 days thereafter and (2) the
only obligor in respect of such Indebtedness is the relevant Acquisition Subsidiary that is the acquirer or investor, as applicable,
in such Permitted Acquisition or permitted Investment,

 

(n)       Indebtedness
composing Permitted Investments,

 

(o)       unsecured
Indebtedness incurred in respect of netting services, overdraft protection, and other like services, in each case, incurred in
the Ordinary Course of Business,

 

(p)       [reserved],

 

(q)       Subordinated
Indebtedness incurred by a Loan Party, the aggregate outstanding amount of which does not exceed $25,000,000, issued in exchange
for the 2015 Note Purchase Debt (including any Refinancing Indebtedness in respect of such Indebtedness; provided that
such Refinancing Indebtedness is convertible into Equity Interests),

 

(r)       Indebtedness
evidenced by the ABL Loan Documents,

 

(s)       reimbursement
obligations in connection with any letters of credit in an aggregate outstanding amount not to exceed $500,000; provided,
that the amount available for borrowing under the ABL Credit Agreement shall be reduced in an amount equal to the sum of the maximum

 

    
Schedule 1.1
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amount
available to be drawn from time to time under any such letter of credit and any unreimbursed obligations in respect of any drawing
under any such letter of credit,

 

(t)       Indebtedness
evidenced by the Zohydro Intercompany Note,

 

(u)       the
2017 Note Purchase Debt in an original principal amount not to exceed $36,242,500 plus accrued interest on the Notes (as defined
in the 2017 Indenture) and any Refinancing Indebtedness in respect of such Indebtedness,

 

(v)       any
other Indebtedness incurred if at the time of incurrence of such Indebtedness, on a Pro Forma Basis, (i) the Total Leverage Ratio
does not exceed 2.00:1.00, (ii) no Default or Event of Default has occurred and is continuing or would result therefrom, (iii)
such Indebtedness is only guaranteed by the Loan Parties, (iv) such Indebtedness is not subject to scheduled amortization, redemption,
sinking fund or similar payment greater than 5% per annum unless otherwise agreed in writing by Agent, (v) such Indebtedness does
not have a final maturity, in each case, on or before the date that is six months after the Maturity Date, (vi) such Indebtedness
that does not include any financial covenants or any covenant, default or agreement that is more restrictive or onerous on any
Loan Party in any material respect than any comparable covenant or default in the Agreement unless otherwise agreed in writing
by the Required Lenders, and (vii) to the extent secured by any Intellectual Property or licenses of Intellectual Property applicable
to the use, distribution, sale or marketing of any Inventory of the Loan Parties, the holders of such Indebtedness or their representative
have expressly acknowledged and consented to (without condition or qualification) the license, sublicense or grant to Agent of
the right to use such Intellectual Property or license of Intellectual Property on the terms set forth in the Loan Documents,
and

 

(w)       any
other unsecured Indebtedness incurred by Borrower or any of its Subsidiaries in an aggregate outstanding amount not to exceed
$1,350,000 at any one time.

 

“Permitted
Intercompany Advances” means loans made by (a) a Loan Party to another Loan Party, (b) a Subsidiary of Borrower that
is not a Loan Party to another Subsidiary of Borrower that is not a Loan Party, and (c) a Subsidiary of Borrower that is not a
Loan Party to a Loan Party, so long as the parties thereto are party to an intercompany subordination agreement substantially
in the form of Exhibit I-1 hereto.

 

“Permitted
Investments” means:

 

(a)
       Investments in cash and Cash Equivalents;

 

(b)       Investments
in negotiable instruments deposited or to be deposited for collection in the Ordinary Course of Business,

 

(c)       
advances made in connection with purchases of goods or services in the Ordinary Course of Business,

 

(d)       
Investments received in settlement of amounts due to any Loan Party or any of its Subsidiaries effected in the Ordinary Course
of Business or owing to any Loan Party or any of its Subsidiaries as a result of Insolvency Proceedings involving an account debtor
or upon the foreclosure or enforcement of any Lien in favor of a Loan Party or its Subsidiaries,

 

    
Schedule 1.1
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(e)
       Investments owned by any Loan Party or any of its Subsidiaries on the Closing Date and
set forth on Schedule P-1 to the Agreement,

 

(f)       
guarantees permitted under the definition of Permitted Indebtedness,

 

(g)
       Permitted Intercompany Advances,

 

(h)
       Equity Interests or other securities acquired in connection with the satisfaction or
enforcement of Indebtedness or claims due or owing to a Loan Party or its Subsidiaries (in bankruptcy of customers or suppliers
or in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the Ordinary Course
of Business) or as security for any such Indebtedness or claims,

 

(i)
       deposits of cash in the Ordinary Course of Business to secure performance of operating
leases,

 

(j)
       (i) loans and advances to employees, officers, and directors of Borrower or any of its
Subsidiaries for the purpose of purchasing Equity Interests in Parent pursuant to employee stock purchase plans or agreements
approved by Parent’s Board of Directors so long as the proceeds of such loans are used in their entirety to purchase such
Equity Interests in Borrower, and (ii) loans and advances to employees and officers of Borrower or any of its Subsidiaries in
the Ordinary Course of Business for any other business purpose, so long as the aggregate amount of all such loans or advances
outstanding at any time under clauses (i) and (ii) does not exceed $300,000,

 

(k)
       Permitted Acquisitions,

 

(l)       Investments
resulting from entering into Bank Product Agreements,

 

(m)
       [reserved],

 

(n)
       Investments held by a Person acquired in a Permitted Acquisition to the extent that
such Investments were not made in contemplation of or in connection with such Permitted Acquisition and were in existence on the
date of such Permitted Acquisition,

 

(o)
       [reserved],

 

(p)       
Investments by any Loan Party or its Subsidiaries in any Treximet Indenture Note Parties,

 

(q)       
Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who
are not Affiliates, in the Ordinary Course of Business,

 

(r)
       (i) Investments by any Loan Party in another Loan Party, (ii) Investments by any non-Loan
Party in any Loan Party and (iii) Investments held by any non-Loan Party as of the Closing Date, and

 

(s)
       so long as no Event of Default has occurred and is continuing or would result therefrom,
any other Investments in an aggregate amount not to exceed $1,000,000 (with the fair market value of such Investments being measured
at the time such Investment is made without giving effect to subsequent changes in value) during the term of the Agreement.

 

    
Schedule 1.1
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“Permitted
Liens” means:

 

(a)
       Liens granted to, or for the benefit of, Agent to secure the Obligations,

 

(b)
       Liens for unpaid taxes, assessments, or other governmental charges or levies that either
(i) are not yet delinquent, or (ii) do not have priority over Agent’s Liens and the underlying taxes, assessments, or charges
or levies are the subject of Permitted Protests,

 

(c)
       judgment Liens arising solely as a result of the existence of judgments, orders, or
awards that do not constitute an Event of Default under Section ‎8.3 of the Agreement,

 

(d)
       Liens set forth on Schedule P-2 to the Agreement; provided, that to qualify
as a Permitted Lien, (i) any such Lien described on Schedule P-2 to the Agreement shall only secure the Indebtedness that
it secures on the Closing Date and any Refinancing Indebtedness in respect thereof and (ii) such Liens shall only encumber the
assets that secured such Indebtedness as of the Closing Date,

 

(e)
       the interests of lessors under operating leases in the Ordinary Course of Business,

 

(f)
       any Lien on any equipment or other assets (other than material Intellectual Property)
securing Indebtedness permitted under clause (c) of the definition of Permitted Indebtedness; provided that (i) such Lien attaches
concurrently with or within one hundred twenty (120) days after the acquisition thereof and only to the asset purchased or acquired
and the proceeds thereof and (ii) such Lien only secures the Indebtedness that was incurred to acquire the asset purchased or
acquired or any Refinancing Indebtedness in respect thereof,

 

(g)
       Liens arising by operation of law in favor of warehousemen, landlords, carriers, mechanics,
materialmen, laborers, or suppliers, incurred in the Ordinary Course of Business and not in connection with the borrowing of money,
and which Liens either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted Protests,

 

(h)       
Liens on amounts deposited to secure Borrower’s and its Subsidiaries obligations in connection with worker’s compensation
or other unemployment insurance (but excluding Liens arising under ERISA) pertaining to any Loan Party’s or its Subsidiaries’
employees in the Ordinary Course of Business,

 

(i)       
Liens on amounts deposited to secure Borrower’s and its Subsidiaries obligations in connection with the making or entering
into of bids, tenders, or leases in the Ordinary Course of Business and not in connection with the borrowing of money or the deferred
purchase price of property or services,

 

(j)
       Liens on amounts deposited to secure Borrower’s and its Subsidiaries reimbursement
obligations with respect to surety or appeal bonds obtained in the Ordinary Course of Business,

 

(k)
       with respect to any Real Property, easements, rights of way, and zoning restrictions
that do not, individually or in the aggregate, materially affect the value or marketability of the applicable asset or impair
the use or operation thereof,

 

(l)
       Liens arising under Non-Exclusive Licenses,

 

    
Schedule 1.1
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(m)
       Liens that are replacements of Permitted Liens to the extent that the original Indebtedness
is the subject of permitted Refinancing Indebtedness and so long as the replacement Liens only encumber those assets that secured
the original Indebtedness,

 

(n)
       rights of setoff or bankers’ liens upon deposits of funds in favor of banks or
other depository institutions, solely to the extent incurred in connection with the maintenance of such Deposit Accounts in the
Ordinary Course of Business,

 

(o)
       Liens granted in the Ordinary Course of Business on the unearned portion of insurance
premiums securing the financing of insurance premiums to the extent the financing is permitted under the definition of Permitted
Indebtedness,

 

(p) Liens
in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties which are not past
due in connection with the importation of goods by the Loan Parties or their Subsidiaries in the Ordinary Course of Business,

 

(q)
       Liens solely on any cash earnest money deposits made by Borrower or any of its Subsidiaries
in connection with any letter of intent or purchase agreement with respect to a Permitted Acquisition or any other Investment
permitted hereby,

 

(r) Liens
on any property or assets or Equity Interests of any Acquisition Subsidiary, any Target or any of the Target’s Subsidiaries
securing any Indebtedness permitted by clause (k) of the definition of Permitted Indebtedness; provided that (i) to the extent
securing any Acquired Indebtedness, such Liens existed prior to the date of such Permitted Acquisition and were not incurred in
connection with, or in contemplation of, such Permitted Acquisition, (ii) such Liens comply with the definition of Acquired Indebtedness
or Acquisition Indebtedness, as applicable, and do not extend to any assets of any other Loan Party, and (iii) no material Intellectual
Property is subject to such Liens,

 

(s) 
[reserved],

 

(t)
       a Lien on cash collateral not to exceed $525,000 in the aggregate securing the reimbursement
obligations of the Borrower and its material Subsidiaries under any letter of credit permitted pursuant to clause (s) of the definition
of “Permitted Indebtedness”; provided that the amount of cash collateral in respect of any such letter of credit shall
not exceed 105% of the face amount thereof,

 

(u)
        precautionary UCC-1 financing statement filings that are filed by lessors with respect
to operating leases entered into by the Loan Parties in the Ordinary Course of Business, and

 

(w)
       other Liens which do not secure Indebtedness for borrowed money or letters of credit
and as to which the aggregate amount of the obligations secured thereby does not exceed $1,000,000.

 

“Permitted
Protest” means the right of Borrower or any of its Subsidiaries to protest any Lien (other than any Lien that secures
the Obligations), taxes (other than payroll taxes or taxes that are the subject of a United States federal tax lien or an Irish
tax lien), or rental payment, provided that (a) a reserve or other appropriate provision with respect to such obligation is established
on Borrower’s or its Subsidiaries’ books and records in such amount as is required under GAAP, (b) any such protest
is instituted promptly and prosecuted diligently by Borrower or its Subsidiary, as applicable, in good faith, (c) Agent is satisfied
that, while any such protest is pending, there will be no impairment of the

 

    
Schedule 1.1
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enforceability,
validity, or priority of any of Agent’s Liens, (d) compliance with the obligation that is the subject of such contest is
effectively stayed during such challenge; (e) the title to, and right to use, the applicable asset by any Loan Party or the
Subsidiaries of any Loan Party are not adversely affected thereby; (f) the applicable asset or any part thereof or any interest
therein shall not be in any danger of being sold, forfeited or lost by reason of such contest by any Loan Party or any Subsidiaries
of any Loan Party; and (g) upon a final, non-appealable determination of such protest, any Loan Party and the Subsidiaries
of any Loan Party shall promptly comply with the requirements thereof.

 

“Permitted
Purchase Money Indebtedness” means, as of any date of determination, Indebtedness (other than the Obligations, but including
Capitalized Lease Obligations), incurred after the Closing Date and at the time of, or within 20 days after, the acquisition of
any fixed assets for the purpose of financing all or any part of the acquisition cost thereof, in an aggregate principal amount
outstanding at any one time not in excess of the amount permitted pursuant to clause (c) of the definition of “Permitted
Indebtedness”.

 

“Person”
means natural persons, corporations, limited liability companies, limited partnerships, general partnerships, limited liability
partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal
entities, and governments and agencies and political subdivisions thereof.

 

“PIK
Interest” has the meaning specified therefor in Section ‎2.6(d) of the Agreement.

 

“Platform”
has the meaning specified therefor in Section ‎17.9(c) of the Agreement.

 

“Products”
means any FDA-approved product that is marketed and sold in the United States by any Loan Party or any of its Subsidiaries and
shall include by reference Registrations that are required to conduct the Borrower’s business as currently conducted and
any Subsidiary’s business as conducted from time to time.

 

“Projections”
means any forecasts, projections or other forward-looking information furnished by or on behalf of a Loan Party or its Subsidiaries
in writing to Agent or any Lender for purposes of or in connection with this Agreement or the other Loan Documents.

 

“Pro
Forma Basis” means, for any Test Period, for purposes of computing the Total Leverage Ratio, that (x) pro forma effect
shall be given to any Indebtedness issued, incurred or assumed (and the application of the net proceeds therefrom) during such
period as if each such issuance, incurrence or assumption (and the application of the net proceeds therefrom) occurred on the
first day of the applicable Test Period and (y) pro forma effect shall be given to any Permitted Acquisition that occurred during
such period (including pro forma adjustments arising out of events which are directly attributable to such Permitted Acquisition)
as if such Permitted Acquisition occurred on the first day of the applicable Test Period.

 

“Pro
Rata Share” means, as of any date of determination, the percentage obtained by dividing (i) the outstanding Loans and
unused Commitments of such Lender by (ii) the sum of the aggregate outstanding Loans and unused Commitments of all Lenders.

 

“Public
Lender” has the meaning specified therefor in Section ‎17.9(c) of the Agreement.

 

    
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“Purchase
Price” means, with respect to any Permitted Acquisition, an amount equal to the aggregate consideration, whether cash,
property or securities (including the fair market value of any Equity Interests of Parent issued in connection with such Permitted
Acquisition and including the maximum amount of Earn-Outs), paid or delivered by Borrower or one of its Subsidiaries in connection
with such Permitted Acquisition (whether paid at the closing thereof or payable thereafter and whether fixed or contingent), but
excluding therefrom (a) any cash of the seller and its Affiliates used to fund any portion of such consideration and (b) any cash
or Cash Equivalents acquired in connection with such Permitted Acquisition.

 

“Qualified
Equity Interest” means and refers to any Equity Interests issued by Parent (and not by one or more of its Subsidiaries)
that is not a Disqualified Equity Interest.

 

“Real
Property” means any estates or interests in real property now owned or hereafter acquired by Borrower or one of its
Subsidiaries and the improvements thereto.

 

“Record”
means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable
in perceivable form.

 

“Refinancing
Indebtedness” means refinancings, renewals, or extensions of Indebtedness so long as:

 

(a)
       such refinancings, renewals, or extensions do not result in an increase in the principal
amount of the Indebtedness so refinanced, renewed, or extended, other than by the amount necessary to pay any premiums paid thereon
and the fees and expenses incurred in connection therewith and by the amount of unfunded commitments with respect thereto,

 

(b)
       such refinancings, renewals, or extensions do not result in a shortening of the average
weighted maturity (measured as of the refinancing, renewal, or extension) of the Indebtedness so refinanced, renewed, or extended,
nor are they on terms or conditions that, taken as a whole, are or could reasonably be expected to be more restrictive to the
Loan Parties or materially adverse to the interests of the Agent or Lenders,

 

(c)
       if the Indebtedness that is refinanced, renewed, or extended was subordinated in right
of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension must include subordination
terms and conditions that are at least as favorable to the Lender Group as those that were applicable to the refinanced, renewed,
or extended Indebtedness,

 

(d)
       the Indebtedness that is refinanced, renewed, or extended (i) is not recourse to any
Person that is liable on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness
that was refinanced, renewed, or extended and (ii) will not have any guarantors that did not guarantee the Indebtedness that was
refinanced, renewed, or extended,

 

(e)       such
refinancings, renewals, or extensions do not result in Indebtedness (i) with a stated maturity prior to the stated maturity of
the Indebtedness so refinanced, renewed, or extended or (ii) that is secured by any collateral that did not secure the Indebtedness
so refinanced, renewed, or extended and, for the avoidance of doubt, if the Indebtedness so refinanced, renewed, or extended is
unsecured, the new Indebtedness will not be secured, and

 

    
Schedule 1.1
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(f)       such
refinancings, renewals, or extensions of any Treximet Note Purchase Debt (or any other Refinancing Indebtedness in respect thereof)
do not result in Indebtedness having a cash coupon in excess of 15% per annum.

 

“Registrations”
means all Permits and exemptions issued or allowed by any Governmental Authority (including but not limited to new drug applications,
abbreviated new drug applications, biologics license applications, investigational new drug applications, over-the-counter drug
monograph, device pre-market approval applications, device pre-market notifications, investigational device exemptions, product
recertifications, manufacturing approvals and authorizations, CE Marks, pricing and reimbursement approvals, labeling approvals
or their foreign equivalent, controlled substance registrations, and wholesale distributor permits) held by, or applied by contract
to, any Loan Party or any of its Subsidiaries, that are required for the research, development, manufacture, distribution, marketing,
storage, transportation, use and sale of the Products of any Loan Party or any of its Subsidiaries.

 

“Regulatory
Action” means a governmental administrative or regulatory action, proceeding or investigation related to the safety,
efficacy, manufacture, marketing, sale and/or reimbursement of one or more Products.

 

“Regulatory
Authority” means the U.S. Food and Drug Administration or any successor thereto or any comparable Governmental Authority
that is concerned with the safety, efficacy, reliability, manufacture, sale, advertising, promotion, reimbursement, import, export
or marketing of medical products or drugs.

 

“Regulatory
Matters” means governmental administrative or regulatory matters related to or as a result of relevant Health Care Laws.

 

“Related
Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in
bank loans and similar extensions of credit in the ordinary course and that is administered, advised or managed by (a) a Lender,
(b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers, advises or manages a Lender.

 

“Related
Parties” with respect to any Person, means such Person's Affiliates and the directors, officers, employees, partners,
agents, trustees, administrators, managers, advisors and representatives of such Person and its Affiliates.

 

“Remedial
Action” means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in
any way address a release of Hazardous Materials in the indoor or outdoor environment, (b) prevent or minimize a release or threatened
release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor
or outdoor environment, (c) restore or reclaim natural resources or the environment, (d) perform any pre-remedial studies, investigations,
or post-remedial operation and maintenance activities, or (e) conduct any other actions with respect to a release of Hazardous
Materials, in each case as required by Environmental Laws.

 

“Replacement
Lender” has the meaning specified therefor in Section ‎2.13(b) of the Agreement.

 

“Required
Lenders” means, at any time, Lenders having or holding more than 50% of the aggregate Loans and undrawn Commitments
of all Lenders; provided, that (i) the Loans and undrawn Commitments of any Defaulting Lender shall be disregarded in the
determination of the Required Lenders

 

    
Schedule 1.1
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and (ii)
at any time there are 2 or more Lenders, “Required Lenders” must include at least 2 Lenders (who are not Affiliates
of one another).

 

“Requirement
of Law” means, as to any Person, any law (statutory or common), ordinance, treaty, rule, regulation, order, policy,
other legal requirement or determination of an arbitrator or of a Governmental Authority, in each case applicable to or binding
upon such Person or any of its Property or Products or to which such Person or any of its Property or Products is subject, including
all applicable Health Care Laws.

 

“Restricted
Payment” means, as to any Person (a) any dividend or other distribution (whether in cash, securities or other property)
on any Equity Interest in such Person (except those payable solely in its Equity Interest of the same class), (b) any payment
by such Person on account of (i) the purchase, redemption, retirement, defeasance, surrender, cancellation, termination or acquisition
of any Equity Interest in such Person or any claim respecting the purchase or sale of any Capital Stock in such Person, or (ii)
any option, warrant or other right to acquire any Equity Interest in such Person, (c) any management fees, salaries or other fees
or compensation to any Person holding any Equity Interest in a Loan Party or a Subsidiary or an Affiliate of a Loan Party or an
Affiliate of any Subsidiary of a Loan Party (in each case, other than (A) payments of salaries and customary bonuses to individuals,
(B) directors fees, (C) advances and reimbursements to employees or directors and (D) customary indemnities to employees and directors,
all in the Ordinary Course of Business), (d) any lease or rental payments to an Affiliate or a Subsidiary of a Loan Party, or
(e) repayments of or debt service on loans or other indebtedness (other than “earnouts” and similar payment obligations)
held by any Person holding any Equity Interest in a Loan Party or a Subsidiary of a Loan Party, an Affiliate of a Loan Party or
an Affiliate of any Subsidiary of a Loan Party (other than in respect of any Permitted Indebtedness). For purposes of this definition,
“Affiliate” of Parent, any Loan Party or any of their respective Subsidiaries shall not include any Permitted Holder.

 

“Sanctioned
Entity” means (a) a country or a government of a country, (b) an agency of the government of a country, (c) an organization
directly or indirectly controlled by a country or its government or (d) a Person resident in or determined to be resident in a
country, in each case, that is subject to a comprehensive country sanctions program administered and enforced by OFAC (currently,
such programs target Crimea, Cuba, Iran, North Korea, Sudan and Syria).

 

“Sanctioned
Person” means a person named on the list of Specially Designated Nationals maintained by OFAC.

 

“S&P”
has the meaning specified therefor in the definition of Cash Equivalents.

 

“SEC”
means the United States Securities and Exchange Commission and any successor thereto.

 

“Securities
Account” means a securities account (as that term is defined in the Code).

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder,
and any successor statute.

 

“Security
Agreement” means the Mortgage Debenture dated as of the Closing Date, between Borrower and Agent, as may be amended,
restated, amended and restated, supplemented or otherwise modified from time to time.

 

    
Schedule 1.1
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“Silenor”
means the prescription pharmaceutical product containing doxepin and marketed under the Silenor® trademark.

 

“Silenor
Assets” means with respect to Parent or any Subsidiary of Parent, its right, title and interest in, to and under all
personal property consisting of, relating to, or developed or used in connection with Silenor, whether now owned or existing or
hereafter acquired or arising and wherever located, including all proceeds, products, accessions, rents, profits of or in respect
of any of the foregoing, without limitation, the Intellectual Property rights of the Parent or any of its Subsidiaries relating
to Silenor and all rights of the Parent or any of its Subsidiaries under and arising out of the Silenor Contracts.

 

“Silenor
Contracts” means (i) the License Agreement dated as of August 25, 2003, between ProCom One, Inc. and Pernix Sleep, Inc.
(“Pernix Sleep”) (as successor in interest); (ii) the License Agreement dated as of June 7, 2011, between Paladin
Labs Inc. and Pernix Sleep (as successor in interest); (iii) the License Agreement dated as of April 26, 2012, between CJ CheilJedang
Corporation and Pernix Sleep (as successor in interest); (iv) the Settlement and License Agreement dated as of July 17, 2012,
by and among ProCom One, Inc., Mylan Inc., Mylan Pharmaceuticals, Inc. and Pernix Sleep (as successor in interest); (v) the Manufacturing
Services Agreement dated as of February 1, 2006 between Patheon Pharmaceuticals Inc. and Pernix Sleep (as successor in interest);
(vi) the Manufacturing Services Agreement dated as of July 17, 2012, between Mylan Pharmaceuticals Inc. and Pernix Sleep (as successor
in interest); (vii) the Supply Agreement dated as of June 7, 2011, between Paladin Labs Inc. and Pernix Sleep (as successor in
interest); (viii) the Supply Agreement dated as of April 26, 2012, between CJ CheilJedang Corporation and Pernix Sleep (as successor
in interest); (ix) the Purchase Agreement dated as of June 7, 2011, between Paladin Labs Inc. and Pernix Sleep (as successor in
interest); (x) any other contracts relating to the Silenor Assets as of the Closing Date; and (xi) each amendment, modification
or restatement thereof or substitute agreement for any such agreement specified in clauses (i) through (x).

 

“Subordinated
Indebtedness” means any unsecured Indebtedness of Borrower or its Subsidiaries incurred from time to time that is subordinated
in right of payment to the Obligations pursuant to a written agreement to that effect and (a) that is only guaranteed by the Guarantors
(provided that any such guarantee shall be subordinated in right of payment to the Obligations pursuant to a written agreement
to that effect), (b) that is not subject to scheduled amortization or any other payment of principal, redemption, sinking fund,
mandatory prepayment or similar payment and does not have a final maturity, in each case, on or before the date that is six months
after the Maturity Date, (c) that does not include any financial covenants or any covenant or agreement that is more restrictive
or onerous on any Loan Party in any material respect than any comparable covenant in the Agreement and is otherwise on terms and
conditions reasonably acceptable to Agent, (d) shall be limited to cross-payment default and cross-acceleration to designated
“senior debt” (including the Obligations), and (e) the terms and conditions of the subordination are reasonably acceptable
to Agent.

 

“Subsequent
Loan” has the meaning specified therefore in Section ‎2.1 of the Agreement.

 

“Subsidiary”
means, with respect to any Person, any corporation, association, partnership or other business entity of which more than 50% of
the total voting power of shares of Equity Interests or other interests (including partnership interests) entitled (without regard
to the occurrence of any contingency) to vote in the election of directors, managers, general partners or trustees (or other governing
body) thereof is at the time owned or controlled, directly or indirectly, by (i) such Person; (ii) such Person and one or more
Subsidiaries of such Person; or (iii) one or more Subsidiaries of such Person.

 

    
Schedule 1.1
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“Target”
has the meaning set forth in the definition of Permitted Acquisition.

 

“Taxes”
means any taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature now or hereafter imposed or levied
by any jurisdiction or by any political subdivision or taxing authority thereof or therein, and all interest, penalties or similar
liabilities with respect thereto.

 

“Tax
Lender” has the meaning specified therefor in Section ‎14.2(a) of the Agreement.

 

“TCA”
means the Taxes Consolidation Act 1997 of Ireland.

 

“Test
Period” means, at any time, the four consecutive fiscal quarters of Parent most recently ended at such time for which
financial statements have been or were required to have been delivered to the Agent.

 

“Total
Leverage Ratio” means, at any date, the ratio of (a) total Indebtedness of Parent and each of its Subsidiaries (determined
on a consolidated basis in accordance with GAAP; provided, that any Subsidiary of Parent that is not part of the consolidated
group at such date shall be deemed to be part of such consolidated group for this purpose) to (b) EBITDA for the most recent Test
Period.

 

“Trademarks”
means any and all trademarks, trade names, registered trademarks, trademark applications, service marks, registered service marks
and service mark applications, including (a) the trade names, registered trademarks, trademark applications, registered service
marks and service mark applications listed on Schedule 4.5 to the Agreement, (b) all renewals thereof, (c) all income,
royalties, damages and payments now and hereafter due or payable under and with respect thereto, including payments under all
licenses entered into in connection therewith and damages and payments for past or future infringements or dilutions thereof,
(d) the right to sue for past, present and future infringements and dilutions thereof, (e) the goodwill of the business symbolized
by the foregoing or connected therewith, and (f) all rights corresponding thereto throughout the world.

 

“Transactions”
means the entry into (i) the Loan Documents, (ii) the 2017 Note Purchase Documents, (iii) the ABL Loan Documents, (iv) the exchange
of notes issued pursuant to the 2015 Indenture for 2017 Notes pursuant to the 2017 Exchange Agreement and (v) the “Internal
Reorganization” (as such term is defined in the 2017 Exchange Agreement) and the associated transactions related thereto.

 

“Treximet
Indenture” means that certain Indenture dated as of August 19, 2014 by and among the Treximet Indenture Note Parties
and the Treximet Note Purchase Trustee as supplemented by the First Supplemental Indenture dated as of April 21, 2015 and the
Second Supplemental Indenture dated as of July 21, 2017, in each case, governing Parent’s 12.0% Senior Secured Notes due
2020, as in effect on the Closing Date.

 

“Treximet
Indenture Note Parties” means, at any time, the Persons that are obligors under the Treximet Indenture in respect of
Parent’s 12% Senior Secured Notes due 2020 at such time; provided that no additional guarantors shall become a party to
the Treximet Indenture.

 

“Treximet
Intercompany Note” means that certain promissory note dated as of August 19, 2014 in the principal amount of $225,500,000
as of the Closing Date executed by Pernix Ireland in favor of Parent.

 

    
Schedule 1.1
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“Treximet
Note Purchase Agreement” means, individually and collectively, those certain Purchase Agreements entered into on or
prior to the date of the Treximet Indenture by and between Parent and each Treximet Note Purchase Investor in connection with
the issuance of the “Notes” (as such term is defined in the Treximet Indenture).

 

“Treximet
Note Purchase Creditors” means the Treximet Note Purchase Investors and the Treximet Note Purchase Trustee, collectively.

 

“Treximet
Note Purchase Debt” means all obligations, liabilities and indebtedness of every kind, nature and description owing
by one or more Treximet Indenture Note Parties to one or more of the Treximet Note Purchase Creditors evidenced by or arising
under one or more of the Treximet Note Purchase Documents, whether direct or indirect, absolute or contingent, joint or several,
due or not due, primary or secondary, liquidated or unliquidated, including principal, interest, charges, fees, costs, indemnities
and reasonable expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise, whether now existing
or hereafter arising, whether arising before; provided that no additional guarantors shall become a party to the Treximet Indenture.

 

“Treximet
Note Purchase Documents” means the Treximet Note Purchase Agreement, the Treximet Indenture, the Notes (as such term
is defined in the Treximet Indenture) and all other agreements, documents and instruments at any time executed and/or delivered
by any Treximet Indenture Note Party with, to or in favor of Treximet Note Purchase Creditors in connection with or related to
the Treximet Indenture, as each of the foregoing may be amended, restated, modified, supplemented, renewed, or replaced from time
to time in accordance with the terms of the Agreement; provided that no additional guarantors shall become a party to the Treximet
Indenture.

 

“Treximet
Note Purchase Investors” has the same meaning as “Holders” in the Treximet Indenture.

 

“Treximet
Note Purchase Trustee” has the same meaning as “Trustee” in the Treximet Indenture.

 

“Treximet
Purchase Agreement” means that certain Asset Purchase and Sale Agreement dated as of May 13, 2014 among Parent and GSK.

 

“United
States” or “U.S.” means the United States of America.

 

“Voidable
Transfer” has the meaning specified therefor in Section ‎17.8 of the Agreement.

 

“Weighted
Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing
(a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity
or other required payments of principal, including payment at final maturity, in respect thereof, by (ii) the number of years
(calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment, by (b) the then outstanding
principal amount of such Indebtedness; provided that for purposes of determining the Weighted Average Life to Maturity of any
Indebtedness that is being modified, refinanced, refunded, renewed, replaced or extended (the “Applicable Indebtedness”),
the effects of any amortization or prepayments made on such Applicable Indebtedness prior to the date of the applicable modification,
refinancing, refunding, renewal, replacement or extension shall be disregarded.

 

    
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“Zohydro”
means the pharmaceutical product containing hydrocodone birtartrate and marketed under the Zohydro® trademark.

 

“Zohydro
Assets” means, with respect to the Parent or any Subsidiary of the Borrower, its right, title and interest in, to and
under all personal property consisting of, relating to, or developed or used in connection with Zohydro, whether now owned or
existing or hereafter acquired or arising and wherever located, including, without limitation, all proceeds, products, accessions,
rents, profits of or in respect of any of the foregoing, the Intellectual Property of Parent or any of its Subsidiaries relating
to Zohydro and all rights of Parent or any of its Subsidiaries under and arising out of the Zohydro Contracts.

 

“Zohydro
Contracts” means (i) the Asset Purchase Agreement dated as of March 10, 2015 by and among Borrower (as successor in
interest to Pernix Ireland Limited, a private company limited by shares incorporated under the laws of the Republic of Ireland
and including any permitted assignees) and Zogenix (as amended, restated or otherwise modified, subject to the proviso to clause
(v) of this definition, the “Zogenix Purchase Agreement”), (ii) the License Agreement between Elan Pharma International
Limited and Borrower, dated as of November 27, 2007, (iii) the Commercial Manufacturing and Supply Agreement between Daravita
Limited and Borrower, dated as of March 5, 2015, (iv) each other contract relating to the Zohydro Assets existing on the Closing
Date, and (v) each amendment, modification or restatement thereof or substitute or similar agreement for any such agreement specified
in clauses (i) through (iv) above; provided, that the terms of any such amendment, modification, restatement or substitute
agreement not made in the Ordinary Course of Business (x) shall be no more restrictive, taken as a whole, than the existing terms
of the agreement being so amended, modified, restated or substituted, as the case may be and (y) shall not be materially adverse
to the Agent or the Lenders.

 

“Zohydro
Holdback Amount” means the “Difference” and the “Milestone Payments” (as such terms are defined
in the Zogenix Purchase Agreement), payable to Zogenix pursuant to, and in accordance with, the terms of the Zogenix Purchase
Agreement as in effect on the Closing Date.

 

“Zohydro
Intercompany Note” means that certain promissory note dated as of April 24, 2015, having a principal amount outstanding
as of the Closing Date of not more than $1,000,000 (immediately after giving effect to the partial prepayment thereof
on the Closing Date as referred to in Section 6.11(a) of the Agreement) executed by Borrower in favor of Parent.

 

“Zogenix”
means Zogenix, Inc., a Delaware corporation.

 

“Zogenix
Purchase Agreement” has the meaning specified in the definition of “Zohydro Contracts”.

 

 

 

 

    
Schedule 1.1
 Page -39 -

     

    

Schedule
3.1

 

The occurrence
of the Closing Date and the obligation of each Lender to make the Closing Date Loan provided for hereunder is subject to the fulfillment,
to the satisfaction of Agent and each Lender, of each of the following conditions precedent (the making of such initial extensions
of credit by a Lender being conclusively deemed to be its satisfaction or waiver of the conditions precedent):

 

(a)               
Agent shall have received evidence that appropriate financing statements, or Forms C1 containing particulars of security,
as may be necessary or, in the opinion of Agent, desirable to perfect the Agent’s Liens in and to the Collateral shall be
in proper form for filing, registration or recordation;

 

(b)              
Agent shall have received each of the following documents, in form and substance satisfactory to Agent, duly authorized,
executed and delivered by each of the parties thereto, and each such document shall be in full force and effect:

 

(i)                
the Security Agreement; and

 

(ii)              
Notes executed by the Borrower for the account of each Lender which has requested a note at least three (3) Business Days
prior to the Closing Date;

 

(c)               
Agent shall have received a certificate from the Secretary of each Loan Party (i) attesting to the resolutions of its Board
of Directors authorizing its execution, delivery, and performance of the Loan Documents to which it is a party, (ii) authorizing
its Authorized Persons to execute the same, and (iii) attesting to the incumbency and signatures of such Authorized Persons;

 

(d)              
Agent shall have received copies of each Loan Party’s Governing Documents, as amended, modified, or supplemented
to the Closing Date, which Governing Documents shall be certified by the Secretary of such Loan Party;

 

(e)               
To the extent available in the relevant jurisdiction, Agent shall have received a certificate of good standing (or equivalent,
to the extent the concept is applicable) as of a recent date with respect to each Loan Party, such certificate to be issued by
the relevant authority of the jurisdiction of organization of such Loan Party;

 

(f)               
Agent shall have received opinions of the Loan Parties’ counsel in form and substance reasonably satisfactory to
the Required Lenders;

 

(g)               
Borrower shall have paid all Lender Group Expenses incurred in connection with the transactions evidenced by the Agreement
and the other Loan Documents to the extent invoiced at least three (3) Business Days prior to the Closing Date;

 

(h)              
Agent shall have received the following, each of which shall be original, .PDF or facsimile copies or delivered by other
electronic method (followed promptly by originals) unless otherwise specified, each properly executed, where applicable, and each
in form and substance reasonably satisfactory to the Required Lenders:

 

(i)       a
Notice of Borrowing with respect to the Closing Date Loan, executed by an Authorized Person of Borrower and in accordance with
the requirements of the Agreement; and

 

 

 

	Schedule	 3.1
	Page
    - 1 -	 

 

    	 

    	 

    

(ii)       executed
counterparts of the Agreement that, when taken together, bear the signatures of an Authorized Person of Borrower, Agent and each
Lender;

 

(i)       Agent
shall have received at least three (3) Business Days prior to the Closing Date, all documentation and other information with respect
to the Loan Parties reasonably requested by Agent in writing at least ten (10) Business Days prior to the Closing Date, required
under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act;

 

(j)       Borrower
shall have received all governmental and third party approvals (including shareholder approvals, landlord consents and other consents)
necessary or, in the reasonable opinion of the Required Lenders, advisable in connection with the Agreement or the transactions
contemplated by the Loan Documents, which shall all be in full force and effect, and all applicable waiting periods shall have
expired without any action being taken or threatened by any competent authority which would restrain, prevent or otherwise impose
adverse conditions on the Agreement or the transactions contemplated by the Loan Documents;

 

(k)       Parent
shall have performed its obligations under the 2017 Exchange Agreement required to be performed on the Closing Date; and

 

(l)       There
shall be no actions, suits, or proceedings pending or, to the knowledge of Borrower, after due inquiry, threatened in writing
against a Loan Party or any of its Subsidiaries that that challenge any Loan Document or any transaction contemplated by this
Agreement or the other Loan Documents.

 

    	 

    	 

    

Schedule
3.2

 

The
obligation of each Lender to make each Subsequent Loan provided for hereunder is subject to the fulfillment of each of the following
conditions precedent (the making of such extensions of credit by a Lender being conclusively deemed to be its satisfaction or
waiver of the conditions precedent):

 

1.     
If the proceeds of such Subsequent Loan are being used, directly or indirectly, to acquire any Equity Interests of any
Person or any other assets (whether pursuant to a Permitted Acquisition or other acquisition permitted by the Agreement):

 

		a.	Agent shall have received
the results of a search of the Uniform Commercial Code filings (or equivalent filings) and judgment filings and the results of
federal tax lien searches made with respect to the acquired assets (including Target and its Subsidiaries) are contemplated to
be so acquired) and, if applicable, the Acquisition Subsidiary in the states (or other jurisdictions) of formation of such Persons
and in which the chief executive office of each such Person is located, and in such other jurisdictions as may be reasonably required
by Agent or Required Lenders, together with copies of the financing statements (or similar documents) disclosed by such search,
and accompanied by evidence satisfactory to the Agent and Required Lenders that the Liens indicated in any such financing statement
(or similar document) would constitute Permitted Liens or have been or will be contemporaneously with the funding of the initial
extension of credit released or terminated.

 

		b.	Immediately after giving
effect to the Borrowing of such Subsequent Loan, the consummation of such acquisition and the transactions related thereto, the
Target, its Subsidiaries and, if applicable, the Acquisition Subsidiary shall not be obligated on any Indebtedness other than
Permitted Indebtedness.

 

		c.	Borrower shall have delivered
to Agent a copy of the definitive sale and purchase agreement related to such acquisition (the “Acquisition Agreement”)
and any related documents reasonably requested by Agent or the Required Lenders.

 

		d.	Such acquisition shall
be consummated pursuant to the terms of the Acquisition Agreement in all material respects, substantially concurrently with the
funding of such Subsequent Loan, without giving effect to any amendments, express consents or express waivers by the Borrower
thereto or modifications to the provisions thereof that are adverse to the interests of Lender Group without the prior written
consent of the Required Lenders.

 

		e.	Agent shall have received
due diligence information relating to the Target, its Subsidiaries and, if applicable, the Acquisition Subsidiary, to the extent
available to the Borrower or required in connection with Section 5.11 of the Agreement.

 

		f.	Agent shall have received
each of the following documents, in form and substance reasonably satisfactory to the Required Lenders, duly executed and delivered,
and each such document shall be in full force and effect:

 

		i.	supplements to the Security Agreement
                                         or other Additional Document(s) required pursuant to Section 5.11 or 5.12 of the Agreement,
                                         executed by the Acquisition Subsidiary (if applicable), the Target and each of its Subsidiaries
                                         that

 

    	 

    	 

    

is
required to become a Guarantor pursuant to Section 5.11, ‎5.12 and/or 5.17 of the Agreement,

 

ii.     
duly executed short form security agreements with respect to the Intellectual Property owned by the Acquisition Subsidiary
(if applicable), Target and each of its Subsidiaries that are required to become a Guarantor pursuant to Section 5.11, 5.12 and/or
5.17 of the Agreement, in appropriate form for filing in the United States and, upon reasonable request of the Agent, in additional
applicable jurisdictions, and in a format reasonable acceptable to the Agent,

 

		iii.	a completed Perfection Certificate
                                         for the Acquisition Subsidiary (if applicable), the Target and its Subsidiaries or otherwise
                                         with respect to the acquired assets, and

 

		iv.	executed counterparts of each other
                                         Loan Document required to perfect the Agent’s security interest in the Collateral
                                         duly executed by an Authorized Person of the Acquisition Subsidiary (if applicable),
                                         Target and each of its Subsidiaries party thereto.

 

		g.	Agent shall have received
proper financing statements (Form UCC-1 or the equivalent) for filing under the Code or other appropriate filing offices of each
jurisdiction as may be necessary to perfect the security interests granted by the Acquisition Subsidiary (if applicable), the
Target and its Subsidiaries.

 

		h.	Agent shall have received
a certificate from the Secretary of the Acquisition Subsidiary (if applicable), the Target and each of its Subsidiaries that are
required to become Loan Parties pursuant to the Agreement (i) attesting to the resolutions of its Board of Directors authorizing
its execution, delivery, and performance of the Loan Documents to which it is a party, (ii) authorizing its Authorized Persons
to execute the same, and (iii) attesting to the incumbency and signatures of such Authorized Persons.

 

		i.	Agent shall have received
copies of the Governing Documents of the Acquisition Subsidiary (if applicable), the Target and each of its Subsidiary, as amended,
modified, or supplemented to the relevant Funding Date, which Governing Documents shall be certified by the Secretary of such
Person and with respect to Governing Documents of a Person that are charter documents, certified as of a recent date (not more
than 30 days prior to the Funding Date) by the appropriate government official.

 

		j.	To the extent customary
in the relevant jurisdiction of organization, Agent shall have received a certificate of good standing (or equivalent, to the
extent the concept is applicable) with respect to the Acquisition Subsidiary (if applicable), the Target and each of its Subsidiaries,
such certificate to be issued by the relevant authority of the jurisdiction of organization of such Person.

 

		k.	Agent shall have received opinions
                                         of the Loan Parties’ and/or Target’s counsel pursuant to Section 5.11 and/or
                                         5.12 of the Agreement with respect to the Acquisition Subsidiary (if applicable), the
                                         Target and each of its Subsidiaries in form and substance reasonably satisfactory to
                                         Agent and the Required Lenders.

 

    	 

    	 

    

		l.	Borrower shall have otherwise
                                         complied with Section 5.11 and 5.12 of the Agreement to the extent applicable (without
                                         giving effect to the post acquisition time period for taking such actions following the
                                         acquisition).

 

		m.	Agent shall have received at
                                         least two (2) Business Days prior to the Funding Date, all documentation and other information
                                         with respect to the Acquisition Subsidiary (if applicable), Target and its Subsidiaries
                                         reasonably requested by Agent in writing at least ten (10) Business Days prior to the
                                         Funding Date, required under applicable “know your customer” and anti-money
                                         laundering rules and regulations, including the USA PATRIOT Act.

 

		n.	The Acquired Cash Flow Ratio,
                                         after giving pro forma effect to such Permitted Acquisition or other acquisition shall
                                         be greater than 1.50 to 1.00.

 

		2.	The
                                         proceeds of such Subsequent Loan shall be used in accordance with Section 5.17
                                         of the Agreement, and such proceeds shall be applied substantially concurrently with
                                         the funding of such Subsequent Loan or funded into a blocked account subject to a Control
                                         Agreement over which Agent has a first lien security interest, pending application of
                                         such proceeds in accordance with the terms of the Agreement and, if applicable, the applicable
                                         Acquisition Agreement.

 

		3.	Borrower shall have paid
all Lender Group Expenses incurred in connection with such Subsequent Loan, the Permitted Acquisition (if applicable) and the
transactions related thereto to the extent invoiced at least two (2) Business Days prior to the Funding Date.

 

		4.	Agent shall have received
a duly executed Notice of Borrowing with respect to such Subsequent Loan, executed by an Authorized Person of the Borrower and
in accordance with the requirements of the Agreement, which shall, among other things, specify in reasonable detail the proposed
use of proceeds thereof.

 

		5.	Agent shall have received
a certificate duly signed by an Authorized Person of the Borrower confirming the satisfaction of the conditions set forth in this
Schedule 3.2.

 

    	 

    	 

    

 

Schedule
5.1

 

Financial
Statements, Reports Certificates

 

Deliver to
Agent (and if so requested by Agent, with copies for each Lender) each of the financial statements, reports, or other items set
forth below at the following times:

 

	as soon as available, but in any event

    within 45 days after the end of each of Borrower’s first three fiscal quarters of any fiscal year,	(a)
               unaudited consolidated and consolidating balance sheet and statements of income
        and cash flows covering Parent’s and its Subsidiaries’ operations during such period (which in the case of
        consolidating financial statements will be in the form consistent with such consolidating financial statements provided
        to the Initial Lenders prior to the Closing Date), together with a corresponding discussion and analysis of results from
        management, and

         

        (b)       a
        Compliance Certificate.

         

	as soon as available, but in any event within
    90 days after the end of each of Borrower’s fiscal years,	(a)
               consolidated financial statements of Parent and its Subsidiaries for each such
        fiscal year, audited by independent certified public accountants reasonably acceptable to Agent (it being understood that
        Cherry Bekaert LLP is acceptable to Agent) and certified, without any qualifications (including any (A) “going concern”
        or like qualification or exception (other than any qualification that is expressed solely with respect to, or expressly
        resulting solely from, an upcoming maturity date under any Indebtedness occurring within one year from the time such opinion
        is delivered) or (B) qualification or exception as to the scope of such audit), by such accountants to have been prepared
        in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, statement of
        cash flow, and statement of shareholder’s equity, and, if prepared, such accountants’ letter to management),
        together with (x) a corresponding customary discussion and analysis of results from management and (y) consolidating financial
        statements of Parent and its Subsidiaries for such fiscal year, in the form consistent with such consolidating financial
        statements provided to the Initial Lenders prior to the Closing Date, and

         

        (b)
                a Compliance Certificate.

         

	promptly, but in any event within 5 days after Borrower has knowledge
    of,	(a)       any
        event or condition that constitutes a Default or an Event of Default, notice of such event or condition and a statement
        of the curative action that Borrower proposes to take with respect thereto,

         

        (b)       any
        default or breach under, or termination of, any Material Contract of a Loan Party or its Subsidiary, notice of such default,
        breach or termination and a statement of the curative action that Borrower proposes to take with respect thereto,

         

        (c)       any
        material development in connection with disputes with suppliers to or customers of the Borrower, including, without limitation,
        commencement and completion of arbitration, notice of such material development,

         

        (d)       that
        any Loan Party or its Subsidiaries, an owner, officer, manager,

         

    	 

    	 

    

	 	employee
        or Person with a “direct or indirect ownership interest” (as that phrase is defined in 42 C.F.R. §420.201)
        in any Group Member: (i) has had a civil monetary penalty assessed against him or her pursuant to 42 U.S.C. §1320a-7a
        or is the subject of a proceeding seeking to assess such penalty; (ii) has been excluded from participation in a Federal
        Health Care Program (as that term is defined in 42 U.S.C. §1320a-7b) or Government Drug Rebate Program or is the
        subject of a proceeding seeking to assess such penalty; (iii) has been convicted (as that term is defined in 42 C.F.R.
        §1001.2) of any of those offenses described in 42 U.S.C. §1320a-7b or 18 U.S.C. §§669, 1035, 1347,
        1518 or is the subject of a proceeding seeking to assess such penalty; or (iv) has been involved or named in a U.S. Attorney
        complaint made or any other action taken pursuant to the False Claims Act under 31 U.S.C. §§3729-3731 or in
        any qui tam action brought pursuant to 31 U.S.C. §3729 et seq.; any pending or threatened revocation, suspension,
        termination, probation, restriction, limitation, denial, or non-renewal with respect to any Health Care Permit or Registration,

         

        (e)       any
        allegations of licensure violations or fraudulent acts or omissions involving any Loan Party or any of its Subsidiaries,

         

        (f)       the
        pending or threatened imposition of any material fine or penalty by any Governmental Authority under any Health Care Law
        against any Loan Party or any of its Subsidiaries,

         

        (g)
               the exclusion or debarment from any Governmental Drug Rebate Program or other
        federal healthcare program or debarment or disqualification by any Governmental Authority of any Loan Party, any of its
        Subsidiaries, or any of their officers, directors, employees, agents, or contractors, and

         

        (h)
               to the extent any 2015 Note Purchase Documents, 2017 Note Purchase Documents,
        ABL Loan Document or Treximet Note Purchase Document is amended, modified, refinanced or otherwise changed pursuant to
        the terms of Section 6.6(a)(ii) of the Agreement, copies of any such amendment, modification, refinancing or other change.

         

	promptly, but in any event within 5 days of Borrower providing
    or receiving, as applicable,	(a)       
        copies of all settlement agreements entered into by a Loan Party,

         

        (b)       any
        notice received by a Loan Party or any of its Subsidiaries alleging potential or actual violations of any Health Care
        Law,

         

        (c)       any
        notice that any Regulatory Authority is limiting, suspending or revoking any Registration, requiring adverse changes to
        the marketing classification, distribution pathway or parameters, or labeling of the products of any Loan Party or any
        of its Subsidiaries, or considering any of the foregoing,

         

        (d)any
        notice, including, but not limited to, a Form FDA-483, untitled letter, warning letter, or notice of violation letter,that
        any Loan Party or any of its Subsidiaries has become subject to any Regulatory Action, and

         

    	 

    	 

    

	 	(e)any notice that any Product of any Loan Party or any of its Subsidiaries has been seized, withdrawn, recalled, detained, or subject to a suspension of manufacturing, or the commencement of any proceedings seeking the withdrawal, recall, suspension, import detention, or seizure of any Product are pending or threatened against any Loan Party or any of its Subsidiaries.

                                                 

	Promptly,
but in any 

        event
within 15 days 

        after
the same are 

        required
to be filed with 

        the
        SEC,

         
	(a)
               form 10-K annual reports, and

         

        (b)
               form 10-Q quarterly reports.

         

	promptly after the commencement thereof or any material development
    therein, but in any event within 5 days after the service of process with respect thereto on Borrower or any of its Subsidiaries,	(a)notice of the commencement or any material development
    in all actions, suits, or proceedings brought by or against Parent or any of its Subsidiaries before any Governmental Authority
    (i) alleging a potential or actual violation of Health Care Laws, or (ii) which could otherwise reasonably could be expected
    to result in a Material Adverse Effect.
	upon the reasonable request of Agent or the Required Lenders,	(a) any other information reasonably requested relating to the
    financial condition of Borrower or its Subsidiaries.
	 	Documents required to be delivered pursuant to Section 5.1
    of the Agreement in respect of information filed by any Loan Party or Parent with any securities exchange or with the
    SEC or any analogous governmental or private regulatory authority with jurisdiction over matters relating to securities shall
    be deemed to have been delivered on the date on which such items have been made publicly available on the SEC website or the
    website of the relevant analogous governmental or private regulatory authority or securities exchange.

    	 

    	 

    

Schedule
5.17

 

Subsequent
Loans – Use of Proceeds

 

Unless otherwise
approved by the Required Lenders prior to the funding of a Subsequent Loan, the proceeds of each Subsequent Loan made after the
Closing Date shall only be used for the following purposes in connection with a Permitted Acquisition where the Acquired Cash
Flow Ratio of the Target of such Permitted Acquisition, after giving pro forma effect thereto, is greater than 1.50 to 1.00:

 

		1.	The
                                         Purchase Price required to be paid by any Loan Party or Subsidiary (including any upfront,
                                         milestone or royalty payments made to the seller or licensor) or the refinancing of such
                                         Target’s existing indebtedness, in each case in connection with the consummation
                                         of such Permitted Acquisition, and related reasonable transaction fees and expenses.

 

		2.	In connection
                                         with any new product of any Loan Party or Subsidiary acquired pursuant to such Permitted
                                         Acquisition:

 

(a)       Marketing
expenses associated with such new product, including any pre-marketing activities such as market research;

 

(b)       Selling
expenses associated with such new product, including all costs related to any incremental headcount required to support the product(s),
the cost of sales force training and any incremental sales analytics expenses (including but not limited to sales force automation
and data expenses);

 

(c)       Research
and development expenses associated with such new product, including any post-market requirements;

 

(d)       Manufacturing
expenses associated with such new product, including the cost of validation and scale-up;

 

(e)       Costs
associated with the supply chain for such new product, including the cost of third-party logistics providers, audit of any third-party
manufacturing sites, and technology transfer expenses; and/or

 

(f)       Post-closing
capital needs relating to such new product to (i) fund inventory purchases and (ii) fund other working capital needs; provided,
however, that amounts requested pursuant to this clause (ii) shall not exceed $500,000.

 

		3.	Interest
                                         expense and any fees pursuant to the Agreement associated with the Subsequent Loan incurred
                                         in connection with such Permitted Acquisition.

 

    	 

    	 

    

Schedule
5.18

 

Post-Closing
Obligations

 

Notwithstanding
any time period specified in the Agreement, the Loan Parties shall deliver to Agent as soon as possible after the Closing Date,
but in any event within 45 days of the Closing Date (or such later time as the Required Lenders shall agree in their reasonable
discretion) a certificate of insurance, together with the endorsements thereto, as are required by Section 5.6 of the Agreement,
the form and substance of which shall be reasonably satisfactory to Agent.

 

 

 

 

 

    

     

    

 

EXHIBIT
A-1

 

[FORM
OF] ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

This
ASSIGNMENT AND ACCEPTANCE AGREEMENT (“Assignment Agreement”) is entered into as of __________________
between ______________________ (“Assignor”) and (“Assignee”). Reference is made to the Agreement
described in Annex I hereto (the “Credit Agreement”). Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed to them in the Credit Agreement.

 

1.       In
accordance with the terms and conditions of Section 13 of the Credit Agreement, the Assignor hereby sells and assigns to
the Assignee, and the Assignee hereby purchases and assumes from the Assignor, that interest in and to the Assignor's rights and
obligations under the Loan Documents as of the date hereof with respect to the Obligations owing to the Assignor, and Assignor’s
portion of the Commitments, all to the extent specified on Annex I.

 

2.       The
Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the interest being assigned by it hereunder
and that such interest is free and clear of any adverse claim and (ii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment Agreement and to consummate the transactions contemplated hereby; (b) makes
no representation or warranty and assumes no responsibility with respect to (i) any statements, representations or warranties
made in or in connection with the Loan Documents, or (ii) the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Loan Documents or any other instrument or document furnished pursuant thereto; (c) makes no representation or
warranty and assumes no responsibility with respect to the financial condition of the Borrower or any Guarantor or the performance
or observance by the Borrower or any Guarantor of any of their respective obligations under the Loan Documents or any other instrument
or document furnished pursuant thereto, and (d) represents and warrants that the amount set forth as the Purchase Price on Annex
I represents the amount owed by the Borrower to Assignor with respect to Assignor’s share of the Loans assigned hereunder,
as reflected on Assignor’s books and records.

 

3.       The
Assignee (a) confirms that it has received copies of the Credit Agreement and the other Loan Documents, together with copies of
the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Assignment Agreement; (b) agrees that it will, independently and without reliance
upon Agent, Assignor, or any other Lender, based upon such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking any action under the Loan Documents; (c) appoints and authorizes
the Agent to take such action as agent on its behalf and to exercise such powers under the Loan Documents as are delegated to
Agent by the terms thereof, together with such powers as are reasonably incidental thereto; (d) agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it
as a Lender; [(e) represents that it is [(x) not an Irish Qualifying Lender,] [(y) an Irish Qualifying Lender (other than an Irish
Treaty Lender),] [(z) an Irish Treaty Lender], (f) attaches the forms prescribed by the Internal Revenue Service of the United
States certifying as to the Assignee's status for purposes of determining exemption from United States withholding taxes with
respect to all payments to be made to the Assignee under the Credit Agreement or such other documents as are necessary to indicate
that all such payments are subject to such rates at a rate reduced by an applicable tax treaty or (g) if it is an Irish Treaty
Lender, agrees to complete any procedural formalities necessary for the Borrower to obtain an authorization to make relevant payments
without any withholding tax.]

 

    A-1

     

    

4.       Following
the execution of this Assignment Agreement by the Assignor and Assignee, the Assignor will deliver this Assignment Agreement to
the Agent for recording by the Agent. The effective date of this Assignment (the “Settlement Date”) shall be
the latest to occur of (a) the date of the execution and delivery hereof by the Assignor and the Assignee, (b) the receipt by
Agent for its sole and separate account a processing fee in the amount of $3,500 (if required by the Credit Agreement), (c) the
receipt of any required consent of the Agent, and (d) the date specified in Annex I.

 

5.       As
of the Settlement Date (a) the Assignee shall be a party to the Credit Agreement and, to the extent of the interest assigned pursuant
to this Assignment Agreement, have the rights and obligations of a Lender thereunder and under the other Loan Documents, and (b)
the Assignor shall, to the extent of the interest assigned pursuant to this Assignment Agreement, relinquish its rights and be
released from its obligations under the Credit Agreement and the other Loan Documents, provided, however, that nothing contained
herein shall release any assigning Lender from obligations that survive the termination of this Agreement, including such assigning
Lender’s obligations under Article 15 and Section 17.9(a) of the Credit Agreement.

 

6.       Upon
the Settlement Date, Assignee shall pay to Assignor the Purchase Price (as set forth in Annex I). From and after the Settlement
Date, Agent shall make all payments that are due and payable to the holder of the interest assigned hereunder (including payments
of principal, interest, fees and other amounts) to Assignor for amounts which have accrued up to but excluding the Settlement
Date and to Assignee for amounts which have accrued from and after the Settlement Date. On the Settlement Date, Assignor shall
pay to Assignee an amount equal to the portion of any interest, fee, or any other charge that was paid to Assignor prior to the
Settlement Date on account of the interest assigned hereunder and that are due and payable to Assignee with respect thereto, to
the extent that such interest, fee or other charge relates to the period of time from and after the Settlement Date.

 

7.       This
Assignment Agreement may be executed in counterparts and by the parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. This Assignment
Agreement may be executed and delivered by telecopier or other facsimile transmission all with the same force and effect as if
the same were a fully executed and delivered original manual counterpart.

 

8.       THIS
ASSIGNMENT AGREEMENT SHALL BE SUBJECT TO THE PROVISIONS REGARDING CHOICE OF LAW AND VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE
SET FORTH IN SECTION 12 OF THE CREDIT AGREEMENT, AND SUCH PROVISIONS ARE INCORPORATED HEREIN BY THIS REFERENCE, MUTATIS
MUTANDIS.

 

    A-2

     

    

ANNEX FOR
ASSIGNMENT AND ACCEPTANCE

 

ANNEX I

 

		1.	Borrower:
                                         Pernix Ireland Pain Limited, a private company limited by shares incorporated in Ireland
                                         (the “Borrower”).

 

		2.	Name and
                                         Date of Credit Agreement:

 

Credit
Agreement dated as of July 21, 2017 (as amended, restated, supplemented, or otherwise modified from time to time, the “Credit
Agreement”) by and among the Borrower, the lenders party thereto as “Lenders”, and Cantor Fitzgerald Securities,
as administrative agent for each member of the Lender Group (in such capacity, together with its successors and assigns in such
capacity, the “Agent”).

 

	3.	Date of Assignment Agreement:		 	 
	 	 	 	 	 
	4.	Amounts:		 	 
	 	 	 	 	 
		a.          Assigned Amount of Revolver Commitment	$	 	 
	 	 	 	 	 
		b.         Assigned Amount of Revolving Loans	$	 	 
	 	 	 	 	 
	5.	Settlement Date:		 	 
	 	 	 	 	 
	6.	Purchase Price	$	 	 
	 	 	 	 	 
	7.	Notice and Payment Instructions, etc.	 	 	 

 

	Assignee:	 	Assignor:
	 	 	 
	 	 	 
	 	 	 

 

 

    A-3

     

    

EXHIBIT
B-1

 

[FORM
OF] NOTICE OF BORROWING

 

[NOTE:
No Notice of Borrowing shall be delivered to the Agent or any Lender during the hours of 9:00 a.m. through 4.00 p.m. New York
City time] 

 

Cantor Fitzgerald Securities

 

Attention: [●]

Tel: [●]

Email: [●]

 

[●][●],
20[●] 1

 

Ladies and Gentlemen:

 

Reference
is hereby made to that certain Credit Agreement dated as of July 21, 2017 (as amended, restated, amended and restated, supplemented
or otherwise modified from time to time and in effect on the date hereof, the “Credit Agreement”), by and among,
Pernix Ireland Pain Limited, a private company limited by shares incorporated in Ireland (the “Borrower”),
the Lenders from time to time party thereto and Cantor Fitzgerald Securities, as administrative agent for each member of the Lender
Group. Terms defined in the Credit Agreement are used herein with the same meanings unless otherwise defined herein.

 

The undersigned
hereby gives you notice pursuant to Section 2.3(a) of the Credit Agreement that it requests the Borrowings under the Credit
Agreement to be made on [●], 20[●], and in that connection sets forth below the terms on which the Borrowings are
requested to be made:

 

 

		(A)	Borrower:
                                         Pernix Ireland Pain Limited

 

	(B)	  Funding Date (which shall be a Business Day)	[●]

 

	(C)	Aggregate Amount of Borrowing	$[●]

  

		(D)	Amount,
                                         Account Number and Location

 

	Wire Transfer Instructions:
	Amount	$[●]
	Bank:	[●]
	ABA No.:	[●]
	Account No.:	[●]

 

 

 

 

 

1
The Agent must be notified in writing, which must be received by the Agent no later
than 11:00 a.m. on the Business Day that is four (4) Business Days prior to the requested Funding Date; provided, that
(i) Agent may, in its sole discretion, elect to accept as timely requests that are received later than 11:00 a.m. on the applicable
Business Day and (ii) no Borrowing Request shall be delivered to the Agent or any Lender during the hours of 9:00 a.m. through
4.00 p.m. New York City time, on any Business Day. In such circumstances, the Borrower agrees that any such telephonic notice
will be confirmed in writing within one (1) Business Day of the giving of such telephonic notice, but the failure to provide such
written confirmation shall not affect the validity of the request.

 

 

 

    B-1

     

    

	Account Name:	[●]
	 	 

 

[The undersigned hereby certifies
that the following statements are true on the date hereof, and will be true on the Funding Date:

 

(A)             
The representations and warranties of the Loan Parties set forth in the Credit Agreement and the other Loan Documents are
true and correct in all material respects on and as of the date of the Borrowing with the same effect as though such representations
and warranties had been made on and as of the date of such Borrowing; provided that to the extent that any representation
and warranty specifically refers to a given date or period, it is true and correct in all material respects as of such earlier
date or for such period.

 

(B)             
At the time of and immediately after giving effect to the Borrowing, no Default or Event of Default shall have occurred
and be continuing.

 

[Signature
Page Follows]

 

    B-2

     

    

	 	PERNIX IRELAND PAIN LIMITED
	 	 
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 

    B-3

     

    

EXHIBIT
C-1

 

[FORM
OF] COMPLIANCE CERTIFICATE

 

[on

 

Borrower’s
letterhead]

 

To:  Cantor Fitzgerald Securities

[•]

[•]

Attn: [•]

 

Re:                    Compliance Certificate
dated ____________ __, 20__

 

Ladies and Gentlemen:

 

Reference
is made to that certain Credit Agreement dated as of July 21, 2017 (as amended, restated, amended and restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among, Pernix Ireland Pain Limited, a
private company limited by shares incorporated in Ireland (the “Borrower”), the Lenders from time to time party
thereto and Cantor Fitzgerald Securities, as administrative agent for each member of the Lender Group (in such capacity, together
with its successors and assigns in such capacity, the “Agent”). Capitalized terms used herein and not otherwise
defined herein shall have the meanings ascribed to them in the Credit Agreement.

 

Pursuant
to Section 5.1 of the Credit Agreement, the undersigned chief financial officer of the Borrower, hereby certifies as of
the date hereof that:

 

1.       The
financial information of Parent and its Subsidiaries furnished in Schedule 1 attached hereto, has been prepared in accordance
with GAAP (except, in the case of unaudited financial statements, for year-end audit adjustments and the lack of footnotes), and
fairly presents in all material respects the financial condition of Parent and its Subsidiaries as of the date set forth therein.

 

2.       Such
officer has reviewed the terms of the Credit Agreement and has made, or caused to be made under his/her supervision, a review
in reasonable detail of the transactions and financial condition of the Borrower during the accounting period covered by the financial
statements delivered pursuant to Section 5.1 of the Credit Agreement.

 

3.       Such
review has not disclosed the existence on and as of the date hereof, and the undersigned does not have knowledge of the existence
as of the date hereof, of any event or condition that constitutes a Default or Event of Default, except for such conditions or
events listed on Schedule 2 attached hereto, in each case specifying the nature and period of existence thereof and what
action the Borrower has taken, is taking, or proposes to take with respect thereto.

 

4.       Schedule
3 sets forth, with respect to the Borrower, all new Patents, Trademarks or Copyrights of the Borrower that are registered
or the subject of pending applications for registrations, and all newly executed or amended Intellectual Property Licenses that
are material to the conduct of the

 

    C-4

     

    

Borrower’s
business, in each case, which were acquired, registered, or for which applications for registration were filed by the Borrower
since the delivery of the previous Compliance Certificate and any statement of use or amendment to allege use with respect to
intent-to-use trademark applications.

 

 

 

[Signature
page follows.]

 

 

 

 

    

     

    

SCHEDULE
1

 

Financial
Information

 

 

 

 

 

    

     

    

SCHEDULE
2

 

Default
or Event of Default

 

    

     

    

SCHEDULE
3

 

Intellectual
Property Report

 

    

     

    

EXHIBIT
I-1

 

Form
of Intercompany Subordination Agreement

 

[see
attached]

 

    

     

    

EXHIBIT
N-1

 

Form
of Note

 

[see
attached]

 

    

     

    

EXHIBIT
P-1

 

[FORM OF] PERFECTION CERTIFICATE

 

July
[__], 2017

 

With
reference to (a) the Credit Agreement (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), dated as of July 21, 2017 among Pernix Ireland Pain Limited, a private company limited by shares incorporated
in Ireland (the “Borrower”), the lenders party thereto from time to time and Cantor Fitzgerald Securities,
as Agent (capitalized terms defined therein being used herein and not defined have the meaning assigned to such terms therein
(whether defined expressly therein or by reference to another document)) and (b) the Security Agreement and any other Loan Document
that purports to create a Lien on any Collateral from the Borrower or any of its subsidiaries (the Borrower, together with any
such subsidiary that grants a security interest in such Collateral to secure the Obligations, collectively, the “Grantors”
and each, individually, a “Grantor”), the undersigned, solely in the capacity of a duly authorized officer
of the Borrower, certifies to the Agent as of the date hereof as follows:

 

Section
1.Legal Names, Organizations and Jurisdictions of Organization or Incorporation. (a) The exact legal name of each Grantor,
as such name appears in its respective certificate of incorporation or any other organizational document, is set forth in Schedule
1(a). Each Grantor is (i) the type of entity disclosed next to its name in Schedule 1(a), (ii) is incorporated or formed
in its jurisdiction of organization or formation, as applicable, listed in Schedule 1(a) and (iii) a registered organization
except to the extent disclosed in Schedule 1(a).

 

(b)
Except as set forth on Schedule 1(b), no Grantor has, within the past five years preceding the date hereof, changed its
legal name, jurisdiction of organization or incorporation or its corporate structure (e.g., by merger or consolidation
with any other Person or acquisition of all equity interests of a Person or all or substantially all of the assets of (or all
or substantially all the assets constituting a business unit, division, product line or line of business of) another Person (other
than any other Loan Party)).

 

Section
2.Organizational and Federal Taxpayer Identification Numbers. Set forth on Schedule 2 is (i) the organizational
identification number, if any, assigned by the jurisdiction of organization, formation or incorporation, as applicable, of each
Grantor, (ii) the address (including street address, city, county and state) of the chief executive office of each Grantor or
the registered office of each Grantor, if applicable, at any time in the past five years and (iii) the U.S. federal taxpayer identification
number of each Grantor.

 

Section
3.UCC Filings.  (a) Set forth on Schedule 3(a) is a true copy of a file search report from the central
UCC filing office in each jurisdiction identified in Schedule 1(a) above (searches in local filing offices, if any, are
not required).

 

(b)
Financing statements have been prepared for filing by counsel to the Agent in the proper Uniform Commercial Code filing office
in the jurisdiction in which each Grantor is

 

    

     

    

located.
Set forth on Schedule 3(b) is a true and correct list of each such filing office in which such filing is to be made.

 

Section
4.Intellectual Property. (a) Set forth on Schedule 4(a) is a complete and correct list of all registered Copyrights
applicable to any of the Products or otherwise owned by any Grantor.

 

(b)
Set forth on Schedule 4(b) is a complete and correct list of all licenses of Intellectual Property (including Patent Licenses)
entered into by any Grantor applicable to any of the Products.

 

(c)
Set forth on Schedule 4(c) is a complete and correct list of all Patents applicable to any of the Products or otherwise
owned by each Grantor.

 

(d)
Set forth on Schedule 4(d) is a complete and correct list of all registered Trademarks applicable to any of the Products
or otherwise owned by each Grantor.

 

Section
5.Deposit Accounts and Securities Accounts. Set forth on Schedule 5 is a complete and correct list of each
Grantor’s Deposit Accounts and Securities Accounts.

 

Section
6.Real Property. Set forth on Schedule 6 is a true and correct list of (i) all material real property owned,
leased or otherwise held by any Grantor (including fixtures) and (ii) the county or other jurisdiction in which a mortgage
(if any) and, if applicable, a fixture filing on each mortgage is to be recorded and/or filed.

 

Section
7.Investment-Related Property. Set forth on Schedule 7 is a true and correct list, for each Grantor, of all
the issued and outstanding stock, partnership interests, limited liability company membership interests or other Equity Interests
of the Borrower or any Subsidiary or (to the extent such Equity Interests are certificated) of any other Person owned, beneficially
or of record, by such Grantor, specifying the issuer and certificate number (if any) of, and the number and percentage of ownership
represented by, such Equity Interests.

 

Section
8. Commercial Tort Claims. Set forth on Schedule 8 is a true and correct list of Commercial Tort Claims (as
defined in the Code) held by any Grantor, including a brief description thereof.

 

Section
9.Letter of Credit Rights. Set forth on Schedule 9 is a true and correct list of all letters of credit issued
in favor of any Grantor, as beneficiary thereunder.

 

Section
10.Negotiable Collateral, Investment Property, or Chattel Paper. Set forth on Schedule 10 is a true and correct
list of all Negotiable Collateral, Investment Property, or Chattel Paper of each Grantor evidencing Proceeds of Collateral having
an aggregate value or face amount of $250,000 or more.

 

Section
11.Insurance. Set forth on Schedule 11 is a true and correct list of all insurance policies maintained by each
Grantor.

 

    2

     

    

[signature
page follows]

 

 

 

 

    3

     

    

IN WITNESS
WHEREOF, the undersigned parties hereto have caused this Perfection Certificate to be executed and delivered as of the day and
year first above written.

 

	 	PERNIX IRELAND PAIN
        LIMITED

        

        

        

	 	 
	 	By:
	 	 
	 	 
	 	Name:	 
	 	Title:	 

 

 

 

 

 

 

 

[Signature
Page to Term Loan Perfection Certificate]

 

    

     

    

Schedule
1(a)

 

Legal Names,
Organizations and Jurisdictions of Organization or Incorporation

 

	Grantors
    Legal Name	Jurisdiction
    of Organization / Formation / Incorporation	Type
    of Organization
	 	 	 

 

 

 

    

     

    

Schedule
1(b)

 

Changes to
Legal Name, Jurisdiction or Organization

 

	Grantor	Corporate
    Name of Predecessor Entity	Description
    of Change

    (and date)
	 	 	 

 

 

 

 

    3

     

    

Schedule
2

 

Organizational
and Federal Taxpayer Identification Numbers

 

	Grantor	Organizational
    Identification Number	Address
    of Chief Executive Office / Registered Office	Federal
    Taxpayer Identification Number
	 	 	 	 

 

 

 

 

    

     

    

Schedule
3(a)

 

UCC
File Search Report

 

(see
attached)

 

    

     

    

Schedule
3(b)

 

Organizational
and Federal Taxpayer Identification Numbers

 

	Grantor	UCC
    Filing Office / County Recorder’s Office
	 	 

 

 

 

    

     

    

Schedule
4(a)

 

Registered
Copyrights

 

	Grantor	Copyright
	 	 

 

 

 

    

     

    

Schedule
4(b)

 

Intellectual
Property Licenses

 

	Grantor	IP
    Licenses
	 	 

 

 

 

    

     

    

Schedule
4(c)

 

Patents

 

	Grantor	Patents
	 	 

 

 

 

 

    

     

    

Schedule
4(d)

 

Registered
Trademarks

 

	Grantor	Registered
    Trademarks
	 	 

 

 

 

 

    

     

    

Schedule
5

 

Deposit Accounts
and Securities Accounts

 

	Grantor	Name
    of Financial Institution Where Account Maintained	Account
    Number	Description
    of Account
	 	 	 	 

 

 

 

 

    

     

    

Schedule
6

 

Real Property

 

	Grantor	Location	Estimated
    Value
	 	 	 

 

 

 

 

    

     

    

Schedule
7

 

Investment-Related
Property

 

	Grantor	Issuer	Stock
    Certificate No.	If
    Certificated, Number of Shares and Class of Stock	Percentage
    Ownership Represented by Pledged Equity Interests	Total
    Percentage of the Issuer Owned by the Grantor
	 	 	 	 	 	 

 

 

 

 

    

     

    

Schedule
8

 

Commercial
Tort Claims

 

	Grantor	Commercial
    Tort Claim
	 	

 

 

 

 

 

    P-1

     

    

Schedule
9

 

Letter of
Credit Rights

 

	Grantor	Letter
    of Credit 
	 	 

 

 

 

 

    

     

    

Schedule
10

 

Negotiable
Collateral, Investment Property, or Chattel Paper

 

	Grantor	Negotiable
    Instrument, Investment Property or Chattel Paper
	 	 

                                                                                 

 

 

    

     

    

 

Schedule
11

 

Insurance

 

	Grantor	InsuranceExhibit 10.3

 

 

Amendment
no. 2 

to
THE interim settlement agreement

BETWEEN
pERNIX AND gsk

 

This
AMENDMENT NO. 2 to the interim settlement agreement (this “Amendment No.
2”), dated as of July 20, 2017, is entered into by and between Pernix Therapeutics Holdings, Inc. (“Pernix
Holdings”) and Pernix Ireland Limited (“Pernix Ireland” and together with Pernix Holdings, “Pernix”),
on the one hand, and Glaxo Group Limited, GlaxoSmithKline LLC, GlaxoSmithKline Intellectual Property Holdings Limited and GlaxoSmithKline
Intellectual Property Management Limited (collectively, “GSK”), on the other. Each of the foregoing shall be
referred to herein as a “Party” and collectively as the “Parties.”

 

WITNESSETH:

 

WHEREAS,
the Parties entered into an Interim Settlement Agreement, dated July 27, 2015, which was amended pursuant to Amendment No. 1 to
the Interim Settlement Agreement dated as of March 17, 2017 (as amended, restated, supplemented or otherwise modified from time
to time, the “Interim Settlement Agreement”).

 

WHEREAS,
Pernix has made certain payments to GSK under the Interim Settlement Agreement; and

 

WHEREAS,
the Parties agree to amend Section 4 of the Interim Settlement Agreement to permit payment by Pernix to GSK of a reduced amount
on an accelerated timetable in full satisfaction of the remaining Award, subject to the terms and conditions of this Amendment
No. 2.

 

Now,
therefore, in consideration of the foregoing,
the covenants and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties agree as follows:

 

Section
1.                Certain Defined Terms.

 

Capitalized
terms used in this Amendment No. 2 without definition shall have the meanings set forth in the Interim Settlement Agreement.

 

Section
2.                Amendments.

 

(a)               
Section 4 of the Interim Settlement Agreement is hereby amended and restated to read in its entirety as follows:

 

a.                  
The Parties acknowledge and agree that (i) as of June 30, 2017 the total outstanding balance of the Award is $21,200,000 (the
“Current Award Balance”), payable to GSK by Pernix in accordance with the terms of this Agreement as amended
by Amendment No. 1 hereto, and (ii) the Current Award Balance is unconditionally owed to GSK by Pernix, without offset, defense
or counterclaim of any kind, nature or description.

 

b.                 
In consideration for GSK’s agreement set forth in Section 4(e), Pernix agrees to make the following payments to GSK on or
before the dates noted in full

 

     

     

    

satisfaction
of the Award, which for the avoidance of doubt shall be credited against and reduce the outstanding balance of the Award:

 

(i)          
a payment in the amount of Three Million Four Hundred Fifty Thousand Dollars ($3,450,000), due on or before the date that is ten
(10) business days after the closing of a financing transaction (the “Highbridge Transaction”) with Highbridge
Capital Management, LLC (such closing date, the “Highbridge Closing Date” and such payment, the “First
Scheduled Payment”);

 

(ii)        
a payment in the amount of Three Million Two Hundred Thousand Dollars ($3,200,000), due on or before December 31, 2017 (the “Second
Scheduled Payment” and, together with the First Scheduled Payment, the “Scheduled Payments”);

 

(iii)      
if, on or before September 30, 2019, Pernix Holdings redeems or repurchases any of its 4.25% Convertible Notes due 2021 (the “Convertible
Notes”), other than in connection with the Highbridge Transaction, for a cash payment of greater than 31.00 cents for
every one dollar of principal amount of Convertible Notes so redeemed or repurchased, Pernix shall, no later than five (5) business
days after such payment is made to holders of the Convertible Notes, make an additional cash payment to GSK (the “Catch-Up
Payment”) equal to such excess recovery multiplied by the Current Award Balance, up to a maximum Catch-Up Payment amount
not to exceed Two Million Dollars ($2,000,000) (the “Catch-Up Payment Cap”);

 

(iv)      
if, on or before September 30, 2019, Pernix Holdings exchanges any Convertible Notes, other than in connection with the Highbridge
Transaction, for new notes or similar instruments (“Exchange Notes”) that have a face value providing such
holders a recovery that is greater than 31.00 cents for every one dollar of principal amount of Convertible Notes exchanged by
such holders, Pernix Holdings shall, no later than five (5) business days after the date such Exchange Notes are issued to such
holders, issue to GSK an amount of Exchange Notes (the “Catch-Up Notes”) with a face value equal to such excess
recovery multiplied by the Current Award Balance, up to a maximum face value of Catch-Up Notes not to exceed Two Million Dollars
($2,000,000) (the “Catch-Up Notes Cap”); and

 

(v)        
If, on or before September 30, 2019, Pernix Holdings consummates a single transaction that involves both a partial cash redemption
or repurchase and a partial exchange of Convertible Notes providing the participating holders of Convertible Notes with an aggregate
recovery that is greater than 31.00 cents for every one dollar of principal amount of Convertible Notes tendered in such transaction,
GSK shall, at its option, elect to receive either a Catch-Up Payment or Catch-Up Notes, in each case equal to such excess recovery
multiplied by the Current Award Balance, and in each case subject to the Catch-Up Payment Cap or the Catch-Up Notes Cap, as applicable.

 

(vi)      
Payment by Pernix of a Catch-Up Payment shall relieve Pernix Holdings of any obligation to issue Catch-Up Notes, and the issuance
by Pernix Holdings of Catch-Up Notes shall relieve Pernix of any obligation to make a Catch-Up Payment.

 

    2 

     

    

In
no event shall Pernix be obligated both to make a Catch-Up Payment and to issue Catch-Up Notes.

 

c.                  [RESERVED].

 

d.                 
[RESERVED].

 

e.                  
GSK agrees that, for so long as the provisions of Section 4 of this Agreement are complied with, enforcement of the Award shall
be stayed, and GSK shall not seek to enforce the Award or otherwise exercise any rights or remedies in respect of the Award (the
“Stay”). The Stay is limited in nature and shall not be deemed or construed to constitute a waiver of any rights
and remedies with respect to the Award. The Parties agree that the running of all statutes of limitation, the doctrine of laches,
and any other time-based defenses applicable to all claims, remedies or causes of action that GSK may be entitled to take or bring
in order to enforce its rights and remedies with respect to the Award are, to the fullest extent permitted by law, tolled and
suspended for so long as the Stay remains in effect. GSK further agrees that, notwithstanding anything to the contrary in this
Agreement, any outstanding balance of the Award shall be unconditionally and irrevocably forgiven on the earlier of (i) the first
date on which Pernix has made the Scheduled Payments and has either made the Catch-Up Payment or issued the Catch-Up Notes, as
applicable or (ii) October 1, 2019, if Pernix has made the Scheduled Payments and is not obligated to make the Catch-Up Payment
or to issue the Catch-Up Notes by such date, so long as each such Scheduled Payment and any required Catch-Up Payments are made
and any required Catch-Up Notes are issued in each case in accordance with the terms and conditions of this Agreement.

 

f.                  
If Pernix violates any covenant that is included in Section 4 of this Agreement or if either Pernix Holdings or Pernix Ireland
commences or is the subject of any insolvency proceeding at any time before the outstanding balance of the Award is forgiven pursuant
to this Section 4: (i) all amounts outstanding in respect of the Award at such time after giving effect to payments made to date
shall automatically be immediately due and payable, and (ii) the Stay shall automatically and immediately terminate and be of
no further force or effect and GSK shall be free in its sole and absolute discretion, without limitation, to proceed to enforce
any and all of its rights and remedies with respect to the Award.

 

(b)              
Schedule 1 of the Interim Settlement Agreement is hereby deleted in its entirety.

 

Section
3.                Effectiveness of this Amendment
No. 2.

 

(a)               
This Amendment shall become effective upon the execution and delivery of this Amendment by the Parties.

 

(b)              
Notwithstanding anything to the contrary herein, if the Highbridge Closing Date does not occur on or before August 15, 2017, then
this Amendment No. 2 shall have no further effect, and the Interim Settlement Agreement shall immediately and automatically revert
to its form prior to the effectiveness of this Amendment No. 2 without any further action by the Parties; provided that
the Award Payment that was due by June 30, 2017 under the Settlement

 

    3 

     

    

Agreement
in its form prior to the effectiveness of this Amendment No. 2 shall be due no later than August 22, 2017.

 

Section
4.                Representations and Warranties.

 

Each
of the Parties hereby represents and warrants that each of the following statements is true, accurate and complete as to such
Party as of the date hereof:

 

(a)               
The execution, delivery and performance of this Amendment No. 2 and its obligations hereunder (and under the Interim Settlement
Agreement as amended hereby) have been duly authorized by all necessary corporate or limited liability company action, as applicable,
on its part.

 

(b)              
This Amendment No. 2 has been duly executed and delivered by it and constitutes, when executed and delivered by it, a legal, valid
and binding obligation of it, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other laws affecting creditors’ rights generally and subject to general principles
of equity, regardless of whether considered in a proceeding in equity or at law and implied covenants of good faith and fair dealing.

 

(c)               
The execution, delivery and performance of this Amendment No. 2 (and the Interim Settlement Agreement as amended hereby) by it
does not and shall not: (i) violate any provision of law, rule or regulation applicable to it; (ii) violate its certificate of
incorporation, bylaws, or other organizational documents or those of any of its subsidiaries; or (iii) conflict with, result in
a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation to which
it or any of its subsidiaries is a party.

 

(d)              
Such Party has carefully read and fully understands all of the terms and conditions of this Amendment No. 2.

 

(e)               
Such Party has consulted with, or had a full and fair opportunity to consult with, an attorney regarding the terms and conditions
of this Amendment No. 2.

 

(f)               
Such Party has had a full and fair opportunity to participate in the drafting of this Amendment No. 2.

 

(g)              
Such Party is freely, voluntarily and knowingly entering into this Amendment No. 2.

 

(h)              
In entering into this Amendment No. 2, such Party has not relied upon any representation, warranty, covenant or agreement not
expressly set forth herein.

 

Section
5.                Miscellaneous.

 

(a)               
The provisions contained in paragraph 5(d) (Jurisdiction and Venue, Governing Law) of the Interim Settlement Agreement are incorporated
herein by reference to the same extent as if reproduced herein in their entirety; provided that: (a) any reference to “this
Agreement” in such provision of the Interim Settlement Agreement shall be deemed for purposes of this Amendment No. 2 to
be a reference to “this Amendment No. 2;” and (b) any other necessary changes relating to syntax, section or article
references and other similar matters shall be deemed made.

 

    4 

     

    

(b)              
This Amendment No. 2 may be executed in one or more counterparts, each of which shall be deemed an original, and all of which
taken together shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment
No. 2 by facsimile transmission or by electronic mail in portable document format (.pdf) shall be effective as delivery of an
original executed counterpart of this Amendment No. 2.

 

(c)               
Except as set forth herein, the terms and provisions of the Interim Settlement Agreement shall be unchanged by this Amendment
No. 2 and shall remain in full force and effect.

 

 

 

[Remainder
of Page Left Intentionally Blank]

 

 

    5 

     

    

IN
WITNESS WHEREOF, the Parties have executed and delivered this Amendment No. 2 as of the day and year first above written.

 

 

	 	PERNIX THERAPEUTICS HOLDINGS, INC.
	 	 	 
	 	 	 
	 	By:	/s/ K. R. Pina
	 	 	 Name: K. R. Pina
	 	 	 Title: Corporate Secretary
	 	 	 
	 	 	 
	 	 	 
	 	PERNIX IRELAND LIMITED
	 	 	 
	 	 	 
	 	By:	/s/ John A. Sedor
	 	 	 Name: John A. Sedor
	 	 	 Title: Director

 

 

 

     

     

    

 

  

 

	 	GLAXO GROUP LIMITED
	 	 	 
	 	 	 
	 	By:	/s/ Paul Williamson
	 	 	 Name: Paul Williamson
	 	 	 Title: Authorised Signatory
	 	 	 
	 	 	 
	 	 	 
	 	GLAXOSMITHKLINE LLC
	 	 	 
	 	 	 
	 	By:	/s/ Paul Williamson
	 	 	 Name: Paul Williamson
	 	 	 Title: Authorised Signatory
	 	 	 
	 	 	 
	 	GLAXOSMITHKLINE INTELLECTUAL PROPERTY HOLDINGS LIMITED
	 	 	 
	 	 	 
	 	By:	/s/ Justin T. Huang
	 	 	 Name: Justin T. Huang
	 	 	 Title: Assistant Secretary
	 	 	 
	 	 	 
	 	GLAXOSMITHKLINE INTELLECTUAL PROPERTY MANAGEMENT LIMITED
	 	 	 
	 	 	 
	 	By:	/s/ Paul Williamson
	 	 	 Name: Paul Williamson
	 	 	 Title: Authorised Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]