Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
 AGREEMENT AND
PLAN OF MERGER 
 by and among 

DAVA PHARMACEUTICALS, INC., 

GENERICS INTERNATIONAL (US), INC., 

GENERICS MERGER SUB INC., 
 ENDO
PHARMACEUTICALS INC., SOLELY FOR PURPOSES OF SECTION 6.10 HEREOF 
 THE STOCKHOLDERS PARTY HERETO 

And 
 DAVA SR, LLC, AS THE
STOCKHOLDERS’ REPRESENTATIVE 
 Dated as of June 24, 2014 

 TABLE OF CONTENTS 
  

							
	Article I	  
	
	DEFINITIONS; INTERPRETATION	  
			
	 Section 1.1
	  	Definitions Generally	  	 	1	  
	 Section 1.2
	  	Interpretation Generally	  	 	2	  
	
	Article II	  
	
	 THE MERGER; CLOSING; EFFECT ON THE SECURITIES OF THE COMPANY;

POST-CLOSING ADJUSTMENTS
	   
   

			
	 Section 2.1
	  	The Merger	  	 	3	  
	 Section 2.2
	  	Closing	  	 	3	  
	 Section 2.3
	  	Effective Time	  	 	3	  
	 Section 2.4
	  	Effects	  	 	4	  
	 Section 2.5
	  	Certificate of Incorporation and Bylaws	  	 	4	  
	 Section 2.6
	  	Directors	  	 	4	  
	 Section 2.7
	  	Officers	  	 	4	  
	 Section 2.8
	  	Merger Consideration	  	 	4	  
	 Section 2.9
	  	Effect on Company Securities	  	 	6	  
	 Section 2.10
	  	Appraisal Rights	  	 	8	  
	 Section 2.11
	  	Post-Closing Merger Consideration Adjustment	  	 	8	  
	 Section 2.12
	  	Escrow Amounts	  	 	13	  
	 Section 2.13
	  	Milestone Payments	  	 	14	  
	
	Article III	  
	
	REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS PARTY HERETO	  
			
	 Section 3.1
	  	Binding Obligations	  	 	14	  
	 Section 3.2
	  	No Defaults or Conflicts	  	 	15	  
	 Section 3.3
	  	Title to Company Stock; Shareholder Agreements	  	 	16	  
	 Section 3.4
	  	Broker’s Fees	  	 	16	  
	 Section 3.5
	  	Absence of Litigation	  	 	16	  
	 Section 3.6
	  	Consent to Transactions	  	 	16	  
	
	Article IV	  
	
	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  
			
	 Section 4.1
	  	Organization and Qualification	  	 	17	  
	 Section 4.2
	  	Subsidiaries	  	 	17	  
	 Section 4.3
	  	Corporate Authorization	  	 	17	  

							
	 Section 4.4
	  	Binding Effect	  	 	17	  
	 Section 4.5
	  	Regulatory Approvals and Non-Governmental Consents	  	 	18	  
	 Section 4.6
	  	Non-Contravention	  	 	18	  
	 Section 4.7
	  	Funded Indebtedness	  	 	18	  
	 Section 4.8
	  	Assets; Capitalization; Equity Interests	  	 	19	  
	 Section 4.9
	  	Financial Statements	  	 	20	  
	 Section 4.10
	  	Litigation and Claims	  	 	20	  
	 Section 4.11
	  	Compliance with Law; Regulatory Matters	  	 	21	  
	 Section 4.12
	  	Intellectual Property	  	 	21	  
	 Section 4.13
	  	Employee Benefits	  	 	23	  
	 Section 4.14
	  	Employment Matters	  	 	24	  
	 Section 4.15
	  	Material Contracts	  	 	24	  
	 Section 4.16
	  	Real Property	  	 	26	  
	 Section 4.17
	  	Taxes	  	 	27	  
	 Section 4.18
	  	Insurance	  	 	29	  
	 Section 4.19
	  	Finders’ Fees	  	 	29	  
	 Section 4.20
	  	Environmental Compliance	  	 	29	  
	 Section 4.21
	  	Absence of Certain Changes or Events	  	 	30	  
	 Section 4.22
	  	No Undisclosed Liabilities	  	 	30	  
	 Section 4.23
	  	Permits and Licenses	  	 	30	  
	 Section 4.24
	  	Related Party Transactions	  	 	31	  
	 Section 4.25
	  	Suppliers and Customers	  	 	31	  
	 Section 4.26
	  	Regulatory Matters	  	 	31	  
	 Section 4.27
	  	Improper Payments	  	 	33	  
	 Section 4.28
	  	Limitations on Representations and Warranties	  	 	34	  
		
	Article V	  			
		
	REPRESENTATIONS AND WARRANTIES OF BUYER AND MERGER SUB	  			
			
	 Section 5.1
	  	Organization and Qualification	  	 	34	  
	 Section 5.2
	  	Merger Sub	  	 	34	  
	 Section 5.3
	  	Corporate Authorization	  	 	35	  
	 Section 5.4
	  	Binding Effect	  	 	35	  
	 Section 5.5
	  	Regulatory Approvals and Non-Governmental Consents	  	 	35	  
	 Section 5.6
	  	Non-Contravention	  	 	35	  
	 Section 5.7
	  	Finders’ Fees	  	 	36	  
	 Section 5.8
	  	Litigation and Claims	  	 	36	  
	 Section 5.9
	  	Financial Capability	  	 	36	  
	 Section 5.10
	  	Solvency	  	 	36	  
	 Section 5.11
	  	Limitations on Representations and Warranties	  	 	37	  

							
	
	Article VI	  
	
	COVENANTS	  
			
	 Section 6.1
	  	Access and Reports	  	 	37	  
	 Section 6.2
	  	Efforts to Consummate; Certain Governmental Matters	  	 	37	  
	 Section 6.3
	  	Payoff Letters	  	 	40	  
	 Section 6.4
	  	Interim Operation Covenants of the Company	  	 	40	  
	 Section 6.5
	  	Public Disclosure; Confidentiality	  	 	44	  
	 Section 6.6
	  	Directors’ and Officers’ Exculpation; Indemnification	  	 	45	  
	 Section 6.7
	  	Updates; Changes in Circumstance	  	 	46	  
	 Section 6.8
	  	No Shop	  	 	46	  
	 Section 6.9
	  	Intentionally Left Blank	  	 	47	  
	 Section 6.10
	  	Endo Pharmaceuticals Inc	  	 	47	  
	 Section 6.11
	  	Transfer of Domain Name Registrations	  	 	47	  
	 Section 6.12
	  	Update of Schedule D	  	 	47	  
	
	Article VII	  
	
	EMPLOYMENT MATTERS	  
			
	 Section 7.1
	  	Employee Benefits; 280G Shareholder Approval	  	 	47	  
	 Section 7.2
	  	Credit for Service and Benefit Accrual	  	 	49	  
	 Section 7.3
	  	WARN	  	 	49	  
	 Section 7.4
	  	No Amendment	  	 	50	  
	
	Article VIII	  
	
	TAX MATTERS	  
			
	 Section 8.1
	  	Tax Returns	  	 	50	  
	 Section 8.2
	  	Transfer Taxes	  	 	51	  
	 Section 8.3
	  	Tax Indemnification	  	 	52	  
	 Section 8.4
	  	Contest Provisions	  	 	53	  
	 Section 8.5
	  	Buyer’s Receiving or Using of Refunds and Overpayments	  	 	54	  
	 Section 8.6
	  	Assistance and Cooperation	  	 	54	  
	 Section 8.7
	  	Closing Date Course of Business; Closing of the Tax Year	  	 	55	  
	 Section 8.8
	  	Maintenance of Buyer’s Books and Records	  	 	55	  
	 Section 8.9
	  	Adjustment to Merger Consideration	  	 	55	  
	 Section 8.10
	  	Article VIII Governs	  	 	55	  
	
	Article IX	  
	
	CONDITIONS TO CLOSING	  
			
	 Section 9.1
	  	Conditions to Mutual Obligations	  	 	56	  
	 Section 9.2
	  	Conditions to Obligations of Buyer and Merger Sub	  	 	56	  
	 Section 9.3
	  	Conditions to Obligations of the Company	  	 	58	  

							
		
	Article X	  			
		
	SURVIVAL; Buyer Acknowledgment	  			
			
	 Section 10.1
	  	Survival	  	 	59	  
	 Section 10.2
	  	Buyer Acknowledgment	  	 	59	  
	 Section 10.3
	  	Indemnification of Buyer Indemnified Parties	  	 	60	  
	 Section 10.4
	  	Indemnification of Stockholder Indemnified Parties	  	 	61	  
	 Section 10.5
	  	Limitations on Indemnification	  	 	62	  
	 Section 10.6
	  	Adjustments to Losses	  	 	65	  
	 Section 10.7
	  	Characterization of Indemnification Payments	  	 	66	  
	 Section 10.8
	  	Scheduled Indemnification	  	 	66	  
	 Section 10.9
	  	Third-Party Claim Indemnification Procedures	  	 	66	  
	 Section 10.10
	  	Direct Claim Indemnification Procedures	  	 	67	  
	 Section 10.11
	  	Release of Escrow Fund	  	 	68	  
	
	Article XI	  
	
	TERMINATION	  
			
	 Section 11.1
	  	Termination	  	 	69	  
	 Section 11.2
	  	Effect of Termination	  	 	70	  
	
	Article XII	  
	
	MISCELLANEOUS	  
			
	 Section 12.1
	  	Notices	  	 	70	  
	 Section 12.2
	  	Amendment; Waiver	  	 	72	  
	 Section 12.3
	  	No Assignment or Benefit to Third Parties	  	 	72	  
	 Section 12.4
	  	Entire Agreement; Inconsistency	  	 	73	  
	 Section 12.5
	  	Satisfaction of Obligations	  	 	73	  
	 Section 12.6
	  	Equitable Relief	  	 	73	  
	 Section 12.7
	  	Expenses	  	 	74	  
	 Section 12.8
	  	Schedules	  	 	74	  
	 Section 12.9
	  	Governing Law; Submission to Jurisdiction; Selection of Forum	  	 	75	  
	 Section 12.10
	  	WAIVER OF JURY TRIAL	  	 	75	  
	 Section 12.11
	  	Arbitration	  	 	76	  
	 Section 12.12
	  	Counterparts	  	 	77	  
	 Section 12.13
	  	Headings	  	 	77	  
	 Section 12.14
	  	No Setoff; No Withholding	  	 	77	  
	 Section 12.15
	  	Severability	  	 	77	  
	 Section 12.16
	  	Non-Recourse	  	 	77	  
	 Section 12.17
	  	Service of Process	  	 	78	  
	 Section 12.18
	  	Currency	  	 	78	  
	 Section 12.19
	  	Stockholders’ Representative	  	 	79	  

 APPENDICES, EXHIBITS AND SCHEDULES 

 

					
	Appendix A	  	–	  	Definitions
			
	EXHIBITS	  		  	
	Exhibit A	  	–	  	Certificate of Incorporation of Surviving Corporation
	Exhibit B	  	–	  	Form of Irrevocable Stockholder Consent
	Exhibit C	  	–	  	Form of Non-Compete Agreement for the Chairman
	Exhibit D	  	–	  	Form of Non-Compete Agreement for the Chief Operating Officer
			
	SCHEDULES	  		  	
	Schedule 2.7	  	–	  	Officers
	Schedule 2.8(d)	  	–	  	Compensatory Payments
	Schedule 3.3	  	–	  	Title to Company Stock; Stockholder Agreements and Warrants
	Schedule 4.2	  	–	  	Subsidiaries
	Schedule 4.5(a)	  	–	  	Company Regulatory Approvals
	Schedule 4.5(b)	  	–	  	Third Party Consents
	Schedule 4.7	  	–	  	Funded Indebtedness
	Schedule 4.8(a)	  	–	  	Assets
	Schedule 4.8(b)	  	–	  	Capitalization; Equity Interests
	Schedule 4.8(c)	  	–	  	Agreements with Respect to Equity Interests
	Schedule 4.10	  	–	  	Litigation and Claims
	Schedule 4.11	  	–	  	Compliance with Laws; Regulatory Matters
	Schedule 4.12(a)	  	–	  	Company Intellectual Property Rights
	Schedule 4.12(b)	  	–	  	Material Intellectual Property Rights
	Schedule 4.12(c)	  	–	  	Intellectual Property Contracts
	Schedule 4.12(g)	  	–	  	Information Technology Systems
	Schedule 4.13(a)	  	–	  	Benefit Plans and Employment Agreements
	Schedule 4.13(e)	  	–	  	Post-Termination Benefits
	Schedule 4.13(f)	  	–	  	Excess Parachute Payments
	Schedule 4.13(g)	  	–	  	Acceleration/Severance
	Schedule 4.15(a)	  	–	  	Material Contracts
	Schedule 4.15(b)	  	–	  	No Violation
	Schedule 4.16(a)	  	–	  	Leased Real Property
	Schedule 4.16(c)	  	–	  	Condemnation Proceedings, etc
	Schedule 4.17	  	–	  	Taxes
	Schedule 4.18	  	–	  	Insurance
	Schedule 4.20	  	–	  	Environmental Compliance
	Schedule 4.21	  	–	  	Absence of Certain Changes or Events
	Schedule 4.23	  	–	  	Permits and Licenses
	Schedule 4.24	  	–	  	Related Party Transactions
	Schedule 4.25(a)	  	–	  	Top Ten Customers
	Schedule 4.25(b)	  	–	  	Top Ten Suppliers
	Schedule 4.26(a)	  	–	  	Regulatory Authorizations
	Schedule 6.4	  	–	  	Interim Operation Covenants of the Company
	Schedule 7.1(b)	  	–	  	Severance
	Schedule 9.1(d)	  	–	  	Escrow Agreement

					
	Schedule 9.2(e)	  	–	  	Non-Compete Agreements
	Schedule 9.2(f)	  	–	  	Letter Agreements
	Schedule 9.2(g)	  	–	  	Payoff Letters
	Schedule 10.8	  	–	  	Scheduled Indemnification
	Schedule A	  	–	  	Working Capital; Accounting Principles
	Schedule B	  	–	  	Funded Indebtedness
	Schedule C	  	–	  	Closing Debt to Be Discharged
	Schedule D	  	–	  	Company Tax Benefits
	Schedule F	  	–	  	Contingent Liabilities
	Schedule K	  	–	  	Knowledge of the Company
	Schedule T	  	–	  	Transaction Related Expenses

 AGREEMENT AND PLAN OF MERGER, dated as of June 24, 2014 (as it may be amended or
supplemented from time to time in accordance with the terms hereof, this “Agreement”), by and among DAVA Pharmaceuticals, Inc., a company organized under the Laws of the State of Delaware (the “Company”), DAVA SR
LLC, a limited liability company organized under the Laws of the State of Delaware, in its capacity as representative for the Stockholders and holders of Company Stock Options (the “Stockholders’ Representative”), each of the
Stockholders (as defined below) party hereto, Generics International (US), Inc., a company organized under the Laws of the State of Delaware (“Buyer”), Generics Merger Sub Inc., a company organized under the Laws of the State of
Delaware (“Merger Sub”) and solely for purposes of Section 6.10 hereof, Endo Pharmaceuticals Inc., a company organized under the Laws of the State of Delaware (“Endo Guarantor”). 

W I T N E S S E T H: 
 WHEREAS,
Buyer desires to acquire 100% of the issued and outstanding shares of capital stock and other equity interests of the Company (the “Company Stock”) in a merger transaction (the “Merger”) on the terms, and subject to
the conditions, set forth in this Agreement; and 
 WHEREAS, the respective boards of directors of the Company, Buyer and Merger Sub have
authorized, adopted and approved this Agreement and the Ancillary Agreements, and have determined that this Agreement and the Ancillary Agreements and the transactions contemplated hereby and thereby (including the Merger), upon the terms and
subject to the conditions set forth in this Agreement and in accordance with the DGCL, are advisable and in the best interests of their respective corporations and their equity holders; and 

WHEREAS, each of the holders of the Common Stock (collectively, the “Stockholders”) and the holders of the Company Stock
Options have appointed the Stockholders’ Representative to act as representative of such Persons in connection with this Agreement, the Merger and the other transactions contemplated by this Agreement and the Ancillary Agreements; and 

WHEREAS, the board of directors of the Company has resolved to recommend to its holders of Common Stock adoption of this Agreement. 

NOW, THEREFORE, in consideration of the premises and the mutual representations, warranties, covenants and undertakings contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 

ARTICLE I 
  

DEFINITIONS; INTERPRETATION 

Section 1.1 Definitions Generally. Defined terms in this Agreement and in the Appendices and Schedules to this Agreement, which
may be identified by the 

 
capitalization of the first letter of each principal word thereof, have the meanings assigned to them in Appendix A to this Agreement. Other terms may be defined elsewhere in the text of this
Agreement and, unless otherwise indicated, shall have such meaning throughout this Agreement and the Appendices and Schedules hereto. 

Section 1.2 Interpretation Generally. 

Unless the express context otherwise requires: 

(a) the words “hereof,” “herein,” and “hereunder” and words of similar import, when used in this Agreement, shall
refer to this Agreement as a whole and not to any particular provision of this Agreement; 
 (b) the terms defined in the singular have a
comparable meaning when used in the plural, and vice versa; 
 (c) references herein to a specific Article, Section, Subsection or Schedule
shall refer, respectively, to Articles, Sections, Subsections or Schedules of this Agreement; 
 (d) wherever the word “include,”
“includes,” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation;” 

(e) references herein to any gender includes each other gender; 

(f) the word “or” shall be inclusive and not exclusive (for example, the phrase “A or B” means “A or B or both,”
not “either A or B but not both”), unless used in conjunction with “either” or the like; 
 (g) each reference to
“days” shall be to calendar days; 
 (h) each reference to any Contract shall be to such Contract as amended, supplemented, waived
or otherwise modified from time to time; 
 (i) each reference to a Law, statute, regulation or other government rule is to it as amended
from time to time and, as applicable, is to corresponding provisions of successor Laws, statutes, regulations or other government rules; 

(j) accounting terms which are not otherwise defined in this Agreement, or any Appendix or Schedule hereto, shall have the meanings given to
them under GAAP; 
 (k) any payments or release of funds from the Merger Consideration Escrow Account or General Escrow Account to Buyer or
any Buyer Indemnified Party (or any of their respective designees) shall be deemed to be a payment made by the Stockholders’ Representative and/or one or more of the Stockholders; 

  
 2 

 (l) all references herein to the Company, Merger Sub or the Surviving Corporation shall mean,
with respect to any time at or after the Effective Time, the Surviving Corporation; 
 (m) the phrase “made available to Buyer” or
similar phrases shall mean that the subject documents were either posted to the “Project Open Eagle” data room at Intralinks or delivered to Buyer or its accountants or attorneys prior to 5:00 p.m. EDT on the date immediately preceding
this Agreement; and 
 (n) each representation, warranty and covenant contained herein will have independent significance. If any party has
breached or violated, or if there is an inaccuracy in, any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant related to the same subject matter (regardless
of the relative levels of specificity), which the party has not breached or violated, or in respect of which there is not an inaccuracy, will not detract from or mitigate the fact that the party has breached or violated, or there is an inaccuracy
in, the first representation, warranty or covenant. 
 ARTICLE II 

THE MERGER; CLOSING; EFFECT ON THE SECURITIES OF THE 

COMPANY; POST-CLOSING ADJUSTMENTS 

Section 2.1 The Merger. On the terms and subject to the conditions set forth in this Agreement, and in accordance with the DGCL,
Merger Sub shall be merged with and into the Company at the Effective Time. At the Effective Time, the separate corporate existence of Merger Sub shall cease and the Company shall continue as the surviving corporation (the “Surviving
Corporation”). 
 Section 2.2 Closing. The closing (the “Closing”) of the Merger shall take place at
the offices of Dechert LLP, 1095 Avenue of the Americas, New York, New York 10036 at 10:00 a.m. New York City time, on the second Business Day following the date on which each of the conditions set forth in Article IX (other than those
conditions that by their terms are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions) is satisfied or waived in writing by the appropriate party, or at such other place, time and date as shall be agreed
between Buyer and the Stockholders’ Representative. The date on which the Closing occurs is referred to in this Agreement as the “Closing Date”. 

Section 2.3 Effective Time. On the Closing Date, the Company shall file with the Secretary of State of the State of Delaware, a
certificate of merger (the “Certificate of Merger”) executed in accordance with the relevant provisions of the DGCL and the Company shall make all other filings or recordings required under the DGCL in connection with the Merger
(including, if applicable, the filing of the amended certificate of incorporation of the Surviving Corporation). The Merger shall become effective at such time as the Certificate of Merger is duly filed with the Secretary of State of the State of
Delaware, or at such other time as Buyer and the Stockholders’ Representative shall agree and specify in the Certificate of Merger (the time the Merger becomes effective being referred to herein as the “Effective Time”). 

  
 3 

 Section 2.4 Effects. The Merger shall have the effects set forth in Section 259
of the DGCL. 
 Section 2.5 Certificate of Incorporation and Bylaws. The certificate of incorporation of the Surviving
Corporation shall be amended at the Effective Time to read in the form of Exhibit A hereto and, as so amended, such certificate of incorporation shall be the certificate of incorporation of the Surviving Corporation until thereafter changed
or amended as provided therein or by applicable Law. The bylaws of Merger Sub as in effect immediately prior to the Effective Time shall be the bylaws of the Surviving Corporation until thereafter changed or amended as provided therein or by
applicable Law. 
 Section 2.6 Directors. The directors of Merger Sub immediately prior to the Effective Time shall be the
directors of the Surviving Corporation until the earlier of their resignation or removal, or until their respective successors are duly elected and qualified, as the case may be. 

Section 2.7 Officers. The officers set forth on Schedule 2.7 shall be the officers of the Surviving Corporation until the
earlier of their resignation or removal, or until their respective successors are duly elected or appointed and qualified, as the case may be. 

Section 2.8 Merger Consideration. 

(a) Working Capital Adjustment, Net Funded Indebtedness and Transaction Related Expenses. On or prior to the second Business Day prior
to the Closing Date, the Company shall prepare and deliver to Buyer a statement setting forth the Company’s good faith estimate, in each case, as of 8:00 AM Eastern Time on the Closing Date of the Net Working Capital (the “Estimated Net
Working Capital”), the Net Funded Indebtedness (the “Estimated Net Funded Indebtedness”), and the aggregate Transaction Related Expenses to the extent not paid by the Company or any of its Affiliates prior to the Closing
(except for any such Transaction Related Expenses reimbursable or indemnifiable by Buyer pursuant to this Agreement (including Section 6.2 and Section 12.7)) (the “Estimated Transaction Related Expenses”),
and the components thereof. If the Estimated Net Working Capital is greater than Thirty Five Million Dollars ($35,000,000), such excess amount shall be the “Estimated Net Working Capital Excess Amount.” If the Estimated Net Working
Capital is less than Thirty Million Dollars ($30,000,000), the difference shall be the “Estimated Net Working Capital Deficiency Amount.” All such estimates prepared pursuant to this Section 2.8(a) shall be prepared in
accordance with the Accounting Principles to the extent applicable. 
 (b) Base Enterprise Value; Adjustments to Base Enterprise
Value. The amount payable by Buyer to the Stockholders’ Representative at the Closing for the benefit of the holders of shares of Common Stock outstanding immediately prior to the 

  
 4 

 
Closing (other than shares of Common Stock to be cancelled pursuant to Section 2.9(b)) and the holder of Company Stock Options outstanding immediately prior to the Closing (such
holders of shares of Common Stock and Company Stock Options, collectively, the “Fully Diluted Common Holders”) shall be an amount (the “Aggregate Common Equity Amount”) in Dollars equal to (i) Five Hundred and
Seventy Five Million Dollars ($575,000,000) (the “Base Enterprise Value”), plus (ii) the Estimated Net Working Capital Excess Amount, if any, minus (iii) the Estimated Net Working Capital Deficiency Amount,
if any, minus (iv) the Estimated Net Funded Indebtedness, minus (v) the Estimated Transaction Related Expenses, minus (vi) an amount equal to the General Escrow Amount, minus (viii) an amount equal to
the Merger Consideration Escrow Amount, minus (ix) Twenty Million Dollars ($20,000,000) (the “Reserve Amount”) to be paid to the Stockholders’ Representative to satisfy, in its sole discretion, certain costs and
expenses incurred on behalf of the Stockholders in the capacity as Stockholders’ Representative and amounts required to be paid by the Stockholders in respect of Stockholder Indemnifiable Losses and the Stockholder Tax Indemnity. The
Stockholders’ Representative shall have the right, in its sole and absolute discretion, to distribute all or any portion of the Reserve Amount amongst the Stockholders at any time. 

(c) Payments at Closing. Subject to Section 2.8(d), at the Closing, Buyer shall, in satisfaction of its obligations under
Section 2.8(b), (i) pay, by wire transfer in immediately available funds to an account or accounts specified in writing by the Stockholders’ Representative (for the benefit of the Stockholders and the holders of Company Stock
Options) to Buyer not less than two (2) Business Days prior to the Closing a cash amount for distribution to the Stockholders and holders of Company Stock Options equal to the Aggregate Common Equity Amount; (ii) pay, by wire transfer in
immediately available funds, to the Escrow Agent, a cash amount equal to the General Escrow Amount and the Merger Consideration Escrow Amount; (iii) pay, by wire transfer in immediately available funds, to the Persons and in the respective
amounts specified in writing by the Stockholders’ Representative to Buyer prior to the Closing the Estimated Transaction Related Expenses; (iv) pay, by wire transfer in immediately available funds, to one or more accounts specified by the
Stockholders’ Representative an amount equal to the Closing Debt to be Discharged; and (v) pay, by wire transfer in immediately available funds, to an account or accounts specified in writing by the Stockholders’ Representative to
Buyer prior to the Closing a cash amount equal to the Reserve Amount. 
 (d) Compensatory Payments. Schedule 2.8(d) hereto
(the “Compensatory Payment Schedule”) shall set forth (i) the sole category of payment, which shall be payments in respect of Company Stock Options, otherwise payable by the Buyer pursuant to Section 2.8(b) that is
a Compensatory Payment and (ii) the Person to whom each such Compensatory Payment is to be made. Any such Compensatory Payment shall not be paid in accordance with Section 2.8(c) but shall instead be transferred by the Buyer to the
Company (or a Subsidiary of the Company) and then promptly paid by the Company (or such Subsidiary) through its payroll system and in accordance with the Company’s (or such Subsidiary’s) standard withholding and payroll practices and
procedures to the Person identified by the Stockholders’ Representative on the Compensatory Payment Schedule as the Person to whom such Compensatory Payment is to be made. 

  
 5 

 (e) Distributions of Closing Payments. 

(i) Subject to Section 2.8(e)(ii), the Stockholders’ Representative shall distribute in cash the Aggregate
Common Equity Amount (other than any portion of such amount identified by the Stockholders’ Representative as a Compensatory Payment in accordance with Section 2.8(d)) to the Fully Diluted Common Holders pursuant to
Section 2.9(c), and Section 2.9(d), and in accordance with the Company’s Certificate of Incorporation (the “Certificate of Incorporation”), in each case, to each holder of certificates representing
Company Stock (other than Treasury Stock), or Company Stock Options, as applicable, who has surrendered to the Stockholders’ Representative his or its certificates representing the number of shares of each class of Company Stock held by such
holder, together with, in the case of any Stockholder that is not a party hereto, a duly executed and completed letter of transmittal or similar documentation, in form and substance reasonably acceptable to the Stockholders’ Representative.
Surrendered certificates shall forthwith be cancelled. Until so surrendered and exchanged, each such certificate shall represent solely the right to receive the portion of the Merger Consideration into which the shares it theretofore represented
shall have been converted pursuant to Section 2.9 and the rights to receive any payments distributable to the applicable Fully Diluted Common Holders after the Closing Date, if any, pursuant to this Agreement (including
Section 2.11, Section 2.12, Section 2.13, Section 8.6, and Article X) or the Escrow Agreement and, other than the foregoing, each such Stockholder and holder of Company Stock Options shall cease
to have any rights with respect to any Company Stock held by such Stockholder. 
 (ii) Notwithstanding the foregoing, if any
such certificate shall have been lost, stolen or destroyed, then, upon the making of an affidavit of such fact by the Person claiming such certificate to be lost, stolen or destroyed, together with an indemnity against any claim that may be made
against Buyer or the Surviving Corporation arising from the replacement of such certificate, the Stockholders’ Representative shall deliver, in exchange for such lost, stolen or destroyed certificate, the portion of the Merger Consideration to
be paid in respect of the shares of Company Stock represented by such certificate, as contemplated by Section 2.9 and the rights to receive any payments distributable to such Stockholders after the Closing Date, if any, pursuant to this
Agreement (including Section 2.11, Section 2.12, Section 2.13, Section 8.6, and Article X) or the Escrow Agreement. 

Section 2.9 Effect on Company Securities. At the Effective Time, by virtue of the Merger and without any action on the part of the
Company, Buyer, Merger Sub, the Surviving Corporation, the Stockholders, the Stockholders’ Representative or the holders of any shares of capital stock of Buyer or Merger Sub: 

  
 6 

 (a) Capital Stock of Merger Sub. Each issued and outstanding share of capital stock of
Merger Sub shall be converted into and become one fully paid and nonassessable share of common stock, par value $0.01 per share, of the Surviving Corporation. 

(b) Cancellation of Treasury Stock. Notwithstanding Section 2.9(c), all shares of Company Stock that are owned by the
Company or any of its Subsidiaries (“Treasury Stock”) shall no longer be outstanding and shall automatically be canceled and retired and shall cease to exist without any conversion thereof or payment therefor. 

(c) Common Stock. Subject to the terms of Section 2.8(e), each issued and outstanding share of Common Stock immediately
prior to the Effective Time (other than any shares of Common Stock to be canceled in accordance with Section 2.9(b) and other than Appraisal Shares) shall be converted into and represent the right to receive an amount of cash (rounded to
the nearest cent), without interest, equal to the Common Stock Conversion Amount. 
 (d) Company Stock Options. Subject to the terms
of Section 2.8(e), each issued and outstanding Company Stock Option whether or not exercisable by the holder thereof prior to the Effective Time shall be canceled and converted into and represent the right to receive an amount of cash
(rounded to the nearest cent), without interest and subject to applicable withholding tax, equal to the difference between (i) the product of (x) the Common Stock Conversion Amount and (y) the number of shares of Common Stock for
which such Company Stock Option was exercisable immediately prior to its cancellation pursuant to this Section 2.9 and (ii) the aggregate exercise price payable upon exercise of such Company Stock Option in full. 

(e) No Further Rights. At the Effective Time, all Company Stock and Company Stock Options shall cease to be outstanding and shall
automatically be canceled and retired, and each holder of any shares of Common Stock, or Company Stock Options shall cease to have any rights with respect thereto, except the right to receive the respective consideration provided for in this
Section 2.9 and the right to receive any payments distributable to such holders after the Closing Date, if any, pursuant to this Agreement (including Section 2.11, Section 2.12, Section 2.13,
Section 8.6, and Article X) or the Escrow Agreement, which in no event shall ever exceed the Aggregate Common Equity Amount. At the Effective Time, the stock transfer books of the Company shall be closed, and no transfer of any
Company Stock shall be made thereafter. If, after the Effective Time, certificates or any other evidence of any Company Stock are presented to the Stockholders’ Representative, they shall be canceled and exchanged for the respective
consideration provided for in this Section 2.9 by the Stockholders’ Representative and the rights to receive any payments distributable to such Stockholders after the Closing Date, if any, pursuant to this Agreement (including
Section 2.11, Section 2.12, Section 2.13, Section 8.65, and Article X) or the Escrow Agreement. Notwithstanding anything to the contrary in this Article II, none of Buyer, Merger Sub, the
Surviving Corporation, the Company or any of its Subsidiaries, the Stockholders’ Representative, any Stockholder or any holder of Company Stock Options shall be liable to any Person for any amount properly paid to a public official pursuant to
any applicable abandoned property, escheat or similar Law. 

  
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 Section 2.10 Appraisal Rights. Each Stockholder party to this Agreement hereby
irrevocably waives all rights to appraisal under Section 262. Notwithstanding anything in this Agreement to the contrary, shares of Common Stock (“Appraisal Shares”) that are outstanding immediately prior to the Effective Time
and that are held by any Person not a party to this Agreement, who is entitled to demand, and who properly demands, appraisal of such Appraisal Shares pursuant to, and who complies in all respects with, Section 262 of the DGCL (“Section
262”) shall not be converted into the right to receive any portion of the Merger Consideration as provided in Section 2.9(c) and the rights to receive any payments distributable to Fully Diluted Common Holders after the Closing
Date, if any, pursuant to this Agreement or the Escrow Agreement, but rather the holders of Appraisal Shares shall be entitled to payment of the fair market value of such Appraisal Shares in accordance with Section 262. At the Effective Time,
all Appraisal Shares shall no longer be outstanding and shall automatically be canceled and shall cease to exist, and each holder of Appraisal Shares shall cease to have any rights with respect thereto, except the right to receive the fair value of
such Appraisal Shares in accordance with the provisions of Section 262. Notwithstanding the foregoing, if any such holder shall fail to perfect or otherwise shall waive, withdraw or lose the right to appraisal under Section 262, then the
right of such holder to be paid the fair value of such holder’s Appraisal Shares shall cease and such Appraisal Shares shall be deemed to have been converted as of the Effective Time into, and to have become exchangeable solely for the right to
receive, the portion of the Merger Consideration as provided in Section 2.9(c) and the rights to receive any payments distributable to Fully Diluted Common Holders after the Closing Date, if any, pursuant to this Agreement or the Escrow
Agreement. 
 Section 2.11 Post-Closing Merger Consideration Adjustment. 

(a) As promptly as practicable, but in any case no later than sixty (60) calendar days after the Closing Date, Buyer shall cause to be
prepared and delivered to the Stockholders’ Representative a statement (the “Closing Statement”) setting forth the Net Working Capital, the Net Funded Indebtedness, the Transaction Related Expenses (to the extent not paid by
the Company or any of its Affiliates prior to the Closing) (except for any such Transaction Related Expenses reimbursable or indemnifiable by Buyer pursuant to this Agreement (including Section 6.2 and Section 12.7)) and the
components thereof. The Closing Statement shall include the amount calculated in good faith by Buyer, if any, of the Merger Consideration Escrow Amount that need not be retained by the Escrow Agent pending resolution of payments to be made pursuant
to Section 2.11(d) (the “Merger Consideration Escrow Release Amount”). The Merger Consideration Escrow Release Amount, to the extent there is such an amount, shall be released two (2) Business Days following Buyer’s
delivery of the Closing Statement. The Closing Statement and the Net Working Capital, the Net Funded Indebtedness and the Transaction Related Expenses (to the extent not paid by the Company or any of its Affiliates prior to the Closing) (except for
any such Transaction Related Expenses reimbursable or indemnifiable by Buyer pursuant to this Agreement (including Section 6.2 

  
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and Section 12.7)) calculations shall be prepared and calculated in good faith, and in the manner and on a basis consistent with the Accounting Principles (to the extent applicable)
and shall be in the same form and include the same line items as the Estimated Net Working Capital calculation, the Estimated Net Funded Indebtedness calculation and the Estimated Transaction Related Expenses calculation. If the Closing Statement is
not so timely delivered, the Estimated Net Working Capital, the Estimated Net Funded Indebtedness and the Estimated Transaction Related Expenses will be deemed Final Net Working Capital, Final Net Funded Indebtedness and Final Transaction Related
Expenses, respectively. 
 (b) After receipt of the Closing Statement, the Stockholders’ Representative will have forty five
(45) calendar days to review the Closing Statement. Unless the Stockholders’ Representative delivers written notice (which notice shall include the items and amounts in dispute and supporting documentation related thereto; such notice, a
“Seller Dispute Notice”) to Buyer setting forth the items disputed by the Stockholders’ Representative with respect thereto on or prior to the forty-fifth (45th) calendar day after the Stockholders’
Representative’s receipt of the Closing Statement, the Stockholders’ Representative will be deemed to have accepted and agreed to the Closing Statement and such statement (and the calculations contained therein) will be final, binding and
conclusive, absent manifest error or fraud. If the Stockholders’ Representative notifies Buyer of its objections to items contained in the Closing Statement (or calculations contained therein) within such forty five (45) calendar day
period, Buyer and the Stockholders’ Representative shall, during the thirty (30) calendar days following delivery of such notice by the Stockholders’ Representative to Buyer (or such longer period as they may mutually agree in
writing) (the “Resolution Period”), attempt in good faith to resolve their differences with respect to the disputed items (or calculations) such notice (the “Disputed Items”), and all other items (and all
calculations relating thereto) will be final, binding and conclusive, absent manifest error or fraud. Any resolution by Buyer and the Stockholders’ Representative during the Resolution Period as to any Disputed Item shall be set forth in
writing and will be final, binding and conclusive, absent manifest error or fraud. 
 (c) If Buyer and the Stockholders’ Representative
do not resolve all Disputed Items by the end of the Resolution Period, then all Disputed Items remaining in dispute will be submitted to the Neutral Arbitrator. The Neutral Arbitrator shall act as an arbitrator to determine only those Disputed Items
remaining in dispute, consistent with this Section 2.11, and shall request a statement from Buyer and the Stockholders’ Representative regarding such Disputed Items. The scope of the disputes to be arbitrated by the Neutral
Arbitrator is limited to those items or calculations specifically in dispute between Buyer and the Stockholders’ Representative; and the Neutral Arbitrator is not to make any other determination. In resolving each Disputed Item, the Neutral
Arbitrator shall be bound by the principles set forth in this Section 2.11 and may not assign a value to any Disputed Item greater than the greatest value for such Disputed Item claimed by any party or less than the lowest value for such
Disputed Item claimed by any party. The parties further agree that the adjustment contemplated by this Section 2.11 is intended to show the change between the Estimated Net Working Capital and the Final Net Working Capital, the change
between the Estimated Net Funded Indebtedness and the Final Net 

  
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Funded Indebtedness and the change between Estimated Transaction Related Expenses and Final Transaction Related Expenses, and that such changes can only be measured if each calculation is done in
a manner consistent with the Accounting Principles and the definitions thereof. All fees and expenses relating to the work, if any, to be performed by the Neutral Arbitrator will be allocated between Buyer and the Stockholders’ Representative
(which, in the case of the Stockholders’ Representative, shall be payable by the Stockholders’ Representative solely out of the Reserve Amount) in the same proportion that the aggregate amount of the Disputed Items so submitted to the
Neutral Arbitrator that is unsuccessfully disputed by each such party (as finally determined by the Neutral Arbitrator) bears to the total amount of such Disputed Items so submitted. The Neutral Arbitrator will deliver to Buyer and the
Stockholders’ Representative a written determination (such determination to include a work sheet setting forth all material calculations used in arriving at such determination and to be based solely on information provided to the Neutral
Arbitrator by the Stockholders’ Representative and Buyer) of the Disputed Items submitted to the Neutral Arbitrator within thirty (30) calendar days of receipt of such Disputed Items, which determination will be final, binding and
conclusive, absent manifest error or fraud. The final, binding and conclusive Closing Statement based either upon agreement by the parties, or deemed agreement by Buyer and the Stockholders’ Representative in accordance with this
Section 2.11, or the written determination delivered by the Neutral Arbitrator in accordance with this Section 2.11(c) will be the “Conclusive Closing Statement.” If any party fails to submit a statement regarding
any Disputed Item submitted to the Neutral Arbitrator within the time determined by the Neutral Arbitrator or otherwise fails to give the Neutral Arbitrator access as reasonably requested, then the Neutral Arbitrator shall render a decision based
solely on the evidence timely submitted and the access afforded to the Neutral Arbitrator by the other party. Except in instances involving fraud or except as may arise out of the representations and warranties under Article III and
Article IV and in such instances only to the extent set forth in this Agreement, neither any Stockholder, holder of Company Stock Options or the Stockholder Representative shall have any liability with respect to Funded Indebtedness, Closing
Date Funded Indebtedness, Transactions Related Expenses, or current assets or current liabilities (including as to accounts receivable and the collectability thereof) or any other component of Net Working Capital except as determined in this
Section 2.11. 
 (d) Within two (2) Business Days after the Final Amounts have been determined in accordance with this
Section 2.11: 
 (i) if the Aggregate Common Equity Amount is greater than the Final Payment Amount, then the
Stockholders’ Representative and Buyer shall instruct the Escrow Agent to pay to the Surviving Corporation, using first the funds in the Merger Consideration Escrow Account and, to the extent the funds in the Merger Consideration Escrow Account
are not sufficient to satisfy such payment in full, then out of the funds in the General Escrow Account, an amount in cash equal to the amount by which the Aggregate Common Equity Amount is greater than the Final Payment Amount (as defined below);
and 

  
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 (ii) if the Aggregate Common Equity Amount is less than the Final Payment Amount
(as defined below), Buyer shall pay, or cause the Surviving Corporation to pay, to the Stockholders’ Representative (for further pro rata distribution to the Fully Diluted Common Holders) an amount in cash equal to the amount by which the
Aggregate Common Equity Amount is less than the Final Payment Amount by wire transfer of immediately available funds (the amount payable to Buyer pursuant to Section 2.11(d)(i) and the amount payable to the Stockholders’
Representative pursuant to this Section 2.11(d)(ii) are referred to herein as the “Merger Consideration Adjustment Amount”); provided that any portion of any amount payable under this
Section 2.11(d)(ii) that is a Compensatory Payment shall not be paid to the Stockholders’ Representative but shall instead be paid by the Surviving Corporation (or a Subsidiary of the Surviving Corporation) through its payroll
system and in accordance with the Surviving Corporation’s (or such Subsidiary’s) standard withholding and payroll practices and procedures to the Person identified in writing by the Stockholders’ Representative as the Person to whom
such Compensatory Payment is to be made. 
 Any payment by Buyer, the Surviving Corporation or the Stockholders’ Representative (pursuant to the
distribution of funds from the Merger Consideration Escrow Account or the General Escrow Account), as the case may be, pursuant to this Section 2.11 will be treated as an adjustment to the Merger Consideration for tax purposes. For
purposes of this Section 2.11: 
 (A) the “Final Payment Amount” shall be an amount in Dollars
equal to (i) the Base Enterprise Value, plus (ii) the Final Net Working Capital Excess Amount, if any, minus (iii) the Final Net Working Capital Deficiency Amount, if any, minus (iv) the Final Net Funded
Indebtedness, minus (v) the Final Transaction Related Expenses, minus (vi) the General Escrow Amount, minus (vii) the Merger Consideration Escrow Amount minus (viii) the Reserve Amount; 

(B) the “Final Net Working Capital Excess Amount” shall be the amount by which Net Working Capital as finally
determined pursuant to this Section 2.11 is greater than Thirty Five Million Dollars ($35,000,000); 
 (C) the
“Final Net Working Capital Deficiency Amount” shall be the amount by which Net Working Capital as finally determined pursuant to this Section 2.11 is less than Thirty Million Dollars ($30,000,000); 

(D) the “Final Net Funded Indebtedness” shall be the Net Funded Indebtedness as finally determined pursuant to
this Section 2.11; and 

  
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 (E) the “Final Transaction Related Expenses” shall be the
Transaction Related Expenses (to the extent not paid by the Company or any of its Affiliates prior to the Closing) (except for any such Transaction Related Expenses expressly payable by Buyer pursuant to this Agreement (including
Section 6.2)) as finally determined pursuant to this Section 2.11. 
 (e) Buyer acknowledges that the sole and
exclusive remedy of itself, Merger Sub and the Surviving Corporation to receive payments owed to it under this Section 2.11 shall in no event exceed the aggregate amount of the Merger Consideration Escrow Amount and shall be recoverable
solely from the funds in the Merger Consideration Escrow Account and that the Merger Consideration Escrow Amount and funds in the Merger Consideration Escrow Account shall not be available to satisfy any other claim or obligation hereunder;
provided that if the funds in the Merger Consideration Escrow Account are not sufficient to satisfy all of the payments to Buyer and Surviving Corporation pursuant to this Section 2.11, the funds in the General Escrow Account can
be used to satisfy such shortfall. Absent manifest error or fraud, in the event that the funds in the Merger Consideration Escrow Account and General Escrow Account are insufficient to pay to the Surviving Corporation, Merger Sub or Buyer any
amounts owed to it pursuant to this Section 2.11, neither Buyer, Merger Sub nor the Surviving Corporation shall be entitled to collect any remaining amounts, in respect of the amounts owed to it pursuant to this Section 2.11
not satisfied from the funds in the General Escrow Account or the Merger Consideration Escrow Account, and neither the Stockholders’ Representative, any of the other Stockholders or holders of Company Stock Options nor any other Person shall
have any liability for any such deficiency. 
 (f) After the Closing and until the Net Working Capital, the Net Funded Indebtedness and the
Transaction Related Expenses has been determined to be final in accordance with this Section 2.11, Buyer shall, and shall cause the Surviving Corporation and each of its Subsidiaries to, provide to the Stockholders’ Representative
and its Representatives full access to the Books and Records and to any other information (to the extent permitted by applicable Law), including work papers of their respective accountants (to the extent permitted by such accountants), and to any
employees and premises during regular business hours and on reasonable advance notice, to the extent reasonably necessary for the Stockholders’ Representative to dispute or object to all or any part of the Closing Statement, and to prepare
materials for presentation to the Neutral Arbitrator in connection with this Section 2.11. 
 (g) The Stockholders’
Representative shall cause any amounts that are received by the Stockholders’ Representative pursuant to this Section 2.11 and that are to be paid to Fully Diluted Common Holders following the Closing Date to be paid to all Fully
Diluted Common Holders on a pro rata basis, with each Fully Diluted Common Holder deemed to hold such portion of the Fully Diluted Share Number represented by the sum of (x) the number of shares of Common Stock held by it as of immediately
prior to Closing and (y) the number of shares of Common Stock issuable upon exercise of each Company Stock Option held by it as of immediately prior to Closing (assuming the payment of the exercise price in cash). 

  
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 Section 2.12 Escrow Amounts. At the Closing, Buyer shall deposit (i) Fifty Five
Million Dollars ($55,000,000.00) (the “General Escrow Amount”) into an escrow account (the “General Escrow Account”) and (ii) Five Million Dollars ($5,000,000) (the “Merger Consideration Escrow
Amount”) into an escrow account (the “Merger Consideration Escrow Account”), in each case, to be established with a mutually agreeable escrow agent (it being understood and agreed that JPMorgan Chase Bank, N.A. shall be
deemed to be mutually agreeable) (the “Escrow Agent”) to be held by the Escrow Agent, pursuant to the terms of an escrow agreement in a form to be mutually agreed upon by the parties , with such customary changes thereto as
requested by the Escrow Agent (the “Escrow Agreement”). The balance of the General Escrow Amount shall be held by the Escrow Agent to serve as the sole source of payment (other than with respect to Losses resulting from Stockholder
Indemnifiable Losses and Losses for which the Buyer Indemnified Parties are indemnified pursuant to the Stockholder Tax Indemnity) for any amount due to any Buyer Indemnified Party for any claim for Losses (other than Stockholder Indemnifiable
Losses and Losses for which the Buyer Indemnified Parties are indemnified pursuant to the Stockholder Tax Indemnity) for which any Buyer Indemnified Party is entitled to recovery pursuant to Article X. On each of the dates that fall on the
next business day immediately following the date that is six (6), twelve (12), and eighteen (18) months after the Closing Date, the Escrow Agent shall automatically distribute to the Stockholders’ Representative (for further pro rata
distribution to the Fully Diluted Common Holders) in accordance with and subject to the terms of this Agreement and the Escrow Agreement, an amount equal to twenty five (25) percent of the then remaining General Escrow Amount. For purposes of
calculating the amount of such payment, the then remaining General Escrow Amount shall be reduced by the amount of claims for indemnification as provided in Section 10.11(b). On the General Survival Date, the Escrow Agent shall
automatically distribute to the Stockholders’ Representative in accordance with and subject to the terms of this Agreement and the Escrow Agreement all amounts then remaining in the General Escrow Account that are not otherwise reserved for
claims for indemnification as provided in Section 10.11(b). 
 The Merger Consideration Escrow Amount shall be held by the
Escrow Agent until the ninetieth (90th) day following the Closing Date to serve, together with the General Escrow Amount, as the sole source of payment for any amount due to Buyer, Merger Sub
or the Surviving Corporation for any adjustment to the Merger Consideration pursuant to Section 2.11, at which time the Escrow Agent shall automatically distribute to the Stockholders’ Representative in accordance with the terms of
this Agreement and the Escrow Agreement all amounts then remaining in the Merger Consideration Escrow Account, if any; provided, however, that, if on such date any Disputed Items exist and so long as Buyer is complying with its
obligations in Section 2.11 and working in good faith to promptly resolve all such Disputed Items, an amount of such funds equal to the amount of such Disputed Items shall not be released from the Merger Consideration Escrow Account
until the final determination or agreement of the Conclusive Closing Statement. The fees and disbursements of the Escrow Agent incurred pursuant to the transactions contemplated by this Agreement and the Escrow Agreement shall be borne equally by
Buyer and the Stockholders’ Representative (which, in the case of the Stockholders’ Representative, shall be payable by the Stockholders’ Representative solely out of the 

  
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Reserve Amount). Notwithstanding anything in this Agreement to the contrary, any distribution (or portion thereof) made from the General Escrow Account or the Merger Consideration Escrow Account
that is a Compensatory Payment shall not be distributed to the Stockholders’ Representative but shall instead be transferred to the Company (or a Subsidiary of the Company) and then promptly paid by the Company (or such Subsidiary) through its
payroll system and in accordance with the Company’s (or such Subsidiary’s) standard withholding and payroll practices and procedures to the Person identified in writing by the Stockholders’ Representative as the Person to whom such
Compensatory Payment is to be made. 
 Section 2.13 Milestone Payments. 

(a) Methotrexate Milestone Payment. If the cumulative net sales, determined in accordance with GAAP, by the Surviving Corporation of
Methotrexate 2.5 mg tablets (“Methotrexate”) during the period commencing on the first Business Day (the “Milestone Commencement Day” following the Closing Date and ending on the third anniversary of the Milestone
Commencement Day (such third anniversary, the “Methotrexate Milestone Measurement Date”), shall equal or exceed Two Hundred and Fifty Five Million Dollars ($255,000,000), then Buyer shall within five (5) Business Days following
the Methotrexate Milestone Measurement Date, pay, or cause the Surviving Corporation to pay, to the Stockholders’ Representative (for further pro rata distribution to the Fully Diluted Common Holders) an amount in cash equal to Twenty Five
Million Dollars ($25,000,000) (the “Methotrexate Milestone Payment”) by wire transfer of immediately available funds. 

(b) The right to receive the Methotrexate Milestone Payment under this Agreement shall not be evidenced by a certificate or other instrument
and shall not be assignable or otherwise transferable by the holders of any such right except (i) to the spouse or descendants of the Person surrendering shares of Company Common Stock pursuant to this Agreement, (ii) to a trust for the
benefit of the Persons surrendering shares of Company Common Stock or any Person named in the preceding clause (i), or (iii) by will or operation of Law. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS PARTY HERETO 

The Stockholders party hereto, severally but not jointly, represent and warrant to Buyer and Merger Sub, as of the date hereof and as of the Closing Date, as
follows: 
 Section 3.1 Binding Obligations.  

(a) Such Stockholder has all requisite right, capacity, power and authority to execute and deliver this Agreement, the Ancillary Agreements and
any other agreement or document entered into in connection herewith to which such Stockholder is, or is specified to be, party, and to consummate the transactions contemplated hereby and 

  
 14 

 
thereby. This Agreement has been, and each of the Ancillary Agreements will be (when executed and delivered pursuant hereto), duly executed and delivered by such Stockholder and this Agreement
constitutes, and each of the Ancillary Agreement and any other agreement or document entered into in connection herewith to which such Stockholder is, or is specified to be, party (when executed and delivered pursuant hereto) will constitute, the
valid and legally binding obligations of such Stockholder, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, fraudulent transfer, moratorium, reorganization or similar Laws affecting the rights of
creditors generally and the availability of equitable remedies (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

(b) Such Stockholder, if (i) a natural person, (ii) that is married and (iii) whose Common Stock constitutes community property
or otherwise requires spousal or other approval for any provisions of this Agreement, the Ancillary Agreements or any other agreement or document entered into in connection herewith to be legal, valid and binding, this Agreement has been, and each
of the Ancillary Agreements and any such other agreement or document, as applicable, will be (when executed and delivered pursuant hereto) duly authorized, executed and delivered by, and constitutes the legal, valid and binding agreement of such
Seller’s spouse or such other Person, enforceable against such spouse or other Person in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent transfer, moratorium, reorganization or similar Laws affecting the
rights of creditors generally and the availability of equitable remedies (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

Section 3.2 No Defaults or Conflicts. 

(a) The execution and delivery by such Stockholder of this Agreement and the Ancillary Agreements to which such Stockholder is, or is specified
to be, party, and the consummation of the transactions contemplated herein and therein in accordance with the terms hereof and thereof do not and will not (i) violate any Order or Law applicable to such Stockholder, or such Stockholder’s
properties or assets in any material respect, or (ii) materially violate, or conflict with, or result in a material breach of any provision of, or constitute a material default (or an event which, with notice or lapse of time or both, would
constitute a material breach or default) under (x) any of the terms, conditions or provisions of any material Contract to which such Stockholder is a party or by which such Stockholder’s assets or properties are bound (including the
Company Stock) and (y) any provisions of its articles of incorporation or bylaws, trust agreement or other governing documents (to the extent the Stockholder is not an individual). 

(b) Except as has been obtained, no material consent is required to be made by or with respect to such Stockholder in connection with the
execution, delivery and performance of this Agreement and the Ancillary Agreements to be entered into by such Stockholder in connection herewith. 

  
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 Section 3.3 Title to Company Stock; Shareholder Agreements. Such Stockholder is the
sole record owner of the Common Stock, Preferred Stock, and Company Stock Options set forth next to such Stockholder’s name in Schedule 3.3 attached hereto, has good and valid title in such Common Stock, Preferred Stock, and Company
Stock Options, free and clear of all adverse claims and other Encumbrances (other than those arising under the applicable securities Laws), and its interests in the Company represented by such Common Stock, Preferred Stock, and Company Stock Options
shall be transferred to Buyer in the Merger free and clear of all adverse claims and other Liens. As of the date hereof, no stock certificates evidencing the Company Stock held by any Stockholder had been issued directly or indirectly in respect of
any stock certificates issued in replacement of any lost or destroyed stock certificates. Except for this Agreement, the Company Charter and the Stockholders Agreement, (x) the Company Stock held by the Stockholder is not subject to any voting
trust or stockholder agreement or other similar Contract, including any such Contract restricting or otherwise relating to the voting, dividend rights or disposition of such Company Stock and (y) there are no Contracts between the Stockholder
and any other Person, relating to the acquisition (including, rights of first refusal, pre-emptive rights and anti-dilution rights), disposition, registration under the Law, or other similar rights with respect to the capital stock or other
ownership interests of the Company (or any of its predecessors). 
 Section 3.4 Broker’s Fees. No broker, finder or similar
agent has been employed by or acted on behalf of, directly or indirectly, such Stockholder or any of its Affiliates or agents, in connection with this Agreement or the Ancillary Agreements or the transactions contemplated hereby or thereby. Neither
has such Stockholder nor any of its Affiliates, entered into any arrangement or other Contract with any Person, or taken any other actions, which could obligate such Stockholder, the Company, Buyer or any of their respective Affiliates to pay any
brokerage commission, finder’s fee or any similar compensation in connection with this Agreement, the other Ancillary Agreements or the transactions contemplated hereby and thereby. 

Section 3.5 Absence of Litigation. As of the date of this Agreement, there is no Litigation pending or threatened in writing, or
to the Stockholder’s Knowledge, in each case that, if adversely determined, would materially impair or delay such Stockholder’s ability to perform its obligations hereunder or pursuant to the Ancillary Agreements or the transactions
contemplated hereby or thereby. 
 Section 3.6 Consent to Transactions. Each Stockholder party hereto has delivered a
Stockholder Consent in favor of adoption and approval of this Agreement and the transactions contemplated herein, in each such Stockholders’ capacity as a holder of such Common Stock. 

  
 16 

 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

Except as set forth in the Schedules attached hereto, the Company hereby represents and warrants to Buyer and Merger Sub, as of the date
hereof and as of the Closing Date, as follows: 
 Section 4.1 Organization and Qualification. 

(a) The Company and each of its Subsidiaries is either duly organized or incorporated (as applicable), and is validly existing, under the Laws
of its jurisdiction of organization, has all requisite corporate (or similar entity) power and authority to own or lease and operate its properties and assets and to carry on its business as presently conducted, and is duly qualified or licensed to
do business and is in good standing in each jurisdiction where the conduct of its business requires such qualification or license, except for such failure to be so qualified, licensed or in good standing, or to have such power or authority, that
would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 
 (b) The Company has
heretofore made available to Buyer complete and correct copies of all of the certificates of incorporation, articles, by-laws or other organizational documents (the “Organizational Documents”) of the Company and its Subsidiaries,
each as amended to the date hereof, and such Organizational Documents are in full force and effect. 
 (c) The Company has heretofore made
available to Buyer and Merger Sub a complete and correct copy of the Stockholders Agreement. 
 Section 4.2 Subsidiaries. All
Subsidiaries of the Company are listed on Schedule 4.2. The outstanding capital stock of, or other ownership interests in, each Subsidiary of the Company is owned beneficially and of record by the Company, is duly authorized, validly issued,
fully paid and nonassessable and free of any preemptive rights or other Encumbrances (other than those restrictions contained in the limited liability company agreement of the Subsidiary). Except as set forth in Schedule 4.2, there are no
outstanding or authorized (i) equity securities of any of the Company’s Subsidiaries, (ii) securities of any of the Company’s Subsidiaries convertible into or exchangeable for equity securities of any of the Company’s
Subsidiaries or (iii) options or other rights to acquire from the Company’s Subsidiaries or obligations of the Company’s Subsidiaries to issue, any equity securities or securities convertible into or exchangeable for equity securities
of any of the Company’s Subsidiaries. 
 Section 4.3 Corporate Authorization. The Company has all requisite corporate power
and authority to execute and deliver this Agreement and each of the Ancillary Agreements to which it is a party, and to perform its obligations hereunder and thereunder. The execution, delivery and performance by the Company of this Agreement and
each of the Ancillary Agreements to which it is a party have been duly and validly authorized by such Company, and no additional corporate (or similar entity) authorization or consent by the Company is required in connection therewith. The
Stockholders owning a number of shares sufficient to adopt this Agreement have acted to adopt this Agreement and approve the transactions contemplated hereby including the Merger. 

Section 4.4 Binding Effect. This Agreement and each of the Ancillary Agreements to which the Company is a party, when executed and
delivered by the parties thereto, constitutes a valid and legally binding obligation of the Company, enforceable 

  
 17 

 
against the Company, as applicable, in accordance with their respective terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, or
moratorium Laws, other similar Laws affecting creditors’ rights and general principles of equity affecting the availability of specific performance and other equitable remedies. 

Section 4.5 Regulatory Approvals and Non-Governmental Consents. 

(a) Except as set forth in Schedule 4.5(a) (the “Company Regulatory Approvals”), no Governmental Authorization or
filing is required to be obtained by the Company from, or to be given by the Company to, or made by the Company with, any Governmental Entity or securities exchange, as a result of the execution, delivery or performance by the Company of
(i) its obligations under this Agreement or (ii) its material obligations under the Ancillary Agreements, except for such Governmental Authorization or filings that if failed to be obtained, given or made would not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect or a material adverse effect on the Company’s ability to execute, deliver or perform this Agreement or any Ancillary Agreement, or to timely consummate the transactions
contemplated hereby or thereby. 
 (b) Except as set forth in Schedule 4.5(b) (the “Company Non-Governmental
Consents”), no material consent, approval, waiver or authorization is required to be obtained by the Company from, or to be given by the Company to, or made by the Company with, any Person other than a Governmental Entity or securities
exchange, as a result of the execution, delivery or performance by the Company of this Agreement and the Ancillary Agreements. 

Section 4.6 Non-Contravention. The execution, delivery and performance by the Company of this Agreement, and the execution,
delivery and performance by the Company of the Ancillary Agreements to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not (a) violate in any respect any provision of the
Organizational Documents of the Company or any of its Subsidiaries; (b) assuming the receipt of all Regulatory Approvals and Non-Governmental Consents, materially conflict with, or result in the material breach of, or constitute a material
default under, or result in the termination, cancellation, modification or acceleration (whether after the filing of notice or the lapse of time or both) of any material right or obligation of the Company or any of its Subsidiaries under, or result
in a loss of any material benefit to which the Company or any of its Subsidiaries is entitled under, any Contract to which the Company or any of its Subsidiaries is a party, or result in the creation of any material Lien upon any assets of the
Company or any of its Subsidiaries; or (c) assuming the receipt of all Regulatory Approvals and Non-Governmental Consents, materially violate or result in a material breach of or constitute a material default under any Law or Governmental
Authorization to which the Company or any of its Subsidiaries is subject. 
 Section 4.7 Funded Indebtedness. Schedule
4.7 sets forth a complete and accurate list of all Funded Indebtedness of the Company or any of its Subsidiaries. 

  
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 Section 4.8 Assets; Capitalization; Equity Interests. 

(a) Assets. Except as set forth in Schedule 4.8(a), or with respect to Intellectual Property, the Company and its Subsidiaries
have good and marketable title to or a valid leasehold interest in their respective material assets owned by them, free and clear of all Liens, other than Permitted Liens. The Company and its Subsidiaries have valid leasehold interests in or right
to use by license or otherwise all material tangible assets and properties leased, licensed or otherwise used, but not owned, by the Company or any of its Subsidiaries, in each case free and clear of all Liens (other than Permitted Liens). The
Company and its Subsidiaries have such rights by title, lease, license or otherwise in and to the material tangible assets and properties owned or used in the business of the Company and its Subsidiaries as are reasonably necessary to conduct their
respective businesses in all material respects as conducted on the date hereof. 
 (b) Capitalization; Ownership of Equity Interests.
The authorized capital stock, membership interests or other equity securities of the Company and its Subsidiaries and the current ownership of such capital stock, membership interests or other equity interests as of the date hereof is set forth in
Schedule 4.8(b). Schedule 4.8(b) also sets forth, as of the date hereof, with respect to each Company Stock Option, the holder thereof, the number of shares of Common Stock subject thereto, the exercise price thereof and the date of
grant. The authorized capital stock, membership interests or other equity interests set forth in Schedule 4.8(b) constitute the only issued and outstanding shares of capital stock, membership interests or other equity interests of the Company
and its Subsidiaries on the date hereof, and such shares or equity interests have been all duly authorized and, to the extent the following concepts are applicable thereto, are validly issued and fully paid, and are nonassessable. 

(c) Agreements with Respect to Equity Interests. Except for the Stockholders Agreement or as set forth in Schedule 4.8(b)
or Schedule 4.8(c), there are no preemptive or other outstanding rights, options, warrants, conversion rights, stock appreciation rights, redemption rights, repurchase rights, agreements, arrangements or commitments of any character under
which the Company or any of its Subsidiaries are or may become obligated to issue or sell, or give any Person a right to subscribe for or acquire, or in any way dispose of, any shares of the capital stock, membership interests or other equity
interests, or any securities or obligations exercisable or exchangeable for or convertible into any shares of the capital stock or other equity interests, of the Company or any of its Subsidiaries, and no securities or obligations evidencing such
rights are authorized, issued or outstanding. Except for the Stockholders Agreement or as set forth in Schedule 4.8(c), the outstanding stock, membership interests and other equity interests of the Company and its Subsidiaries are not subject
to any voting trust agreement or other contract, agreement or arrangement restricting or otherwise relating to the voting, dividend rights or disposition of such stock or other equity interests. Except as set forth in Schedule 4.8(c), there
are no phantom stock or similar rights providing economic benefits based, directly or indirectly, on the value or price of the stock or other equity interests of the Company or any of its Subsidiaries. 

  
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 Section 4.9 Financial Statements. 

(a) The Company has made available to Buyer a correct and complete copy of (i) each of the audited consolidated balance sheets of the
Company and its Subsidiaries as of December 31, 2013, December 31, 2012, December 31, 2011 and the related consolidated statements of operations and cash flows, in each case, including notes thereto, for the years ended
December 31, 2013, December 31, 2012 and December 31, 2011 (collectively, the “Audited Financial Statements”); and (ii) the unaudited consolidated balance sheet of the Company and its Subsidiaries as of
March 31, 2014 and the related consolidated statements of operations and cash flows, in each case, for the three (3) months ended March 31, 2014 (collectively, the “Unaudited Financial Statements” and, together with
the Audited Financial Statements, the “Financial Statements”). 
 (b) The Company maintains accurate books and records
reflecting its assets and liabilities and maintains, and has maintained for all periods reflected in the Financial Statements, proper and adequate internal accounting controls that provide assurance that (i) transactions are recorded as
necessary to permit accurate preparation of its financial statements and to maintain accurate accountability for its assets; (ii) the reporting of its assets is compared with existing assets at regular intervals; and (iii) accounts, notes
and other receivables and inventory are recorded accurately, and proper and adequate procedures are implemented to effect the collection thereof on a current and timely basis. Neither the Company nor, to the Knowledge of the Company, any auditor,
accountant or representative of the Company has received or otherwise had or obtained knowledge of any material complaint, allegation, assertion or claim, whether written or oral, regarding the accounting or auditing practices, procedures,
methodologies or methods of the Company or its respective internal accounting controls, including any material complaint, allegation, assertion or claim that the Company has engaged in questionable accounting or auditing practices. 

(c) Each of the balance sheets contained in the Financial Statements fairly presents in all material respects the consolidated, if applicable,
financial position of the Company and its Subsidiaries as of the date thereof, and each of the statements of operations and cash flows or equivalent statements contained in the Financial Statements (including any related notes and schedules thereto)
fairly presents in all material respects the consolidated results of operations and cash flows of the Company and its Subsidiaries specified in such statement, for the periods specified in such statement, in each case in accordance with GAAP
(subject, in the case of Unaudited Financial Statements, to changes resulting from normal year-end adjustments (including deferred Tax entries) and to the absence of footnote disclosures). 

Section 4.10 Litigation and Claims. 

(a) Except as set forth in Schedule 4.10, there are no civil, criminal or administrative actions, proceedings, suits, demands, claims,
disputes, hearings, proceedings or investigations (“Litigations” or “Litigation”) pending or, to the Knowledge of the Company, threatened against the Company or any of its Subsidiaries that, individually or in the
aggregate, would have a Material Adverse Effect or a material adverse effect on the Company’s ability to execute, deliver or perform this Agreement or any Ancillary Agreement, or to timely consummate the transactions contemplated hereby or
thereby. 

  
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 (b) Except as set forth in Schedule 4.10, the Company is not subject to any material Order
of any Governmental Entity of competent jurisdiction or any arbitrator or arbitrators. 
 (c) Except as set forth in Schedule 4.10
since January 1, 2010, there are, and have been, no Litigations or claims against the Company alleging any material defects or alleging any failure to meet specifications of any Business Product. 

Section 4.11 Compliance with Law; Regulatory Matters. Except as set forth in Schedule 4.11: 

(a) each of the Company and its Subsidiaries is currently in, and since January 1, 2011, has been in, material compliance with applicable
Law; and 
 (b) the Company has heretofore made available to Buyer complete and correct copies of all written notices received by the
Company or any of its Subsidiaries alleging any material violation under any applicable Law that the Company or any of its Subsidiaries have received since January 1, 2011 and prior to the date of this Agreement. 

Section 4.12 Intellectual Property. 

(a) Schedule 4.12(a) contains a complete and correct list of all active registrations of, and all pending applications to register any,
Company Intellectual Property Rights in each case as of the date hereof. As of the date hereof, the material Company Intellectual Property Rights identified on Schedule 4.12(a) are validly registered, held and/or recorded in the name of the
Company or one of its Subsidiaries and not subject to any pending cancellation, interference, reissue, or reexamination proceeding. 
 (b)
The Company and its Subsidiaries own the exclusive right, title and interest to all material Company Intellectual Property Rights, free and clear of all Liens (other than Permitted Liens and non-exclusive licenses granted by the Company or any of
its Subsidiaries to any Person, as listed in Schedule 4.12(b)). 
 (c) Schedule 4.12(c) contains a true, correct and complete
list of all Contracts pursuant to which the Company (i) is granted, obtains or agrees to obtain Intellectual Property Rights (other than standard form Contracts granting right to use readily available shrink wrap or click wrap software)
material to the business of the Company as currently conducted; (ii) is restricted in its right to use or register any Intellectual Property Rights material to the business of the Company as currently conducted; or (iii) permits or agrees
to permit any other Person to use, enforce or register any Intellectual Property Rights material to the business of the Company as currently conducted, including licenses to material Company Intellectual Property Rights granted by the Company or any
of its Subsidiaries to any Person. 

  
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 (d) Except as set forth on Schedule 4.12(c), neither the Company nor any of its
Subsidiaries has received any communication in the last twenty-four (24) months alleging that the Company or any of its Subsidiaries has infringed or misappropriated any material Intellectual Property Rights of any Person. To the Knowledge of
the Company, the products and services of the Company and its Subsidiaries, as currently provided by the Company and its Subsidiaries, do not infringe or misappropriate any Intellectual Property Right owned by any Person. Except as set forth on
Schedule 4.12(c), to the Knowledge of the Company, no Person is infringing upon or violating any of the Company Intellectual Property Rights. Except as set forth on Schedule 4.12(c), in the last twenty-four (24) months, neither
the Company nor any of its Subsidiaries has sent any notice to or asserted or threatened in writing any action or claim against any Person involving or relating to any material Company Intellectual Property Rights, other than any such actions,
claims or matters that have been resolved. 
 (e) The Company takes reasonable measures to protect the confidentiality of material trade
secrets and all other material confidential information, including ideas, know-how, inventions, proprietary processes, formulae, models, and methodologies, including by requiring all Persons having access thereto to execute written non-disclosure
agreements. To the Knowledge of the Company, there has not been any disclosure of any material trade secret of the Company (including information of any other Person disclosed in confidence to the Company) to any Person in a manner that has resulted
or is likely to result in the loss of trade secret or other rights in and to such information. 
 (f) Each current and former employee,
officer, contractor and consultant of the Company that has delivered, developed, contributed, modified or improved the Company’s material Intellectual Property Rights has executed a proprietary information and inventions agreement assigning to
the Company all of such contractor or consultant’s rights in such development, contribution, modification, or improvement. 
 (g) The
Company has not experienced any material defects in software necessary for the conduct of the business, including any material error or omission in the processing of any transactions other than defects which have been corrected. During the three
(3) years prior to the date hereof, (i) there have been no material security breaches in the Company’s information technology systems, and (ii) there have been no disruptions in any of the Company’s information technology
systems that resulted in a Material Adverse Effect on the Company’s business or operations. 
 (h) The Company has at all times
complied in all material respects with all applicable laws, as well as in all material respects with its own rules, policies, and procedures, relating to privacy, data protection, and the collection and use of personal information collected, used,
or held for use by the Company. No claims have been asserted or threatened against the Company in writing alleging a violation of any Person’s privacy or personal information or data rights and to the Knowledge of the Company, the consummation
of the transactions contemplated hereby will not breach or otherwise cause any violation of any law or rule, policy, or procedure related to privacy, data protection, or the collection and use of personal information collected, used, or held

  
 22 

 
for use by or on behalf of the Company in the conduct of the business. The Company takes reasonable measures to ensure that such information is protected against unauthorized access, use,
modification, or other misuse. 
 Section 4.13 Employee Benefits. 

(a) Schedule 4.13(a) sets forth a complete and accurate list of (1) each “employee benefit plan” (within the meaning of
Section 3(3) of ERISA) and each other profit-sharing, bonus, stock option, stock purchase, restricted stock, stock ownership, pension, retirement, deferred compensation, welfare, incentive, short- or long-term disability, retention, salary
continuation, change in control or life insurance plan, program, contract or arrangement, in any case, established, maintained, sponsored or contributed to by the Company or any of its Subsidiaries for the benefit of any current or former employee,
officer, director or independent contractor of the Company or any of its Subsidiaries or with respect to which the Company or any of its Subsidiaries has any liability (the “Benefit Plans”) in each case in effect on the date hereof
and (2) each written employment or severance agreement addressed to or covering any employee of the Company or any of its Subsidiaries (the “Employment Agreements”). As applicable with respect to each Benefit Plan and
Employment Agreement, the Company has made available to Buyer true and complete copies of (i) each such document, including all amendments thereto, and in the case of an unwritten Benefit Plan, a written description thereof, (ii) all
current trust documents, investment management contracts, custodial agreements and insurance contracts relating thereto, (iii) the current summary plan description and each summary of material modifications thereto, (iv) the most recently
filed annual reports (Form 5500 and all schedules thereto), (v) the most recent IRS determination or opinion letter and (vi) the most recent summary annual reports, actuarial reports, financial statements and trustee reports. 

(b) Each Benefit Plan has been during the past three years maintained in all material respects in accordance with its terms and in accordance
with applicable Law. There are no material Litigations pending, or to the Knowledge of the Company, threatened, with respect to any Benefit Plan or Employment Agreement (other than routine claims for benefits in the ordinary course of business).

 (c) At no time during the past six years, has the Company or any of its Subsidiaries or any ERISA Affiliate (i) sponsored,
maintained or contributed to an “employee pension benefit plan” (within the meaning of Section 3(2) of ERISA) that is subject to Title IV of ERISA or (ii) been required to contribute to, or incurred any “withdrawal
liability” (within the meaning of Section 4201 of ERISA) to, any “multiemployer plan” (within the meaning of Section 3(37) of ERISA). 

(d) Each Benefit Plan that is an “employee pension benefit plan” (within the meaning of Section 3(2) of ERISA) and that is
intended to meet the qualification requirements of Section 401(a) of the Code (each, a “Pension Plan”) has received a determination, opinion or advisory letter from the IRS to the effect that such Pension Plan and any related
trust are qualified and exempt from U.S. federal income taxes under Sections 401(a) and 501(a) of the Code, respectively (or such Pension Plan or 

  
 23 

 
related trust has remaining a period of time under the Code or pronouncements of the IRS in which to apply for such a determination and make any amendments necessary to obtain a favorable
determination or opinion, as applicable, as to the qualified status of each such Pension Plan or related trust), and nothing has occurred as of the date hereof that would reasonably be expected to adversely affect the qualification of such Pension
Plans or related trusts. 
 (e) No Benefit Plan or Employment Agreement provides death or medical benefits beyond termination of service or
retirement other than (i) coverage mandated by Law or (ii) death or retirement benefits under a Benefit Plan qualified under Section 401(a) of the Code. 

(f) No payment which is or may be made by, from or with respect to any Benefit Plan or Employment Agreement as a result of the occurrence of
the transactions contemplated by this Agreement (either alone or in combination with another event) could reasonably be characterized as an “excess parachute payment” under Section 280G of the Code. 

(g) Except as required by applicable Law, none of the Benefit Plans or Employment Agreements (i) obligates the Company or any of its
Subsidiaries to pay any separation, severance, termination, change in control, deal bonus or similar benefits or (ii) accelerates the time of payment or vesting, or increases the amount of compensation due to any employee of the Company or any
of its Subsidiaries, in each case, as a result of the occurrence of the transactions contemplated by this Agreement (either alone or in combination with another event). 

(h) This Section 4.13 constitutes the sole representations and warranties of the Company with respect to any employee benefit
matters. 
 Section 4.14 Employment Matters. 

(a) Neither the Company nor any of its Subsidiaries is party to or bound by a collective bargaining agreement with respect to the Employees.

 (b) There is no material unfair labor practice charge or complaint against the Company or any of its Subsidiaries pending, or to the
Knowledge of the Company, threatened before the applicable Governmental Entity. 
 Section 4.15 Material Contracts. 

(a) Schedule 4.15 sets forth a list that is correct and complete in all material respects, of the following material Contracts currently
in effect to which the Company or any of its Subsidiaries are a party as of the date hereof (the “Material Contracts”): 

(i) Contracts where (A) the performance remaining thereunder involves aggregate consideration to or by the Company or any
of its Subsidiaries in excess of $200,000 per annum, and (B) such agreement is not cancelable, without material penalty, by the Company or any of its Subsidiaries on 45 days’ or less notice; 

  
 24 

 (ii) Contracts between the Company or any of its Subsidiaries on the one hand,
and any of the Top Ten Customers or Top Ten Suppliers on the other hand; 
 (iii) Contracts which restrict or limit in any
material respect the ability of the Company or any of its Subsidiaries to compete in any line of business; 
 (iv) Contracts
relating to employment of any employee, director or officer; 
 (v) Contracts granting a power of attorney to any Person
authorizing such Person to take any actions that could materially affect the operations or the financial condition of the Company or any of its Subsidiaries; 

(vi) Contracts pursuant to which the Company or any of its Subsidiaries establishes a joint venture or partnership involving a
sharing of profits, losses, costs, or liabilities by the Company or any of its Subsidiaries with any other Person; 
 (vii)
Contracts with Affiliates of the Company (including any intercompany indebtedness, guaranty, receivable or payable between any of the Company or any of its Subsidiaries, on the one hand, and any Affiliates of the Company (other than the Company or
any Subsidiary of the Company), on the other hand), other than agreements solely between or among the Company or any of its Subsidiaries; 

(viii) Contracts which relate to indebtedness for borrowed money owed by the Company or any of its Subsidiaries, or the
guarantee thereof (excluding, for the avoidance of doubt, Contracts evidencing liabilities with respect to deposits and accounts, or trade payables made in the ordinary course of business); 

(ix) mortgages, pledges or security agreements or similar Contracts constituting a Lien upon the assets or properties of the
Company or any of its Subsidiaries, in each case granted in connection with the incurrence of indebtedness for borrowed money; 

(x) Contracts for the disposition, sale or purchase of any assets having a value individually, with respect to all sales or
purchases thereunder, in excess of $200,000; 
 (xi) Contracts providing for the purchase or marketing by the Company or any
of its Subsidiaries of Business Products that generate or are reasonably expected to generate $200,000 or more of annualized revenues; 

  
 25 

 (xii) Contracts containing (A) covenants of the Company or any of its
Subsidiaries not to (or otherwise restricting or limiting the ability of the Company or any of its Subsidiaries to) compete in any line of business or geographic or marketed product area, including any covenant not to compete with respect to the
manufacture, marketing, distribution or sale of any Business Product or Business Product line or (B) any exclusivity, most-favored nation pricing, non-compete or other similar provisions that would bind the conduct of Buyer’s or its
Affiliates’ businesses following the consummation of the transactions; 
 (xiii) Contracts for the sale or purchase of
fixed assets or real estate having a value individually, with respect to all sales or purchases thereunder, in excess of $500,000, other than agreements entered into in the ordinary course of business; and 

(xiv) all leases with regard to the Company’s headquarters in New Jersey. 

(b) All Material Contracts are in full force and effect against the Company or the applicable Subsidiary of the Company party thereto and, to
the Knowledge of the Company, each other party thereto, in each case is in accordance with the express terms thereof. Except as set forth in Schedule 4.15(b), there does not exist under any Material Contract any material violation,
breach or event of default, or alleged material violation, breach or event of default, or event or condition that, after notice or lapse of time or both, would constitute a material violation, breach or event of default thereunder on the part of the
Company or the applicable Subsidiary of the Company. Neither the Company nor its Subsidiaries have received within the last two years written notice from any other party of its intent to cancel or terminate any Material Contract. 

Section 4.16 Real Property. 

(a) Neither the Company nor any of its Subsidiaries owns real property. Schedule 4.16(a) sets forth a correct and complete list of all
real property that is leased and occupied by the Company or any of its Subsidiaries (the “Leased Real Property”). The Company has, or has caused to be, made available to Buyer correct and complete copies of each of the leases
pursuant to which the Company or any of its Subsidiaries leases the Leased Real Property (the “Leases”). 
 (b) To the
Knowledge of the Company, the occupancy, use and operation of the Leased Real Property complies in all material respects with all applicable Law and Governmental Authorizations and does not materially violate any instrument of record or Lease
affecting such property. 
 (c) Except as set forth in Schedule 4.16(c), there are no pending or, to the Knowledge of the Company,
threatened, appropriation, condemnation, eminent domain or like proceedings relating to the Leased Real Property. 

  
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 Section 4.17 Taxes. Except as set forth in Schedule 4.17: 

(a) All income Tax Returns and other material Tax Returns of the Company and its Subsidiaries required to be filed on or before the Closing
(taking into account any available extensions) have been (or will be) duly and timely filed and all such Tax Returns are true, correct, and complete in all material respects. The Company and its Subsidiaries have timely paid all Taxes due and owing
by any of them under applicable Laws (whether or not shown on any such Tax Return), except for Taxes that are being contested in good faith by appropriate action and for which adequate provisions have been established on the Books and Records of the
Company and its Subsidiaries in accordance with GAAP or other applicable accounting principles. 
 (b) The Company and each of its
Subsidiaries has duly and timely withheld all Taxes required to be deducted or withheld from payments made and has timely paid to the appropriate authorities all such deducted or withheld amounts. 

(c) There are no Liens for Taxes on any assets of the Company or any of its Subsidiaries other than Permitted Liens. 

(d) No actions, claims, administrative proceedings or court proceedings with regard to Taxes or any Tax Return referred to in clause
(a) of this Section 4.17 are currently pending or threatened in writing, and all deficiencies asserted or assessments made, if any, in respect of any Taxes of the Company and its Subsidiaries as a result of any such
proceeding have been paid in full. 
 (e) No written agreement or other document extending, or having the effect of extending, the period of
assessment, deficiency or collection of any Taxes payable by the Company or any of its Subsidiaries is in effect as of the date hereof, and no waiver or extension of any statute of limitations with respect to any Tax liability or deficiency of the
Company or any of its Subsidiaries is presently in effect. Neither the Company nor any of its Subsidiaries is, as of the date hereof, the beneficiary of any extension of time (other than an automatic extension of time not requiring the consent of
the applicable Taxing Authority) within which to file any Tax Return not previously filed. No power of attorney that is still in force has been granted by or with respect to the Company or any of its Subsidiaries with respect to any matter relating
to Taxes. 
 (f) Neither the Company nor any of its Subsidiaries (i) is or has ever been a member of any Affiliated Group that filed or
was required to file an affiliated, consolidated, combined, or unitary Tax Return (other than any current group of which the Company is the common parent), or (ii) has any liability for the Taxes of another Person (other than another current
member of the Affiliated Group described in the preceding clause (i)) under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign Laws). 

(g) Neither the Company nor any of its Subsidiaries is a party to, is bound by, or has any obligation under any tax sharing agreement, tax
indemnification, or tax allocation agreement or similar agreement, contract or arrangement (excluding any lease, loan, or similar commercial agreement the principal purpose of which is unrelated to Taxes). 

  
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 (h) Neither the Company nor any of its Subsidiaries shall be required to include any item of
income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) beginning after the Closing Date as a result of any (i) change in method of accounting for any taxable period ending on or prior to the
Closing Date, (ii) installment or open transaction disposition made on or prior to the Closing Date, (iii) prepaid amount received on or prior to the Closing Date, or (iv) Section 108(i) of the Code. 

(i) Since January 1, 2011, no claim has ever been made by a Governmental Entity in a jurisdiction in which neither the Company nor any of
its Subsidiaries files Tax Returns or pays Taxes (or in which neither the Company nor any of its Subsidiaries files or pays a particular type of Tax) that the Company or any of its Subsidiaries is or may be subject to taxation by that jurisdiction
or has or may have an obligation to file Tax Returns in that jurisdiction. 
 (j) Neither the Company nor any of its Subsidiaries has a
“permanent establishment” in any foreign country, as defined in any applicable Tax treaty or convention between the United States of America and such foreign country. 

(k) Neither the Company nor any of its Subsidiaries has distributed stock of another Person, or had its stock distributed by another Person,
in a transaction that was purported or intended to be governed in whole or in part by Sections 355 or 361 of the Code. 
 (l) Neither the
Company nor any of its Subsidiaries has entered into any written agreement (including, but not limited to, a “closing agreement”) within the meaning of Section 7121 of the Code (or any similar provisions of state, local or foreign
Laws) or tax ruling with any Governmental Authority with respect to any tax matter, that may have a continuing effect after the Closing. 

(m) Neither the Company nor any of its Subsidiaries has been a party to a transaction that is a “reportable transaction” as defined
in Treasury Regulations Section 1.6011-4(b). No Tax Return filed by or on behalf of the Company or any of its Subsidiaries has contained a disclosure statement under Section 6662 of the Code (or any similar provision of Law). 

(n) Neither the Company nor any of its Subsidiaries (i) is or has ever been, a party to any joint venture, partnership or other
arrangement that was treated, or should have been treated, as a partnership for federal income tax purposes and (ii) has ever owned any interest in any entity that either was or is treated as an entity disregarded as separate from its owner for
federal tax purposes or is an entity with respect to which an election pursuant to Treasury Regulation Section 301.7701-3 has been made. 

(o) The representations and warranties in Section 4.9, Section 4.13(f), and this Section 4.17 constitute the sole
representations and warranties of the Company with respect to tax matters and the representations and warranties in this Section 4.17 (other than those in Sections 4.17(g), (h), and (l)) may be relied upon only for Pre-Closing Tax Periods. 

  
 28 

 Section 4.18 Insurance. The Company has, or has caused to be, made available to Buyer
all of the insurance policies or binders for which the Company or any of its Subsidiaries is a policyholder or which covers the business or assets of the Company and its Subsidiaries, in each case that are in effect as of the date hereof
(“Insurance Policies”), and Schedule 4.18 sets forth a complete list of the Insurance Policies. All Insurance Policies are in full force and effect in accordance with their terms and all premiums with respect thereto covering
all periods up to and including the Closing Date have been paid or will be paid when due. Since December 31, 2011, the Company has not received any written notice of cancellation, material change in premium or denial of renewal in respect of
any of the Insurance Policies. The Company and its Subsidiaries maintain, and have maintained without interruption, policies or binders of insurance covering risks and events and in amounts adequate for their business and operations and customary in
the industry in which they operate and neither the Company nor any of its Subsidiaries have reached or exceeded their policy limits for any such insurance policies in effect at any time during the past five (5) years. Notwithstanding the
foregoing, no representation or warranty is made under this Section 4.19 in respect of any matters relating to any Benefit Plan or Employment Agreement (as to which no representation or warranty is made except as set forth in
Section 4.14). 
 Section 4.19 Finders’ Fees. Except for fees payable to Oppenheimer & Co.
Incorporated and Jefferies & Company, Inc., there is no fee or commission payable by the Company or any of its Subsidiaries to any investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on
behalf of the Company or any of its Subsidiaries in connection with the transactions contemplated hereby. 
 Section 4.20
Environmental Compliance. Except as set forth Schedule 4.20: 
 (a) the Company and its Subsidiaries have obtained and possess
all material Governmental Authorizations required by applicable Laws relating to pollution or protection of the environment (“Environmental Laws”), and (B) the Company and its Subsidiaries are in compliance with all terms and
conditions of such Governmental Authorizations and all applicable Environmental Laws. 
 (b) Neither the Company nor any of its Subsidiaries
has received any notice regarding any actual or alleged material violation of Environmental Laws, or any investigatory, remedial or corrective obligations under Environmental Laws, relating to any of the Leased Real Property arising under
Environmental Laws that is pending and unresolved. 
 (c) There are no pending or, to the Knowledge of the Company, threatened Orders or
Litigations involving environmental matters or Environmental Laws against the Company or any of its Subsidiaries. 

  
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 (d) This Section 4.20 constitutes the sole representations and warranties of the
Company with respect to any environmental matters or Environmental Laws. 
 Section 4.21 Absence of Certain Changes or Events.
Since December 31, 2013, there has not been or occurred: (a) a Material Adverse Effect; (b) any making, declaration, setting aside or payment of any dividend on, or other distribution (whether in cash, stock or property) in respect
of, any capital stock or membership interest of the Company or any of its Subsidiaries, or any purchase, redemption or other acquisition by the Company or any of its Subsidiaries of any of its capital stock, membership interest or any other equity
securities of such Person (other than any such dividend, distributions, purchases, redemptions, acquisitions or other similar transactions (I) solely involving the Company or any of its Subsidiaries, (II) or otherwise to satisfy obligations in
respect of the Funded Indebtedness or (III) relating to the repurchase of shares of Common Stock from employees pursuant to the subscription agreements with respect thereto or pursuant to any Benefit Plan or Employment Agreement); (c) any
granting by the Company or any of its Subsidiaries of any material increase in compensation to any employee (except for increases in the ordinary course of business, or any entry by the Company or any of its Subsidiaries into any Benefit Plan or
Employment Agreement or amendment of an existing Benefit Plan or Employment Agreement) to grant or provide to any officer the acceleration of vesting, termination, severance, retention or change in control payments or other similar benefits;
(d) any change by the Company or any of its Subsidiaries in its accounting methods, principles or practices (including any change in depreciation or amortization policies or rates or revenue recognition policies), except as required by either
Law or GAAP; (e) any material revaluation by the Company or any of its Subsidiaries of any of its material assets, excluding writing-off or discounting of notes, accounts receivable or other assets in the ordinary course of business consistent
with past practice; or (f) any change by the Company or any of its Subsidiaries in its material Tax elections or accounting methods, entry into any closing agreement by the Company or any of its Subsidiaries, settlement or compromise of any
claim or assessment, in each case in respect of material Taxes, or any consent by the Company or any of its Subsidiaries to any extension or waiver of any limitation period with respect to any claim or assessment for material Taxes. Except as
set forth in Schedule 4.21 or as otherwise contemplated hereby, since December 31, 2013, the Company and its Subsidiaries, taken as a whole, have conducted their respective businesses in all material respects in the ordinary course of
business consistent with past practice. 
 Section 4.22 No Undisclosed Liabilities. Except for liabilities (a) reflected or
reserved for in any of the Financial Statements or (b) incurred in the ordinary course of business, and other liabilities not exceeding Two Hundred Thousand Dollars ($200,000) in the aggregate, there are no liabilities of the Company or any of
its Subsidiaries that would be required to be reflected on a consolidated balance sheet of the Company and its Subsidiaries that is prepared in accordance with GAAP. 

Section 4.23 Permits and Licenses. Schedule 4.23 lists all material Governmental Authorizations owned by the Company or any
of its Subsidiaries. The Company possesses, and is in compliance in all material respects with all Government 

  
 30 

 
Authorizations necessary to conduct the business. Since January 1, 2011, neither the Company nor any of its Subsidiaries has received notice from any Governmental Entity revoking or
threatening to revoke any material Governmental Authorization or alleging that the Company or any of its Subsidiaries are in material violation of any such Governmental Authorization. 

Section 4.24 Related Party Transactions. Except (i) for this Agreement and the Ancillary Agreements and the transactions
contemplated hereby or thereby, (ii) as set forth on Schedule 4.24, (iii) for any Benefit Plans, Employment Agreements or similar arrangements, and (iv) for any Contracts or arrangements solely between or among the Company
and/or any of its Subsidiaries (or among such Subsidiaries), no Affiliate of the Company or any of its Subsidiaries is a party to any material Contract or other material business arrangement with the Company or any of its Subsidiaries. 

Section 4.25 Suppliers and Customers. 

(a) Schedule 4.25(a) sets forth a list of the ten (10) largest customers of the Company and its Subsidiaries on a consolidated
basis (the “Top Ten Customers”) as measured by the aggregate amount of revenue received by the Company and its Subsidiaries on a consolidated basis from such customers from the period commencing on January 1, 2013 and ending on
December 31, 2013, and for the three months ended March 31, 2014. 
 (b) Schedule 4.25(b) sets forth a list of the ten
(10) largest suppliers of the Company and its Subsidiaries on a consolidated basis (the “Top Ten Suppliers”) as measured by the aggregate amount of expenses accrued by the Company and its Subsidiaries on a consolidated basis
with respect to payments to such suppliers from the period commencing on commencing on January 1, 2013 and ending on December 31, 2013, and for the three months ended March 31, 2014. 

(c) To the Knowledge of the Company, since January 1, 2011, neither the Company nor its applicable Subsidiary has received notice of any
proposed termination of any relationship with any such customer or supplier. 
 Section 4.26 Regulatory Matters. 

(a) Schedule 4.26(a) sets forth a true and complete list of all Regulatory Authorizations from the FDA and all other Regulatory
Authorities (including ANDAs, NDAs and marketing authorizations) and the equivalent foreign registrations and approvals, held by the Company or any of its Subsidiaries, relating to the Business Products and used in the conduct of the Company’s
business (collectively, the “Company Regulatory Authorizations”), and there are no other material Regulatory Authorizations required for the Company or any of its Subsidiaries or the Business Products in connection with the conduct
of the Company’s business as currently conducted. All Company Regulatory Authorizations are in all material respects, (i) in full force and effect, (ii) validly registered and on file with the applicable Regulatory Authorities, and
(iii) in compliance with all formal filing and maintenance requirements. The Company 

  
 31 

 
has made available to Buyer complete and accurate copies of all Regulatory Authorizations and regulatory dossiers relating thereto, all serious adverse event reports, periodic adverse event
reports and other pharmacoviligence reports and data, and all other material Regulatory Authority communications, documents and other information submitted by the Company or any of its Subsidiaries to or received by the Company or any of its
Subsidiaries from the FDA or any equivalent Regulatory Authority, including inspection reports, warning letters, Form 483s and similar documents, relating to the Company, any of its Subsidiaries, the conduct of the Company’s business, or the
Business Products. The Company or its applicable Subsidiary has timely filed all required notices and responses to notices, supplemental applications, reports (including adverse experience reports), documents, claims, permits and other information
with the FDA and all other applicable Regulatory Authorities. To the Knowledge of the Company, all such notices and responses to notices, supplemental applications, reports (including adverse experience reports), documents, claims, permits and other
information were complete and accurate in all material respects on the date filed (or were correct in or supplemented by a subsequent filing). 

(b) Except as set forth in Schedule 4.26(b), without limiting the generality of any other representations and warranties under this
Agreement, since January 1, 2011, (i) the Company and its Subsidiaries have been in compliance in all material respects with the U.S. Food, Drug, and Cosmetic Act, as amended (21 U.S.C. §§ 301, et seq.) and all other applicable
statutes, rules and regulations of the FDA or other similar federal, state or local governmental authorities or similar foreign government authorities including with respect to the manufacture, collection, sale, labeling, storing, testing,
distribution, marketing, record keeping, training and adverse event reporting; (ii) the Company and its Subsidiaries have been in compliance in all material respects with all written requirements from the FDA and other Regulatory Authorities,
including all requirements of the FDA and all other Regulatory Authorities in warning letters, notices of adverse findings, Form 483s, Section 305 notices and similar letters or notices, and in connection with all product recalls, notifications
and safety alerts, and any request from the FDA or any Regulatory Authority requesting the Company or any Subsidiary of the Company to cease to investigate, test or market any product, and all consent decrees (including plea agreements) issued with
respect to the Company or any of its Subsidiaries; (iii) there have been no inspection reports, warning letters, notices of adverse findings, Form 483s, Section 305 notices or similar written documents received by the Company or any of its
Subsidiaries; (iv) to the Knowledge of the Company, there are no (nor has the Company been notified by a third party of any) pending regulatory actions, field alerts, investigations or inquiries of any sort by the FDA or any other Regulatory
Authority (other than non-material routine or periodic inspections or reviews) against the Company or any of its Subsidiaries or with respect to any Business Products ; (v) there have been no product recalls, warnings, notifications or safety
alerts, whether voluntary or involuntary, conducted or issued by the Company or any of its Subsidiaries, the FDA or any other Regulatory Authorities with respect to the Business Products and none of the foregoing has been requested or demanded by
the FDA or any other Regulatory Authorities; (vi) neither the Company nor any of its Subsidiaries, nor, to the Knowledge of the Company, any of its employees, agents or subcontractors, has been convicted of any crime or engaged in any conduct
which has or would reasonably be 

  
 32 

 
expected to result in suspension, debarment or exclusion from participation in Federal health care programs or in Federal procurement or nonprocurement programs by the FDA or any other Regulatory
Authority. No criminal, injunctive, seizure or civil penalty actions has, at any time, been commenced or threatened by any Regulatory Authority or other Governmental Entity against the Company or any of its Subsidiaries or, to the Knowledge of the
Company, any of its agents or subcontractors, and there are no consent decrees (including plea agreements) or similar actions to which the Company or any of its Subsidiaries is bound or which relate to the Business Products. Neither the Company nor
any of its Subsidiaries has made any untrue statement of fact or fraudulent statement to the FDA or any other Regulatory Authority or Government Entity related to the Business Products nor have they failed to disclose any fact required to be
disclosed to the FDA or any other Regulatory Authority related to the Business Products, that, at the time the disclosure was made, would reasonably be expected to provide a basis for the FDA to invoke its policy respecting “Fraud, Untrue
Statements of Material Facts, Bribery, and Illegal Gratuities” or for the FDA or other Regulatory Authority to invoke any similar policy. 

(c) The Company has made available to Buyer complete and accurate copies of all Regulatory Authorizations and regulatory dossiers relating
thereto, all serious adverse event reports, periodic adverse event reports and other pharmacoviligence reports and data, and all other material Regulatory Authority communications, documents and other information submitted by the Company or any of
its Subsidiaries to or received by the Company or any of its Subsidiaries from the FDA or any equivalent Regulatory Authority, including inspection reports, warning letters and similar documents, relating to the Company, any of its Subsidiaries, the
conduct of the Company’s business, or the Business Products. 
 (d) The manufacture of Business Products by the Company and each of its
Subsidiaries is, or, in the case of any Business Products manufactured by any Business Partner, to the Knowledge of the Company is, being conducted in material compliance with the applicable requirements of current Good Manufacturing Practices. In
addition, each of the Company and each of its Subsidiaries and, to the Knowledge of the Company, each of its respective Business Partners, is in material compliance with all applicable registration and listing requirements, including, for example,
those set forth in 21 U.S.C. Section 360 and 21 C.F.R. Parts 207 and all similar applicable Laws. No Business Product sold by the Company or any Subsidiary of the Company or held in inventory by the Company or any Subsidiary of the Company has
been adulterated or misbranded. All labeling is in material compliance with the FDCA, related regulations and other Regulatory Authority requirements, and all advertising and promotional materials of the Company or any of its Subsidiaries are in
material compliance with the FDCA, related regulations and other applicable Regulatory Authority requirements. 
 Section 4.27
Improper Payments. Neither the Company, nor any of its Subsidiaries, nor to the Company’s Knowledge, any of their respective Representatives has, in connection with the operation of their respective businesses, (i) used or promised
any Company or other funds for unlawful contributions, payments, gifts or entertainment, or made any unlawful expenditures relating to political activity to government officials, 

  
 33 

 
candidates or members of political parties or organizations, or established or maintained any unlawful or unrecorded funds in violation of the Foreign Corrupt Practices Act of 1977, as if it were
applicable to the Company or any of its Subsidiaries at that time, or any other similar applicable Law, (ii) paid, promised, accepted or received any unlawful contributions, payments, expenditures or gifts or (iii) violated or operated in
noncompliance with any export restrictions, anti-boycott regulations, embargo regulations or other applicable domestic or foreign Laws. 

Section 4.28 Limitations on Representations and Warranties. Except as expressly set forth in Article III, this Article
IV or in the officer’s certificate delivered to Buyer pursuant to Section 9.2(d), neither any Stockholder, any holder of Company Stock Options nor the Company makes any representation or warranty, express or implied, at Law or
in equity, with respect to itself, the Company or any of its Subsidiaries or any of their other Affiliates, or any of their respective assets, liabilities, businesses or operations and any such other representations or warranties are hereby
expressly disclaimed. 
 ARTICLE V 

REPRESENTATIONS AND WARRANTIES OF BUYER AND MERGER SUB 

Each of Buyer and Merger Sub hereby jointly and severally represent and warrant to the Company, the Stockholders’ Representative and the
Stockholders, as of the date hereof and as of the Closing Date, as follows: 
 Section 5.1 Organization and Qualification. Buyer
is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware. Buyer has all requisite corporate (or similar entity) power and authority to own and operate its properties and assets and to carry on
its business as currently conducted. Merger Sub is a corporation duly organized, validly existing and in good standing under the laws of Delaware. Each of Buyer and Merger Sub has all requisite corporate (or similar entity) power and authority to
own or lease and operate its properties and assets and to carry on its business as currently conducted. Each of Buyer and Merger Sub is duly qualified or licensed to do business and is in good standing in each jurisdiction where the ownership or
operation of its properties and assets or the conduct of its business requires such qualification, except for failures to be so qualified or licensed or in good standing that would not, individually or in the aggregate, reasonably be expected to
materially adversely affect the ability of Buyer or Merger Sub to execute, deliver or perform this Agreement or any Ancillary Agreement, or to timely consummate the transactions contemplated hereby or thereby. 

Section 5.2 Merger Sub. Merger Sub was formed solely for the purpose of engaging in the transactions contemplated by this
Agreement and the Ancillary Agreements and, since the date of its incorporation, Merger Sub has not carried on any business or conducted any operations other than the execution of this Agreement and the Ancillary Agreements to which it is a party,
the performance of its obligations hereunder and thereunder and matters ancillary hereto and thereto. The authorized capital stock of Merger Sub consists solely of One Thousand (1,000) shares of common stock, par value $0.01 per share, all of
which have been validly issued, are fully paid and nonassessable and are owned directly by Buyer free and clear of any Liens. 

  
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 Section 5.3 Corporate Authorization. Each of Buyer and Merger Sub has all requisite
corporate (or similar entity) power and authority to execute and deliver this Agreement and each of the Ancillary Agreements to which it is a party, and to perform its obligations hereunder and thereunder. The execution, delivery and performance by
each of Buyer and Merger Sub, respectively, of this Agreement and each of the Ancillary Agreements to which it is a party have been duly and validly authorized by each of Buyer and Merger Sub and no additional corporate (or similar entity)
authorization or consent by either Buyer or Merger Sub is required in connection therewith. 
 Section 5.4 Binding Effect. This
Agreement and each of the Ancillary Agreements to which Buyer or Merger Sub is a party, when executed and delivered by the parties thereto, constitutes a valid and legally binding obligation of Buyer and Merger Sub, enforceable against Buyer and
Merger Sub, as applicable, in accordance with their respective terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, or moratorium Laws, other similar Laws affecting creditors’ rights
and general principles of equity affecting the availability of specific performance and other equitable remedies. 
 Section 5.5
Regulatory Approvals and Non-Governmental Consents. 
 (a) Except as set forth in Schedule 5.5(a) (the “Buyer
Regulatory Approvals” and, together with the Company Regulatory Approvals, the “Regulatory Approvals”), no Governmental Authorization or filing is required to be obtained by Buyer or Merger Sub from, or to be given by Buyer
or Merger Sub to, or made by Buyer or Merger Sub with, any Governmental Entity or securities exchange, as a result of the execution, delivery or performance by Buyer or Merger Sub of (i) its obligations under this Agreement or (ii) its
material obligations under the Ancillary Agreements, except for such Governmental Authorization or filings that if failed to be obtained, given or made would not, individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect or a material adverse effect on the Buyer’s or Merger Sub’s ability to execute, deliver or perform this Agreement or any Ancillary Agreement, or to timely consummate the transactions contemplated hereby or thereby. 

(b) Except as set forth in Schedule 5.5(b) (the “Buyer Non-Governmental Consents” and, together with the Company
Non-Governmental Consents, the “Non-Governmental Consents”), no material consent, approval, waiver or authorization is required to be obtained by Buyer or Merger Sub from, or to be given by Buyer or Merger Sub to, or made by Buyer
or Merger Sub with, any Person other than a Governmental Entity or securities exchange, as a result of the execution, delivery or performance by Buyer or Merger Sub of this Agreement and the Ancillary Agreements. 

Section 5.6 Non-Contravention. The execution, delivery and performance by Buyer and Merger Sub of this Agreement and each of the
Ancillary Agreements to which it is a party, and the consummation of the transactions contemplated hereby and thereby, 

  
 35 

 
do not and will not (i) violate in any respect any provision of the Organizational Documents of Buyer or Merger Sub, (ii) assuming the receipt of all Regulatory Approvals and
Non-Governmental Consents, conflict with, or result in the breach of, or constitute a default under, or result in the termination, cancellation, modification or acceleration (whether after the filing of notice or the lapse of time or both) of any
right or obligation of Buyer or Merger Sub under, or result in a loss of any benefit to which Buyer or Merger Sub is entitled under, any Contract to which Buyer or Merger Sub is a party or result in the creation of any Lien upon any assets of the
Buyer or Merger Sub or (iii) assuming the receipt of all Regulatory Approvals and Non-Governmental Consents, violate or result in a breach of or constitute a default under any Law or Governmental Authorization to which Buyer or Merger Sub is
subject. 
 Section 5.7 Finders’ Fees. Except for fees payable by Buyer, there is no investment banker, broker, finder or
other intermediary that has been retained by or is authorized to act on behalf of Buyer or any of its Affiliates who might be entitled to any fee or commission from Buyer or its Affiliates in connection with the transactions contemplated hereby.

 Section 5.8 Litigation and Claims. There are no Litigations pending or, to Buyer’s Knowledge, threatened against Buyer
or Merger Sub that, individually or in the aggregate, have had or would reasonably be expected to have a material adverse effect on the ability of Buyer or Merger Sub to execute, deliver or perform this Agreement or any Ancillary Agreement, or to
timely consummate the transactions contemplated hereby or thereby. Neither Buyer nor Merger Sub is subject to any material Order of any Governmental Entity of competent jurisdiction or any arbitrator or arbitrators. 

Section 5.9 Financial Capability. Buyer has, and will have at Closing, sufficient funds and adequate financial resources to
satisfy its monetary and other obligations under this Agreement. Buyer and Merger Sub acknowledge that the obligations of Buyer and Merger Sub under this Agreement are not contingent upon or subject to any conditions regarding Buyer’s, Merger
Sub’s, any of their respective Affiliates’, or any other Person’s ability to obtain financing for the consummation of the transactions contemplated hereby. 

Section 5.10 Solvency. Immediately after giving effect to the Closing (and any transactions related thereto or incurred in
connection therewith), each of Buyer, the Surviving Corporation and the Subsidiaries of the Surviving Corporation shall be able to pay their respective debts as they become due and shall own property which has a fair saleable value greater than the
amounts required to pay their respective debts (including a reasonable estimate of the amount of all contingent liabilities). Immediately after giving effect to the Closing (and any transactions related thereto or incurred in connection therewith),
each of Buyer, the Surviving Corporation and the Subsidiaries of the Surviving Corporation shall have adequate capital to carry on their respective businesses. No transfer of property is being made and no obligation is being incurred in connection
with the transactions contemplated by this Agreement with the intent to hinder, delay or defraud either present or future creditors of Buyer, the Company, the Surviving Corporation or any Subsidiaries of the Company or the Surviving Corporation.

  
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 Section 5.11 Limitations on Representations and Warranties. Except as expressly set
forth in this Article V or in the officer’s certificate delivered to the Stockholders’ Representative pursuant to Section 9.3(c), neither Buyer nor Merger Sub makes any representation or warranty, express or implied, at
Law or in equity, with respect to itself or any of its respective Affiliates, or any of their respective assets, liabilities, businesses or operations and any such other representations or warranties are hereby expressly disclaimed. 

ARTICLE VI 

COVENANTS 

Section 6.1 Access and Reports. 

(a) Subject to applicable Law, upon reasonable notice from Buyer to the Company, the Company shall afford Buyer’s officers and other
authorized representatives reasonable access to the properties, Books and Records and Contracts of the Company and its Subsidiaries during normal business hours throughout the period prior to the Closing Date and, during such period, the Company
shall make available promptly to Buyer all information concerning the operations, properties and personnel of the Company and its Subsidiaries as Buyer may reasonably request, provided that the foregoing shall not require the Company or its
Affiliates (i) to disclose any privileged information of the Company or any of its Affiliates, (ii) to permit any environmental sampling, testing or other intrusive investigations of the Leased Real Property or (iii) to take any
action that would cause material disruption to the business of the Company or its Affiliates. The Company will use commercially reasonable efforts to disclose as much information as reasonably requested by the Buyer and the Buyer’s officers and
other authorized representatives as possible, without compromising any privilege. 
 (b) Any such investigation by Buyer or Merger Sub shall
not unreasonably interfere with any of the businesses or operations of the Company or its Subsidiaries. Neither Buyer nor Merger Sub shall, prior to the Closing Date, have any contact whatsoever with respect to the Company or any of its Subsidiaries
or with respect to the transactions contemplated by this Agreement with any agent, broker, partner, lender, lessor, vendor, customer, supplier, employee or consultant of the Company or any of its Subsidiaries, except in consultation with the Company
and then only with the express prior approval of the Company, which approval shall not be unreasonably withheld. All requests for information made pursuant to this Section 6.1 shall be directed to the Person designated by the Company in
a notice given to Buyer, and all such information shall be governed by the terms of Section 6.5 and the Confidentiality Agreement. 

Section 6.2 Efforts to Consummate; Certain Governmental Matters. 

(a) The Company, on the one hand, and Buyer, on the other hand, shall, and shall cause their respective Subsidiaries to, use their respective
commercially reasonable efforts to obtain and to cooperate in obtaining any Regulatory Approvals and 

  
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Non-Governmental Consents required in connection with the execution, delivery or performance of this Agreement or any Ancillary Agreement. In connection with and without limiting the foregoing,
Buyer, Merger Sub and the Company shall as promptly as reasonably practicable, but in no event later than ten (10) Business Days after the date hereof, duly file with the United States Federal Trade Commission and the Antitrust Division of the
Department of Justice the notification and report form required under the HSR Act with respect to the transactions contemplated by this Agreement. Subject to Section 6.2(b), the parties hereby agree to diligently pursue termination of
the waiting periods under the HSR Act or any other Competition/Investment Law (including promptly responding to any requests for additional information). Each party shall use its reasonable best efforts to cooperate with the other party in such
other party’s efforts to obtain any Non-Governmental Consents as are required in connection with the consummation of the transactions contemplated hereby. Each of Buyer, Merger Sub and the Company agree to take commercially reasonable steps to
avoid or eliminate each and every impediment under the HSR Act or any other Competition/Investment Law that is asserted by any Governmental Entity with respect to the Merger so as to enable the Merger to occur as expeditiously as possible,
including: (i) the prompt preparation and filing of all forms, registrations and notices required to be filed to consummate the transactions contemplated by this Agreement and the taking of such commercially reasonable actions as are necessary
to obtain any requisite approvals, consents, orders, exemptions or waivers by any Governmental Entity or any other Person, including filings pursuant to the HSR Act and any actions necessary to cause the expiration of the notice periods under the
HSR Act and (ii) using commercially reasonable efforts to cause the satisfaction of all conditions to the Closing (other than conditions as to the performance by the other Parties of their obligations) (provided, that the Company shall
not be obligated to take any such action unless the taking of such action is expressly conditioned upon the consummation of the Merger and the other transactions contemplated in this Agreement), in each case, as may be required in order to obtain
any clearance under the HSR Act or any other Competition/Investment Law or to avoid the entry of, or to effect the dissolution of, any injunction, temporary restraining order, or other order in any Litigation, which would otherwise have the effect
of preventing or delaying the consummation of the Merger. Notwithstanding anything to the contrary in this Agreement, nothing in this Agreement shall require Buyer or any of its Affiliates to, and the Company and its Subsidiaries shall not, agree
to, any sale, divestiture, license or other disposition of any products, assets or property of the Company and its Subsidiaries if such actions reasonably would be expected (i) to materially and adversely affect the benefits expected to be
derived by Buyer and its Affiliates from the transactions contemplated by this Agreement or (ii) be material to the Company and its Subsidiaries, taken as a whole. Further, notwithstanding anything to the contrary in this Agreement,
neither Buyer nor any of its Affiliates shall be required to agree to any sale, divestiture, license or other disposition whatsoever of any products, assets or property of Buyer or any of its Affiliates. 

(b) Subject to the terms and conditions set forth in this Agreement, Buyer, Merger Sub, and the Company shall use, and shall cause their
respective Subsidiaries to use, their respective commercially reasonable efforts to take or cause to be taken all actions, and do or cause to be done all things, necessary, or reasonably advisable 

  
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on its part under this Agreement and the Ancillary Agreements and applicable Law to satisfy the conditions to Closing, and to consummate and make effective the transactions contemplated by this
Agreement and the Ancillary Agreements as soon as practicable. 
 (c) Buyer, Merger Sub, and the Company each shall, upon request by the
other and subject to appropriate confidentiality restrictions, furnish the other with all material documentation concerning the Company or any of its Subsidiaries or Buyer and Merger Sub and such other matters as may be necessary or reasonably
advisable in connection with any notices, reports, statements, applications or other filings made by or on behalf of Buyer, or the Company, or any of their respective Affiliates to any Governmental Entity in connection with the transactions
contemplated by this Agreement and the Ancillary Agreements; provided that any such documentation furnished by the parties to one another may be redacted to the extent necessary, either to comply with applicable Law or to protect the
confidentiality of information that if furnished would not materially facilitate the other party’s understanding of the status of matters relating to consummation of the transactions contemplated hereby. In addition, Buyer and the Company may,
as each deems advisable and necessary, reasonably designate any competitively sensitive material provided to the other as “outside counsel only.” Such materials and the information contained therein shall be given only to the outside
counsel of the recipient and will not be disclosed by such outside counsel to employees, officers or directors of the recipient unless express permission is obtained in advance from the source of the materials or its legal counsel. 

(d) Subject to applicable Law or as prohibited by any Governmental Entity, Buyer, Merger Sub, and the Company each shall keep the other
apprised of the status of matters relating to consummation of the transactions contemplated hereby, including (i) promptly notifying the other of any facts, circumstances or other reason that would prevent the receipt of any Regulatory
Approvals or the Non-Governmental Consents for the timely consummation of transactions contemplated by this Agreement and the Ancillary Agreements, and (ii) promptly furnishing the other with copies of material notices or other communications
received by Buyer, Merger Sub, or the Company, as the case may be, from any third party or any Governmental Entity with respect to the transactions contemplated by this Agreement and the Ancillary Agreements; provided that any such notices
furnished by the parties to one another may be redacted to the extent necessary, either to comply with applicable Law or to protect the confidentiality of information that if furnished would not materially facilitate the other party’s
understanding of the status of matters relating to consummation of the transactions contemplated hereby. None of Buyer, Merger Sub, or the Company shall permit any of its officers or any other representatives or agents to participate in any meeting
with any Governmental Entity with respect to any filings, investigation or other inquiry relating to the transactions contemplated hereby unless it consults with the other party in advance and, to the extent permitted by such Governmental Entity,
gives the other party the opportunity to attend and participate thereat. 
 (e) Each of Buyer, Merger Sub and the Company shall
(i) respond as promptly as practicable under the circumstances to any inquiries received from any Governmental Entity for additional information or documentation and to all inquiries and 

  
 39 

 
requests received from any Governmental Entity, (ii) not extend any waiting period under the HSR Act without the prior written consent of the other party (such consent not to be unreasonably
withheld, conditioned or delayed), and (iii) not enter into any agreement with any Governmental Entity not to consummate the Merger or the other transactions contemplated by this Agreement without the prior written consent of the other party
(such consent not to be unreasonably withheld, conditioned or delayed). 
 (f) As soon as practicable after the Closing Date, Buyer shall,
and shall cause the Surviving Corporation and each of its Subsidiaries to, prepare and file all notices, reports, statements, applications and other filings as required by applicable Law or any Governmental Entity or as otherwise customary or
advisable under applicable Law as a result of the consummation on the Closing Date of the transactions contemplated hereby. 
 (g) Subject
to applicable Law and except as required by any Governmental Entity, none of Buyer, Merger Sub or the Company shall take any action that would be reasonably likely to prevent or materially delay the receipt of any Regulatory Approvals or
Non-Governmental Consents, in each case, to the extent necessary for the timely consummation of the transactions contemplated by this Agreement and the Ancillary Agreements, including, without limitation, entering into any agreement, arrangement or
understanding with regard to consummating an acquisition entailing overlapping business products, or consummate any such acquisition. 

Section 6.3 Payoff Letters. No later than one Business Day prior to the anticipated Closing Date, the Company shall provide Buyer
with Payoff Letters (conditioned upon Closing) for those entities set forth in Schedule 9.2(g)(i). The Company shall use commercially reasonable efforts to provide Buyer with Payoff Letters (conditioned upon Closing) no later than one
Business Day prior to the anticipated Closing Date for those entities set forth in Schedule 9.2(g)(ii); provided, however, that if such Payoff Letters cannot be obtained, then the Company will provide Buyer with draft Payoff
Letters no later than one Business Day prior to the anticipated Closing Date, and the signed Payoff Letters on the Closing Date. The Company shall use commercially reasonable efforts to make arrangements reasonably satisfactory to Buyer to provide
to Buyer lien releases such that all Liens on the assets or properties of the Company or any of its Subsidiaries shall be satisfied, terminated and discharged on or prior to the Closing Date or upon payment of applicable indebtedness, and shall use
commercially reasonable efforts to make arrangements satisfactory to Buyer to provide documents reasonably requested by Buyer prior to the Closing to further evidence such satisfaction, termination and discharge. 

Section 6.4 Interim Operation Covenants of the Company. Except (A) as required by applicable Law or any Governmental Entity,
(B) as otherwise contemplated by this Agreement or any Ancillary Agreement, (C) as Buyer may consent (D) for repurchases of capital stock from current or former employees pursuant to subscription agreements with respect thereto or
pursuant to any Benefit Plan or Employment Agreement, or (E), as set forth in Schedule 6.4, during the period from the date hereof until the Closing Date: 

  
 40 

 (a) The Company and its Subsidiaries shall conduct their business in the ordinary course in a
manner consistent with past practice and use commercially reasonable efforts to: 
 (i) preserve their assets; 

(ii) preserve, maintain the value of, renew, extend and keep in full force and effect all material Intellectual Property Rights
and Regulatory Authorizations; 
 (iii) preserve its business organization intact and maintain its existing relations and
goodwill with customers, suppliers, distributors, licensors, creditors and lessors and others having business dealings with the Company or its Subsidiaries; 

(iv) comply with all applicable Laws; and 

(v) keep available the services of its current key Employees. 

(b) The Company shall not, nor permit any of its Subsidiaries to Company to: 

(i) implement or adopt any change in the Accounting Principles, practices or methods of the Company or any of its Subsidiaries,
other than as may be required by Law or applicable accounting requirements; 
 (ii) make, revoke or change any election in
respect of Taxes, change or revoke any accounting method in respect of Taxes, file any amendment to a Tax Return, enter into any closing agreement, settle or compromise any material claim or assessment in respect of Taxes, prepay any Taxes in
advance of the required payment date, or consent to any extension or waiver of the statutory period of limitations applicable to any claim or assessment in respect of Taxes; 

(iii) (A) terminate, enter into, establish, adopt, or amend any Benefit Plan or Employment Agreement, or any such arrangement
that would be a Benefit Plan or Employment Agreement if it was in effect on the date hereof (other than amendments required by Law or to maintain the tax qualified status of any Benefit Plan under Section 401(a) of the Code), (B) other
than annual increases in the ordinary course of business consistent with past practice, increase the base salary, incentive compensation, severance or retirement benefits of any employee (other than as required by any Benefit Plan or Employment
Agreement in effect as of the date of this Agreement), or (C) take any action to accelerate the vesting or exercisability of Company Stock Options, restricted stock or other material equity-based compensation or benefits, other than, in any
such case, (x) to the extent any such amounts are paid in cash prior to Closing or to the extent such amounts are Transaction Related Expenses, or (y) as required by any Benefit Plan or Employment Agreement in effect as of the date of this
Agreement; 

  
 41 

 (iv) hire any person to be employed by the Company or any of its Subsidiaries or
terminate the employment of any employee of the Company or any of its Subsidiaries, other than the hiring or firing of employees with total annual cash compensation not in excess of $100,000; 

(v) fail to exercise any rights of renewal with respect to any material Leased Real Property that by its terms would otherwise
expire; 
 (vi) grant or acquire, agree to grant to or acquire from any Person, or dispose of or permit to lapse any material
Intellectual Property Rights or disclose or agree to disclose to any Person, other than representatives of the Company or the Buyer, any trade secret; 

(vii) acquire (by merger or stock or asset purchase or otherwise) any corporation, partnership, other business organization or
any material business or division thereof; 
 (viii) amend its Organizational Documents; 

(ix) issue, deliver, sell, pledge, dispose of or encumber any shares of its own capital stock or equity interests (other than
in connection with the exercise of Company Stock Options outstanding as of the date of this Agreement), or any options, warrants, convertible securities or other rights exercisable therefor or convertible thereinto, other than any such shares,
equity interests, options, warrants, convertible securities or other rights that are outstanding on the date hereof or that are issued to the Company or any of its Subsidiaries; 

(x) adjust, split, combine, redeem, reclassify, purchase or otherwise acquire, any shares of its own capital stock or equity
interests, or any options, warrants, convertible securities or other rights exercisable therefor or convertible thereinto, other than any such transaction or event involving solely the Company or one or more of the Subsidiaries of the Company, and
other than repurchases of shares of Common Stock from current or former employees, officers, directors or independent contractors in accordance with the terms of the relevant grant documents; it being understood that the Company shall be freely
permitted to cause any of its Subsidiaries to declare, pay or issue cash dividends or distributions (it being further understood and agreed that all of the cash and cash equivalents of the Subsidiaries of the Company may be paid (by dividend,
distribution or otherwise) to the Company or its Affiliates or designees at or prior to Closing); 
 (xi) incur any
indebtedness for borrowed money to the extent such indebtedness does not constitute a current liability under the Accounting Principles, excluding (i) any such indebtedness that will be paid on or prior to the Closing Date,
(ii) indebtedness under the Funded Indebtedness and (iii) indebtedness with respect to letters of credit, hedging transactions or capital leases made in the ordinary course of business; 

  
 42 

 (xii) declare, set aside, make or pay any dividend or other distribution, whether
payable in cash, stock, property or otherwise, in respect of its capital stock or other equity interests; 
 (xiii) issue any
note, bond, or other debt security or create, incur, assume, endorse or guarantee any liabilities, obligations or indebtedness for borrowed money to the extent such indebtedness does not constitute a current liability under the Accounting
Principles, excluding any such indebtedness that will be paid on or prior to the Closing Date; 
 (xiv) make any loans,
advances or capital contributions to, or investments in, any Person, in each case, other than any loans or advances made to any employee, officer, director or independent contractor in the ordinary course of business; 

(xv) except as required by a Benefit Plan or an Employment Agreement in effect as of the date of this Agreement,
(x) modify, amend or terminate, or renew or extend (except, in each case, on terms no less favorable to the Company), or waive, release or assign any rights or claims under, any Material Contract or (y) enter into any other Contract that,
if existing on the date of this Agreement, would be a Material Contract; 
 (xvi) waive any rights of substantial value or
(B) cancel or forgive any indebtedness owed to the Company or (C) pay, settle or dismiss any Litigation or other dispute other than Litigation or disputes that do not relate to Intellectual Property, are settled solely with monetary
damages and no other remedies and are paid no more than $350,000 in the aggregate; 
 (xvii) sell, transfer, lease, sublease,
license, abandon, permit to lapse or otherwise dispose of or pledge to encumber any assets other than assets of less than $50,000 in the aggregate and sales of inventory in the ordinary course of business consistent with past practice; or 

(xviii) enter into any Contract with respect to any of the foregoing. 

(c) The Company, and any applicable Subsidiaries, shall use commercially reasonable efforts to finalize the transfer of any Regulatory
Authorizations owned by the Company or any of its Subsidiaries for which neither the Company nor any of its Subsidiaries is listed as the applicant in the FDA publication “Approved Drug Products with Therapeutic Equivalence Evaluations”
(i.e., the “Orange Book”). 

  
 43 

 Section 6.5 Public Disclosure; Confidentiality. 

(a) Notwithstanding anything to the contrary contained in this Agreement, except as may be required to comply with the requirements of any
applicable Law, NASDAQ requirement or TSX requirement (in which case, the party required by applicable Law to make such disclosure shall provide notice to the other party in advance of such disclosure to the extent reasonably practicable), from and
after the date hereof, neither Buyer, Merger Sub, the Company nor the Stockholders’ Representative shall make any press release or similar public announcement or communication relating to this Agreement unless specifically approved in advance
by Buyer and the Stockholders’ Representative, which approval shall not be unreasonably withheld, conditioned or delayed. The parties will agree on a form of press release prior to execution of this Agreement, and all subsequent disclosures by
the Buyer, Merger Sub, the Company or the Stockholders’ Representative shall be in a form substantially similar to the agreed upon disclosure, except as may be required to comply with the requirements of any applicable Law, NASDAQ requirement
or TSX requirement and except in connection with any dispute between the parties. 
 (b) From and after the date of this Agreement, each of
Buyer, Merger Sub, the Company and the Stockholders’ Representative shall, and shall cause each of their respective Affiliates to, keep confidential the terms of this Agreement and the Ancillary Agreements and the negotiations relating thereto
and all documents and information obtained by a party from another party in connection with the transactions contemplated hereby (collectively, the “Confidential Information”) except (i) to the extent that any Confidential
Information must be disclosed to obtain the Regulatory Approvals or any other required regulatory approvals or consents relating to the transactions contemplated by this Agreement or any Ancillary Agreement, (ii) for disclosures otherwise made
in satisfaction or enforcement of any of the obligations under this Agreement or disclosures made to the Escrow Agent or its counsel, (iii) to the extent required by applicable Law, in which case, the party required by applicable Law to make
such disclosure shall provide notice to the other party in advance of such disclosure to the extent reasonably practicable, (iv) as made public prior to the date of this Agreement by either party not in violation of this Agreement and
(v) each such Person may disclose such information to such Person’s equity holders or Affiliates or to any Stockholder, and their respective Representatives, in each case on a confidential basis. Notwithstanding anything herein to the
contrary, nothing herein shall restrict any Stockholder, the Stockholders’ Representative or any of their respective Affiliates from disclosing its or their investment in, or information with respect to the performance of or realization on,
their investment in the Company or any of its Subsidiaries. 
 (c) If for any reason whatsoever the transactions contemplated by this
Agreement are not consummated, Buyer and Merger Sub shall upon request from the Company promptly return to the Company all Books and Records (including all copies, if any, thereof) furnished or made available to Buyer, Merger Sub or any of their
Representatives by the Company, the Stockholders’ Representative, any Stockholder or any of their respective Representatives, and shall not use or disclose the information contained in such Books and Records for any purpose or make such
information available to any other Person. 
 (d) This Section shall survive the termination of this Agreement and the consummation of the
Closing. 

  
 44 

 Section 6.6 Directors’ and Officers’ Exculpation; Indemnification. 

(a) Buyer agrees that all rights to indemnification for acts or omissions occurring prior to the Closing now existing in favor of the current
or former directors or officers of the Company or any of its Subsidiaries currently indemnified by the Company or its Affiliates (collectively, the “Covered Persons”) as provided in, and made available to Buyer, their respective
Organizational Documents, indemnity or indemnification agreements or as provided pursuant to a resolution of the board of directors (or similar governing body) of the Company or any of its Subsidiaries that has been made available to Buyer, as
applicable, shall survive the transactions contemplated by this Agreement or the Ancillary Agreements and shall continue in full force and effect in accordance with their terms for a period of not less than six (6) years from the Closing. 

(b) To the fullest extent permitted by applicable Law, Buyer and Surviving Corporation shall, and shall cause each of Surviving
Corporation’s Subsidiaries to, honor all of the obligations of the Company and its Subsidiaries to indemnify (including any obligations to advance funds for expenses) the Covered Persons for acts or omissions by such Covered Persons occurring
prior to the Closing to the extent that such obligations of the Company or any of its Subsidiaries exist on the date of this Agreement and have been made available to Buyer, whether pursuant to Organizational Documents, indemnity or indemnification
agreements, board (or similar governing body) resolution or otherwise, and such obligations shall survive the Closing and shall continue in full force and effect in accordance with the terms of the Organizational Documents of the Surviving
Corporation or any of its Subsidiaries, as the case may be, and such board (or similar governing body) resolutions or indemnity or indemnification agreements from the Closing until the expiration of the applicable statute of limitations with respect
to any claims against such Covered Persons arising out of such acts or omissions. 
 (c) From and after the Closing, to the fullest extent
permitted by applicable Law, Buyer and Surviving Corporation shall, and shall cause each of the Surviving Corporation’s Subsidiaries to, indemnify, defend and hold harmless the Covered Persons and any employee of the Company or any of its
Subsidiaries who acts as a fiduciary under any Benefit Plan (each, a “Subject Party”) against all damages, losses, charges, liabilities, claims, demands, actions, suits, judgments, settlements, costs and expenses (including
reasonable attorneys’ fees and disbursements) (“Covered Losses”), as incurred (payable monthly upon written request which request shall include reasonable evidence of the Covered Losses set forth therein) to the extent arising
from, relating to, or otherwise in respect of, any actual or threatened Litigation in respect of actions or omissions occurring at or prior to the Closing in connection with such Subject Party’s duties as an officer, director or employee (or
Persons holding similar positions) of the Company or any of its Subsidiaries or as a fiduciary under any Benefit Plan, including in respect to this Agreement, any Ancillary Agreement and the transactions contemplated by this Agreement or any of the
Ancillary Agreements. 
 (d) Buyer shall purchase and control through its representatives at an annual cost of no more than 300% of the
annual premium currently being paid by the applicable Person(s)), a six (6) year extended reporting period endorsement under the 

  
 45 

 
existing directors’ and officers’ liability insurance policies of such Person(s) (the “D&O Insurance”), providing that such endorsement shall extend the
directors’ and officers’ liability coverage in force as of the date hereof for a period of six (6) years from the Closing for any claims arising from events which occurred prior to the Closing. Buyer and Surviving Corporation shall,
and shall cause the applicable Subsidiaries of the Surviving Corporation to, (i) upon the request of the Stockholders’ Representative, make any claim for coverage under any such policy and take any action reasonably requested by the
Stockholders’ Representative to obtain reimbursement for Covered Losses under any such policy or to otherwise enforce any such policy or any provision thereof, (ii) promptly inform the Stockholders’ Representative of any communication
received by Buyer or the Surviving Corporation or any Subsidiary of the Surviving Corporation thereof from, or given by Buyer or the Surviving Corporation or any of its Subsidiaries to, any Person issuing any such insurance policy, (iii) permit
the Stockholders’ Representative to review any written communication from any such insurance provider and permit the Stockholders’ Representative to review, before submission, any written communication to such insurance provider,
(iv) consult with the Stockholders’ Representative in advance of any meeting or conference with such insurance provider and, to the extent permitted by such insurance provider, give the Stockholders’ Representative the opportunity to
attend and participate, and (v) upon the Stockholders’ Representative’s request, promptly furnish to the Stockholders’ Representative certificates of insurance evidencing such policy. 

(e) The provisions of this Section 6.6 are (i) intended to be for the benefit of, and shall be enforceable by, each Covered
Person, and each such Person’s heirs, legatees, representatives, successors and assigns, it being expressly agreed that such Persons shall be third party beneficiaries of this Section 6.6, and (ii) in addition to, and not in
substitution for, any other rights to indemnification or contribution that any such Person may have by Contract or otherwise. If Buyer or Surviving Corporation or any of their respective successors or assigns (i) shall consolidate with or merge
into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) shall transfer all or substantially all of its properties and assets to any Person, then, and in each such case,
proper provisions shall be made so that the successors and assigns of Buyer and Surviving Corporation, as the case may be, shall assume all of the obligations of Buyer and Surviving Corporation set forth in this Section 6.6. 

Section 6.7 Updates; Changes in Circumstance. Upon written consent from Buyer, the Company shall have the right, from time to time
prior to the Closing, to supplement or amend the Schedules hereto, other than Schedule 4.8(b) or Schedule 4.8(c) hereto, with respect to any matter that is not material hereafter arising, and each such supplement or amendment shall for
all purposes under this Agreement be deemed to amend and be incorporated into the Schedules hereto. 
 Section 6.8 No Shop.
Prior to the Closing or termination of this Agreement, the Company will not directly or indirectly, and will not authorize, encourage, permit or instruct any of its Representatives or Affiliates to, directly or indirectly (a) solicit, initiate
or encourage or assist in the making, submission or announcement of, or take any action 

  
 46 

 
that could reasonably be expected to lead to, any proposal by a third party (other than the Buyer) to acquire any of the Company or its Subsidiaries (i) through any form of recapitalization
transaction or any sale, merger, consolidation, business combination, spin-off or liquidation, (ii) through a purchase of the assets of the Company, (iii) through a purchase of the Company Stock, or (iv) through any other transaction
designed to acquire the business of the Company or any part thereof (each, an “Acquisition Proposal”), (b) engage, continue or participate in any discussions or negotiations, or provide any information to any Person (other than
the Stockholders’ Representative and the Buyer), regarding any Acquisition Proposal; or (c) agree to, approve, execute, enter into or become bound by any letter of intent or other contract or understanding between or among the Company or
any of its Subsidiaries and any Person that is related to or provides for any Acquisition Proposal. The Company shall, and shall direct its Affiliates and Representatives to, immediately cease any solicitations, discussions or negotiations with any
Person (other than the parties hereto) that has made or indicated an intention to make an Acquisition Proposal and request that each such Person destroy any information regarding the Company provided in connection therewith. The Company shall
promptly notify the Buyer of any Acquisition Proposal (but in any event within 48 hours of receipt thereof) received after the date hereof and prior to the Closing or termination of this Agreement, which notice shall include the identity of the
prospective buyer or soliciting party, the terms of and any substance regarding such inquiry, offer or proposal. 
 Section 6.9
Intentionally Left Blank. 
 Section 6.10 Endo Pharmaceuticals Inc. Endo Guarantor shall guarantee the performance of all of
Buyer’s and Merger Sub’s obligations pursuant to this Agreement, including, without limitation, the payment of the Merger Consideration pursuant to Section 2.8 and Section 2.13. 

Section 6.11 Transfer of Domain Name Registrations As promptly as practicable and in no event later than two (2) days prior
to Closing, Company shall cause to be assigned to Company and registered in the name of the Company each domain name registration set forth on Schedule 4.12(a), and Company shall provide evidence of such assignment and registration promptly to Buyer
upon such assignment and registration. 
 Section 6.12 Update of Schedule D. As promptly as practicable and in no event later
than twenty (20) Business Days following the date hereof, the Company shall update Schedule D hereto by including good faith estimates of the amount of each item in a form reasonably satisfactory to Buyer, and an explanation reasonably
acceptable to Buyer of the kind of indebtedness that would be included within the fourth item set forth thereon. 

  
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 ARTICLE VII 

EMPLOYMENT MATTERS 

Section 7.1 Employee Benefits; 280G Shareholder Approval. 

(a) For a period of one year following the Closing Date (the “Continuation Period”), Buyer shall, or shall cause its
Affiliates or the Surviving Corporation to, provide employees of the Company or any of its Subsidiaries who are employed immediately prior to the Closing Date and who continue to be so employed (“Continuing Employees”), compensation
and employee benefits that, with respect to each Continuing Employee, are substantially similar in value in the aggregate to the compensation and benefits provided to such Continuing Employee immediately prior to the Closing Date. If the Continuing
Employees participate in any Benefit Plans or employee benefit plans, agreements, programs, policies and arrangements of Buyer or any of its Affiliates (the “Buyer Plans”), Buyer shall, or shall cause its Affiliates or the Surviving
Corporation to use best efforts to, (i) provide coverage for Continuing Employees and their eligible dependents under its or their medical, dental and health plans without interruption of coverage; (ii) cause to be waived any pre-existing
condition, actively at work requirements and waiting periods (to the extent waived under a comparable Benefit Plan); and (iii) cause the Buyer Plans to honor any deductible, co-insurance and maximum out-of-pocket expenses incurred by the
Continuing Employees and their eligible dependents under similar plans of the Company or any of its Subsidiaries during the calendar year in which such Continuing Employee or eligible dependent first becomes eligible for coverage under such Buyer
Plan for purposes of satisfying applicable deductible, co-insurance and maximum out-of-pocket expenses. No provision of this Agreement shall create any obligation on Buyer, its Affiliates or the Surviving Corporation to maintain the employment of
any Continuing Employee after the Closing Date. Nothing herein shall prevent Buyer, its Affiliates or the Surviving Corporation from terminating the employment of any Continuing Employee during the Continuation Period in compliance with applicable
Law and Section 7.1(b). No provision of this Agreement shall create any third party beneficiary rights in any Continuing Employee, or any beneficiary or dependents thereof, with respect to the compensation, terms and conditions of
employment and benefits that may be provided to any Continuing Employee by Buyer, its Affiliates or the Surviving Corporation or its subsidiaries or under any benefit plan which Buyer, its Affiliates or the Surviving Corporation may maintain. 

(b) Notwithstanding anything to the contrary in this Agreement, during the Continuation Period, Buyer shall cause the Surviving Corporation to
continue to provide severance pay for the benefit of each Continuing Employee that is no less favorable than the severance pay provided by the Company or any of its Subsidiaries in respect of each such Continuing Employee as of the date hereof, as
set forth in Schedule 7.1(b). 
 (c) Prior to the Effective Time, the Company shall, and shall cause its Subsidiaries to, use best
efforts to obtain a written waiver from each “disqualified individual” (within the meaning of Section 280G(c) of the Code) with respect to the Company (a “Disqualified Individual”) of his or her right to that portion
of any and all payments or other benefits that such Disqualified Individual may become entitled to receive in connection with the transactions contemplated by this Agreement that could be deemed “parachute payments” under
Section 280G(b) of the Code (determined without regard to Section 280G(b)(5) of the Code) if such payments are not approved by the applicable entity’s stockholders in a manner that satisfies the requirements of
Section 280G(b)(5)(B) and any regulations thereunder (the “280G Waived Amounts”). Prior to 

  
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the Closing Date, the Company shall solicit shareholder approval of the 280G Waived Amounts, if any, in a manner that satisfies the requirements for the exemption under
Section 280G(b)(5)(A)(ii) of the Code and any regulations issued thereunder, including the provision of adequate disclosure to all applicable stockholders of all material facts concerning all payments that, in the absence of such stockholder
approval, could be classified as “parachute payments” to a Disqualified Individual under Section 280G of the Code. The Company shall provide such adequate disclosure to the applicable stockholders in a manner that satisfies
Section 280G(b)(5)(B)(ii) of the Code and any regulations issued thereunder. In connection with the foregoing, Buyer shall provide the Company, no later than four (4) Business Days prior to the Closing Date, with all information and
documents necessary to allow the Company to determine whether any payments made or to be made or benefits granted or to be granted pursuant to any agreement or arrangement entered into or negotiated by the Buyer or any of its Affiliates
(“Buyer Payments”), together with all other payments and benefits that any Disqualified Individual may be entitled to receive or retain that are treated as being “contingent” (within the meaning of Code Section 280G)
on the transactions contemplated by this Agreement, could reasonably be considered to be “parachute payments” within the meaning of Section 280G(b)(2) of the Code. Notwithstanding anything to the contrary in this
Section 7.1(c) or otherwise in this Agreement, to the extent that Buyer has provided misinformation, or Buyer’s omission of information has resulted in misinformation, with respect to any Buyer Payments, (x) there shall be no
breach of the representation contained in Section 4.13(f) or the covenant contained herein, but only to the extent caused by such omission or misinformation and (y) for all purposes of this Agreement, no payment by, or benefit
provided to, any Disqualified Individual with respect to whom such misinformation or omission was provided shall be an “excess parachute payment” under Section 280G(b) of the Code, but only to the extent that the classification of
such person as a Disqualified Individual was caused by such omission or misinformation. 
 Section 7.2 Credit for Service and
Benefit Accrual. For purposes of eligibility, vesting and benefit accruals (other than benefit accruals under a defined benefit pension plan) under each Buyer Plan in which Continuing Employees are eligible to participate following the Closing,
Buyer shall, and shall cause its Affiliates or the Surviving Corporation to, give each Continuing Employee credit under each such Buyer Plan for all service with the Company or any of its Subsidiaries prior to the Closing to the same extent as such
service was recognized for such purpose by the Company or any of its Subsidiaries and/or their Affiliates prior to the Closing; provided, however, that such service shall not be credited to the extent that it would result in a
duplication of benefits. 
 Section 7.3 WARN. Following the Closing, Buyer shall not implement, or permit the Surviving
Corporation or any of its Subsidiaries to implement, any plant closings, mass layoffs, employee layoffs, or similar events that individually or in the aggregate would give rise to any obligations or liabilities on the part of the Stockholders’
Representative, any Stockholders or any of their respective Affiliates under the WARN Act or any similar Law, and Buyer shall cause the Surviving Corporation and its Subsidiaries to provide any required notice under the WARN Act or any similar Law,
and to otherwise comply with any such Law with respect to any “plant closing” or “mass layoff” (as defined in the WARN Act or similar Law) or employee layoff or similar event affecting the employees of the Surviving Corporation
or any of its Subsidiaries. 

  
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 Section 7.4 No Amendment. Notwithstanding any other provision of this Agreement,
nothing contained in this Article VII shall (i) be deemed to be the adoption of, or an amendment to, any employee benefit plan, as that term is defined in Section 3(3) of ERISA, or otherwise limit the right of the Company, Buyer or
their respective Affiliates (including the Subsidiaries of the Company and the Surviving Corporation), to amend, modify or terminate any such employee benefit plan or (ii) give any third party any right to enforce the provisions of this
Article VII. 
 ARTICLE VIII 

TAX MATTERS 

Section 8.1 Tax Returns. 

(a) If the Company or any of its Subsidiaries is required to file a Tax Return for a Straddle Period, the parties agree that the amount of
income Taxes for such Straddle Period that are attributable to the portion of the Straddle Period ending on the Closing Date shall be determined based on an interim closing of the books of the Company and each of its Subsidiaries as of the close of
business on the Closing Date (and for such purpose, the taxable period of any partnership or other-pass through entity in which the Company or any of its Subsidiaries holds a beneficial interest shall be deemed to terminate at such time). For
purposes of this Section 8.1(a), (i) any item determined on an annual or periodic basis (including amortization and depreciation deductions and the effects of graduated rates) shall be allocated to the portion of the Straddle Period
ending on the Closing Date based on the relative number of days in such portion of the Straddle Period as compared to the number of days in the entire Straddle Period and (ii) the amount of property Taxes, annual franchise Taxes based on
authorized shares or other periodic Taxes allocated to the portion of the Straddle Period ending on the Closing Date shall be equal to the amount of such Taxes for the entire Straddle Period multiplied by a fraction, the numerator of which is the
number of days during the Straddle Period that are in the Pre-Closing Tax Period and the denominator of which is the number of days in the entire Straddle Period. 

(b) The Stockholders’ Representative shall prepare or cause to be prepared and timely file or cause to be timely filed all Tax Returns of
the Company and its Subsidiaries for all taxable periods that end on or before the Closing Date. The Stockholders’ Representative shall provide a copy of each such Tax Return that will be filed after the Closing Date to the Buyer for its review
and comment not later than thirty (30) days prior to the deadline for filing each such Tax Return (taking into account all applicable extensions) and the Stockholders’ Representative shall consider in good faith any reasonable comments
made by the Buyer on such Tax Return. Notwithstanding anything in this Section 8.1 to the contrary, the parties hereto agree that any Company Tax Benefits shall be reflected on the applicable Tax Returns for the Tax periods that end on
the Closing Date or, where applicable, the portion of a Straddle Period ending on (and 

  
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including) the Closing Date, to the extent permitted by applicable Law. Buyer shall cause the Surviving Corporation and each of its Subsidiaries to apply any net operating loss of the Surviving
Corporation or any of its Subsidiaries for the taxable year ending on the Closing Date as a carryback to the preceding tax years to the maximum extent permitted by applicable Law. 

(c) The Buyer and the Company shall prepare or cause to be prepared and timely file or cause to be timely filed all Tax Returns of the Company
and its Subsidiaries for all taxable periods beginning after the Closing Date and for each Straddle Period (each a “Post-Closing Tax Return”). To the extent that a Post-Closing Tax Return includes any Pre-Closing Tax Period, such
Post-Closing Tax Return shall be prepared on a basis consistent with existing procedures, practices, and accounting methods, unless such procedure, practice, accounting method, or other contemplated treatment is contrary to applicable Law. The Buyer
shall provide a copy of each Post-Closing Tax Return that includes a Pre-Closing Tax Period (together with notice of any departure from past practice reflected on such return) to the Stockholders’ Representative for its review and comment not
later than thirty (30) days prior to the deadline for filing each such Post-Closing Tax Return (taking into account all applicable extensions) and the Buyer shall consider in good faith all reasonable comments made by the Stockholders’
Representative on such Post-Closing Tax Return. Except to the extent such Post-Closing Tax Return has been prepared on a basis inconsistent with past practice, Stockholders’ Representative shall (or shall cause the Stockholders to) pay to the
Buyer in immediately available funds no later than five (5) days prior to the due date for the filing of such Post-Closing Tax Return that portion of the Taxes shown as due on such Post-Closing Tax Return that is allocable to the Pre-Closing
Tax Period pursuant to Section 8.1. 
 (d) Except in connection with any Tax Matter resolved pursuant to Section 8.4
(including consistent correlative adjustments to Tax Returns for non-audited taxable periods), (i) the Buyer shall not voluntarily, without the prior written consent of the Stockholders’ Representative (which consent shall not be
unreasonably conditioned, withheld, or delayed), (a) amend, or request or permit the amendment of any Tax Return of the Company or any of its Subsidiaries filed or required to be filed before the Closing Date or (b) apply to any Taxing
Authority for any binding or non-binding opinion, ruling, or other determination with respect to the Company and its Subsidiaries in relation to any act, matter, or transaction that occurred on or before the Closing date, and (ii) except in
response to any request or inquiry from a Taxing Authority, the Buyer shall take commercially reasonable efforts not to voluntarily furnish to any Taxing Authority any information (in writing or otherwise) regarding any such Tax Returns or, with
respect to the Company and its Subsidiaries, any act, matter, or transaction that occurred on or before the Closing Date, in the case of each of (i) and(ii), if such action would give rise to an indemnification obligation under
Section 8.3. 
 Section 8.2 Transfer Taxes. All Transfer Taxes (including any costs and expenses relating thereto)
shall be borne fifty percent (50%) by the Buyer and fifty percent (50%) by the Stockholders, regardless of whether such Transfer Taxes become due or payable on or after the Closing Date. The Buyer shall prepare (or cause to be prepared)
and timely file (or cause to be timely filed) all Tax Returns required to be filed 

  
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in respect of such Transfer Taxes and shall transmit to the appropriate Taxing Authority the Transfer Taxes shown as due on such Tax Returns, provided that the Buyer shall provide a copy of each
Tax Return required to be filed in respect of a Transfer Tax to the Stockholders’ Representative for its review and comment not later than thirty (30) days prior to filing such Tax Return (taking into account all applicable extensions),
and the Buyer shall consider in good faith all reasonable comments made by the Stockholders’ Representative on such Tax Return. The Stockholders’ Representative shall (or shall cause the Stockholders to) pay to the Buyer the
Stockholders’ fifty percent (50%) share of such Transfer Taxes in immediately available funds no later than five (5) days prior to the date such Transfer Taxes are due. The Buyer and the Stockholders’ Representative shall
cooperate and take any action reasonably requested by the other in order to lawfully minimize such Transfer Taxes. The Buyer shall provide to the Stockholders’ Representative a true and complete copy of each such Tax Return as filed and
evidence of the timely filing thereof. 
 Section 8.3 Tax Indemnification. The Stockholders covenant and agree, severally but
not jointly, to pay, and to indemnify, defend, and hold harmless the Buyer, the Surviving Corporation, and any of their Affiliates from and against all Losses relating to, or arising out of (i) any breach or inaccuracy of any representation or
warranty relating to Taxes made by the Company in this Agreement as of the Closing Date (except in the case of any such representation or warranty that is made as of a specific date, the breach or inaccuracy of such representation or warranty to be
true and correct as of such date), (ii) all Taxes of the Company and its Subsidiaries (or the non-payment thereof) for taxable periods (or portions thereof) ending on or before the Closing Date (taking into account the allocation provisions of
Section 8.1(a) in the case of Straddle Periods), except to the extent such Taxes were treated as current liabilities of the Company or any of its Subsidiaries for purposes of calculating Final Net Working Capital, (iii) all Taxes
required to be paid by the Company or any of its Subsidiaries after the Closing Date by reason of the Company or any of its Subsidiaries (or any predecessor of the Company or any of its Subsidiaries) having been a member of an Affiliated Group on or
prior to the Closing Date, including pursuant to Treasury Regulations Section 1.1502-6 or any analogous or similar state, local, or foreign law rule or regulation, (iv) all Taxes of any Person (other than the Company or any of its
Subsidiaries) required to be paid by the Company or any of its Subsidiaries as a transferee or successor, where the liability of the Company or the applicable Subsidiary for such Taxes is attributable to an event or transaction occurring before the
Closing Date, and (v) all Transfer Taxes for which the Stockholders are responsible under Section 8.2. To the extent that any Buyer Indemnified Party shall be entitled to indemnification hereunder for any Losses pursuant to this
Section 8.3, then each Stockholder party hereto shall indemnify such Buyer Indemnified Party for the amount of such Loss multiplied by a fraction, the numerator of which is the cash Merger Consideration actually paid to such Stockholder
hereunder, and the denominator of which is the aggregate cash Merger Consideration actually paid to all Fully Diluted Common Holders (it being acknowledged and agreed that such indemnification obligation is several and not joint as among the
Stockholders). Notwithstanding anything to the contrary herein, in no event shall any such Person have any indemnification or other obligations pursuant to, under or in respect of this Agreement or any Ancillary Agreement in excess of the amount of
cash Merger 

  
 52 

 
Consideration actually paid to such Person hereunder, and the total amount that any Buyer Indemnified Party shall be entitled to indemnification hereunder for any Losses pursuant to this
Section 8.3 shall not, in any event, exceed the aggregate Merger Consideration. The indemnification obligations pursuant to this Section 8.3 shall survive the Closing and shall continue in full force and effect until the expiration
of the applicable statute of limitations. 
 Section 8.4 Contest Provisions. Each of the Buyer and the Stockholders’
Representative shall promptly notify (a “Tax Claim Notice”) the other upon receipt of notice of any pending or threatened audits, assessments, adjustments, or other proceedings with respect to Taxes for which such other party (or
such other party’s Affiliates) may be liable hereunder (each a “Tax Matter”), provided that a party’s failure to comply with this notice provision shall not affect such party’s right to indemnification
hereunder unless (and only to the extent that) the other party is materially adversely prejudiced as a consequence of such failure. Such Tax Claim Notice shall include (i) a description in reasonable detail (to the extent known by such Buyer
Indemnified Party (as defined below)) of the facts constituting the basis for such claim and the amount of the Losses claimed, if known and quantifiable, (ii) a statement that such Buyer Indemnified Party is entitled to indemnification under
Section 8.3 and a reasonable explanation of the basis therefor and (iii) a demand for payment in the amount of Losses set forth in the Tax Claim Notice. The Buyer shall have the right to control, conduct, contest, and defend all Tax
Matters relating to Taxes or Tax Returns of the Company or any of its Subsidiaries, provided that, the Stockholders’ Representative shall be entitled (at its sole cost and expense) (A) to participate in the defense of and, at its option,
after providing written notice to the Buyer, take control of the complete defense of, any Tax Matter, but only to the extent that such Tax Matter pertains solely to taxable periods ending on or before the Closing Date, and (B) to employ counsel
of its choice for purposes of the foregoing. The Buyer shall, at the cost of the Stockholders’ Representative (provided that the Stockholders’ Representative will only be liable for reasonable out-of-pocket expenses and such expenses shall
be paid first from the Reserve Amount), procure all assistance that the Stockholders’ Representative may reasonably require in relation to any action taken with respect to any Tax Matter with respect to which the Stockholders’
Representative has assumed control in accordance with the immediately preceding sentence. The Buyer shall procure such evidence that the Stockholders’ Representative is authorized to take such action on behalf and in the name of the Surviving
Corporation and its Subsidiaries as the Stockholders’ Representative may reasonably request with respect to such Tax Matter, including responding (in writing or otherwise) to any audit inquiry from any Taxing Authority, attending and conducting
interviews, meetings, discussions and negotiations with any Taxing Authority, negotiating and concluding compromises, agreements and settlements with any Taxing Authority, lodging requests for ruling, opinions or determinations with any Taxing
Authority or lodging or instituting objections, applications, appeals and other Litigations with any Taxing Authority, tribunal or court. A party in control of a Tax Matter for which the other party (or such other party’s Affiliates) may be
liable hereunder shall (i) keep the other party fully informed regarding the status and progress of such Tax Matter and (ii) provide to the other party drafts of any correspondence to or from any Taxing Authority and consider in good faith
any comments of the other party (or its advisors) with regard to such 

  
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correspondence. Neither party may agree to settle any claim for Taxes for which the other may be liable without the prior consent of such other party, which consent shall not be unreasonably
withheld, conditioned, or delayed. 
 Section 8.5 Buyer’s Receiving or Using of Refunds and Overpayments. If, following the
Closing, the Surviving Corporation or any of its Subsidiaries, the Buyer or any of their respective Affiliates (i) receives or enjoys any refund, credit, rebate, or reduction in Taxes or (ii) utilizes the benefit of any overpayment or
prepayment of Taxes, which, in either of the foregoing clauses (i) or (ii), arises out of a Tax paid by the Company or any of its Affiliates in respect of a taxable period (or portion thereof) ending before the Closing Date, the Buyer shall,
within five (5) days of the written demand of the Stockholders’ Representative therefor, pay or transfer, or cause to be paid or transferred, to the Stockholders’ Representative on behalf of the Fully Diluted Common Holders the amount
of the refund, credit, rebate, reduction, payment, or overpayment (including interest thereon) received, enjoyed, or utilized by the Buyer or its Affiliates, except to the extent that such amounts were treated as current assets of the Company or any
of its Subsidiaries for purposes of computing Final Net Working Capital or were previously paid to the Buyer by the Stockholders pursuant to Section 8.3 and net of any Taxes and reasonable out-of-pocket expenses incurred by the Buyer,
the Surviving Corporation, or any of their Affiliates in connection with the receipt or accrual of such refund, credit, rebate, reduction, payment, or overpayment; provided that any such payment that is a Compensatory Payment shall be paid by
the Company (or a Subsidiary of the Company) through its payroll system and in accordance with the Company’s (or such Subsidiary’s) standard withholding and payroll practices and procedures to the Person to the Person identified in writing
by the Stockholders’ Representative as the Person to whom such Compensatory Payment is to be made. The Buyer agrees to notify the Stockholders’ Representative promptly of the receipt of any amount described in this Section 8.5.
In the event that any item described in this Section 8.5 and paid to the Stockholders’ Representative is subsequently reduced as a result of any adjustment required by any Governmental Authority, Stockholders’ Representative
shall pay or transfer, or cause to be paid or transferred, to the Buyer the amount of such reduction within five (5) days of Buyer’s written demand therefor. 

Section 8.6 Assistance and Cooperation. Following the Closing Date, each of Buyer and the Stockholders’ Representative shall
cooperate fully in preparing any Tax Returns with respect to the Company and its Subsidiaries and in preparing for any audits of, inquiries by, or disputes with any Taxing Authorities regarding, any applicable Tax Returns with respect to the Company
and its Subsidiaries and payments in respect thereof, including (a) providing timely notice to the other of any pending or proposed audits or assessments with respect to Taxes for which such other party or any of its Affiliates may have a
liability under this Agreement or the Ancillary Agreements, (b) furnishing the other with copies of all relevant correspondence received from any Taxing Authority (whether before, on, or after the Closing Date) in connection with any audit or
information request with respect to any Taxes referred to in clause (a) of this Section and (c) making available to the other party during normal business hours, all Books and Records, Tax Returns or portions thereof (together with related
paperwork and documents relating to rulings or other determinations by Taxing Authorities), proof of 

  
 54 

 
payment of Taxes, documents, files, officers or employees (without substantial interruption of employment) or other relevant information necessary or useful for such purposes, in each case,
whether or not in existence as of the Closing Date. 
 Section 8.7 Closing Date Course of Business; Closing of the Tax Year. For
the portion of the Closing Date after the time of Closing, other than transactions expressly contemplated hereby, the Buyer shall cause the Surviving Corporation and its Subsidiaries to carry on their business only in the ordinary course in the same
manner as previously conducted. Except as expressly contemplated in this Agreement, the Buyer shall not, and shall not permit the Surviving Corporation or any of its Subsidiaries to, take any action during the portion of the Closing Date after the
time of Closing that could increase the Stockholders’ liability for Taxes (including any liability of the Stockholders (or the requirement that any funds in the General Escrow Account be used to) to indemnify the Buyer Indemnified Parties for
Taxes pursuant to this Agreement). Buyer shall include, and shall cause the Company and each of its Subsidiaries that is organized under the Laws of the United States, any state thereof or the District of Columbia to be included, immediately after
the Closing Date, as a member of the Affiliated Group (for U.S. federal income tax purposes) of which Buyer is a member (or if Buyer is a disregarded entity for U.S. federal income tax purposes, of which Buyer’s corporate owner is a member),
and the Company and each such Subsidiary shall be included in the consolidated U.S. federal income Tax Return filed by such Affiliated Group for the first taxable period beginning after the Closing Date. 

Section 8.8 Maintenance of Buyer’s Books and Records. Until the applicable statute of limitations (including periods of
waiver) has run for any Tax Returns filed or required to be filed with respect to the Company and its Subsidiaries covering the periods up to and including the Closing Date, Buyer shall, and shall cause its Affiliates to, retain or cause to be
retained all Books and Records in existence on the Closing Date and, following the Closing Date, shall provide the Stockholders’ Representative access to such Books and Records and the equivalent Books and Records prepared following the Closing
Date for inspection and copying by the Stockholders’ Representative and its Affiliates, or their agents upon reasonable request and upon reasonable notice. After the expiration of such period, no Books and Records shall be destroyed by Buyer
without first advising the Stockholders’ Representative in writing and giving the Stockholders’ Representative a reasonable opportunity to obtain possession thereof, with any costs of transferring the Books and Records to be paid by the
Stockholders’ Representative. 
 Section 8.9 Adjustment to Merger Consideration. Any payment by Buyer or the
Stockholders’ Representative, as the case may be, pursuant to Section 2.11, Section 8.3 or Section 8.5 shall be treated, to the fullest extent possible under applicable Law, as an adjustment to the Merger
Consideration for tax purposes. 
 Section 8.10 Article VIII Governs. Notwithstanding anything to the contrary in this
Agreement, the provisions of this Article VIII (and not those of Article X), shall govern the manner in which Tax Matters are conducted and resolved. 

  
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 ARTICLE IX 

CONDITIONS TO CLOSING 

Section 9.1 Conditions to Mutual Obligations. The respective obligations of Buyer, Merger Sub and the Company to consummate the
Merger and the Closing are subject to the satisfaction or waiver, at or prior to the Closing Date, of each of the following conditions: 

(a) HSR Act. All applicable waiting periods (including any extensions thereof) under the HSR Act shall have expired or been terminated.

 (b) No Injunction. No Governmental Entity of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered
any statute, rule, regulation, judgment, decree, injunction or other Order (whether temporary, preliminary or permanent) that prohibits or makes illegal the consummation of the transactions contemplated by Article II and such statute, rule,
regulation, judgment, decree, injunction or other Order is in effect. 
 (c) Required Stockholder Approval. Stockholder Consents
relating to the approval and adoption of this Agreement and the Merger shall have been duly executed and delivered by those Company Stockholders whose consent is required to approve this Agreement and the Merger in accordance with the Company
Charter and the DGCL. 
 (d) Escrow Agreement. The Escrow Agreement shall have been duly executed and delivered by each of the
parties thereto in a form to be mutually agreed upon by the parties thereto, but shall include the provisions set forth in Schedule 9.1(d). 

Section 9.2 Conditions to Obligations of Buyer and Merger Sub. The obligations of Buyer and Merger Sub to consummate the Merger
and the Closing are also subject to the satisfaction or waiver, at or prior to the Closing Date, of each of the following conditions: 
 (a)
Representations and Warranties. (A) The Fundamental Representations of the Company and the Stockholders party hereto (other than those addressed in clause (B)) shall be true and correct (determined for this purpose without giving effect
to any qualifications as to materiality, “Material Adverse Effect” or similar qualifications) as of the date hereof and as of the Closing Date except where the failure of such representations and warranties to be true and correct
would not, individually or in the aggregate, be material to the Company and its Subsidiaries, taken as a whole, (B) the representations and warranties made pursuant to Section 4.8(b) and Section 4.8(c) shall be true and
correct except for de minimis errors not changing the number of outstanding shares by more than 6,000 shares (determined for this purpose without giving effect to any qualifications as to materiality, “Material Adverse
Effect” or similar qualifications) as of the date hereof and as of the Closing Date, (C) the representation contained in Section 4.21(a) shall be true and correct in all respects as of the date hereof and as of the

  
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Closing Date and (D) except for the Fundamental Representations of the Company and the Stockholders party hereto and the representation contained in Section 4.21(a), the
representations and warranties of the Company and the Stockholders party hereto contained in this Agreement shall be true and correct (determined for this purpose without giving effect to any qualifications as to materiality, “Material
Adverse Effect” or similar qualifications) as of the date hereof and as of the Closing Date, except where the failure of such representations and warranties to be so true and correct would not, in the aggregate, have a Material Adverse
Effect. 
 (b) Performance of Obligations of the Company. The Company and Stockholders’ Representative shall have performed or
caused to be performed in all material respects all covenants and agreements that are required to be performed by them at or prior to the Closing Date. 

(c) No Material Adverse Effect. Since the date hereof, there shall not have occurred a Material Adverse Effect. 

(d) Officer’s Certificate. Buyer shall have received from the Company a certificate of an authorized senior officer of the Company
certifying that the conditions set forth in Section 9.2(a) and Section 9.2(b) have been satisfied. 
 (e)
Non-Compete Agreements. Each of the Non-Compete Agreements, attached hereto as Exhibits C and D and listed on Schedule 9.2(e), shall have been duly executed and delivered by each of the parties thereto. 

(f) Letter Agreements. The Letter Agreements listed on Schedule 9.2(f) shall have been duly executed and delivered by each of
the parties thereto. 
 (g) Payoff Letters. Buyer shall have received from the Company all payoff letters listed on Schedule
9.2(g), which each such payoff letter shall (i) indicate the total amount required to be paid to fully satisfy all principal, interest, prepayment premiums, penalties, breakage costs or similar obligations (excluding contingent or
indemnification obligations not then owing) as of the anticipated Closing Date (and daily accrual thereafter) (the “Payoff Amount”), (ii) state that all security interests and all guarantees thereunder (other than in respect of
such cash collateral and deposit accounts related thereto) relating to the assets of the Company or any of its Subsidiaries shall be, upon the payment of the Payoff Amount on the Closing Date, released and terminated and (iii) include a
fully-executed separate release of such security interests for all trademark registrations for which any such security interest was recorded in the United States Patent and Trademark Office, such fully-executed separate release being suitable for
recording in the United States Patent and Trademark Office to evidence such release and being reasonably acceptable to Buyer (each payoff letter described in this sentence being referred to as the “Payoff Letter”). 

(h) Deliverables. Buyer shall have received from the Company (A) a statement certifying that interests in the Company are not
“United States real property interests” (within the meaning of Section 897 of the Code), which statement shall be 

  
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dated as of the Closing Date and shall be prepared in accordance with the provisions of Treasury Regulations section 1.1445-2(c) and 1.897-2(h), and (B) a notice to the IRS in accordance
with the provisions of Treasury Regulations section 1.897-2(h)(2), with the understanding that Buyer shall be authorized to file with the IRS on behalf of the Company any statement or notice provided to Buyer by the Company pursuant to this
Section 9.2(h); provided, however, that if Buyer elects to waive the receipt of such statement or notice, then, notwithstanding anything to the contrary contained herein, Buyer shall proceed with the Closing and shall be
entitled to withhold from payments made under this Agreement any amounts required to be withheld from such payments under Section 1445 of the Code. 

Section 9.3 Conditions to Obligations of the Company. The obligations of the Company to consummate the Closing are also subject to
the satisfaction or waiver, at or prior to the Closing Date, of each of the following conditions: 
 (a) Representations and
Warranties. The Fundamental Representations of Buyer and Merger Sub shall be true and correct (determined for this purpose without giving effect to any qualifications as to materiality, “Material Adverse Effect” or similar
qualifications) as of the date hereof and as of the Closing Date and (B) except for the Fundamental Representations of Buyer and Merger Sub, the representations and warranties of Buyer and Merger Sub contained in this Agreement shall be true
and correct (determined for this purpose without giving effect to any qualifications as to materiality, “Material Adverse Effect” or similar qualifications) as of the date hereof and as of the Closing Date, except where the failure
of such representations and warranties to be so true and correct would not, in the aggregate, materially adversely affect the ability of Buyer or Merger Sub to execute, deliver or perform this Agreement or any Ancillary Agreement, or to timely
consummate the transactions contemplated hereby or thereby, and (ii) the covenants and agreements contained in this Agreement to be complied with by Buyer and Merger Sub on or before the Closing Date shall have been complied with in all
material respects. 
 (b) Performance of Obligations of Buyer and Merger Sub. Each of Buyer and Merger Sub shall have performed in all
material respects all obligations that are required to be performed by it under this Agreement at or prior to the Closing Date. 
 (c)
Officer’s Certificate. The Stockholders’ Representative shall have received from Buyer a certificate of an authorized senior officer of Buyer certifying that the conditions set forth in Section 9.3(a) and
Section 9.3(b) have been satisfied. 

  
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 ARTICLE X 

SURVIVAL; BUYER ACKNOWLEDGMENT 

Section 10.1 Survival. 

(a) The representations and warranties contained in Article III and Article IV of this Agreement shall survive the Closing and
will continue in full force and effect for a period from the date hereof until the General Survival Date; provided that the representations and warranties (a) solely in Section 3.1, Section 3.3,
Section 3.4, Section 3.6, Section 4.1(a), Section 4.2, Section 4.3, Section 4.4, Section 4.7, Section 4.8(b), Section 4.8(c), and
Section 4.19 (collectively, the “Fundamental Representations”) shall survive the Closing and will continue in full force and effect for a period from the date hereof until the Fundamental Survival Date and
(b) solely regarding tax matters contained in Sections 4.9, 4.13(f), and Section 4.17 shall survive the Closing and will continue in full force and effect until the expiration of the applicable statute of limitations (the
“Tax Survival Date”) (the General Survival Date, the Fundamental Survival Date, the Tax Survival Date and the date referenced in the last sentence of this Section 10.1, as applicable, each a “Survival
Date”). The covenants and agreements herein or hereunder that are required to be performed by any Person prior to the Closing shall survive the Closing and will continue in full force and effect, solely for the purpose of
Section 10.3(b), until the General Survival Date. The covenants and agreements herein or hereunder that are required to be performed by any Person after the Closing shall survive the Closing in accordance with their respective terms. The
indemnification obligations arising under (i) Section 10.3(c), Section 10.3(e) and Section 10.8 shall survive the Closing until the General Survival Date and (ii) Section 10.3(d) shall
survive the Closing until the expiration of the applicable statute of limitations. 
 (b) The representations and warranties contained in
Article V of this Agreement shall survive the Closing and will continue in full force and effect for a period from the date hereof until the General Survival Date; provided that the representations and warranties solely in
Section 5.1, Section 5.3, Section 5.4, and Section 5.7 (collectively, the “Fundamental Representations of Buyer”) shall survive the Closing and will continue in full force and effect
for a period from the date hereof until the Fundamental Survival Date. 
 Section 10.2 Buyer Acknowledgment. 

(a) Each of Buyer and Merger Sub acknowledges and agrees, on behalf of itself and each of their Affiliates, that (i) none of Buyer, Merger
Sub or any of their respective Affiliates are affiliated with, related to, or have a fiduciary relationship with, the Stockholders, the Stockholders’ Representative, the Company or any of their respective Affiliates; and (ii) no third
party is entitled to rely on or is otherwise intended to be a beneficiary of any representation made by or on behalf of the Company in or pursuant to this Agreement, or any of the statements or information contained herein or in any Appendix,
Exhibit or Schedule hereto or otherwise furnished or made available to Buyer, Merger Sub or any of their respective Representatives, investment bankers or other Persons. 

(b) Each of Buyer and Merger Sub acknowledges and agrees, on behalf of itself and their respective Affiliates, that it (i) has made its
own inquiry and investigation into, and, based thereon, has formed an independent judgment concerning the Company and its Subsidiaries and (ii) has been furnished with or given adequate access to such information about the Company and its
Subsidiaries as it has requested. 

  
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 (c) In connection with Buyer’s and Merger Sub’s investigation of the Company and its
Subsidiaries, Buyer and Merger Sub and their respective Representatives have received from the Stockholders’ Representative, a Stockholder, or the Company (individually or through any of their Representatives or the Company’s Subsidiaries)
certain projections, estimates and other forecasts and certain business plan information (collectively, “Projections”). Each of Buyer and Merger Sub acknowledges that there are uncertainties inherent in attempting to make such
Projections, that it is familiar with such uncertainties, that it is making its own evaluation of the adequacy and accuracy of all Projections so furnished or made available to it and any use of, or reliance by, it on such Projections shall be at
its sole risk, and without limiting any other provisions in this Agreement or the Ancillary Agreements, that it shall have no claim against any Person with respect thereto except as otherwise provided herein. Each of Buyer and Merger Sub
acknowledges that, except as expressly set forth in Article III and Article IV of this Agreement, none of the Stockholders, the Stockholders’ Representative, the Company or any of their Affiliates, nor any of their respective
Representatives or direct or indirect equityholders or any other Person has made any representation or warranty, expressed or implied, as to the accuracy or completeness of any Projections, any written or oral information regarding the Company or
any of its Subsidiaries furnished or made available to Buyer, Merger Sub or their respective Representatives or otherwise with respect to any of the Company or any of its Subsidiaries or their operations, business, financial condition, assets,
liabilities or prospects, and none of the Stockholders, the Stockholders’ Representative, the Company, its Subsidiaries, any of their respective Representatives or direct or indirect equityholders or any other Person shall have or be subject to
any liability to Buyer, Merger Sub or any other Person resulting from the distribution to Buyer, Merger Sub or their respective Representatives or Affiliates, or Buyer’s or Merger Sub’s or any of their respective Representative’s or
Affiliate’s use of, any such Projections, written or oral information, or any information, documents or material made available to Buyer, Merger Sub or their respective Representatives and Affiliates in any form. 

Section 10.3 Indemnification of Buyer Indemnified Parties. Subject to the terms of this Article X, from and after the
Closing, Buyer and its Affiliates (including, from and after the Closing, the Company and its Subsidiaries) and their respective officers, directors, stockholders, members, employees, successors and permitted assigns (collectively, the
“Buyer Indemnified Parties”) shall be indemnified and held harmless by the Stockholders party hereto solely using the funds in the General Escrow Account except that, solely with respect to any Losses resulting from fraud, a
breach of any Fundamental Representation, and with respect to Section 10.3(d), or Section 10.3(e), to the extent not satisfied by funds in the General Escrow Account, the Buyer Indemnified Parties shall also be indemnified by
the Stockholders, severally but not jointly, to the extent provided in Section 10.5(a)(vii) and Section 10.10, as applicable, from and against any and all Losses incurred or suffered by any Buyer Indemnified Party resulting
from, arising out of or related to (a) any breach or inaccuracy of any representation or warranty made by the Stockholders party hereto or the Company in this Agreement (other than any representation or warranty regarding tax matters contained
in Sections 4.9, 4.13(f), and 4.17) as of the Closing Date (except in the case of any representation or warranty that is made as of a specific date, the breach or inaccuracy of such representation or warranty to 

  
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be true and correct as of such date) to the extent that a Buyer Indemnified Party provides written notice of such breach or inaccuracy (which notice shall describe the applicable breach or
inaccuracy in reasonable detail, include copies of all available material written evidence thereof and indicate the estimated amount, if reasonably practicable, of Losses that have been or may be sustained by the applicable Buyer Indemnified Party
in connection therewith) to the Stockholders’ Representative prior to the applicable Survival Date, provided, however, that in the case of any representation or warranty (or the defined terms used in such representations or
warranties) that is limited by qualifications as to materiality, Material Adverse Effect or any similar term, qualification or limitation based on materiality, the existence of any breach or failure to be true and correct for purposes of this
Section 10.3 and the existence and scope of indemnification of any representation or warranty hereunder shall be determined as if such qualification or limitation based on materiality or Material Adverse Effect were not included therein,
(b) any breach of any covenant or agreement of the Stockholders’ Representative contained in this Agreement or any Ancillary Agreement to which it is a party that are required to be performed by it after the Closing, (c) any Losses
(including without limitation payment or payments in settlement or pursuant to any Order), not to exceed ten million dollars ($10,000,000) in the aggregate, resulting from, arising out of or related to the factual circumstances or claims underlying
that certain Civil Investigative Demand dated May 15, 2014 or any proceeding or Order arising out of or resulting therefrom, or any other similar civil investigative demands, subpoenas, or notices, from any jurisdiction, received by the Company
or any of its Subsidiaries whether prior to, at or following the Closing or any proceeding or Order arising out of or resulting therefrom (d) any payment required to be made to holders of Appraisal Shares who properly demand appraisal rights
under Section 262, provided that for such purpose, the amount required to be indemnified shall be reduced by the portion of the Merger Consideration that would have been payable to the holder of such Appraisal Shares had they not exercised
their appraisal rights under Section 262 and (e) the liabilities covered on Schedule F and any Taxes payable by the Buyer or any of its Affiliates (including, following the Closing, the Company and its Subsidiaries) in connection
with the liabilities covered on Schedule F. Notwithstanding anything to the contrary in this Agreement, the Buyer Indemnified Parties’ rights to indemnification shall not be diminished or otherwise affected by any Buyer Indemnified
Party’s knowledge, prior to the Closing, of any breach of a representation or warranty, or the underlying circumstances or causes of such a breach. 

Section 10.4 Indemnification of Stockholder Indemnified Parties. Subject to the terms of this Article X, from and after the
Closing, Buyer and Surviving Corporation shall, jointly and severally, indemnify the Stockholders’ Representative, the Stockholders, their respective Affiliates and their respective officers, directors, stockholders, members, employees,
successors and permitted assigns (collectively, the “Stockholder Indemnified Parties”) and hold them harmless from and against any and all Losses incurred or suffered by a Stockholder Indemnified Party resulting from, arising out of
or related to (a) any breach or inaccuracy of any representation or warranty made by Buyer or Merger Sub in this Agreement as of the Closing Date (except in the case of any representation or warranty that is made as of a specific date, the
breach or inaccuracy of such representation or warranty to be true and correct as of such date) to the extent that a Stockholder Indemnified Party provides written notice of such breach or inaccuracy 

  
 61 

 
(which notice shall describe the applicable breach or inaccuracy in reasonable detail, include copies of all available material written evidence thereof and indicate the estimated amount, if
reasonably practicable, of Losses that have been or may be sustained by the applicable Stockholder Indemnified Party in connection therewith) to Buyer prior to the applicable Survival Date, provided, however, that in the case of any
representation or warranty (or the defined terms used in such representations or warranties) that is limited by qualifications as to materiality, Material Adverse Effect or any similar term, qualification or limitation based on materiality, the
existence of any breach or failure to be true and correct for purposes of this Section 10.4 and the existence and scope of indemnification of any representation or warranty hereunder shall be determined as if such qualification or
limitation based on materiality or Material Adverse Effect were not included therein and (b) any breach of any covenant or agreement of Buyer, Company or Surviving Corporation contained in this Agreement or any Ancillary Agreement to which they
are a party that are required to be performed by them after the Closing. 
 Section 10.5 Limitations on Indemnification. 

(a) The indemnification provided for in each of Section 10.3(a) and Section 10.3(b) is subject to the following
limitations: 
 (i) subject to Section 10.5(a)(ii) the Stockholders shall not be liable to the Buyer Indemnified
Parties for any Losses (A) with respect to the matters described in Section 10.3(a) unless such Losses exceed an aggregate amount equal to $3,600,000 (the “Deductible Amount”) and then only for Losses in excess of
the Deductible Amount and (B) in excess of $55,000,000 (the “Cap”) in the aggregate for the Stockholders with respect to Section 10.3(a) and Section 10.3(b) (except that any Losses resulting from
Stockholder Indemnifiable Losses shall not be subject to the Cap, but shall be subject to the limitations set forth in Section 10.5(a)(vii)); 

(ii) without limiting the generality of the foregoing, any Losses arising out of any particular facts and circumstances shall
not be entitled to indemnification under Section 10.3(a) and shall not be indemnifiable or counted toward satisfaction of the Deductible Amount unless they exceed $25,000 in the aggregate; 

(iii) subject to Section 10.5(a)(ii), Buyer and Surviving Corporation shall not be liable to the Stockholder
Indemnified Parties for any Losses (A) with respect to the matters described in Section 10.4(a) unless such Losses exceed an aggregate amount equal to the Deductible Amount and then only for Losses in excess of the Deductible Amount
and (B) in excess of the Cap in the aggregate for Buyer with respect to Section 10.4(a) (except that any Losses resulting from Stockholder Indemnifiable Losses shall not be subject to the Cap, but shall be subject to the limitations
set forth in Section 10.5(a)(vii)); 

  
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 (iv) neither the Stockholders nor Buyer shall have any obligations under or
liabilities from and after the applicable Survival Date; provided that any claim for indemnity made by a Buyer Indemnified Party, in accordance with the terms of this Article X prior to the expiration of the applicable Survival Date
will survive beyond the applicable Survival Date until such claim is finally and conclusively resolved; 
 (v) neither a
Buyer Indemnified Party, nor the Buyer Indemnified Parties as a group or class, shall be entitled to recover from the Stockholders pursuant to this Article X more than once in respect of the same Losses suffered, and neither a Stockholder
Indemnified Party, nor the Stockholder Indemnified Parties as a group or class, shall be entitled to recover from Buyer or Surviving Corporation pursuant to this Article X more than once in respect of the same Losses suffered; 

(vi) each Buyer Indemnified Party and Stockholder Indemnified Party shall use its reasonable best efforts to mitigate any
indemnifiable Loss, and in the event that a Buyer Indemnified Party or Stockholder Indemnified Party fails to so mitigate an indemnifiable Loss, the Stockholders, Buyer or Surviving Corporation (as Indemnified Party) shall have no liability for any
portion of such Loss that reasonably could have been avoided had the Buyer Indemnified Party or Stockholder Indemnified Party, as applicable, made such efforts; 

(vii) Notwithstanding anything to the contrary herein but subject to the provisions of this Section 10.5(a)(vii),
with respect to any Losses with respect to which any of the Buyer Indemnified Parties is entitled to indemnification under or pursuant to this Article X, the sole and exclusive remedy and source of recovery shall be the funds in the General
Escrow Account except as follows: 
 (A) there shall be a right of indemnification against the Stockholders, which shall not
be subject to the Deductible Amount or the Cap, for any Losses resulting from fraud or a breach of any Fundamental Representation for which Buyer is entitled to indemnification pursuant to Section 10.3(c) or 10.3(d);
provided, that if at any time any funds remain in the General Escrow Account, the Buyer Indemnified Parties shall first seek recovery from the funds in the General Escrow Account with respect to any such Losses prior to seeking
indemnification from any Stockholder; and 
 (B) for any Losses for which Buyer is entitled to indemnification pursuant to
Section 10.3(e), there shall be a right of indemnification against the Stockholders which shall not be subject to the Deductible Amount or the Cap, and the General Escrow Account shall not be available to satisfy such indemnification.

 To the extent that any Buyer Indemnified Party shall be entitled to indemnification hereunder from the Stockholders for any Losses set
forth in clause (a) of this Section 10.5(a)(vii) (other than a breach of a Fundamental Representation made 

  
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pursuant to Article III) with respect to which a Buyer Indemnified Party has not received in full an indemnification payment hereunder and no funds then remain in either the General Escrow
Account or Merger Consideration Escrow Account (or in the case of an indemnification for a Loss specified in clause (b) of this Section 10.5(a)(vii), whether or not such funds remain in such escrow accounts), then each
Stockholder party hereto shall indemnify such Buyer Indemnified Party for the amount of such Loss multiplied by a fraction, the numerator of which is the cash Merger Consideration actually paid to such Stockholder hereunder, and the denominator of
which is the aggregate cash Merger Consideration actually paid to all Fully Diluted Common Holders (it being acknowledged and agreed that such indemnification obligation is several and not joint as among the Stockholders). In the case of a breach of
a Fundamental Representation made pursuant to Article III, only the Stockholder or Stockholders who have so breached such Fundamental Representation shall indemnify a Buyer Indemnified Party and only up to the amount of the Cash Merger
Consideration actually paid to such Stockholder or Stockholders; and 
 (viii) Notwithstanding anything to the contrary
herein, (i) the parties acknowledge and agree that no Stockholder or holder of Common Stock Options that is not a signatory hereto has any liability or obligations pursuant to this Article X; and (ii) with respect to any claim for
fraud by any Buyer Indemnified Party, the limitations set forth in this Article X shall apply solely to any claim for indemnification pursuant to this Article X made in respect of such fraud. 

(b) Notwithstanding anything to the contrary herein, except as provided in Section 2.11 (Post-Closing Merger Consideration
Adjustment), Section 6.6 (Directors’ and Officers’ Exculpation; Indemnification), Article VIII (Tax Matters), Article XI (Termination) or Section 12.6 (Equitable Relief), and except in the case of
fraud and for the right of specific performance, from and after the Closing the rights and remedies of Buyer, the Company, the Stockholders’ Representative and the Stockholders, and any Buyer Indemnified Party (each Buyer Indemnified Party is
referred to herein as an “Indemnified Party”), under this Article X are exclusive and in lieu of any and all other rights and remedies which Buyer, the Company, the Surviving Corporation, the Stockholders’
Representative, or the Stockholders, or any Indemnified Party, may have under this Agreement or any Ancillary Agreement or otherwise against each other with respect to this Agreement or any Ancillary Agreement and with respect to the transactions
contemplated hereby or thereby, and Buyer, the Company, the Surviving Corporation, the Stockholders’ Representative and the Stockholders each expressly waives and releases and agrees to waive and release any and all other rights or causes of
action it or its Affiliates may have against the other party or its Affiliates now or in the future under any Law with respect to the preceding matters. In furtherance of the foregoing, subject to the exceptions set forth in the preceding sentence,
each of the parties hereby waives, on behalf of itself and each of the other Indemnified Parties, to the fullest extent permitted under applicable Law, any and all rights, claims and causes of action (other than claims and causes of action based on
actual fraud) that it may have against any other parties to this Agreement or any Ancillary Agreement with respect to this Agreement or any Ancillary Agreement or in respect of the transactions contemplated

  
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hereby or thereby arising under or based upon any applicable Law or otherwise (except pursuant to the indemnification provisions set forth in this Article X, or the provisions of
Section 2.11 (Post-Closing Merger Consideration Adjustment), Section 6.6 (Directors’ and Officers’ Exculpation; Indemnification), Article VIII (Tax Matters), Article XI (Termination) or
Section 12.6 (Equitable Relief)). 
 Section 10.6 Adjustments to Losses. 

(a) Notwithstanding anything to the contrary herein, no Buyer Indemnified Party shall have any right to indemnification under this Article
X with respect to any Losses to the extent such Losses relate to any item specifically included on, or is a liability specifically reserved or accrued for (whether in whole or in part) in the Closing Statement or the calculation of the Final
Payment Amount (or any component thereof) (as finally agreed upon or determined pursuant to Section 2.11) or that is otherwise specifically taken into account in the calculation of any adjustment to the Merger Consideration pursuant to
Section 2.11. 
 (b) For all purposes of this Article X and Section 8.3, “Losses” shall be
net of any amounts paid or payable to an Indemnified Party under any Insurance Policy or Contract in connection with the facts giving rise to the right of indemnification hereunder, and each Indemnified Party shall use its reasonable best efforts to
recover all amounts payable from an insurer or other third party under any such insurance policy or Contract prior to seeking indemnification hereunder; provided, that the amount deemed to be paid under such Insurance Policies shall be net of
(x) the deductible for such policies and (y) any increase in the premium for such policies arising from such Losses. 
 (c) If any
Buyer Indemnified Party or the Surviving Corporation or any of its Subsidiaries recovers or is entitled to recover (whether by payment, discount, credit, relief, insurance or otherwise) from a third party a sum which indemnifies or compensates such
Buyer Indemnified Party, the Company or any of its Subsidiaries (in whole or in part) in respect of any Loss which is the subject matter of the claim, such Buyer Indemnified Party, the Surviving Corporation and its Subsidiaries shall take all
reasonable steps to enforce recovery against the third party and any actual recovery (less any reasonable costs incurred in obtaining such recovery) shall reduce or satisfy, as the case may be, such claim to the extent of such recovery. If
Stockholders’ Representative or any Stockholder has paid an amount, or any amount is paid out of the General Escrow Account, in discharge of any claim under this Article X or any Buyer Indemnified Party or the Surviving Corporation or
any of its Subsidiaries is entitled to recover (whether by payment, discount, credit, relief, insurance or otherwise) from a third party a sum which indemnifies or compensates such Buyer Indemnified Party or the Surviving Corporation or any of its
Subsidiaries (in whole or in part) in respect of any Loss which is the subject matter of the claim, the Stockholders’ Representative and each Stockholder shall be subrogated to all rights that such Buyer Indemnified Party or the Surviving
Corporation or any of its Subsidiaries has or would otherwise have in respect of the claim against the third party, or if subrogation is not possible or, the Buyer Indemnified Party, the Surviving Corporation and its Subsidiaries shall take all
action necessary to enforce such recovery and shall pay (or cause to be paid) to Stockholders’ Representative (for the 

  
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benefit of the Fully Diluted Common Holders) as soon as practicable after receipt an amount equal to (x) any sum recovered from the third party less any costs and expenses reasonably
incurred in obtaining such recovery or, if less, (y) the amount previously paid by the Stockholders’ Representative or any Stockholder (or the amount of funds in the General Escrow Account paid or distributed) to such Buyer Indemnified
Party, the Surviving Corporation and its Subsidiaries. 
 Section 10.7 Characterization of Indemnification Payments. All
payments made (or deemed to be made, in accordance with this Agreement) by any indemnifying party (“Indemnifying Party”) to an Indemnified Party with respect to any claim pursuant to Section 10.3 shall be treated, to the
fullest extent possible under applicable Law, as adjustments to the Merger Consideration for Tax purposes. 
 Section 10.8 Scheduled
Indemnification. The Buyer Indemnified Parties shall be reimbursed for all attorneys’ fees and reasonable costs and expenses arising out of or related to the matters set forth on Schedule 10.8, as well as 50% of any Losses resulting
from any settlement or Order arising out of or related to any dispute, litigation or proceeding involving the matters set forth on Schedule 10.8. The obligations pursuant to this Section 10.8 will not be subject to the Deductible
Amount, but will be subject to the Cap, and such fees, costs, expenses and Losses shall be satisfied solely through payment from the General Escrow Account. 

Section 10.9 Third-Party Claim Indemnification Procedures. 

(a) In the event that any written claim or demand for which an Indemnifying Party may have liability to any Indemnified Party hereunder is
asserted against or sought to be collected from any Indemnified Party by a third party (a “Third-Party Claim”), such Indemnified Party shall promptly, but in no event more than thirty days following such Indemnified Party’s
receipt of a Third-Party Claim, notify the Indemnifying Party of such Third-Party Claim, the amount or the estimated amount of damages sought thereunder to the extent, if any, then ascertainable, any other remedy sought thereunder, any relevant time
constraints relating thereto, a reasonably detailed explanation of the events giving rise to such Third-Party Claim and any other material details pertaining thereto (a “Claim Notice”); provided that the failure to timely
give a Claim Notice shall not relieve the Indemnifying Party of its obligations hereunder, except to the extent that the Indemnifying Party shall have been actually and materially prejudiced by such failure. Thereafter, the Indemnified Party shall
deliver to the Indemnifying Party, promptly following the Indemnified Party’s receipt thereof, copies of all notices and documents (including court papers) received by the Indemnified Party relating to the Third-Party Claim. 

(b) In the event that the Indemnifying Party notifies the Indemnified Party that it elects to defend the Indemnified Party against a
Third-Party Claim, then, except as hereinafter provided, the Indemnifying Party shall have the right to defend the Indemnified Party by appropriate proceedings, which proceedings shall be promptly settled or prosecuted by it to a final conclusion;
provided however, the Indemnifying Party shall not, without the prior written consent of the Indemnified Party, consent to the 

  
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entry of any judgment against the Indemnified Party or enter into any settlement or compromise which does not include, as an unconditional term thereof, the giving by the claimant or plaintiff to
the Indemnified Party of a release, in form and substance reasonably satisfactory to the Indemnified Party, from all liability in respect of such claim or litigation. If any Indemnified Party desires to participate in, but not control, any such
defense or settlement, it may do so at its sole cost and expense. Whether or not the Indemnifying Party assumes the defense of a Third-Party Claim, the Indemnified Party shall not admit any liability with respect to, settle, compromise or discharge,
such Third-Party Claim without the Indemnifying Party’s prior written consent. If the Indemnifying Party assumes the defense of a Third-Party Claim and is in good faith contesting such Third-Party Claim, the Indemnified Party shall agree to any
settlement, compromise or discharge of a Third-Party Claim that the Indemnifying Party may reasonably recommend and that by its terms (i) obligates the Indemnifying Party to pay (or obligates the use of the funds in the General Escrow Account
to pay) the full amount of Losses in connection with such Third-Party Claim (other than with respect to any Losses (or portion thereof) that are not required to be paid as a result of such Losses being (or portion thereof) within the Deductible
Amount or in excess of the Cap), (ii) fully and unconditionally (other than conditions relating solely to the making of the settlement payment) releases the Indemnified Party in connection with such Third-Party Claim and (iii) imposes no
non-monetary or other remedy relating to the Indemnified Party or its conduct or business. 
 (c) The Indemnified Party and the Indemnifying
Party shall cooperate in order to ensure the proper and adequate defense of a Third-Party Claim, including by providing reasonable access to each other’s relevant Books and Records, and employees. Such cooperation shall include the retention
and (upon the Indemnifying Party’s request) the provision to the Indemnifying Party of Books and Records and information that are reasonably relevant to such Third-Party Claim, and making employees and Representatives available on a mutually
convenient basis during normal business hours to provide additional information and explanation of any material provided hereunder. The Indemnified Party and the Indemnifying Party shall use reasonable commercial efforts to avoid production of
confidential information (consistent with applicable Law), and to cause all communications among employees, counsel and others representing any party to a Third-Party Claim to be made so as to preserve any applicable attorney-client or work-product
privileges. 
 (d) In the event of any conflict between the provisions of this Section 10.9 and Section 8.4 in
respect of any Tax Contest, the provisions of Section 8.4 shall control 
 Section 10.10 Direct Claim Indemnification
Procedures. Except with respect to claims relating to Taxes (which are the subject to Article VIII), each Indemnified Party shall assert any claim on account of any Losses which do not result from a Third-Party Claim (a “Direct
Claim”) by giving the Indemnifying Party written notice thereof reasonably promptly (and, in any event, no later than 30 days following the Indemnified Party’s discovery of the applicable Losses reasonably likely to give rise to a
claim under this Article X). Such notice by the Indemnified Party shall describe the Direct Claim in 

  
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reasonable detail, include copies of all available material written evidence thereof and indicate the estimated amount, if reasonably practicable, of Losses that have been or may be sustained by
the Indemnified Party; provided that the failure to timely give such notice shall not affect the rights of an Indemnified Party hereunder unless (i) such failure has a material prejudicial effect on the defenses or other rights available
to the Indemnifying Party with respect to such Direct Claim, (ii) the Indemnifying Party’s or the Indemnified Party’s ability to mitigate such Direct Claim, or (iii) the indemnification obligations are materially increased as a
result of such failure. 
 Section 10.11 Release of Escrow Fund. 

(a) Notwithstanding anything to the contrary contained herein, the parties hereby acknowledge and agree that, for so long as there are any
funds in the General Escrow Account, (i) in the event that Buyer and Stockholders’ Representative agree pursuant to a joint memorandum of agreement there is any amount due and payable to any Buyer Indemnified Party pursuant to this
Agreement (an “General Escrow Account Indemnification Payment”), or (ii) in the event that there should be issued an arbitration determination or award pursuant to Section 12.4 or a binding Order, in each case,
providing for the payment to any Buyer Indemnified Party of any amount from the General Escrow Account, then, upon written notice by Buyer (with a copy to the Stockholders’ Representative) and Stockholders’ Representative (with a copy to
Buyer), in the event of an Agreed Claim, or upon written notice by Buyer (with a copy to the Stockholders’ Representative) in the event of such an arbitration determination or award or an Order, to the Escrow Agent, a release of funds from the
General Escrow Account equal in amount to the General Escrow Account Indemnification Payment shall become immediately due and payable, and the Escrow Agent shall be directed to release such amount to Buyer within two (2) Business Days following
the date of such direction notice. 
 (b) On the General Survival Date (or, if such day is not a Business Day, then on the immediately
succeeding Business Day), all remaining amounts in the General Escrow Account shall become due and payable, and the Escrow Agent shall release (and Buyer and Stockholders’ Representative shall instruct the Escrow Agent to so release) all such
remaining amounts in the General Escrow Account in cash to Stockholders’ Representative (for the benefit of the Fully Diluted Common Holders); provided that if, on such day, any claim or claims for indemnification in accordance with the
requirements of Section 10.9 or Section 10.10, as applicable, by any Buyer Indemnified Party to the Stockholders’ Representative and the Escrow Agent under this Article X is pending, then the amount that would
otherwise be paid by the Escrow Agent to Stockholders’ Representative (for the benefit of the Fully Diluted Common Holders) pursuant to this sentence shall be reduced by the amount of such claim or claims. Such amount that is not so released
from the General Escrow Account as a result of such claim shall become due and payable when such claim becomes an Agreed Claim, and the Escrow Agent shall, within two (2) Business Days following the date on which Buyer and Stockholders’
Representative give the Escrow Agent written notice of the occurrence of an Agreed Claim (with a copy to the other party), release the applicable General Escrow Account Indemnification Payment to Buyer, if any, and any remaining amounts

  
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in the General Escrow Account to the Stockholders’ Representative (for the benefit of the Fully Diluted Common Holders). Subject to Section 2.12 hereof, when no claims made in
accordance with the requirements of Section 10.9 or Section 10.10, as applicable, against the Escrow Fund are remaining, the Escrow Agent shall release the remaining amounts to Stockholders’ Representative (for the
benefit of the Fully Diluted Common Holders). 
 ARTICLE XI 

TERMINATION 

Section 11.1 Termination. This Agreement may be terminated at any time prior to the Closing: 

(a) by written agreement of Buyer and Stockholders’ Representative; 

(b) by either Buyer or the Stockholders’ Representative, by giving written notice of such termination to the other parties, on or after
September 22, 2014, the date that is ninety (90) days following the date hereof, (the “Outside Date”), if the Closing shall not have occurred, subject to Section 12.6, prior to the Outside Date, such Outside
Date to be extended an additional one hundred twenty (120) days (i) should the Company or the Buyer receive any formal Request for Additional Information that may be issued under the HSR Act by the Antitrust Division of the U.S. Department
of Justice or the U.S. Federal Trade Commission or any similar request for additional information that may be issued by any Governmental Entity pursuant to any Competition/Investment Law in connection with the transactions contemplated by this
Agreement or (ii) if on the first date that the Outside Date would otherwise occur the conditions to Closing set forth in Section 9.1(a) (by reason of a Request for Additional Information or similar request for additional
information, as referred to in clause (i)) and/or Section 9.1(b) shall not have been satisfied but all other conditions to Closing set forth in Article IX shall be satisfied or waived other than conditions that by their terms are
to be satisfied at the Closing; provided that the right to terminate this Agreement or extend the Outside Date pursuant to this Section 11.1(b) shall not be available to any party whose failure to fulfill any obligation under this
Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior to such date; 
 (c) by
either Buyer or the Stockholders’ Representative in the event that any Order restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement, shall have become final and nonappealable; 

(d) by Buyer, if there has been a material violation or breach by the Company or Stockholders’ Representative of any representation or
warranty (or any such representation or warranty shall have become untrue in any material respect after the date of this Agreement) or covenant or agreement contained in this Agreement which, in either case, would prevent the satisfaction of or
result in the failure of any condition to the obligations of Buyer or Merger Sub at the Closing and such violation or breach has not been waived by Buyer or, in the case of a breach of any covenant or agreement under

  
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this Agreement that is curable, has not been cured by the Company or Stockholders’ Representative prior to the earlier to occur of (x) thirty (30) days after receipt by the
Company, as applicable, of written notice of such breach from Buyer and (y) the Outside Date; provided, however, that Buyer may not terminate this Agreement pursuant to this Section 11.1(d) at any time during which
Buyer or Merger Sub is in material breach of this Agreement; 
 (e) by Stockholders’ Representative, if there has been a material
violation or breach by Buyer or Merger Sub of any representation or warranty (or any such representation or warranty shall have become untrue in any material respect after the date of this Agreement) or covenant or agreement contained in this
Agreement which would, in either case, prevent the satisfaction of or result in the failure of any condition to the obligations of the Company at the Closing and such violation or breach has not been waived by the Company or, with respect to a
breach of any covenant or agreement under this Agreement that is curable, has not been cured by Buyer prior to the earlier to occur of (x) thirty (30) days after receipt by Buyer of written notice of such breach from the Company or
(y) the Outside Date; provided, however, that the Stockholders’ Representative may not terminate this Agreement pursuant to this Section 11.1(e) at any time during which the Company is in material breach of this
Agreement; or 
 (f) by Buyer, if there shall have occurred a Material Adverse Effect. 

Section 11.2 Effect of Termination. In the event of the termination of this Agreement in accordance with Section 11.1,
this Agreement, insofar as it relates to the parties’ rights and obligations relating thereto, shall thereafter become void and have no effect, and no party shall have any liability to the other party or their respective Affiliates, or their
respective directors, officers, stockholders, partners, members, attorneys, accountants, agents, representatives or employees or their heirs, successors and permitted assigns, except for the obligations of the parties contained in
Section 6.5, this Section 11.2 and Article XII (including Section 12.6) (and any related definitional provisions set forth in Article I or Appendix A), and except that nothing in this Section
shall relieve either party from liability for any willful and material breach of this Agreement that arose prior to or concurrently with such termination. 

ARTICLE XII 

MISCELLANEOUS 

Section 12.1 Notices. All notices, consents, waivers, agreements or other communications hereunder shall be deemed effective or to
have been duly given and made (and shall be deemed to have been duly given or made upon receipt) only if in writing and if (a) served by personal delivery upon the party for whom it is intended, (b) delivered by overnight air courier or
(c) sent by facsimile transmission or email, with confirmation of transmission, in each case, to such party at the address set forth below, or such other address as may be designated in writing hereafter, in the same manner, by such party: 

  
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 To Buyer, or after Closing, the Surviving Corporation: 

Generics International (US), Inc. 

1400 Atwater Drive 
 Malvern, PA
19355 
 Telephone: (484) 216-4116 

Facsimile No.: (610) 884-7159 

Attention: Caroline B. Manogue, Esq. 

With a copy (which shall not constitute notice) to: 

Skadden, Arps, Slate, Meagher & Flom LLP 

4 Times Square 
 New York, NY
10036 

	 	Telephone:	(212) 735-3743 

	 	Facsimile No.:	(917) 777-3743 

	 	Attention:	Eileen T. Nugent, Esq. 

	 	 	Brandon Van Dyke, Esq. 

 To, prior to the Closing, the Company: 

DAVA Pharmaceuticals, Inc. 
 400
Kelby Street, 10th Floor 
 Fort Lee, NJ 07024 

Telephone: 201-947-7442 

Facsimile No.: 201-947-7536 

Attention: General Counsel 
 With
a copy (which shall not constitute notice) to: 
 Dechert LLP 

1095 Avenue of the Americas 

New York, NY 10036 – 6797 

	 	Telephone :	(212) 698-3500 

	 	Facsimile No.:	(212) 698-3599 

	 	Attention:	Carl deBrito 

	 	 	(carl.debrito@Dechert.com) 

	 	 	Richard Goldberg 

	 	 	(richard.goldberg@Dechert.com) 

  
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 To the Stockholders’ Representative: 

DAVA SR, LLC 
 P.O. Box 20 

Lennox Hill Station 
 New York,
NY 10023 
 Attention: Lewis Tepper 

With a copy (which shall not constitute notice) to: 

Dechert LLP 
 1095 Avenue of the
Americas 
 New York, NY 10036 – 6797 

	 	Telephone :	(212) 698-3500 

	 	Facsimile No.:	(212) 698-3599 

	 	Attention:	Carl deBrito 

	 	 	(carl.debrito@Dechert.com) 

	 	 	Richard Goldberg 

	 	 	(richard.goldberg@Dechert.com) 

 All such notices, demands or communications shall be deemed to
have been given and received on the date delivered by personal delivery, facsimile transmission or email (if received prior to 5:00 p.m. New York City time on a Business Day (or otherwise on the next Business Day)), or if mailed, four (4) days
after mailing (or one (1) Business Day in the case of overnight air courier services), except that any notice of change of address shall be effective only upon actual receipt thereof. 

Section 12.2 Amendment; Waiver. Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver
is in writing and signed, (i) in the case of an amendment, by Buyer and the Stockholders’ Representative, or (ii) in the case of a waiver, by the party against whom such waiver is intended to be effective (provided that the
Stockholders’ Representative may waive any provision of this Agreement on behalf of any Stockholder); provided, however, that after the adoption of this Agreement by the requisite number of Stockholders in accordance with the
Organizational Documents of the Company and the provisions of the DGCL, no amendment shall be made that by law requires further approval by the Stockholders without obtaining such requisite approval under the DGCL, except to the extent the approval
of such Stockholders can be given by the Stockholders’ Representative under applicable law. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 
 Section 12.3
No Assignment or Benefit to Third Parties. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, legal representatives and permitted assigns. Notwithstanding the foregoing, no
party to this Agreement may assign any of its rights or delegate any of its obligations 

  
 72 

 
under this Agreement without the prior written consent of the other party hereto and any purported assignment in violation of the foregoing shall be null and void. Except to the extent expressly
set forth in Section 6.6, Section 12.5, Section 12.16, Section 12.19, Article X or Article XI, nothing in this Agreement, express or implied, is intended to confer upon any Person other
than Buyer, the Company, the Stockholders and the Stockholders’ Representative, and their respective successors, legal representatives and permitted assigns, any rights, benefits or remedies under or by reason of this Agreement. 

Section 12.4 Entire Agreement; Inconsistency. This Agreement (including all Schedules, Exhibits and Appendices hereto), the
Confidentiality Agreement and the Ancillary Agreements contain the entire agreement among the parties hereto with respect to the subject matter hereof and thereof, and supersede all prior agreements and understandings, oral or written, with respect
to such matters. In the event and to the extent that there shall be an inconsistency between the provisions of this Agreement and the provisions of the Confidentiality Agreement or an Ancillary Agreement, this Agreement shall prevail. The provisions
of this Agreement shall be construed according to their fair meaning and neither for nor against any party hereto irrespective of which party caused such provisions to be drafted. Each of the parties hereto acknowledges that it has been represented
by an attorney in connection with the preparation and execution of this Agreement, the Confidentiality Agreement and the Ancillary Agreements. 

Section 12.5 Satisfaction of Obligations. Any obligation of any party to any other under this Agreement, that is performed,
satisfied or fulfilled completely by an Affiliate of such party shall be deemed to have been performed, satisfied or fulfilled by such party. 

Section 12.6 Equitable Relief. The parties hereto agree that if any of the provisions of this Agreement were not to be performed
as required by their specific terms or were to be otherwise breached, irreparable damage will occur and no adequate remedy at Law would exist and damages would be difficult to determine, and that the parties hereto shall be entitled to an injunction
or injunctions to prevent breaches, and to specific performance of the terms, of this Agreement (including causing the transactions contemplated hereby to be consummated on the terms and subject to the conditions thereto set forth in this
Agreement), in addition to any other remedy at Law or equity. No party hereto shall oppose, argue, contend or otherwise be permitted to raise as a defense that an adequate remedy at Law exists or that specific performance or equitable or injunctive
relief is inappropriate or unavailable. The parties hereto further agree that nothing in this Section 12.6 shall require any party hereto to institute any Litigation for specific performance under this Section 12.6 prior or
as a condition to exercising any termination right under Article XI, nor shall the commencement of any Litigation pursuant to this Section 12.6 or anything set forth in this Section 12.6 restrict or limit the
parties’ respective right to terminate this Agreement in accordance with the terms hereof; it being understood and agreed by the parties, prior to the Closing, that during the pendency of any Litigation initiated by a party under this
Section 12.6, each of the parties shall maintain their respective rights to terminate this Agreement under Section 11.1. If any party hereto, prior to the Closing, brings any Litigation to enforce specifically the performance
of the terms and provisions hereof by any other party (or a Litigation for 

  
 73 

 
monetary damages as described in the following sentence) and the Outside Date has not yet passed, the Outside Date shall automatically be extended by (x) the amount of time during which such
Litigation is pending, plus 20 Business Days or (y) such other time period established by the Delaware Court presiding over such Litigation. If any party hereto, prior to the Closing, institutes a Litigation for injunctive relief or specific
performance and a court of competent jurisdiction does not award injunctive relief or specific performance in a final Order in accordance with this Section 12.6, then such party may institute a Litigation for monetary damages to the
extent damages are available under Section 11.2. Notwithstanding anything in this Agreement to the contrary, if any party is awarded injunctive relief or specific performance as a result of which the Closing actually occurs, such
equitable relief shall be such party’s sole and exclusive remedy under this Agreement solely with respect to failure to consummate the Closing. 

Section 12.7 Expenses. Except as otherwise expressly provided in this Agreement, whether or not the transactions contemplated by
this Agreement are consummated, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be borne by the party incurring such costs and expenses, including, but not limited to, complying with
any formal Request for Additional Information that may be issued under the HSR Act by the Antitrust Division of the U.S. Department of Justice or the U.S. Federal Trade Commission or any similar request for additional information that may be issued
by any Governmental Entity pursuant to any Competition/Investment Law in connection with the transactions contemplated by this Agreement. Notwithstanding the foregoing or anything to the contrary herein, (x) all filing fees to be paid in
connection with the HSR Act or any other Competition/Investment Law shall be paid by Buyer and (y) the fees and expenses incurred in connection with the obligations to obtain D&O Insurance set forth in Section 6.6 shall be paid
by Buyer. 
 Section 12.8 Schedules. Any exception or qualification set forth on the Schedules with respect to a particular
representation, warranty or covenant contained in this Agreement shall be deemed to be an exception or qualification with respect to all other applicable representations, warranties and covenants contained in this Agreement to the extent that it is
readily apparent on the face of such disclosure that such disclosure is applicable thereto; but shall not be deemed to constitute an admission by Buyer or the Company, the Stockholders’ Representative or any Stockholder or to otherwise imply
that any such matter or Contract is material for the purposes of this Agreement and shall not affect the interpretation of such term for the purposes of this Agreement. In particular, (a) certain matters may be disclosed on the Schedules that
may not be required to be disclosed because of certain minimum thresholds or materiality standards set forth in this Agreement, (b) the disclosure of any such matter does not mean that it meets or surpasses any such minimum thresholds or
materiality standards and (c) no disclosure in the Schedules relating to any possible breach or violation of any Contract or Law shall be construed as an admission or indication that any such breach or violation exists or has actually occurred.
In no event shall the listing of such matters in any Schedule be deemed or interpreted to expand the scope of the Company’s representations and warranties contained in this Agreement. The section headings in the Schedules are for convenience of
reference only and shall not be deemed to alter or affect the meaning or 

  
 74 

 
interpretation of any information disclosed herein or any provision of this Agreement. All attachments to the Schedules are incorporated by reference into the Schedule in which they are directly
or indirectly referenced. The information contained in the Schedules is in all events subject to Section 6.5 and the Confidentiality Agreement. 

Section 12.9 Governing Law; Submission to Jurisdiction; Selection of Forum. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE IN THE UNITED STATES OF AMERICA, REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE PRINCIPLES OF CONFLICTS OF LAW THEREOF. Each party hereto agrees that it shall bring any
Litigation with respect to any claim arising out of or related to this Agreement or the transactions contained in or contemplated by this Agreement and the Ancillary Agreements, exclusively in the Delaware Court of Chancery and any state appellate
court therefrom within the State of Delaware (unless the Delaware Court of Chancery shall decline to accept jurisdiction over a particular matter, in which case, in any Delaware state or federal court within the State of Delaware) (such courts,
collectively, the “Delaware Courts”), and solely in connection with claims arising under this Agreement or the transactions that are the subject of this Agreement or any of the Ancillary Agreements (i) irrevocably submits to
the exclusive jurisdiction of the Delaware Courts, (ii) waives any objection to laying venue in any such action or proceeding in the Delaware Courts, (iii) waives any objection that the Delaware Courts are an inconvenient forum or do not
have jurisdiction over either party hereto, (iv) agrees that service of process upon such party in any such action or proceeding shall be effective if notice is given in accordance with Section 12.1 of this Agreement, although
nothing contained in this Agreement shall affect the right to serve process in any other manner permitted by Law and (v) agrees not to seek a transfer of venue on the basis that another forum is more convenient. Notwithstanding anything herein
to the contrary, (i) nothing in this Section 12.9 shall prohibit any party from seeking or obtaining orders for conservatory or interim relief from any court of competent jurisdiction and (ii) each party hereto agrees that any
judgment issued by a Delaware Court may be recognized, recorded, registered or enforced in any jurisdiction in the world and waives any and all objections or defenses to the recognition, recording, registration or enforcement of such judgment in any
such jurisdiction. 
 Section 12.10 WAIVER OF JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY
ARISE UNDER THIS AGREEMENT OR ANY ANCILLARY AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO
ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY ANCILLARY AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY ANCILLARY AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (a) NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF 

  
 75 

 
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (b) SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (c) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND
(d) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND EACH ANCILLARY AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

Section 12.11 Arbitration. 

(a) Notwithstanding anything in this Agreement to the contrary but except to the extent provided in Section 2.11, all disputes
among the parties hereto arising after the Closing shall, if not otherwise resolved by discussions between such parties, be submitted to binding arbitration by a panel of three neutral arbitrators pursuant to the Commercial Arbitration Rules of the
American Arbitration Association (the “AAA”). 
 (b) The parties shall contract with the arbitrators to commence the
arbitration hearing within thirty (30) days of the demand for arbitration pursuant to Section 12.11(a); provided, however, that if the parties cannot agree on the arbitrators within such thirty (30) day period,
the arbitrators shall be selected by the New York, New York office of the AAA or, if such office does not exist or is unable to make the selections, by the office of the AAA nearest to New York, New York. Each arbitrator shall be a lawyer
knowledgeable and experienced in the applicable Laws concerning the subject matter of the dispute. In any case no arbitrator shall be an Affiliate, employee, consultant, officer, director or stockholder of any party hereto, or otherwise have any
current or previous relationship with either the Company, the Stockholders or Buyer or their respective Affiliates. The governing Law in Section 12.9 shall govern any such arbitration proceedings. The arbitration shall be held in New
York, New York. Any arbitration award may be entered in and enforced by any court having jurisdiction. 
 (c) The arbitrators, by accepting
their appointment, undertake to conduct the process such that the award be rendered within six (6) months of their appointment. The determination of the majority of the arbitrators as to the resolution of any dispute or any other decision to be
made by the arbitrators shall be binding and conclusive upon all parties. All rulings of the arbitrators shall be in writing and shall be delivered to the parties except to the extent that the Commercial Arbitration Rules of the AAA provide
otherwise. 
 (d) If arbitrated, the arbitrators shall be given the authority to award fees and costs to the prevailing party or as
otherwise determined by the arbitrators. 
 (e) Except as otherwise determined by the arbitrator pursuant to Section 12.11(d) or
as provided elsewhere in this Agreement, the expenses of any arbitration shall be borne equally by the parties to such arbitration, provided that each party shall pay for and bear the cost of its own experts, evidence and legal counsel. 

  
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 Section 12.12 Counterparts. This Agreement may be executed in one or more
counterparts, each of which, including those received via facsimile transmission or email, shall be deemed an original, and all of which shall constitute one and the same Agreement. 

Section 12.13 Headings. The heading references herein and the table of contents hereof are for convenience purposes only, and
shall not be deemed to limit or affect any of the provisions hereof. 
 Section 12.14 No Setoff; No Withholding. There shall be
no right of setoff or counterclaim with respect to any claim, debt or obligation, against payments to any of Buyer, the Company, the Stockholders’ Representative, holders of Company Stock Options or the Stockholders or their respective
Affiliates under this Agreement or the Ancillary Agreements. Except to the extent expressly set forth herein or as required by applicable Law, any and all payments made to the Stockholders’ Representative, holders of Company Stock Options or
Stockholders under this Agreement (including pursuant to 0) shall be made free and clear of any deduction or withholding. 

Section 12.15 Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of
any provision hereof shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any Person or any circumstance, is invalid or unenforceable, (a) a suitable
and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application
of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in
any other jurisdiction. 
 Section 12.16 Non-Recourse. Notwithstanding anything that may be expressed or implied in this
Agreement, any Ancillary Agreement or any document, certificate or instrument delivered in connection herewith or therewith, each party hereby acknowledges and agrees that, except for in the case of fraud, it has no right of recovery against, and no
personal liability shall attach to, the former, current or future direct or indirect equityholders, directors, officers, employees, incorporators, agents, attorneys, representatives, Affiliates, members, managers, general or limited partners or
assignees of the Stockholders’ Representative, any Stockholder or any former, current or future direct or indirect equity holder, director, officer, employee, incorporator, agent, attorney, representative, general or limited partner, member,
manager, Affiliate, agent, assignee or representative of any of the foregoing (collectively, the “Seller Affiliates”), through the Stockholders’ Representative, any Stockholder or otherwise, whether by or through attempted
piercing of the corporate, partnership, limited partnership or limited liability company veil, by or through a claim by or on behalf of Buyer or the Surviving Corporation or any Buyer Indemnified Party against the Stockholders, the
Stockholders’ Representative or the Seller Affiliates by the enforcement of any assessment or by any legal or equitable Litigation, by virtue of any Law, or otherwise, except for Buyer’s rights to recover from the Stockholders (but not any
of the other Seller Affiliates) under and to the extent expressly provided for in this Agreement or any Ancillary Agreement, subject 

  
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to the limitations described herein. Except with regard to fraud, recourse against either the Stockholders or Buyer under this Agreement (subject to the limitations described herein) shall be the
sole and exclusive remedy of Buyer and any other Person against the Stockholders, the Stockholders’ Representative or any Seller Affiliate in respect of any Losses, liabilities or obligations arising under, or in connection with, this
Agreement, any Ancillary Agreement or any document, certificate or instrument delivered in connection herewith or therewith, or the transactions contemplated hereby or thereby. Buyer hereby covenants and agrees, on behalf of itself and its
Affiliates and Representatives, that it and they shall not institute, and it and they shall cause their respective Affiliates not to institute, any Litigation or bring any other claim arising under, or in connection with, this Agreement, any
Ancillary Agreement or any document, certificate or instrument delivered in connection herewith or therewith, or the transactions contemplated hereby or thereby against the Stockholders, the Stockholders’ Representative or any Seller Affiliates
except for claims against the Stockholders pursuant to the express terms of this Agreement subject to the limitations described herein. Notwithstanding anything to the contrary herein but except solely with respect to Section 12.19(e),
from and after the Closing, in no event shall Buyer, the Stockholders, the Stockholders’ Representative or any other Person be liable for any punitive damages as a result of or in connection with the execution, delivery, breach or performance
(or failure to perform) this Agreement, any Ancillary Agreement or any document, certificate or instrument delivered in connection herewith or therewith, or the transactions contemplated hereby or thereby. 

Section 12.17 Service of Process. Service upon any party hereto of any notice, process, motion or other document in connection
with Litigations relating in any with or to this Agreement or the subject matter hereof may be effectuated by service upon such party at the address set forth in Section 12.1 hereof or such other address as provided to each other party
in accordance with the notice provisions set forth in Section 12.1 hereof at least ten (10) days prior to such change in address; provided that if such party changes its address and fails to provide notice as set forth in
this Section 12.17, then service upon such party may be effected by service upon (i) such attorney with an office in New York, New York, as agent for such party, as may be specified by such party by notice to the other party hereto
or (ii) by personal service or in the same manner as notices are to be given pursuant to Section 12.1 or any other manner permitted by Law. Each of the parties to this Agreement expressly and irrevocably agrees that service in
accordance with this Section 12.17 will be effective and sufficient service of process. Nothing herein shall affect the right to serve process in any other manner permitted by applicable Law; it being agreed and understood, however, that
no Person shall be obligated to serve process in any other way than as provided herein. 
 Section 12.18 Currency.
Notwithstanding anything to the contrary herein, all payments required to be made hereunder, or as a result of a breach or violation hereof, shall be made in United States dollars, and, when any amount is paid with respect to the foregoing such
amount shall be the United States dollar amount thereof on the applicable date of funding regardless of the amount or type of currency necessary to be exchanged or converted in order to satisfy, pay or fund such amount in United States dollars. 

  
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 Section 12.19 Stockholders’ Representative. 

(a) The Stockholders hereby irrevocably appoint the Stockholders’ Representative as the exclusive proxy, representative, agent and
attorney-in-fact of each of the Stockholders for all purposes under this Agreement, with full power of substitution, to make all decisions and determinations and to act and execute, deliver and receive all documents, instruments and consents on
behalf of such Stockholders at any time, in connection with, and that may be necessary or appropriate to accomplish the intent and implement the provisions of, this Agreement and the Ancillary Agreements contemplated hereunder, and to facilitate the
consummation of the Merger, and in connection with the activities to be performed by or on behalf of the Stockholders under this Agreement and the Ancillary Agreements, and each other agreement, document, instrument or certificate referred to herein
or therein (including in connection with any and all claims for indemnification brought pursuant to this Agreement or the Ancillary Agreements). The Stockholders’ Representative may resign by providing thirty (30) days’ prior written
notice to each Stockholder and Buyer. Upon the resignation of the Stockholders’ Representative, such Stockholders who, immediately prior to the Effective Time, held a majority of the Company Stock shall appoint a replacement Stockholders’
Representative to serve in accordance with the terms of this Agreement, provided, that if the holders of a majority of the Company Stock fail to appoint a replacement Stockholder Representative in accordance with the preceding clause of this
sentence within forty-five (45) days of such Stockholders’ Representative resigning or becoming unable to serve, then Buyer shall have the right to replace the Stockholder’ Representative who shall serve until a successor is duly
appointed by a majority of the Stockholders party to this Agreement. The Stockholders’ Representative shall have no other duties or obligations, at law, in equity, by contract or otherwise, to act on behalf of any Stockholder, except for those
duties or obligations expressly set forth in this Agreement. The appointment as Stockholders’ Representative shall not be deemed to create any partnership or other fiduciary or similar relationship between the Stockholders’ Representative
or any Stockholder. 
 (b) Without limiting the generality of the foregoing, the Stockholders’ Representative shall be granted the
power to take any of the following actions on behalf of such Stockholders: (i) to execute and deliver this Agreement and the Ancillary Agreements (in each case, with such modifications or changes therein as to which the Stockholders’
Representative, in his, her or its sole discretion, shall have consented) and to agree to such amendments or modifications thereto as the Stockholders’ Representative, in his, her or its sole discretion, may deem necessary or desirable;
(ii) to give and receive notices, communications and consents under this Agreement or the Ancillary Agreements; (iii) to receive and distribute payments pursuant to this Agreement or the Ancillary Agreements; (iv) to resolve any
disputes under, or waive any provision of, this Agreement or the Ancillary Agreements; (v) to authorize delivery to any Indemnified Party of cash or other property from the General Escrow Account or Merger Consideration Escrow Account pursuant
to this Agreement or the Escrow Agreement; (vi) to assert any claim or institute any Litigation; (vii) to investigate, defend, contest or litigate any Litigation initiated by any Person against the Stockholders’ Representative or the
General Escrow Amount; (viii) to receive process on behalf of any or all such Stockholders in any such Litigation; (ix) to negotiate, enter into settlements and comprises of, resolve and comply with orders of courts and awards of
arbitrators or other 

  
 79 

 
third party intermediaries with respect to any disputes arising under this Agreement or the Ancillary Agreements and with respect to indemnification claims under this Agreement or the Ancillary
Agreements; (x) to agree to any offsets or other additions or subtractions of amounts to be paid under this Agreement or the Ancillary Agreements; (xi) to cause the General Escrow Amount and the Merger Consideration Escrow Amount to be
invested in accordance with the terms and conditions of the Escrow Agreement, it being understood and agreed that in no event shall the Stockholders’ Representative be deemed to be providing investment advice with respect to the investment of
any such funds, nor shall it have any liability for any loss incurred in connection with the investment of the General Escrow Amount or the Merger Consideration Escrow Amount; (xii) to finalize any post-Closing adjustment of the Merger
Consideration; (xiii) to distribute any amounts to the Fully Diluted Common Holders after the Closing Date pursuant to this Agreement (including Section 2.11, Section 2.12, Section 2.13,
Section 8.5, and Article X) or the Escrow Agreement (after paying any portions thereof to recipients of bonus payments) and (xiv) to make, execute, acknowledge and deliver all such other agreements, guarantees, orders,
receipts, endorsements, notices, requests, instructions, certificates, stock powers, letters and other writings, and, in general, to do any and all things and to take any and all actions that the Stockholders’ Representative, in his, her or its
sole discretion, may consider necessary or proper or convenient in connection with or to consummate the Merger and carry out the activities described in this Agreement and the Ancillary Agreements. The Stockholders’ Representative shall not be
responsible for any Loss suffered by, or liability of any kind to, such Stockholders arising out of any act done or omitted by the Stockholders’ Representative in connection with the acceptance or administration of the Stockholders’
Representative’s duties hereunder, except to the extent such act or omission constitutes gross negligence or willful misconduct. 
 (c)
Such appointment of the Stockholders’ Representative by the Stockholders is coupled with an interest and may not be revoked in whole or in part (including, upon the death or incapacity of any such Stockholder). Such appointment is binding upon
the heirs, executors, administrators, estates, personal representatives, successors and assigns of each such Stockholder. All decisions of the Stockholders’ Representative are final and binding on all of the Stockholders, and shall be deemed
authorized, approved, ratified and confirmed by the Stockholders, having the same force and effect as if performed by, or pursuant to the direct authorization of, the Stockholders, and no Stockholder shall have any right to challenge or otherwise
question any such action, decision or instruction. Each Stockholder hereby waives any and all defenses which may be available to contest, negate or disaffirm any action of the Stockholders’ Representative taken in connection with the authority
granted by this Agreement. 
 (d) The Stockholders’ Representative shall receive no compensation for service as such, but shall be
entitled to hold the Reserve Amount, and to use all or a portion of the Reserve Amount to satisfy its payment obligations under this Agreement or any Ancillary Agreement and to reimburse itself for any and all expenses, charges and liabilities,
including reasonable attorneys’ fees incurred by the Stockholders’ Representative in the performance or discharge of its duties pursuant to this Section 12.19; provided, however, the Stockholders’
Representative shall be entitled to hire counsel, accountants, tax preparers and other advisors and experts to assist or advise it in 

  
 80 

 
connection with the performance of its rights or obligations pursuant to this Section 12.19 or under the Escrow Agreement, and all such reasonable expenses incurred by the
Stockholders’ Representative, including expenses relating to any such counsel, accountant, tax preparer, advisor or expert, shall be reimbursed using the Reserve Amount. 

(e) The Stockholders shall indemnify on a several, but not joint basis (on a pro rata basis, in proportion to their respective share of the
Merger Consideration) the Stockholders’ Representative for, and shall hold the Stockholders’ Representative harmless against, any damage, loss, charge, liability, claim, demand, action, suit, judgment, settlement, award, interest, penalty,
fee, cost and expense (including reasonable attorneys’ fees and disbursements) incurred by the Stockholders’ Representative or any of its Affiliates and any of their respective managers, directors, officers, employees, agents, members,
partners, stockholders, consultants, attorneys, accountants, advisors, brokers, representatives or controlling persons, in each case relating to the Stockholders’ Representative’s conduct or role as Stockholders’ Representative, other
than damages, losses, charges, liabilities, claims, demands, actions, suits, judgments, settlements, awards, interest, penalties, fees, costs and expenses that have been finally determined by a court of competent jurisdiction to have primarily
resulted from the Stockholders’ Representative’s fraud or willful misconduct in connection with its performance under this Agreement. This indemnification shall survive the termination of this Agreement. The Stockholders’
Representative shall have the right to cause the satisfaction of some or all of such indemnification obligations using any then available proceeds contained in the Reserve Amount. The Stockholders’ Representative may, in all questions arising
under this Agreement, rely on the advice of counsel, advisor or expert, and for anything done, omitted or suffered in good faith by the Stockholders’ Representative in accordance with such advice, and the Stockholders’ Representative shall
not be liable to the Stockholders or any other person in connection therewith. In no event shall the Stockholders’ Representative be liable hereunder or in connection herewith for any consequential, indirect, incidental, special, unforeseen,
exemplary or punitive damages, including diminution of value, loss of business or reputation or opportunity, and in particular, without limitation, no “multiple of profits” or “multiple of cash flow” or similar valuation
methodology shall be used in calculating the amount of Losses. The Stockholders’ Representative shall not be liable to any Stockholder for any action taken or omitted by the Stockholders’ Representative under this Agreement, the Escrow
Agreement or any other document executed or delivered hereunder, or in connection therewith, except that the Stockholders’ Representative shall not be relieved of any liability imposed by law to the extent it is finally determined to have
primarily resulted from fraud or willful misconduct of the Stockholders’ Representative. 
 (i) Under no circumstances
does Buyer have any obligations with regard to any Stockholder, the Stockholders’ Representative or any Affiliates of any Stockholder or the Stockholders’ Representative, except payment of amounts set forth herein not to exceed the Base
Enterprise Value plus the Milestone Payments, if payable. 

  
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 [Remainder of Page Intentionally Left Blank] 

  
 82 

 IN WITNESS WHEREOF, the parties have executed or caused this Agreement to be executed as of the
date first written above, with Endo Guarantor a party to this Agreement solely for purposes of Section 6.10 hereof. 
  

			
	DAVA PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Lewis Tepper

	Name:	 	Lewis Tepper
	Title:	 	General Counsel, Chief Operating Officer, Treasurer and Secretary
	
	GENERICS INTERNATIONAL (US), INC.
		
	By:	 	 /s/ Rajiv De Silva

	Name:	 	Rajiv De Silva
	Title:	 	President and Chief Executive Officer
	
	GENERICS MERGER SUB INC.
		
	By:	 	 /s/ Rajiv De Silva

	Name:	 	Rajiv De Silva
	Title:	 	President and Chief Executive Officer
	
	SOLELY FOR PURPOSES OF SECTION 6.10 HEREOF
	
	ENDO PHARMACEUTICALS INC.
		
	By:	 	 /s/ Rajiv De Silva

	Name:	 	Rajiv De Silva
	Title:	 	President and Chief Executive Officer

 
			
	STOCKHOLDERS’ REPRESENTATIVE:
	
	DAVA SR, LLC:
		
	By:	 	 /s/ Lewis Tepper

	Name:	 	Lewis Tepper
	Title:	 	Member

 
			
	STOCKHOLDERS
	
	GUGGENHEIM PHARMA INVESTOR, LLC
		
	BY:	 	GUGGENHEIM CAPITAL, LLC, its Manager
		
	By:	 	 /s/ Christopher Antonow

	Name:	 	Christopher Antonow
	Title:	 	Assistant Secretary
	
	GUGGENHEIM PHARMA INVESTOR II, LLC
		
	BY:	 	GUGGENHEIM CAPITAL, LLC, its Manager
		
	By:	 	 /s/ Christopher Antonow

	Name:	 	Christopher Antonow
	Title:	 	Assistant Secretary
	
	GPI3, LLC
		
	BY:	 	TEK FINANCIAL, LLC, its Manager
		
	By:	 	 /s/ John T. Griffin

	Name:	 	John T. Griffin
	Title:	 	Authorized Signatory
	
	DAVA PARTNERS LLC
		
	BY:	 	Its Managing Member

 
			
	EVANSIC INTERNATIONAL LIMITED
	
	FOR AND ON BEHALF OF: HELVETICA DIRECTORS INC.
		
	By:	 	 /s/ Kelvin Mitchell

	Name:	 	Kelvin Mitchell
	Title:	 	Authorized Signatory
	
	RENOVATIO PHARMA LTD.
		
	By:	 	 /s/ John Terry

	Name:	 	John Terry
	Title:	 	Chief Operating Officer

 [INDIVIDUAL STOCKHOLDERS PARTY HERETO] 

 APPENDIX A 

DEFINITIONS 
 In this Appendix,
and in the Agreement and the other Appendices and Schedules thereto, unless the context otherwise requires, the following terms shall have the meanings assigned below and the terms listed in the chart below shall have the meanings assigned to them
in the Section set forth opposite to such term (unless otherwise specified, section references in this Appendix are to Sections of this Agreement): 
  

					
	 Term:
	  	Section:	 
	 280G Waived Amounts
	  	 	7.1(c)	  
	 AAA
	  	 	12.11(a)	  
	 Acquisition Proposal
	  	 	6.8	  
	 Aggregate Common Equity Amount
	  	 	2.8(b)	  
	 Agreement
	  	 	Preamble	  
	 Appraisal Shares
	  	 	2.10	  
	 Audited Financial Statements
	  	 	4.9(a)	  
	 Base Enterprise Value
	  	 	2.8(b)	  
	 Benefit Plans
	  	 	4.13(a)	  
	 Buyer
	  	 	Preamble	  
	 Buyer Indemnified Parties
	  	 	10.3	  
	 Buyer Non-Governmental Consents
	  	 	5.5(b)	  
	 Buyer Payments
	  	 	7.1(c)	  
	 Buyer Plans
	  	 	7.1(a)	  
	 Buyer Regulatory Approvals
	  	 	5.5(a)	  
	 Cap
	  	 	10.5(a)(i)	  
	 Certificate of Incorporation
	  	 	2.8(e)(i)	  
	 Certificate of Merger
	  	 	2.3	  
	 Claim Notice
	  	 	10.8(a)	  
	 Closing
	  	 	2.2	  
	 Closing Date
	  	 	2.2	  
	 Closing Statement
	  	 	2.11(a)	  
	 Company
	  	 	Preamble	  
	 Company Non-Governmental Consents
	  	 	4.5(b)	  
	 Company Regulatory Approvals
	  	 	4.5(a)	  
	 Company Regulatory Authorizations
	  	 	4.26(a)	  
	 Company Stock
	  	 	Recitals	  
	 Compensatory Payment Schedule
	  	 	2.8(d)	  
	 Conclusive Closing Statement
	  	 	2.11(c)	  
	 Confidential Information
	  	 	6.5(b)	  
	 Continuation Period
	  	 	7.1(a)	  
	 Continuing Employees
	  	 	7.1(a)	  
	 Covered Losses
	  	 	6.6(c)	  
	 Covered Persons
	  	 	6.6(a)	  
	 D&O Insurance
	  	 	6.6(d)	  

  
 A-1 

					
	 Deductible Amount
	  	 	10.5(a)(i)	  
	 Delaware Courts
	  	 	12.9	  
	 Direct Claim
	  	 	10.9	  
	 Disputed Items
	  	 	2.11(b)	  
	 Disqualified Individual
	  	 	7.1(c)	  
	 Effective Time
	  	 	2.3	  
	 Employment Agreements
	  	 	4.13(a)	  
	 Environmental Laws
	  	 	4.20(a)	  
	 Escrow Agent
	  	 	2.12	  
	 Escrow Agreement
	  	 	2.12	  
	 Estimated Net Funded Indebtedness
	  	 	2.8(a)	  
	 Estimated Net Working Capital
	  	 	2.8(a)	  
	 Estimated Net Working Capital Deficiency Amount
	  	 	2.8(a)	  
	 Estimated Net Working Capital Excess Amount
	  	 	2.8(a)	  
	 Estimated Transaction Related Expenses
	  	 	2.8(a)	  
	 Final Net Funded Indebtedness
	  	 	2.11(d)(ii)(D)	  
	 Final Net Working Capital Deficiency Amount
	  	 	2.11(d)(ii)(C)	  
	 Final Net Working Capital Excess Amount
	  	 	2.11(d)(ii)(B)	  
	 Final Payment Amount
	  	 	2.11(d)(ii)(A)	  
	 Final Transaction Related Expenses
	  	 	2.11(d)(ii)(E)	  
	 Financial Statements
	  	 	4.9(a)	  
	 Fully Diluted Common Holders
	  	 	2.8(b)	  
	 Fundamental Representations
	  	 	10.1(a)	  
	 Fundamental Representations of Buyer
	  	 	10.1(b)	  
	 General Escrow Account
	  	 	2.12	  
	 General Escrow Account Indemnification Payment
	  	 	10.10(a)	  
	 General Escrow Amount
	  	 	2.12	  
	 Indemnified Party
	  	 	10.5(b)	  
	 Indemnifying Party
	  	 	10.7	  
	 Insurance Policies
	  	 	4.18	  
	 Leased Real Property
	  	 	4.16(a)	  
	 Leases
	  	 	4.16(a)	  
	 Litigation
	  	 	4.10(a)	  
	 Litigations
	  	 	4.10(a)	  
	 Losses
	  	 	10.6(b)	  
	 Material Contracts
	  	 	4.15(a)	  
	 Merger
	  	 	Recitals	  
	 Merger Consideration Adjustment Amount
	  	 	2.11(d)(ii)	  
	 Merger Consideration Amount Surplus
	  	 	2.11(e)	  
	 Merger Consideration Escrow Account
	  	 	2.12	  
	 Merger Consideration Escrow Amount
	  	 	2.12	  
	 Merger Sub
	  	 	Preamble	  
	 Methotraxate
	  	 	2.13(a)	  
	 Methotrexate Milestone Payment
	  	 	2.13(a)	  
	 Methotrexate Milestone Payment Date
	  	 	2.13(a)	  
	 Methotrexate Sales Amount
	  	 	2.13(a)	  

  
 A-2 

					
	 Non-Dispute Notice
	  	 	2.11(e)(i)	  
	 Non-Governmental Consents
	  	 	5.5(b)	  
	 Organizational Documents
	  	 	4.1(b)	  
	 Outside Date
	  	 	11.1(b)	  
	 Payoff Amount
	  	 	9.2(g)	  
	 Payoff Letter
	  	 	9.2(g)	  
	 Pension Plan
	  	 	4.13(d)	  
	 Post-Closing Tax Return
	  	 	8.1(c)	  
	 Projections
	  	 	10.2(c)	  
	 Regulatory Approvals
	  	 	5.5(a)	  
	 Reserve Amount
	  	 	2.8(b)	  
	 Resolution Period
	  	 	2.11(b)	  
	 Section 262
	  	 	2.10	  
	 Seller Affiliates
	  	 	12.16	  
	 Seller Dispute Notice
	  	 	2.11(b)	  
	 Stockholder Indemnified Parties
	  	 	10.4	  
	 Stockholders
	  	 	Recitals	  
	 Stockholders’ Representative
	  	 	Preamble	  
	 Subject Party
	  	 	6.6(c)	  
	 Survival Date
	  	 	10.1(a)	  
	 Surviving Corporation
	  	 	2.1	  
	 Tax Claim Notice
	  	 	8.4	  
	 Tax Matter
	  	 	8.4	  
	 Tax Survival Date
	  	 	10.1(a)	  
	 Third-Party Claim
	  	 	10.8(a)	  
	 Top Ten Customers
	  	 	4.25(a)	  
	 Top Ten Suppliers
	  	 	4.25(b)	  
	 Treasury Stock
	  	 	2.9(b)	  
	 Unaudited Financial Statements
	  	 	4.9(a)	  

 “Accounting Principles” means the principles and calculations set forth on Schedule A.

 “Affiliate” means, with respect to any subject Person, any other Person directly or indirectly controlling, controlled
by, or under common control with, such subject Person as of the date on which, or at any time during the period for which, the determination of affiliation is being made. For purposes of this definition, the term “control” (including the
correlative meanings of the terms “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management
policies of such Person, whether through the ownership of voting securities or by contract or otherwise. 
 “Affiliated
Group” means an affiliated group as defined in Section 1504(a) of the Code (or any similar combined, consolidated, or unitary group defined under state, local or foreign income tax law). 

  
 A-3 

 “Agreed Claim” means, collectively, claims for Losses of the nature described in
Section 10.11(a)(i) or Section 10.11(a)(ii). 
 “Ancillary Agreements” shall mean the Escrow
Agreement from and after its execution. 
 “ANDA” shall mean an Abbreviated New Drug Application (as defined in and
regulated under the FDCA, as amended, and the rules and regulations promulgated thereunder), including all applications therefor, and all amendments, modifications, supplements and updates to such ANDA. 

“Books and Records” means all books, ledgers, files, reports, plans, records, documents, instruments, manuals and other
materials (in any form or medium) of, or maintained for, the applicable Person. Unless the express context otherwise requires, the term “Books and Records” means the “Books and Records” of the Company and its
Subsidiaries. 
 “Business Day” means a day other than any day on which banks are authorized or obligated by Law or
executive order to close in New York, New York. 
 “Business Partner” shall mean any Person that manufactures, develops or
distributes the Business Products pursuant to any development, commercialization, manufacturing, supply or other collaboration arrangement with the Company or any of its Subsidiaries. 

“Business Products” shall mean all products and services currently, or at any time prior to the Closing, manufactured, made,
designed, maintained, supported, developed, sold, licensed, marketed, or otherwise distributed or provided by or for the Company or any of its Subsidiaries (including all versions and releases thereof, whether already distributed or provided or
under development), together with any related materials, information or data, including, the names, numbers (e.g., part numbers) and packaging associated with such products and services. 

“Buyer’s Knowledge” means the actual knowledge, after due inquiry, of any of the following individuals: Rajiv De Silva
and Caroline B. Manogue, Esq. 
 “Closing Date Cash” means the sum of the fair market value (expressed in United States
dollars) of all cash, cash equivalents and marketable securities of any kind (including, all cash in bank accounts and cash on hand, restricted cash, cash on deposit, cash deposited with third parties) of the Company and its Subsidiaries as of 11:59
p.m., Eastern time on the Closing Date. Cash or cash equivalents received through 11:59 p.m., Eastern time, on the Closing Date (including cash in transit, such as wires or checks received through 11:59 p.m., Eastern time, on the Closing Date
in any bank accounts or lockbox accounts of the Company or any of its Subsidiaries on the Closing Date or otherwise received, or other items otherwise convertible into cash, in each case, through 11:59 p.m., Eastern time, on the Closing Date) shall
be included as Closing Date Cash. Such cash to be included in Closing Date Cash shall not include any cash, cash in transit or other items otherwise convertible into cash received by or channeled through accounts of Company or any of its
Subsidiaries solely as a result of the transactions contemplated by the Agreement. 

  
 A-4 

 “Closing Date Funded Indebtedness” shall mean, without duplication, the
obligations of the Company and its Subsidiaries outstanding and unpaid immediately prior to the Closing (excluding any undrawn amounts under credit lines or revolving (or similar) credit facilities, and excluding any indemnification or contingent
obligations not then owing) under any Funded Indebtedness. 
 “Closing Debt to be Discharged” means the Closing Date Funded
Indebtedness set forth on Schedule C. 
 “Code” means the Internal Revenue Code of 1986. 

“Common Stock” means the Class A Common Stock of the Company, par value $0.01 per share. 

“Common Stock Conversion Amount” means, in respect of each share of Common Stock (or share of Common Stock issuable upon
exercise of a Company Stock Option), the quotient obtained by dividing (i) the sum of (x) the Aggregate Common Equity Amount plus (y) the aggregate exercise price of all Company Stock Options with respect to which such payment is
required to be made by (ii) the Fully Diluted Share Number. 
 “Company Charter” means the Fourth Amended and Restated
Certificate of Incorporation of the Company, dated January 25, 2013. 
 “Company Intellectual Property Rights” means
all Intellectual Property Rights owned in whole or in part by the Company or any of its Subsidiaries. 
 “Company Stock
Option” means any outstanding stock option granted by the Company pursuant to the Amended 2004 Stock-Based Incentive Plan and the applicable award agreement thereunder or pursuant to any other Benefit Plan or Employment Agreement. 

“Company Tax Benefits” means the items (and the amounts thereof (or, to the extent such amounts are not known, good faith
estimates of such amounts)) set forth on Schedule D, provided that (i) the amount of any compensation item shall be reduced by the amount of any employer-level Taxes payable by the Company or any of its Subsidiaries in respect of such item and
(ii) on or prior to the Closing, the Company establishes through an opinion of counsel or other means reasonably satisfactory to the Buyer (which shall include the judgment, without need for a formal written opinion, of the Company’s
regular outside tax return preparers) that there is “more likely than not authority” (within the meaning of Treasury Regulations § 1.6662-4(g)(4)) that each such item in the amount set forth on Schedule D is properly deductible
by the Company or its Subsidiaries in taxable periods (or portions thereof) of the Company or its Subsidiaries ending on the Closing Date. 

“Compensatory Payment” means any payment made as a result of or in connection with the consummation of the transactions
contemplated hereby that is (i) properly treated as a compensation expense of the Company or any of its Subsidiaries for tax purposes and (ii) that is identified as a “Compensatory Payment” (a) on the
Compensatory Payment Schedule in accordance with Section 2.8(d), or (b) if such payment is required to be made after the Closing Date, in a written notice (1) that sets forth the Person to whom such Compensatory Payment is to
be made and (2) that is provided by the Stockholders’ Representative to the Person otherwise required to make such payment at least two (2) Business Days prior to the date on which such payment is required to be made. 

  
 A-5 

 “Competition/Investment Law” means any Law that is designed or intended to
prohibit, restrict or regulate foreign investment or mergers or acquisitions, antitrust, monopolization, restraint of trade or competition, including the HSR Act. 

“Confidentiality Agreement” means the confidentiality agreement between Endo Pharmaceuticals Inc. and DAVA Pharmaceuticals,
Inc., dated November 22, 2013. 
 “Contract” means any written, or legally binding oral, agreement, contract, lease,
sublease, mortgage, deed of trust, indenture, license, note, loan, franchise, option, warrant, purchase order, arrangement, letters of credit, guarantee, commitment or obligation, including all amendments, modifications and supplements. 

“DGCL” means the General Corporation Law of the State of Delaware. 

“Dollars” or “$” means the lawful currency of the United States of America. 

“Employees” means (a) each person who as of immediately prior to the Closing is an active employee of the Company or any
of its Subsidiaries, including employees on vacation or on a regularly scheduled day off from work (including for jury service or military service duty); and (b) each employee of the Company or any of its Subsidiaries who is on short-term
disability, long-term disability or leave of absence as of immediately prior to the Closing. 
 “ERISA” means the Employee
Retirement Income Security Act of 1974. 
 “ERISA Affiliate” means any trade or business, whether or not incorporated,
which together with the Company would be deemed to be a “single employer” within the meaning of Section 414 of the Code. 

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

“FDCA” means the federal Food, Drug and Cosmetic Act of 1938. 

“Final Amounts” means collectively, those amounts defined in Sections 2.11(d)(ii)(B)-(D). 

“Fundamental Survival Date” means the date that is four (4) years from the Closing Date. 

“Funded Indebtedness” means, collectively, with respect to the Company and its Subsidiaries on a consolidated basis, without
duplication, the sum of all amounts owing by the Company or any of its Subsidiaries to repay in full amounts due and terminate all obligations (other than indemnity obligations that are not owing or outstanding) with respect to (i) all
indebtedness for borrowed money of the Company or any of its Subsidiaries, and all obligations evidenced by bonds, debentures, notes or other similar instruments, (ii) all obligations under acceptance credit, letters of credit or similar
facilities, in each case to the extent drawn, (iii) all obligations under capital or direct financing leases and purchase money financing (in each case 

  
 A-6 

 
other than with respect to operating leases, trade payables, accrued expenses, current accounts and obligations incurred in the ordinary course of the applicable Person’s business),
(iv) all obligations issued or assumed as the deferred purchase price of, or a contingent payment for, property, assets, services or securities, including any deferred acquisition purchase price (but excluding trade accounts payable arising in
the ordinary course of business consistent with past practice), (v) obligations that are secured by any Lien on property owned or acquired, whether or not the obligations secured thereby have been assumed, (vi) all amounts payable to
Renovatio Pharma Ltd and Chemo Lifesciences Ltd., (vii) all amounts set forth on Schedule F classified as contingent liabilities on the most recent Financial Statements and (viii) all guarantee or keep well obligations in respect of
obligations of the kind referred to in clauses (i) through (vi) above, including, in each case, accrued and unpaid interest on any of the foregoing and any breakage costs, penalties, additional interest, premiums, fees and other costs and
expenses associated with prepayment or redemption of any of the foregoing; provided, that, none of the following obligations (nor any guarantee or keep well obligation in respect thereof) or any accrued and unpaid interest on any of the
foregoing or any breakage costs, penalties, additional interest, premiums, fees or other costs and expenses associated with the prepayment or redemption of any of the foregoing shall constitute “Funded Indebtedness”: (I) Funded
Indebtedness of the Company or any of its Subsidiaries owed to the Company or any of its Subsidiaries, or (II) Funded Indebtedness in the form of customary obligations under indemnification, non-compete, consulting, customary indemnification
obligations to purchasers in connection with dispositions or divestitures, or other similar arrangements, in each case that are not incurred in connection with indebtedness for borrowed money; provided, further that for the avoidance
of doubt, Funded Indebtedness shall exclude the amount of the Transaction Related Expenses. A schedule of Funded Indebtedness, as of the date hereof, is set forth on Schedule B. 

“Fully Diluted Share Number” means the sum of (i) the number of shares of Common Stock outstanding immediately prior to
the Effective Time (other than shares of Common Stock to be cancelled pursuant to Section 2.9(b)) and (ii) the number of shares of Common Stock issuable upon the exercise in full of the Company Stock Options outstanding immediately
prior to the Effective Time. 
 “GAAP” means United States generally accepted accounting principles, consistently applied
during the periods involved. 
 “General Survival Date” means the date that is two (2) years from the Closing Date.

 “Good Manufacturing Practices” means the then current standards for the manufacture, processing, packaging, testing,
transportation, handling and holding of drug products and components of drug products, as set forth in the FDCA, and applicable regulations and guidance promulgated thereunder, as amended from time to time, and such standards of good manufacturing
practices as are required by other organizations and Governmental Entities in any other countries, including applicable regulations or guidelines from the International Conference on Harmonisation of Technical Requirements for Registration of
Pharmaceuticals for Human Use in which the products of the Company, any Subsidiary of the Company or any Business Partner are sold or intended to be sold, to the extent such standards are not less stringent than in the United States. 

  
 A-7 

 “Governmental Authorizations” means all licenses, permits, certificates, grants,
franchises, waivers, consents and other similar authorizations or approvals issued by or obtained from a Governmental Entity or any securities exchange. 

“Governmental Entity” means any United States or foreign federal, state, provincial or local government or other political
subdivision thereof, any entity, authority or body exercising executive, legislative, judicial, regulatory or administrative functions of any such government or political subdivision, and any supranational organization of sovereign states exercising
such functions for such sovereign states. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976. 

“Intellectual Property Rights” means all intellectual property rights and rights in confidential information of any kind and
description throughout the world, including all U.S. and foreign: (i) trademarks, service marks, names, corporate names, trade names, domain names, logos, slogans, proprietary rights in trade dress and packaging and other similar designations
of source or origin, together with the goodwill associated with any of the foregoing; (ii) copyrights and copyrightable subject matter; (iii) patents, including any extensions, invention disclosures, reexaminations and reissues,
divisionals, substitutions, extensions, continuations and continuations-in-part; (iv) proprietary information including information protected by the Uniform Trade Secrets Act or similar legislation and all other confidential information, ideas,
know-how, inventions, proprietary processes, and methodologies; and (v) all registrations and applications for any of the foregoing. 

“IRS” means the U.S. Internal Revenue Service. 

“Knowledge of the Company” means the actual knowledge after due inquiry of any of the individuals set forth in Schedule K.

 “Law” means any national, federal, territorial, state, provincial, regional, county, municipal, local or foreign
constitution, law, statute, ordinance, rule, regulation, regulatory requirement, code, Order, judgment, injunction, permit, directive, ruling, decree or other requirement enacted, issued, promulgated, enforced or entered by a Governmental Entity or
securities exchange. 
 “Lien” means any charge, mortgage, pledge, security interest, lien, or encumbrance, other than
those that customarily arise under securities Laws in private transactions. 
 “Liens for Borrowed Money” means any Liens
in connection with the Closing Debt to be Discharged. 
 “Limited Transfer Liens” means (a) preemptive rights,
subscription rights, transfer restrictions, rights of first refusal or offer, and other similar restrictions set forth in the Organizational Documents of the issuer of the applicable securities; (b) restrictions on sale, transfer, assignment,
pledge or hypothecation imposed by applicable securities Laws; and (c) Liens for Borrowed Money. 

  
 A-8 

 “Losses” means any damages, losses, charges, liabilities, claims, demands,
actions, suits, judgments, settlements, awards, interest, penalties, fees, costs and expenses (including reasonable attorneys’ fees, costs and other out-of-pocket expenses incurred in investigating, preparing or defending any of the foregoing).

 “Merger Consideration” means the Base Enterprise Value plus the Methotrexate Milestone Payment (if payable). 

“Material Adverse Effect” means any change, effect, event, occurrence, state of facts or development that is materially
adverse to the financial condition or results of operations of the Company and its Subsidiaries taken as a whole; provided, however, that none of the following shall be deemed, either alone or in combination, to constitute, and none of
the following shall be taken into account in determining whether there has been a Material Adverse Effect: (a) any failure by the Company or any of its Subsidiaries to meet any internal or published projections, forecasts, or revenue or
earnings predictions, provided that the underlying causes of such exceptions shall not be excluded; (b) any adverse change, effect, event, occurrence, state of facts or development to the extent attributable to the announcement, pendency or
consummation of the transactions contemplated by this Agreement or any of the Ancillary Agreements (including any disruption in supplier, distributor, partner or similar relationships or any loss of employees) (for the avoidance of doubt, nothing in
this clause (b) shall prevent the consequences of any violation of the Company’s representations in Section 4.6 from being considered in the determination of whether a Material Adverse Effect exists); (c) any adverse
change, effect, event, occurrence, state of facts or development attributable to conditions affecting (i) the generics pharmaceutical industry or (ii) national economy; (d) any adverse change, effect, event, occurrence, state of facts
or development resulting from or relating to the forbearance by the Company from taking any action that would be in the ordinary course of business consistent with past practice but is expressly prohibited under this Agreement and is not taken
because the Buyer has withheld its consent after such consent was requested in writing by the Stockholders’ Representative (for the avoidance of doubt, nothing in this clause (d) shall excuse the consequences of any violation of the
Company’s representations in Section 4.6 from being considered as having a Material Adverse Effect); (e) any adverse change, effect, event, occurrence, state of facts or development arising from or relating to any change in
accounting requirements or principles or any change in any Laws, or the interpretation or enforcement thereof; (f) any adverse change, effect, event, occurrence, state of facts or development arising in connection with natural disasters or acts
of nature, hostilities, acts of war, sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities, acts of war, sabotage or terrorism or military actions existing or underway as of the date hereof; or
(g) any change in political regimes, conditions or climate whether in the United States or any other country or jurisdiction; provided, that the exceptions above shall apply only to the extent such change, effect, event, occurrence,
state of facts or development referred to in such exception does not have a disproportionate impact on the Company and its Subsidiaries, taken as a whole, relative to other Persons operating in the industries in which the Company and its
Subsidiaries operate. References in this Agreement to Dollar amount thresholds shall not be deemed to be evidence of a Material Adverse Effect or materiality. 

“Net Funded Indebtedness” means the amount equal to Closing Date Funded Indebtedness minus Closing Date Cash. 

  
 A-9 

 “Net Working Capital” has the meaning set forth in Schedule A. 

“Neutral Arbitrator” means BDO USA, LLP or any other independent accounting firm as Buyer and the Stockholders’
Representative may agree. 
 “Order” means any order, writ, judgment, injunction, decree, stipulation, determination or
award entered by or with any Governmental Entity. 
 “Permitted Liens” means (a) Liens that secure obligations
reflected as liabilities in any Financial Statements and any other Liens reflected or reserved against or otherwise disclosed in the balance sheet that is a part of the Unaudited Financial Statements, (b) landlords’, lessors’,
mechanics’, materialmen’s, warehousemen’s, carriers’, workers’, or repairmen’s Liens or other similar Liens arising or incurred in the ordinary course of business, (c) Liens for Taxes, assessments and other
governmental charges not yet due and payable or being contested in good faith by appropriate Litigations for which adequate reserves have been established in accordance with GAAP, (d) Liens created by this Agreement or any of the Ancillary
Agreements, or in connection with the transactions contemplated hereby by Buyer, (e) Limited Transfer Liens, and any other Liens on assets that do not, individually or in the aggregate, materially affect the value of, or materially impair the
existing use of, such asset in the ordinary course of business consistent with past practices of the Company or any of its Subsidiaries. 

“Person” means an individual, a corporation, a partnership, an association, a limited liability company, a Governmental
Entity, a trust or other entity or organization. 
 “Pre-Closing Tax Period” means (a) any taxable period ending on or
prior to the Closing Date and (b) in the case of a Straddle Period, the portion of such period up to and including the Closing Date. 

“Preferred Stock” means the preferred stock of the Company, par value of $0.01 per share. 

“Regulatory Authority” shall mean the FDA or any counterparty of the FDA outside the United States (e.g. the European
Medicines Agency), or any other supranational (e.g., the European Commission, the European Chemicals Agency, the Counsel of the European Union or the European Agency for the Evaluation of Medical Products), national, regional, federal, state,
provincial or local regulatory agency department, bureau, commission, counsel or other Governmental Entity, regulating or otherwise exercising authority over the research, development, clinical testing, manufacture, distribution, import, export,
marketing, storage, transportation, use or sale of the products of the Company. 
 “Regulatory Authorizations” shall mean
all pending or complete approvals, clearances, authorizations, registrations, certifications, licenses and permits granted by any Regulatory Authority. 

“Representative” or “Representatives” means, with respect to a particular Person, any director, member,
limited or general partner, equity holder, officer, employee, agent, consultant, advisor or other representative of such Person, including outside legal counsel, accountants and financial advisors. 

  
 A-10 

 “Stockholder Consent” means an irrevocable stockholder written consent, the form
of which is attached hereto as Exhibit B. 
 “Stockholders Agreement” means the Stockholders Agreement, dated as of
July 28, 2004, by and among the Company and the other parties thereto, as amended and supplemented by the Amendment and Joinder to Stockholders’ Agreement dated July 21, 2006, and the Second Amendment and Joinder to the
Stockholders’ Agreement dated December 22, 2008. 
 “Stockholder’s Knowledge” means the actual knowledge
after due inquiry of a Stockholder. 
 “Stockholder Indemnifiable Losses” mean Losses resulting from a breach of a
Fundamental Representation under Section 10.3, Losses in respect of Appraisal Shares which are indemnifiable under Section 10.3(d), Losses in respect of Schedule F liabilities which are indemnifiable under
Section 10.3(e) and Losses in respect of claims pursuant to Article X for fraud by the Stockholders. 

“Stockholder Tax Indemnity” shall mean the Stockholder tax indemnification obligations under Section 8.3. 

“Straddle Period” means a taxable period which includes but does not end on the Closing Date. 

“Subsidiary” means with respect to any Person, any corporation, limited liability company, partnership, association, or other
business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees thereof is at the
time owned or controlled, directly or indirectly, by that Person or one or more of the other subsidiaries of that Person or a combination thereof or (ii) if a limited liability company, partnership, association, or other business entity (other
than a corporation), a majority of partnership or other similar ownership interests thereof having the power to govern or elect members of the applicable governing body of such entity is at the time owned or controlled, directly or indirectly, by
that Person or one or more subsidiaries of that Person or a combination thereof; and the term “Subsidiary” with respect to any Person shall include all subsidiaries of each subsidiary of such Person. 

“Tax Returns” means any and all returns, amended returns, declarations, claims for refund, information returns or statements,
reports, and forms relating to Taxes filed or required to be filed with any Taxing Authority (including any schedule or attachment thereto), including any amendment thereof and any copy thereof required by Law to be maintained or provided to other
Persons. 
 “Taxes” means any taxes of any kind, including but not limited to any and all federal, state, local and foreign
income, gross receipts, margin, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, branch, profits, license, withholding, payroll, social security,
unemployment, disability, ad valorem, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other similar taxes, duties or imposts, (in

  
 A-11 

 
each case, together with any and all penalties and additions to tax or additional amounts imposed with respect thereto or with respect to any obligation to file a Tax Return, and any interest on
any of the foregoing) imposed by any Governmental Authority. 
 “Taxing Authority” means any Governmental Entity
responsible for the imposition of any Tax (foreign or domestic). 
 “Transaction Related Expenses” means (i) all
costs, fees and expenses incurred by the Company in connection with the arrangements entered into by the Company prior to the Closing that are related to this Agreement, (including the Merger), including investment banking, attorney and other
professional fees; (ii) any stay, retention, and other similar bonuses, other than (a) any such bonuses implemented by the buyer, and (b) compensation payable solely upon the consummation of the transactions contemplated by this
Agreement and (iii) any severance, termination and other payments payable by the Company or any of its Subsidiaries to the individuals set forth on Schedule T in connection with the Closing or transactions contemplated hereby and any
taxes or other liabilities of the Company or its Subsidiaries incurred in connection with the payment thereof, in the case of clauses (i), (ii) and (iii) to the extent not paid by the Company prior to the Closing Date; provided,
that for the avoidance of doubt, Transaction Related Expenses shall exclude the amount of the (a) Funded Indebtedness and (b) any amounts paid by the Company prior to the Closing Date in respect of the items (i)-(iii). 

“Transfer Taxes” means all local, foreign or other excise, sales, use, value added, transfer (including real property
transfer or gains), stamp, documentary, filing, recordation and other similar taxes and fees that may be imposed or assessed as a result of the execution of this Agreement or the Ancillary Agreements, together with any inflation adjustment,
interest, additions or penalties with respect thereto. 
 “WARN Act” means the Worker Adjustment and Retraining
Notification Act of 1988 and any similar state or local Law requiring notice to employees in the event of a plant closing or layoff. 

  
 A-12 

 EXHIBIT A 

Certificate of Incorporation for the Surviving Corporation 

 EXHIBIT B 

Form of Irrevocable Stockholder Consent 

 EXHIBIT C 

Form of Non-Compete Agreement for the Chairman 

 EXHIBIT D 

Form of Non-Compete Agreement for the Chief Operating Officerex10_1.htm

[Pursuant to 17 C.F.R. 240.24b-2, confidential information has been omitted in places marked “[...***...]” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application.]

 

RESEARCH AND DEVELOPMENT AGREEMENT

 

THIS RESEARCH AND DEVELOPMENT  AGREEMENT (this “Agreement”), dated as of March 19, 2014 (the “Effective Date”), is made and entered into by and between BioRestorative Therapies, Inc., a Nevada corporation (“BRT”), and Rohto Pharmaceutical Co., Ltd., a Japanese corporation (“Rohto”) (collectively the “Parties” or individually a “Party”).

 

PRELIMINARY STATEMENTS

 

1.           BRT has expertise in the field of stem cell biotechnology, and in particular with regard to [...***...].

 

2.           Rohto is a well known pharmaceutical company in Japan which develops new technology at medical and cosmetic businesses and [...***...] and seeks to use such materials for development of stem cell biotechnology.

 

3.           Rohto desires to engage BRT to examine and research [...***...] owned by BRT, to develop [...***...] for use by Rohto and to produce [...***...]  BRT agrees to perform such services, subject to the terms and conditions hereof, and provide to Rohto [...***...].

 

NOW, THEREFORE, in consideration of the various promises and undertakings set forth herein, the Parties agree as follows:

 

ARTICLE I

 

OBJECTIVE AND ENGAGEMENT

 

1.01 Objective.  The objective of Rohto’s engagement of BRT in this Agreement is, subject to the terms and conditions hereof, to develop [...***...] to be derived from [...***...]  The Parties agree that the goal of this Agreement is, subject to the terms and conditions hereof, to [...***...] derived from each of [...***...] provided by BRT or Rohto for such purposes.

 

1.02 Engagement.  Subject to the terms and conditions of this Agreement, Rohto agrees to engage BRT to conduct the Research Program (as defined hereinafter), and BRT agrees to conduct the Research Program.

 

 

[...***...]  Confidential information has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to this omitted information.

  

  

 

ARTICLE II

 

RESEARCH PROGRAM

 

2.01           Rohto’s Supply of Materials.  Rohto shall provide to BRT [...***...] in amounts as reasonably necessary to conduct the Research Program and as required by BRT from time to time. [...***...] will be provided [...***...] to BRT.

 

2.02           BRT’s Responsibility.  (a) BRT shall examine and research [...***...] (as defined in this Section 2.02) with the goal of [...***...] obtained from each of [...***...] (for clarity, only [...***...] and only [...***...] is to be supplied to Rohto) supplied by BRT using [...***...], and determining whether [...***...]  It is understood that [...***...] presently used by BRT [...***...] Thereupon, BRT shall seek to develop [...***...] for the above purpose [...***...], if necessary, and develop a [...***...] (the “Research Program”).  BRT shall provide [...***...] during the Term (as hereinafter defined) [...***...] to Rohto. The Research Program is detailed in Exhibit A attached hereto. BRT agrees that, except as otherwise provided for in this Agreement, it will [...***...] only for the Research Program and not for any other purpose.

 

           (b)  With respect to the shipping of biological material between BRT and Rohto, each Party that ships biological material will do so in accordance with applicable international law and the respective laws of the jurisdictions from which and to which the materials are shipped.  The cost of shipping and insurance will be the responsibility of the shipper.

 

2.03           Rohto’s Responsibility.  Rohto shall pay BRT two hundred fifty thousand United States dollars (US $250,000) as the fee for the Research Program (the “Fee”). The Fee will be paid by wire as follows:

 

(a)           one hundred fifty thousand United States dollars (US $150,000) on the Effective Date;

 

(b)           fifty thousand United States dollars (US $50,000) within ten (10) days following the completion of Workstream 1 (as detailed in the Research Program) and the commencement of Item 2 of Workstream 2 of the Research Program [...***...]; and

 

(c)           fifty thousand United States dollars (US $50,000) (the “Final Installment”) within ten (10) days following Rohto’s receipt of the final written report by BRT regarding the outcome of the Research Program (the “Final Report”).

 

2.04           Periodic Meetings.  The Parties agree to meet by telephone or other electronic means on a quarterly basis and for BRT to report in writing to Rohto on the progress of the Research Program in a timely manner.  The Parties will meet in such manner more frequently as needed.  In the event that BRT makes a discovery during the Research Program that it considers to be a breakthrough in research, it shall call for a meeting with Rohto by telephone or other electronic means to discuss such findings immediately and after the meeting BRT shall report the breakthrough and discussion between the Parties in writing in a timely manner.  In the event the Parties determine that the details of the Research Program are to be amended, the Parties will make such amendment in written form and attach it to this Agreement as an amended Exhibit A and will modify the Fee to reflect any additional services to be provided by BRT. Any travel expenses for any meetings in the United States with regard to the training of Rohto employees will be borne by Rohto; provided, however, BRT shall obtain the prior written consent by Rohto for such expense.

 

  

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

  

  

 

ARTICLE III

 

EXCHANGE OF INFORMATION, CONFIDENTIALITY, AND OUTCOME

 

3.01           Exchange of Information.  The Parties shall exchange all information as follows:

 

(a)           BRT shall disclose to Rohto [...***...] to Rohto and will provide to Rohto [...***...] within thirty (30) days from the Effective Date.

 

(b)           Rohto shall disclose to BRT [...***...] and will provide to BRT [...***...] within thirty (30) days from the Effective Date.

 

3.02           Final Report.  (a) The Final Report shall include, without limitation, the following: [...***...] and other pertinent information in detail, and [...***...].

 

(b)  BRT shall deliver the Final Report to Rohto during the Term.  If BRT determines that a certain extension of the Term is necessary in order to deliver the Final Report, it shall make a request to Rohto for such extension of the Term at least thirty (30) days before the expiration of the Term.  Rohto shall respond to BRT’s request within seven (7) days of its receipt of BRT’s request.  Rohto’s determination with regard to an extension of the Term shall not be unreasonably withheld.  In the event that Rohto agrees to such extension, BRT may deliver the Final Report within such extended Term.  If Rohto does not agree to such extension, BRT shall deliver the Final Report within the Term.

 

3.03           Confidentiality.  The provisions of the Mutual Nondisclosure Agreement, of even date, attached hereto as Exhibit B, between the Parties (the “Nondisclosure Agreement”) shall continue in full force and effect during the Term and for a period of [...***...] thereafter.

 

ARTICLE IV

 

TERM; TERMINATION

 

4.01           Term.  This Agreement shall commence as of the Effective Date and, unless sooner terminated or extended as provided hereunder, shall end one (1) year from the Effective Date (the "Term").  The Term and the scope of this Agreement may be extended and expanded by mutual written agreement.

 

4.02           Breach.  The failure by either Party to comply with any of the material obligations contained in this Agreement shall entitle the other Party to give to the defaulting Party a default notice specifying the nature of the default and requiring it to cure such default.  If such default is not cured within thirty (30) days after the receipt of such notice (or, if such default cannot be cured within such thirty (30) day period, or if the Party in default does not commence and diligently continue actions to cure such default), the notifying Party shall be entitled to terminate this Agreement immediately by written notice.  Rohto agrees that the obligation to pay each installment of the Fee when due is a material obligation.  Any termination by BRT of this Agreement as a result of a breach by Rohto, as provided for above, shall not release Rohto of its obligations to pay the Final Installment, which installment shall be due and payable upon such termination subject to the delivery of a report which reflects BRT’s progress with regard to the Research Program until the date on which Rohto’s breach occurred.

 

  

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

  

  

4.03           Surviving Rights.  The Parties' obligations under the Nondisclosure Agreement shall survive  the expiration or termination of this Agreement.

 

ARTICLE V

 

INVENTIONS AND TECHNOLOGIES

 

5.01           Ownership of Outcome.  [...***...].

 

5.02           License.  (a) [...***...].

 

(b)  [...***...].

 

ARTICLE VI

 

REPRESENTATIONS, WARRANTIES AND COVENANTS

6.01           Representations, Warranties and Covenants.  Each Party hereby represents and warrants to, and covenants with, the other Party as follows:

 

(a)            It is a company or corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, and has full corporate power and authority and the legal right to own and operate its property and assets and to carry on its business as it is now being conducted and as contemplated in this Agreement.

 

(b)            As of the Effective Date, (i) it has the corporate power and authority and the legal right to enter into this Agreement and perform its obligations hereunder; (ii) it has taken all necessary corporate action on its part required to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder; and (iii) this Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid and binding obligation of such Party that is enforceable against it in accordance with its terms.

 

(c)            It has not entered, and shall not enter, into any agreement with any third party that is in conflict with the rights granted to the other Party under this Agreement, and has not taken and shall not take any action that would in any way prevent it from granting the rights granted to the other Party under this Agreement, or that would otherwise materially conflict with or adversely affect the rights granted to the other Party under this Agreement.  Its performance and execution of this Agreement does not and will not result in a breach of any other contract to which it is a party.

  

 

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

 

 

 

 

ARTICLE VII

 

MISCELLANEOUS PROVISIONS

 

7.01             Relationship of Parties. Nothing in this Agreement is intended or shall be deemed to constitute a partnership, agency, employer-employee or joint venture relationship between the Parties.  Neither Party shall incur any debts or make any commitments for the other, except to the extent, if at all, specifically provided herein.

7.02             Assignment.  Except as otherwise provided herein, neither this Agreement nor any interest hereunder shall be assignable by either Party without the prior written consent of the other Party.

7.03             Publication.  BRT may not publish or otherwise publicly disclose (including, without limitation, in abstracts, presentations, meetings or seminars), either in writing or orally, the results of studies on materials obtained from, or produced in collaboration with, Rohto unless Rohto, in its sole discretion, agrees in writing to such publication and the content thereof. Rohto may publish or otherwise publicly disclose (including, without limitation, in abstracts, presentations, meetings or seminars), either in writing or orally, the results of studies on materials obtained from, or produced in collaboration with BRT, without any consent of BRT unless any BRT confidential, proprietary or patentable information is included in the publication with BRT. If Rohto’s publication or disclosure includes any BRT confidential, proprietary or patentable information, Rohto shall not publish or otherwise publicly disclose any such information without the prior written consent of BRT. At least thirty (30) days prior to any such proposed publication or disclosure, Rohto will provide to BRT a copy of the proposed document for publication or disclosure so that BRT may determine that no BRT confidential, proprietary or patentable information is included.

7.04           Announcements.  Neither Party shall have the right to make any public announcement or other disclosure with respect to this Agreement, nor disclose the terms of this Agreement, without the prior written consent of the other Party, except as follows:

 

(a)           each Party may disclose the terms of this Agreement to the extent such disclosure is required by law (including without limitation by the rules and regulations of the Securities and Exchange Commission, any securities exchange or NASDAQ) or to defend or prosecute litigation or arbitration; provided, that, prior to such disclosure, to the extent permitted by law or such rules and regulations, such disclosing Party notifies the other Party of such requirement and the disclosing Party furnishes only those terms of this Agreement that the disclosing Party is legally required to furnish.

(b)           each Party  may disclose this Agreement to its (i) then-current and potential third party licensees and sublicensees, and (ii) then-current and potential directors, investors, lenders and acquirers; provided, that such persons are bound to maintain the confidentiality of this Agreement to the same extent as if they were parties hereto.

(c)           each Party shall have the right to issue a press release in the form of Exhibit C attached hereto upon the signing of this Agreement.

 

 

 

  

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

  

  

7.05             Arbitration.  In the event of any controversy or claim arising out of or relating to this Agreement, or the performance or breach thereof, which the Parties cannot amicably resolve, the Parties agree to submit the matter for resolution under the Rules of Arbitration of the International Chamber of Commerce to be decided by one or more arbitrators appointed in accordance with the said Rules. Said arbitration will be held in New York, New York. The award of the arbitrator(s) shall be final and judgment upon such an award may be entered in any competent court or application may be made to any competent court for juridical acceptance of such an award and order of enforcement.

7.06             Sharing of Information. BRT and Rohto shall keep each other currently informed of relevant progress, plans and information concerning the development, manufacture, and use of cell lines, components and processes to the extent that they directly arise from the Research Program during the Term.

7.07             No Trademark Rights.  Except as otherwise provided herein, no right, express or implied, is granted by this Agreement to use in any manner the name “BRT” or “Rohto” or any other trade name or trademark of the other Party in connection with the performance of this Agreement.

7.08             Notices.  All notices and other communications hereunder shall be in writing, in English, and shall be deemed given if delivered personally or by facsimile transmission (receipt verified), telexed, mailed by registered or certified mail (return receipt requested), postage prepaid, or sent by an international express courier service of similar stature, to the Parties at the following addresses (or at such other address for a Party as shall be specified by like notice; provided, that notices of a change or address shall be effective only upon receipt thereof):

If to BRT addressed to:

555 Heritage Drive

Jupiter, Florida  33458

United States

Attention:  Mark Weinreb, CEO

If to Rohto, addressed to:

Rohto Pharmaceutical Co., Ltd

1-8-1, Tatsumi-nishi, Ikuno-ku,

Osaka 544-8666, Japan

Attention: Tetsumasa Yamada

7.09             Amendment. No amendment, modification or supplement of any provision of this Agreement shall be valid or effective unless made in writing and signed by a duly authorized officer of each Party.

  

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

  

  

 

7.10             Waiver. No provision of this Agreement shall be waived by any act, omission or knowledge of a Party or its agents or employees except by an instrument in writing expressly waiving such provision and signed by the waiving Party.

7.11             Counterparts. This Agreement may be executed simultaneously in two counterparts, either one of which need not contain the signature of more than one Party but both such counterparts taken together shall constitute one and the same agreement.

7.12             Descriptive Headings. The descriptive headings of this Agreement are for convenience only, and shall be of no force or effect in construing or interpreting any of the provisions of this Agreement.

7.13             Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York, applicable to contracts executed and performed wholly within the State of New York.

7.14             Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.

7.15             Entire Agreement of the Parties. This Agreement, together with the Nondisclosure Agreement, constitutes and contains the entire understanding and agreement of the Parties and cancels and supersedes any and all prior negotiations, correspondence, understandings and agreements, whether oral or written, between the Parties respecting the subject matter hereof.

7.16           Uncontrollable Forces.  Neither Party shall be considered to be in default of this Agreement if delays in or failure of performance shall be due to uncontrollable forces the effect of which, by the exercise of reasonable diligence, such Party could not avoid.  The term “uncontrollable forces” shall mean any event which results in the prevention or delay of performance by BRT of its obligations under this Agreement and which is beyond the control of such Party.  It includes, but is not limited to, fire, flood, earthquakes, storms, lightning, epidemic, war, riot, civil disturbance, sabotage, inability to procure permits, licenses, or authorizations from any state, local, or federal agency or person for any of the supplies, materials, accesses, or services required to be provided by either Rohto or BRT under this Agreement, strikes, work slowdowns or other labor disturbances, and judicial restraint.

 

7.17           Facsimile or Email Signatures.  Signatures hereon which are transmitted via facsimile or email shall be deemed original signatures

 

[Remainder of page intentionally left blank.  Signature page follows.]

  

  

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

  

  

IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed by its duly authorized officer as of the day and year first above written.

	
  

	
BIORESTORATIVE THERAPIES, INC.

	
  

	
By: ________________________

	
  

	 	 

	
  

	
ROHTO PHARMACEUTICAL CO., LTD

	
  

	
By: ________________________

	
  

	 	 

 

 

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

 

 

 

Exhibit  A

 

Research Program

 

[...***...]

 

[...***...]  Confidential information has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to this omitted information.  A total of four pages have been redacted from Exhibit A.

  

  

 

Exhibit B

 

Mutual Nondisclosure Agreement

 

 

MUTUAL NONDISCLOSURE AGREEMENT

 

AGREEMENT, made this __ day of March, 2014, between BIORESTORATIVE THERAPIES, INC., a Nevada corporation, and ROHTO PHARMACEUTICAL CO., LTD., a Japanese corporation.

 

WHEREAS, the above parties are engaged in discussions concerning a possible business transaction between them; and

 

WHEREAS, in order to facilitate such discussions, certain Confidential Information (as hereinafter defined) may be disclosed between the parties.

 

NOW, THEREFORE, it is agreed:

 

1. Obligations.  This Agreement will confirm the understanding between the parties concerning the mutual obligations of confidentiality with respect to Confidential Information furnished pursuant to this Agreement.

 

2. Definition of Confidential Information.  As used in this Agreement, the term “Confidential Information” shall mean all communications, documents and other information, whether in written, oral, printed, electronic, machine readable, or other form, which a disclosing party furnishes to a receiving party with respect to itself and/or its subsidiaries and affiliates, regardless of the manner in which it is furnished and shall include all information acquired by observation or otherwise during any site visit at a disclosing party’s facility.  “Confidential Information” shall include, but not be limited to, product plans, designs, market research and analysis, costs, customer and supplier lists, strategies, forecasts, computer programs, technical data, know-how, trade secrets, discoveries, inventions and any other intellectual property (whether or not patented), all other information disclosed by one party to the other pursuant to this Agreement, and any and all analyses, compilations and other materials prepared by the receiving party or any of its officers, directors, employees, representatives or agents (collectively, “Representatives”) containing or based in whole or in part on any such information furnished by the disclosing party or its Representatives or otherwise obtained by the receiving party or its Representatives.

 

3. Confidentiality.  The parties acknowledge that each party considers the Confidential Information it discloses to be proprietary and confidential.  The Confidential Information will be kept confidential, will be used solely in connection with the evaluation of the proposed business transaction and will not, without the prior written consent of the disclosing party, be used or disclosed, directly or indirectly, in any manner whatsoever, in whole or in part.  The receiving party agrees to exercise the same degree of care, but not less than a reasonable degree of care, to preserve the confidentiality of the Confidential Information that it exercises with respect to its own confidential information.  Without limiting the generality of the foregoing, the receiving party shall not use any Confidential Information for the purpose of effectuating a purchase or sale of the securities of the disclosing party.  In addition, neither party will disclose to any person or entity the fact that this Agreement has been entered into, that Confidential Information has been provided under this Agreement, that discussions or negotiations are taking place or have taken place concerning a possible transaction between the parties, or any of the terms, conditions or other facts with respect to any such discussions or possible transaction, including the status thereof, except as required by law or regulation.

 

  

 

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

 

 

 

4. Disclosure to Representatives.  Each party agrees that a receiving party may disclose Confidential Information or portions thereof to those of its Representatives who need to know such Confidential Information for the purpose of evaluating a possible transaction between the parties.  Prior to disclosing any Confidential Information to any Representative, the receiving party will inform such Representative of the confidential nature of the Confidential Information.  The receiving party agrees to be responsible for any breach of this Agreement by its Representatives.

 

5. Protective Order.  Notwithstanding any provision in this Agreement to the contrary, a receiving party may disclose Confidential Information or portions thereof to the extent required to comply with an order issued by a court or governmental agency of competent jurisdiction; provided, however, that, prior to disclosing any Confidential Information pursuant to an order of such court or governmental agency, the receiving party shall give the disclosing party prompt notice so that it may seek, in its sole discretion, a protective order or other appropriate remedy.  In the event that such protective order or other remedy is not obtained, or the disclosing party waives compliance with the provisions of this Agreement, only that portion of the Confidential Information which is legally required to be disclosed will be furnished.

 

6. Exceptions.  The obligations imposed upon the parties herein shall not apply to information:

 

	
a.  

	
which is publicly available prior to the date hereof; or

 

	
b.  

	
which hereafter becomes available to the public through no wrongful act of the receiving party; or

 

	
c.  

	
which was already in the possession of the receiving party at the time of disclosure and not subject to an existing agreement of confidence between the parties; or

 

	
d.  

	
which is received from a third party without restriction, not in violation of an agreement of confidence and without breach of this Agreement.

 

7. Ownership of Confidential Information and Derivatives. All Confidential Information and any Derivatives (as hereinafter defined) thereof remain the property of the party which created the Confidential Information and no license or other rights to Confidential Information is granted or implied hereby. For purposes of this Agreement, “Derivatives” shall mean: (i) for copyrightable or copyrighted material, any translation, abridgment, revision or other form in which an existing work may be recast, transformed or adapted; (ii) for patentable or patented material, any improvement thereon; and (iii) for material which is protected by trade secret, any new material derived from such existing trade secret material, including new material which may be protected by copyright, patent and/or trade secret.

 

  

 

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

 

 

 

8. No Warranties or Representations as to Confidential Information.  Each of the parties acknowledges that neither makes any express or implied representation or warranty as to the accuracy or completeness of the Confidential Information, and neither party shall have any liability to the other party or any of its Representatives relating to or arising from its or their use of any Confidential Information or for any errors therein or omissions therefrom.

 

9. Return of Information.  All Confidential Information furnished by one party to the other is considered loaned for use solely in connection with the proposed business transaction, and shall be returned by the receiving party to the disclosing party upon request by the disclosing party.  The receiving party shall certify that it has destroyed or returned all copies of the Confidential Information in its possession.

 

10. Need for Definitive Agreement.  Each of the parties agrees that, unless and until a definitive written agreement between the parties with respect to a business transaction has been executed and delivered, neither party will be under any obligation of any kind whatsoever with respect thereto by virtue of this or any written or oral expression concerning such a transaction, except, in the case of this Agreement, for the matters specifically agreed to herein.

 

11. Equitable Relief.  Each party acknowledges and agrees that, in the event of any breach or threatened breach of any provision of this Agreement, the disclosing party will be without an adequate remedy at law and, accordingly, shall be entitled to enforce such provisions by temporary or permanent injunctive or mandatory relief obtained in an action or proceeding instituted in any court of competent jurisdiction without the necessity of proving damages or posting any bond or other security and without prejudice to any other rights or remedies which it may have at law or in equity.

 

12. Applicable Law.  This Agreement shall be construed and interpreted in accordance with the laws of the State of New York, applicable to agreements performed solely within the State of New York.

 

13. Arbitration.  In the event of any controversy or claim arising out of or relating to this Agreement, or the performance or breach thereof, which the parties cannot amicably resolve, the parties agree to submit the matter for resolution under the Rules of Arbitration of the International Chamber of Commerce to be decided by one or more arbitrators appointed in accordance with the said Rules. Said arbitration will be held in New York, New York.  The award of the arbitrator(s) shall be final and judgment upon such an award may be entered in any competent court or application may be made to any competent court for juridical acceptance of such an award and order of enforcement.

 

14. Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, arrangements and understandings relating thereto.

  

 

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

 

 

 

 

15. Amendments; Waivers.  This Agreement may be amended only by a written instrument executed by each party or, in the case of a waiver, by the disclosing party.  The failure of the disclosing party at any time or times to require performance of any provision hereof shall in no manner affect its right at a later time to enforce such provision or any other provision.  No waiver by the disclosing party of the breach of any term contained herein, whether by conduct or otherwise, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such breach or the breach of any other term of this Agreement.

 

16. Notices.  Any notices sent to the parties pursuant to the terms of this Agreement shall be hand delivered, transmitted by fax to the number set forth on the signature page hereof or mailed by certified mail, return receipt requested, or overnight courier to the address set forth on the signature page hereof, to the attention of the undersigned Representative of the party.

 

17. Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto.

 

18. Severability.  Any term or provision of this Agreement which is prohibited or held invalid  or unenforceable in any jurisdiction shall, as to such jurisdiction only, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

19. Counterparts; Facsimile and Email Signatures.  This Agreement may be executed in separate counterparts, each of which counterparts shall be deemed an original and all of which counterparts shall together constitute one and the same agreement.  Facsimile and email signatures shall be deemed to be original signatures.

 

20. Communications.  Each party agrees that any and all communications by it or its Representatives regarding the provision of or access to Confidential Information, and any and all discussions by it or its Representatives with respect to the proposed business transaction, shall be conducted solely with the undersigned Representative of the other party, unless otherwise authorized by such person on behalf of such other party.

 

21. Representation by Counsel; Interpretation.   The parties acknowledge that they have been represented by counsel, or afforded the opportunity to be represented by counsel, in connection with this Agreement. Accordingly, any rule or law or any legal decision that would require the interpretation of any claimed ambiguities in this Agreement against the party that drafted it has no application and is expressly waived by the parties.  The provisions of this Agreement shall be interpreted in a reasonable manner to give effect to the intent of the parties hereto.

 

{Remainder of page intentionally left blank.  Signature page follows.}

  

 

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

 

 

 

 

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

	 	BIORESTORATIVE THERAPIES, INC.	 
	 	 	 	 
	 	
By: 

	/s/ 	 
	 	 	Mark Weinreb 	 
	 	 	Chief Executive Officer 	 
	 	 	 	 
	 	
555 Heritage Drive, Suite 130

Jupiter, Florida 33458

Fax Number: (561) 429-5684

	 

  

	 	ROHTO PHARMACEUTICAL CO., LTD.	 
	 	 	 	 
	
  

	
By: 

	/s/ 	 
	 	 	Name: Tetsumasa Yamada	 
	 	 	Title: Head of Regenerative Medicine Research and Planning Division	 
	 	 	 	 
	 	
1-8-1, Tatsumi-nishi, Ikuno-ku,

Osaka 544-8666, Japan

Fax Number: (813)-6832-6024

	 

 

 

  

[...***...] Confidential information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to this omitted information.

  

  

 

Exhibit C

 

Press Release

 

[to be finalized by the Parties]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[...***...]  Confidential information has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to this omitted information.

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