Document:

The York Water Company DEFERRED COMPENSATION PLAN

      FOR EMPLOYEES INELIGIBLE FOR THE DEFINED BENEFIT PENSION PLAN

      (Effective January 1, 2016)

       

        

       

        

       

        

       

        

      
        
          

      

      

      

      RECITALS

      

      

      THIS DEFERRED COMPENSATION PLAN (the “Plan”) is hereby adopted as of the 1st day of January, 2016, by The York Water Company, a corporation organized and existing under the laws of the Commonwealth of Pennsylvania
          (the “Plan Sponsor”).

      

      

      WHEREAS, the Plan Sponsor adopt and establish a non-tax qualified plan of deferred compensation to provide additional retirement benefits for a select group of management and highly compensated employees; and

      

      

      WHEREAS,
          the Plan Sponsor shall permit otherwise eligible employees who are Participants in any other York Water Company deferred compensation plan to terminate their participation in said plan and become a Participant in this Plan, including
          Account Balances from the prior plan, the Deferred Compensation Plan for Employees not Eligible for a Defined Benefit Pension Plan.

      

      

      WHEREAS, effective as of January 1, 2016, the Plan Sponsor intends that the Plan shall at all times be administered and interpreted in such a manner as to constitute an unfunded nonqualified deferred compensation plan
          for tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). This Plan is not intended to qualify for favorable tax treatment pursuant to Section 401(a) of the Internal Revenue Code of
          1986, as amended (the “Code”), or any successor section or statute. This Plan is intended to comply with the requirements of Section 409A of the Code and the Treasury Regulations (as defined below) or any other authoritative guidance issued under
          that section.

      

      

      NOW, THEREFORE, the Plan Sponsor hereby adopts the following Deferred Compensation Plan.

      

      

      ARTICLE 1.

      Definitions

      

      

      For the purpose of this Plan, unless otherwise clearly apparent from the context,
          the following phrases or terms shall have the following indicated meanings:

      

      

      
        	
                1.1

              	
                “Account or
                      Accounts” shall mean a book account reflecting amounts credited to a Participant’s Separation From Service Account, Scheduled Withdrawal Account(s) and Plan Sponsor Contribution Account, as adjusted for deemed investment
                    performance and all distributions or withdrawals made by the Participant or his or her Beneficiary. To the extent that it is considered necessary or appropriate, the Plan Administrator shall maintain separate sub- accounts for each
                    source of contribution under the Plan or shall otherwise provide a means for determining that portion of an Account attributable to each contribution source.

              

      

      

      

      
        	
                1.2

              	
                “Affiliate”
                    shall mean any business entity other than the Plan Sponsor that is a member of a controlled group of corporations, within the meaning of Section 414(b) of the Code, of which the Plan Sponsor is a member; all other trade or business
                    (whether or not incorporated) under common control, within the meaning of Section 414(c) of the Code, with the Plan Sponsor; any service organization other than the Plan Sponsor that is a member of an Affiliated service group, within
                    the meaning of Section 414(m) of the Code, of which the Plan

              

      

      
        
          

      

      

      

      Sponsor is a member; and any other organization that is required to be aggregated with the Plan
          Sponsor under Section 414(o) of the Code and whose Eligible Employees are authorized to participate in this Plan by the Plan Administrator.

      

      

      
        	
                1.3

              	
                “Annual
                      Deferral Percentage” shall mean that portion of a Participant’s Base Salary that a Participant elects to defer under the plan during any Plan Year. The Participant may elect to defer between zero (0) and five (5) percent of his
                    or her Base Salary as of January 1 of each Plan Year. The annual deferral percentage may not be changed during the Plan Year.

              

      

      

      

      
        	
                1.4

              	
                “Annual
                      Deferral Percentage Election” shall mean that annual percentage, between zero (0) percent and five (5) percent of the Participant’s base salary he or she elects to defer under the Plan in any given year. The Participant may
                    make election changes for any subsequent plan year prior to the beginning of said year. Participant’s initial annual deferral amount election shall continue in each subsequent plan year unless, and until, the Participant changes his or
                    her election.

              

      

      

      

      
        	
                1.5

              	
                “Base Salary”
                    shall mean the annual cash compensation relating to services performed during any Plan Year, (excluding bonuses, commissions, overtime, fringe benefits, incentive payments, SERP compensation, non-monetary awards, relocation expenses,
                    retainers, directors fees and other fees, severance allowances, pay in lieu of vacations, insurance premiums paid by the Plan Sponsor, insurance benefits paid to the Participant or his or her Beneficiary, stock options and grants, and
                    car allowances) paid to a Participant for services rendered to the Plan Sponsor or an Affiliate. Base Salary shall be calculated before reduction for compensation voluntarily deferred or contributed by the Participant pursuant to all
                    qualified or non-qualified plans of the Plan Sponsor or an Affiliate and shall be calculated to include amounts not otherwise included in the Participant’s gross income under Sections 125, 402(e)(3), 402(h), or 403(b) of the Code
                    pursuant to plans established by the Plan Sponsor; provided, however, that all such amounts will be included in compensation only to the extent that, had there been no such plan, the amounts would have been payable in cash to the
                    Participant.

              

      

      

      

      
        	
                1.6

              	
                “Beneficiary”
                    shall mean one or more persons, trusts, estates or other entities that are entitled to receive benefits under this Plan upon the death of the Participant.

              

      

      

      

      
        	
                1.7

              	
                “Board” shall mean the Board
                    of Directors of Plan Sponsor.

              

      

      

      

      
        	
                1.8

              	
                “Cause” shall mean any of the
                    following acts or circumstances:

              

      

      

      

      
        	
                (a)

              	
                Willful destruction by the Participant of property of the Plan Sponsor or an Affiliate having a material value
                    to the Plan Sponsor or such Affiliate;

              

      

      

      

      
        	
                (b)

              	
                fraud, embezzlement, theft, or comparable dishonest activity committed by the Participant (excluding acts
                    involving a de minimis dollar value and not related to the Plan Sponsor or an Affiliate);

              

      

      

      

      
        	
                (c)

              	
                the Participant’s conviction of or entering a plea of guilty or nolo contendere to any crime constituting a
                    felony or any misdemeanor involving fraud,

              

      

      
        
          

      

      

      

      dishonesty or moral turpitude (excluding acts involving a de minimis dollar value and not related to the Plan Sponsor or an
          Affiliate);

      

      

      
        	
                (d)

              	
                the Participant’s breach, neglect, refusal, or failure to materially discharge the Participant’s duties (other
                    than due to physical or mental illness) commensurate with the Participant’s title and function or the Participant’s failure to comply with the lawful directions of the Board or a senior managing officer of the Plan Sponsor, or of the
                    Board or a senior managing officer of an Affiliate that employs the Participant, in any such case that is not cured within fifteen (15) days after the Participant has received written notice thereof from such Board or senior managing
                    officer;

              

      

      

      

      
        	
                (e)

              	
                any willful misconduct by the Participant which may cause substantial economic or reputation injury to the
                    Plan Sponsor, including, but not limited to, sexual harassment, or;

              

      

      

      

      
        	
                (f)

              	
                a willful and knowing material misrepresentation to the Board or a senior managing officer of the Plan Sponsor
                    or to the Board or a senior managing officer of an Affiliate that employs the Participant.

              

      

      

      

      
        	
                1.9

              	
                “Claimant”
                    shall mean a person who believes that he or she is being denied a benefit to which he or she is entitled hereunder.

              

      

      

      

      
        	
                1.10

              	
                “Code”
                    shall mean the Internal Revenue Code of 1986, as amended from time to time, and the Treasury Regulations promulgated thereunder.

              

      

      

      

      
        	
                1.11

              	
                “Disability”
                    shall mean a condition of the Participant whereby he or she either: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in
                    death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected
                    to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Plan Sponsor.  Items
                    (i) and (ii) of this Section 1.10 are permitted provided they are in compliance with the requirements of Treasury Regulations Section 1.409A-3(g)(4). A Participant will also be deemed disabled if determined to be totally disabled by the
                    Social Security Administration or in accordance with a disability insurance program, provided that the definition of Disability applied under such disability insurance program complies with the requirements of Treasury Regulations
                    Section 1.409A- 3(g)(4).

              

      

      

      

      
        	
                1.12

              	
                “Effective Date” of the Plan
                    is January 1, 2016.

              

      

      

      

      
        	
                1.13

              	
                “Election Form”
                    shall mean the form or forms established from time to time by the Plan Administrator on which the Participant elects, prior to the first Plan Year, in which it is earned (except as provided under the special rule for newly Eligible
                    Employees set forth in Section 2.3 below), his or her Annual Deferral Amount for the following Plan Year and the Participant designates his or her Beneficiary, as required on that form and under the terms of the Plan.

              

      

      
        
          

      

      

      

      
        	
                1.14

              	
                “Eligible
                      Employee” shall mean for any Plan Year (or applicable portion of a Plan Year), a person who is determined by the Plan Sponsor, or its designee, to be a member of a select group of management or highly compensated employees of
                    the Plan Sponsor or an Affiliate, and who is designated by the Plan Sponsor, or its designee, to be an Eligible Employee under the Plan. If the Plan Sponsor determines that an individual first becomes an Eligible Employee during a Plan
                    Year, the Plan Sponsor shall notify the individual of its determination and of the date during the Plan Year on which the individual shall first become an Eligible Employee, but in no case will an employee become eligible prior to one
                    (1) complete year of service.

              

      

      

      

      
        	
                1.15

              	
                “Entry Date”
                    shall mean with respect to an Eligible Employee, the first day of the pay period following the date on which the Eligible Employee becomes a Participant.

              

      

      

      

      
        	
                1.16

              	
                “ERISA”
                    shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time.

              

      

      

      

      
        	
                1.17

              	
                “FICA Amount”
                    shall mean the Participant’s share of the tax imposed on a Participant’s Base Salary and Plan Sponsor Contributions, if any, under the Federal Insurance Contributions Act.

              

      

      

      

      
        	
                1.18

              	
                “Participant”
                    shall mean (A) any Eligible Employee (i) who is selected to participate in this Plan, (ii) who elects to participate in this Plan by signing a Participation Agreement, (iii) who completes and signs certain Election Form(s) required by
                    the Plan Administrator, and (iv) whose signed Election Form(s) are accepted by the Plan Administrator or

              

      

      (B) a former Eligible Employee who continues to be entitled to a benefit under this Plan. A spouse or
          former spouse of a Participant shall not be treated as a Participant in this Plan or have an Account balance under this Plan, even if he or she has an interest in the Participant’s benefits under this Plan as a result of applicable law or
          property settlements resulting from legal separation or marital dissolution or divorce.

      

      

      
        	
                1.19

              	
                “Participation
                      Agreement” shall mean the document executed by the Eligible Employee and Plan Administrator whereby the Eligible Employee agrees to participate in the Plan.

              

      

      

      

      
        	
                1.20

              	
                “Permissible
                      Payment Event” shall mean one or more of the following events upon which payment may be made to a Participant or his or her Beneficiary under the terms of the Plan: (i) the Participant’s Separation from Service, (ii) the
                    Participant’s death, (iii) the Participant’s Disability, (iv) upon the occurrence of an Unforeseeable Emergency, or (v) a time or pursuant to a fixed schedule and/or retirement date specified under the Plan, within the meaning of
                    Treasury Regulations Section 1.409A-3(a).

              

      

      

      

      
        	
                1.21

              	
                “Plan”
                    shall mean The York Water Company Deferred Compensation Plan For Employees Ineligible for the Defined Benefit Pension Plan, as set forth herein and amended from time to time.

              

      

      

      

      
        	
                1.22

              	
                “Plan
                      Administrator” shall be the Board or its designee. A Participant in the Plan should not serve as a singular Plan Administrator. If a Participant is part of a group of Participants designated as a committee or Plan
                    Administrator, then the Participant may not

              

      

      
        
          

      

      

      

      participate in any activity or decision relating solely to his or her individual benefits under the
          Plan; matters solely affecting the applicable Participant will be resolved by the remaining Plan Administrator members or by the Board.

      

      

      
        	
                1.23

              	
                “Plan Sponsor”
                    shall mean The York Water Company, a corporation organized and existing under the laws of the Commonwealth of Pennsylvania.

              

      

      

      

      
        	
                1.24

              	
                “Plan Sponsor
                      Contribution” shall mean the amount contributed to a Participant’s Plan Sponsor Contribution Account pursuant to Section 3.1 and 3.2.

              

      

      

      

      
        	
                1.25

              	
                “Plan Sponsor
                      Contribution Account” shall mean: (i) the sum of the Participant’s Plan Sponsor Contribution amounts, plus (ii) amounts credited (net of amounts debited, which may result in an aggregate negative number) pursuant to Section
                    3.3.

              

      

      

      

      
        	
                1.26

              	
                “Plan Year”
                    shall mean the twelve (12) month period beginning January 1 of each calendar year and continuing through December 31 of such calendar year.

              

      

      

      

      
        	
                1.27

              	
                “Scheduled
                      Withdrawal Account” shall mean: (i) the sum of the Participant’s Annual Deferral Amount(s) plus (ii) the sum of the Participant’s Plan Sponsor Contribution Amount(s) plus (iii) amounts credited (net of amounts debited, which
                    may result in an aggregate negative number, pursuant to Sections 3.3)[,] less (iv) all distributions made to, or withdrawals by, the Participant or his
                    or her Beneficiary, and tax withholding amounts which may have been deducted from the Scheduled Withdrawal Account(s).

              

      

      

      

      
        	
                1.28

              	
                “Section 409A”
                    shall mean Section 409A of the Code and the Treasury Regulations or other authoritative guidance issued under that section.

              

      

      

      

      
        	
                1.29

              	
                “Separation
                      from Service” shall mean a Participant’s termination of active employment, whether voluntary or involuntary, other than by death, Disability, or leave of absence with the Plan Sponsor or Affiliate(s), within the meaning of
                    Section 409A(a)(2)(A)(i) of the Code, and the Treasury Regulations thereto.

              

      

      

      

      
        	
                1.30

              	
                “Separation
                      From Service Account” shall mean (i) the sum of the Participant Annual Deferral Amount(s) plus (ii) amounts credited (net of amounts debited, which may result in an aggregate negative number) pursuant to Section 3.3 less (iii)
                    all distributions made to or withdrawals by the Participant or his or her Beneficiary that relate to the Participant’s Separation From Service Account, and tax withholdings amounts deducted (if any) from the Participants’ Separation
                    From Service Account.

              

      

      

      

      
        	
                1.31

              	
                “Specified
                      Employee” shall mean a key employee (as defined by Section 416(i) of the Code without regard to paragraph (5) thereof), and as further defined in Treasury Regulations Section 1.409A-(1)(i),) of the Plan Sponsor the stock of
                    which is publicly traded on an established securities market or otherwise within the meaning of Section 409A(2)(B)(i). Notwithstanding other provisions of this Plan to the contrary, distributions by the Plan Sponsor to Specified
                    Employees (if any) may not be made before the date which is six (6) months after the date of Separation from Service (or, if earlier, the date of death of the Specified Employee) within the meaning of Treasury Regulations Section
                    1.409A-3(g)(2). If payments to a Specified Employee are to be made in installments each installment payment to which a Specified

              

      

      
        
          

      

      

      

      Employee is entitled upon a Separation from Service will be delayed by six (6) months. A Participant
          meeting the definition of Specified Employee on December 31 or during a 12 month period ending December 31 will be treated as a Specified Employee for the 12 month period commencing the following April 1.

      

      

      
        	
                1.32

              	
                “Treasury
                      Regulations” shall mean regulations promulgated by the Internal Revenue Service for the U.S. Department of the Treasury, either proposed, or permanent, and as may be amended from time to time.

              

      

      

      

      
        	
                1.33

              	
                “Trust”
                    shall mean one or more grantor trusts, of which the Plan Sponsor is the grantor, within the meaning of subpart E, part I, subchapter J, subtitle A of the Code, to pay benefits under this Plan, that may be established in accordance with
                    the terms of the Plan.

              

      

      

      

      
        	
                1.34

              	
                “Unforeseeable
                      Emergency” shall mean a severe financial hardship of the Participant or Beneficiary resulting from an illness or accident of the Participant or Beneficiary, the Participant or Beneficiary’s spouse, or the Participant or
                    Beneficiary’s dependent(s) (as defined in Section 152(a)) of the Code or loss of the Participant or Beneficiary’s property due to casualty or other similar extraordinary and unforeseeable circumstances arising as a result of events
                    beyond the control of the Participant or Beneficiary within the meaning of Section 409A.

              

      

      

      

      
        	
                1.35

              	
                “Vested
                      Account” shall mean a Participant’s Separation from Service Account balance plus Plan Sponsor Contribution Account balance plus other amounts vested in accordance with Section 4.1 below.

              

      

      

      

      ARTICLE 2.

      Selection,
              Enrollment, Eligibility

      

      

      
        	
                2.1

              	
                Selection
                        by Plan Sponsor. Participation in this Plan shall be limited to a select group of management or highly compensated employees of the Plan Sponsor, as determined by the Plan Sponsor in its sole and absolute discretion. The
                    initial group of Eligible Employees shall become Participants on the Effective Date of the Plan. Any individual selected by the Plan Administrator as an Eligible Employee after the Effective Date, shall become a Participant on the first
                    Entry Date occurring on or after the date on which he or she becomes an Eligible Employee, provided that the Eligible Employee meets the enrollment requirements set forth in Section 2.3 below.

              

      

      

      

      
        	
                2.2

              	
                Re-Employment.
                    If a Participant who incurs a Separation from Service with the Plan Sponsor or an Affiliate is subsequently re-employed, he or she may, at the sole and absolute discretion of the Plan Administrator, become a Participant in accordance
                    with the provisions of above Section 2.1.

              

      

      

      

      
        	
                2.3

              	
                Enrollment
                        Requirements. As a condition to participation in this Plan, each selected Eligible Employee shall complete, execute, and return to the Plan Administrator a Participation Agreement and Election Form within the time
                    specified by the Plan Administrator, but in no event later than thirty (30) days following the date that an Eligible Employee is first selected by the Plan Sponsor to participate in the Plan in accordance with Section 2.1 above;
                    provided, however, that any Base Salary deferral election shall be effective only with regard to Base Salary earned following submission of the Participation Agreement and Election Form to

              

      

      
        
          

      

      

      

      the Plan Administrator. In addition, the Plan Administrator shall establish such other enrollment requirements as it
          determines necessary or advisable. All elections to defer Base Salary with respect to a Plan Year shall be irrevocable, except as permitted under Section 5.8 below (Unforeseeable Emergency).

      

      

      
        	
                2.4

              	
                Plan
                        Aggregation Rules. This Plan shall constitute an “account balance plan” as defined in Treasury Regulations Section 31.3121(v)(2)-1(c)(1)(ii)(A). For purposes of Section 409A, all amounts deferred by or on behalf of a
                    Participant under this Plan shall be aggregated with deferred amounts under other “account balance plans” currently maintained or adopted in the future by the Plan Sponsor, and all amounts shall be treated as deferred under the rules
                    governing a single plan.

              

      

      

      

      
        	
                2.5

              	
                Termination
                        of Participation. If the Plan Administrator determines that a Participant who has not experienced a Separation from Service no longer qualifies as a member of a select group of management or highly compensated employees
                    or that such a Participant’s participation in the Plan could jeopardize the status of this Plan as “unfunded” and “maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management
                    or highly compensated employees,” the Plan Administrator shall have the right to terminate any deferral election the Participant has made for any Plan Year following the Plan Year in which the Participant is determined by the Plan
                    Administrator to no longer qualify as a member of a select group of management or highly compensated employees but only to the extent such termination complies with the requirements of Section 409A, and/or to prevent the Participant
                    from making future deferral elections and receiving Plan Sponsor Contribution Amounts under the Plan.

              

      

      

      

      ARTICLE 3.

      Contributions
              and Credits

      

      

      
        	
                3.1

              	
                Plan
                        Sponsor Discretionary Contributions. The Plan Sponsor may make discretionary contributions to the Participant’s Plan Sponsor Contribution Account as it may determine from time to time and may direct that such
                    contributions be allocated to those Participants that it may select. The amount so credited to a Participant may be smaller or larger than the amount credited to any other Participant, and the amount credited to any Participant for a
                    Plan Year may be zero. No Participant shall have a right to compel the Plan Sponsor to make a Plan Sponsor discretionary contribution under this Article and no Participant shall have the right to share in any such contribution for any
                    Plan Year unless selected by the Plan Sponsor, in its sole and absolute discretion.

              

      

      

      

      
        	
                3.2

              	
                Plan
                        Sponsor Non-Discretionary Contributions The Plan Sponsor shall make a non-discretionary contribution/match equal to, but not to exceed, 5% of the Participant’s base salary, Section 1.5.

              

      

      

      

      
        	
                3.3

              	
                Account
                        Earnings. From time to time, as appropriate, the Plan Sponsor will also credit the Participant’s Plan Sponsor Contribution Account and the Participant’s Separation from Service Account with interest on the existing credit
                    balance at a rate determined at the sole discretion of the Plan Sponsor, said rate to EQUAL THE DECEMBER 31 RATE OF MOODY’S AAA CORPORATE
                      BOND YIELD FORECAST for the first Plan Year and for

              

      

      
        
          

      

      

      

      all subsequent periods unless changed by the Plan Sponsor. In no case shall the Plan Sponsor credit
          interest of more than a six (6) percent rate in any plan year to the Participant’s Plan Sponsor Contribution Account and the Participant’s Separation from Service Account. No interest shall be credited to any Participant’s account(s) after a
          Separation from Service.

      

      

      
        	
                3.4

              	
                Contributions
                        and Account Earnings after Age 65  The Participant may not make any contributions to any Account after obtaining the age of 65 and actively employed by the Plan Sponsor.  The Plan Sponsor may not make any
                    non-discretionary contributions to any of the Participant’s accounts after the Participant obtains the age of sixty-five (65). The Plan sponsor may not credit any of the Participant’s accounts with any interest after the Participant
                    obtains the age of sixty-five (65).

              

      

      

      

      ARTICLE 4.

      Vesting
              and Taxes

      

      

      
        	
                4.1

              	
                Vesting of Benefits.

              

      

      

      

      
        	
                (a)

              	
                A Participant shall be 100% vested in his or her Separation from Service Account, Section 1.30 at all times.

              

      

      

      

      
        	
                (b)

              	
                A Participant shall be 100% vested in Plan Sponsor Contribution Account, Section 1.25 after ten (10) complete
                    years of plan participation.

              

      

      

      

      
        	
                (c)

              	
                A Participant shall be 100% vested in the Permissible Payment Event Calculation, Section 5.15(b), after
                    fifteen (15) complete years of plan participation.

              

      

      

      

      
        	
                (d)

              	
                Notwithstanding Section 4.1, (b), (c), a Participant shall be 100% vested in all accounts (including gross up
                    as set forth in Section 5.15 below) when the Participant attains the age of 60.

              

      

      

      

      
        	
                (e)

              	
                In the event the Participant’s employment is terminated for Cause, no benefits of any kind will be due or
                    payable under the terms of this Plan from amounts credited to a Participant’s Plan Sponsor Contribution Account nor shall the Permissible Payment Event Calculation be engaged to determine any Participant benefit and all rights of the
                    Participant, his or her designated Beneficiary, executors, or administrators, or any other person, to receive payments thereof shall be forfeited. This Section 4.1(e) shall apply to a Participant’s Plan Sponsor Contribution Account and
                    Permissible Payment Event Calculation whether or not such amounts or calculations are vested pursuant to Section 4.1 (b), (c), (d).

              

      

      

      

      
        	
                4.2

              	
                FICA, Withholding and Other Taxes.

              

      

      

      

      
        	
                (a)

              	
                Pre-Distribution
                        Tax Withholdings. The Plan Sponsor, or trustee of the Trust, shall withhold the FICA amount and other employment taxes from the Participant’s Base Salary in a manner determined in the sole discretion of the Plan Sponsor
                    as a Participant becomes vested in his or her accounts and calculation pursuant to Section 4.1 (a), (b), (c) and (d), as applicable.

              

      

      
        
          

      

      

      

      
        	
                (b)

              	
                Distributions.
                    The Plan Sponsor, or trustee of the Trust, shall withhold from any payments made to a Participant or Beneficiary under this Plan all federal, state and local income, employment and other taxes required to be withheld by the Plan Sponsor
                    that complies with applicable tax withholding requirements.

              

      

      

      

      ARTICLE 5.

      Permissible
              Payment Events, Changes in Time and Form of Payments, Method of Payments

      

      

      
        	
                5.1

              	
                Payment
                        Following Death While Actively Employed. In the event of the Participant’s death while actively employed, and provided that the Plan Sponsor is first provided a valid death certificate, the Participant’s Beneficiary shall
                    be paid the higher of (a) $150,000 or

              

      

      
        	
                (b)

              	
                the Participant’s Vested Account balance (including gross up as set forth in Section 5.15 below) with payment
                    being made in a single lump sum within ninety (90) days following the date of death of the Participant (without regard to whether the Participant was a Specified Employee) to the Participant’s Beneficiary.

              

      

      
        	
                5.2

              	
                Payment
                        Following a Separation From Service with Less Than Ten Complete Years in the Plan. If a Participant Separates from Service prior to attaining ten (10) complete years in the Plan, the Participant’s Separation from Service
                    Account balance in accordance with Section 4.1(a) shall be paid in a lump sum within ninety (90) days following the Participant’s
                    Separation from Service.  Notwithstanding the above, if the Participant is a Specified Employee, Section 1.31 such payment shall instead be made or commence six (6) months after the Participant’s Separation from Service.

              

      

      

      

      
        	
                5.3

              	
                Payment
                        Following a Separation From Service with Ten Complete Years in the Plan, but Less Than Fifteen Complete Years in the Plan and Less Than Sixty Years of Age. A Participant shall be paid his or her Scheduled Withdrawal
                    Account balance in accordance with Section 4.1 with payments being made or commencing within ninety (90) days following the Participant’s Separation from Service and the attainment of age sixty (60). Notwithstanding the above, if the
                    Participant is a Specified Employee, Section 1.31 such payment shall instead be made or commence six (6) months after the Participant’s Separation from Service.

              

      

      

      

      
        	
                5.4

              	
                Payment
                        Following a Separation From Service with Fifteen or More Complete Years in the Plan and Less Than Sixty Years of Age.  A Participant shall be paid his or her Scheduled Withdrawal Account balance in accordance with Section
                    4.1 with payments being made or commencing within ninety (90) days following the Participant’s Separation from Service and the attainment of age sixty (60). Notwithstanding the above, if the Participant is a Specified Employee, Section
                    1.31 such payment shall instead be made or commence six (6) months after the Participant’s Separation from Service.

              

      

      

      

      
        	
                5.5

              	
                Payment
                        Following a Separation From Service at Age Sixty or More. A Participant shall be paid his or her Vested Account balance in accordance with Section 4.1 with payments being made or commencing within ninety (90) days
                    following the Participant’s Separation from Service at age sixty (60) or more.  Notwithstanding the above, if the Participant

              

      

      
        
          

      

      

      

      is a Specified Employee, Section 1.31 such payment shall instead be made or commence six (6) months
          after the Participant’s Separation from Service.

      

      

      
        	
                5.6

              	
                Payment
                        Following Disability. In the event of a Participant’s Disability, the Participant shall be paid his or her Vested Account balance with payment or payments being made or commencing within ninety (90) days following the
                    determination of a Participant’s Disability. Amounts shall be distributed according to the form of payment set forth in Section 5.9(b) below.

              

      

      

      

      
        	
                5.7

              	
                Payment
                        Following Death After Receiving Payments. In the event of the Participant’s death after he or she begins receiving payments pursuant to the terms of the Plan, and provided that the Plan Sponsor is first provided a valid
                    death certificate, the Participant’s designated Beneficiary shall be paid the Participant’s remaining Vested Account balance in a single lump sum within ninety (90) days following the date of death of the Participant (without regard to
                    whether the Participant was treated as a Specified Employee).

              

      

      

      

      
        	
                5.8

              	
                Payment in
                        the Event of an Unforeseeable Emergency. If the Participant experiences an Unforeseeable Emergency, the Participant may petition the Plan Administrator for payment of an amount that shall not exceed the lesser of: (i) the
                    Participant’s vested Account(s), or (ii) the amount reasonably needed to satisfy the Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the payment. A Participant may not receive such a
                    payment to the extent that the Unforeseeable Emergency is or may be relieved: (i) through reimbursement or compensation by insurance or otherwise, or (ii) by liquidation of the Participant’s assets, to the extent the liquidation of such
                    assets would not itself cause severe financial hardship. If the Plan Administrator approves a Participant’s petition for a payment then the Participant shall receive said payment, in lump sum, as soon as administratively feasible after
                    such approval.

              

      

      

      

      
        	
                5.9

              	
                Method of Payments.

              

      

      

      

      
        	
                (a)

              	
                Cash.
                    All distributions under the Plan made under the Plan shall be made in cash.

              

      

      

      

      
        	
                (b)

              	
                Form of
                        Payment. Upon the occurrence of a Permissible Payment Event, the Account(s) shall be calculated as of the date of said event. Installment payments made after the first payment shall be paid on or about the applicable
                    modal anniversary of the first payment date until all required installments have been paid. Except as otherwise stated in Sections 5.1, and 5.2 above, which provide for lump sum payments, the amount of each payment shall be determined
                    in accordance with Section 5.15 below. Lump sum payment may not be elected by the Participant.

              

      

      

      

      
        	
                (c)

              	
                Lump Sum
                        Payment of Minimum Account Balances. Notwithstanding anything else contained herein to the contrary, if the Vested Account balance for a Participant at the due date of the first installment is fity thousand dollars
                    ($50,000.00) or less, payment of the Account(s) shall be made instead in a lump sum on the due date of the first installment, and no installment payments shall be available.

              

      

      
        
          

      

      

      

      
        	
                5.10

              	
                No
                        Accelerations. Notwithstanding anything in this Plan to the contrary, no change submitted on a Participant Election Form shall be accepted by the Plan Sponsor. The Plan Sponsor may, however, accelerate certain
                    distributions under the Plan to the extent permitted under Section 409A as follows:

              

      

      

      

      
        	
                (a)

              	
                Conflicts
                        of Interest. The Plan will permit such acceleration of the time or schedule of payment under the Plan as may be necessary to comply with a certificate of divesture.

              

      

      

      

      
        	
                (b)

              	
                De Minimis
                        and Specified Amounts. The Plan will permit the acceleration of the time or schedule of payment to a Participant, provided that (i) the payment accompanies the termination in the entirety of the Participant’s interest in
                    the Plan; (ii) the payment is made on or before the later of: (A) December 31 of the Plan Year in which occurs the Participant’s Separation from Service from the Plan Sponsor, or

              

      

      (B) the date is 2 1⁄2 months after the Participant’s Separation from Service from the Plan Sponsor;
          and (iii) the payment is not greater than $50,000.

      

      

      
        	
                (c)

              	
                Payment of
                        Employment Taxes. The Plan will permit the acceleration of the time or schedule of a payment to pay the FICA Amount. Additionally, the Plan will permit the acceleration of the time or schedule of a payment to pay the
                    income tax on wages imposed as a result of the payment of the FICA amount, and to pay the additional income tax on wages attributable to the pyramiding wages and taxes. However, the total payment under this acceleration provision will
                    not exceed the aggregate of the FICA Amount, and the income tax withholding related to such FICA Amount in accordance with the requirement of Treasury Regulations Section 1.409A-3(j)(4)(vi).

              

      

      

      

      
        	
                (d)

              	
                Payment
                        upon Income Inclusion under Section 409A. The Plan will permit the acceleration of the time or schedule of a payment to a Participant at any time the Plan fails to meet the requirements of Section 409A. Such Payment may
                    not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Section 409A.

              

      

      

      

      
        	
                5.11

              	
                Unsecured General Creditor Status
                        of Participant.

              

      

      

      

      
        	
                (a)

              	
                Payment to the Participant or any Beneficiary hereunder shall be made from assets which shall continue, for
                    all purposes, to be part of the general, unrestricted assets of the Plan Sponsor and no person shall have any interest in any such asset by virtue of any provision of this Plan. The Plan Sponsor’s obligation hereunder shall be an
                    unfunded and unsecured promise to pay money in the future. To the extent that any person acquires a right to receive payments from the Plan Sponsor under the provisions hereof, such right shall be no greater than the right of any
                    unsecured general creditor of the Plan Sponsor and no such person shall have or acquire any legal or equitable right, interest or claim in or to any property or assets of the Plan Sponsor.

              

      

      

      

      
        	
                (b)

              	
                In the event that the Plan Sponsor purchases an insurance policy or policies insuring the life of a
                    Participant or employee, to allow the Plan Sponsor to recover or meet the cost of providing benefits, in whole or in part, hereunder, no

              

      

      
        
          

      

      

      

      Participant or Beneficiary shall have any rights whatsoever in said policy or the proceeds there
          from. The Plan Sponsor, or Trustee, shall be the primary owner and beneficiary of any such insurance policy or property and shall possess and may exercise all incidents of ownership therein.

      

      

      
        	
                (c)

              	
                In the event that the Plan Sponsor purchases an insurance policy or policies on the life of a Participant as
                    provided for above, then all of such policies shall be subject to the claims of the creditors of the Plan Sponsor.

              

      

      

      

      
        	
                (d)

              	
                If the Plan Sponsor chooses to obtain insurance on the life of a Participant in connection with its
                    obligations under this Plan, the Participant hereby agrees to take such physical examinations and to truthfully and completely supply such information as may be required by the Plan Sponsor or the insurance company designated by the
                    Plan Sponsor.

              

      

      

      

      
        	
                5.12

              	
                Facility of
                        Payment. If a distribution is to be made to a minor, or to a person who is otherwise incompetent, then the Plan Administrator may make such distribution:

              

      

      (i) to the legal guardian, or if none, to a parent of a minor payee with whom the payee maintains his
          or her residence, or (ii) to the conservator or administrator or, if none, to the person having custody of an incompetent payee. Any such distribution shall fully discharge the Plan Sponsor and the Plan Administrator from further liability on
          account thereof.

      

      

      
        	
                5.13

              	
                Excise Tax
                        Limitation: In the event that any payment or benefit (within the meaning of Section 280G(b)(2) of the Code) to the Participant or for the Participant’s benefit paid or payable or distributed or distributable (including,
                    but not limited to, the acceleration of the time for the vesting or payment of such benefit or payment) pursuant to the terms of this Plan or otherwise in connection with, or arising out of, the Participant’s employment with the Plan
                    Sponsor or any of its Affiliates or a Change of Control within the meaning of Section 280G of the Code (a “Payment” or “Payments”), would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the
                    Payments shall be reduced (but not below zero) but only to the extent necessary that no portion thereof shall be subject to the Excise Tax (the “Section 4999 Limit”).  The Payments shall be reduced on a nondiscretionary basis in such a
                    way as to minimize the reduction in the economic value deliverable to the Participant. Where more than one payment has the same value for this purpose and they are payable at different times they will be reduced on a pro rata basis.

              

      

      

      

      
        	
                5.14

              	
                Delay in
                        Payment by Plan Sponsor. In the case of payments by the Plan Sponsor to a Participant or Participant’s Beneficiary, the deduction for which would be limited or eliminated by the application of Section 162(m) of the Code,
                    payments that would otherwise violate securities laws, or payments that would violate loan covenants or other contractual terms to which the Participant is a party, and where such a violation would result in material harm to the Plan
                    Sponsor, said payments may be delayed. In the case of deduction limitations imposed by Section 162(m) of the Code, payment will be deferred until the earlier of (i) a date in the first year in which the Plan Sponsor reasonably
                    anticipates that a payment of such amount would not result in a limitation under 162(m) or (ii) the year in which the Participant Separates from Service. Payments delayed for other permissible reasons must be made in the first calendar
                    year in which the Plan Sponsor reasonably anticipates that the payment would not violate the loan

              

      

      
        
          

      

      

      

      contractual terms, the violation would not result in material harm to the Plan Sponsor, or the
          payment would not result in a violation of Federal securities law or other applicable laws.

      

      

      
        	
                5.15

              	
                Permissible Payment Event
                        Calculation.

              

      

      

      

      The Plan Sponsor agrees that in determining the benefits payable under Section 5.3, above, that the
          amount of each monthly payment actually made to the Participant or his or her Beneficiary will be determined by dividing his or her Scheduled Withdrawal Account balance prior to the first payment by 240.

      

      

      The Participant may request the benefit be paid over a fifteen (15) year period (180 equal
          payments) instead of the benefit being paid over a twenty (20) year period (240 equal payments) which is the default payment schedule. The Participant must make a written request to the Plan Sponsor no less than three (3) months prior to
          receiving the first payment of the benefit.

      

      

      Example Without Tax Savings:

      

      

      Scheduled Withdrawal Account Value at age 60 = $500,000 (Participant Separated from Service Prior to vesting  of Tax Saving Multiplier)

      

      

      Step 1: Actual Benefit to be paid each year: $500,000/20 years = $25,000 Step 2: Actual Benefit to
          be paid each month: $500,000/240 = $2,083.34

      (b) The Plan Sponsor agrees that in determining the benefits payable under Sections 5.1, 5.4, 5.5, and 5.6 above, that the amount of each monthly
          payment actually made to the Participant or his or her Beneficiary will be determined by dividing his or her Scheduled Withdrawal Account balance prior to the first payment by 240 and then increasing the amount by the amount of federal and state
          income tax saved by the Plan Sponsor, if any. The savings will be calculated based on the marginal federal and state income tax bracket for the Plan Sponsor at the time the Participant initially enters the Plan.

      

      

      Example With Tax Savings:

      

      

      Scheduled Withdrawal Account Value at age 60 = $500,000 Corporate Marginal Tax
          Rate is 0.4059. Participant Separated at age 60.

      Step 1: Determine Tax Savings Multiplier (1 minus Tax Bracket %, or 1-

      .4059 = .5941)

      
        
          	

                	Step 2:	
                  Calculate Actual Benefit To Be Paid (Divide Account Value by the Tax Savings Multiplier, or $500,000 divided by .5941 =

                

        

      

      $841,609.16)

      Step 3: Actual Benefit to be paid each year: $841,609.16/20 years =

      $42,080.45

      
        
          	

                	Step 4:	
                  Actual Benefit to be paid each month: $841,609.16/240=$3,506.70 Beneficiary Designation

                

        

      

      
        
          

      

      

      

      
        	
                5.16

              	
                Designation of Beneficiaries.

              

      

      

      

      
        	
                (a)

              	
                Each Participant may designate any person or persons (who may be named contingently or successively) to
                    receive any benefits payable under the Plan upon the Participant’s death, and the designation may be changed from time to time by the Participant by filing a new designation. Each designation will revoke all prior designations by the
                    same Participant, shall be in the form prescribed by the Plan Administrator, and shall be effective only when filed in writing with the Plan Administrator during the Participant’s lifetime.

              

      

      

      

      
        	
                (b)

              	
                In the absence of a valid Beneficiary designation, or if, at the time any benefit payment is due to a
                    Beneficiary, there is no living Beneficiary validly named by the Participant, the Plan Sponsor shall pay the benefit payment to the Participant’s spouse, if then living, and if the spouse is not then living to the Participant’s then
                    living descendants, if any, per stirpes, and if there are no living descendants, to the Participant’s estate. In determining the existence or identity of anyone entitled to a benefit payment, the Plan Sponsor may rely conclusively upon
                    information supplied by the Participant’s personal representative, executor or administrator.

              

      

      

      

      
        	
                (c)

              	
                If a question arises as to the existence or identity of anyone entitled to receive a death benefit payment
                    under the Plan, or if a dispute arises with respect to any death benefit payment under the Plan, the Plan Sponsor may distribute the payment to the Participant’s estate without liability for any tax or other consequences, or may take
                    any other action which the Plan Sponsor deems to be appropriate.

              

      

      

      

      
        	
                5.17

              	
                Information
                        to be Furnished by Participants and Beneficiaries; Inability to Locate Participants or Beneficiaries. Any communication, statement or notice addressed to a Participant or to a Beneficiary at his or her last post office
                    address as shown on the Plan Sponsor’s records shall be binding on the Participant or Beneficiary for all purposes of this Plan. The Plan Sponsor shall not be obligated to search for any Participant or Beneficiary beyond the sending of
                    a registered letter to the last known address.

              

      

      

      

      ARTICLE 6.

      Termination,
              Amendment or Modification

      

      

      
        	
                6.1

              	
                Plan
                        Termination. The Plan Sponsor reserves the right to terminate the Plan in accordance with one of the following, subject to the restrictions imposed by Section 409A:

              

      

      

      

      
        	
                (a)

              	
                Corporate
                        Dissolution or Bankruptcy. Distributions will be made if the Plan is terminated within twelve (12) months of a corporate dissolution taxed under Section 331 of the Code, or with the approval of a bankruptcy court pursuant
                    to 11 U.S.C. Section 503(b)(1)(A), provided that the amounts deferred under the Plan are included in the Participant’s gross income in the latest of:

              

      

      

      

      
        	
                (i)

              	
                The calendar year in which the Plan termination occurs;

              

      

      
        
          

      

      

      

      
        	
                (ii)

              	
                The calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or

              

      

      

      

      
        	
                (iii)

              	
                The first calendar year in which the payment is administratively practicable.

              

      

      

      

      
        	
                (b)

              	
                Discretionary
                        Termination. The Plan Sponsor may also terminate the Plan and make distributions provided that:

              

      

      

      

      
        	
                (i)

              	
                All plans sponsored by the Plan Sponsor that would be aggregated with any terminated arrangements under
                    Treasury Regulations Section 1.409A- 1(c) are terminated;

              

      

      

      

      
        	
                (ii)

              	
                No payments other than payments that would be payable under the terms of the Plan if the termination had not
                    occurred are made within twelve (12) months of the Plan termination;

              

      

      

      

      
        	
                (iii)

              	
                All payments are made within twenty-four (24) months of the Plan termination;

              

      

      

      

      
        	
                (iv)

              	
                Termination of the Plan does not occur proximate to a downturn in the financial health of the Plan Sponsor;
                    and

              

      

      

      

      
        	
                (v)

              	
                The Plan Sponsor does not adopt a new plan that would be aggregated with any terminated plan if the same
                    Participant participated in both arrangements, at any time within three (3) years following the date of termination of the Plan.

              

      

      

      

      The Plan Sponsor also reserves the right to suspend the operation of the Plan for a fixed or
          indeterminate period of time.

      

      

      
        	
                (c)

              	
                [Change in Control. The Plan Sponsor may also terminate the Plan and make distributions provided that:

              

      

      

      

      
        	
                (i)

              	
                All plans sponsored by the Plan Sponsor that would be aggregated with any terminated arrangements under
                    Treasury Regulations Section 1.409A- 1(c) are liquidated and terminated;

              

      

      

      

      
        	
                (ii)

              	
                The Plan is terminated within thirty (30) days preceding or twelve

              

      

      (12) months following a change in control that constitutes a “change in control event” within the
          meaning of such term under Treasury Regulations Section 1.409A-3(i)(5); and

      

      

      
        	
                (iii)

              	
                Participants receive all amounts of deferred compensation from the plans identified in Section 7.1(c)(i) above
                    within twelve (12) months of the date the Plan Sponsor takes all steps to terminate and liquidate the plans identified in Section 7.1(c)(i) above.]

              

      

      
        
          

      

      

      

      
        	
                6.2

              	
                Amendment. 
                    The Plan Sponsor may, at any time, amend or modify this Plan in whole or in part; provided, however, that, except to the extent necessary to bring the Plan into compliance with Section 409A: (i) no amendment or modification shall be
                    effective to decrease the value or vested percentage of a Participant’s Account(s), in existence at the time an amendment or modification is made, and (ii) no amendment or modification shall materially and adversely affect the
                    Participant’s rights to be credited with additional amounts on such Account(s), or otherwise materially and adversely affect the Participant’s rights with respect to such Account(s). The amendment or modification of this Plan shall have
                    no effect on any Participant or Beneficiary who has become entitled to the payment of benefits under this Plan as of the date of the amendment or modification.

              

      

      

      

      ARTICLE 7.

      Administration

      

      

      
        	
                7.1

              	
                Plan
                        Administrator Duties. The Plan Administrator shall be responsible for the management, operation and administration of the Plan. The Plan Administrator shall act at meetings by affirmative vote of a majority of its
                    members. Any action permitted to be taken at a meeting may be taken without a meeting if, prior to such action, a unanimous written consent to the action is signed by all members and such written consent is filed with the minutes of the
                    proceedings of the Plan Administrator. A member shall not vote or act upon any matter which relates solely to himself or herself as a Participant. The Chair or any other member or members of the Plan Administrator designated by the
                    Chair may execute any certificate or other written direction on behalf of the Plan Administrator. When making a determination or calculation, the Plan Administrator shall be entitled to rely on information furnished by a Participant or
                    the Plan Sponsor. No provision of this Plan shall be construed as imposing on the Plan Administrator any fiduciary duty under ERISA or other law, or any duty similar to any fiduciary duty under ERISA or other law.

              

      

      

      

      
        	
                7.2

              	
                Plan
                        Administrator Authority. The Plan Administrator shall enforce this Plan in accordance with its terms, shall be charged with the general administration of this Plan, and shall have all powers necessary to accomplish its
                    purposes, including, but not by way of limitation, the following:

              

      

      

      

      
        	
                (a)

              	
                To construe and interpret the terms and provisions of this Plan;

              

      

      

      

      
        	
                (b)

              	
                To compute and certify the amount and kind of benefits payable to Participants and their Beneficiaries; to
                    determine the time and manner in which such benefits are paid; and to determine the amount of any withholding taxes to be deducted;

              

      

      

      

      
        	
                (c)

              	
                To maintain all records that may be necessary for the administration of this Plan;

              

      

      

      

      
        	
                (d)

              	
                To provide for the disclosure of all information and the filing or provision of all reports and statements to
                    Participants, Beneficiaries or governmental agencies as shall be required by law;

              

      

      
        
          

      

      

      

      
        	
                (e)

              	
                To make and publish such rules for the regulation of this Plan and procedures for the administration of this
                    Plan as are not inconsistent with the terms hereof;

              

      

      

      

      
        	
                (f)

              	
                To administer this Plan’s claims procedures;

              

      

      

      

      
        	
                (g)

              	
                To approve election forms and procedures for use under this Plan; and

              

      

      

      

      
        	
                (h)

              	
                To appoint a plan record keeper or any other agent, and to delegate to them such powers and duties in
                    connection with the administration of this Plan as the Plan Administrator may from time to time prescribe.

              

      

      

      

      
        	
                7.3

              	
                Binding
                        Effect of Decision. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation and application of this Plan and the rules and
                    regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Plan.

              

      

      

      

      
        	
                7.4

              	
                Compensation,
                        Expenses and Indemnity. The Plan Administrator shall serve without compensation for services rendered hereunder. The Plan Administrator is authorized at the expense of the Plan Sponsor to employ such legal counsel and/or
                    Plan record keeper as it may deem advisable to assist in the performance of its duties hereunder. Expense and fees in connection with the administration of this Plan shall be paid by the Plan Sponsor.

              

      

      

      

      
        	
                7.5

              	
                Plan
                        Sponsor Information. To enable the Plan Administrator to perform its functions, the Plan Sponsor shall supply full and timely information to the Plan Administrator, on all matters relating to the Base Salary of its
                    Participants, the date and circumstances of the Disability, death, or Separation from Service of its employees who are Participants, and such other pertinent information as the Plan Administrator may reasonably require.

              

      

      

      

      
        	
                7.6

              	
                Periodic
                        Statements. Under procedures established by the Plan Administrator, a Participant shall be provided a statement of account on an annual basis (or more frequently as the Plan Administrator shall determine) with respect to
                    such Participant’s Accounts.

              

      

      

      

      ARTICLE 8.

      Claims
              Procedures

      

      

      
        	
                8.1

              	
                Claims
                        Procedure. This Article is based on final regulations issued by the Department of Labor and published in the Federal Register on November 21, 2000 and codified in Section 2560.503-1 of the Department of Labor Regulations.
                    If any provision of this Article conflicts with the requirements of those regulations, the requirements of those regulations will prevail.

              

      

      

      

      
        	
                (a)

              	
                Claim.
                    A Participant or Beneficiary (hereinafter referred to as a “Claimant”) who believes he or she is entitled to any Plan benefit under this Plan may file a claim with the Plan Administrator. The Plan Administrator shall review the claim
                    itself or appoint an individual or entity to review the claim.

              

      

      
        
          

      

      

      

      
        	
                (b)

              	
                Claim
                        Decision. The Claimant shall be notified within ninety (90) days after the claim is filed whether the claim is allowed or denied (forty-five (45) days in the case of a claim involving Disability benefits), unless, for
                    claims not involving Disability benefits, the Claimant receives written notice from the Plan Administrator or appointee of the Plan Administrator prior to the end of the ninety (90) day period stating that special circumstances require
                    an extension of the time for decision. Such extension is not to extend beyond the day which is one hundred eighty (180) days after the day the claim is filed. In the case of a claim involving Disability benefits, the Plan Administrator
                    will notify the Claimant within the initial forty-five (45) day period that the Plan Administrator needs up to an additional thirty (30) days to review the Claimant’s claim. If the Plan Administrator determines that the additional
                    thirty (30) day period is not sufficient and that additional time is necessary to review the Claimant’s claim for Disability benefits, the Plan Administrator may notify the Claimant of an additional thirty

              

      

      
        	
                (30)

              	
                day extension. If the Plan Administrator denies the claim, it must provide to the Claimant, in writing or by
                    electronic communication:

              

      

      

      

      
        	
                (i)

              	
                The specific reasons for such denial;

              

      

      

      

      
        	
                (ii)

              	
                Specific reference to pertinent provisions of this Plan on which such denial is based;

              

      

      

      

      
        	
                (iii)

              	
                A description of any additional material or information necessary for the Claimant to perfect his or her claim
                    and an explanation why such material or such information is necessary;

              

      

      

      

      
        	
                (iv)

              	
                In the case of any claim involving Disability benefits, a copy of any internal rule, guideline, protocol, or
                    other similar criterion relied upon in making the initial determination or a statement that such a rule, guideline, protocol, or other criterion was relied upon in making the determination and that a copy of such rule will be provided
                    to the Claimant free of charge at the Claimant’s request; and

              

      

      

      

      
        	
                (v)

              	
                A description of the Plan’s appeal procedures and the time limits applicable to such procedures, including a
                    statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA following a denial of the appeal of the denial of the benefits claim.

              

      

      

      

      
        	
                (c)

              	
                Review
                        Procedures.  A request for review of a denied claim must be made in writing to the Plan Administrator within sixty (60) days after receiving notice of denial (one hundred eighty (180) days in the case of a claim involving
                    Disability benefits). The decision upon review will be made within sixty (60) days after the Plan Administrator’s receipt of a request for review (forty-five (45) days in the case of a claim involving Disability benefits), unless
                    special circumstances require an extension of time for processing, in which case a decision will be rendered not later than one hundred twenty (120) days after receipt of a request for review (ninety (90) days in the case of a claim for
                    Disability benefits). A notice of such an extension must be provided to the Claimant within the initial sixty (60) day period (the initial forty-five (45) day period in

              

      

      
        
          

      

      

      

      the case of a claim for Disability benefits) and must explain the special circumstances and provide an
          expected date of decision. The reviewer shall afford the Claimant an opportunity to review and receive, without charge, all relevant documents, information and records and to submit issues and comments in writing to the Plan Administrator. The
          reviewer shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim regardless of whether the information was submitted or considered in the benefit determination.  Upon
          completion of its review of an adverse initial claim determination, the Plan Administrator will give the Claimant, in writing or by electronic notification, a notice containing:

      

      

      
        	
                (i)

              	
                its decision;

              

      

      

      

      
        	
                (ii)

              	
                the specific reasons for the decision;

              

      

      

      

      
        	
                (iii)

              	
                the relevant Plan provisions on which its decision is based;

              

      

      

      

      
        	
                (iv)

              	
                a statement that the Claimant is entitled to receive, upon request and without charge, reasonable access to,
                    and copies of, all documents, records and other information in the Plan’s files which is relevant to the Claimant’s claim for benefit;

              

      

      

      

      
        	
                (v)

              	
                a statement describing the Claimant’s right to bring an action for judicial review under Section 502(a) of
                    ERISA; and

              

      

      

      

      
        	
                (vi)

              	
                In the case of any claim involving Disability benefits, a copy of any internal rule, guideline, protocol, or
                    other similar criterion that was relied upon in making the adverse determination on review or a statement that a copy of the rule, guideline, protocol or other similar criterion was relied upon in making the adverse determination on
                    review and that a copy of such rule, guideline, protocol, or similar criterion will be provided without charge to the Claimant upon request.

              

      

      

      

      Unless a Claimant voluntarily avails himself or herself of the procedures set forth in Section 9.2
          below, all interpretations, determinations and decisions of the Plan Administrator in respect of any claim shall be made in its sole discretion based on the applicable Plan documents and shall be final, conclusive and binding on all parties.

      

      

      
        	
                (d)

              	
                Calculation
                        of Time Periods. For purposes of the time periods specified in this Article, the period of time during which a benefit determination is required to be made begins at the time a claim is filed in accordance with the Plan
                    procedures without regard to whether all the information necessary to make a decision accompanies the claim. If a period of time is extended due to a Claimant’s failure to submit all information necessary, the period for making the
                    determination shall be tolled from the date the notification is sent to the Claimant until the date the Claimant responds.

              

      

      

      

      
        	
                (e)

              	
                Failure of
                        Plan to Follow Procedures. If the Plan fails to follow the claims procedure required by this Article, a Claimant shall be entitled to pursue any available remedy under Section 502(a) of ERISA on the basis that the Plan
                    has failed to

              

      

      
        
          

      

      

      

      provide reasonable claims procedure that would yield a decision on the merits of the claim.

      

      

      
        	
                (f)

              	
                Failure of
                        Claimant to Follow Procedures. A Claimant’s compliance with the foregoing provisions of this Article is a mandatory prerequisite to the Claimant’s right to commence any legal action with respect to any claim for benefits
                    under the Plan.

              

      

      

      

      
        	
                8.2

              	
                Arbitration
                        of Claims. Instead of pursuing his or her claim in court, a Participant may voluntarily agree that all claims or controversies arising out of or in connection with this Plan shall, subject to the initial review provided
                    for in the foregoing provisions of this Article, be resolved through arbitration as provided in this Article. Except as otherwise provided or by mutual agreement of the parties, any arbitration shall be administered under and by the
                    Judicial Arbitration & Mediation Services, Inc. (“JAMS”), in accordance with the JAMS procedure then in effect. The arbitration shall be held in the JAMS office nearest to where the Claimant is or was last employed by the Plan
                    Sponsor or at a mutually agreeable location. The prevailing party in the arbitration shall have the right to recover its reasonable attorney’s fees, disbursements and costs of the arbitration (including enforcement of the arbitration
                    decision), subject to any contrary determination by the arbitrator. If the Claimant voluntarily avails himself or herself of the procedures set forth in this Section 9.2, all determinations of the arbitrators in respect of any claim
                    shall be final, conclusive and binding on all parties.

              

      

      

      

      ARTICLE 9.

      The Trust

      

      

      
        	
                9.1

              	
                Establishment
                        of Trust.  The Plan Sponsor may establish a Trust. If the Plan Sponsor establishes a Trust, all benefits payable under this Plan to a Participant shall be paid directly by the Plan Sponsor from the Trust. To the extent
                    such benefits are not paid from the Trust, the benefits shall be paid from the general assets of the Plan Sponsor.  The Trust, if any, shall be an irrevocable grantor trust which conforms to the terms of the model trust as described in
                    IRS Revenue Procedure 92-64, I.R.B. 1992-33. If the Plan Sponsor establishes a Trust, the assets of the Trust will be subject to the claims of the Plan Sponsor’s creditors in the event of its insolvency. Except as may otherwise be
                    provided under the Trust, the Plan Sponsor shall not be obligated to set aside, earmark or escrow any funds or other assets to satisfy its obligations under this Plan, and the Participant and/or his or her designated Beneficiaries shall
                    not have any property interest in any specific assets of the Plan Sponsor other than the unsecured right to receive payments from the Plan Sponsor, as provided in this Plan.

              

      

      

      

      
        	
                9.2

              	
                Interrelationship
                        of the Plan and the Trust. The provisions of the Plan shall govern the rights of a Participant to receive distributions pursuant to the Plan. The provisions of the Trust (if established) shall govern the rights of the
                    Participant and the creditors of the Plan Sponsor to the assets transferred to the Trust. Each shall at all times remain liable to carry out its obligations under the Plan. The Plan Sponsor’s obligations under the Plan may be satisfied
                    with Trust assets distributed pursuant to the terms of the Trust.

              

      

      

      

      
        	
                9.3

              	
                Contribution
                        to the Trust. Amounts may be contributed by the Plan Sponsor to the Trust at the sole discretion of the Plan Sponsor.

              

      

      
        
          

      

      

      

      ARTICLE 10.

      Miscellaneous

      

      

      
        	
                10.1

              	
                Validity.
                    In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal or invalid
                    provision had never been inserted herein. To the extent any provision of the Plan is determined by the Plan Administrator (acting in good faith), the Internal Revenue Service, the United States Department of the Treasury or a court of
                    competent jurisdiction to fail to comply with Section 409A with respect to any Participant or Participants, such provision shall have no force or effect with respect to such Participant or Participants.

              

      

      

      

      
        	
                10.2

              	
                Nonassignability.
                    Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts,
                    if any, payable hereunder, or any part hereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure,
                    attachment, garnishment (except to the extent the Plan Sponsor may be required to garnish amounts from payments due under this Plan pursuant to applicable law) or sequestration for the payment of any debts, judgments, alimony or
                    separate maintenance owed by a Participant or any other person, be transferable by operation of law in the event of a Participants’ or any other persons’ bankruptcy or insolvency or be transferable to a spouse as a result of a property
                    settlement or otherwise. If any Participant, Beneficiary or successor in interest is adjudicated bankrupt or purports to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber transfer, hypothecate, alienate
                    or convey in advance of actual receipt, the amount, if any, payable hereunder, or any part thereof, the Plan Administrator, in its discretion, may cancel such distribution or payment (or any part thereof) to or for the benefit of such
                    Participant, Beneficiary or successor in interest in such manner as the Plan Administrator shall direct.

              

      

      

      

      
        	
                10.3

              	
                Not a
                        Contract of Employment. The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between the Plan Sponsor and the Participant. Nothing in this Plan shall be deemed to give a
                    Participant the right to be retained in the service of the Plan Sponsor as an employee or to interfere with the right of the Plan Sponsor to discipline or discharge the Participant at any time.

              

      

      

      

      
        	
                10.4

              	
                Governing
                        Law. Subject to ERISA, the provisions of this Plan shall be construed and interpreted according to the internal laws of the Commonwealth of Pennsylvania, without regard to its conflicts of laws principles.

              

      

      

      

      
        	
                10.5

              	
                Notice.
                    Any notice, consent or demand required or permitted to be given under the provisions of this Plan shall be in writing and shall be signed by the party giving or making the same. If such notice, consent or demand is mailed, it shall be
                    sent by United States certified mail, postage prepaid, addressed to the addressee’s last known address as shown on the records of the Plan Sponsor. The date of such mailing shall be deemed the date of notice consent or demand. Any
                    person may change the address to which notice is to be sent by giving notice of the change of address in the manner aforesaid.

              

      

      
        
          

      

      

      

      
        	
                10.6

              	
                Coordination
                        with Other Benefits. The benefits provided for a Participant and Participant’s Beneficiary under the Plan are in addition to any other benefits available to such Participant under any other plan or program for Employees
                    of the Plan Sponsor. The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.

              

      

      

      

      
        	
                10.7

              	
                Compliance.
                    A Participant shall have no right to receive payment with respect to the Participant’s Account balance until all legal and contractual obligations of the Plan Sponsor relating to establishment of the Plan and the making of such payments
                    shall have been complied with in full.

              

      

      

      

      
        	
                10.8

              	
                Successor
                        Company. The Plan will be continued after a sale of assets of the Plan Sponsor, or a merger or consolidation of the Plan Sponsor into another corporation or entity.

              

      

      

      

      
        	
                10.9

              	
                Section
                        409A Compliance. The Plan is intended to comply with the applicable requirements of Section 409A, and shall be administered in accordance with Section 409A to the extent Section 409A applies to the Plan. Notwithstanding
                    anything in the Plan to the contrary, distributions from the Plan may only be made in a manner, and upon an event, permitted by Section 409A. If a payment is not made by the designated payment date under the Plan, the payment shall be
                    made by December 31 of the calendar year in which the designated payment date occurs. Each installment payment shall be treated as a separate payment for purposes of Section 409A. To the extent that any provision of the Plan would cause
                    a conflict with the applicable requirements of Section 409A, or would cause the administration of the Plan to fail to satisfy the applicable requirements of Section 409A, such provision shall be deemed null and void.  In no event shall
                    a Participant, directly or indirectly, designate the calendar year of payment. Notwithstanding anything in the Plan to the contrary, this Plan may be amended by the Plan Sponsor at any time, retroactively if required, to the extent
                    required to conform the Plan to Section 409A. No election made by a Participant hereunder, and no change made by a Participant to a previous election shall be accepted by the Plan Sponsor if the Plan Sponsor determines that acceptance
                    of such election or change could violate any of the requirements of Section 409A, resulting in early taxation and penalties.

              

      

      

      

      [Signature Page Follows]

      
        
          

      

      

      

      IN WITNESS WHEREOF,
          the Plan Sponsor has signed this Plan document as of

       , 20 .

      

      

      	
              ATTEST/WITNESS

            	 	
              For: Participant

            
	
              (Signature)

            	 	
              (Signature)

            
	
              (Print Name)

            	 	
              (Print Name)

            
	 	 	
              (Title)

            
	 	 	
              (Date)

            
	
              ATTEST/WITNESS

            	 	
              For:  The York Water Company

            
	
              (Signature)

            	 	
              (Signature)

            
	
              (Print Name)

            	 	
              (Print Name)

            
	 	 	
              (Title)

            
	 	 	
              (Date)

            

      
        
          

      

      

      

      PLAN
              ENROLLMENT KIT

      

      

      for the

      

      

      The York Water Company

      Deferred Compensation Plan For Employees Ineligible For A Defined Benefit
          Pension Plan

      

      

      

      

      

      

      

      

      

      

      

      

      Contents:

      

      

      Participant Data Participation Agreement

      Plan Year Initial Enrollment Form

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      	
               

              PLEASE COMPLETE EACH FORM INCLUDED IN THIS KIT. PLEASE PRINT IN INK. UPON COMPLETION OF
                  THIS PLAN ENROLLMENT KIT, PLEASE REVIEW TO ENSURE THAT EACH FORM IS COMPLETELY FILLED OUT AND THAT YOU HAVE SIGNED WHERE APPLICABLE.

               

              RETURN ALL FORMS TO YOUR PLAN ADMINISTRATOR

            

      

      

      
        
          

      

      

      

      The York Water Company

      

      

      Deferred Compensation Plan For Employees Ineligible For A Defined Benefit
          Pension Plan

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      	
              PARTICIPANT DATA

            

      

      

      

      

      

      

      INSTRUCTIONS:  Please complete all information below.

      

      

      (Please print)

      

      

      

      

      

      

      	
              Last Name

            	
              First Name

            	
              Middle Initial

            
	
              Address

            	
              City

            	 	
              State

            	
              Zip Code

            
	
              Date of Birth (mm/dd/yyyy)

            	 	
              Date of Hire (mm/dd/yyyy)

            

      
        
          

      

      

      

      DEFERRED COMPENSATION PLAN FOR EMPLOYEES INELIGIBLE FOR
          A DEFINED BENEFIT PLAN ”

      

      

      	
              PARTICIPATION AGREEMENT

            
	
              (Please print)

            	 	 
	
              Last Name

            	
              First Name

            	
              Middle Initial

            

      

      

      The Plan Sponsor and the Plan Administrator designate the above named Eligible
          Employee as a Plan Participant. All capitalized terms used herein are defined in the The York Water Company Deferred Compensation Plan For Employees Not Eligible For A Defined Benefit Pension Plan..

      

      

      In consideration of his or her designation as a Participant, the undersigned
          Eligible Employee hereby agrees and acknowledges as follows:

      

      

      
        	
                1.

              	
                I have received a copy of
                    The York Water Company Deferred Compensation Plan For Employees Not Eligible For A Defined Benefit Pension Plan, as currently in effect.

              

      

      

      

      
        	
                2.

              	
                I agree to be bound by all
                    of the terms and conditions of the Plan, including the determinations of the Plan Administrator, and to perform any and all acts required by me hereunder.

              

      

      

      

      
        	
                3.

              	
                I have the right to
                    designate the Beneficiary or Beneficiaries, and thereafter to change the Beneficiary or Beneficiaries, of any death benefit payable under the Plan, by completing and delivering to the Plan Administrator a form designating his or her
                    Beneficiary.

              

      

      

      

      
        	
                4.

              	
                I understand that the Plan
                    may have to be amended to comply with Section 409A, and I hereby agree to execute any documents necessary to make such amendments.

              

      

      

      

      
        	
                5.

              	
                I understand that my
                    participation in the Plan can have tax and financial consequences for my Beneficiaries and me. I have had the opportunity to consult with my own tax, financial and legal advisors before deciding to participate in the Plan.

              

      

      

      

      
        	
                6.

              	
                I understand that my Plan
                    benefits are subject to the claims of my Plan Sponsor’s creditors should my Plan Sponsor become bankrupt or insolvent.

              

      

      

      

      
        	
                7.

              	
                I understand that the Plan
                    Sponsor Contributions, Account Earnings and Tax Savings (if any) shall vest based on Section 4.1 of the Plan.

              

      

      

      

      
        	
                8.

              	
                I understand that the Plan
                    Agreement and any accompanying forms shall be interpreted in accordance with, and incorporate the terms and conditions required by Section 409A. I further understand that the Plan Administrator may, in its discretion, adopt such
                    amendments to the Plan and any accompanying forms or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Plan Administrator determines are
                    necessary or appropriate to comply with the requirements of Section 409A. Finally, I understand that the time or form of distributions that I may be allowed to elect (if any) may not be accelerated except as otherwise permitted by
                    Section 409A.

              

      

      

      

      	
              AGREED AND ACCEPTED BY THE PARTICIPANT

            
	
              Signature of Participant

            	 	
              Date

            
	
              AGREED AND ACCEPTED BY THE PLAN SPONSOR

            
	
              For the Plan Sponsor

            	 	
              Date

            

      
        
          

      

      

      

      The York Water Company Deferred Compensation Plan For
          Employees Not Eligible For a Defined Benefit Pension Plan

      	
              ENROLLMENT FORM

            

       

      (Please print)

      

      

      

      

      

      

      	
              Last Name

            	
              First Name

            	
              Middle Initial

            
	
              SECTION I:  DEFERRAL ELECTIONS

            	 

      I hereby elect to defer my Base Salary as indicated below. I understand that this deferral election is subject to all of the applicable terms of the Plan, including the requirement that I may not change my election once
            made during a Plan Year.  I understand that my election will continue until, and unless, I change my election in accordance to the provisions of the Plan. All capitalized terms used herein are defined in the The York Water Company Deferred
            Compensation Plan For Employees Not Eligible For a Defined Benefit Pension Plan, unless otherwise indicated by the context.

      

      

      
        	
                ☐

              	
                I elect to defer percent of my Base Salary as of the beginning
                    of each Plan Year until I elect a different deferral percentage in accordance with the provisions of the Plan.

              

      

      

      

      I understand that the Company will contribute a percentage equal to my deferral election, not to
          exceed 5.0%, in accordance pursuant to section 3.2.

      	
              SECTION II: MARGINAL FEDERAL AND STATE TAX RATE

            

      

      

      

      

      The marginal federal and state tax rate for the term of this contract shall be .

      	
              SECTION III:  DISTRIBUTION ELECTION

            

      

      

      

      

      
        	
                ☐

              	
                I hereby elect that following my Separation From Service my vested
                    benefit be paid to me, unless prohibited by 409a regulations, in one hundred and eighty (180) equal monthly payments beginning at the later of age 60 or my Separation From Service date.

              

      

      

      

      
        	
                ☐

              	
                I hereby elect that following my Separation From Service my vested
                    benefit be paid to me, unless prohibited by 409a regulations, in two-hundred and forty (240) equal monthly payments beginning at the later of age 60 or my Separation From Service date.

              

      

      

      

      I understand that distribution election changes must be made more than twelve (12) months in advance
          of the initial distribution date.

      

      

      

      

      

      

      	
              AGREED AND ACCEPTED BY THE PARTICIPANT

            
	
              Signature of Participant

            	 	
              Date

            
	
              AGREED AND ACCEPTED BY THE PLAN SPONSOR

            
	
              For the Plan Sponsor

            	 	
              Date

            

      
        
          

      

      	
              SECTION IV:  BENEFICIARY DESIGNATION

            

       

      

      

      I designate the Beneficiary(ies) below to receive any benefits payable under this Plan on account of my death:

      

      

      	
              PRIMARY
                    BENEFICIARY(IES):

              Name

            	 	
              Percentage of Benefits

            	 	
              Relationship to Participant

            	 	
              Social Security Number

            

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      CONTINGENT
            BENEFICIARY(IES) (Will receive indicated portions of my Vested Account balance if no primary Beneficiaries survive the Participant.)

      

      

      	
               

              Name

            	 	
              Percentage of Benefits

            	 	
              Relationship to Participant

            	 	
              Social Security Number

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
               

              AGREED AND ACCEPTED BY THE PARTICIPANT

            	 	 	 	 
	
              Signature of Participant

            	 	
              Date

            	 	 	 	 
	
              AGREED AND ACCEPTED BY THE PLAN SPONSOR

            	 	 	 	 
	
              For the Plan Sponsor

            	 	
              Date

            	 	 	 	 

      

      

      
        
          

      

      

      

      Schedule 10.2

      

      

      

      

      	
              Name

            	
              Marginal Federal and State Tax Rate

            
	
              Natalee Colón

            	
              0.4059Exhibit
10.1

 

Certain
information identified by bracketed asterisks ([* * *]) has been omitted from this exhibit because it is both not material and
would be competitively harmful if publicly disclosed.

 

ASSET
PURCHASE AGREEMENT

 

THIS
ASSET PURCHASE AGREEMENT (this “Purchase Agreement”) is entered into and effective as of February 18, 2019
(the “Effective Date”), between Eton Pharmaceuticals, Inc., a Delaware corporation (“Eton”),
with a place of business at 21925 Field Pkwy, Suite 235, Deer Park, Illinois 60010 and Bausch Health Ireland Limited, a limited
liability company (“BIRL”) registered in Ireland (registered company number 513130) whose registered office
is at 3013 Lake Drive, Citywest Business Campus, Dublin 24, Ireland (Eton and BIRL are collectively referred to herein as the
“parties”). The parties hereby agree as follows:

 

Recitals

 

WHEREAS,
Eyemax LLC, a Massachusetts limited liability company (“Eyemax”) granted Eton an exclusive right and license
to develop, manufacture and commercialize products in the Territory (as such terms are defined herein) pursuant to that certain
Exclusive Sales and Marketing Agreement, dated August 11, 2017 (the “2017 Agreement”) by and between Eton and
Eyemax;

 

WHEREAS,
the 2017 Agreement was amended, restated and superseded by that certain Amended and Restated Agreement (the “2019
Amended and Restated Agreement”), dated February 18, 2019, by and between Eton and Eyemax, and pursuant to which Eyemax
sold, conveyed, transferred, assigned and delivered to Eton, all of Eyemax’s right, title and interest in and to certain
assets, as further described in the 2019 Amended and Restated Agreement; and

 

WHEREAS,
BIRL and Eton desire to enter into a transaction, pursuant to which BIRL will purchase and acquire from Eton, and Eton will
sell, convey, transfer, assign and deliver to BIRL, all of Eton’s right, title and interest in and to all of the Purchased
Assets as defined in Section 2.1 herein (the “Acquisition”).

 

Agreement

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Eton and BIRL hereby agree as follows:

 

1.
Definitions. For the purposes of this
Purchase Agreement, the following terms shall have the respective meanings set forth below, and grammatical variations of such
terms shall have corresponding meanings:

 

1.1
“2017 Agreement” shall have the meaning provided in the recitals above.

 

1.2
“2019 Amended and Restated Agreement” shall have the meaning provided in the recitals above.

 

    	1

    	 

    

 

1.3
“Accounting Standards” means U.S. GAAP (United States Generally Accepted Accounting Principles).

 

1.4
“Acquisition” shall have the meaning provided in the recitals above.

 

1.5
“Acquisition Transaction” shall have the meaning provided in Section 9.5.

 

1.6
“Actual Combination Product Net Sales” shall have the meaning provided in Section 5.4.

 

1.7
“Affiliate” shall mean, with respect to any Person, any other Person which directly or indirectly controls,
is controlled by, or is under common control with, such Person. A Person shall be regarded as in control of another Person if
it owns, or directly or indirectly controls, more than fifty percent (50%) of the voting stock or other ownership interest of
the other Person, or if it directly or indirectly possesses the power to direct or cause the direction of the management and policies
of the other Person by any means whatsoever.

 

1.8
“Allocation Schedule” shall have the meaning provided in Section 5.8.

 

1.9
“Ancillary Agreements” shall mean the Bill of Sale and the General Assignment and Assumption Agreement.

 

1.10
“Assigned Technology” shall have the meaning provided in Section 2.1.1.

 

1.11
“Assumed Liabilities” shall have the meaning provided in Section 2.2.

 

1.12
“Bankruptcy Exception” shall have the meaning provided in Section 4.1.2.

 

1.13
“BIRL” shall have the meaning provided in the introductory paragraph above.

 

1.14
“BIRL Fundamental Representations” shall have the meaning provided in Section 6.1.2.

 

1.15
“BIRL Indemnitees” shall have the meaning provided in Section 6.2.

 

1.16
“Bill of Sale” shall have the meaning provided in Section 2.5(a).

 

1.17
“Calendar Quarter” means a calendar quarter ending on the last day of March, June, September, or December.

 

1.18
“Cap” shall have the meaning provided in Section 6.6.2.

 

1.19
“Change of Control Transaction” shall have the meaning provided in Section 1.84.

 

1.20
“Closing” shall have the meaning provided in Section 2.3.

 

1.21
“Closing Date” shall have the meaning provided in Section 2.3.

 

    	2

    	 

    

 

1.22
“Combination Product” shall mean a product comprising: a Single Agent Product and one or more products containing
one or more Other Actives as the sole active pharmaceutical ingredient(s) (each, an “Other Product”), as separate
products in a co-packaged form sold for a single price.

 

1.23
“Competing Business” shall have the meaning provided in Section 9.5.

 

1.24
“Confidential Information” shall have the meaning provided in Section 8.1.1.

 

1.25
“Disclosure Schedule” shall have the meaning provided in Section 4.1.

 

1.26
“Distribution Target” shall have the meaning provided in Section 3.3.

 

1.27
“Distribution Target Shortfall Payment” shall have the meaning provided in Schedule 3.3.

 

1.28
“Effective Date” shall have the meaning set forth in the introductory paragraph above.

 

1.29
“Eton” shall have the meaning provided in the introductory paragraph above.

 

1.30
“Eton Fundamental Representations” shall have the meaning set forth in Section 6.1.1.

 

1.31
“Eton Indemnitees” shall have the meaning set forth in Section 6.3.

 

1.32
“Eton IP Rights” shall mean, collectively, the Eton Know-How Rights, Eton Patent Rights and Eton Registrations.

 

1.33
“Eton Know-How Rights” shall mean all trade secrets, clinical data and other know-how rights in which Eton
or its Affiliates heretofore has an ownership or (sub)licensable interest, in and to the Technology.

 

1.34
“Eton Patent Rights” shall mean (a) all patents that claim or cover the Technology in which Eton or its Affiliates
heretofore or hereafter has an ownership or (sub)licensable interest, (b) all divisions, continuations, continuations-in-part,
that claim priority to, or common priority with, the patent applications described in clause (a) above or the patent applications
that resulted in the patents described in clause (a) above, and (c) all patents that have issued or in the future issue from any
of the foregoing patent applications, including utility models, design patents and certificates of invention, together with any
reissues, reexaminations, renewals, extensions or additions thereto.

 

1.35
“Eton Registrations” shall mean all Regulatory Filings and Regulatory Approvals (and applications therefor)
regarding Products in which Eton or its Affiliates heretofore or hereafter has an ownership or (sub)licensable interest, including
ANDA No. 208158.

 

1.36
[* * *]

 

1.37
“[* * *] Consent” shall have the meaning provided in Section
2.5(c).

 

    	3

    	 

    

 

1.38
“[* * *] Agreement” shall mean [*
* *].

 

1.39
“Excluded Liabilities” shall have the meaning provided in Section 2.2.

 

1.40
“Eyemax” shall have the meaning provided in the recitals above.

 

1.41
“FDA” shall mean the Food and Drug Administration of the United States or any successor thereto.

 

1.42
“First Commercial Sale” shall mean, with respect to any Product, the first sale of such Product, for commercial
purposes, to a Third Party after receipt of all necessary Regulatory Approvals for such Product.

 

1.43
“Force Majeure Event” means an event, act, occurrence, condition, or state of facts, in each case outside the
reasonable control of a party, including acts of God; acts of any government; any rules, regulations, or orders issued by any
Governmental Authority or by any officer, department, agency or instrumentality thereof; fire; storm; flood; earthquake; accident;
war; rebellion; insurrection; riot; terrorism, and invasion, that interfere with the normal business operations of such party.

 

1.44
“General Assignment and Assumption Agreement” shall have the meaning provided in Section 2.5(b).

 

1.45
“Governmental Authorities” shall mean all agencies, authorities, bodies, boards, commissions, courts, instrumentalities,
legislatures and offices of any nature whatsoever of any government or political subdivision, whether foreign, federal, state,
county, district, municipality, city or otherwise.

 

1.46
“Indemnifying Party” shall have the meaning provided in Section 6.4.

 

1.47
“Indemnitee” shall have the meaning provided in Section 6.4.

 

1.48
“Laws” shall mean any federal, state, foreign or local statute, law, ordinance, regulation, rule, code, Order,
other requirement or rule of law.

 

1.49
“Liability” shall mean any direct or indirect indebtedness, liability, assessment, expense, claim, loss, damage,
deficiency, obligation or responsibility, known or unknown, disputed or undisputed, joint or several, vested or unvested, executory
or not, fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured, determinable or undeterminable,
accrued or unaccrued, absolute or not, actual or potential, contingent or otherwise (including any liability under any guarantees,
letters of credit, performance credits or with respect to insurance loss accruals).

 

1.50
“[* * *]” shall have the meaning provided in Section 5.6.1.

 

1.51
“License” shall mean a license or sublicense under the Eton IP Rights or any portion thereof to sell a Single
Agent Product in the Territory.

 

    	4

    	 

    

 

1.52
“Licensee” shall mean any Third Party to which BIRL or its Affiliate or any Licensee grants a License.

 

1.53
“Lien” shall mean any mortgage, pledge, lien, conditional sale agreement, security title, encumbrance, easement,
right of way, charge or other title retention agreement of any kind or nature.

 

1.54
“Losses” shall have the meaning provided in Section 6.2.

 

1.55
“Market Share Threshold” shall have the meaning provided in Section 5.3.3.

 

1.56
“Net Sales” means[* * *].

 

1.57
“Order” shall mean any order, judgment, preliminary or permanent injunction, temporary restraining order, award,
citation, decree, consent decree or writ of any Governmental Authority.

 

1.58
“Other Active” shall mean any active pharmaceutical ingredient other than [*
* *].

 

1.59
“Other Product” shall have the meaning provided in Section 1.22.

 

1.60
“parties” shall have the meaning provided in the introductory paragraph above.

 

1.61
“Permitted Liens” shall mean each of the following as are immaterial, individually or in the aggregate, in
amount and would not impair the ownership or use of the Purchased Assets: (a) liens for current Taxes not yet due and payable
or that are being contested in good faith by appropriate proceedings; (b) deposits or pledges made in connection with, or to secure
payment of, workers’ compensation, unemployment insurance or similar programs mandated by applicable Law or governmental
regulations; and (c) statutory or common Law liens in favor of carriers, warehousemen, mechanics and materialmen, to secure claims
for labor, materials or supplies, and other like liens.

 

1.62
“Person” shall mean any individual, partnership, firm, corporation, association, trust, unincorporated organization
or other entity, as well as any syndicate or group of any of the foregoing.

 

1.63
“Pre-Closing Tax Period” shall have the meaning provided in Section 7.2.

 

1.64
“Product” shall mean [* * *].

 

1.65
“Pro Forma Net Sales” shall have the meaning provided in Schedule 3.3.

 

1.66
“Program” shall mean all activities related to Products, including all research, development, regulatory, manufacturing
and other related activities, conducted by or on behalf of Eton or its Affiliates.

 

1.67
“Purchase Agreement” shall have the meaning provided in the introductory paragraph above.

 

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1.68
“Purchase Price” shall have the meaning provided in Section 2.3.

 

1.69
“Purchased Assets” shall have the meaning provided in Section 2.1.

 

1.70
“Purchaser FDA Letter” shall mean the letter from BIRL to the FDA, in the form attached as Exhibit E, to be
filed with the FDA on the Closing Date in accordance with Section 3.1.

 

1.71
“Records” shall mean (a) all documentation comprising the Eton Registrations, including all submissions, reports
and correspondence relating thereto, (b) all tangible documentation comprising the other Eton IP Rights, and (c) any other books
and records relating exclusively to Products or the Program, or any other Purchased Assets, to the extent owned by or maintained
by or on behalf of Eton or any of its Affiliates.

 

1.72
“Regulatory Approval” means, with respect to a Product in the Territory, any approval, registration, license,
or authorization from the FDA or any other Regulatory Authority in the Territory that is necessary to market and sell such Product
in the Territory.

 

1.73
“Regulatory Authority” shall mean any regulatory agency, ministry, department or other governmental body having
authority in any country or region to control the development, manufacture, marketing, and sale of pharmaceutical products, including
the FDA.

 

1.74
“Regulatory Filing” shall mean any New Drug Application or Abbreviated New Drug Application, or any other application,
notification or submission made to or with the FDA for Regulatory Approval of a product, together with all amendments and supplements
to any of the foregoing.

 

1.75
“Royalty Term” shall have the meaning provided in Section 5.3.1.

 

1.76
“Seller FDA Letter” shall mean the letter from Eyemax to the FDA, in the form attached as Exhibit D, to be
filed with the FDA on the Closing Date in accordance with Section 3.1.

 

1.77
“Selling Party” shall have the meaning provided in Section 1.56.

 

1.78
“Single Agent Product” shall mean a Product containing [* * *] as
its sole active pharmaceutical ingredient, the Regulatory Approval of which does or did not require any additional clinical studies
to be conducted (being in addition to those already conducted by or on behalf of Eton as of the Effective Date), and expressly
excludes any Product containing both [* * *] and an Other Active.

 

1.79
“Tax Returns” means any and all reports, returns (including information returns), declarations, or statements
relating to Taxes, including any schedule or attachment thereto and any related or supporting workpapers or information with respect
to any of the foregoing, including any amendment thereof filed with or submitted to any Governmental Entity in connection with
the determination, assessment, collection or payment of Taxes or in connection with the administration, implementation or enforcement
of or compliance with any legal requirement relating to any Tax.

 

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1.80
“Taxes” means any and all taxes, charges, fees, duties, contributions, levies or other similar assessments
or liabilities, including, without limitation, income, gross receipts, corporation, ad valorem, premium, value-added, net worth,
capital stock, capital gains, documentary, recapture, alternative or add-on minimum, disability, registration, recording, excise,
real property, personal property, sales, use, license, lease, service, service use, transfer, withholding, employment, unemployment,
insurance, social security, national insurance, business license, business organization, environmental, workers compensation,
payroll, profits, severance, stamp, occupation, escheat, windfall profits, customs duties, franchise, estimated and other taxes
of any kind whatsoever imposed by the United States of America or any state, local or other government, or any agency or political
subdivision thereof, and any interest, fines, penalties, assessments or additions to tax imposed with respect to such items or
any contest or dispute thereof.

 

1.81
“Technology” shall mean, collectively, all forms and formulations comprising [*
* *], all methods of manufacture or use thereof, and all data, information, compositions, formulae, procedures, protocols,
techniques and results of experimentation and testing and other technology relating to or reasonably necessary or useful to make,
use, sell, offer for sale, import, develop, seek regulatory approval, market, commercialize or otherwise exploit the foregoing.

 

1.82
“Territory” shall mean collectively the United States of America and all of its territories and possessions.

 

1.83
“Third Party” shall mean any Person other than BIRL, Eton or their respective Affiliates.

 

1.84
“Third Party Acquiror” means a third party which acquires Eton or BIRL, as the case may be, whether by merger,
sale of stock, sale of assets or otherwise (a “Change of Control Transaction”), which Third Party (a) is not
the surviving entity following a merger of Eton or BIRL, as the case may be, and (b) was not an Affiliate of Eton or BIRL, as
applicable, or an officer, director, employee or consultant of Eton or any of its subsidiaries or BIRL or any of its subsidiaries,
as applicable, nor a stockholder of Eton or any of its subsidiaries or, as applicable, of BIRL or any of its subsidiaries, prior
to the closing of such Change of Control Transaction.

 

1.85
“Transfer Taxes” shall have the meaning provided in Section 7.3.

 

2.
Purchase and Sale of Purchased Assets.

 

2.1
Purchased Assets. Subject to the terms and conditions of this Purchase Agreement, as of the Closing Date, Eton hereby sells,
conveys, transfers, assigns and delivers to BIRL, and BIRL hereby purchases and acquires from Eton all of Eton’s right,
title and interest in and to all of the following, free and clear of any and all Liens (collectively, the “Purchased
Assets”):

 

2.1.1
the Eton IP Rights and the Technology, in each case, in the Territory, and all rights to sue for or assert claims against and
remedies against past, present or future infringements of any or all of the Assigned Technology and rights of priority and protection
of interests therein and to retain any and all amounts therefrom (collectively, the “Assigned Technology”);

 

2.1.2
the [* * *] Agreement and all rights of Eton thereto as of the Closing Date;

 

    	7

    	 

    

 

2.1.3
the Records; and

 

2.1.4
all goodwill related to the Assigned Technology.

 

Subject
to the representations and warranties in this Purchase Agreement, the Purchased Assets shall be sold to BIRL on an “as-is”
basis as of the Closing Date. BIRL agrees that the Purchased Assets shall be delivered without any Eton warranties of whatever
kind except for the representations and warranties provided in Section 4.1 of this Purchase Agreement. All assets of Eton and
its Affiliates not specifically described in Section 2.1 shall not be part of the sale and purchase contemplated hereunder and
shall remain the property of Eton after the Closing Date.

 

2.2
Assumed Liabilities. Except for the Assumed Liabilities (as defined below), BIRL shall not, by virtue of its purchase of
the Purchased Assets, assume or become responsible for any Liabilities of Eton or any other Person in connection with this Purchase
Agreement. Upon and subject to the terms, conditions, representations and warranties of Eton contained herein, on the Closing
Date, BIRL shall assume and agree to pay, perform, and discharge in a timely manner when due any and all Liabilities of Eton arising
under the [* * *] Agreement, and, subject to the effectiveness of the transfers
of the Eton Registrations in accordance with Section 3.1, the Eton Registrations, in each case, solely relating to the Territory
and arising during, and relating to, the period on or after the Closing Date, including any Liabilities imposed by applicable
Law with respect to obligations under the [* * *] Agreement or the Eton Registrations,
in each case, solely relating to the Territory and arising during, and relating to, the period on or after the Closing Date (collectively,
with the Liabilities of BIRL and its Affiliates under Section 7, the “Assumed Liabilities”); provided, however,
that the Assumed Liabilities shall exclude any and all Liabilities resulting from any breach of or non-compliance with the
[* * *] Agreement or Eton Registrations by Eton or any of its Affiliates on
or prior to the later of the Closing Date or the date of transfer of such Purchased Assets. All Liabilities of Eton or any of
its Affiliates not specifically described in this Section 2.2 (collectively, with the Liabilities of Eton and its Affiliates under
Section 7, the “Excluded Liabilities”) shall not be assumed by BIRL and shall remain the sole obligation and
responsibility of Eton and its Affiliates after the Closing.

 

2.3
Purchase Price; Payment of Purchase Price; Closing. The aggregate consideration for the sale of the Purchased Assets shall
be (i) the assumption by BIRL of the Assumed Liabilities and (iii) all payments that become due pursuant to Section 5 (collectively,
the “Purchase Price”). The closing of the sale and purchase of the Purchased Assets and the assumption of the
Assumed Liabilities (the “Closing”) shall take place on the same day as, subject to and immediately following,
the closing of the transactions contemplated by the 2019 Amended and Restated Agreement, at the offices of Cooley LLP, located
at 4401 Eastgate Mall, San Diego, California 92121, unless another place is agreed to in writing by the parties hereto or the
parties hereto elect to effect the Closing by exchange of electronic documents in PDF format in lieu of an in-person Closing.
The date on which the Closing occurs is hereinafter referred to as the “Closing Date.”

 

2.4
Transfer of Certain Purchased Assets. Eton shall transfer and deliver all Records (or true and complete copies thereof)
to BIRL on the Closing Date to the extent possible or, to the extent not possible to transfer and deliver such items on the Closing
Date, within [* * *] days following the Closing Date, at BIRL’s expense
for shipping and handling costs, to the locations, and in accordance with the instructions, specified by BIRL. In the event that
any of the abovementioned items reside in digital or electronic format on any equipment that is not included in the Purchased
Assets, then the hard drive or other medium shall be imaged and provided to BIRL in a reasonably accessible format. Eton will,
to the extent any Records exist in a form suitable for electronic transfer, make such transfer electronically.

 

    	8

    	 

    

 

2.5
Eton Closing Deliverables. At the Closing, Eton shall deliver or cause to be delivered to BIRL (unless previously delivered)
the following:

 

(a)
a duly executed counterpart of a bill of sale, substantially in the form of Exhibit A hereto, respecting the sale and transfer
of the applicable Purchased Assets from Eton to BIRL to be effective on the Closing (the “Bill of Sale”);

 

(b)
a duly executed counterpart of an assignment and assumption agreement, substantially in the form of Exhibit B hereto, respecting
the assignment and assumption of the [* * *] Agreement and the Assumed Liabilities
to be effective on the Closing (the “General Assignment and Assumption Agreement”);

 

(c)
a true and complete copy of an assignment and consent agreement substantially in the form of Exhibit C hereto with respect to
the [* * *] Agreement, duly executed by Eyemax and [*
* *] respecting the assignment of the [* * *] Agreement by Eton
to BIRL, to be effective on the Closing (the “[* * *] Consent”);

 

(d)
[reserved];

 

(e)
a copy of the duly executed Seller FDA Letter; and

 

(f)
a certificate of a duly authorized officer of Eton, executed as of the Closing Date, certifying to the effect that the conditions
set forth in Section 9.1 shall have been satisfied.

 

2.6
BIRL Closing Deliverables. At the Closing, BIRL shall deliver or cause to be delivered (unless previously delivered) to
Eton the following:

 

(a)
a duly executed counterpart of the Bill of Sale;

 

(b)
a duly executed counterpart of the General Assignment and Assumption Agreement;

 

(c)
[reserved];

 

(d)
a copy of the duly executed Purchaser FDA Letter; and

 

(e)
a certificate of a duly authorized officer of BIRL, executed as of the Closing Date, certifying to the effect that the conditions
set forth in Section 9.2 shall have been satisfied.

 

2.7
Further Assurances. Eton hereby agrees, without further consideration, to execute and deliver such other instruments of
transfer and take such other action as BIRL or its counsel may reasonably request in order to put BIRL in possession of the Purchased
Assets in accordance with this Purchase Agreement.

 

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2.8
License Grant. On the Closing Date, Eton hereby grants to BIRL a non-exclusive, sublicensable, transferable, fully paid-up,
royalty-free, perpetual license to any assets and rights owned, used or held for use by Eton, or to which Eton has rights (other
than the Purchased Assets), that are related to, but not primarily related to, the Products or the Program in the Territory that
are necessary or useful for the development, manufacturing, commercialization or other exploitation of the Products in the Territory.

 

3.
Regulatory Matters; Commercialization Matters.

 

3.1
Transfer of Eton Registrations; Interim Responsibility.

 

3.1.1
On the Closing Date, Eton shall assign to BIRL any and all Eton Registrations in and for the Territory, in accordance with this
Section 3.1. On the Closing Date, Eton will forward to BIRL complete copies of the Eton Registrations and copies of all correspondence
with, and periodic and other reports (including adverse event reports and the underlying data) to, Regulatory Authorities with
respect to the Products or Eton Registrations. Promptly following the Closing Date, (i) Eton shall submit (or shall cause to be
submitted) the Seller FDA Letter with the FDA and (ii) BIRL shall subsequently submit the Purchaser FDA Letter with the FDA.

 

3.1.2
The parties will cooperate to ensure a smooth transition from Eton to BIRL of all of the activities required to be undertaken
by the holder of the Eton Registrations. Eton will cooperate with BIRL to ensure a smooth transition of the Program and the transfer
of adverse experience reporting obligations from Eton to BIRL. At the reasonable request of BIRL, Eton shall use commercially
reasonable efforts to assist BIRL, at BIRL’s cost, with matters relating to the approval of the Eton Registrations by the
FDA, including reviewing and providing comments on correspondence to and from the FDA with respect to such Eton Registrations
and otherwise advising BIRL on matters relating to such Eton Registrations and their approval.

 

3.1.3
In addition to the obligations set out in Section 3.1.2, Eton shall be responsible, at its costs, for preparing a response [*
* *] and for conducting any technical activities in connection with such response. Eton shall complete such response
in a timely manner, using appropriate resources and skills. BIRL shall have the right to review and provide comments on such response,
which comments shall be incorporated by Eton in such response. [* * *].

 

3.2
Communication With Agencies. After the transfer of the Eton Registrations to BIRL has been completed, BIRL shall have responsibility
for all such communications, and, until such time as the FDA approves the first Product, BIRL shall use commercially reasonable
efforts to obtain approval by the FDA of a Product, including responding in a timely manner to any communications or requests
from the FDA, provided that the application by BIRL (or its Affiliate) for any labelling changes to or for such Product, and any
delays caused thereby, shall not constitute a failure by BIRL to use such commercially reasonable efforts. Until such time as
the FDA approves the first Product, BIRL shall (i) promptly provide Eton with copies of any communications BIRL receives from
the FDA concerning the Products, (ii) provide Eton with draft copies of all proposed communications from BIRL to the FDA with
respect to the Products and (iii) permit Eton with a reasonable period of time (not to exceed [*
* *]) to review and comment on such communications.

 

    	10

    	 

    

 

3.3
Commercialization Matters. BIRL agrees that, upon receipt of all requisite Regulatory Approvals in the Territory by the
FDA of the first Single Agent Product, the First Commercial Sale of such Single Agent Product shall occur within [*
* *] of such approval date, provided, however, if such First Commercial Sale is delayed as a result of a Force Majeure
Event or multiple Force Majeure Events (including delays in obtaining supply of Product caused by or relating to [*
* *] or such other Third Party contract manufacturer), such [* * *] period
shall be extended for the duration of such Force Majeure Event(s). BIRL agrees that, following receipt of the Regulatory Approvals
for the first Single Agent Product, the first Product to be launched in the Territory will be such Single Agent Product. In addition,
VIRL agrees that, on [* * *], VIRL shall achieve the distribution target described
in Schedule 3.3 hereto (the “Distribution Target”), provided that, if BIRL fails to achieve such Distribution
Target, then the sole remedy for such failure by BIRL shall be the payment by BIRL to Eton of an amount equal to the Distribution
Target Shortfall Payment within [* * *] of [*
* *].

 

4.
Representations and Warranties.

 

4.1
Representations and Warranties of Eton. Except as set forth in the disclosure schedule (with specific references to the
section of this Agreement to which the information stated in such disclosure relates) delivered by Eton to BIRL (the “Disclosure
Schedule”), Eton hereby represents and warrants to BIRL as of the Effective Date as follows:

 

4.1.1
Eton is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.

 

4.1.2
Eton has the requisite power and authority and the legal right to execute and deliver this Purchase Agreement, to perform its
obligations hereunder and thereunder, and to consummate the Acquisition. The execution, delivery and performance of this Purchase
Agreement by Eton and the consummation by Eton of the Acquisition have been duly and validly authorized by all necessary action
of Eton, and no other action on the part of Eton is necessary to authorize this Purchase Agreement or to consummate the Acquisition.
This Purchase Agreement has been duly executed and delivered by Eton and, assuming the due authorization, execution and delivery
by BIRL, this Purchase Agreement constitutes a legal, valid and binding obligation of Eton, enforceable against Eton in accordance
with its terms, subject to the effect of any applicable bankruptcy, moratorium, insolvency, reorganization or other similar law
affecting the enforceability of creditors’ rights generally and to the effect of general principles of equity which may
limit the availability of remedies, whether in a proceeding at law or in equity (collectively, the “Bankruptcy Exception”).

 

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4.1.3
All necessary consents, approvals and authorizations of all Governmental Authorities and other Persons required to be obtained
by Eton in connection with this Purchase Agreement and the consummation of the Acquisition have been obtained, including, without
limitation, the written consent of [* * *] to the assignment to BIRL of all
of Eton’s rights and obligations under the [* * *] Agreement and any
necessary consents from Eyemax. Neither the execution or delivery of this Purchase Agreement by Eton does, nor the performance
by Eton of its obligations hereunder or thereunder or the consummation of the Acquisition will: (i) conflict with or violate any
provision of the organizational documents of Eton or any resolutions adopted by the board of directors of Eton, (ii) conflict
with, or constitute a default under, any contractual obligation by which it is bound, including the 2019 Amended and Restated
Agreement, or (iii) conflict with or violate any Law or Order applicable to Eton or by which any of the Purchased Assets or Eton
is bound or affected. Neither the execution or delivery of this Purchase Agreement, nor the performance by Eton of its obligations
hereunder or thereunder or the consummation by Eton of the Acquisition will: (a) result in the creation or imposition of any Lien
on any of the Purchased Assets; or (b) violate or conflict with, or result in a breach of, any provision of, or constitute a default
under (or, with notice or lapse of time or both, would constitute a default under) or give rise to any right of any Person other
than Eton of termination, cancellation or modification, or acceleration of any obligation of Eton or a loss of any rights or benefits
to which Eton is entitled, in each case under any of the terms, conditions or provisions of the [*
* *] Agreement. There are no consents, approvals, permits, authorizations, waivers or other actions by, or filings
with or notifications to, any Governmental Authority that are required to be obtained or made by Eton in connection with the execution,
delivery and performance by Eton of this Purchase Agreement or the performance of Eton’s obligations hereunder and thereunder.

 

4.1.4
There is no claim, hearing, enforcement, audit, investigation, agency proceeding, charge, lawsuit, action or other legal proceeding
pending or, to the knowledge of Eton, currently threatened against Eton that questions the validity of this Purchase Agreement
or the right of Eton to enter into this Purchase Agreement, or to consummate the transactions contemplated hereby. Eton is not
subject to any Order that would reasonably be expected to impair or delay its ability to perform its obligations under this Purchase
Agreement.

 

4.1.5
There is no claim, hearing, enforcement, audit, investigation, agency proceeding, charge, lawsuit, action or other legal proceeding
pending or, to the knowledge of Eton, currently threatened with respect to the Products, the Program, the Eton IP Rights, the
other Purchased Assets or the Assumed Liabilities. There are no judgments or settlements against or amounts with respect thereto
owed by Eton or any of its Affiliates relating to Products, the Program, the Eton IP Rights or the other Purchased Assets. There
is no order, writ, judgment, decision, ruling, subpoena, verdict, injunction, decree, consent decree, stipulation, determination
or award entered, issued, made or rendered by any Governmental Authority that is outstanding against Eton or any of its Affiliates
and that relates to or is reasonably likely to affect the Products, the Program or the Purchased Assets.

 

4.1.6
Neither Eton, its (sub)contractors, nor any of its or their officers, directors, employees or consultants, have been debarred
by the FDA or other applicable governing health authority (or authorities), under any existing or prior Law.

 

4.1.7
Following the closing of the transactions contemplated by the 2019 Amended and Restated Agreement Date, other than Permitted Liens,
Eton shall have good, valid and marketable title to all Purchased Assets. The Purchased Assets include all data and information
generated by or on behalf of, or acquired by, Eton with respect to Products in the Territory. Following the closing of the transactions
contemplated by the 2019 Amended and Restated Agreement Date, all of the Purchased Assets shall be owned by Eton free and clear
of all Liens, other than Permitted Liens, and upon the consummation of the Acquisition, BIRL will acquire ownership of all of
the Purchased Assets, free and clear of all Liens other than Permitted Liens.

 

    	12

    	 

    

 

4.1.8
No Eton Patents exist, and neither Eton nor any of its Affiliates owns or controls any potentially patentable invention directed
to any Product, including, without limitation, the formulation of, or any method of making or using, any Product, with respect
to which any patent application could be filed in the United States of America.

 

4.1.9
All material data, information, results of experimentation and testing provided by Eton to the FDA or BIRL in relation to Products
or the Program are accurate and complete in all respects. No Eton Registrations made or other materials submitted by Eton to the
FDA or other Governmental Authority in the Territory contained an untrue statement of material fact when submitted, or omitted
to state a material fact within the knowledge of Eton when submitted which was required to be stated therein or necessary in order
to make the statements contained therein, in light of the circumstances under which they were made, not misleading.

 

4.1.10
To Eton’s knowledge (for purposes of clarity, without performing a freedom to operate analysis), since [*
* *], neither the Products nor any use thereof infringes, misappropriates or otherwise violates the intellectual property
rights of any Third Party. To the knowledge of Eton, since [* * *], no Third
Party is engaging in any activity that infringes, misappropriates or otherwise violates the Eton IP Rights.

 

4.1.11
Neither Eton nor any of its Affiliates is a party to any license, sublicense or other agreement pursuant to which any Third Party
is granted (i) any right to make, have made, use, sell, have sold, offer for sale, import or otherwise distribute any Product
or to otherwise exploit any Assigned Technology, (ii) any covenant not to assert/sue or other immunity from suit under or any
other rights to, any Assigned Technology, (iii) any ownership right or title, whether actual or contingent, to any Assigned Technology,
or (iv) an option or right of first refusal relating to any Assigned Technology.

 

4.1.12
Other than the [* * *] Agreement, neither Eton nor any of its Affiliates is a party to any agreement for development, manufacturing
or other services with respect to the Products in the Territory or that is primarily related to the Products, the Program or the
Purchased Assets. Eton has provided BIRL with access to all material preclinical and clinical data in the possession or control
of Eton related to any Products. Eton has provided to BIRL or made available current, true and complete copies of all Eton Registrations.

 

4.1.13
Eton has delivered to or made available to BIRL a true and complete copy of the [* * *] Agreement. The [* * *] Agreement is, as
to Eton (and, as to the other party thereto, to the knowledge of Eton), a legal, valid and binding agreement in full force and
effect and enforceable in accordance with its terms, subject to the effect of any Bankruptcy Exception. Eton is not in material
breach or default, and no event has occurred that with notice or lapse of time would constitute a material breach or default by
Eton under the [* * *] Agreement. To the knowledge of Eton, no other party to the [* * *] Agreement is in material breach or default
under, or has repudiated any material provision of, the [* * *] Agreement. Eton has not received any notice from a counterparty
to the [* * *] Agreement that such counterparty intends to terminate, cancel or amend (other than in a de minimis respect) such
[* * *] Agreement and there are no pending or unresolved notices from a counterparty to the [* * *] Agreement that such counterparty
intends to terminate, cancel or amend (other than in a de minimis respect) such [* * *] Agreement. As of the Effective Date, all
fees and other amounts owing to or otherwise payable to [* * *] under [* * *] of
the [* * *] Agreement have been paid and no additional fees or other payments will become payable under such [*
* *] of the [* * *] Agreement.

 

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4.1.14
Neither Eton nor any of its Affiliates has received any written notice from the FDA or any other Regulatory Authority
alleging any existing material non-compliance with any Laws applicable to the registration of any Product or the conduct of
the Program.

 

4.1.15
No employee of Eton or any of its Affiliates has been excluded from participating in the Medicare program or any other program
of a Governmental Authority.

 

4.1.16
Neither Eton nor any of its Affiliates has received notice that the FDA or any other Regulatory Authority has taken, is taking
or intends to take action to limit, suspend, modify or revoke any of the Eton Registrations.

 

4.1.17
With respect to the Products, the Program and the Purchased Assets, in each case solely with respect to the Territory, each of
Eton and its Affiliates is and has been in compliance in all material respects with all applicable Laws in the Territory.

 

4.1.18
No agent, broker, investment banker or other Person is or will be entitled to any broker’s or finder’s fee or any
other commission or similar fee from Eton or its Affiliates in connection with the Acquisition or any of the other transactions
contemplated by this Purchase Agreement.

 

4.1.19
The Purchased Assets constitute all assets and rights owned by Eton, or to which Eton has rights, that are primarily related to
the Products or the Program in the Territory.

 

4.2
Representations and Warranties of BIRL. BIRL hereby represents and warrants to Eton as of the Effective Date as follows:

 

4.2.1
BIRL is a limited liability company, validly existing and in good standing under the laws of the Republic of Ireland.

 

4.2.2
BIRL has the requisite power and authority and the legal right to execute and deliver this Purchase Agreement, to perform its
obligations hereunder and thereunder, and to consummate the Acquisition. The execution, delivery and performance of this Purchase
Agreement by BIRL and the consummation by BIRL of the Acquisition have been duly and validly authorized by all necessary action
of BIRL, and no other action on the part of BIRL is necessary to authorize this Purchase Agreement or to consummate the Acquisition.
This Purchase Agreement has been duly executed and delivered by BIRL and, assuming the due authorization, execution and delivery
by BIRL, this Purchase Agreement constitutes a legal, valid and binding obligation of BIRL, enforceable against BIRL in accordance
with its terms, subject to the effect of any Bankruptcy Exception.

 

4.2.3
All necessary consents, approvals and authorizations of all Governmental Authorities and other Persons required to be obtained
by BIRL in connection with this Purchase Agreement and the consummation of the Acquisition have been obtained. Neither the execution
or delivery of this Purchase Agreement by BIRL does, nor the performance by BIRL of its obligations hereunder or thereunder or
the consummation of the Acquisition will: (i) conflict with or violate any provision of the organizational documents of BIRL or
any resolutions adopted by the board of directors of BIRL, (ii) conflict with, or constitute a default under, any contractual
obligation by which it is bound, or (iii) conflict with or violate any Law or Order applicable to BIRL.

 

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4.2.4
There is no claim, hearing, enforcement, audit, investigation, agency proceeding, charge, lawsuit, action or other legal proceeding
pending or, to the knowledge of BIRL, currently threatened against BIRL that questions the validity of this Purchase Agreement
or the right of BIRL to enter into this Purchase Agreement, or to consummate the transactions contemplated hereby.

 

4.2.5
Neither BIRL, its (sub)contractors, nor any of its or their officers, directors, employees or consultants, have been debarred
by the FDA or other applicable governing health authority (or authorities), under any existing or prior law or regulation.

 

4.2.6
No agent, broker, investment banker or other Person is or will be entitled to any broker’s or finder’s fee or any
other commission or similar fee from BIRL or its Affiliates in connection with the Acquisition or any of the other transactions
contemplated by this Purchase Agreement.

 

5.
Financial Terms

 

5.1
Upfront Fee. Within [* * *] of the Closing Date, BIRL shall pay to
Eton an upfront fee of [* * *] by wire transfer of immediately available funds
to an account designated in writing by Eton prior to the Closing Date.

 

5.2
Milestone Payment. Within [* * *] following the first achievement of
the following milestone event, BIRL shall pay to Eton, by wire transfer of immediately available funds to an account designated
in writing by Eton the following milestone payment:

 

	Milestone
    Event	 	Milestone
    Payment
	[*
    * *]	 	[*
    * *]

 

Notwithstanding
the foregoing, if [* * *], then the milestone payment to be paid in connection
with the milestone event described in this Section 5.3 shall be reduced by [* * *], namely
[* * *]. In addition, if [* * *]
has not occurred within [* * *] (as such [*
* *] period may be extended in accordance with Section 3.3), then BIRL shall pay to Eton the milestone payment owing
pursuant to this Section 5.2, such milestone payment being due within [* * *] of
such date.

 

5.3
Royalties.

 

5.3.1
For a period of [* * *] from [* *
*] (the “Royalty Term”), subject to the terms and conditions of this Agreement, BIRL shall pay to
Eton royalties equal to [* * *].

 

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5.3.2
Notwithstanding Section 5.3.1, if, at any point during the Royalty Term, any product, [* * *]
is launched in the Territory, by any Person (other than BIRL or its Affiliates or Licensees), then the royalties shall
be reduced to [* * *] of Net Sales beginning on the launch date of such other
product. [* * *].

 

5.3.3
In addition, notwithstanding Sections 5.3.1 or 5.3.2, if at any point during the Royalty Term the Single Agent Product’s
market share in the Territory falls below [* * *] of the aggregate [*
* *] market (based on dollar value and as measured on a quarterly basis using IRI data (or other nationally syndicated
data obtained from an independent source)) (the “Market Share Threshold”) [*
* *] of Net Sales beginning in (and including) the second consecutive Calendar Quarter during which BIRL’s market
share first falls below the Market Share Threshold. [* * *].

 

5.4
Combination/Bundled Products. In the event that a Single Agent Product is sold by BIRL, its Affiliates or Licensees as
a Combination Product, then Net Sales for purposes of calculating royalties payable under Section 5.3 shall be calculated as follows:

 

In
the event that both (x) Single Agent Product is sold separately in finished form in the Territory during such Calendar Quarter
and (y) the Other Product(s) in such Combination Product are sold separately in finished form in the Territory during such Calendar
Quarter, then Net Sales of such Single Agent Product shall be determined by multiplying the actual Net Sales of the Combination
Product calculated in accordance with the provisions of Section 1.36 (“Actual Combination Product Net Sales”)
during such Calendar Quarter by the fraction A / (A+B), where A is the weighted average sale price of such Single Agent Product
when sold separately in finished form in the Territory during such Calendar Quarter, and B is the weighted average sale price
of the Other Product(s) in the Combination Product when sold separately in finished form in the Territory during such Calendar
Quarter.

 

In
the event that Single Agent Product is sold separately in finished form in the Territory during such Calendar Quarter, but the
Other Product(s) in such Combination Product are not sold separately in finished form in the Territory during such Calendar Quarter,
then Net Sales of such Single Agent Product shall be calculated by multiplying the Actual Combination Product Net Sales of the
Combination Product in the Territory during such Calendar Quarter by the fraction A / C where A is the weighted average sale price
of such Single Agent Product when sold separately in finished form in the Territory during such Calendar Quarter and C is the
weighted average sale price of the Combination Product in the Territory during such Calendar Quarter.

 

In
the event that no Single-Agent Product is sold separately in finished form in the Territory during such Calendar Quarter,
but the Other Active(s) or Other Product(s) in such Combination Product are sold separately in finished form in the Territory
during such Calendar Quarter, Net Sales of such Single Agent Product shall be calculated by multiplying the Actual
Combination Product Net Sales of the Combination Product by the fraction (C-B) / C, where B is the weighted average sale
price of the Other Active(s) or Other Product(s) in the Combination Product when sold separately in finished form in the
Territory during such Calendar Quarter, and C is the weighted average sale price of the Combination Product in the Territory
during such Calendar Quarter.

 

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In
the event that neither Single-Agent Product is sold separately in finished form in the Territory during such Calendar Quarter,
nor the Other Active(s) or Other Product(s) in such Combination Product are sold separately in finished form in the Territory
during such Calendar Quarter, then Net Sales of such Single Agent Product in the Territory during such Calendar Quarter shall
be equal to [* * *] of the Actual Combination Product Net Sales of the Combination
Product in the Territory during such Calendar Quarter.

 

5.5
Royalty Reports and Payments. Within [* * *] after the end of each
Calendar Quarter during the Royalty Term, BIRL shall deliver to Eton a written report showing in reasonably specific detail the
calculation of the royalties owing to Eton with respect to such Calendar Quarter, including the amount of gross sales of the Single
Agent Products, the amount of the Net Sales of the Single Agent Product and the calculation of such Net Sales, including with
reasonable detail with respect to deductions permitted under the definition of “Net Sales” and adjustments in respect
of any accrued deductions. BIRL shall remit the total payments due during such Calendar Quarter at the time such report is made.
Payment in whole or in part may be made in advance of such due date. For purposes of clarity, no such reports or payments shall
be due for any Single Agent Product before the First Commercial Sale of such Single Agent Product.

 

5.6
Interest; Withholding Taxes.

 

5.6.1
Any milestone payment or royalty payment not paid when due shall bear interest from the due date until the date of payment thereof
at the rate of [* * *] as quoted in [*
* *] (or if it no longer exists, a similarly authoritative source); provided, that interest shall not accrue
at a rate that exceeds the maximum rate permitted by applicable Law. The payment of such interest shall not limit Eton from exercising
any other rights it may have as a consequence of the lateness of any payment.

 

5.6.2
BIRL shall be entitled to deduct the amount of any Taxes that are required to by paid with respect to such amounts payable by
BIRL or its Affiliates, or any Taxes required to be withheld by BIRL or its Affiliates from such amounts, to the extent BIRL or
its Affiliates pay to the appropriate Governmental Authority on behalf of Eton such Taxes. BIRL shall cooperate with Eton in any
lawful way reasonably requested by Eton to obtain available reductions, credits or refunds of such Taxes. BIRL promptly shall
deliver to Eton proof of payment of all such Taxes, together with copies of all communications from or with any Governmental Authority
with respect thereto.

 

5.7
Audits.

 

5.7.1
During the Royalty Term and for [* * *] thereafter, upon the written request
of Eton and not more than once in each calendar year, BIRL shall permit an independent certified public accounting firm of nationally
recognized standing selected by Eton and reasonably acceptable to BIRL, at Eton’ s expense, to have access during normal
business hours to such of the financial records of BIRL as may be reasonably necessary to verify the accuracy of the reports hereunder
for the [* * *] immediately prior to the date of such request (other than
records for which Eton has already conducted an audit under this Section).

 

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5.7.2
If such accounting firm concludes that additional amounts were owed during the audited period, BIRL shall pay such additional
amounts within [* * *] after the date Eton delivers to BIRL such accounting
firm’s written report so concluding. The fees charged by such accounting firm shall be paid by Eton; provided, however,
that to the extent the auditor determines an underpayment discrepancy greater than [*
* *], BIRL shall pay the reasonable fees and expenses charged by such accounting firm.

 

5.7.3
Eton shall cause its accounting firm to retain all financial information subject to review under this Section 5.7 in strict confidence;
provided, however, that BIRL shall have the right to require that such accounting firm, prior to conducting such audit,
enter into an appropriate and reasonable non-disclosure agreement with BIRL regarding such financial information. The accounting
firm shall disclose to Eton only whether the reports are correct or not and the amount of any discrepancy. No other information
shall be shared. Eton shall treat all such financial information as BIRL’s confidential information, and shall not disclose
such financial information to any Third Party or use it for any purpose other than as specified in this Section 5.7, except that,
notwithstanding anything to the contrary in this Agreement, Eton shall be permitted to disclose that portion of such information
to Eyemax in connection with the performance of Eton’s obligations under the 2019 Amended and Restated Agreement, provided,
however, that BIRL shall have the right to require that Eyemax, prior to such disclosure, enter into an appropriate and reasonable
non-disclosure agreement with BIRL regarding such financial information.

 

5.8
Allocation of Purchase Price. BIRL and Eton shall use diligent efforts to agree upon a schedule (the “Allocation
Schedule”) setting forth the respective values of the Purchased Assets consistent with Section 1060 of the Code (and
any similar provisions of state, local or foreign Law, as appropriate), which shall be used for Tax purposes for the allocation
of the Purchase Price and any additional consideration among the Purchased Assets. Within [*
* *] after the Closing, BIRL shall provide to Eton a proposed Allocation Schedule. Eton shall have the right to review
and raise any objections in writing to the Allocation Schedule during the [* * *] period
after its receipt thereof. If BIRL disagrees with respect to any material item in the Allocation Schedule, the parties shall negotiate
in good faith to resolve the dispute. BIRL and Eton covenant and agree to report for Tax purposes the allocation of such Purchase
Price and additional consideration among the Purchased Assets in a manner entirely consistent with the Allocation Schedule and
agree to act in accordance with such Allocation Schedule in filing all Tax returns (including filing Form 8594 with their respective
federal income Tax returns for the Taxable year that includes the Closing Date) and in the course of any Tax audit, Tax review
or Tax litigation relating thereto. BIRL and Eton hereby agree, unless otherwise required pursuant to a “determination”
within the meaning of Section 1313(a) of the Code, to be bound by the Allocation Schedule, to file all Tax returns (including
IRS Form 8594 and any supplemental or amended IRS Form 8594) in accordance with the Allocation Schedule, and not to take any position
inconsistent with the Allocation Schedule in the course of any tax audit, review, examination or other administrative or judicial
proceeding. The Allocation Schedule shall be adjusted in accordance with the procedure set forth in Section 5.8 to account
for any adjustments to the Purchase Price pursuant to Section 5, Section 6.7 or as otherwise contemplated by this Agreement.

 

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5.9
Third Party Licenses. If, during the Royalty Term, BIRL or its Affiliates or Licensees is obligated to pay a Third Party
royalties or other payments in consideration for intellectual property rights owned or controlled by such Third Party, that, without
a license, BIRL reasonably believes such Third Party intellectual property rights would be infringed in the manufacture, use,
import, offer for sale, or sale of a Single Agent Product, then BIRL will have the right, upon BIRL’s (or its Affiliate’s
or Licensee’s) execution of a license with such Third Party for such Third Party intellectual property rights, to credit
[* * *] of any payments made to such Third Party in consideration for such
Third Party intellectual property rights, against the royalty due to Eton under this Purchase Agreement, provided that, in no
event shall royalties due to Eton under this Purchase Agreement in any Calendar Quarter be so reduced to less than [*
* *] of the amount that would otherwise be due to Eton hereunder.

 

6.
Indemnification.

 

6.1
Survival.

 

6.1.1
Except in the case of Eton’s common law fraud, Eton’s obligations to indemnify and hold harmless a BIRL Indemnitee
pursuant to Section 6.2(i): (x) other than with respect to the representations and warranties set forth in [*
* *] (the “Eton Fundamental Representations”), shall terminate on the date that is [*
* *] from the Closing Date, and (y) with respect to the Eton Fundamental Representations shall survive indefinitely;
provided, however, that such obligations to indemnify and hold harmless shall not terminate with respect to any item as to which
a BIRL Indemnitee shall have, before the expiration of such applicable period, previously made a claim by delivering a notice
of such claim in accordance with this Purchase Agreement to Eton, which obligations shall survive until all such claims have been
resolved.

 

6.1.2
Except in the case of BIRL’s common law fraud, BIRL’s obligations to indemnify and hold harmless an Eton Indemnitee
to Section 6.3(i): (x) other than with respect to the representations and warranties set forth in Sections [*
* *] (the “BIRL Fundamental Representations”), shall terminate on the date that is [*
* *] from the date of this Purchase Agreement and (y) with respect to the BIRL Fundamental Representations shall indefinitely;
provided, however, that such obligations to indemnify and hold harmless shall not terminate with respect to any item as to which
an Eton Indemnitee shall have, before the expiration of such applicable period, previously made a claim by delivering a notice
of such claim in accordance with this Purchase Agreement to Eton, which obligations shall survive until all such claims have been
resolved.

 

6.1.3
All of the covenants and agreements contained in this Agreement that by their nature are required to be performed after the Closing
shall survive the Closing until fully performed or fulfilled.

 

6.2
Indemnification by Eton. Eton shall indemnify, defend and hold harmless BIRL, its Affiliates, and their respective officers,
directors, shareholders, employees, agents and representatives (collectively “BIRL Indemnitees”) from any and
all losses, liabilities, damages and expenses, including reasonable attorneys’ fees and costs (collectively, “Losses”)
arising from, in connection with or otherwise with respect to (i) any inaccuracy in, or breach of, any representation or warranty
of Eton contained in Section 4.1 of this Purchase Agreement or in any Ancillary Agreement, (ii) any failure by Eton to perform,
fulfill or comply with any covenant, agreement, obligation or undertaking of Eton contained in this Purchase Agreement or in any
Ancillary Agreement and (iii) the Excluded Liabilities.

 

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6.3
Indemnification by BIRL. BIRL shall indemnify, defend and hold harmless Eton, its Affiliates, and its and their respective
officers, directors, shareholders, employees, agents and representatives (collectively “Eton Indemnitees”)
from any and all Losses arising from, in connection with or otherwise with respect to (i) any inaccuracy in, or breach of, any
representation or warranty of BIRL contained in Section 4.2 of this Agreement or in any Ancillary Agreement, (ii) any failure
by BIRL to perform, fulfill or comply with any covenant, agreement, obligation or undertaking of BIRL contained in this Purchase
Agreement or in any Ancillary Agreement and (iii) the Assumed Liabilities.

 

6.4
Third Party Claim Procedures. A party seeking indemnification (the “Indemnitee”) shall promptly notify
the other party (the “Indemnifying Party”) in writing of a claim, demand, action or proceeding; provided that
an Indemnitee’s failure to give such notice or delay in giving such notice shall not affect such Indemnitee’s right
to indemnification under this Section 6 except to the extent that the Indemnifying Party has been prejudiced by such failure or
delay. The Indemnifying Party shall have the right to control the defense of all indemnification claims hereunder. The Indemnitee
shall have the right to participate at its own expense in the claim, action or proceeding with counsel of its own choosing. The
Indemnifying Party shall consult with the Indemnitee in good faith with respect to all non-privileged aspects of the defense strategy.
The Indemnitee shall cooperate with the Indemnifying Party as reasonably requested, at the Indemnitee’s sole cost and expense.
The Indemnifying Party shall not settle any claim, demand, action or proceeding with respect to which without the Indemnitee’s
prior written consent, which consent shall not be unreasonably withheld.

 

6.5
Direct Claim Procedures. In the event any Indemnitee should have a claim against an Indemnifying Party under Section 6.2
or Section 6.3, as applicable, that does not involve a Third Party claim being asserted against or sought to be collected from
such Indemnitee, the Indemnitee shall deliver notice of such claim to the Indemnifying Party. The failure by any Indemnitee so
to notify the Indemnifying Party shall not relieve the Indemnifying Party from any liability that it may have to such Indemnitee
under Section 6.2 or Section 6.3, as applicable, except to the extent (and only to the extent) that the Indemnifying Party shall
have been actually and materially prejudiced as a result of such failure. If the Indemnifying Party does not notify the Indemnitee
within [* * *] following its receipt of such notice that the Indemnifying
Party disputes Indemnifying Party’s liability to the Indemnitee under Section 6.2 or Section 6.3, as applicable, such claim
specified by the Indemnitee in such notice shall be conclusively deemed a Loss of the Indemnifying Party under Section 6.2 or
Section 6.3, as applicable, and Indemnifying Party shall pay the amount of such Loss to the Indemnitee on demand or, in the case
of any notice in which the amount of the claim (or any portion thereof) is estimated, on such later date when the amount of such
claim (or such portion thereof) becomes finally determined.

 

6.6
Exclusive Monetary Remedy; Limitations.

 

6.6.1
Except in the case of common law fraud, the right to indemnification under this Section 6 shall constitute the sole and exclusive
monetary remedy of the BIRL Indemnitees and the Eton Indemnitees for Losses or otherwise arising from, in connection with this
Purchase Agreement, including pursuant to Section 6.1.1, Section 6.1.2, Section 6.1.3, Section 6.2, Section 6.3, the Ancillary
Agreements, or otherwise with respect to any of the transactions contemplated hereby or thereby.

 

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6.6.2
Except in the case of Eton’s common law fraud, (x) except for a breach of the Eton Fundamental Representations, Eton’s
aggregate liability to BIRL Indemnitees pursuant to Section 6.2(i) shall not exceed [*
* *] (the “Cap”), and (y) other than (A) with respect to Section 6.2(iii) (with respect to which
Eton’s liability shall not be limited), (B) Section 6.2(ii) with respect to Sections [*
* *] (with respect to which Eton’s liability shall not be limited) and (C) Eton Fundamental Representations (with
respect to which Eton’s liability shall not be limited), Eton’s aggregate liability under Section 6.2 shall not exceed
the greater of (1) [* * *] and (2) [*
* *]. No BIRL Indemnitee shall be entitled to recover any Losses under Section 6.2(i) unless and until the aggregate
Losses for which they would otherwise be entitled to indemnification under Section 6.2(i) exceed [*
* *], at which point the BIRL Indemnitees shall become entitled to be indemnified for such Losses [*
* *].

 

6.6.3
Except in the case of BIRL’s common law fraud, (x) except for a breach of the BIRL Fundamental Representations, BIRL’s
aggregate liability to Eton Indemnitees pursuant to Section 6.3(i) shall not exceed the Cap, and (y) other than (A) with respect
to Section 6.3(iii) (with respect to which BIRL’s liability shall not be limited), (B) Section 6.3(ii) with respect to Sections
[* * *] (with respect to which BIRL’s liability shall not be limited)
and (C) BIRL Fundamental Representations (with respect to which BIRL’s liability shall not be limited), BIRL’s aggregate
liability under Section 6.3 shall not exceed the greater of (1) [* * *] and
(2) [* * *]. No Eton Indemnitee shall be entitled to recover any Losses under
Section 6.3(i) unless and until the aggregate Losses for which they would otherwise be entitled to indemnification under Section
6.3(i) exceed [* * *], at which point the Eton Indemnitees shall become entitled
to be indemnified for such Losses [* * *].

 

6.7
Tax Treatment of Indemnification Payments. All indemnity payments made by an Indemnifying Party to an Indemnitee pursuant
to this Purchase Agreement shall be treated for all Tax purposes as adjustments to the Purchase Price.

 

6.8
Right of Set-Off. Notwithstanding any provision of this Purchase Agreement to the contrary, the parties acknowledge and
agree that, in addition to any other right hereunder: (i) subject to the limitations set forth in Section 6.6, BIRL shall have
the right, but not the obligation, from time to time to set off any Losses for which the BIRL Indemnitees are entitled to indemnification
hereunder against any payment under Section 5.2 or Section 5.3 and (ii) if at any time any payment pursuant to Section 5.2 or
Section 5.3 is due and payable the amount of Losses with respect to which shall not have been finally determined, then the amount
of such payment shall be reduced by the amount of Losses BIRL reasonably estimates to be subject to such indemnification claim
and that is set forth in the claim notice. If the final amount of Losses for such indemnification claim is less than the amount
by which such payment was reduced for such claim, then BIRL shall promptly deliver the difference to Eton, together with accrued
interest calculated in accordance with Section 5.6.1.

 

6.9
Specific Performance. In the event of any breach or threatened breach by either party of any covenant, obligation or other
provision set forth in this Purchase Agreement, the other party shall be entitled (in addition to any other remedy that may be
available to it) to (i) a decree or order of specific performance or mandamus to enforce the observance and performance of such
covenant, obligation or other provision, and (ii) an injunction restraining such breach or threatened breach; and (b) such party
shall not be required to provide any bond or other security in connection with any such decree, order or injunction or in connection
with any related action or proceeding.

 

6.10
No Implied Representations. The parties acknowledge and agree that, except as expressly provided in Section 4.1 and Section
4.2, neither of the parties hereto has made or is making any representations or warranties whatsoever, implied or otherwise.

 

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6.11
LIMITATION OF LIABILITY. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, EXCEPT FOR THE OBLIGATIONS TO INDEMNIFY, DEFEND
AND HOLD HARMLESS PURSUANT TO THIS SECTION 6 FOR THIRD PARTY CLAIMS OR IN THE CASE OF FRAUD OR BREACH OF THE CONFIDENTIALITY OBLIGATIONS
PURSUANT TO SECTION 8, NEITHER PARTY SHALL BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE
DAMAGES, WHETHER FORESEEABLE OR NOT, ARISING OUT OF THIS PURCHASE AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, REGARDLESS
OF ANY NOTICE OF SUCH DAMAGES.

 

6.12
Litigation Support. Following the Closing, the parties shall reasonably cooperate with each other in the defense or settlement
of any claims or lawsuits brought by, Third Parties that involve the Purchased Assets, the Product, this Purchase Agreement or
the transactions contemplated hereby by providing the other party and such other party’s legal counsel reasonable access
to employees, records, documents, data, equipment, facilities, products, and other information relating primarily to the Products,
the Program and the Purchased Assets as such other party may reasonably request, to the extent maintained or under the possession
or control of the requested party; provided, however, that such access shall not unreasonably interfere with the
parties’ respective businesses; and provided, further, that either party may restrict the foregoing access to the extent
that (a) such restriction is required by applicable Law, (b) such access or provision of information would result in a violation
of confidentiality obligations to a Third Party or (c) disclosure of any such information would result in the loss or waiver of
the attorney-client privilege.

 

7.
Tax Matters.

 

7.1
Eton shall be responsible for and shall pay all Taxes of Eton for all periods and all Taxes that relate to the Purchased Assets
that were incurred in or are attributable to any taxable period (or portion thereof) ending on or before the Closing Date. Eton
shall prepare and file its Tax Returns for all periods and all Tax Returns that relate to the Purchased Assets for any Taxable
periods ending on or before the Closing Date. Such returns will be prepared and filed in accordance with applicable Law and in
a manner consistent with past practices.

 

7.2
Any real property, personal property or similar Taxes applicable to the Purchased Assets for a taxable period that includes but
does not end on the Closing Date shall be paid by BIRL or Eton, as applicable, and such Taxes shall be apportioned between BIRL
and Eton based on the number of days in the portion of the taxable period that ends on the Closing Date (the “Pre-Closing
Tax Period”) and the number of days in the entire taxable period. Eton shall pay BIRL an amount equal to any such Taxes
payable by BIRL which are attributable to the Pre-Closing Tax Period, and BIRL shall pay Eton an amount equal to any such Taxes
payable by Eton which are not attributable to the Pre-Closing Tax Period. Such payments shall be made on or prior to the Closing
Date or, if later, on the date such Taxes are due (or thereafter, promptly after request by BIRL or Eton if such Taxes are not
identified by BIRL or Eton on or prior to the Closing Date).

 

7.3
All transfer, value added taxes, withholding, sales, and use taxes, deed excise stamps and similar charges (“Transfer
Taxes”) related to the sale of the Purchased Assets contemplated by this Purchase Agreement shall be paid by Eton. The
party required under applicable Law will file any necessary Tax Returns and other documentation with respect to all such Taxes
and, if BIRL is required by applicable Law to file such Tax Returns, Eton shall pay over to BIRL any such Transfer Taxes payable
with respect to such Tax Return.

 

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7.4
After the Closing, upon reasonable written notice, BIRL and Eton shall furnish or cause to be furnished to each other, as promptly
as practicable, such information and assistance (to the extent within the control of such party) relating to the Purchased Assets
and Assumed Liabilities (including, access to books and records) as is reasonably necessary for the filing of all Tax Returns,
the making of any election related to Taxes, the preparation of any available Tax clearance certificate, the preparation for any
audit by any Governmental Entity, and the prosecution or defense of any claim, suit or proceeding related to any Tax Return. Eton
and BIRL shall cooperate with each other in the conduct of any audit or other proceeding relating to Taxes involving the Purchased
Assets and Assumed Liabilities. Eton shall not after the Closing take any position in any Tax Return, or reach any settlement
or agreement on audit, which is in any manner inconsistent with any position taken by Eton in any filing, settlement or agreement
made by Eton prior to the Closing if such inconsistent position (i) requires the payment by BIRL of more Tax than would have been
required to be paid had such position not been taken or such settlement or agreement not been reached, (ii) affects the determination
of useful life, basis or method of depreciation, amortization or accounting of any of the Purchased Assets or any of the properties,
assets or rights of BIRL or (iii) accelerates the time at which any Tax must be paid by BIRL; unless BIRL has previously consented
to such position in a writing to Eton.

 

8.
Confidentiality.

 

8.1
Confidential Information.

 

8.1.1
Except as otherwise provided herein, from and after the Closing, Eton shall treat as confidential, and shall not, except as provided
herein, disclose to any other Person, all information included in or solely related to the Purchased Assets or the Assumed Liabilities
(“Confidential Information”); provided, however, that the foregoing obligations shall not apply to (a)
any information which was or comes into the public domain through no breach of this Purchase Agreement by Eton, (b) is or was
communicated by BIRL to an unaffiliated Third Party free of any obligation of confidence, (c) any information that is independently
developed or discovered by any Third Party Acquiror of Eton prior to a Change of Control Transaction, other than as a result of
disclosure by or on behalf of Eton or any of its subsidiaries, (d) any information that is independently developed or discovered
by any Third Party Acquiror without reference to any information included in the Purchased Assets other than information described
in clause (a), (b), (c) or (e), or (e) is rightfully communicated to any Third Party Acquiror by another third party (other than
Eton or any of its subsidiaries), free and clear of any obligation of confidence and not acquired in any manner from Eton or any
of its subsidiaries. For the avoidance of doubt, Eton shall be permitted to provide to Eyemax copies of any royalty reports received
by Eton pursuant to Section 5.5 and the results of any audit received by Eton pursuant to Section 5.7.3, provided that, prior
to providing copies of any such reports to Eyemax, BIRL (or its Affiliate) and Eyemax shall have executed a confidentiality and
non-disclosure agreement relating to such reports, in a form acceptable to BIRL (acting reasonably). In addition, Eton shall not
be prohibited from disclosing any portion of the Confidential Information that Eton is required to disclose by judicial or administrative
process or, in the opinion of legal counsel, by other requirements of Law; provided that Eton shall provide BIRL with prompt notice
and may disclose only that portion of the Confidential Information that it is compelled to disclose and, as may be reasonably
requested by BIRL, reasonably cooperate with BIRL, at BIRL’s expense, in any attempt to obtain an appropriate protective
order or other reliable assurance of confidential treatment.

 

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8.1.2
Except as otherwise provided herein, from and after the Closing, BIRL shall treat as confidential, and shall not, except as provided
herein, disclose to any other Person, any information included in or solely related to the Excluded Liabilities, provided,
however, that the foregoing obligations shall not apply to (a) any information which was or comes into the public domain through
no breach of this Purchase Agreement by BIRL, (b) is or was communicated by Eton to an unaffiliated Third Party free of any obligation
of confidence, (c) any information that is independently developed or discovered by any Third Party Acquiror of BIRL prior to
a Change of Control Transaction, other than as a result of disclosure by or on behalf of BIRL or any of its subsidiaries, (d)
any information that is independently developed or discovered by any Third Party Acquiror without reference to any information
included in the Purchased Assets other than information described in clause (a), (b), (c) or (e), or (e) is rightfully communicated
to any Third Party Acquiror by another third party (other than BIRL or any of its subsidiaries), free and clear of any obligation
of confidence and not acquired in any manner from BIRL or any of its subsidiaries.

 

8.2
Public Disclosure. Except to the extent required by Law, the rules and regulations of any stock exchange or quotation services
on which such party’s stock is traded or quoted and except as permitted by Section 8.1, no news release or other public
announcement pertaining to the transactions contemplated by this Purchase Agreement (including the filing of this Purchase Agreement
in accordance with applicable securities laws) will be made by or on behalf of either party or its Affiliates without the prior
written approval of the other party not to be unreasonably withheld. If in the judgment of either Party such a news release or
public announcement is required by Law or the rules or regulations of any stock exchange on which such party’s stock is
traded, the party intending to make such release or announcement (including the filing of this Purchase Agreement in accordance
with applicable securities laws) shall to the extent permitted by Law provide prior written notice to the other party of the contents
of such release or announcement (or redacted form of the Purchase Agreement) and allow the other party reasonable time to comment
on such release or announcement (or redacted form of the Purchase Agreement) in advance of such issuance or filing.

 

9.
Conditions to Closing; Covenants; Termination.

 

9.1
Conditions to Obligations of BIRL. The obligation of BIRL to effect the Closing is subject to the satisfaction (or waiver)
prior to the Closing of the following conditions:

 

9.1.1
The representations and warranties of Eton, as specified in Section 4.1 shall be true and correct on and as of the Effective Date
and as of the Closing, as though made on and as of the Closing (except to the extent expressly made as of an earlier date, in
which case as of the earlier date).

 

9.1.2
Eton shall have performed and complied with all of its covenants in this Purchase Agreement (disregarding any failure to perform
or comply that was inadvertent or unintentional) at or before the Closing (to the extent that such covenants require performance
by Eton at or before the Closing).

 

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9.1.3
The transactions contemplated by the 2019 Amended and Restated Agreement shall have occurred.

 

9.1.4
The [* * *] Consent shall have been obtained and shall be in full force and effect.

 

9.1.5
Eton shall have furnished to BIRL all deliverables set forth in Section 2.5.

 

9.1.6
No temporary restraining Order, preliminary or permanent injunction or other Order preventing the consummation of the transactions
contemplated by this Purchase Agreement shall have been issued by any court of competent jurisdiction and remain in effect.

 

9.2
Conditions to Obligations of Eton. The obligation of Eton to effect the Closing is subject to the satisfaction (or waiver)
prior to the Closing of the following conditions:

 

9.2.1
The representations and warranties of BIRL, as specified in Section 4.2 shall be true and correct on and as of the Effective Date
and as of the Closing, as though made on and as of the Closing (except to the extent expressly made as of an earlier date, in
which case as of the earlier date).

 

9.2.2
BIRL shall have performed and complied with all of its covenants contained in this Purchase Agreement (disregarding any failure
to perform or comply that was inadvertent or unintentional) at or before the Closing (to the extent that such covenants require
performance by BIRL at or before the Closing).

 

9.2.3
The transactions contemplated by the 2019 Amended and Restated Agreement shall have occurred.

 

9.2.4
BIRL shall have furnished to Eton all deliverables set forth in Section 2.6.

 

9.2.5
No temporary restraining Order, preliminary or permanent injunction or other Order preventing the consummation of the transactions
contemplated by this Purchase Agreement shall have been issued by any court of competent jurisdiction and remain in effect.

 

9.3
Consummation of Eyemax Transaction. Eton shall use commercially reasonable efforts to consummate the transactions contemplated
by the 2019 Amended and Restated Agreement as promptly as possible following the Effective Date.

 

9.4
Termination.

 

9.4.1
Termination. This Purchase Agreement may be terminated prior to the Closing:

 

(i)
by the mutual written consent of the parties; or

 

    	25

    	 

    

 

(ii)
by BIRL, by written notice to Eton, if BIRL is not then in material breach of any provision of this Purchase Agreement and there
has been a breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by Eton pursuant
to this Purchase Agreement that would give rise to the failure of any of the conditions specified in Section 9.1.1 or 9.1.2 and
such breach, inaccuracy or failure has not been cured by Eton within [* * *] of
Eton’s receipt of written notice of such breach from BIRL; or

 

(iii)
by Eton, by written notice to BIRL, if Eton is not then in material breach of any provision of this Purchase Agreement and there
has been a breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by BIRL pursuant
to this Purchase Agreement that would give rise to the failure of any of the conditions specified in Section 9.2.1 or 9.2.2 and
such breach, inaccuracy or failure has not been cured by BIRL within [* * *] of
BIRL’s receipt of written notice of such breach from Eton; or

 

(iv)
by Eton or BIRL in the event that a court of competent jurisdiction shall have issued a final and nonappealable Order having the
effect of permanently restraining, enjoining or otherwise prohibiting the transactions contemplated hereby; provided, however,
that a party shall not be permitted to terminate this Purchase Agreement pursuant to this Section 9.4.1(iv) if such party
did not use commercially reasonable best efforts to have such Order vacated prior to its becoming final and nonappealable; or

 

(v)
by VIRL if the transactions contemplated by the 2019 Amended and Restated Agreement have not been consummated within [*
* *] of the Effective Date.

 

9.4.2
Upon termination of this Purchase Agreement, the transactions contemplated hereby shall be abandoned without further action by
any of the parties and this Purchase Agreement shall become void and have no effect, and neither party hereto shall have any liability
to the other party hereto or their respective Affiliates, or their respective directors, officers or employees, except that nothing
herein shall relieve any party from liability for any breach of this Agreement. Termination of this Agreement shall terminate
all outstanding obligations and liabilities (other than liability for any breach of this Agreement) between the parties arising
from this Purchase Agreement except those described in this Section 9.4, and Section 8.

 

9.5
Non-Competition. During the [* * *] following the Closing, Eton shall
not, and shall cause its Affiliates not to, [* * *] (collectively, the “Competing
Business”); provided, however, the restriction contained in this Section 9.5 shall not prohibit
Eton or its Affiliates from owning less than [* * *] of the outstanding stock
of any class of securities registered under the Securities Exchange Act of 1934, as amended; provided, further,
that if, during such [* * *] period, any Competing Business is conducted in
the Territory at the time of consummation of an Acquisition Transaction (as defined below) by any business (or any portion thereof),
Person or group of Persons, all or a majority interest of which is, or a bundle of assets of which are, acquired by Eton or any
of its Affiliates through an equity or asset purchase, merger, consolidation or other transaction, in each case, whether in a
single transaction or a series of related transactions (an “Acquisition Transaction”), then Eton or its Affiliates
may continue to conduct such Competing Business until the earlier of (i) such time as Eton or its Affiliates divest such Competing
Business and (ii) [* * *] after the closing date of such Acquisition Transaction;
provided, however, that no Acquisition Transaction can be entered into by Eton or any of its Affiliates if the Competing
Business is all or substantially all of the business that would be purchased pursuant to the Acquisition Transaction [*
* *] Eton acknowledges that the agreements in this Section 9.5 impose a reasonable restraint in light of the
activities and business of Eton and its Affiliates on the Effective Date and the current business of BIRL, Eton and their respective
Affiliates.

 

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10.
Miscellaneous.

 

10.1
Relationship of Parties. The relationship between Eton and BIRL, with respect to this Purchase Agreement, is only that
of independent contractors notwithstanding any activities set forth in this Purchase Agreement. Neither party is the agent or
legal representative of the other party, and neither party has the right or authority to bind the other party in any way. This
Purchase Agreement creates no relationship as partners or a joint venture, and creates no pooling arrangement.

 

10.2
Governing Law and Resolution of Disputes.

 

10.2.1
This Purchase Agreement shall be governed by and construed in accordance with the laws of the State of New York without reference
to its conflict of laws principles.

 

10.2.2
Any and all disputes or claims arising from or out of this Purchase Agreement shall be litigated exclusively before a court of
the State of New York or, if subject matter jurisdiction exists, the United States District Court for the Southern District of
New York. Each party hereto hereby irrevocably and unconditionally consents to the exclusive personal jurisdiction and service
of, and venue of, any such court, and further irrevocably and unconditionally waives and agrees not to plead or claim that any
action, lawsuit or proceeding brought in any such court has been brought in an inconvenient forum. Any judgment issued by such
a court may be enforced in any court having jurisdiction.

 

10.3
Assignment. Neither party shall assign its rights or obligations under this Purchase Agreement without the prior written
consent of the other party, which shall not be unreasonably withheld or delayed; provided, however, that a party
may, without such consent, assign this Purchase Agreement and its rights and obligations hereunder (a) to any Affiliate, or (b)
in connection with the transfer or sale of all or substantially all of its business to which this Purchase Agreement relates,
or in the event of its merger, consolidation, change in control or similar transaction. Any permitted assignee shall assume all
obligations of its assignor under this Purchase Agreement. Any purported assignment in violation of this Section 10.3 shall be
void.

 

10.4
Counterparts. This Purchase Agreement may be executed in several counterparts that together shall be originals and constitute
one and the same instrument.

 

10.5
Waiver. The failure of any party to enforce any of its rights hereunder or at law shall not be deemed a waiver of any of
its rights or remedies against another party, unless such waiver is in writing and signed by the party to be charged. No such
waiver shall be deemed a waiver of any subsequent breach or default of the same or similar nature or any other breach or default
by such other party. All rights and remedies conferred herein shall be cumulative and in addition to all of the rights and remedies
available to each party at law, equity or otherwise.

 

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10.6
Severability. If any provision of this Purchase Agreement, or part thereof, is declared by a court of competent jurisdiction
to be invalid, void or unenforceable, each and every other provision, or part thereof, shall nevertheless continue in full force
and effect.

 

10.7
Notices. Any consent, notice or report required or permitted to be given or made under this Purchase Agreement by a party
to the other party shall be in writing, delivered by any lawful means to such other party at its address indicated below, or to
such other address as the addressee shall have last furnished in writing to the addressor and (except as otherwise provided in
this Purchase Agreement) shall be effective upon receipt by the addressee.

 

	 	If
    to Eton:	Eton
    Pharmaceuticals, Inc.
	 	 	21925
    Field Pkwy, Suite 235
	 	 	Deer
    Park, Illinois 60010
	 	 	Attention:
    Chief Executive Officer

 

	 	If
    to BIRL:	Bausch
    Health Ireland Limited
	 	 	3013
    Lake Drive
	 	 	Citywest
    Business Campus
	 	 	Dublin
    24, Ireland
	 	 	Attention:
    General Manager

 

With
a copy to:

	 	 	Bausch
    Health US, LLC
	 	 	400
    Somerset Corporate Blvd
	 	 	Bridgewater,
    NJ 08807
	 	 	Attention:
    General Counsel

 

10.8
Further Assurances. The parties agree to execute such additional documents and perform such acts as are reasonably necessary
to effectuate the intent of this Purchase Agreement.

 

10.9
Entire Agreement. Effective as of the Effective Date, this Purchase Agreement constitutes the entire agreement between
the parties regarding the subject matter hereof, and supersedes all prior or contemporaneous understandings or agreements regarding
the subject matter hereof, whether oral or written. This Purchase Agreement shall be modified or amended only by a writing specifically
referring to this Purchase Agreement signed by both BIRL and Eton.

 

10.10
Force Majeure. Neither party shall be liable for delays in its performance caused by Force Majeure Events, provided the
affected party gives the other party written notice of such event within three (3) business days of its occurrence. Such notice
shall state the estimated duration of such event and the cause thereof and the affected party shall use commercially reasonable
efforts to work around such event beyond its control.

 

    	28

    	 

    

 

10.11
Headings and Construction. No rule of construction shall be applied to the disadvantage of a party because that party was
responsible for the preparation of this Purchase Agreement or any part of this Purchase Agreement. The Article and Section headings
in this Purchase Agreement are for convenient reference only and shall be given no substantive or interpretive effect. With respect
to all terms used in this Purchase Agreement, words used in the singular include the plural and words used in the plural include
the singular. The word ‘including’ means including without limitation, and the words ‘ herein’ , ‘hereby’
, ‘hereto ‘ and ‘hereunder’ refer to this Purchase Agreement as a whole. Unless the context otherwise
requires, references found in this Purchase Agreement: (i) to Articles and Sections mean the Articles and Sections of this Purchase
Agreement, as amended, supplemented and modified from time to time; (ii) to an agreement, instrument or other document means such
agreement; (iii) to an agreement, instrument or other document means such agreement, instrument or other document as amended,
supplemented and modified from time to time, to the extent provided by the provisions thereof and by this Purchase Agreement;
and (iv) to a statute or a regulation mean such statute or regulation as amended from time to time.

 

[Remainder
of Page Intentionally Left Blank]

 

    	29

    	 

    

 

IN
WITNESS WHEREOF, each party has caused a duly authorized representative to execute this Purchase Agreement as of the Effective
Date.

 

	 	Eton
    Pharmaceuticals, Inc.
	 	 	 
	 	By:	                            
	 	Name:	 
	 	Title:	 

 

	 	Bausch
    Health Ireland Limited
	 	 	 
	 	By:	                             
	 	Name:	 
	 	Title:	 

 

    	30

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