Document:

exv10w4

Exhibit 10.4

     ***  INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED.
ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

JOINT DEVELOPMENT AGREEMENT

     THIS JOINT DEVELOPMENT AGREEMENT (this “Agreement”) dated as of April 8, 2009 (the “Effective
Date”) is entered into between Medicis Pharmaceutical Corporation, a Delaware corporation with
offices located at 7720 North Dobson Road, Scottsdale, Arizona 85256 (“Medicis”), and Perrigo
Israel Pharmaceuticals, Ltd., an Israeli Company with offices located at 25 Lehi Street, B’nei Brak
ISRAEL (“Perrigo”).

     WHEREAS, Perrigo has the expertise and know-how to conduct a joint development program with
Medicis to research and develop the Product (as defined below); and

     WHEREAS, Medicis desires to collaborate with Perrigo regarding the research and development of
the Product, all on the terms and conditions of this Agreement.

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

     1. DEFINITIONS.

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

          1.2 “Business Day” means any day other than a Saturday, Sunday or a day on which banks in
Arizona are authorized or required by law to close.

          1.3 “Confidential Information” means all non-public materials, information and data concerning
the disclosing party and its operations that is disclosed by the disclosing party to the receiving
party pursuant to this Agreement, orally or in written, electronic or tangible form, or otherwise
obtained by the receiving party through observation or examination of the disclosing party’s
operations. Confidential Information includes, but is not limited to, information about the
disclosing party’s financial condition and projections; business, marketing or strategic plans;
sales information, customer lists; price lists; databases; trade secrets; product prototypes and
designs; techniques, formulae, algorithms and other non-public process information.
Notwithstanding the foregoing, Confidential Information of a party shall not include that portion
of such materials, information and data that, and only to the extent, the
recipient can establish by written documentation: (a) is known to the recipient as evidenced
by its written records before receipt thereof from the disclosing party, (b) is disclosed to the
recipient free of confidentiality obligations by a Third Party who has the right to make such
disclosure without obligations of confidentiality, (c) is or becomes part of the public domain

 

 

through no fault of the recipient, or (d) the recipient can reasonably establish is
independently developed by persons on behalf of recipient without the use of the information
disclosed by the disclosing party.

          1.4 “Development Plan” means the plan for the research and development of the Product as set
forth on Exhibit A, and as such plan may be amended, supplemented or restated from time to time by
mutual written agreement of the parties.

          1.5 “Development Program” means the development program described in the Development Plan.

          1.6 “Exclusion Lists” mean: (a) the HHS/OIG List of Excluded Individuals/Entities (available
through the Internet at http://www.oig.hhs.gov); and (b) the General Services
Administration’s List of Parties Excluded from Federal Programs (available through the Internet at
http://www.epls.gov).

          1.7 “FDA” means the United States Food and Drug Administration or any successor entity
thereto.

          1.8 “FD&C Act” means the United States Federal Food, Drug and Cosmetic Act, as may be amended
from time to time.

          1.9 “Ineligible Person” means a person who: (a) is currently excluded, debarred, suspended,
or otherwise ineligible to participate in the Federal health care programs or in Federal
procurement or non-procurement programs; or (b) has been convicted of a criminal offense that falls
within the ambit of 42 U.S.C. § 1320a-7(a), but has not yet been excluded, debarred, suspended, or
otherwise declared ineligible.

          1.10 “NDA” means a New Drug Application as defined in the FD&C Act or FDA Regulations (21
CFR).

          1.11 “Net Sales” means the gross price invoiced by Medicis or its Affiliate to a retailer or
distributor for the Product, as applicable, less the sum of the following items (to the extent
actually incurred or accrued and to the extent not already deducted in computing the total amount
invoiced by Medicis): (a) credits or allowances actually granted, if any, for recalls, rejection or
return of items previously sold, (b) rebates and cash discounts actually granted, (c) *** (d)
excise taxes, sales taxes, duties or other taxes imposed upon and paid with respect to such sales
***, (all such amounts determined in accordance with GAAP applied in a manner consistent with past
practices). Sales between Medicis and its Affiliates shall not be included in Net Sales unless
such Affiliate is the end user of the Product.

          1.12 “Perrigo Know-How Rights” means all trade secret and other know-how rights in and to all
data, information, compositions and other technology (including, but not limited to, formulae,
procedures, protocols, techniques and results of experimentation and testing) which are necessary
or useful to make, use, develop, sell or seek regulatory approval to market the Product and which
Perrigo has an ownership or (sub)licensable interest as of on or after the Effective Date.

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          1.13 “Perrigo IP Rights” means the Perrigo Patent Rights and Perrigo Know-How Rights.

          1.14 “Perrigo Patent Rights” means (a) the patents and patent applications listed on Exhibit
B, (b) all patents and patent applications in any country of the world that claim or cover the
Product or the manufacture or use thereof in which Perrigo has an ownership or (sub)licensable
interest as of on or after the Effective Date, (c) all divisions, continuations,
continuations-in-part, that claim priority to, or common priority with, the patent applications
described in clauses (a) and (b) above or the patent applications that resulted in the patents
described in clauses (a) and (b) above, and (d) all patents that have issued or in the future issue
from any of the foregoing patent applications, including utility, model and design patents and
certificates of invention, together with any reissues, renewals, extensions or additions thereto.

          1.15 “Product” means *** product, as described in the Development Plan to be prepared by the
parties.

          1.16 “Product Technology” means all discoveries, inventions, improvements and other technology
that specifically relates to the Product and is conceived or reduced to practice by Perrigo,
Medicis or both in the conduct of the Development Program.

          1.17 “Royalty Term” means the period commencing on the date of first commercial sale of the
first Product and expiring *** thereafter.

          1.18 “Steering Committee” means the committee composed of representatives of Perrigo and
Medicis described in Section 2.3 below.

          1.19 “Third Party” means any person or entity other than Medicis, Perrigo or their respective
Affiliates.

          1.20 “Valid Claim” means ***

     2. DEVELOPMENT PROGRAM; STEERING COMMITTEE.

          2.1 Overview. Perrigo timely conduct the Development Program in accordance with the
Development Plan. Perrigo shall bear its own costs to conduct the Development Program.

          2.2 Amendment of Development Plan. The Development Plan may be amended from time to
time, only upon recommendation of the Steering Committee and upon mutual written agreement of
Medicis and Perrigo.

          2.3 Steering Committee. The Steering Committee shall foster the collaborative
relationship between the parties and shall in particular have the oversight and responsibility to
review and give recommendations regarding the progress of the Development Program. The Steering
Committee shall be comprised of three (3) named representatives of Perrigo and three (3) named
representatives of Medicis. Each party shall appoint its respective representatives to the
Steering Committee from time to time, and may substitute one or more of its representatives, in its
sole discretion, effective upon notice to the other party of such change

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but shall use commercially reasonable efforts to maintain stability of Steering Committee
representation. As provided in Section 2.6, for each calendar quarter during the term of the
Development Program, Perrigo shall provide to the Steering Committee a report that details the
progress and results of the Development Program. The Steering Committee shall review such report
and make recommendations regarding changes to the Development Program. No such changes shall be
binding unless the Development Plan has been amended by the parties as required herein. The term
of the Steering Committee shall commence on the Effective Date and continue until the date when
Perrigo has completed all of its obligations under the Development Plan.

          2.4 Conflict. In the event that the terms of the Development Plan are inconsistent
with the terms of this Agreement, this Agreement shall control, unless otherwise explicitly agreed
to in writing by the parties. The Development Plan shall be incorporated herein by reference and
made a part of this Agreement.

          2.5 Records. Perrigo shall maintain complete and accurate records of all work it
conducts under the Development Program and all results, data and developments made in connection
therewith. Such records shall be complete and accurate and shall fully and properly reflect all
work done and results achieved in the performance of the Development Program in sufficient detail
and in good scientific manner appropriate for patent and regulatory purposes. Medicis shall have
the right to review and copy such records (including raw data and scientific notebooks) at
reasonable times to the extent necessary for Medicis to exercise its rights under this Agreement.

          2.6 Reports. Within thirty (30) days following the end of each calendar quarter
during the term of the Development Program, Perrigo shall prepare and deliver to Medicis a written
summary report which shall describe the research performed to date under the Development Program
and all results, analysis and conclusions thereof.

     3. INTELLECTUAL PROPERTY/MARKETING.

          3.1 Research License. During the term of the Development Program, Medicis hereby
grants to Perrigo a non-exclusive license (without the right to grant sublicenses) under Medicis’
patents, know-how and other intellectual property rights for the sole purpose of conducting the
Development Program.

          3.2 License Grant. Perrigo hereby grants to Medicis a worldwide, perpetual,
irrevocable exclusive license (with the right to grant sublicenses through multiple tiers) under
the Perrigo IP Rights to make, have made, use, offer for sale, sell and import the Product. For
avoidance of doubt, the exclusive license is strictly limited to the Product and does not cover
rights to the Perrigo IP Rights for any product other than the Product. The foregoing license
shall survive the termination or expiration of the term of the Agreement for any reason.

          3.3 Product Technology. Perrigo shall promptly disclose to Medicis all Product
Technology. Medicis shall solely own all right, title and interest in and to the Product
Technology and all patent and other intellectual property rights therein. Perrigo hereby assigns
to Medicis all of its right, title and interest in and to the Product Technology and all patent and

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other intellectual property rights therein. Perrigo shall perform, during and after the term
of this Agreement, all acts that Medicis reasonably deems necessary or desirable to permit and
assist Medicis, at Medicis’ expense, in obtaining, perfecting and enforcing the full benefits,
enjoyment, rights and title throughout the world in the Product Technology and all patent and other
intellectual property rights therein. If Medicis is unable for any reason to secure Perrigo’s
signature to any document required to file, prosecute, register or memorialize the assignment of
any rights to the Product Technology as provided under this Agreement, Perrigo hereby irrevocably
designates and appoints Medicis and Medicis’ duly authorized officers and agents as Perrigo’s
agents and attorneys-in-fact to act for and on Perrigo’s behalf and instead of Perrigo to take all
lawfully permitted acts to further the filing, prosecution, registration, memorialization of
assignment, issuance and enforcement of such rights, all with the same legal force and effect as if
executed by Perrigo. The foregoing is deemed a power coupled with an interest and is irrevocable.
Medicis shall have the world-wide right to control the drafting, filing, prosecution, maintenance
and enforcement of patents covering the Product Technology and shall be fully responsible for
related costs.

          3.4 No Implied Licenses. Except as explicitly set forth in this Agreement, neither
party grants to the other party any license, express or implied, under its patents or other
intellectual property.

          3.5 Marketing of Product. Medicis shall have the sole right to make, use, sell,
distribute, market, exploit or otherwise commercialize the Product. Perrigo acknowledges and
agrees that, except as otherwise provided under this Agreement it shall have no right to and it
shall not (and shall not assist any third party to), make, have made, use, sell, distribute,
market, exploit or otherwise commercialize the Product.

          3.6 Regulatory Matters. Medicis shall have the exclusive responsibility, at its sole
discretion, for all preclinical, clinical, regulatory and commercialization activities regarding
the Product, including without limitation marketing, pricing, promotion, strategy, reimbursement,
branding, distribution, and sale. Medicis shall bear its own costs in connection with any such
activities, including the costs for conducting all pre-clinical and clinical studies. ***

     4. SUPPLY OF PRODUCT.

           4.1 Terms of Supply Agreement. Commencing on the date the Product NDA has been
submitted to the FDA (the “Supply Date”), the parties shall negotiate in good faith the terms of
and enter into a commercial supply agreement, which shall contain the following provisions:

                 4.1.1 For a period of three (3) years following approval of the NDA for the Product, Medicis
would exclusively purchase from Perrigo, and Perrigo would exclusively supply to Medicis all of
Medicis’ Product requirements in the United States, subject to Medicis’ right to qualify
alternative manufacturers for the Product.

                 4.1.2 Perrigo would be responsible for manufacture, delivery and supply of the Products.

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               4.1.3 Medicis would have the option to procure an alternative manufacturer and supplier for
the Products in the event Perrigo has a material supply interruption or otherwise failed to supply
Medicis’ requirements of Product.

               4.1.4 Perrigo would cooperate and assist in the transfer of all necessary technical
information to qualify the alternative manufacturer and in the event of a material supply
interruption, would cooperate and assist with the orderly transition of the manufacture of Products
to the alternative manufacturer.

               4.1.5 The price for the Product would be *** of Perrigo’s direct cost to manufacture the
Product, calculated in accordance with GAAP.

          4.2 Arbitration. If the parties are unable to agree upon the terms of the supply
agreement described in Section 4.1 within sixty (60) days after the Supply Date, then either party
may, by written notification to the other party, submit the matter to binding “baseball”
arbitration to determine the terms of such supply agreement as follows. Promptly following receipt
of such notice, the parties shall meet and discuss in good faith and agree on an arbitrator to
resolve the issue, which arbitrator shall be neutral and independent of both parties, shall have
significant experience and expertise in supply agreements in the generic pharmaceutical industry,
and shall have some experience in mediating or arbitrating issues relating to such agreements. If
the parties cannot agree on such arbitrator within thirty (30) days of request by a party for
arbitration, then such arbitrator shall be appointed by the American Arbitration Association, which
arbitrator must meet the foregoing criteria. Within fifteen (15) days after an arbitrator is
selected (or appointed, as the case may be), each party will deliver to both the arbitrator and the
other party a detailed written proposal setting forth its proposed terms for such supply agreement,
which terms shall not conflict with the terms set forth in Section 4.1 (the “Proposed Terms” of the
party) and a memorandum (the “Support Memorandum”) in support thereof, not exceeding ten (10) pages
in length. The parties will also provide the arbitrator a copy of this Agreement, as may be
amended at such time. Within fifteen (15) days after receipt of the other party’s Proposed Terms
and Support Memorandum, each party may submit to the arbitrator (with a copy to the other party) a
response to the other party’s Support Memorandum, such response not exceeding five (5) pages in
length. Neither party may have any other communications (either written or oral) with the
arbitrator other than for the sole purpose of engaging the arbitrator or as expressly permitted in
this Section 4.2; provided that, the arbitrator may convene a hearing if the arbitrator so chooses
to ask questions of the parties and hear oral argument and discussion regarding each party’s
Proposed Terms. Within sixty (60) days after the arbitrator’s appointment, the arbitrator will
select one of the two Proposed Terms (without modification) provided by the parties that he or she
believes is most consistent with the intention underlying and agreed principles set forth in this
Agreement and most accurately reflects industry norms for a transaction of this type. The decision
of the arbitrator shall be final, binding, and unappealable and the parties shall promptly enter
into a Distribution Agreement having the terms set forth in the Proposed Terms selected by the
arbitrator. For clarity, the arbitrator must select as the only method to determine the terms of
such supply agreement one of the two sets of Proposed Terms, and may not combine elements of both
Proposed Terms or take any other action.

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     5. FINANCIAL CONSIDERATIONS.

          5.1 Upfront Payment. In consideration of the exclusive rights granted by Perrigo to
Medicis and Medicis’ acceptance of the Development Plan within five (5) Business Days after the
Effective Date, Medicis shall pay to Perrigo a payment of Three Million United States Dollars
($3,000,000 USD).

          5.2 Milestone Payments. Medicis shall pay to Perrigo the milestone payment amounts
set forth in the following table within thirty (30) days after the first achievement of the
corresponding milestone:

	 	 	 
	Milestone Event
	 	Milestone Payment
	 
	 	 
	 	 	 
	
***

	 	Two Million United States Dollars

($2,000,000 USD)
	
***

	 	One Million United States Dollars

($1,000,000 USD)
	
***

	 	One Million United States Dollars

($1,000,000 USD)
	
***

	 	One Million United States Dollars

($1,000,000 USD)

Each such milestone shall be payable only once pursuant to this Section 5.2 upon the initial
achievement of such milestone. *** If the parties agree to select another product to develop in
accordance with Section 6.3, they shall utilize good faith negotiations to determine the milestone
events and obligations associated with the development of such product; provided that ***

          5.3 Royalties. Subject to the terms and conditions of this Agreement, during the
Royalty Term, Medicis shall pay to Perrigo a royalty on Net Sales of the Product as follows: ***
All royalties due under this Section 5.3 shall be paid quarterly within sixty (60) days after the
end of the relevant calendar quarter for which royalties are due. Each royalty payment shall be
accompanied by a written report stating the number and description of all Product sold during the
relevant calendar quarter; the gross sales associated therewith; and the calculation of Net Sales
thereon, including without limitation the amount of any deduction provided for in the definition of
Net Sales. ***

          5.4 Taxes. Medicis shall be responsible for and may withhold from payments made to
Perrigo under this Agreement any taxes required to be withheld by Medicis under applicable law.
Accordingly, if any such taxes are levied on such payments due hereunder (“Withholding Taxes”),
Medicis shall (i) deduct the Withholding Taxes from the payment amount, (ii) pay all applicable
Withholding Taxes to the proper taxing authority, and (iii) send evidence of the obligation
together with proof of tax payment to Perrigo within sixty (60) days following that tax payment.

          5.5 Audit Rights. On reasonable advance written notice from Perrigo, Medicis shall
make all such records, books of account, information and data concerning the royalty payment owing
under Section 5.3 available for inspection during normal business hours

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by Perrigo or its auditors for the purpose of general review or audit; provided that Perrigo
may not request such inspection more than once in any calendar year unless a discrepancy has been
identified by Perrigo. Upon reasonable belief of discrepancy or dispute, Perrigo or Perrigo’s
external auditors shall be entitled to take copies or extracts from such records, books of account,
information and data (but only to the extent related to the contractual obligations set out in this
Agreement) during any review or audit provided the external auditor signs a confidentiality
agreement with Medicis providing that, as between the external auditor and Medicis, such records,
books of account, information and data shall be treated as Confidential Information of Medicis but
may be disclosed to Perrigo. Perrigo shall be solely responsible for its costs in making any such
review and audit, unless Perrigo identifies a discrepancy in the calculation of the share of Gross
Profit or royalty payment owed, as applicable, under this Agreement in any calendar year from those
properly payable for that calendar year of *** or greater, in which event Medicis shall be solely
responsible for the cost of such review and audit and pay Perrigo any underpayment. All
information disclosed by Medicis or its Affiliates pursuant to this Section shall be deemed
Confidential Information of Medicis.

     6. TERM AND TERMINATION.

          6.1 Term. Subject to Section 6.2 below, this Agreement shall expire on the expiration
of Medicis’ obligation to pay royalties to Perrigo under Section 5.3. The license grant under
Section 3.2 shall be effective at all times prior to such expiration and following such expiration
of this Agreement Medicis shall have a fully paid-up, non-exclusive license under the Perrigo IP
Rights to make, have made, use, sell, offer for sale and import Product.

          6.2 Termination for Cause. Either party may terminate this Agreement upon or after
the breach of any material provision of this Agreement by the other party if the other party has
not cured such breach within thirty (30) days after receipt of express written notice thereof by
the non-breaching party.

          6.3 Medicis right to Terminate for Failure of Commercial Potential. In the event that
*** Medicis may provide notice to Perrigo that all work relating to the development and
commercialization of the Product be terminated. If Medicis provides such notice, the parties shall
meet within thirty (30) days of the notification date to determine whether the parties can select a
replacement product to be governed by this Joint Development Agreement. If the parties cannot
agree upon a replacement product within sixty (60) days of such meeting, Medicis shall have the
right to terminate this Agreement by providing written notice to Perrigo, provided that Medicis
shall remain liable for surviving payments as expressly provided for in Section 5.2.

          6.4 Effect of Expiration or Termination. Expiration or termination of this Agreement
shall not relieve the parties of any obligation accruing prior to such expiration or termination,
and the provisions of Sections 3.2, 3.3, 6.4, 7, 9 and 10 shall survive the expiration or
termination of this Agreement.

     7. CONFIDENTIALITY.

          7.1 Confidentiality. During the term of this Agreement, and for a period of five (5)
years following the expiration or earlier termination hereof, except with respect to any

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Confidential Information constituting a trade secret in which case the receiving party’s
obligation continues in perpetuity, each party shall maintain in confidence all Confidential
Information disclosed by the other party (including all Confidential Information disclosed under
the Confidentiality Agreement), and shall not use, grant the use of or disclose to any Third Party
the Confidential Information of the other party other than as expressly permitted hereby. Each
party shall notify the other promptly upon discovery of any unauthorized use or disclosure of the
other party’s Confidential Information.

          7.2 Permitted Disclosures. Either party may disclose Confidential Information of the
disclosing party (a) on a need-to-know basis, to such party’s directors, officers and employees to
the extent such disclosure is reasonably necessary in connection with such party’s activities as
expressly authorized by this Agreement, and (b) to those agents and consultants who need to know
such information to accomplish the purposes of this Agreement (collectively, “Permitted
Recipients”); provided such Permitted Recipients are bound to maintain such Confidential
Information in confidence to the same extent as set forth in Section 7.1.

          7.3 Litigation and Governmental Disclosure. Each party may disclose Confidential
Information hereunder to the extent such disclosure is reasonably necessary for prosecuting or
defending litigation, complying with applicable governmental regulations, and in the case of
Medicis as the receiving party to conduct pre-clinical or clinical trials of the Product, provided
that if a party is required by law or regulation to make any such disclosure of the other party’s
Confidential Information it will give reasonable advance notice to the other party of such
disclosure requirement and will use good faith efforts to assist such other party to secure a
protective order or confidential treatment of such Confidential Information required to be
disclosed.

          7.4 Limitation of Disclosure. The parties agree that, except as otherwise may be
required by applicable laws, regulations, rules or orders, including without limitation the rules
and regulations promulgated by the United States Securities and Exchange Commission, and except as
may be authorized in Section 7.4, no information concerning this Agreement and the transactions
contemplated herein shall be made public by either party without the prior written consent of the
other.

          7.5 Publicity. Neither party shall make any publicity releases, interviews or other
dissemination of information concerning this Agreement or its terms, or either party’s performance
hereunder, to communication media, financial analysts or others without the prior written approval
of the other party, which approval shall not be unreasonably withheld, delayed or conditioned.
Notwithstanding anything to the contrary in this Agreement, the parties understand and agree that
either party, may, if so required, disclose some or all of the information included in this
Agreement or other Confidential Information of the other party (a) in order to comply with its
obligations under the law, including the United States Securities Act of 1933, the United States
Securities Exchange Act of 1934; (b) in order to comply with the listing standards or agreements of
any national or international securities exchange or The NASDAQ Stock Market or New York Stock
Exchange or other similar laws of a governmental authority; (c) to respond to an inquiry of a
governmental authority or regulatory authority as required by law; or (d) in a judicial,
administrative or arbitration proceeding. In any such event

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the party making such disclosure shall (i) provide the other party with as much advance notice
as reasonably practicable of the required disclosure, (ii) cooperate with the other party in any
attempt to prevent or limit the disclosure, and (iii) limit any disclosure to the specific purpose
at issue.

     8. REPRESENTATIONS AND WARRANTIES.

          8.1 Mutual Representations. Each party hereby represents and warrants to the other
party that (a) the person executing this Agreement is authorized to execute this Agreement; (b)
this Agreement is legal and valid and the obligations binding upon such party are enforceable by
their terms; and (c) the execution, delivery and performance of this Agreement does not conflict
with any agreement, instrument or understanding, oral or written, to which such party may be bound,
nor violate any law or regulation of any court, governmental body or administrative or other agency
having jurisdiction over it.

          8.2 Compliance. Perrigo represents, warrants and covenants that:

               (a) neither it nor any of its personnel (including subcontractors) have been nor are
disqualified or debarred under Section 306 of the Federal Food, Drug and Cosmetic Act (as amended
by the Generic Drug Enforcement Act of 1992), 21 U.S.C. § 336;

               (b) it shall not use in any capacity the services of any person debarred, disqualified or
under investigation under the provisions of the Section 306 of the Federal Food, Drug and Cosmetic
Act (as amended by the Generic Drug Enforcement Act of 1992), 21 U.S.C. § 336, and will notify
Medicis immediately in the event Perrigo is made aware of any investigation or proceeding for
debarment;

               (c) neither it nor any personnel within five (5) years preceding the Effective Date have been
convicted of any violation of the Federal Food, Drug and Cosmetic Act;

               (d) it shall comply with all applicable laws and regulations in the performance of its
obligations under the Agreement; and

               (e) it shall not use any Ineligible Person or a person on an Exclusion List in connection with
the performance of any of its obligations or activities under the Agreement.

          8.3 Disclaimer of Warranties. Except for those warranties set forth in Section 8.1
and Section 8.2, neither party makes any warranty, written, oral, express or implied, with respect
to Development Program or the Product. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE
AND NONINFRINGEMENT HEREBY ARE DISCLAIMED BY BOTH PARTIES.

          8.4 Limitation of Liability. WITH THE EXCEPTION OF DAMAGES RESULTING FROM A PARTY’S
BREACH OF ITS CONFIDENTIALITY OBLIGATIONS UNDER THE AGREEMENT OR A PARTY’S OBLIGATIONS UNDER
SECTION 9

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(INDEMNIFICATION), UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE FOR LOSS OF USE OR
PROFITS OR OTHER COLLATERAL, SPECIAL, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES IN CONNECTION
WITH THIS AGREEMENT, WHETHER SUCH CLAIMS ARE FOUNDED IN TORT OR CONTRACT.

     9. INDEMNIFICATION.

          9.1 Medicis Indemnification. Medicis shall indemnify, defend and hold harmless
Perrigo and its directors, managers, members, officers, employees, authorized subcontractors and
agents (collectively the “Perrigo Parties”) from and against any and all liabilities, obligations,
penalties, judgments, disbursements of any kind and nature, losses, damages, costs and expenses
(including, without limitation, reasonable attorney’s fees and costs) incurred as a result of any
claims, demands, actions or other proceedings by Third Parties against any of the Perrigo Parties
to the extent arising out of (a) a breach by Medicis of any representation, warranty or covenant
under this Agreement, or (b) the research, development, regulatory approval or commercialization of
the Products by or on behalf of Medicis.

          9.2 Perrigo Indemnification. Perrigo shall indemnify, defend and hold harmless
Medicis and its directors, managers, members, officers, employees, authorized subcontractors and
agents (collectively the “Medicis Parties”) from and against any and all liabilities, obligations,
penalties, judgments, disbursements of any kind and nature, losses, damages, costs and expenses
(including, without limitation, reasonable attorney’s fees and costs) incurred as a result of any
claims, demands, actions or other proceedings by Third Parties against any of the Medicis Parties
to the extent arising out of (a) a breach by Perrigo of any representation, warranty or covenant
under this Agreement, or (b) the conduct of the Development Program by or on behalf of Perrigo.

          9.3 Obligations. A party which intends to claim indemnification under this Section 9
(the “Indemnified Party”) shall promptly notify the other party (the “Indemnifying Party”) in
writing of any claim, demand, action, or other proceeding in respect of which the Indemnified Party
intends to claim such indemnification; provided, however, that failure to provide such notice
within a reasonable period of time shall not relieve the Indemnifying Party of any of its
obligations hereunder except to the extent the Indemnifying Party is prejudiced by such failure.
The Indemnified Party shall permit the Indemnifying Party, at its discretion, to settle any such
action, claim or other matter. Notwithstanding the foregoing, the Indemnifying Party shall not
enter into any settlement that would adversely affect the Indemnified Party’s rights hereunder, or
impose any obligations on the Indemnified Party in addition to those set forth herein, in order for
it to exercise such rights, without the Indemnified Party’s prior written consent, which shall not
be unreasonably withheld or delayed. No such action, claim or other matter shall be settled
without the prior written consent of the Indemnifying Party, which shall not be unreasonably
withheld or delayed. The Indemnified Party shall reasonably cooperate with the Indemnifying Party
and its legal representatives in the investigation and defense of any claim, demand, action, or
other proceeding covered by the indemnification obligations of this
Section 9. The Indemnified Party shall have the right, but not the obligation, to be
represented in such defense by counsel of its own selection and at its own expense.

11

 

     10. GENERAL PROVISIONS.

          10.1 Notices. All notices hereunder shall be delivered by facsimile (confirmed by
overnight delivery), or by overnight delivery with a reputable overnight delivery service, to the
following address of the respective parties:

	 	 	 	 
	 	If to Medicis:

	 	Medicis Pharmaceutical Corporation

7720 North Dobson Road

Scottsdale, Arizona 85256

Attn: Chief Executive Officer

Facsimile: 480-291-5175
	 	 
	 	 
	 	with a copy to:

	 	Medicis Pharmaceutical Corporation

7720 North Dobson Road

Scottsdale, Arizona 85256

Attn: General Counsel

Facsimile: 480-291-8508
	 	 
	 	 
	 	If to Perrigo:

	 	Perrigo Company

515 Eastern Avenue

Allegan, Michigan 49010

Attn: Chief Executive Officer

Facsimile: 269-673-1386
	 	 
	 	 
	 	With a copy to:

	 	Perrigo Company

515 Eastern Avenue

Allegan, Michigan 49010

Attn: General Counsel

Facsimile: 269-673-1386

     Notices shall be effective on the day of receipt. A party may change its address listed above
by notice to the other party given in accordance with this Section 10.1.

          10.2 Entire Agreement. The parties hereto acknowledge that this Agreement, together
with the Non-Disclosure Agreement entered into between the parties effective as of January 13, 2009
(the “NDA”), sets forth the entire agreement and understanding of the parties and supersedes all
prior written or oral agreements or understandings with respect to the subject matter hereof.
Notwithstanding Section 10 of the NDA, the rights and obligations of the parties under the NDA,
including without limitation under Section 6 of the NDA, shall continue until the expiration or
termination of this Agreement. No modification of any of the terms of this Agreement, or any
amendments thereto, shall be deemed to be valid unless in writing and signed by an authorized agent
or representative of both parties hereto. No course of dealing or usage of trade shall be used to
modify the terms and conditions herein. This Agreement shall be binding on each of Perrigo and
Medicis and their respective permitted successors and assigns.

          10.3 Bankruptcy. All rights granted under this Agreement by Perrigo to Medicis are
and shall be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy

12

 

Code, licenses of
rights to “intellectual property” as defined under Section 101(52) of the US. Bankruptcy Code. The
parties agree that Medicis, as a licensee of such rights under this Agreement, shall retain and may
fully exercise all of its rights and elections under the U.S. Bankruptcy Code, subject to
performance by Medicis of its pre-existing obligations under this Agreement. The parties further
agree that, if a bankruptcy proceeding is commenced by or against Perrigo, Medicis shall be
entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual
property and all embodiments of such intellectual property, and the same, if not already in
Medicis’ possession, shall be promptly delivered to Medicis (a) after any such commencement of a
bankruptcy proceeding upon request of Medicis, unless Perrigo elects to continue to perform all of
its obligations under this Agreement, or (b) if not delivered under subsection (a) above, upon the
rejection of this Agreement by or on behalf of Perrigo upon written request therefore by Medicis.

          10.4 Waiver. None of the provisions of this Agreement (including the Exhibits hereto)
or the Development Plan shall be considered waived by any party hereto unless such waiver is agreed
to, in writing, by authorized agents of such party. The failure of a party to insist upon strict
conformance to any of the terms and conditions hereof, or failure or delay to exercise any rights
provided herein or by law shall not be deemed a waiver of any rights of any party hereto.

          10.5 Obligations to Third Parties. Each party warrants and represents that this
Agreement does not conflict with any contractual obligations, expressed or implied, undertaken with
any Third Party.

          10.6 Assignment. Neither party shall assign this Agreement or any part hereof or any
interest herein (whether by operation of law or otherwise) to any Third Party (or use any
subcontractor) without the written approval of the other party; provided, however, that either
party may assign this Agreement without such consent in the case of an assignment to an Affiliate
or a merger, consolidation, change in control or sale of all or substantially all of the assets of
such party relating to the business or assets covered by this Agreement. No assignment shall be
valid unless the permitted assignee(s) assumes all obligations of its assignor under this
Agreement. No assignment shall relieve any party of responsibility for the performance of its
obligations hereunder. Any purported assignment in violation of this Section 10.6 shall be void.

          10.7 Independent Contractor. Perrigo and Medicis are acting under this Agreement as
independent contractors and neither shall be considered an agent of, or joint venturer with, the
other. Unless otherwise provided herein to the contrary, each party shall furnish all expertise,
labor, supervision, machining and equipment necessary for the performance of its obligations
hereunder and shall obtain and maintain all building and other permits and licenses required by
public authorities.

          10.8 Governing Law. In any action brought regarding the validity, construction and
enforcement of this Agreement, it shall be governed in all respects by the laws of the State of
Arizona, without regard to the principles of conflicts of laws.

          10.9 Severability. If any term or provision of this Agreement shall for any reason be
held invalid, illegal or unenforceable in any respect, such invalidity, illegality or

13

 

unenforceability shall not affect any other term or provision hereof, and this Agreement shall be
interpreted and construed as if such term or provision, to the extent the same shall have been held
to be invalid, illegal or unenforceable, had never been contained herein.

          10.10 Headings, Interpretation. The headings used in this Agreement are for
convenience only and are not part of this Agreement.

          10.11 Counterparts. The Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

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

	 	 	 	 	 	 	 	 	 	 	 
	PERRIGO ISRAEL PHARMACEUTICALS LTD.	 	 	 	MEDICIS PHARMACEUTICAL
CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:
	 	 	 	 
	 

	 
	 	 	 
	 	 	 
	 	Name:  

	 	 	 	 	 	Name:  	 	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 
	 	Title:

	 	 	 	 	 	Title:	 	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 

14

 

EXHIBIT A

Development Plan

***

15

 

EXHIBIT B

Perrigo Patent Rights

***

16exv10w5

Exhibit 10.5

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”) is made as of ________ __, 20___ (the
“Effective Date”) by and between Medicis Pharmaceutical Corporation, a Delaware corporation
(the “Company”), and _________ who serves as a [director and/or officer] of the
Company (“Indemnitee”).

     WHEREAS, highly competent persons have become more reluctant to serve as directors or officers
of companies unless they are provided with adequate protection through insurance and/or
indemnification against the risks of claims being asserted against them arising out of their
service to and activities on behalf of such companies;

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in
order to help attract and retain qualified individuals as directors and officers, the best
interests of the Company and its stockholders will be served by attempting to maintain, on an
ongoing basis, at the Company’s sole expense, insurance to protect persons serving the Company and
its subsidiaries as directors or officers from certain liabilities;

     WHEREAS, the Board has determined that, in order to help attract and retain qualified
individuals as directors and officers, the best interests of the Company and its stockholders will
be served by assuring such individuals that the Company will indemnify them to the maximum extent
permitted by law;

     WHEREAS, the Certificate of Incorporation (the “Charter”) of the Company permits
indemnification of the officers and directors of the Company;

     WHEREAS, the Board has determined it is reasonable, prudent and necessary for the Company
contractually to obligate itself to indemnify, and to advance defense costs on behalf of, such
persons to the fullest extent permitted by applicable law so that they will serve or continue to
serve the Company free from undue concern that they will not be so indemnified;

     WHEREAS, this Agreement is a supplement to and in furtherance of the Charter and shall not be
deemed a substitute therefor, nor shall it be deemed to diminish or abrogate any rights of
Indemnitee thereunder;

     WHEREAS, the Board recognizes that the Indemnitee does not regard the protection available
under the Company’s Charter, bylaws and insurance program as adequate in the present circumstances,
and may not be willing to serve or continue to serve as a director, officer or in such other
capacity as the Company may request without adequate protection, and the Company desires Indemnitee
to serve in such capacity; and

 

 

     WHEREAS, Indemnitee is willing to serve, and continue to serve, [as a member of the Board (and
any committee thereof)] [or] [as an officer of the Company], on the condition that he or she be
indemnified as provided for herein.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     1. Services to the Company. Indemnitee will serve or continue to serve, at the will of the
Company, as a director or officer of the Company for so long as Indemnitee is duly elected or
appointed or until Indemnitee tenders his or her resignation. This Agreement shall not serve as a
binding commitment on the part of Indemnitee to continue to serve in such capacity, or on the part
of the Company to cause him or her to be nominated to successive terms as a director or officer or
to not otherwise be removed for cause or without cause, as permitted under law. This Agreement
shall not be deemed an employment contract between the Company (or any of its subsidiaries or any
Enterprise) and Indemnitee. Indemnitee specifically acknowledges that Indemnitee’s employment with
the Company (or any of its subsidiaries or any Enterprise), if any, is at will, and the Indemnitee
may be discharged at any time for any reason, with or without cause, except as may be otherwise
provided in any written employment contract between Indemnitee and the Company (or any of its
subsidiaries or any Enterprise), other applicable formal severance policies duly adopted by the
Board, or, with respect to service as a director or officer of the Company, by the Company’s
Charter, bylaws, and the General Corporation Law of the State of Delaware (the “DGCL”).

     2. Definitions. As used in this Agreement:

          (a) “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 issued
under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person becoming
a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company
with another entity.

          (b) A “Change in Control” shall be deemed to occur upon the earliest to occur after
the date of this Agreement of any of the following events:

               (i) Acquisition of Stock by Third Party. Any Person (as defined below, but excluding
any subsidiary or employee benefit plan of the Company), subsequent to the date of this Agreement,
becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing
fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding
securities entitled to vote generally in the election of directors, unless (1) the change in the
relative Beneficial Ownership of the Company’s securities by any Person results solely from a
reduction in the aggregate number of outstanding shares of securities entitled to vote generally in
the election of directors, or (2) such acquisition was approved in advance by the Continuing
Directors (as defined below) and such acquisition would not constitute a Change in Control under
part (iii) of this definition;

2

 

               (ii) Change in Board of Directors. Individuals who, as of the date hereof, constitute
the Board, and any new director whose election by the Board or nomination for election by the
Company’s stockholders was approved by a vote of at least two thirds of the directors then still in
office who were directors on the date hereof or whose election for nomination for election was
previously so approved (collectively, the “Continuing Directors”), cease for any reason to
constitute at least a majority of the members of the Board at any time after the date hereof;

               (iii) Corporate Transactions. The effective date of a reorganization, merger or
consolidation of the Company (a “Business Combination”), in each case, unless, following
such Business Combination: (1) all or substantially all of the individuals and entities who were
the Beneficial Owners of securities entitled to vote generally in the election of directors
immediately prior to such Business Combination beneficially own, directly or indirectly, more than
51% of the combined voting power of the then outstanding securities entitled to vote generally in
the election of directors of the Company resulting from such Business Combination (including,
without limitation, a corporation which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or more Subsidiaries) in
substantially the same proportions as their ownership, immediately prior to such Business
Combination, of the securities entitled to vote generally in the election of directors; (2) no
Person (excluding any corporation resulting from such Business Combination) is the Beneficial
Owner, directly or indirectly, of 15% or more of the combined voting power of the then outstanding
securities entitled to vote generally in the election of directors of such corporation except to
the extent that such ownership existed prior to the Business Combination; and (3) at least a
majority of the Board resulting from such Business Combination were Continuing Directors at the
time of the execution of the initial agreement, or of the action of the Board, providing for such
Business Combination;

               (iv) Liquidation. The approval by the stockholders of the Company of a complete
liquidation of the Company or an agreement or series of agreements for the sale or disposition by
the Company of all or substantially all of the Company’s assets, other than factoring the Company’s
current receivables or escrows due (or, if such approval is not required, the decision by the Board
to proceed with such a liquidation, sale, or disposition in one transaction or a series of related
transactions); or

               (v) Other Events. There occurs any other event of a nature that would be required to
be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any
similar item on any similar schedule or form) promulgated under the Exchange Act (as defined
below), whether or not the Company is then subject to such reporting requirement.

          (c) “Corporate Status” shall describe the status of a person who is or was a director,
officer, trustee, partner, member, fiduciary, employee or agent of the Company or of any other
Enterprise (as defined below), which such person is or was serving at the request of the Company.

3

 

          (d) “Disinterested Director” shall mean a director of the Company who is not and was
not a party to the Proceeding (as defined below) in respect of which indemnification is sought by
Indemnitee.

          (e) “Enterprise” shall mean any corporation, limited liability company, partnership,
joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was
serving at the request of the Company as a director, officer, trustee, administrator, partner,
member, fiduciary, employee or agent.

          (f) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from
time to time.

          (g) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts and accountants, witness fees, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types and amounts customarily incurred in connection with
prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a
witness in, or otherwise participating in, a Proceeding (as defined below). Expenses also shall
include costs incurred in connection with any appeal resulting from any Proceeding (as defined
below), including, without limitation, the premium, security for, and other costs relating to any
bond, supersedeas bond, or other appeal bond or its equivalent, to the extent permitted by law.
Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of
judgments or fines against Indemnitee.

          (h) “Independent Counsel” shall mean a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the past five (5) years
has been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning the Indemnitee under this Agreement, or
other indemnitees under similar indemnification agreements), or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing,
the term “Independent Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

          (i) References to “fines” shall include any excise tax assessed on a person with
respect to any employee benefit plan pursuant to applicable law.

          (j) References to “serving at the request of the Company” shall include any service
provided at the request of the Company as a director, officer, trustee, administrator, partner,
member, fiduciary, employee or agent of the Company which imposes duties on, or involves services
by, such director, officer, trustee, administrator, partner, member, fiduciary, employee or agent
with respect to an employee benefit plan, its participants or beneficiaries.

4

 

          (k) “Person” shall have the meaning set forth in Sections 13(d) and 14(d) of the
Exchange Act; provided, however, that Person shall exclude (i) the Company and (ii) any trustee or
other fiduciary holding securities under an employee benefit plan of the Company or a subsidiary of
the Company.

          (l) Any action taken or omitted to be taken by a person for a purpose which he or she
reasonably believed to be in the interests of the participants and beneficiaries of an employee
benefit plan shall be deemed to have been taken in “good faith” and for a purpose which is
“not opposed to the best interests of the Company”, as such terms are referred to in this
Agreement and used in the DGCL.

          (m) The term “Proceeding” shall include any threatened, pending or completed action,
suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing or any other actual, threatened or completed proceeding, whether brought in the right of
the Company or otherwise and whether of a civil, criminal, administrative or investigative nature,
including any related appeal, in which Indemnitee was, is or will be involved as a party or witness
or otherwise by reason of the fact that Indemnitee is or was a director, officer, trustee,
administrator, partner, member, fiduciary, employee or agent of the Company, by reason of any
action taken or not taken by him or her while acting as director, officer, trustee, administrator,
partner, member, fiduciary, employee or agent of the Company, or by reason of the fact that he or
she is or was serving at the request of the Company as a director, officer, trustee, administrator,
partner, member, fiduciary, employee or agent of any other Enterprise, in each case whether or not
serving in such capacity at the time any liability or expense is incurred for which
indemnification, reimbursement, or advancement of expenses can be provided under this Agreement.

     3. Indemnity in Third-Party Proceedings. The Company shall indemnify and hold harmless
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is made, or is
threatened to be made, a party to or a participant in (as a witness or otherwise) any Proceeding,
other than a Proceeding by or in the right of the Company to procure a judgment in its favor.
Pursuant to this Section 3, Indemnitee shall be indemnified and held harmless against all
judgments, fines, penalties, amounts paid in settlement (if such settlement is approved in writing
in advance by the Company, which approval shall not be unreasonably withheld) (including, without
limitation, all interest, assessments and other charges paid or payable in connection with or in
respect of any of the foregoing) (collectively, “Losses”) and Expenses actually and reasonably
incurred by Indemnitee or on his or her behalf in connection with such Proceeding or any action,
discovery event, claim, issue or matter therein or related thereto, if Indemnitee acted in good
faith, for a purpose which he or she reasonably believed to be in or not opposed to the best
interests of the Company and, in the case of a criminal Proceeding, in addition, had no reasonable
cause to believe that his or her conduct was unlawful.

     4. Indemnity in Proceedings by or in the Right of the Company. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is made, or is
threatened to be made, a party to or a participant in (as a

5

 

witness or otherwise) any Proceeding by or in the right of the Company to procure a judgment
in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified and held harmless
against all Expenses actually and reasonably incurred by him or her or on his or her behalf in
connection with the defense or settlement of such Proceeding or any action, discovery event, claim,
issue or matter therein or related thereto, if Indemnitee acted in good faith, for a purpose which
he or she reasonably believed to be in or not opposed to the best interests of the Company. No
indemnification, however, shall be made under this Section 4 in respect of any claim, issue or
matter as to which Indemnitee shall have been adjudged to be liable to the Company, unless and only
to the extent that the court in which the Proceeding was brought or, if no Proceeding was brought
in a court, any court of competent jurisdiction, determines upon application that, in view of all
the circumstances of the case, Indemnitee fairly and reasonably is entitled to indemnification for
such portion of the Expenses as the court deems proper.

     5. Indemnification for Expenses Where Indemnitee is Wholly or Partly Successful.
Notwithstanding and in addition to the provisions of Section 3 and 4 of this Agreement, to the
fullest extent permitted by applicable law and to the extent that Indemnitee is a party to a
Proceeding and is successful, on the merits or otherwise, in the defense of any claim, issue or
matter therein, the Company shall indemnify and hold harmless Indemnitee against all Expenses
actually and reasonably incurred by him or her or on his or her behalf in connection with such
successful defense. For the avoidance of doubt, if Indemnitee is not wholly successful in such
Proceeding but is successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all
Expenses actually and reasonably incurred by him or her or on his or her behalf in connection with
each successfully resolved claim, issue or matter. For purposes of this Section 5, and without
limitation, the termination of any claim, issue or matter in such a Proceeding by withdrawal or
dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim,
issue or matter.

     6. Indemnification for Expenses of a Witness. To the fullest extent permitted by applicable
law and to the extent that Indemnitee is, by reason of his or her Corporate Status, a witness in or
otherwise incurs Expenses in connection with any Proceeding to which Indemnitee is not a party, he
or she shall be indemnified and held harmless by the Company against all Expenses actually and
reasonably incurred by him or her or on his or her behalf in connection therewith.

     7. Additional Indemnification Provisions.

          (a) Notwithstanding any limitation in Sections 3, 4, or 5 hereof or in Section 145 of the DGCL
or other applicable statutory provision, the Company shall indemnify Indemnitee to the fullest
extent permitted by law if Indemnitee is made, or is threatened to be made, a party to any
Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its
favor) against all Losses and Expenses actually and reasonably incurred by Indemnitee in connection
with the Proceeding, provided that no indemnification shall be made under this Section 7(a) on
account of

6

 

Indemnitee’s conduct which constitutes a breach of Indemnitee’s duty of loyalty to the Company
or its stockholders or is an act or omission not in good faith or which involves intentional
misconduct or a knowing violation of the law.

          (b) Notwithstanding anything in this Agreement to the contrary, no determination as to
entitlement to indemnification under this Agreement shall be required to be made prior to the final
disposition of the Proceeding.

          (c) For purposes of Sections 7(a), the meaning of the phrase “to the fullest extent
permitted by law” shall include, but not be limited to:

               (i) to the fullest extent authorized or permitted by the then-applicable provisions of the
DGCL or other applicable statutory provision, that authorize or contemplate indemnification by
agreement, or the corresponding provision of any amendment to or replacement of the DGCL or other
applicable statutory provision, and

               (ii) to the fullest extent authorized or permitted by any amendments to or replacements of the
DGCL or other applicable statutory provision, adopted after the date of this Agreement that
increase the extent to which a corporation limited liability company or partnership, as applicable,
may indemnify its officers, directors or persons holding similar fiduciary responsibilities.

          (d) Indemnitee shall be entitled to the prompt payment of all Expenses reasonably incurred in
enforcing successfully (fully or partially) this Agreement to the extent permitted by applicable
law.

     8. Contribution. To the fullest extent permissible under applicable law, if the
indemnification provided for in this Agreement is unavailable to Indemnitee in whole or in part for
any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the
amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid
or to be paid in settlement and/or for Expenses, in connection with any claim relating to an
indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits
received by the Company, on the one hand, and Indemnitee, on the other, as a result of the event(s)
and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the
Company, on the one hand (and its directors, officers, employees and agents) and Indemnitee, on the
other, in connection with such event(s) and/or transaction(s).

     9. Exclusions. Notwithstanding any provision in this Agreement, the Company shall not be
obligated under this Agreement to make any indemnity in connection with any claim made against
Indemnitee:

          (a) for which payment actually has been received by or on behalf of Indemnitee under any
insurance policy or other indemnity provision, except with respect

7

 

to any excess beyond the amount actually received under such insurance policy or other
indemnity provision; or

          (b) for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of the Company or any subsidiary of the Company within the meaning of
Section 16(b) of the Exchange Act, as amended, or similar provisions of state blue sky law, state
statutory law or common law, or (ii) any reimbursement of the Company by the Indemnitee of any
bonus or other incentive-based or equity-based compensation or of any profits realized by the
Indemnitee from the sale of securities of the Company, as required in each case under the Exchange
Act (including any such reimbursements that arise from an accounting restatement of the Company
pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the
payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in
violation of Section 306 of the Sarbanes-Oxley Act); or

          (c) prior to a Change in Control, in connection with any Proceeding (or any part of any
Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding)
initiated by Indemnitee against the Company (other than any Proceeding referred to in Sections
14(d) or (e) below or any other Proceeding commenced to recover any Expenses referred to in Section
7(c) above) or its directors, officers, employees or other indemnitees, unless (i) the Board
authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the
Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the
Company under applicable law; or

          (d) if the funds at issue were paid pursuant to a settlement approved by a court and
indemnification would be inconsistent with any condition with respect to indemnification expressly
imposed by the court in approving the settlement.

     10. Advances of Expenses; Defense of Claim.

          (a) The Company shall advance pursuant to this Section 10(a) the Expenses incurred by
Indemnitee in connection with any Proceeding within thirty (30) days after the receipt by the
Company of a written statement or statements requesting such advances from time to time, whether
prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest
free. Advances shall be made without regard to Indemnitee’s ability to repay such advances.
Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce such
right to receive advances. Notwithstanding any provision of this Agreement to the contrary, the
Indemnitee shall be entitled to advances of Expenses incurred by him or her or on his or her behalf
in connection with a Proceeding that Indemnitee claims is covered by Sections 3 and 4 hereof, prior
to a final determination of eligibility for indemnification and prior to the final disposition of
the Proceeding, upon the execution and delivery to the Company of an undertaking by or on behalf of
the Indemnitee providing that the Indemnitee will repay such advances to the extent that it
ultimately is determined that Indemnitee is not

8

 

entitled to be indemnified by the Company. This Section 10(a) shall not apply to any claim
made by Indemnitee for which indemnity is excluded pursuant to Section 9.

          (b) The Company will be entitled to participate in the Proceeding at its own expense.

          (c) The Company shall not settle any action, claim or Proceeding (in whole or in part) which
would impose any Expense, judgment, fine, penalty or limitation on the Indemnitee without the
Indemnitee’s prior written consent, which consent shall not be unreasonably withheld.

     11. Procedure for Notification and Application for Indemnification.

          (a) Within sixty (60) days after the actual receipt by Indemnitee of written notice that he or
she is a party to or is requested to be a participant in (as a witness or otherwise) any
Proceeding, Indemnitee shall submit to the Company a written notice identifying the Proceeding.
The failure by the Indemnitee to notify the Company within such 60-day period will not relieve the
Company from any liability which it may have to Indemnitee (i) other than under this Agreement, and
(ii) under this Agreement, provided that if the Company can establish that such failure to notify
the Company in a timely manner resulted in actual prejudice to the Company, then the Company will
be relieved from liability under this Agreement only to the extent of such actual prejudice.

          (b) Indemnitee shall at the time of giving such notice pursuant to Section 11(a) or thereafter
deliver to the Company a written application for indemnification. Such application may be
delivered at such time as Indemnitee deems appropriate in his or her sole discretion. Following
delivery of such a written application for indemnification by Indemnitee, the Indemnitee’s
entitlement to indemnification shall be determined promptly according to Section 12(a) of this
Agreement and the outcome of such determination shall be reported to Indemnitee in writing within
forty-five (45) days of the submission of such application.

     12. Procedure Upon Application for Indemnification.

          (a) Upon written application by Indemnitee for indemnification pursuant to Section 11(b) or
written statement by Indemnitee for advances of Expenses pursuant to Section 10(a), a determination
with respect to Indemnitee’s entitlement thereto pursuant to the mandatory terms of this Agreement,
pursuant to statute, or pursuant to other sources of right to indemnity, shall be made in the
specific case: (i) by a majority vote of the Disinterested Directors, whether or not such directors
otherwise would constitute a quorum of the Board; (ii) by a committee of Disinterested Directors
designated by a majority vote of such directors, whether or not such directors would otherwise
constitute a quorum of the Board, (iii) if there are no Disinterested Directors, by Independent
Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee or (iv)
by the stockholders of the Company. Indemnitee shall reasonably cooperate with the person, persons
or entity making the determination with

9

 

respect to Indemnitee’s entitlement to indemnification, including providing to such person,
persons or entity upon reasonable advance request any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee
and reasonably necessary to such determination. Any costs or Expenses (including attorneys’ fees
and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity
making such determination shall be borne by the Company (irrespective of the determination as to
Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold
Indemnitee harmless from any such costs and Expenses.

          (b) If it is determined that Indemnitee is entitled to the indemnification requested by the
Indemnitee in a written application submitted to the Company pursuant to Section 11(b), payment to
Indemnitee shall be made within ten (10) days after such determination. All advances of Expenses
requested in a written statement by Indemnitee pursuant to Section 10(a) prior to a final
determination of eligibility for indemnification shall be paid in accordance with Section 10.

          (c) In the event the determination of entitlement to indemnification or advancement of
Expenses is to be made by Independent Counsel pursuant to Section 12(a) hereof, the Independent
Counsel shall be selected as provided in this Section 12(c). If a Change in Control shall not have
occurred, the Independent Counsel shall be selected by the Board, and the Company shall give
written notice to Indemnitee advising him or her of the identity of the Independent Counsel so
selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by
Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which
event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company
advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or
the Company, as the case may be, may, within ten (10) days after such written notice of selection
shall have been received, deliver to the Company or to Indemnitee, as the case may be, a written
objection to such selection; provided, however, that such objection may be asserted only on the
ground that the Independent Counsel so selected does not meet the requirements of “Independent
Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with
particularity the factual basis of such assertion. Absent a proper and timely objection, the
person so selected shall act as Independent Counsel. If a written objection is made and
substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and
until such objection is withdrawn or a court of competent jurisdiction has determined that such
objection is without merit. If, within twenty (20) days after submission by Indemnitee of a
written request for advancement of Expenses or indemnification pursuant to Section 10(a) or 11(b)
hereof, no Independent Counsel shall have been selected and not objected to, either the Company or
Indemnitee may petition a court of competent jurisdiction for resolution of any objection which
shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel
and/or for the appointment as Independent Counsel of a person selected by the court or by such
other person as the court shall

10

 

designate, and the person with respect to whom all objections are so resolved or the person so
appointed shall act as Independent Counsel under Section 12(a) hereof.

          (d) The Company shall pay the reasonable fees and expenses of the Independent Counsel and to
fully indemnify such Independent Counsel against any and all Expenses, claims, liabilities and
damages arising out of or relating to this Agreement or its engagement pursuant hereto.

          (e) Upon the due commencement of any judicial proceeding or arbitration pursuant to Section
14(a) of this Agreement, any Independent Counsel shall be discharged and relieved of any further
responsibility in such capacity (subject to the applicable standards of professional conduct then
prevailing).

     13. Presumptions and Effect of Certain Proceedings.

          (a) Presumption in Favor of Indemnitee. In making a determination with respect to
entitlement to indemnification or advancement of Expenses hereunder, the person or persons or
entity making such determination shall presume that Indemnitee is entitled to indemnification or
advancement of Expenses under this Agreement if Indemnitee has submitted an application for
advancement of Expenses in accordance with Section 10(a) of this Agreement or indemnification in
accordance with Section 11(b) of this Agreement, and the Company shall have the burden of proof to
overcome that presumption.

          (b) No Presumption Against Indemnitee. Neither the failure of the Company (including
by its directors or Independent Counsel) to have made a determination prior to the commencement of
any action pursuant to this Agreement nor an actual determination by the Company (including by its
directors or Independent Counsel) that Indemnitee has not met the applicable standard of conduct
for indemnification shall be a defense to the action or create a presumption that Indemnitee has
not met the applicable standard of conduct.

          (c) Sixty Day Period for Determination. If the person, persons or entity empowered or
selected under Section 12 of this Agreement to determine whether Indemnitee is entitled to
indemnification or advancement of Expenses shall not have made a determination within sixty (60)
days after receipt by the Company of an application therefor, a determination of entitlement to
indemnification or advancement of Expenses shall be deemed to have been made and Indemnitee shall
be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or
an omission of a material fact necessary to make Indemnitee’s statement not materially misleading,
in connection with the application for indemnification or advancement of Expenses, or (ii) a
prohibition of such indemnification under applicable law; provided, however, that such 60-day
period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the
person, persons or entity making the determination with respect to entitlement to indemnification
in good faith requires such additional time for the obtaining or evaluating of documentation and/or
information relating thereto.

11

 

          (d) No Presumption from Termination of a Proceeding. The termination of any
Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction,
or upon a plea of nolo contendere, or its equivalent, shall not of itself adversely affect the
right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good
faith and for a purpose which he or she reasonably believed to be in or not opposed to the best
interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that his or her conduct was unlawful.

          (e) Reliance as Safe Harbor. For purposes of any determination of good faith,
Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action or failure to act is
based on the records or books of account of the Company or any Enterprise other than the Company,
including financial statements, or on information supplied to Indemnitee by the officers of the
Company or any Enterprise other than the Company in the course of their duties, or on the advice of
legal counsel for the Company or any Enterprise other than the Company or on information or records
given or reports made to the Company or any Enterprise other than the Company by an independent
certified public accountant or by an appraiser or other expert selected by the Company or any
Enterprise other than the Company, except if the Indemnitee knew or had reason to know that such
records or books of account of the Company, information supplied by the officers of the Company,
advice of legal counsel or information or records given or reports made by an independent certified
public accountant or by an appraiser or other expert were materially false or materially
inaccurate. The provisions of this Section 13(e) shall not be deemed to be exclusive or to limit
in any way the other circumstances in which the Indemnitee may be deemed or found to have met any
applicable standard of conduct.

          (f) Actions of Others. The knowledge and/or actions, or failure to act, of any other
director, officer, trustee, administrator, partner, member, fiduciary, employee or agent of the
Company or any Enterprise other than the Company shall not be imputed to Indemnitee for purposes of
determining the right to indemnification under this Agreement.

     14. Remedies of Indemnitee.

          (a) Adjudication/Arbitration. In the event that (i) a determination is made pursuant
to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 10 of this
Agreement, (iii) subject to Section 13(b), no determination of entitlement to indemnification shall
have been made pursuant to Section 12(a) of this Agreement within 60 days after receipt by the
Company of the application for indemnification, or (iv) payment of indemnification is not made
pursuant to Sections 3, 4, 5, 6, 7 and 12(b) of this Agreement within ten (10) days after a
determination has been made that Indemnitee is entitled to indemnification, or after receipt by the
Company of a written request for any additional monies owed with respect to a Proceeding as to
which it already has been determined that Indemnitee is entitled to indemnification, Indemnitee

12

 

shall be entitled to an adjudication by a court of his or her entitlement to such
indemnification or advancement of Expenses. Alternatively, Indemnitee, at his or her option, may
seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial
Arbitration Rules of the American Arbitration Association. The Company shall not oppose
Indemnitee’s right to seek any such adjudication or award in arbitration.

          (b) Indemnitee Not Prejudiced by Prior Adverse Determination. In the event that a
determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is
not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this
Section 14 shall be conducted in all respects as a de novo trial, or arbitration, on the
merits, and Indemnitee shall not be prejudiced by reason of the prior adverse determination. In
any judicial proceeding or arbitration commenced pursuant to this Section 14, the Company shall
have the burden of proving Indemnitee is not entitled to indemnification or advancement of
Expenses, as the case may be.

          (c) Company Bound by Prior Determination. If a determination shall have been made
pursuant to Section 12(a) of this Agreement that Indemnitee is entitled to indemnification, the
Company shall be bound by such determination in any judicial proceeding or arbitration commenced
pursuant to this Section 14, absent (i) a misstatement by Indemnitee of a material fact, or an
omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in
connection with the application for indemnification, or (ii) a prohibition of such indemnification
under applicable law.

          (d) Expenses. In the event that Indemnitee, pursuant to this Section 14, seeks a
judicial adjudication of or an award in arbitration to enforce his or her rights under, or to
recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the
Company, and shall be jointly and severally indemnified by the Company against, any and all
Expenses actually and reasonably incurred by him or her in such judicial adjudication or
arbitration if it shall be determined in such judicial adjudication or arbitration that Indemnitee
is entitled to receive all or part of the indemnification or advancement of Expenses sought which
the Company had disputed prior to the commencement of the judicial proceeding or arbitration.

          (e) Advances of Expenses. The Company shall advance, to the extent not prohibited by
law, the Expenses incurred by Indemnitee in connection with any Proceeding, and such advancement
shall be made within thirty (30) days after the receipt by the Company of a statement or statements
requesting such advances from time to time, whether prior to or after final disposition of any
Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard
to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate
entitlement to indemnification under the other provisions of this Agreement. Advances shall
include any and all reasonable Expenses incurred pursuing an action to enforce this right of
advancement, including Expenses incurred preparing and forwarding statements to the

13

 

Company to support the advances claimed. The Indemnitee shall qualify for advances upon the
execution and delivery to the Company of this Agreement, which shall constitute an undertaking
providing that the Indemnitee undertakes to repay the advance to the extent that it is ultimately
determined that Indemnitee is not entitled to be indemnified by the Company. This Section 14(e)
shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section
9.

          (f) Precluded Assertions by the Company. The Company shall be precluded from
asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement.

     15. Non-exclusivity; Survival of Rights; Insurance; Subrogation.

          (a) Rights of Indemnitee Not Exclusive. The rights of indemnification and to receive
advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other
rights to which Indemnitee may at any time be entitled under applicable law, the Charter, or the
bylaws of the Company, any agreement, vote of investors or a resolution of directors, members,
partners, or otherwise. No right or remedy herein conferred by this Agreement is intended to be
exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent or subsequent assertion or employment of any other right or
remedy.

          (b) Survival of Rights. No amendment, alteration or repeal of this Agreement or of
any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in
respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to
such amendment, alteration or repeal.

          (c) Change of Law. To the extent that a change in Delaware law, whether by statute or
judicial decision, permits greater indemnification or advancement of Expenses than would be
afforded currently under the Charter or the bylaws of the Company, or this Agreement, it is the
intent of the parties hereto that Indemnitee shall enjoy and be conferred by this Agreement the
greater benefits so afforded by such change.

          (d) Insurance. To the extent that the Company maintains an insurance policy or
policies providing liability insurance for directors, officers, trustees, administrators partners,
members, fiduciaries, employees, or agents of the Company or of any other Enterprise which such
person serves at the request of the Company, Indemnitee shall be covered by such policy or policies
in accordance with its or their terms to the maximum extent of the coverage available for any such
director, trustee, partner, member, fiduciary, officer, employee or agent under such policy or
policies. If, at the

14

 

time the Company receives notice from any source of a Proceeding as to which Indemnitee is a
party or a participant (as a witness or otherwise) the Company has director and officer liability
insurance in effect that covers Indemnitee, the Company shall give prompt notice of such Proceeding
to the insurers in accordance with the procedures set forth in the respective policies. The
Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on
behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the
terms of such policies.

          (e) Subrogation. In the event of any payment under this Agreement, the Company, shall
be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who
shall execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such
rights.

          (f) Other Payments. The Company shall not be liable under this Agreement to make any
payment of amounts otherwise indemnifiable (or for which advancement is provided hereunder) if and
to the extent that Indemnitee has otherwise actually received such payment under any insurance
policy, contract, agreement or otherwise.

          (g) Other Indemnification. The Company’s obligation to indemnify or advance Expenses
hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer,
trustee, administrator partner, member, fiduciary, employee or agent of any other Enterprise shall
be reduced by any amount Indemnitee has actually received as indemnification or advancement of
expenses from such Enterprise.

     16. Duration of Agreement. This Agreement shall continue until and terminate upon the later
of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as any of the
following: a director, officer, agent or employee of the Company or as a director, officer,
trustee, administrator partner, member, fiduciary, employee or agent of any other corporation,
partnership, joint venture, trust, employee benefit plan or other Enterprise which Indemnitee
served at the request of the Company; or (b) one (1) year after the final termination of any
Proceeding (including after the expiration of any rights of appeal) then pending in respect of
which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of
any proceeding commenced by Indemnitee pursuant to Section 14 of this Agreement (including any
rights of appeal of any Proceeding commenced pursuant to Section 14). This Agreement shall be
binding upon the Company and its respective successors and assigns and shall inure to the benefit
of Indemnitee and his or her heirs, executors and administrators.

     17. Severability. If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, each
portion of any Section of this Agreement containing any such

15

 

provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to
the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to
the extent necessary to conform to applicable law and to give the maximum effect to the intent of
the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement
(including, without limitation, each portion of any Section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifested thereby.

     18. Enforcement.

          (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce Indemnitee to serve, or to continue
to serve, as a director or officer of the Company, and the Company acknowledges that Indemnitee is
relying upon this Agreement in serving or continuing to serve as a director or officer of the
Company.

          (b) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof.

     19. Modification and Waiver. No supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by each of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions
of this Agreement nor shall any waiver constitute a continuing waiver.

     20. Successors and Binding Agreement.

          (a) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation, reorganization or otherwise) and any acquiror of all or substantially all of the
business or assets of the Company by agreement in form and substance reasonably satisfactory to
Indemnitee and/or his or her counsel, expressly to assume and agree to perform this Agreement in
the same manner and to the same extent the Company would be required to perform it if no such
succession had taken place.

          (b) This Agreement will be binding upon and inure to the benefit of the Company and any
successor to the Company, including, without limitation, any person acquiring directly or
indirectly all or substantially all of the business or assets of the Company whether by purchase,
merger, consolidation, reorganization or otherwise (and such successor will thereafter be deemed
the “Company” for purposes of this Agreement), but will not otherwise be assignable or delegatable
by the Company.

16

 

          (c) This Agreement will inure to the benefit of and be enforceable by the Indemnitee’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
legatees and other successors.

          (d) This Agreement is personal in nature and neither of the parties hereto will, without the
consent of the other, assign or delegate this Agreement or any rights or obligations hereunder
except as expressly provided in Sections 20(a), (b) and (c). Without limiting the generality or
effect of the foregoing, Indemnitee’s right to receive payments hereunder will not be assignable,
whether by pledge, creation of a security interest or otherwise, other than by a transfer by the
Indemnitee’s will, devise, a grantor’s trust instrument under which the Indemnitee or his estate is
the sole beneficiary, or by the laws of descent and distribution, and, in the event of any
attempted assignment or transfer contrary to this Section 20(d), the Company will have no liability
to pay any amount so attempted to be assigned or transferred.

     21. Notices. All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given if: (i) delivered by hand and
receipted for by the party to whom said notice or other communication shall have been directed, on
the date of such receipt, or (ii) mailed by certified or registered mail with postage prepaid, on
the third business day after the date on which it is so mailed:

          (a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or
such other address as Indemnitee subsequently shall provide in writing to the Company.

          (b) If to the Company to:

Medicis Pharmaceutical Corporation

7720 N. Dobson Road

Scottsdale, Arizona 85256

Attention: General Counsel

or to any other address as may have been furnished to Indemnitee in writing by the Company.

     22. Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations among
the parties shall be governed by, and construed and enforced in accordance with, the laws of the
State of Delaware, without regard to its conflict of laws, principles or rules. Except with
respect to any arbitration commenced by Indemnitee pursuant to Section 14 of this Agreement, the
Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or
proceeding arising out of or in connection with this Agreement shall be brought only in the
Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state
or federal court in the United States of America or any court in any other country, (ii) consent to
submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding

17

 

arising out of or in connection with this Agreement, (iii) irrevocably appoint, to the extent
such party is not a resident of the State of Delaware, The Corporation Trust Company, Corporation
Trust Center, 1209 Orange Street, Wilmington, New Castle County, Delaware 19801 as its agent in the
State of Delaware as such party’s agent for acceptance of legal process in connection with any such
action or proceeding against such party with the same legal force and validity as if served upon
such party personally within the State of Delaware, (iv) waive any objection to the laying of venue
of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead or to
make, any claim that any such action or proceeding brought in the Delaware Court has been brought
in an improper or inconvenient forum.

     23. Identical Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall for all purposes be deemed to be an original but all of which together shall
constitute one and the same Agreement. Only one such counterpart signed by the party against whom
enforceability is sought needs to be produced to evidence the existence of this Agreement.

     24. Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of the
feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted
for convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

[The remainder of this page is intentionally left blank.]

18

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 	 	 
	MEDICIS PHARMACEUTICAL CORPORATION	 	 	 	INDEMNITEE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:  
	 	 	 	 	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	 	Name:  
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	Title:

	 	 	 	 	Address for Notices to Indemnitee:	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

19

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