Document:

Contract Manufacturing/Packaging Agreement

 Exhibit 10.22 
  

	 	***	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT UNDER 17 C.F.R. SECTIONS 200.80(B)(4), 200.83 AND 230.406. 

  
 EXECUTION COPY 
  
 CONTRACT MANUFACTURING/PACKAGING AGREEMENT 
  
 THIS CONTRACT MANUFACTURING / PACKAGING AGREEMENT (this “Agreement”) made this 3rd day of November, 2003 (the “Effective Date”), by and between BRISTOL-MYERS SQUIBB COMPANY, a Delaware corporation with offices at 100 Forest Avenue, Buffalo, New York 14213 (“BMS”),
and SKINMEDICA INC., a Delaware corporation with offices at 5909 Sea Lion Place, Suite H, Carlsbad, California 92008 (“SkinMedica”). BMS and SkinMedica are each a “Party” under this Agreement and both of them are
referred to as “Parties” herein. 
  
 WITNESSETH

  
 WHEREAS, SkinMedica has developed an
investigational new drug candidate designated as Desonide Gel 0.05% (described in further detail on Attachment A) and has acquired rights to the formulation of Desonide Gel 0.05% (the “Drug Product”); 
  
 WHEREAS, SkinMedica desires BMS to perform certain manufacturing,
analytical and packaging services as set forth herein; 
  
 WHEREAS, SkinMedica also desires to have BMS validate the manufacture of the Drug Product, and to test and commercially supply said Drug Product to SkinMedica as set forth herein; and 
  
 WHEREAS, BMS has reviewed and is familiar with the manufacturing
and/or packaging services required by SkinMedica and has expressed its desire to perform such services for SkinMedica. 
  
 NOW THEREFORE, in consideration of the premises and mutual promises, the Parties agree as follows: 
  
 ARTICLE 1 
 BMS SERVICES 
  

	1.1	The Parties acknowledge and agree that upon review by FDA and other applicable regulatory foreign agencies, the specifications developed hereunder may need to be modified to meet
requirements of said regulatory filings. As soon as reasonably practicable after the Effective Date, SkinMedica shall provide approved specifications for labeling and packaging and approved artwork, trade dress, advertising and packaging information
to be used by BMS to manufacture the Drug Product. The specifications for labeling and packaging and approved artwork may be amended or modified only upon the written agreement of both Parties. 

  

	1.2	The Parties hereto agree that the Drug Product Specifications may be modified in writing from time to time by the Parties provided that such modifications shall be incorporated in
Attachment B, as the case may be, and each made part of this Agreement. In the event changes or modifications to the Drug Product Specifications the prices on Attachment C shall be adjusted accordingly by mutual agreement of the
Parties. 

  

	1.3	In addition to the foregoing, BMS shall, prior to the shipment of any Drug Product to SkinMedica, submit to and use its commercially reasonable efforts to have its Buffalo, New York
facility pass a Pre-Approval Inspection by the FDA and other such applicable foreign regulatory agencies, e.g. the TPP (Canada) and the MCA (Europe). 

  

	1.4	 SkinMedica hereby grants to BMS a non-exclusive, fully-paid up, royalty-free, transferable and sublicensable license under its rights, title and interest in, to and
under the intellectual property, 

  

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including, but not limited to, any patents or know-how related to the Drug Product either owned, licensed to, or controlled by SkinMedica (the
“SkinMedica IP”) to allow BMS to use the SkinMedica IP to make, use, offer for sale, sell, have used, made, offered for sale the Drug Product consistent with the terms and conditions herein. BMS covenants that it will use the
licensed rights solely in accordance with the preceding sentence. SkinMedica agrees that BMS and its affiliates may use the information and intellectual property in connection with: (i) the manufacture by BMS of the Drug Product; and (ii) for
internal research purposes relating to the Drug Product. 

  
 ARTICLE 2 
 COMMERCIAL SUPPLY 
  

	2.1	SkinMedica shall purchase all of its requirements for the Drug Product from BMS at the prices specified in Attachment C. 

  

	2.2	Actual quantities, delivery dates and shipping instructions for products covered by this Agreement will be specified by SkinMedica in its purchase orders which shall be issued at
least on a fourteen (14) month rolling forecast, updated monthly with a firm purchase order of seventy-five (75) days in advance of the date on which delivery is to be made. BMS shall use its commercially reasonable efforts to provide prompt advance
notification to SkinMedica of all scheduled manufacturing dates of the Drug Product pursuant to this Agreement. SkinMedica shall use its best efforts to order in quantities which facilitate production in the batch sizes described in the drug product
cost specifications included in Attachment C. Upon receipt of oral or written tentative approval by the FDA for the Drug Product, SkinMedica shall: (i) agree with BMS on an initial launch quantity and delivery schedule for such Drug Product;
and (ii) update its fourteen (14) month forecast and forward same to BMS. 

  

	2.3	Except as provided in Article 1, BMS shall not manufacture the Drug Product for itself, or for any other entity other than SkinMedica, except with the prior written consent of
SkinMedica. SkinMedica shall be free to manufacture Drug Product for itself, or to develop alternative sources for the Drug Product and to purchase Drug Product from such sources. 

  

	2.4	Pricing during the *** of this Agreement shall be as specified in Attachment C. Thereafter, pricing may be adjusted ***. BMS shall give written notice to SkinMedica at least
*** prior to the effective date of any price adjustment. ***. The *** restriction on price adjustments notwithstanding, *** price adjustment will be permitted within *** period, provided that: 

  

	 	(i)	*** 

  

	 	(ii)	*** 

  

	 	(iii)	*** 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

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 Notwithstanding anything to the contrary herein, BMS may adjust the price of the Drug Product in the
event of a process or manufacturing change relating to the Drug Product that is mandated by a governmental entity. 
  

	2.5	Terms of payment shall be net *** from date of receipt by SkinMedica of the released Drug Product and an appropriate invoice, unless the shipment is rejected by SkinMedica pursuant
to Section 4.2 hereof. In addition to the foregoing, upon BMS receipt from SkinMedica of an order for raw materials and/or packaging components for the Drug Product, BMS shall issue SkinMedica an invoice for such raw materials and/or packaging
components (including any up-front charges incurred by BMS). 

  

	2.6	BMS shall deliver Drug Product F.O.B. BMS Buffalo, New York facility during the term of this Agreement. Freight and insurance shall be for the account of SkinMedica, and the risk of
loss, delay or damage in transit shall be with SkinMedica from and after delivery to SkinMedica’s designated common carrier. BMS shall use its commercially reasonable efforts to assist SkinMedica in arranging any desired insurance. BMS shall
package the Drug Product for shipment in accordance with its customary practices therefor, unless otherwise specified in writing by SkinMedica at least *** prior to the scheduled shipment, in which event any extra cost incurred by BMS on account of
changes requested by SkinMedica shall be reimbursed by SkinMedica. BMS shall include the following for each shipment of the Finished Product: (a) the purchase order number; (b) the lot and batch numbers; (c) the quantity of the Finished Product; and
(d) the certificate of analysis and/or certificate of conformance. 

  

	2.7	Title to and risk of loss of the Drug Product shall pass to SkinMedica or its designee at the time of delivery to the common carrier. 

  

	2.8	BMS represents that it has sufficient capacity to manufacture and/or package the “Estimated Annual Requirements” of SkinMedica for the Drug Product set out in
Attachment D and SkinMedica represents and warrants that its has the financial resources to pay for the “Estimated Annual Requirements” set out in Attachment D. No obligation, express or implied, to manufacture or purchase
based on such estimate exists for either BMS or SkinMedica, as the case maybe. 

  
 ARTICLE 3 
 REGULATORY REQUIREMENTS 
  

	3.1	Once per calendar year, BMS shall permit, upon request by SkinMedica, with at least *** prior written notice, one or more employees (but no more than three), or a designee,
the right to conduct an audit of BMS’ facilities and records exclusively relating to the manufacture and packaging of the Drug Product, provided that such employee(s) or designee has entered into a confidentiality agreement with BMS consistent
with the confidentiality terms herein. 

  

	3.2	BMS shall notify SkinMedica within *** of notice to BMS of any inspections of BMS’ facilities exclusively relating to the Drug Product, whether pre-scheduled or unannounced, by
regulatory authorities, including, but not limited to, the FDA, EPA, OSHA, DEA and ATF, or the equivalent foreign regulatory authorities. The findings of these inspections shall be provided by BMS to SkinMedica in a manner which protects the
confidential information of third parties and any unrelated products, only to the extent they relate to or impact the manufacture, testing, packaging, storage or handling of the Drug Product for SkinMedica. 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

 3 

	3.3	SkinMedica shall be promptly notified in writing by BMS of any facility modification or equipment change that would be considered a major change requiring notification of regulatory
authorities for the manufacture, testing, packaging, storage or handling of the Drug Product for SkinMedica. 

  

	3.4	SkinMedica will be notified promptly and be supplied with copies of, any questions, correspondence or responses between BMS and regulatory authorities solely to the extent related
to the manufacture, handling, storage, testing, packaging and supply of the Drug Product for SkinMedica BMS shall review verbally or in writing with SkinMedica all proposed responses to said questions or correspondence to allow SkinMedica Inc. to
provide comments regarding the same prior to submission of a response by BMS. For the sake of clarity, the copies provided by BMS hereunder may be redacted at BMS’ discretion to preserve the privacy and identity of third parties and/or
unrelated products. 

  
 ARTICLE 4 

QUALITY ASSURANCE 
  

	4.1	BMS shall obtain the written consent of SkinMedica prior to making any changes to the Drug Product Specifications or any changes to the process, procedures, testing, packaging, or
labeling that exclusively relates to the Drug Product. A list of approved suppliers of raw materials and other components to be used in the manufacture of the Drug Product is in Attachment E. BMS shall not deviate from these approved
suppliers without the prior written approval of SkinMedica. 

  

	4.2	Products manufactured and/or packaged under this Agreement shall be subject to final release by the SkinMedica Quality Assurance Department. Prior to each shipment of the Drug
Product, BMS shall provide SkinMedica a Certificate of Analysis in customary form attesting to the quality of each lot contained within the shipment, including review and approval by the appropriate quality unit of all batch production and control
records. If any products fail to conform to the Drug Product Specifications, BMS shall rework or replace the non-conforming Drug Products at its own expense so as to conform to the Drug Product Specifications. In the event that any such
non-conforming Drug Products cannot be made to conform, they shall be destroyed or disposed of as SkinMedica shall direct, and SkinMedica ***. 

  

	4.3	In the event of dispute between the Parties over the validity of a rejection due to analytical test results, the Parties agree to submit a representative sample of the rejected lot
to a qualified independent cGMP test facility to be agreed upon by the Parties, and to accept the results of the testing performed by that facility as binding with regard to such lot. The testing procedures utilized must be formerly transferred and
qualified at the independent test facility prior to performing the testing. The expense of such testing shall be borne by the losing Party. 

  

	4.4	Any third party or contract laboratory used for the testing of the Drug Product pursuant to Section 4.3 must: (i) be approved by SkinMedica in advance; (ii) have signed a
confidentiality agreement with SkinMedica and BMS; and (iii) have completed a successful qualification/validation between SkinMedica and the BMS. 

  

	4.5	BMS shall perform all manufacturing, storage, handling, packaging and testing of the Drug Product at its facilities in Buffalo, New York, and further agrees that it will not,
directly or 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

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indirectly, subcontract any of these tasks or procedures to any third party unless prior written approval to do so is obtained from SkinMedica. Further, BMS
shall ensure that documents required to be retained, according to cGMPs, are stored in a manner to maintain their integrity and protection from fire and other hazards, for the required length of storage. All other documents related to the
manufacture, testing and packaging of the Drug Product shall be stored in a manner consistent with BMS’ normal business practices. 

  

	4.6	BMS shall conduct the validation packaging, storage and specified testing of the Drug Product for SkinMedica, including the disposal of all wastes generated thereby, in conformance
with BMS’ waste handling procedures for the State of New York and Federal environmental regulations. BMS will pay for any incidental costs of disposing of small amounts of waste related to the packaging of the Drug Product. SkinMedica shall
provide BMS with any information required for the environmental assessment, such as toxicity, disposal requirements etc. 

  

	4.7	In the event BMS believes a recall, field alert, Drug Product withdrawal or field correction may be necessary for Drug Product provided under this Agreement, BMS shall immediately
notify SkinMedica in writing. BMS will not act to initiate a recall, field alert, Drug Product withdrawal or field correction without the express prior written approval of SkinMedica, unless otherwise required by applicable laws. In the event
SkinMedica believes a recall, field alert, Drug Product withdrawal or field correction may by necessary for any Drug Product provided under this Agreement, SkinMedica shall immediately notify BMS in writing and BMS shall provide reasonable
cooperation and assistance to SkinMedica. ***. Defective Drug Product shall be replaced in accordance with the terms and conditions set forth in Section 4.2. 

  
 ARTICLE 5 
 REPRESENTATION AND WARRANTIES 
  

	5.1	Each Party represents and warrants to the other that it has the full power and authority to enter into this Agreement and to carry out the transactions contemplated hereby. Each
Party shall maintain in full force and effect all necessary license, permits and other authorizations required by law to carry out its duties and obligations under this Agreement. Each Party shall comply with all laws applicable to its activities
under this Agreement, including any requirements of any product license applicable to the Drug Product. SkinMedica shall store, market, promote, advertise and sell the Drug Product sold to it by BMS in compliance with all applicable laws, including
the Prescription Drug Marketing Act. BMS and SkinMedica each shall keep all records and reports required to be kept by applicable laws. The Parties shall reasonably cooperate with one another with the goal of ensuring full compliance with applicable
laws. Each Party shall cooperate with the other to provide such letters, documentation, and other information on a timely basis as the other Party may reasonably require to fulfill its reporting and other obligations under applicable laws to
applicable regulatory authorities. 

  

	5.2	BMS and SkinMedica each hereby agrees to use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or
proper to make effective the transactions contemplated by this Agreement, including such actions as may be reasonably necessary to obtain approvals and consents of governmental person and other persons; provided, that no Party shall be required to
(i) pay money (other than as expressly 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

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required pursuant to the terms and conditions of this Agreement); or (ii) assume any other material obligation not otherwise required to be assumed by this
Agreement. 

  

	5.3	BMS represents and warrants to SkinMedica that the Drug Product manufactured by BMS and sold to SkinMedica under this Agreement will, except to the extent such non-compliance is
attributable to specific instructions received from SkinMedica: 

  

	 	(i)	Not be adulterated or misbranded within the meaning of the Federal, Food, Drug and Cosmetics Act (the “FD&C Act”) and will not be an article that may not be
introduced into interstate commerce under the provisions of Sections 404, 505, or 512 of the FD&C Act, at the time it is tendered to the common carrier for delivery to SkinMedica; 

  

	 	(ii)	Meet the Drug Product Specifications therefor at the time the same is sold to SkinMedica and tendered to the common carrier for delivery to SkinMedica; and 

 

	 	(iii)	Be manufactured, tested, labeled, packaged, stored and shipped in compliance in all material respects with any other applicable laws including all applicable cGMP and all applicable
U.S. federal, state and local environmental health and safety laws in effect at the time and place of manufacture of the Drug Product as well as with any agreement, judgment, order or decree to which BMS is a Party at the time it is tendered to the
common carrier for delivery to SkinMedica. 

  

	5.4	In addition to the other representations and warranties included herein, SkinMedica represents and warrants to BMS that SkinMedica, its affiliates, licensees and contractors shall
adhere in all material respects to all applicable laws relating to the handling, storage, sale, distribution and disposal by any of them of the Drug Product. 

  

	5.5	In addition to the foregoing, SkinMedica represents and warrants to BMS that to the extent that any Drug Product is manufactured by or for SkinMedica (other than by BMS for
SkinMedica hereunder), the Drug Product will: 

  

	 	(i)	Not be adulterated or misbranded within the meaning of the FD&C Act and will not be an article that may not be introduced into interstate commerce under the provisions of
Sections 404, 505 or 512 of the FD&C Act, at the time it is tendered by SkinMedica to the common carrier for delivery; 

  

	 	(ii)	Meet the Drug Product Specifications therefor at the time the same is sold by SkinMedica and tendered by SkinMedica to the common carrier for delivery; and 

 

	 	(iii)	Be manufactured, tested, labeled, packaged, stored and shipped in compliance in all material respects with any other applicable laws including all applicable cGMP and all applicable
U.S. federal, state and local environmental health and safety laws in effect at the time and place of manufacture of the Drug Product as well as with any agreement, judgment, order or decree to which SkinMedica is a Party. 

 

	5.6	 SkinMedica represents and warrants to BMS that: (i) SkinMedica is the sole owner of all rights, title and interest in, to and under the SkinMedica IP; (ii) all
SkinMedica IP is valid, enforceable and in full force and effect; (iii) SkinMedica has not assigned, transferred, licensed, pledged, or otherwise encumbered any of the SkinMedica IP; (iv) no Third Party has a superior right to SkinMedica to use any
of the SkinMedica IP; (v) no Third Party has questioned or challenged the scope or validity of the SkinMedica IP; (vi) none of the SkinMedica IP is subject to any 

  

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contractual obligation restricting SkinMedica’s use thereof or entitling others to use the same or in any way obligating SkinMedica to make payments to
others. 

  

	5.7	BMS hereby agrees, and if requested by SkinMedica will give a written certification, that, to its knowledge, it has not used, and will not use, in any capacity the services of any
person debarred under subsections 306(a) or 306(b) of the FD&C Act in connection with this Agreement. 

  

	5.8	THE WARRANTIES PROVIDED BY BMS IN THIS ARTICLE 5 ARE THE SOLE WARRANTIES GIVEN WITH RESPECT TO THE BMS SERVICES AND THE FINISHED PRODUCT AND ARE MADE IN LIEU OF ANY AND ALL OTHER
WARRANTIES EXPRESSED OR IMPLIED, INCLUDING WARRANTIES OF QUALITY, PERFORMANCE, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. BMS MAKES NO OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND OTHER THAN THOSE SET FORTH IN THIS ARTICLE 5.

  
 ARTICLE 6 
 INDEMNIFICATION 
  

	6.1	BMS shall indemnify and hold harmless SkinMedica, its affiliates, subsidiaries, officers, directors and agents from any and all liability for any and all third party claims arising
from process development and manufacturing of the Drug Product performed in an intentionally wrongful manner by BMS, including costs and attorney fees, if any, provided that SkinMedica provides timely written notice to BMS of any claim a rising
hereunder and allows BMS, at its cost, to defend and control any such third party claim. 

  

	6.2	SkinMedica shall indemnify and hold harmless BMS, its affiliates, subsidiaries, officers, directors and agents from (a) any and all liability in connection with any claim made
against the BMS in connection with infringement (including threatened claims) of patent rights of all claims relating to the Drug Product, including, but not limited to, any infringement claims brought by a third party in connection with the license
granted under Section 1.4 or the SkinMedica IP; and (b) any and all liability which may attach to or flow from the promotion, distribution, sale or use of the Drug Product by SkinMedica or any designee, as the case may be, including the costs and
attorney fees, if any, as long as the Drug Product meets or exceeds the Drug Product Specifications provided herein provided that BMS provides timely written notice to SkinMedica of any claim arising hereunder and allows SkinMedica, at its cost, to
defend and control any such third party claim. 

  

	6.3	Notwithstanding any other provision of this Agreement, neither Party shall in any event be liable to the other Party or its affiliates, officers, directors, employees, stockholders,
agents or representatives on account of any breach hereof or of any indemnity obligation set forth herein for any indirect, consequential or punitive damages (including, without limitation, lost profits, loss of use, damage to goodwill or loss of
business). 

  
 ARTICLE 7 
 TERM/TERMINATION 
  

	7.1	 The term of this Agreement shall commence upon the Effective Date and shall expire on the fifth (5th) anniversary of the First Commercial Sale (as defined below) of the Drug Product by BMS to SkinMedica, unless terminated sooner pursuant to this Article 7. As
soon as reasonably 

  

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practicable after the first commercial sale of the Drug Product by BMS to SkinMedica, the Parties shall amend Attachment C and insert the date of such
sale in the space provided thereto (the “First Commercial Sale”). This Agreement shall automatically renew for successive one (1) year periods unless six (6) months prior to the expiration of the initial term or any renewal term
written notice is given by one of the Parties to the other Party. 

  

	7.2	If either Party shall at any time materially breach any of the provisions of this Agreement, the other Party shall have the right to terminate this Agreement and any outstanding
purchase orders hereunder. Upon *** notice to the defaulting Party specifying the default complained of, provided, however, if said defaulting Party cures the default complained of within the ninety days following said notice the
Agreement shall continue in full force and effect as if no default had occurred. The right of either Party to terminate this Agreement, as herein above provided, shall not be affected in any way by its waiver of, or failure to take action with
respect to, any previous default. 

  

	7.3	Either Party may terminate this Agreement without cause on eighteen (18) months prior written notice, which notice cannot be given earlier than six (6) months after the First
Commercial Sale. 

  

	7.4	Upon any termination or expiration of this Agreement, BMS shall be entitled to recoup any and all costs and expenses incurred by BMS for work-in-progress, including, without
limitation raw materials or other components purchased by BMS for the Drug Product. 

  
 ARTICLE 8 
 CONFIDENTIALITY 
  

	8.1	BMS acknowledges that SkinMedica owns the proprietary rights to the Drug Product, including the SkinMedica IP and confidential information related to the Drug Product, and that
these and all other proprietary rights shall remain confidential and the sole property of SkinMedica. 

  

	8.2	Except for purposes of this Agreement, neither Party shall use or disclose any confidential or proprietary information, which may be supplied by a disclosing Party in the course of
this Agreement, including information regarding the business relationship between BMS and SkinMedica. The foregoing obligations shall not apply when and to the extent such information (1) was lawfully available to the public prior to receipt of such
information by a receiving Party from a disclosing Party, (2) through no act on the part of a receiving Party, thereafter becomes lawfully available to the public, (3) was known, as shown by written records, to a receiving Party at the time of
receiving the information, provided such knowledge was not obtained from third parties through binder of secrecy, (4) is subsequently disclosed to a receiving Party by a third party having no obligation of confidentiality with respect to the
information, (5) is developed by a receiving Party, as shown by their written records, independently of information received from a disclosing Party, (6) is required to be disclosed by a receiving Party to a third party by law or legal process,
provided that, should the receiving Party be required to make such disclosure, they will take all reasonable steps to inform the disclosing Party of such disclosure in sufficient time for the disclosing Party to oppose such disclosure before it
takes place, or (7) is approved by a disclosing Party for disclosure by a receiving Party. The obligations imposed in this Article will run for a period of five (5) years commencing from the date of this Agreement or until the approval of a U.S. New
Drug Application (NDA) for the Drug Product, whichever is later; provided, however, that in no event shall said obligations run for a period longer than ten (10) years from the date hereof. 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

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 ARTICLES 9 
 MISCELLANEOUS 
  

	9.1	Force Majeure. BMS’ obligations to deliver hereunder shall be subject to strikes, riots, war, terrorism, acts of God, invasion, fire, explosions, floods, delays of
carrier, shortage or failure in the supply of materials, acts of government or governmental agencies or instrumentalities, and other contingencies beyond BMS’ control. In the event deliveries are prevented by any of the aforesaid causes,
SkinMedica shall be relieved of the obligations contained in outstanding purchase orders. 

  

	9.2	Assignment. Neither Party shall assign this Agreement without the prior written consent of the other Party, however, either Party may, without such written consent, assign
this Agreement, and its rights and objections hereunder, in connection with the transfer or sale of all or substantially all of its business, in the case of BMS, the acquirer of the manufacturing facilities of the Drug Product, or in the event of
its merger or consolidation or change in control or similar transaction. In the event of any assignment, the assignee shall assume all obligations of the assign or under this Agreement. 

  

	9.3	Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the permitted successors or permitted assigns of BMS and SkinMedica respectively.

  

	9.4	Entire Agreement. This Agreement, and the Attachments hereunder, shall constitute the entire agreement between SkinMedica and BMS and the provisions of this Agreement and
such Purchase Orders shall prevail over any inconsistent oral statements or provisions contained in any other documents passing between us. In the event of any conflict in terms between this Agreement and any Purchase Order issued hereunder, this
Agreement shall prevail. No changes or modifications of this Agreement shall be binding on either Party hereto unless such change or modification is made in writing and accepted by both Parties, and attached to this Agreement.

  

	9.5	Notice. Any and all notices provided for shall be sent to the respective Parties at the following addresses by certified or registered mail or sent by nationally recognized
overnight courier service: 

  

			
	 If to BMS:
	  	 BRISTOL-MYERS SQUIBB COMPANY
 Buffalo Technical
Operations
 100 Forest Avenue
 Buffalo, NY 14213
 Attention: Director of Operations

		
	 If to SkinMedica:
	  	 SkinMedica Inc.
 5909 Sea Lion Place, Suite
H
 Carlsbad, CA 92008
 Attention: President,
CEO

  

	9.6	Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of New York. 

  

	9.7	 Severability. In the event that any one or more of the provisions contained in this Agreement, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the Parties shall negotiate in good faith with a view to the substitution 

  

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therefor of a suitable and equitable solution in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid
provision; provided, however, that the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained in this Agreement shall not be in any way impaired thereby, it being
intended that all of the rights and privileges of the Parties hereto shall be enforceable to the fullest extent permitted by law. 

  

	9.8	Counterparts. This Agreement may be executed in one or more counterparts, both of which shall be considered one and the same agreement, and shall become effective when one or
more such counterparts have been signed by each of the Parties and delivered to the other Party. 

  
 [The next page is the signature page.] 
  

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 IN WITNESS WHEREOF representatives of the Parties hereto have signed this Agreement as of the date first
above mentioned. 
  

									
	 BRISTOL-MYERS SQUIBB COMPANY
	 	 	 	 SKINMEDICA INC.

					
	By:	 	/s/    John N. Seager        	 	 	 	By:	 	/s/    Rex Bright        
	 Title:
	 	DIRECTOR OPERATIONS	 	 	 	 Title:
	 	President & CEO

  

 11Manufacturing and Supply Agreement

 Exhibit 10.23 
  

	 	***	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT UNDER 17 C.F.R. SECTIONS 200.80(B)(4), 200.83 AND 230.406. 

  
 MANUFACTURING AND SUPPLY AGREEMENT 
  
 dated as of March 12, 2003 
  
 by and between 
  
 SkinMedica, Inc.

  
 and 
  
 SMITH & NEPHEW WOUND MANAGEMENT (LA JOLLA) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	ARTICLE I. DEFINITIONS; RULES OF CONSTRUCTION	  	1
	 1.1
	  	Definitions	  	1
	 1.2
	  	Other Terms	  	2
	 1.3
	  	Rules of Construction	  	2
	ARTICLE II. MANUFACTURING AND SUPPLY	  	3
	 2.1
	  	General	  	3
	 2.2
	  	Forecasts	  	3
	 2.3
	  	Purchase Orders	  	4
	 2.4
	  	Smith & Nephew’s Manufacturing Responsibilities	  	4
	 2.5
	  	SkinMedica’s Responsibilities	  	5
	 2.6
	  	Contingent Duties	  	6
	 2.7
	  	Ownership Rights and Obligations	  	6
	 2.8
	  	Orders	  	6
	 2.9
	  	Delivery and Title.	  	6
	 2.10
	  	Acceptance	  	6
	 2.11
	  	Retention of Intellectual Property	  	7
	 2.12
	  	Rights to Use SkinMedica Intellectual Property	  	7
	ARTICLE III. EXCLUSIVITY	  	8
	 3.1
	  	Non-exclusive Purchaser	  	8
	 3.2
	  	Exclusive Supplier of NouriCel	  	8
	ARTICLE IV. TERM	  	8
	ARTICLE V. PRICES	  	8
	 5.1
	  	General	  	8
	 5.2
	  	Sales Taxes	  	8
	 5.3
	  	Price Adjustments	  	9
	 5.4
	  	Non Concurrent Manufacture of Collagen	  	9
	ARTICLE VI. INVOICE AND PAYMENTS	  	9
	 6.1
	  	Invoicing.	  	9
	 6.2
	  	Payment	  	9
	 6.3
	  	Overdue Payments	  	9
	 6.4
	  	No Acknowledgement	  	9
	ARTICLE VII. FURTHER COOPERATION AND AUDITS	  	10
	 7.1
	  	Further Cooperation	  	10
	 7.2
	  	Audit	  	11
	ARTICLE VIII. STANDARD OF CARE AND GUARANTEE	  	11
	 8.1
	  	General	  	11
	 8.2
	  	Limited Warranty and Remedy	  	11
	 8.3
	  	Allocation of Risk	  	12
	 8.4
	  	Disclaimer	  	12
	ARTICLE IX. TERMINATION	  	12
	 9.1
	  	Termination Rights.	  	12
	 9.2
	  	Procedures Upon Termination	  	12
	 9.3
	  	Other Termination Obligations	  	13

  

 i 

					
	ARTICLE X. INDEMNITY	  	13
	 10.1
	  	Smith & Nephew’s Obligation	  	13
	 10.2
	  	SkinMedica’s Obligation	  	14
	 10.3
	  	Third-Party Claims	  	14
	ARTICLE XI. COMPLIANCE WITH LAWS	  	15
	 11.1
	  	General	  	15
	 11.2
	  	Quality Assurance and Regulatory Compliance Audits.	  	15
	 11.3
	  	SkinMedica’s Regulatory Responsibilities	  	15
	 11.4
	  	Product Recalls	  	16
	ARTICLE XII. INSURANCE	  	16
	ARTICLE XIII. FORCE MAJEURE	  	16
	ARTICLE XIV. CONFIDENTIALITY	  	17
	 14.1
	  	Smith & Nephew Information	  	17
	 14.2
	  	SkinMedica Information	  	17
	 14.3
	  	General.	  	17
	 14.4
	  	Injunctive Relief	  	18
	 14.5
	  	Required Disclosures	  	18
	ARTICLE XV. LIMITATION OF LIABILITY AND REMEDIES	  	18
	 15.1
	  	Damages.	  	18
	 15.2
	  	Exclusive Remedies.	  	18
	 15.3
	  	Affiliates	  	19
	ARTICLE XVI. DISPUTE RESOLUTION	  	19
	 16.1
	  	General.	  	19
	 16.2
	  	Injunctive Relief	  	20
	ARTICLE XVII. ASSIGNMENT	  	20
	 17.1
	  	General	  	20
	 17.2
	  	Third Party Beneficiaries	  	20
	 17.3
	  	Delegation	  	20
	ARTICLE XVIII. MISCELLANEOUS PROVISIONS	  	21
	 18.1
	  	Notices	  	21
	 18.2
	  	Entire Agreement; Amendments	  	22
	 18.3
	  	Waivers	  	22
	 18.4
	  	Partial Invalidity	  	22
	 18.5
	  	Execution in Counterparts	  	22
	 18.6
	  	Governing Law	  	22
	 18.7
	  	Relationship of the Parties.	  	22
	 18.8
	  	Records Retention	  	23
	 18.9
	  	Non-Solicitation	  	23

  

 ii 

 SCHEDULES 
  
 Schedule A — Product and Prices 
 Schedule B — Specifications and
Certificate of Analysis 
 Schedule C — SkinMedica Equipment 

 MANUFACTURING AND SUPPLY AGREEMENT 
  
 THIS MANUFACTURING AND SUPPLY AGREEMENT (this “Agreement”), dated as of March 12, 2003, is by and between
SkinMedica, Inc., a Delaware corporation (“SkinMedica”), and Smith & Nephew Wound Management (La Jolla), a Delaware general partnership (“Smith & Nephew”). 
  
 RECITALS 
  
 WHEREAS, pursuant to an Asset Purchase Agreement, dated as of January 6, 2003 (the “Purchase
Agreement”), among SkinMedica, and Advanced Tissue Sciences, Inc., a Delaware corporation (“ATS”), SkinMedica purchased ATS’s rights, title, and interest in the NouriCel Product. 
  
 WHEREAS, Smith & Nephew agrees to manufacture and supply certain
NouriCel Product for and on behalf of SkinMedica and SkinMedica agrees to purchase certain NouriCel Products from Smith & Nephew. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 ARTICLE I. 
 DEFINITIONS; RULES OF CONSTRUCTION 
  
 1.1 Definitions. As used in this Agreement. 

 
 (a) “Affiliate” shall mean any Person controlling,
controlled by, or under common control with another Person. For the purpose of this definition and Sections 10.1 and 10.2, the term “control” means the power to direct the management of a Person, directly or
indirectly, whether solely through the ownership of voting securities (as in the case of a subsidiary), by contract, or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the
foregoing. SkinMedica and Smith & Nephew shall not be deemed to be Affiliates of each other. 
  
 (b) “Competitor” shall mean any Person who owns, manages, operates, controls, participates in or otherwise carries on, any business which
is a primary competitor with the business of Smith & Nephew Parent in the United States or anywhere else in the world where the business of Smith & Nephew Parent is being conducted on the date hereof or planned to be conducted in the next 12
months, such as *** 
  
 (c) “Cost” shall mean ***

  

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 (d) “FDA” shall have the meaning set forth in Section 11.2(b). 
  
 (e) “Notice” shall mean notice given in accordance with
Section 18.1. 
  
 (f) “Person” shall mean
an individual, corporation, partnership, joint venture, limited liability company, unincorporated syndicate, association or organization, trust, trustee, executor, administrator or other legal representative, governmental authority or agency, or any
group of Persons acting in concert. 
  
 (g)
“Product” shall have the meaning set forth in Section 2.1. 
  
 (h) “SkinMedica Equipment” shall have the meaning set forth in Section 2.4(a). 
  
 (i) “Smith & Nephew Parent” shall mean Smith & Nephew plc. 
  
 (j) “Specifications” shall have the meaning set forth in Section 2.3(a). 
  
 (k) “Term” shall have the meaning set forth in Article
IV. 
  
 (l) “Effective Date” shall mean the
closing of the Purchase Agreement, and Termination and Release Agreement among ATS, Smith & Nephew and (if necessary) SkinMedica with respect to the termination and release of that certain Manufacturing and Supply Agreement between Smith &
Nephew and ATS dated as of November 22, 2003 as it relates to the manufacture of NouriCel products. Smith & Nephew shall not be obligated to SkinMedica to execute any Termination and Release Agreement among ATS, Smith & Nephew and (if
necessary) SkinMedica unless same meets with Smith & Nephew’s sole satisfaction.  
  
 1.2 Other Terms. Terms defined in other Sections (or in any Schedule) will have the meanings therein provided. 
  
 1.3 Rules of Construction. In this Agreement,
unless a clear, contrary intention appears: 
  
 (a) the singular
number includes the plural number and vice versa; 
  
 (b)
reference to any Person includes such Person’s successors and assigns that are permitted by this Agreement; 
  

 2 

 (c) reference to any gender includes the other gender; 
  
 (d) reference to any Article, Section or Schedule means such Article or
Section of this Agreement or such Schedule to this Agreement, as the case may be, and reference in any Article or Section or other provision to any clause means such clause of such Article or Section or provision; 
  
 (e) the Schedules referred to herein shall be construed with and as an
integral part of this Agreement to the same extent as if they were set forth verbatim herein; 
  
 (f) “herein,” “hereunder,” “hereof,” “hereto,” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other
provision hereof; 
  
 (g) “including” (and with
correlative meaning “include”) means “including but not limited to”; 
  
 (h) relative to the determination of any period of time, “from” means “from and including,” “to” means “to but excluding,” and “through” means “through and
including”; 
  
 (i) reference to any law (including statutes
and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability; 
  
 (j) accounting terms used herein shall have the meanings attributed to them
by United States generally accepted accounting principles; 
  
 (k)
the provisions contained in the Schedules shall control over any conflicting provisions contained in the body of this Agreement; and 
  
 (l) the headings contained in this Agreement are for reference only and are not to be used in construing this Agreement. 
  
 ARTICLE II. 
 MANUFACTURING AND SUPPLY 
  
 2.1 General. During the Term, Smith & Nephew shall manufacture for SkinMedica the product generally described in Schedule A (the “Product”). 
  
 2.2 Forecasts. Prior to the beginning of each
calendar month during the Term, Smith & Nephew shall deliver to SkinMedica a non-binding twelve (12) month forecast (or for the remainder of the Term, if less than 12 months) of the maximum amount of the Product it can supply to SkinMedica
without having to manufacture additional Collagen specifically to manufacture the Product (“Smith & Nephew Forecast”). Prior to the beginning of each calendar month during the Term, SkinMedica shall deliver to Smith & Nephew a
non-binding forecast of the orders SkinMedica expects to place with Smith & Nephew for the Product during each of the next 12 months (or for the remainder of the Term relating to such Product, if less than 12 months) (“SkinMedica
Forecast”). The first three (3) months of the SkinMedica Forecast shall constitute a firm and binding order. 
  

 3 

 2.3 Purchase Orders. SkinMedica shall submit a purchase order to Smith &
Nephew for the purchase of the Product. Each purchase order shall specify the quantity of each Product to be delivered, the required date of delivery of the Product (the “Specified Delivery Date”), provided, however, that in no event shall
the Specified Delivery Date be sooner than ninety (90) days after Seller receives the Purchase Order excepting when the order exceeds the Smith & Nephew Forecast for a particular month, the Specified Delivery Date shall be at least one hundred
and eighty (180) days from the date of the purchase order. The purchase order shall also specify the location to which the Product is to be delivered (the “Delivery Location(s)”) and the name, address and phone number of any party to which
the Product is to be sent (the “Receiving Party”), and the preferred method of shipping and any special delivery instructions. The terms and conditions of this Agreement hereunder shall govern all Purchase Orders. In the event of a
conflict between the provisions of this Agreement and the terms and conditions of a Purchase Order, or Smith & Nephew’s acknowledgment or other written communications, the provisions of this Agreement shall prevail. 
  
 2.4 Smith & Nephew’s Manufacturing
Responsibilities. Smith & Nephew shall: 
  
 (a) comply with all relevant materials, manufacturing, in-process controls, label control and quality control specifications, product drawings/blueprints and operating procedures set forth on Schedule B for each Product
(collectively, the “Specifications”), or as subsequently changed by Smith & Nephew with the approval of SkinMedica, which approval shall not be unreasonably withheld or delayed; 
  
 (b) package at Smith & Nephew’s expense the Product in a manner
reasonably acceptable to SkinMedica, according to the specifications in Schedule B; 
  
 (c) store all Product manufactured hereunder; provided, however, that Smith & Nephew shall have the right to store all such Product off-site and, provided, further, that if at any time
Smith & Nephew is required to store a quantity of the Product greater than— either of two months of Product orders, or *** then the Cost of storage and transportation of such excess inventory to the storage location shall be the sole
responsibility of SkinMedica; 
  
 (d) allow the SkinMedica
Equipment (including any replacements thereof) to remain at the Facility and provide access to the Facility to SkinMedica, during normal business hours, as necessary to enable SkinMedica to maintain, repair and replace the SkinMedica
Equipment; 
  
 (e) upon SkinMedica’s request or as
required by the validation and preventive maintenance programs, validate and calibrate the SkinMedica Equipment; provided that SkinMedica shall be obligated to reimburse Smith & Nephew its Cost related to such services; 
  
 (f) to the extent that Smith & Nephew acquires knowledge or is advised,
Smith & Nephew shall immediately notify SkinMedica of any actual or potential government action relevant to the Product and promptly notify SkinMedica of any adverse reactions, or product anomalies, stability problems or complaints relevant to
the Product which are reported to Smith & Nephew; 
  

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 4 

 (g) ascertain and comply with all applicable laws and regulations in connection with the manufacture of
the Product and maintain all necessary licenses, permits or other authorizations for manufacture subject to the same regulatory status persisting, in the event that there is either a jurisdictional change or a classification change, the costs of any
necessary improvements to the quality systems, including validations, will be charged to SkinMedica; 
  
 (h) obtain and maintain any applicable approvals, authorizations, registration, notifications or the like with regard to the manufacture; subject to the
same regulatory status persisting, in the event that there is either a jurisdictional change or a classification change, the costs of any necessary improvements to quality systems, including validations, will be charged to SkinMedica; 
  
 (i) obtain and maintain sufficient inventory of raw materials (for purposes
of this subsection 2.4(i), the parties agree that Collagen does constitute raw materials), including the master and working cell banks, to supply the Product; and 
  
 (j) provide assistance to SkinMedica in areas of quality control and quality assurance, including providing material data
safety sheets and other certificates reasonably requested by SkinMedica. 
  
 2.5 SkinMedica’s Responsibilities. Regarding the manufacturing of Product, SkinMedica shall: 
  

(a) make available to Smith & Nephew for its use in performing the manufacturing operations hereunder and for the manufacture by Smith & Nephew
of its own products all of the machinery, equipment, appliances, vehicles, tools, accessories and other personal property described on Schedule C and/or was provided to Smith & Nephew by Advanced Tissue Sciences (“ATS”) for the
manufacture of products (the “SkinMedica Equipment”); 
  
 (b) be responsible for the replacement of any piece of SkinMedica Equipment that becomes inoperable or is lost as a result of its ordinary use; 
  
 (c) immediately notify Smith & Nephew of any actual or potential government action relevant to the manufacture of the Product and promptly notify
Smith & Nephew of any adverse reactions, or product anomalies, stability problems or complaints relevant to the manufacture of the Product; 
  
 (d) ascertain and comply with all applicable laws and regulations in connection with the use of the Product and maintain all necessary licenses, permits
or other authorizations for use of the Product; and 
  
 (e) obtain
and maintain any applicable approvals, authorizations, registration, notifications or the like with regard to the use of the Product. 
  

 5 

 2.6 Contingent Duties. SkinMedica acknowledges and agrees that Smith &
Nephew’s obligation and ability to perform its obligations set forth in Section 2.4 is contingent upon SkinMedica’s timely satisfaction of the obligations set forth in Section 6.2. Without limiting the generality of the
foregoing, Smith & Nephew shall have no obligation to manufacture the Product at any time during which SkinMedica fails to (i) remit the payment required pursuant to Section 6.2, (ii) make the SkinMedica Equipment available for Smith
& Nephew’s use, or (iii) keep the SkinMedica Equipment in good repair. 
  
 2.7 Ownership Rights and Obligations. Subject to Section 2.10(a), the parties acknowledge and agree that all of (i) the SkinMedica Equipment, and (ii) the Product for which title has
passed pursuant to Section 2.10 (b), shall be and remain the property of SkinMedica and SkinMedica shall be responsible for all obligations related to such ownership, including the payment of personal property taxes and the maintenance of
insurance thereon.  
  
 2.8
Orders. Smith & Nephew shall manufacture and sell to SkinMedica up to *** liters of the Product per month. Smith & Nephew shall use commercially reasonable efforts to fulfill SkinMedica’s orders, if any, in
excess of such amounts. In accordance with Section 2.3, the Specified Delivery Date shall be at least *** from the date of the purchase order when SkinMedica’s order for the Product exceeds the Smith & Nephew equivalent collagen schedule
for a particular month. Both parties acknowledge that whilst Smith & Nephew will use all commercially reasonable efforts to fulfill these orders, Smith & Nephew will not be held liable for failure to do so if such failure arises through the
acts of a third party and through no fault of Smith & Nephew, provided, however, Smith & Nephew shall take reasonable efforts to mitigate the consequences of any third party’s acts that may adversely affect Smith & Nephew’s
ability to fulfill the orders. 
  
 2.9 Delivery and Title.

  
 (a) Smith & Nephew shall retain title to all raw
materials, all by products, and work-in-process relating to the Product. 
  
 (b) Smith & Nephew shall deliver the Product to the Delivery Destination within ten (10) days from the Delivery Date. Title and risk of loss in the Product shall transfer to SkinMedica upon delivery of the Product
to the common carrier or licensed trucker approved by SkinMedica or upon transfer to the storage provider whether that be Smith & Nephew or a third party storage provider for the Product. 
  
 2.10 Acceptance. Smith & Nephew shall provide
SkinMedica a certificate of analysis for each lot of Product shipped to SkinMedica. SkinMedica may reject any portion of a Product shipment which does not conform to the Specifications. SkinMedica shall make such rejection (i) in writing within ***
of receipt by SkinMedica of the nonconforming Product and the certificate of analysis; and (ii) provide the full basis for the rejection promptly thereafter (and in any event within the following ***). If no rejection notice is provided by
SkinMedica, SkinMedica shall be deemed to have accepted the Product. Upon any such rejection of the Product, Smith & Nephew shall provide replacement Product to SkinMedica within *** of the receipt of the written notice of the rejection or
dispute the rejection. In the event of an unresolved dispute, Smith & Nephew shall have the option of referring to a neutral third party 
  

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 6 

 
arbiter reasonably acceptable to both parties, and the parties shall be bound thereafter by the findings of such neutral third party, and the losing party in
such dispute shall pay for the costs of the third party arbiter. In the event that product is condemned by mutual agreement, SkinMedica shall either return the nonconforming Product or destroy it, as directed by Smith & Nephew. 
  
 2.11 Retention of Intellectual Property. The
parties agree that SkinMedica shall own all rights, title, and interest in any enhancements, improvements, modifications to the Product, including all right, title and interest in and to all work that may be the subject matter of copyright
protection, advertising and marketing concepts, information, data, formulas, designs, models, drawings, computer programs (including all documentation, related listings, design specifications and flowcharts), trade secrets and any inventions,
including all processes, machines, manufactures and compositions of matter and any other invention that may be the subject matter of patent protection; and all statutory protection obtained or obtainable thereon (the “Intellectual
Property”) created, made, conceived, reduced to practice or authored by Smith & Nephew or any Persons provided by Smith & Nephew either solely or jointly with any other third party that results from development efforts funded solely
by SkinMedica; provided, however, the Intellectual Property does not include Smith & Nephew’s pre-existing intellectual property, including know-how. SkinMedica grants to Smith & Nephew a non-exclusive, perpetual (or for the
duration of the Intellectual Property right), worldwide, assignable, royalty free license to the Intellectual Property developed pursuant to this Agreement and solely owned by SkinMedica (as between SkinMedica and Smith & Nephew) for use in the
Smith & Nephew Business. The parties further agree that all other Intellectual Property developed in connection with the performance of this Agreement or with the use of information, materials or facilities of SkinMedica (or any of its
Affiliates) received by Smith & Nephew during the Term shall be jointly owned by Smith & Nephew and SkinMedica, and as joint owners shall have the right to fully exploit such joint Intellectual Property without an obligation to account to
the other with respect to the proceeds of such exploitation. The parties agree that they will negotiate in good faith to resolve any issues relating to how to prosecute, maintain, and enforce such jointly owned Intellectual Property. 
  
 2.12 Rights to Use SkinMedica Intellectual
Property. SkinMedica grants to Smith & Nephew a non-exclusive, worldwide, assignable, royalty-free license to U.S. Patent No. 6,372,494 (the “ ‘494 patent”), including all foreign counterparts, for the life of the
‘494 patent for use in the Smith & Nephew Business. Smith & Nephew may also sublicense the ‘494 patent to third parties acting on Smith & Nephew’s behalf. For purposes of this Agreement, the term Smith & Nephew
Business means “(a) developing, manufacturing, marketing and selling Dermagraft®, TransCyte® and other products developed from the same technology for the medical care and treatment of skin tissue wounds on humans, including diabetic
foot ulcers, foot ulcers, venous ulcers, burns (partial thickness and full thickness), cosmetic surgery for skin tissue defects or post-surgical skin tissue or post-trauma skin tissue rehabilitation (but not cosmetic surgery for the enhancement of
normal skin tissue (e.g., chemical peels and laser resurfacing)) and ostomy applications; and (b) developing, and potentially manufacturing, marketing and selling cartilage based tissue modification, repair or replacement products for use in the
repair or replacement of tissue attached to and/or part of the musculoskeletal system.” In addition to the foregoing, SkinMedica grants to Smith & Nephew a non-exclusive, non-transferable, non-sublicensable license during the Term to
SkinMedica’s intellectual property solely to manufacture and supply the Product to SkinMedica. Except as set forth expressly herein, Smith & Nephew shall have no rights whatsoever in SkinMedica’s intellectual property. 

  

 7 

 ARTICLE III. 
 EXCLUSIVITY 
  
 3.1
Non-exclusive Purchaser. Subject to SkinMedica’s obligations under Section 2.7, SkinMedica may obtain all or any amount of the Product from its own employees and facilities or from third parties other than Smith
& Nephew. 
  
 3.2 Exclusive Supplier of
NouriCel. Smith & Nephew shall not supply the Product to any third party during the Term. Should SkinMedica’s monthly orders for the Product fall below *** per month during the first year of the Term, Smith & Nephew will
have the unilateral right to terminate this Agreement with *** notice. Should SkinMedica’s monthly orders for the Product fall below *** every two (2) months during the remainder of the Term, Smith & Nephew will have the unilateral right to
terminate this Agreement with *** notice. 
  
 ARTICLE IV.

 TERM 
  
 The term of this Agreement (the “Term”) shall commence on the Effective Date and, unless sooner terminated pursuant to the provisions
hereof, expire, with respect to the Product to be manufactured hereunder, on the expiration date set forth for the Product in the column labeled “Expiration Date” on Schedule A. Twelve months prior to the expiration of the
term and annually thereafter, the parties shall meet to discuss a possible extension of the term for an additional twelve months, provided, however, the failure to do so will not constitute a breach of this Agreement. 
  
 ARTICLE V. 
 PRICES 
  
 5.1 General. All pricing for the Product shall be in U.S. Dollars. The prices for the Product sold by Smith & Nephew to SkinMedica shall be as described on Schedule A. SkinMedica and Smith & Nephew
hereby acknowledge and agree that the raw materials necessary to manufacture “NouriCel” as described on Schedule A are by-products resulting from the manufacture of “Collagen.” If at any time Smith & Nephew ceases or
is unable to generate sufficient “Collagen” to meet SkinMedica’s purchases of NouriCel, the price for the NouriCel shall be amended in accordance with the price set forth in Schedule A. All such prices are F.O.B. Smith &
Nephew’s facilities in La Jolla, California. Such prices do not include any shipping charges (or any customs duties), or the charges provided for in Sections 2.4(c), 2.4(e), 5.2 and 5.3, all of which shall be
additional charges over and above the charges contemplated by this Section 5.1. 
  
 5.2 Sales Taxes. Prices and other charges set forth on Schedule A do not include sales, use, excise, occupation, privilege, value-added or similar taxes. SkinMedica shall pay, or
reimburse Smith & Nephew for, the gross amount of any present or future sales, use, excise, occupation, privilege, value-added or other similar tax (excluding any tax on net income, corporate franchise tax or fee or any similar tax or fee)
applicable to the sale or furnishing of any Product to SkinMedica. 
  

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 8 

 5.3 Price Adjustments. The prices set forth on Schedule A may be
adjusted ***. All disputes relating to price increases shall be resolved in accordance with Article XVI. 
  
 5.4 Non Concurrent Manufacture of Collagen. The parties agree that the Smith & Nephew Forecast will assist SkinMedica in
its order of the Product to attempt to minimize or avoid the situation in which Smith & Nephew must generate Collagen specifically for the manufacture of the Product. If SkinMedica’s purchases of the Product exceed Smith & Nephew’s
ability to manufacture the Product from its internally generated supply of Collagen, the price for the Product shall be increased to the amount specified per liter set forth in Schedule A as the price for non-concurrent manufacture of
collagen. 
  
 ARTICLE VI. 
 INVOICE AND PAYMENTS 
  
 6.1 Invoicing. 
  
 (a) Upon Smith & Nephew’s release of each lot of Product in accordance with Smith & Nephew’s Quality System, Smith & Nephew will
invoice SkinMedica for payment for each such lot of Product. All prices are FOB Smith & Nephew’s facilities in La Jolla, California. SkinMedica shall be responsible for the freight and insurance cost for delivery of the product to the final
destination as set forth in the purchase order. 
  
 (b) Smith
& Nephew shall invoice SkinMedica for the development work performed at the request of SkinMedica and jointly agreed to by the parties in writing within thirty (30) days of the completion of the development work, unless agreed to otherwise by
the parties. 
  
 (c) Smith & Nephew will periodically submit
to SkinMedica statements of amounts due pursuant to Sections 2.4(c) and 2.4(e). 
  
 6.2 Payment. SkinMedica will pay each invoice within thirty (30) days of the receipt of such invoice. 
  
 6.3 Overdue Payments. If any amounts due hereunder have not been received by the due date, such
overdue amounts shall bear interest from the due date at the rate of 1% per month or the highest rate allowed by law (whichever is lower) for each month or portion thereof that the payment is not made. Interest will accrue daily until payment in
full has been received. 
  
 6.4 No
Acknowledgement. Neither payments made by SkinMedica nor the acceptance of payments by Smith & Nephew in the amount shown on any invoice from Smith & Nephew shall be construed as an acceptance or agreement with the amount so
stated or the 
  

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 9 

 
amount received. Either party may recover from the other the amount of any overpayment or underpayment. Without limiting the generality of the foregoing,
Smith & Nephew may supplement any invoice it renders to SkinMedica hereunder for less than the full amount to which it is entitled; provided, that, such supplement is made within a reasonable time after the invoice being
supplemented. 
  
 ARTICLE VII. 
 FURTHER COOPERATION AND AUDITS 
  
 7.1 Further Cooperation. 
  
 (a) Smith & Nephew agrees to provide reasonable assistance, including *** (“Cell Bank Material”) at no cost to SkinMedica, and all necessary
information to any third party selected by SkinMedica as an additional or an alternative manufacturer and supplier of the Product. Any experimental or other Cell Bank Material provided by Smith & Nephew to SkinMedica or at SkinMedica’s
direction prior to the termination of this Agreement shall be included in and considered as part of the Cell Bank Material. Smith and Nephew makes no representation or warranty about the content, quality, or viability of the Cell Bank Material other
than Smith & Nephew’s representations as title free and clear of all liens and encumbrances and that the Cell Bank Material has been extracted or derived from Smith & Nephew’s cell bank and that each vial of Cell Bank Material
contains *** cells in the aggregate in the master cell bank vials and that Smith & Nephew will use commercially reasonable efforts to maintain the content, quality, and viability of the master cell bank or the working cell bank. Smith &
Nephew’s sole and exclusive liability in the event Smith & Nephew breaches this representation concerning the Cell Bank Material shall be the supplementation of material to meet the minimum number of cells and such supplementation shall be
limited to *** of the material in one instance. If the replacement or supplementation Cell Bank Material does not satisfy the representation contained in this section, then Smith & Nephew shall have no further obligations. At Smith &
Nephew’s sole option, Smith & Nephew may choose to replace the master cell bank vials with master cell bank material or manufacturing working cell bank material, and where substituted, *** of master cell bank material will be considered
equivalent to *** of manufacturing working cell bank material. The representations contained in this Section shall terminate two (2) years from the date of this Agreement. All other representations or warranties (whether express or implied including
the representation and warranty of fitness for a particular purpose) concerning the Cell Bank Material are hereby disclaimed and SkinMedica waives any rights or claim SkinMedica may have concerning the Cell Bank Material other than for a material
breach of the foregoing representation. In the case of transfer of the process for the manufacture of Collagen, including the concentration process, Smith & Nephew, SkinMedica, and the third party manufacturer will enter into a “three party
agreement” reasonably acceptable to all parties. In addition in such a transfer, SkinMedica will indemnify Smith & Nephew against any claims or legal action which may arise from Inamed as a result of such transfer. Except as set forth
above, SkinMedica shall reimburse Smith & Nephew for its Cost of providing any such assistance. 
  
 (b) *** 
  

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 10 

 7.2 Audit. SkinMedica may audit (a) Smith & Nephew’s manufacturing
operations and books and records to ensure that Smith & Nephew is employing adequate internal and administrative controls and procedures, and (b) any other records of Smith & Nephew or its Affiliates reasonably required to verify compliance
with the terms of this Agreement. During any access to the Facility in connection with any such audit, SkinMedica and its employees and independent auditors shall adhere to all of Smith & Nephew’s security and confidentiality policies and
abide by all applicable workplace rules of Smith & Nephew. Smith & Nephew may audit any records of SkinMedica or its Affiliates reasonably required to verify compliance with the terms of this Agreement. The party requesting the audit may use
independent auditors, who may participate fully in such audit. If an audit is proposed with respect to information which the party to be audited wishes not to disclose to the other party (“Restricted Information”), then on the
written demand of the party to be audited, the individuals conducting the audit with respect to Restricted Information will be limited to the independent auditors of the party requesting the audit. In such event, the party to be audited shall pay
the costs of the independent auditors conducting such audit, but only with respect to that portion of the audit relating to the Restricted Information. Such independent auditors shall enter into an agreement with the parties hereto, on terms that
are agreeable to both parties hereto, under which such independent auditors shall agree to maintain the confidentiality of the information obtained during the course of such audit and establishing what information such auditors will be permitted to
disclose to report the results of any audit of Restricted Information to the party requesting the audit. Any such audit shall be conducted during regular business hours and in a manner that does not interfere unreasonably with the other party’s
operations. Each party may perform an audit one time in each twelve-month period during the Term; provided, that such party may perform an additional audit at any time if the preceding audit reveals a failure to conform to the terms of
this Agreement. Each audit shall begin upon the date specified by the requesting party in a Notice to the other party a minimum of *** prior to the commencement of the audit and shall be performed diligently and in good faith and shall be completed
within a reasonable period of time. 
  
 ARTICLE VIII.

 STANDARD OF CARE AND GUARANTEE 
  
 8.1 General. Each of Smith & Nephew and SkinMedica will use (and will cause its Affiliates to use) commercially reasonable
efforts in the performance of its obligations hereunder and will do so with the same degree of care, skill and prudence customarily exercised when engaged in similar activities for itself and its Affiliates. 
  
 8.2 Limited Warranty and Remedy. Smith &
Nephew warrants to SkinMedica that the Product delivered to SkinMedica hereunder will have been manufactured in accordance with the Specifications. If for any reason any Product provided by Smith & Nephew to SkinMedica do not comply with such
warranty, Smith & Nephew shall promptly provide Product remedying such deficiencies at no additional charge. This limited warranty and remedy shall be continuing and shall be binding upon Smith & Nephew and its successors and assigns and
shall inure to the benefit of SkinMedica, its successors and assigns and its Affiliates. The warranty and remedy provided in this Section 8.2 are the sole and exclusive warranty and remedy provided by Smith & Nephew in connection with the
manufacturing of Product pursuant to this Agreement. 
  

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 8.3 Allocation of Risk. This Agreement is intended as a complete allocation
between Smith & Nephew and SkinMedica of the risk of any Product failure or defect claims or any kind arising from the Products sold pursuant to this Agreement or products incorporating such Products. This allocation is reflected in the price of
the Products. 
  
 8.4 Disclaimer. THE
WARRANTIES PROVIDED IN THIS AGREEMENT ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES OF ANY KIND WITH RESPECT TO THE PRODUCT, WHETHER STATUTORY, WRITTEN, ORAL, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE AND INCLUDING ANY WARRANTIES REGARDING ANY YIELD OR QUALITY OF MATERIALS TO BE OBTAINED THROUGH ANY EXTRACTION PROCESS PERFORMED ON THE PRODUCT BY SKINMEDICA OR ANY OF SKINMEDICA’S CUSTOMERS. 
  
 ARTICLE IX. 
 TERMINATION 
  
 9.1 Termination Rights. 
  
 (a)
Either party may terminate this Agreement without cause upon giving the other party twelve (12) months written notice of its intent to terminate this Agreement. 
  

(b) Each party shall have the right to terminate this Agreement effective upon delivery of Notice to the other party if the other party: (1) has its
corporate existence terminated by voluntary or involuntary dissolution, (2) materially defaults in the performance of any of its covenants or obligations contained in this Agreement, and such default is not remedied to the nondefaulting party’s
reasonable satisfaction within *** after Notice to the defaulting party of such default, or if such default is not capable of rectification within ***, if the defaulting party has not promptly begun to rectify the default within such *** period or
is not proceeding diligently to rectify the default, or (3) materially defaults in the performance of any of its covenants or obligations contained in any agreement between such party and the nondefaulting party (or any of its Affiliates) and has
not cured such default within the cure period provided in such agreement, if any. 
  
 9.2 Procedures Upon Termination. Upon any termination of this Agreement, Smith & Nephew will complete any work-in-process and otherwise cooperate with SkinMedica as reasonably necessary
to avoid disruption of the normal business operations of SkinMedica, and SkinMedica shall pay for such completed Product in accordance with Section 6.2. Except as otherwise required pursuant to Article XIV and Section 18.8, each
party shall destroy or return to the other party all records made or obtained in the course of performance hereunder that contain information that is protected from disclosure by such party under Article XIV and all licenses granted hereunder
by one party to the other party shall terminate, except for the license granted by SkinMedica to Smith & Nephew to the ‘494 patent, which license shall only terminate if this Agreement terminates as a result of a material breach of this
Agreement by Smith & Nephew. If 
  

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 12 

 
either party elects to destroy any records as permitted above, such party shall provide the other party with written confirmation of such destruction upon
request. Promptly after any termination of this Agreement, SkinMedica shall remove from the Facility all of the SkinMedica Equipment. SkinMedica shall remove such items in a manner that does not unreasonably interfere with Smith & Nephew’s
operations and that minimizes damage to the Facility. SkinMedica shall use reasonable care and diligence in such removal and shall be liable to Smith & Nephew for, and indemnify Smith & Nephew against, any damage resulting from any failure
of SkinMedica to use reasonable care and diligence, and all removal costs will be at SkinMedica’s expense. SkinMedica shall also make a good faith effort to obtain a non-solicit provision from all alternative or additional manufacturers of the
Product, provided such efforts shall in no way obligate SkinMedica to pay to such manufacturer any additional consideration for obtaining such a provision.  
  
 9.3 Other Termination Obligations. If this Agreement is terminated pursuant to the provisions of
this Article IX (other than as a result of a material breach of this Agreement by SkinMedica), upon written request by SkinMedica, Smith & Nephew will provide a reasonable amount of assistance in transferring production to another
manufacturer; provided, however, that the amount of assistance provided under this provision shall not materially interfere with, disrupt or jeopardize Smith & Nephew’s operations or ongoing business. SkinMedica shall
reimburse Smith & Nephew for its Cost of providing any such assistance unless such termination is a result of Smith & Nephew’s breach pursuant to the provisions of Section 9.2(b). 
  
 9.4 Survival. The rights and obligations of the
parties under Article VII, Article VIII, Article X, Article XII, Article XIV, Article XV and Article XVI, and Sections 2.12, 9.2, 9.3, and 9.4, as well as all rights
and obligations with respect to any amounts that remain unpaid under Article VI hereof as of the date of termination, shall survive any termination of this Agreement. 
  
 ARTICLE X. 
 INDEMNITY 
  
 10.1 Smith &
Nephew’s Obligation. Subject to the limitations provided for in this Agreement, Smith & Nephew agrees to indemnify and hold SkinMedica and the SkinMedica Indemnified Parties (as hereinafter defined) harmless from and against,
and in respect of, any and all claims by, and liabilities to, third parties (“Third-Party Claims”) and any and all expenses (including reasonable fees and expenses of counsel) in connection with pending or threatened litigation or
other proceedings regarding such Third-Party Claims (“Expenses”) incurred by SkinMedica or any of the SkinMedica Indemnified Parties that arise out of or relate to any claim (including any claim for personal injury, wrongful death
or property damage) to the extent such claim arises from any failure by Smith & Nephew to manufacture Product in accordance with the Specifications or any applicable laws, regulations and directives; provided, however, that the
Product at issue is used in accordance with the directions for use of such Product; provided, further, that this Section 10.1 shall not apply to any Third-Party Claim or Expense which is based upon any purported failure of any
Product to produce any particular yield or quality of materials when any extraction process is performed on such Product by SkinMedica or any of SkinMedica’s customers; provided, further, that this Section 10.1 shall not
apply to any Third-Party Claim or Expense to the extent that the parties agree, or it is finally determined pursuant to Article XVI that the Third-Party Claim or Expense is within the scope of SkinMedica’s indemnity obligation set forth
in Section 10.2. 
  

 13 

 The “SkinMedica Indemnified Parties” shall mean and include (A) SkinMedica’s
Affiliates, (B) the respective directors, officers, managers, members, agents and employees of SkinMedica and its Affiliates, (C) each other person, if any, controlling SkinMedica or any of its Affiliates, and (D) the successors, assigns, heirs and
personal representatives of any of the foregoing. 
  
 10.2
SkinMedica’s Obligation. SkinMedica agrees to indemnify and hold Smith & Nephew and the Smith & Nephew Indemnified Parties (as hereinafter defined) harmless from and against, and in respect of, any and all
Third-Party Claims and Expenses incurred by Smith & Nephew or any of the Smith & Nephew Indemnified Parties that arise out of or relate to: 
  
 (a) any actual or alleged patent, copyright or trademark infringement, or misappropriation or violation of any other proprietary right, arising out of the
use of any Product manufactured by Smith & Nephew in accordance with the Specifications; or 
  
 (b) any claim (including any claim for personal injury, wrongful death or property damage) to the extent such claim (i) arises from any defects in the
Specifications resulting from the use of the Product or (ii) arises out of the use of any Product manufactured by Smith & Nephew in accordance with the Specifications; or (iii) arises out of the use of any Product manufactured by Smith &
Nephew not in accordance with the Specifications to the extent that the claim exceeds the amounts paid by SkinMedica to Smith & Nephew hereunder; provided, however, that this Section 10.2 shall not apply to any Third-Party
Claim or Expense to the extent that the parties agree, or it is finally determined pursuant to Article XVI that the Third-Party Claim or Expense is within the scope of Smith & Nephew’s indemnity obligation set forth in Section
10.1. 
  
 The “Smith & Nephew Indemnified
Parties” shall mean and include (A) Smith & Nephew’s Affiliates, (B) the respective directors, officers, managers, members, agents and employees of Smith & Nephew and its Affiliates, (C) each other person, if any, controlling
Smith & Nephew or any of its Affiliates, and (D) the successors, assigns, heirs and personal representatives of any of the foregoing. 
  
 10.3 Third-Party Claims. If any third party shall make any claim or commence any arbitration proceeding or suit against any
one or more of the Smith & Nephew Indemnified Parties or the SkinMedica Indemnified Parties (“Indemnified Persons”) with respect to which an Indemnified Person intends to make any claim for indemnification against SkinMedica
under Section 10.2 or against Smith & Nephew under Section 10.1 (as the case may be, the “Indemnifying Party”), such Indemnified Persons shall promptly (but in no event more than 30 days after learning of such
claim) give written Notice to the Indemnifying Party of such third-party claim, arbitration proceeding or suit and the following provisions shall apply; provided, that any failure to provide the foregoing Notice on a timely basis shall not relieve
the Indemnifying Party of its obligations hereunder except to the extent that the Indemnifying Party is prejudiced or otherwise damaged thereby. 
  

 14 

 ARTICLE XI. 
 COMPLIANCE WITH LAWS 
  
 11.1 General. Each of the parties shall at all times conduct its operations in accordance with all laws, rules, regulations and directives applicable to such party. 
  
 11.2 Quality Assurance and Regulatory Compliance Audits.

  
 (a) SkinMedica shall have the right to audit the facility in
which Smith & Nephew manufactures the Product (the “Facility”), upon reasonable advance Notice and at reasonable times, for the purpose of confirming Smith & Nephew’s compliance with applicable laws, rules, regulations
under this Agreement. During any access to the Facility in connection with any such audit, SkinMedica and its employees shall adhere to all of Smith & Nephew’s security policies and abide by all applicable workplace rules of Smith &
Nephew. In the event that an audit reveals noncompliance, any required corrective action plan should be developed promptly by Smith & Nephew and submitted to SkinMedica in a timely manner for SkinMedica’s approval. If such actions are
unreasonable and onerous upon Smith and Nephew, it may provide SkinMedica a twelve (12) month written notice of termination. In the event that such non compliance puts Smith & Nephew in serious breach of regulations or law then Smith &
Nephew shall have the right to issue notice of immediate cessation of activities. 
  
 (b) To the extent that Smith & Nephew is aware of such audit, Smith & Nephew will notify SkinMedica within *** of a Food and Drug Administration (“FDA”) investigation or audit of the facility
at which the Product is manufactured. Smith & Nephew shall notify SkinMedica of any FDA request to review any documents, Product or practices pertaining to SkinMedica or the Product. Smith & Nephew will provide to SkinMedica, promptly upon
receipt from the FDA, copies of any FDA investigation or audit reports pertaining to the Product which Smith & Nephew obtains, as well as any Smith & Nephew response to the FDA regarding any findings of such investigation or audit.

  
 11.3 SkinMedica’s Regulatory
Responsibilities. SkinMedica shall, or shall cause its customers (as appropriate) to: 
  
 (a) Provide Smith & Nephew with copies of or all approved labels and packaging requirements relating to Product, which must be used for the
manufacture, storage and/or distribution of the Product and any finished product into which it is incorporated; 
  
 (b) Be responsible for maintenance of complaints files on the Product, Product complaint analyses and decisions, and notify Smith & Nephew of all
complaints received; 
  
 (c) Administer all requisite field
corrective actions, product holds or quarantines relating solely to the Product; 
  
 (d) Be responsible for any post-market surveillance requirements, post-approval studies, and annual reports requested by regulatory authorities; and 
  

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 (e) Comply with any relevant state and federal facility/establishment registrations and listings
pertinent to distributor requirements of the Product. 
  
 11.4
Product Recalls. In the event of a Product recall, Smith & Nephew and SkinMedica will cooperate in carrying out and investigating the cause of such recall. Smith & Nephew will be responsible for the costs of recall
if the recall is a result of Smith & Nephew’s (i) failure to manufacture the Product in accordance with the Specifications; (ii) breach of its performance obligations hereunder; or (iii) gross negligence, or willful misconduct. In all other
circumstances, SkinMedica shall be responsible for the cost of the recall. Smith and Nephew will not be responsible to SkinMedica for costs of recall for any batches made under ATS’ contractual agreement with SkinMedica. 
  
 ARTICLE XII. 
 INSURANCE 
  
 Each party shall maintain insurance, including comprehensive general liability insurance and insurance to cover its facilities and operations, and products liability insurance of at least ***. Each party shall furnish to the other party, at
the other party’s request, a certificate of insurance issued by the insurance carrier evidencing such coverage. 
  
 ARTICLE XIII. 
 FORCE MAJEURE 
  
 The obligations of either party to perform under this Agreement shall be
excused during each period of delay caused by matters (not including lack of funds or other financial causes) such as strikes, supplier delays, shortages of raw materials, including collagen manufacturing arrangements, government orders or acts of
God, that are reasonably beyond the control of the party obligated to perform; provided that nothing contained in this Agreement shall affect either party’s ability or discretion with respect to any strike or other employee dispute or
disturbance and all such strikes, disputes or disturbances shall be deemed to be beyond the control of such party. A condition of force majeure shall be deemed to continue only so long as the affected party shall be taking all reasonable actions
necessary to overcome such condition. If either party shall be affected by a condition of force majeure, such party shall give the other party prompt Notice thereof, which Notice shall contain the affected party’s estimate of the duration of
such condition and a description of the steps being taken or proposed to be taken to overcome such condition of force majeure. Any delay occasioned by any such cause shall not constitute a default under this Agreement, and the obligations of the
parties shall be suspended during the period of delay so occasioned. During any period of force majeure, the party that is not directly affected by such condition of force majeure shall be entitled to take any reasonable action necessary to mitigate
the effects of such condition of force majeure, and any financial obligations shall be adjusted in a fair and equitable manner. SkinMedica acknowledges that the Product is a living and active material and is subject to contamination and similar
hazards. Smith & Nephew agrees to take reasonable commercial efforts to prevent against such contamination and similar hazards. Delay to perform Smith & Nephew’s obligations hereunder shall be excused if caused by or result from such
hazards. 
  

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 ARTICLE XIV. 
 CONFIDENTIALITY 
  
 14.1
Smith & Nephew Information. SkinMedica shall hold (and shall use commercially reasonable efforts to cause its employees and representatives to hold) in confidence (in a manner consistent with SkinMedica’s treatment
of its own confidential information) all information received by SkinMedica from Smith & Nephew. SkinMedica shall not use such information for any purpose other than as contemplated under this Agreement for verifying compliance with this
Agreement. The obligations of SkinMedica under this Section 14.1 shall only apply to such information so disclosed or communicated by Smith & Nephew (i) in writing or other tangible form or which such recipient has reason to believe is
confidential or proprietary; or (ii) orally or otherwise and identified at the time of disclosure as confidential or proprietary to the recipient or which such recipient has reason to believe is confidential or proprietary. 
  
 14.2 SkinMedica Information. Smith & Nephew
shall hold (and shall use commercially reasonable efforts to cause its employees and representatives to hold) in confidence (in a manner consistent with Smith & Nephew’s treatment of its own confidential information) all information
received by Smith & Nephew from SkinMedica. Smith & Nephew shall not use such information for any purpose other than as contemplated under this Agreement for verifying compliance with this Agreement. The obligations of Smith & Nephew
under this Section 14.2 shall only apply to such information so disclosed or communicated by SkinMedica (i) in writing or other tangible form or which such recipient has reason to believe is confidential or proprietary; or (ii) orally or
otherwise and identified at the time of disclosure as confidential or proprietary to the recipient or which such recipient has reason to believe is confidential or proprietary. 
  
 14.3 General. 
  
 (a) Each party shall be responsible for preventing unauthorized access by such party’s agents and employees to data
transferred to or otherwise made available to the other party under this Agreement. 
  
 (b) The obligations of confidentiality and nondisclosure imposed under this Article XIV shall not apply to data and information that the recipient can demonstrate: 
  
 (i) is published or is or otherwise becomes available to the general public
as part of the public domain without breach of this Agreement by the recipient; 
  
 (ii) has been furnished or made known to the recipient by a third party without any obligation on the recipient to keep it confidential and under circumstances that are not known to the recipient to involve a breach
of the third party’s obligations to the other party; 
  
 (iii) was developed independently of information furnished to the recipient under this Agreement; or 
  

 17 

 (iv) was known to the recipient at the time of receipt thereof from the other party, was not improperly
obtained and is not otherwise subject to any obligation to keep it confidential. 
  
 14.4 Injunctive Relief. Each party (the “first party”) acknowledges that the other party would not have an adequate remedy at law for the breach by the first party of any
one or more of the covenants contained in this Article XIV and agrees that, in the event of such breach, the other party may, in addition to the other remedies which may be available to it, apply to a court for an injunction to prevent
breaches of this Article XIV and to enforce specifically the terms and provisions of this Article XIV. The prevailing party in any action commenced under this Article XIV shall also be entitled to receive reasonable
attorneys’ fees and court costs. 
  
 14.5
Required Disclosures. The provisions of this Article XIV shall not preclude disclosures required by law; provided, however, that each party will use reasonable efforts to notify the other, prior to
making any such disclosure, and permit the other to take such steps as it deems appropriate (including obtaining a protective order) to minimize any loss of confidentiality. 
  
 ARTICLE XV. 
 LIMITATION OF LIABILITY AND REMEDIES 
  
 15.1
Damages. 
  
 (a) In no event, whether
based on contract, indemnity, warranty, tort (including negligence), strict liability or otherwise, shall either party or any of its directors, officers, managers, members, employees or agents, be liable for incidental, consequential, special,
exemplary or punitive damages. The foregoing limitation and disclaimer shall apply irrespective of whether the possibility of such incidental, consequential, special, exemplary or punitive damages had been disclosed in advance or could have
reasonably been foreseen. 
  
 (b) The limitations and disclaimers
of obligations and liabilities contained in this Article XV are intended to apply to the fullest extent permitted by law. 
  
 15.2 Exclusive Remedies. 
  
 (a) SkinMedica’s exclusive remedies against Smith & Nephew for any breach of, or other act or omission arising out of or relating to, this
Agreement or Smith & Nephew’s performance hereunder shall be: 
  
 (i) the right to receive refunds of the amount of any payment in excess of amounts owed under this Agreement; 
  
 (ii) the limited remedy for breach of warranty provided in Section 8.2 or for breach of any provision of this Agreement relating to failure to
meet Specification limited to the replacement of the non-conforming Product; 
  
 (iii) the right to actual damages for the cost of repair or replacement of the SkinMedica Equipment that are the result of Smith & Nephew’s negligence, gross negligence, or willful misconduct up to a maximum
amount of fifty percent (50%) of the amounts paid by SkinMedica to Smith & Nephew hereunder; 
  

 18 

 (iv) the right to indemnification as provided in Article X up to a maximum amount of *** of the
amounts paid by SkinMedica to Smith & Nephew hereunder; 
  
 (v) the right to injunction, specific performance or other equitable non-monetary relief when available under applicable law; 
  
 (vi) the right to terminate this Agreement as set forth in Article IX; and 
  
 (vii) the right to actual damages for breach of Article XIV, up to a maximum amount of *** of the amounts paid by
SkinMedica to Smith & Nephew hereunder. 
  
 (b) Smith &
Nephew’s exclusive remedies against SkinMedica for any breach of, or other act or omission arising out of or relating to, this Agreement or SkinMedica’s performance hereunder shall be: 
  
 (i) the right to receive payment for Product and for other amounts invoiced
pursuant to Article VI; 
  
 (ii) the right to
indemnification as provided in Section 9.3 and Article X, 
  
 (iii) the right to injunction, specific performance or other equitable non-monetary relief when available under applicable law; 
  

(iv) the right to terminate this Agreement as set forth in Article IX; and 
  
 (v) the right to actual damages for breach of Article XIV. 
  
 15.3 Affiliates. The foregoing provisions of this
Article XV apply to a party’s Affiliates manufacturing or providing any the Product or performing any other function hereunder or receiving any Product hereunder. 
  
 ARTICLE XVI. 
 DISPUTE RESOLUTION 
  
 16.1
General. 
  
 (a) In the event of any
dispute, controversy or claim between Smith & Nephew and SkinMedica arising out of or relating to this Agreement, Smith & Nephew and SkinMedica shall first attempt in good faith to resolve such disputes among themselves within 30 calendar
days from the date any disputing party sends written Notice of such dispute to the other disputing party. If the parties fail to resolve such dispute within such period, the parties shall follow the dispute resolution procedures set forth in
Section 16.1(b). 
  

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 19 

 (b) Any dispute, claim or controversy arising out of or relating to this Agreement or the breach,
termination or validity hereof (“Dispute”) shall be finally settled by binding arbitration in San Diego, California, administered by the American Arbitration Association’s commercial arbitration rules then in effect, as amended
by this Agreement. The cost of the arbitration, including the fees and expenses of the arbitrator(s), shall be shared equally by Smith & Nephew and SkinMedica. Each party shall bear the cost of preparing and presenting its case. The arbitration
award (“Award”) shall be presented to the parties in writing, and upon request of either Smith & Nephew or SkinMedica, shall specify the factual and legal bases for the Award. The Award may be confirmed and enforced in any court
of competent jurisdiction. Notwithstanding any of the foregoing, either Smith & Nephew or SkinMedica may, without inconsistency with this arbitration provision, apply to any court having jurisdiction hereof and seek interim provisional,
injunctive or other equitable relief until the Award is rendered or the controversy is otherwise resolved. Except as necessary in court proceedings to enforce this arbitration provision or any Award, or to obtain interim relief, neither Smith &
Nephew or SkinMedica nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of Smith & Nephew and SkinMedica. 
  
 16.2 Injunctive Relief. Nothing contained in this Article XVI shall prevent either party
from resorting to judicial process if injunctive or other equitable relief from a court is necessary to prevent serious and irreparable injury to one party or to others. The use of arbitration procedures will not be construed under the doctrine of
laches, waiver or estoppel to affect adversely either party’s right to assert any claim or defense. 
  
 ARTICLE XVII. 
 ASSIGNMENT 
  
 17.1 General. The rights of either Party
under this Agreement shall not be assignable by such party (other than to such party’s Affiliates) without the written consent of the other party; which consent shall not be unreasonably withheld; provided, however, no consent is required if a
party assigns this Agreement to a successor in interest of all or substantially all of such party’s assets or business. Notwithstanding the foregoing, if SkinMedica assigns this Agreement to a Competitor for any reason, including, for example,
if a Competitor acquires all or substantially all of SkinMedica’s assets or business, Smith & Nephew may terminate this Agreement, in whole or in part, by giving SkinMedica six (6) months written notice of its intent to terminate this
Agreement. 
  
 17.2 Third Party
Beneficiaries. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The successors and permitted assigns hereunder shall include any permitted assignee as well as the
successors in interest to such permitted assignee (whether by merger, liquidation (including successive mergers or liquidations) or otherwise). Except as expressly set forth in Article X, nothing in this Agreement, expressed or implied, is
intended or shall be construed to confer upon any Person other than the parties and successors and assigns permitted by this Article XVII any right, remedy or claim under or by reason of this Agreement. 
  
 17.3 Delegation. Except in the case of providing
external third party storage, Smith & Nephew shall not use any subcontractor to perform its obligations hereunder without 

  

 20 

 
SkinMedica’s prior written consent, which consent shall not be unreasonably withheld or delayed, however, Smith & Nephew shall not be relieved of
any liability therefor. Smith & Nephew shall provide SkinMedica such information concerning quality assurance, manufacturing methods or other data as reasonably requested by SkinMedica about any proposed subcontractor. 
  
 ARTICLE XVIII. 
 MISCELLANEOUS PROVISIONS 
  
 18.1 Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be given or delivered by personal delivery, by registered or certified mail
(first class postage prepaid) or by recognized private courier addressed as follows: 
  
 If to Smith & Nephew, to: 
  
 Smith & Nephew, Inc. 
 1450 Brooks Road 
 Memphis, Tennessee 38116 
 Attention: General Counsel 
  
 with a copy to: 
  
 Smith & Nephew Wound Management (La Jolla) 
 10933 North Torrey Pines Road 
 La Jolla, CA 92037-1005 
  
 If to SkinMedica, to: 
  
 SkinMedica,
Inc. 
 5909 Sea Lion Place, Suite H 
 Carlsbad, CA 92008 
 Attention: Chief Executive Officer 
  
 with copies to: 
  
 Latham & Watkins

 12636 High Bluff Drive, Suite 300 
 San Diego, CA 92130 
 Attention: Scott Wolfe 
  
 or to such other address as
such party may indicate by a Notice delivered to each other party. 
  
 Any notice, consent, authorization, direction or other communication delivered as aforesaid shall be deemed to have been effectively delivered and received, if sent by recognized private overnight courier service, on the date following the
date upon which it is delivered to such courier service, if sent by mail, on the date of actual acceptance or on the date of such delivery. 
  

 21 

 18.2 Entire Agreement; Amendments. This Agreement contains the entire
understanding of the parties with regard to the subject matter contained herein, and supersedes all prior agreements, understandings or letters of intent between or among any of the parties. This Agreement shall not be amended, modified or
supplemented except by a written instrument signed by an authorized representative of each of the parties. 
  
 18.3 Waivers. Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the
party or parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently authorized for the purposes of this Agreement if, as to any party, it is authorized in writing by an authorized representative of such party. The
failure of any party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of any party thereafter to
enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. 
  
 18.4 Partial Invalidity. Wherever possible, each provision hereof shall be interpreted in such manner as to be effective and
valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such provision shall be ineffective to the extent, but only to the
extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such invalid, illegal or unenforceable provision or provisions or any other provisions hereof, unless such a construction would be unreasonable.

  
 18.5 Execution in Counterparts.
This Agreement may be executed in counterparts, each of which shall be considered an original instrument, but all of which shall be considered one and the same agreement, and shall become binding when one or more counterparts have been signed by
each of the Parties and delivered to each other party. 
  
 18.6
Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws (as opposed to the conflicts of law provisions) of the State of California. 
  
 18.7 Relationship of the Parties. 
  
 (a) By virtue of this Agreement, neither party shall be deemed the other
party’s agent, partner, joint venturer or legal representative, and neither party has express or implied authority to bind the other in any manner whatsoever. 
  
 (b) All employees and representatives of Smith & Nephew manufacturing or providing the Product to SkinMedica will be
deemed for purposes of all compensation and employee benefits to be employees or representatives of Smith & Nephew (or its subcontractors) and not employees or representatives of SkinMedica. In performing such services, such employees and
representatives will be under the direction, control and supervision of Smith & Nephew (or its subcontractors) and not of SkinMedica, and Smith & Nephew (or its subcontractors) will have the sole right to exercise all authority with respect
to the employment (including termination of employment), assignment and compensation of such employees and representatives. 
  

 22 

 18.8 Records Retention. Each party will retain all information obtained or
created in the course of performance hereunder in accordance with the records retention guidelines of the other party existing from time to time. Each party has advised the other of its respective guidelines as in effect on the Effective Date and
will advise the other party of any subsequent changes therein. 
  
 18.9 Non-Solicitation. During the Term and for *** thereafter, without the prior written consent of the other party, neither party shall solicit or recruit any employee of the other party who is or has been
assigned to perform any obligations of such party under this Agreement. 
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

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 IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their authorized
representatives as of the date set forth above. 
  

			
	SKINMEDICA, INC.
		
	By:	 	 /s/ Rex Bright

	Name:	 	Rex Bright
	Title:	 	President
	
	SMITH & NEPHEW WOUND MANAGEMENT
	(LA JOLLA)
		
	By:	 	 /s/ Roy Trayhern

	Name:	 	Roy Trayhern
	Title:	 	President

  

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