QUESTCOR PHARMACEUTICALS INC
1ST AMENDMENT TO ASSET PURCHASE AGREEMENT
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<TYPE>EX-10.7
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<FILENAME>dex107.htm
<DESCRIPTION>1ST AMENDMENT TO ASSET PURCHASE AGREEMENT
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<TITLE>Prepared by R.R. Donnelley Financial -- 1st Amendment to Asset Purchase Agreement</TITLE>
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<BODY bgcolor="#FFFFFF"> <p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS FIRST AMENDMENT TO ASSET PURCHASE AGREEMENT (this &#147;Agreement&#148;), is dated and effective as of January
29, 2002, by and among AVENTIS PHARMACEUTICALS INC., a Delaware corporation f/k/a AVENTIS PHARMACEUTICALS PRODUCTS INC. (&#147;Seller&#148;), and QUESTCOR PHARMACEUTICALS, INC., a California corporation (&#147;Purchaser&#148;).</font></p> <p
align="center"><b><font size="2" face="Times New Roman">W I T N E S S E T H</font></b></p> <p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><i>WHEREAS</i></b>, Purchaser and Seller entered into
an Asset Purchase Agreement, dated as of July 27, 2001 (the &#147;Asset Purchase Agreement&#148;).</font></p> <p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><i>WHEREAS</i></b>, Purchaser and
Seller wish the amend certain provisions thereof to correct the Asset Purchase Agreement to reflect the understanding of the parties, and correct certain scrivener&#146;s errors;</font></p> <p><font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><i>NOW, THEREFORE</i></b>, in mutual covenants, the parties hereto agree as follows:</font></p> <p><font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.&#160; Section 4.1(f) is hereby is hereby amended and restated in its entirety as follow:</font></p> <p><font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<b>Finished Product Inventory Warranty.&#160; </b>The Finished Product Inventory delivered hereunder shall conform to the specifications therefor, and shall
have been formulated, filled, tested, labeled and packaged in accordance with manufacturing procedures in effect as of the Effective Date, copies of which have been provided to Questcor.</font></p> <p><font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.&#160; The parties hereto acknowledge that Seller reserved the rights necessary and Purchaser agrees that it has licensed and granted Seller such rights, to
sell the Product to Athena Rx Pharmacy for the Limited Access Programs, as well as to other customers, in both cases for orders that need to be filled on or prior to the date that Purchaser has received relabeled Product, and for the period of any
termination phase of the Agreement with Athena Rx Pharmacy.&#160; The parties acknowledge that Seller has billed and shipped such Products under the terms and conditions that were specified in the agreement between Seller and Athena Rx Pharmacy, and
to other customers in accordance with past practice.&#160; Sales of such quantities of Product have been booked by Seller and Purchaser shall not have any claim to the revenues or profits from this commercial activity.&#160; The parties also
acknowledge that any future claim arising from the sales of Product by Seller made under this Section 2 shall be borne fully by Seller, consistent with the provisions of the Asset Purchase Agreement that relate to sales of the Product prior to the
execution date thereof.</font></p> <p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.&#160; Seller and Purchaser acknowledge that notwithstanding anything in Sections 2.1(e), 2.3(b) and
2.5(b) the Asset Purchase Agreement to the contrary, Purchaser has the option, but not the obligation, to purchase any Remaining Inventory remaining at the termination of the Supply and License Agreement described in Section 1 hereof. Seller and
Purchaser further acknowledge that the terms of the sale of such.</font></p> <font size="3" face="Times New Roman"> </font>

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<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER"> <font size="3" face="Times New Roman"><BR> </font> <p><font size="2" face="Times New Roman">Remaining Inventory elected to be purchased by Purchaser shall be governed by Sections 2.3(b) and 2.5(b) of the Asset
Purchase Agreement.&#160; Purchaser shall notify Seller in writing of its election to purchase some or all of the Remaining Inventory at least 30 days prior to the first anniversary of the Effective Date of the Asset Purchase Agreement.&#160;
Purchaser acknowledges that Seller has no responsibility to retain or maintain such Remaining Inventory after the first anniversary of the Effective Date.</font></p> <p><font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In all other respects, the Asset Purchase Agreement remains unamended.</font></p> <p><font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><i>IN WITNESS WHEREOF</i></b>, the parties have caused this First Amendment to be executed by their duly authorized representatives effective as of the date first
above written.</font></p>
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<td colspan="3" valign="top" height="22"> <p><font size="2" face="Times New Roman"><b><font size="2" face="Times New Roman">A<small>VENTIS</small> P<small>HARMACEUTICALS</small> P<small>RODUCTS</small> I<small>NC</small>.</font></b></font></p> </td>
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<td width="2%" valign="top"> <p><font size="2" face="Times New Roman">By: </font></p> </td>
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<td width="34%" valign="top"> <p align="center"><font size="2" face="Times New Roman">/s/&nbsp;&nbsp;&nbsp;&nbsp;J<small>OHN</small>&nbsp;R.&nbsp;L<small>EONE</small></font></p> </td> </tr>
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<td width="4%" valign="top"><font size="2" face="Times New Roman">Name:</font><br> <font size="2">Title:</font> </td>
<td width="34%" valign="top"> <p align="center"><b><font size="2" face="Times New Roman">John R. Leone<br> Senior Vice President and<br> COO, U.S. Commercial Operations</font></b></p> </td> </tr>
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<td colspan="3" valign="top" height="23"> <p><font size="2" face="Times New Roman"><b><font size="2" face="Times New Roman">Q<small>UESTCOR</small> P<small>HARMACEUTICALS</small>, I<small>NC</small>.</font></b></font></p> </td> </tr>
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<td width="2%" valign="top"> <p><font size="2" face="Times New Roman">By:</font></p> </td>
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<td width="34%" valign="top"> <p align="center"><font size="2" face="Times New Roman">/s/&nbsp;&nbsp;&nbsp;&nbsp;K<small>ENNETH</small> R. G<small>REATHOUSE</small></font></p> </td> </tr>
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<td width="4%" valign="top"><font size="2" face="Times New Roman">Name:</font><br> <font size="2">Title:</font> </td>
<td width="34%" valign="top"> <p align="center"><b><font size="2" face="Times New Roman">Kenneth R. Greathouse<br> Vice President, Commercial Operations</font></b></p> </td> </tr> </table> <p>&nbsp;</p> <p><font size="2"
face="Times New Roman">&nbsp;</font></p>
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