Consulting Agreement



 Exhibit 10.27 
 CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. 
 CONSULTING AGREEMENT 
 THIS CONSULTING AGREEMENT (this “Agreement”) is effective as of March 1, 2010 (the “Effective
Date”), by and between ZOGENIX, INC., a Delaware corporation (the “Company”), and David Nassif (the “Consultant”). 

 

	Section 1.	SERVICES 

 The Company hereby
retains Consultant and Consultant hereby agrees to render consulting services (“Services”) to the Company for the term of this Agreement. The Services shall include, but are not limited to, those duties set forth in
Exhibit A hereto. The Consultant will not perform any Services for the Company except as authorized or requested by the Company. Consultant agrees to complete the Services in a satisfactory and workmanlike manner. 

 

	Section 2.	TERM AND TERMINATION 

  

	 	a.	This Agreement is effective as of the Effective Date, and will terminate on May 31, 2010 (the “Termination Date”), unless terminated
earlier pursuant to subsection (b) below or extended by mutual consent of the Consultant and the Company. 

  

	 	b.	This Agreement may be terminated (i) for any reason by the Company at any time prior to the Termination Date by giving thirty (30) days’ written notice
of termination to Consultant, (ii) for cause by the Consultant at any time prior to the Termination Date by giving written notice of termination setting forth in reasonable detail the basis for the termination and providing the Company with
thirty (30) days’ opportunity to cure, and (iii) automatically by the Company upon the death or disability of Consultant. 

  

	 	c.	Termination of this Agreement shall not affect (i) the Company’s obligation to pay for Services previously rendered by the Consultant or expenses reasonably
incurred by the Consultant for which the Consultant is entitled to reimbursement under Section 3 of this Agreement, or (ii) the Consultant’s continuing obligations to the Company under Sections 5, 6 and 7 of this Agreement.


  

	 	d.	In connection with the Consultant’s Services to the Company, the Consultant agrees to: (i) devote its, his or her efforts to the performance of Services not
less than eight (8) business days per month, (ii) be available for consultation by telephone, fax or e-mail on a regular basis on reasonable prior notice; and (iii) be available to attend meetings with the President, CEO or Board of
Directors of the Company at the Company’s headquarters on reasonable prior notice. In connection with the Consultant’s Services to the Company, the Consultant agrees to devote its, his or her efforts to the performance of Services
described in Exhibit A. 









	Section 3.	COMPENSATION 

  

	 	a.	As compensation for the Services to be rendered pursuant to this Agreement, the Company shall pay to Consultant the sum of $300.00 per hour, to be paid monthly
following the performance of the Services and commencing with the conclusion of the first full month following the Effective Date. Except as set forth in any amendment to this Agreement, Consultant shall not be entitled to any other compensation or
benefits for the Services. 

  

	 	b.	The Company shall reimburse the Consultant for actual travel and other out-of-pocket expenses performed pursuant to the Company’s express written request,
reasonably incurred up to a pre-approved amount, after submission of reasonably detailed invoices documenting such expenses. Consultant is responsible for all other travel and other out of pocket expenses incurred in connection with this agreement.


  

	Section 4.	RELATIONSHIP OF THE PARTIES; NO CONFLICTS 

  

	 	a.	Notwithstanding any provision of this Agreement to the contrary, the Consultant is and shall at all times be an independent contractor and not an employee, agent,
partner, or joint venture of the Company. The Consultant shall have no right under this Agreement, or as a result of its, his or her consulting services to the Company, to participate in any other employee, retirement, insurance or other benefit
program of the Company, nor will the Company make any deductions from the Consultant’s compensation for taxes, the payment of which shall be solely the Consultant’s responsibility. 


 

	 	b.	The Consultant shall pay, when and as due, any and all taxes incurred as a result of its, his or her compensation hereunder, including estimated taxes, and if requested
by the Company, provide the Company with proof of said payments. The Consultant further agrees to indemnify the Company and hold it harmless to the extent of any obligation imposed on the Company: (i) to pay withholding taxes or similar items;
or (ii) resulting from the Consultant being determined not to be an independent contractor. 

  

	 	c.	The Consultant represents and warrants that (a) neither this Agreement nor the performance thereof will conflict with or violate any obligation of the Consultant
or right of any third party; (b) the Consultant is responsible for providing workers’ compensation coverage for itself/himself/herself and any employees of the Consultant assisting with the Services; (c) the Consultant is solely
responsible for compensating such employees, if any; (d) the Consultant has obtained all licenses or certifications necessary to perform the Services; and (e) the Consultant shall comply with all applicable laws in the performance of the
Services. 

  

	Section  5.	NONDISCLOSURE OF CONFIDENTIAL INFORMATION 

  

	 	a.	 The Consultant recognizes and acknowledges that certain knowledge and information which it, he or she will acquire or develop relating to the business
of the Company, including, without limitation, any financial information, business plans, clinical and product development plans, strategies, business forecasts, 



 

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sales and merchandising materials, patent disclosures, patent applications, structures, models, techniques, know-how, trade secrets, processes, compositions, formulations, compounds and apparatus
relating to the same and other proprietary information related to the current, future and proposed products and services of the Company (collectively, “Confidential Information”) are the valuable property of the Company.



  

	 	b.	The Consultant covenants and agrees that, without the prior written consent of the Company, the Consultant will not use, disclose, divulge or publish any Confidential
Information at any time during the term hereof or thereafter except as may be necessary to perform the Services; provided, however, that the Consultant shall not be obligated to treat as confidential, any Confidential Information that
the Consultant can prove through its own written documentation that (i) was publicly known at the time of disclosure to the Consultant, (ii) became publicly known or available thereafter other than by means in violation of this Agreement
or any other duty owed to the Company by the Consultant, or (iii) was lawfully disclosed to the Consultant by a third party. In the event a court or governmental agency legally compels Consultant to disclose Confidential Information, Consultant
shall promptly inform the Company of the compelled disclosure, so that the Company may seek a protective order or other remedy or waive compliance with this Agreement, or both. Consultant shall limit any compelled disclosure of Confidential
Information to that legally required. 

  

	 	c.	The Consultant agrees that any disclosure of Confidential Information will only be such as is reasonably necessary to the performance of the Services and will only be
to its employee’s and assistants who are bound by written agreements with Consultant to maintain the Confidential Information in confidence. 

  

	 	d.	The Consultant agrees not to disclose to the Company, or use in connection with the Consultant’s efforts for the Company, any Confidential Information belonging to
any third party, including the Consultant’s prior employers, or any prior inventions made by him or her and which the Company is not otherwise legally entitled to learn of or use. 


 

	 	e.	Upon termination of its, his or her service hereunder, the Consultant agrees to promptly deliver to the Company, all Confidential Information in its, his or her
possession that is written or other tangible form (together with all copies or duplicates thereof, including computer files), and all other property, materials or equipment that belong to the Company, its customers, its prospects or its
suppliers. 

  

	Section 6.	INTELLECTUAL PROPERTY 

  

	 	a.	 “Intellectual Property” includes any and all new or useful art, discovery, improvement, technical development, or
invention, whether or not patentable and all related know-how, designs, trademarks, formulae, processes, manufacturing techniques, trade secrets, ideas, artworks, software or other copyrightable or patentable work, that the Consultant, solely or
jointly with others, makes, conceives or reduces to practice that resulted from the Consultant’s Services for the Company under this Agreement. All right, title and interest of every kind and nature whatsoever in and to the Intellectual
Property made, discussed, 


  

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developed, secured, obtained or learned by the Consultant during the term of this Agreement, or the 60-day period immediately following termination of this Agreement, are hereby assigned to the
Company, and shall be the sole and exclusive property of the Company for any purposes or uses whatsoever, and shall be disclosed promptly by the Consultant to the Company. 



 

	 	b.	The Consultant agrees to assist the Company in any reasonable manner to obtain and enforce for the Company’s benefit any patents, copyrights and other property
rights in any and all countries, with respect to any Intellectual Property, and the Consultant agrees to execute, when requested, patent, copyright or similar applications and assignments to the Company and any other lawful documents deemed
necessary by the Company to carry out the purposes of this Agreement with respect thereto. In the event that the Company is unable for any reason to secure the Consultant’s signature to any document required to apply for or execute any patent,
copyright or other applications with respect to any Intellectual Property (including improvements, renewals, extensions, continuations, divisions or continuations in part thereof), after a written demand is made therefor upon the Consultant (which
shall refer to the provisions of this paragraph), the Consultant hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as the Consultant’s agents and attorneys-in-fact to act for and on the
Consultant’s behalf and instead of the Consultant, to execute and file any such application and to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyrights, mask works or other rights thereon with the
same legal force and effect as if executed by the Consultant. 

  

	Section 7.	NON-SOLICITATION AND AVOIDANCE OF CONFLICTS 

  

	 	a.	During the term of this Agreement, the Consultant agrees that, without the prior written consent of the Company, the Consultant will refrain from performing any
services in any capacity for any person or entity engaged in competition with the Company or any entity or person introduced by the Company to the Consultant. 


 

	 	b.	During the term of this Agreement and for a period of twelve (12) months thereafter, the Consultant agrees that, without the prior written consent of the Company,
the Consultant will not, directly or indirectly, on its, his or her behalf or on behalf of any other person or entity, (i) call upon, solicit, divert or take away or attempt to solicit, divert or take away any of the customers, business or
patrons of the Company; or (ii) solicit or attempt to solicit for employment any person who is then an employee of or consultant to the Company or who was an employee of or consultant to the Company at any time during the twelve (12) month
period immediately prior to the date of the subject solicitation. 

  

	 	c.	The parties acknowledge that the foregoing restrictions placed upon the Consultant are necessary and reasonable in scope and duration and are a material inducement to
the Company to execute, deliver and perform its obligations arising under or pursuant to this Agreement, and that despite such restrictions the Consultant will be able to earn its, his or her livelihood and engage in its, his or her profession
during the term of this Agreement. 

  

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	Section 8.	EMPLOYMENT OF ASSISTANTS 

 Should
the Consultant deem it necessary to employ assistants to aid it, him or her in the performance of the Services, the Consultant shall so notify the Company and obtain the Company’s prior written consent. The parties agree that the Company will
not direct, supervise, or control in any way such assistants to the Consultant in their performance of Services. The parties further agree that such assistants are employed solely by the Consultant, and that it, he or she alone is responsible for
providing workers’ compensation insurance for its, his or her employees, for paying the salaries and wages of its, his or her employees, and for ensuring that all required tax withholdings are made. Consultant further represents and warrants
that it, he or she maintains workers’ compensation insurance coverage for its, his or her employees and acknowledges that it, he or she alone has responsibility for such coverage. Consultant shall impose upon such assistants the same
confidentiality obligations as contained in this Agreement. 
  

	Section 9	INDEMNIFICATION 

  

	 	a.	To the fullest extent permitted by the Company’s bylaws and applicable law, the Company shall indemnify, defend and hold harmless the Consultant from and against
losses and expenses (including reasonable attorneys’ fees, judgments, settlements and all other costs, direct or indirect) actually and reasonably incurred by reason of, or based upon, any threatened, pending or completed action, suit,
proceeding, investigation or other dispute relating or pertaining to any alleged act or failure to act within the course and scope of the Services, provided that the Consultant was not in breach of this Agreement, acted in good faith and in a
manner the Consultant reasonably believed to be in the best interests of the Company and, if any criminal proceedings are involved, had no reasonable cause to believe the Consultant’s conduct was unlawful. The Company’s obligations under
the foregoing sentence are conditioned upon the Consultant: (a) providing the Company with prompt notice of any such claims; (b) allowing the Company to control the defense and settlement of such claims; (c) providing the Company with
the information and assistance necessary for such defense and settlement of the claims; and (d) not entering into any settlement with respect to such claims without the express consent of the Company. The Company’s obligation to advance
expenses or provide indemnity hereunder shall be deemed satisfied to the extent of any payments made by an insurer on behalf of the Company or Consultant. 

  


	 	b.	The Consultant also agrees and undertakes to repay defense costs and expenses, including attorneys’ fees, reasonably incurred in defending against any such claim
which may be advanced by the Company prior to the final disposition of any proceeding relating to such claim, if a court of competent jurisdiction ultimately shall determine that the Consultant is not entitled to indemnification pursuant to this
Agreement or the indemnification is not consistent with any applicable law or regulation. 

  

	 	c.	The Consultant agrees to indemnify, defend, and hold the Company free and harmless from all claims, demands, losses, costs, expenses, obligations, liabilities, damages,
recoveries and deficiencies, including interest, penalties, attorneys’ fees, and costs, that the Company may incur as a result of a breach by Consultant of any representation or covenant contained in this Agreement. 


 

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	Section 10.	RIGHTS AND REMEDIES UPON BREACH 


If the Consultant breaches or threatens to commit a breach of any of the provisions of Sections 5, 6 or 7 of this Agreement (the
“Protective Covenants”), Consultant agrees that such breach or threatened breach of the Protective Covenants would cause irreparable injury to the Company and that money damages would not provide an adequate remedy to the
Company. The Company shall also have any other rights and remedies available to the Company under law or in equity. 
  

	Section 11.	MISCELLANEOUS 

  

	 	a.	This Agreement shall be governed in all respects by the laws of the State of California, without regard to any provisions thereof relating to conflict of laws among
different jurisdictions. 

  

	 	b.	The parties agree that any dispute or controversy arising out of or relating to any interpretation, construction, performance or breach of this Agreement shall be
settled by arbitration before a single neutral arbitrator to be held in San Diego County, California, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association
(“AAA”). The arbitrator may grant injunctions or other relief in such dispute or controversy, and may award the prevailing party its counsel fees and expenses in accordance with applicable law. The decision of the arbitrator
shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court of competent jurisdiction. Notwithstanding the AAA’s rules, the parties may take discovery in
accordance with Section 1283.05 of the California Code of Civil Procedure. Nothing in this paragraph shall prohibit or limit the parties from seeking provisional remedies (including injunctive relief) in lieu of or in addition to arbitration at
any time directly from a court of competent jurisdiction, pursuant to California Code of Civil Procedure Section 1281.8 or any similar statute of an applicable jurisdiction. 


 

	 	c.	This Agreement is the entire agreement of the parties with respect to the Services to be provided by the Consultant and supersedes any prior agreements between the
parties with respect to the subject matter of this Agreement. This Agreement may only be amended in writing by the Company and the Consultant and their respective permitted successors and assigns. 


 

	 	d.	The Consultant may not assign, subcontract or otherwise delegate its, his or her obligations under this Agreement without the Company’s prior written consent.
Subject to the foregoing, this Agreement will be binding upon and inure to the benefit of the parties and their respective heirs, legal representatives, successors and assigns. 


 

	 	e.	Either party’s failure to enforce any right resulting from a breach of any provision of this Agreement shall not operate or be construed as a waiver of any other
or subsequent breach by the other party. 

  

	 	f.	 All notices required or permitted to be given by one party to the other under this Agreement shall be sufficient if sent by either certified mail
return receipt requested, nationally recognized courier, facsimile or hand delivery to the parties 



 

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at the respective addresses set forth below or to such other address as the party to receive the notice has designated by notice to the other party. All notices shall be effective (i) when
delivered personally, (ii) when transmitted by telecopy, electronic or digital transmission with receipt confirmed, (iii) the business day when delivered by a nationally recognized courier, or (iv) upon receipt if sent by certified or
registered mail. 


  

			
	Company:	  	Zogenix, Inc.
		  	12671 High Bluff Drive, Suite 200
		  	San Diego, CA 92130
		  	Attn: Chief Financial Officer
		
	Consultant:	  	David Nassif
		  	[***]
		  	[***]

  

	 	g.	If any of the provisions of this Agreement are found to be invalid under an applicable statute or rule of law, they are to be enforced to the maximum extent permitted
by law and beyond such extent are to be deemed omitted from this Agreement, without affecting the validity of any other provision of this Agreement. 

  

	 	h.	This Agreement may be executed in counterparts, each of which will be deemed an original and all of which together shall constitute one and the same instrument.


  

	 	i.	The covenants, representations and warranties in this Agreement shall survive the termination of this Agreement. 


 

	 	j.	Consultant hereby acknowledges that Consultant has been encouraged to consult with legal counsel (at Consultant’s own expense) prior to executing this Agreement.


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	[***]	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted
portions. 

  

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 Having understood and agreed to the foregoing, the Company and the Consultant have signed
this Agreement as of the day and year written above. 
  

									
	CONSULTANT	 		 	 ZOGENIX, INC.

					
	By:	 	 /s/ David W. Nassif
	 		 	By:	 	 /s/ Roger L. Hawley

	Name:	 	David W. Nassif	 		 	Name:	 	Roger L. Hawley
	Title:	 	Consultant	 		 	Title:	 	Chief Executive Officer
					
	Dated:	 	March 1, 2010	 		 	Dated:	 	March 1, 2010

 Social Security Number or Tax ID:








 EXHIBIT A 

DUTIES OF CONSULTANT 
  

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