Independent Director Compensation Policy



 Exhibit 10.3 
 ZOGENIX, INC. 
 INDEPENDENT DIRECTOR COMPENSATION POLICY 

(AS AMENDED AND RESTATED EFFECTIVE APRIL 16, 2012) 
 Non-employee members of the board of directors (the “Board”) of Zogenix, Inc. (the “Company”) shall be eligible to receive cash and equity compensation as
set forth in this Independent Director Compensation Policy. The cash compensation and option grants described in this Independent Director Compensation Policy shall be paid or be made, as applicable, automatically and without further action of the
Board, to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, an “Independent Director”) who may be eligible to receive such cash compensation or options, unless
such Independent Director declines the receipt of such cash compensation or options by written notice to the Company. This Independent Director Compensation Policy shall remain in effect until it is revised or rescinded by further action of the
Board. The terms and conditions of this Independent Director Compensation Policy shall supersede any prior cash or equity compensation arrangements between the Company and its directors. 

1. Cash Compensation. Each Independent Director shall be eligible to receive an annual retainer of $37,000 for service on the
Board. In addition, an Independent Director serving as: 
 (a) chairman of the board shall be eligible to receive
an additional annual retainer of $60,000 for such service, however the total cash compensation paid to the chairman of the board in all capacities cannot exceed $100,000; 

(b) chairman of the Audit Committee shall be eligible to receive an additional annual retainer of $20,000 for such
service; 
 (c) members (other than the chairman) of the Audit Committee shall be eligible to receive an
additional annual retainer of $7,000 for such service; 
 (d) chairman of the Compensation Committee shall be
eligible to receive an additional annual retainer of $10,000 for such service; 
 (e) members (other than the
chairman) of the Compensation Committee shall be eligible to receive an additional annual retainer of $5,000 for such service; 
 (f) chairman of the Nominating and Corporate Governance Committee shall be eligible to receive an additional annual retainer of $7,500 for such service; and 

(g) members (other than the chairman) of the Nominating and Corporate Governance Committee shall be eligible to receive an
additional annual retainer of $4,000 for such service. 
 The annual retainers shall be paid by the Company in quarterly
installments or more frequently as deemed advisable by the officers of the Company for administrative or other reasons. 
 2.
Equity Compensation. The Independent Directors shall be granted the following option awards. The options described below shall be granted under and shall be subject to the terms and provisions of the Company’s 2010 Equity Incentive Award
Plan (the “2010 Plan”) and shall be granted subject to the execution and delivery of option agreements, including attached exhibits, in substantially 







 
the same forms previously approved by the Board, setting forth the vesting schedule applicable to such options and such other terms as may be required by the 2010 Plan. 

(a) Initial Options. A person who is initially elected or appointed to the Board, and who is an Independent
Director at the time of such initial election or appointment, shall be eligible to receive a non-qualified stock option to purchase 50,000 shares of common stock (subject to adjustment as provided in the 2010 Plan) on the date of such initial
election or appointment (each, an “Initial Option”). 
 (b) Subsequent Options. A
person who is an Independent Director automatically shall be eligible to receive a non-qualified stock option to purchase 35,000 shares of common stock (subject to adjustment as provided in the 2010 Plan) on the date of each annual meeting of the
Company’s stockholders. The option grants described in this clause 2(b) shall be referred to as “Subsequent Options.” An Independent Director elected for the first time to the Board at an annual meeting of stockholders
shall only receive an Initial Option in connection with such election, and shall not receive a Subsequent Option on the date of such meeting as well. 
 (c) 2012 Options. Each person who is an Independent Director on April 16, 2012 automatically shall be eligible to receive a non-qualified stock option to purchase 50,000 shares of common stock
on the date such awards are formally approved by the Compensation Committee of the Board, which date is expected to be on or before April 27, 2012. The option grants described in this clause 2(c) shall be referred to as the “2012
Options.” The 2012 Options shall be granted in addition to any Subsequent Options to which an Independent Director may become entitled at the 2012 annual meeting of the Company’s stockholders. 

(d) Termination of Employment of Employee Directors. Members of the Board who are employees of the Company or any
parent or subsidiary of the Company who subsequently terminate their employment with the Company and any parent or subsidiary of the Company and remain on the Board will not receive an Initial Option grant pursuant to clause 2(a) above, but to the
extent that they are otherwise eligible, will be eligible to receive, after termination from employment with the Company and any parent or subsidiary of the Company, Subsequent Options as described in clause 2(b) above. 

(e) Terms of Options Granted to Independent Directors 

(i) Exercise Price. The per share exercise price of each option granted to an Independent Director shall equal 100%
of the Fair Market Value (as defined in the 2010 Plan) of a share of common stock on the date the option is granted. 
 (ii) Vesting. Initial Options and 2012 Options granted to Independent Directors shall become exercisable in thirty-six equal monthly installments of 1/36 of the shares subject to such option on the
first day of each calendar month following the date of the Initial Option grant, such that each Initial Option and 2012 Option shall be 100% vested on the first day of the 36th month following the date of grant, subject to the director’s continuing service on the Board through such dates.
Subsequent Options granted to Independent Directors shall become vested in twelve equal monthly installments of 1/12 of the shares subject to such option on the first day of each calendar month following the date of the Subsequent Option grant,
subject to a director’s continuing service on the Board through such dates. The term of each option granted to an Independent Director shall be ten years from the date the option is granted. No portion of an option which is unexercisable at the
time of an Independent Director’s termination of membership on the Board shall thereafter become exercisable. 

  
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