Document:

Second Amended and Restated LIBOR Addendum

 Exhibit 10.2 
 Second Amended and Restated LIBOR 
 Addendum to Amended and
Restated Loan and Security Agreement 
 This Second Amended and Restated LIBOR Addendum to Amended and Restated Loan and
Security Agreement (this “Addendum”) is entered into as of February 13, 2012 by and between COMERICA BANK (“Bank”) and SANTARUS, INC. (“Borrower”). This Addendum supplements the terms of the Amended and Restated
Loan and Security Agreement (as amended from time to time, the “Loan Agreement”) dated as of July 11, 2008. 
 1.
Definitions. 
 (a) Advance. As used herein, “Advance” means a borrowing requested by Borrower and made
by Bank under the Loan Agreement, including a LIBOR Option Advance and/or a Prime Rate Option Advance (as hereafter defined). 

(b) Business Day. As used herein, “Business Day” means any day that is not a Saturday, Sunday or any other day on which
banks in the State of California are authorized or required to close. 
 (c) LIBOR. As used herein, “LIBOR”
means the rate per annum (rounded upward if necessary, to the nearest whole 1/8 of 1%) and determined pursuant to the following formula: 
  

					
	LIBOR =	  	 Base LIBOR
	  	
		  	100% - LIBOR Reserve Percentage	  	

 (1) “Base LIBOR” means the rate per annum determined by Bank at which deposits for the relevant
LIBOR Period would be offered to Bank in the approximate amount of the relevant LIBOR Option Advance in the interbank LIBOR market selected by Bank, upon request of Bank at 10:00 a.m. California time, on the day that is the first day of such LIBOR
Period. 
 (2) “LIBOR Reserve Percentage” means the reserve percentage prescribed by the Board of Governors of the
Federal Reserve System (or any successor) for “Eurocurrency Liabilities” (as defined in Regulation D of the Federal Reserve Board, as amended), adjusted by Bank for expected changes in such reserve percentage during the applicable LIBOR
Period. 
 (d) LIBOR Business Day. As used herein, “LIBOR Business Day” means a Business Day on which dealings
in Dollar deposits may be carried out in the interbank LIBOR market. 
 (e) LIBOR Period. As used herein, “LIBOR
Period” means, with respect to a LIBOR Option Advance: 
 (1) initially, the period commencing on, as the case may be, the
date the Advance is made or the date on which the Advance is converted to a LIBOR Option Advance, and continuing for, in every case, a 30-, 60-, or 90-day period thereafter so long as the LIBOR Option is quoted for such period in the applicable
interbank LIBOR market, as such period is selected by Borrower in the Loan Advance / Paydown Request Form as provided in the Loan Agreement or in the Prime Rate / LIBOR Rate Advance Request Form as provided in this Addendum; and 

(2) thereafter, each period commencing on the last day of the next preceding LIBOR Period applicable to such LIBOR Option Advance and
continuing for, in every case, a 30-, 60-, or 90-day period thereafter so long as the LIBOR Option is quoted for such period in the applicable interbank LIBOR market, as such period is selected by Borrower in the Prime Rate / LIBOR Rate Advance
Request Form as provided in this Addendum. 
 (f) Regulation D. As used herein, “Regulation D” means Regulation
D of the Board of Governors of the Federal Reserve System as amended or supplemented from time to time. 
 (g) Regulatory
Development. As used herein, “Regulatory Development” means any or all of the following: (i) any change in any law, regulation or interpretation thereof by any public authority (whether or not having the force of law);
(ii) the application of any existing law, regulation or the interpretation thereof by any public authority (whether or not having the force of law); and (iii) compliance by Bank with any request or directive (whether or not having the
force of law) of any public authority. 

  
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 2. Interest Rate Options. Borrower shall have the following options regarding the
interest rate to be paid by Borrower on Advances under the Loan Agreement: 
 (a) A rate equal to two and one-quarter percent
(2.25%) above Bank’s LIBOR (the “LIBOR Option”), which LIBOR Option shall be in effect during the relevant LIBOR Period; or 
 (b) A rate equal to the Bank’s “Prime Rate” as defined in the Loan Agreement and quoted from time to time by Bank as such rate may change from time to time (the “Prime Rate
Option”). 
 3. LIBOR Option Advance. The minimum LIBOR Option Advance will not be less than Five Hundred Thousand
Dollars ($500,000) for any LIBOR Option Advance. 
 4. Payment of Interest on LIBOR Option Advances. Interest on each
LIBOR Option Advance shall be payable pursuant to the terms of the Loan Agreement. Interest on such LIBOR Option Advance shall be computed on the basis of a 360-day year and shall be assessed for the actual number of days elapsed from the first day
of the LIBOR Period applicable thereto but not including the last day thereof. 
 5. Bank’s Records Re: LIBOR Option
Advances. With respect to each LIBOR Option Advance, Bank is hereby authorized to note the date, principal amount, interest rate and LIBOR Period applicable thereto and any payments made thereon on Bank’s books and records (either manually
or by electronic entry) and/or on any schedule attached to the Loan Agreement, which notations shall be prima facie evidence of the accuracy of the information so noted. 
 6. Selection/Conversion of Interest Rate Options. At the time any Advance is requested under the Loan Agreement and/or Borrower wishes to select the LIBOR Option for all or a portion of the
outstanding principal balance of the Loan Agreement, and at the end of each LIBOR Period, Borrower shall give Bank notice specifying (a) the interest rate option selected by Borrower; (b) the principal amount subject thereto; and
(c) if the LIBOR Option is selected, the length of the applicable LIBOR Period. Any such notice may be given by email so long as, with respect to each LIBOR Option selected by Borrower, (i) Bank receives written confirmation from Borrower
not later than three (3) LIBOR Business Days after such email notice is given; and (ii) such notice is given to Bank prior to 10:00 a.m., California time, on the first day of the LIBOR Period. For each LIBOR Option requested hereunder,
Bank will quote the applicable fixed LIBOR Rate to Borrower at approximately 10:00 a.m., California time, on the first day of the LIBOR Period. If Borrower does not immediately accept the rate quoted by Bank, any subsequent acceptance by Borrower
shall be subject to a redetermination of the rate by Bank; provided, however, that if Borrower fails to accept any such quotation given, then the quoted rate shall expire and Bank shall have no obligation to permit a LIBOR Option to be selected on
such day. If no specific designation of interest is made at the time any Advance is requested under the Loan Agreement or at the end of any LIBOR Period, Borrower shall be deemed to have selected the Prime Rate Option for such Advance or the
principal amount to which such LIBOR Period applied. At any time the LIBOR Option is in effect, Borrower may, at the end of the applicable LIBOR Period, convert to the Prime Rate Option. At any time the Prime Rate Option is in effect, Borrower may
convert to the LIBOR Option, and shall designate a LIBOR Period. 
 7. Default Interest Rate. From and after the maturity
date of the Loan Agreement, or such earlier date as all principal owing hereunder becomes due and payable by acceleration or otherwise, the outstanding principal balance of the Loan Agreement shall bear interest until paid in full at an increased
rate per annum (computed on the basis of a 360-day year, actual days elapsed) equal to three percent (3.00%) above the rate then in effect. 
 8. Prepayment. In the event that the LIBOR Option is the applicable interest rate for all or any part of the outstanding principal balance of the Loan Agreement, and any payment or prepayment of
any such outstanding principal balance of the Loan Agreement shall occur on any day other than the last day of the applicable LIBOR Period (whether voluntarily, by acceleration, required payment, or otherwise), or if Borrower elects the LIBOR Option
as the applicable interest rate for all or any part of the outstanding principal balance of the Loan Agreement in accordance with the terms and conditions hereof, and, subsequent to such election, but prior to the commencement of the applicable
LIBOR Period, Borrower revokes such election for any reason whatsoever, or if the applicable interest rate in respect of any outstanding principal balance of the Loan Agreement hereunder shall be changed, for any reason whatsoever, from the LIBOR
Option to the Prime Rate Option prior to the last day of the applicable LIBOR Period, or if Borrower shall fail to make any payment of principal or interest hereunder at any time that the LIBOR Option is the applicable interest rate hereunder in
respect of such outstanding principal balance of the Loan Agreement, Borrower shall reimburse Bank, on demand, for any resulting loss, cost or expense incurred by Bank as a result thereof, including, without limitation, any such loss, cost or
expense incurred in obtaining, liquidating, employing or redeploying deposits from third parties. Such amount payable by Borrower 

  
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to Bank may include, without limitation, an amount equal to the excess, if any, of (a) the amount of interest which would have accrued on the amount so prepaid, or not so borrowed, refunded
or converted, for the period from the date of such prepayment or of such failure to borrow, refund or convert, through the last day of the relevant LIBOR Period, at the applicable rate of interest for such outstanding principal balance of the Loan
Agreement, as provided under this Loan Agreement, over (b) the amount of interest (as reasonably determined by Bank) which would have accrued to Bank on such amount by placing such amount on deposit for a comparable period with leading banks in
the interbank LIBOR market. Calculation of any amounts payable to Bank under this paragraph shall be made as though Bank shall have actually funded or committed to fund the relevant outstanding principal balance of the Loan Agreement hereunder
through the purchase of an underlying deposit in an amount equal to the amount of such outstanding principal balance of the Loan Agreement and having a maturity comparable to the relevant LIBOR Period; provided, however, that Bank may fund the
outstanding principal balance of the Loan Agreement hereunder in any manner it deems fit and the foregoing assumptions shall be utilized only for the purpose of the calculation of amounts payable under this paragraph. Upon the written request of
Borrower, Bank shall deliver to Borrower a certificate setting forth the basis for determining such losses, costs and expenses, which certificate shall be conclusively presumed correct, absent manifest error. Any prepayment hereunder shall also be
accompanied by the payment of all accrued and unpaid interest on the amount so prepaid. Any outstanding principal balance of the Loan Agreement which is bearing interest at such time at the Prime Rate Option may be prepaid without penalty or
premium. Partial prepayments hereunder shall be applied to the installments hereunder in the inverse order of their maturities. 
 BY INITIALING
BELOW, BORROWER ACKNOWLEDGE(S) AND AGREE(S) THAT: (A) THERE IS NO RIGHT TO PREPAY ANY LIBOR OPTION ADVANCE, IN WHOLE OR IN PART, WITHOUT PAYING THE PREPAYMENT AMOUNT, EXCEPT AS OTHERWISE REQUIRED UNDER APPLICABLE LAW; (B) BORROWER SHALL BE
LIABLE FOR PAYMENT OF THE PREPAYMENT AMOUNT IF BANK EXERCISES ITS RIGHT TO ACCELERATE PAYMENT OF ANY LIBOR OPTION ADVANCE AS PART OR ALL OF THE OBLIGATIONS OWING UNDER THE LOAN AGREEMENT, INCLUDING WITHOUT LIMITATION, ACCELERATION UNDER A
DUE-ON-SALE PROVISION; (C) BORROWER WAIVES ANY RIGHTS UNDER SECTION 2954.10 OF THE CALIFORNIA CIVIL CODE OR ANY SUCCESSOR STATUTE; AND (D) BANK HAS MADE EACH LIBOR OPTION ADVANCE PURSUANT TO THE LOAN AGREEMENT IN RELIANCE ON THESE
AGREEMENTS. 
  

											
	 /s/ dpc
	  		  		  		  	
	 BORROWER’S INITIALS
	  		  		  		  		  	

 9. Hold Harmless and Indemnification. Borrower agrees to indemnify Bank and to hold Bank harmless
from, and to reimburse Bank on demand for, all losses and expenses which Bank sustains or incurs as a result of (i) any payment of a LIBOR Option Advance prior to the last day of the applicable LIBOR Period for any reason, including, without
limitation, termination of the Loan Agreement, whether pursuant to this Addendum or the occurrence of an Event of Default under the Loan Agreement; (ii) any termination of a LIBOR Period prior to the date it would otherwise end in accordance
with this Addendum; or (iii) any failure by Borrower, for any reason, to borrow any portion of a LIBOR Option Advance. 

10. Funding Losses. The indemnification and hold harmless provisions set forth in this Addendum shall include, without limitation,
all losses and expenses arising from interest and fees that Bank pays to lenders of funds it obtains in order to fund the loans to Borrower on the basis of the LIBOR Option(s) and all losses incurred in liquidating or re-deploying deposits from
which such funds were obtained and loss of profit for the period after termination. A written statement by Bank to Borrower of such losses and expenses shall be conclusive and binding, absent manifest error, for all purposes. This obligation shall
survive the termination of this Addendum and the payment of the Loan Agreement. 
 11. Regulatory Developments Or Other
Circumstances Relating To Illegality or Impracticality of LIBOR. If any Regulatory Development or other circumstances relating to the interbank Euro-dollar markets shall, at any time, in Bank’s reasonable determination , make it unlawful or
impractical for Bank to fund or maintain, during any LIBOR Period, to determine or charge interest rates based upon LIBOR, Bank shall give notice of such circumstances to Borrower and: 

(i) In the case of a LIBOR Period in progress, Borrower shall, if requested by Bank, promptly pay any interest which had accrued prior to
such request and the date of such request shall be deemed to be the last day of the term of the LIBOR Period; and 
 (ii) No
LIBOR Period may be designated thereafter until Bank determines that such would be practical. 

  
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 12. Additional Costs. Borrower shall pay to Bank from time to time, upon Bank’s
request, such amounts as Bank reasonably determines are needed to compensate Bank for any costs it incurred which are attributable to Bank having made or maintained a LIBOR Option Advance or to Bank’s obligation to make a LIBOR Option Advance,
or any reduction in any amount receivable by Bank hereunder with respect to any LIBOR Option or such obligation (such increases in costs and reductions in amounts receivable being herein called “Additional Costs”), to the extent resulting
from any Regulatory Developments, which (i) change the basis of taxation of any amounts payable to Bank hereunder with respect to taxation of any amounts payable to Bank hereunder with respect to any LIBOR Option Advance (other than taxes
imposed on the overall net income of Bank for any LIBOR Option Advance by the jurisdiction where Bank is headquartered or the jurisdiction where Bank extends the LIBOR Option Advance; (ii) impose or modify any reserve, special deposit, or
similar requirements relating to any extensions of credit or other assets of, or any deposits with or other liabilities of, Bank (including any LIBOR Option Advance or any deposits referred to in the definition of LIBOR); or (iii) impose any
other condition affecting this Addendum (or any of such extension of credit or liabilities). Bank shall notify Borrower of any event occurring after the date hereof which entitles Bank to compensation pursuant to this paragraph as promptly as
practicable after it obtains knowledge thereof and determines to request such compensation. Determinations by Bank for purposes of this paragraph, shall be conclusive, provided that such determinations are made on a reasonable basis. 

13. Legal Effect. Except as specifically modified hereby, all of the terms and conditions of the Loan Agreement remain in full
force and effect. This Addendum completely amends and restates that certain Amended and Restated LIBOR Addendum to Amended and Restated Loan and Security Agreement among Bank and Borrower dated as of July 11, 2008. 

[Balance of Page Intentionally Left Blank] 

  
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 IN WITNESS WHEREOF, the parties have agreed to the foregoing as of the date first set forth
above. 
  

									
	SANTARUS, INC.	 		 	COMERICA BANK
					
	By:	 	 /s/ Debra P. Crawford
	 		 	By:	 	 /s/ Gary Reagan

					
	Title:	 	 SVP & CFO
	 		 	Title:	 	 SVP

 [Signature Page to Second Amended and Restated LIBOR Addendum to Amended and Restated Loan and
Security Agreement]Amendment No. 1 to Arena's Amended and Restated Severance Benefit Plan

 Exhibit 10.1 
 AMENDMENT NO. 1 TO 
 ARENA PHARMACEUTICALS, INC. 

AMENDED AND RESTATED SEVERANCE BENEFIT PLAN 
 The Arena Pharmaceuticals, Inc., Amended and Restated Severance Benefit Plan, originally effective on January 20, 2006, and amended and restated on December 30, 2008 (as amended, the
“Plan ”), is hereby further amended as of February 10, 2012, by this Amendment No. 1 as follows: 

Exhibit A of the Plan is deleted and replaced with Exhibit A to this Amendment No. 1. 

To record the adoption of this Amendment No. 1, Arena Pharmaceuticals, Inc., has caused its duly authorized officer to execute the same
this 13th day of February 2012. 
  

	
	 Arena Pharmaceuticals, Inc.

	
	 /s/ Jack Lief

	Jack Lief
	President and Chief Executive Officer

 EXHIBIT A 

 

			
	 PARTICIPANT:
	  	SEVERANCE PERIOD (IN MONTHS):
		
	 JACK LIEF
	  	18
		
	 DOMINIC BEHAN
	  	18
		
	 STEVEN SPECTOR
	  	18
		
	 WILLIAM SHANAHAN
	  	12
		
	 ROBERT HOFFMAN
	  	12

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