Document:

Consent to Assignment Agreement

 Exhibit 10.14 
 CONSENT TO ASSIGNMENT AGREEMENT 
 This Consent to Assignment
Agreement (this “Consent”), dated for reference purposes August 29, 2008, is made by R.B. INCOME PROPERTIES, a California limited partnership, (“Landlord”), to VERUS PHARMACEUTICALS, INC., a Delaware
corporation (“Assignor”), and ZOGENIX, INC., a Delaware corporation (“Assignee”). 

R E C I T A L S : 

A. Landlord and Assignor entered into that certain Office Lease dated as of February 2, 2005, as amended by that certain First
Amendment to Lease dated August 28,2008 (collectively, the “Lease”), whereby Landlord leased to Assignor and Assignor leased from Landlord approximately 12,929 rentable (12,415 usable) square feet of space commonly known as Suite 200
(the “Premises”) and located on the second floor of the building (the “Building”) located at 12671 High Bluff Drive, San Diego, California. 
 B. Assignor desires to assign to Assignee (effective on September 1, 2008), all of its right, title, and interest in, to and under the Lease pursuant to the provisions of that certain Assignment and
Assumption of Lease dated as of August 29, 2008, between Assignor and Assignee (the “Assignment”), a copy of which Assignment is attached hereto as Exhibit A and incorporated by reference herein. 

C. Assignor and Assignee desire to obtain Landlord’s consent to the Assignment and Landlord is willing to consent to the Assignment
on the following terms and conditions. 
 A G R E E M E N T :

 1. Consent; Assumption and No Release. Subject to the terms and conditions of this Consent, effective as of
September 1, 2008 (the “Effective Date”), Landlord hereby consents to the Assignment on the terms of this Consent. Assignee does hereby expressly assume and agree to be bound by and to perform and comply with, for the benefit of
Landlord, each and every obligation of the Tenant under the Lease and the obligations of Assignee under the Assignment. Notwithstanding the Assignment or Landlord’s consent thereto, Assignor shall remain fully liable for the payment of rents
and for the performance of all other obligations of the Tenant under the Lease. 
 2. Subsequent Assignments. This
Consent shall not constitute a consent to any subsequent subletting or assignment and shall not relieve Assignee or any person claiming under or through Assignee of the obligation to obtain the consent of Landlord, pursuant to Article 13 of
the Lease, to any future assignment or sublease. Notwithstanding the foregoing, Landlord may consent to subsequent sublettings and assignments of the Lease without notifying Assignor or anyone else liable under the Lease and without obtaining their
consent and such action shall not relieve such persons from liability. 
  

 -1- 

 3. Default under the Lease. In the event of any default of Assignee under the
Lease, Landlord may proceed directly against Assignee, any guarantors or anyone else liable under the Lease without first exhausting Landlord’s remedies against any other person or entity liable thereon to Landlord. 

4. Letter of Credit. Assignee shall obtain and deliver to Landlord on or before the Effective Date of this Consent the
Replacement Letter of Credit required under Section 5 of the Assignment. Assignee shall cooperate with Assignor to have Landlord cancel Assignor’s Letter of Credit return same to the issuer. 

5. Effectiveness of Consent. The effectiveness this Consent is subject to and conditioned upon (i) the full execution
and delivery by and among the parties of the Assignment and this Consent on or before the Effective Date of this Consent; and (ii) the delivery to Landlord of the replacement Letter of Credit required pursuant to Section 5 of the
Assignment, in form satisfactory to Landlord, on or before the Effective Date. 
 6. Brokerage Commission.
Assignor and Assignee covenant and agree that under no circumstances shall Landlord be liable for any brokerage commission or other charge or expense in connection with the Assignment and Assignor and Assignee agree to protect, defend, indemnify and
hold Landlord harmless from the same and from any cost or expense (including but not limited to attorneys’ fees) incurred by Landlord in resisting any claim for any such brokerage commission. 

7. No Waiver. Except as explicitly set forth herein, nothing contained herein shall be deemed or construed to modify,
waive, impair or affect any of the covenants, agreements, terms, provisions or conditions contained in the Lease. In addition, the acceptance of rents by Landlord from Assignee or anyone else liable under the Lease shall not be deemed a waiver by
Landlord of any provisions of the Lease. 
 8. Binding Effect. This Consent shall not be effective and the
Assignment shall not be valid or binding on Landlord unless and until a fully executed original counterpart of the Assignment and this Consent are delivered to Landlord. 
 9. Counterparts. This Consent may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute but one and the
same instrument. 
 10. Capitalized Terms. All initial capitalized terms not otherwise defined in this Consent
shall have the meanings set forth in the Lease. In the event of any conflict between the Assignment and this Consent, the provisions of this Consent shall control. 
 [Signature page immediately follows.] 
  

 -2- 

 IN WITNESS WHEREOF, Landlord, Assignor and Assignee have caused their duly authorized
representatives to execute this Consent as of the date first above written. 
  

			
	“Assignee”:
	
	ZOGENIX, INC.,
	a Delaware corporation
	By:	 	 /s/ David Nassif

	Name:	 	 David Nassif

	Its:	 	 CFO

		
	By:	 	  

	Name:	 	  

	Its:	 	  

 

			
	“Assignor”:
	
	VERUS PHARMACEUTICALS, INC.,
	a Delaware corporation
	By:	 	 /s/ Richard G. Vincent

	Name:	 	 Richard G. Vincent

	Its:	 	 CFO

		
	By:	 	 /s/ Robert W. Keith

	Name:	 	 Robert W. Keith

	Its:	 	 CEO

 

					
	“Landlord”:	 	
	
	 R.B. INCOME PROPERTIES, a California limited
 partnership

		
	By:	 	RBI PROPERTY MANAGEMENT, LLC, a California limited liability company, as General Partner
		 	By:	 	 /s/ THOMAS G. BLAKE

		 		 	THOMAS G. BLAKE, President

  

 -3- 

 EXHIBIT A 
 THE ASSIGNMENT 
 [ATTACHED] 

 

 -1- 

 ASSIGNMENT AND ASSUMPTION OF LEASE 

This Assignment and Assumption of Lease (this “Assignment”), dated for reference purposes August 29, 2008, is made by and
between VERUS PHARMACEUTICALS, INC., a Delaware corporation (“Assignor”), and ZOGENIX, INC., a Delaware corporation (“Assignee”). 
 R E C I T A L S : 

A. Assignor is the tenant under that certain Office Lease dated as of February 2, 2005, as amended by that certain First Amendment
to Lease dated August 28, 2008 (collectively, the “Lease”), between R.B. INCOME PROPERTIES, a California limited partnership (“Landlord”), as landlord, and Assignor, as tenant, for approximately 12,929 rentable (12,415
usable) square feet of space commonly known as Suite 200 (the “Premises”), located on the second floor of that certain office building located at 12671 High Bluff Drive, San Diego, California (the “Building”). 

B. Assignor desires to assign its right, title and interest in, to and under the Lease and the Premises to Assignee, and Assignee desires
to accept such assignment upon and subject to all of the terms and conditions hereinafter set forth. 
 A G
R E E M E N T : 
 1. Assignment and Assumption. Subject to the
terms and conditions of this Assignment, effective as of September 1, 2008 (the “Effective Date”), Assignor hereby assigns to Assignee all of its right, title and interest in, to and under the Lease and the Premises (including all of
Assignor’s right, title, and interest in and to any prepaid rents as have been paid by Assignor pursuant to the Lease), and Assignee hereby accepts such assignment, assumes all of Assignor’s obligations under the Lease, agrees to be bound
by all of the provisions thereof and to perform all of the obligations of the tenant thereunder from and after the effective date hereof. Such assignment and assumption is made upon, and is subject to, all of the terms, conditions and provisions of
this Assignment. 
 2. Effectiveness Contingent Upon Landlord’s Consent. Assignor and Assignee acknowledge and agree
that, pursuant to the terms of the Lease, Landlord’s consent is required prior to any assignment of the Lease. Assignor and Assignee expressly acknowledge and agree that the effectiveness this Assignment is subject to and conditioned upon
(i) the full execution and delivery by and among the parties of that certain Consent to Assignment Agreement (the “Consent”) on or before the Effective Date, and (ii) the delivery to Landlord of the replacement Letter of Credit
required pursuant to Section 5 below. 
 3. Condition of Premises. The Premises shall be delivered by Assignor to
Assignee in “As Is” condition with all “FF&E” (as that term in defined in Section 4, below) and all other leasehold improvements located thereon, collectively for a total purchase price of One Dollar ($1.00).

  

 -1- 

 4. Furniture, Fixtures, and Equipment. Notwithstanding anything to the contrary
contained herein, Assignor and Assignee shall agree upon which furniture, fixtures, cabinets, book shelves, appliances, and equipment currently existing in the Premises (the “FF&E”), shall be transferred to Assignee from Assignor in
fee (without any liens, or other encumbrances) concurrently with the execution and delivery hereof. 
 5. Security
Deposit. Assignee acknowledges that Assignor has deposited with Landlord pursuant to Section 4.05 of the Lease as security for the performance by Assignor of its obligations under the Lease a Letter of Credit (as defined in the Lease). As a
condition to the effectiveness of this Assignment, Assignee shall obtain and deliver to Landlord on or before the Effective Date a replacement letter of credit (“Replacement Letter of Credit”) in the amount and on the other terms and
conditions required under Section 4.05 of the Lease. Assignee shall cooperate with Assignor to have Landlord cancel Assignor’s Letter of Credit return same to the issuer. 

6. Payment of Base Rent. Assignee shall not be required to pay the Base Rent required to be paid under the Lease until
December 1, 2008. Upon execution of this Assignment, Assignor will pre-pay to Landlord the Base Rent required to be paid under the Lease for the months of September, October and November 2008. 

7. Payment of Assignee’s Existing Base Rent. Upon execution of this Assignment, Assignor agrees to pay the portion of
Assignee’s existing base rent obligation per the attached Side Letter Agreement attached hereto as Exhibit A. 
 8.
Further Assurances. Assignor and Assignee hereby covenant that each will, at any time and from time to time upon request by the other, and without the assumption of any additional liability thereby, execute and deliver such further documents
and do such further acts as such party may reasonably request in order to fully effect the purpose of this Assignment. 
 9.
Enforcement by Landlord. The provisions of this Assignment shall inure to the benefit of and be enforceable by Landlord. 

10. Successors. The provisions of this Assignment shall be binding upon, and shall inure to the benefit of, each of the parties
hereto and to their respective successors, transferees and assigns. 
 11. Counterparts. This Assignment may be executed
in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute but one and the same agreement. 
  

 -2- 

 12. Governing Law. This Assignment shall be governed by and construed in accordance
with California law. 
 13. Entire Agreement. This Assignment is the entire agreement between the parties hereto with
respect to the subject matter hereof and supersedes all prior agreements between the parties hereto with respect thereto. This Assignment may not be altered, amended, changed, terminated or modified in any respect or particular, unless the same
shall be in writing and signed by the party to be charged and unless such amendment has been approved in writing by Landlord. 

14. Headings. The headings of the paragraphs of this Assignment are inserted solely for convenience of reference and are not a
part of and are not intended to govern, limit or aid in the construction of any terms or provision hereof. 
 IN WITNESS
WHEREOF, Assignor and Assignee have caused their duly authorized representatives to execute this Assignment effective as of the date first above written. 

 

			
	“ASSIGNOR”
	
	VERUS PHARMACEUTICALS, INC.,
	a Delaware corporation
	By:	 	 /s/ Robert W. Keith

	Name:	 	Robert W. Keith
	Its:	 	President & Chief Operating Officer
		
	By:	 	 /s/ Richard G. Vincent

	Name:	 	Richard G. Vincent
	Its:	 	Chief Financial Officer
	
	“ASSIGNEE”
	
	ZOGENIX, INC.,
	a Delaware corporation
	By:	 	 /s/ David Nassif

	Name:	 	 David Nassif

	Its:	 	 CFO

		
	By:	 	  

	Name:	 	  

	Its:	 	  

 

 -3- 

 EXHIBIT A 
 SIDE LETTER AGREEMENT 
 [ATTACHED] 

 August 29, 2008 
 Mr. David Nassif 
 Executive VP & Chief Financial Officer 

Zogenix, Inc. 
 11682 El Camino Real, Suite 320

 San Diego CA 92130 
 Re: Side Letter
Agreement (the “Side Letter”) by and between Verus Pharmaceuticals, Inc., a Delaware corporation (“Verus”), and Zogenix, Inc., a Delaware corporation (“Zogenix”) 
 Dear Mr. Nassif: 
 Reference is made to the Assignment and Assumption of Lease by and between
Verus and Zogenix dated August 29, 2008 (the “Assignment”). Capitalized terms used but not otherwise defined herein shall have the meaning given such terms in the Assignment. 
 A. In accordance with Section 7 of the Assignment, Verus and Zogenix hereby agree as follows: 
 1. Zogenix shall make earnest and good faith efforts to sublet or otherwise assign or transfer (“Transfer”) Zogenix obligations for base rent pursuant to the Office sublease dated as of
March 20, 2007 between TBA Entertainment Corporation, as landlord, and Zogenix, as tenant, for approximately 4,193 rentable square feet of space commonly known as Suite 320, located on the third floor of that certain office building located at
11682 El Camino Real, San Diego, California 92130 (the “Zogenix Lease”). 
 2. In the event that Zogenix is unable to
Transfer its obligations for base rent under the Zogenix Lease on or before February 1, March 1 or April 1, 2009, Verus shall pay a portion of Zogenix base rent in the amount of Fourteen Thousand Eight Hundred Ninety Nine Dollars
and Eighty-Three ($14,899.83) (each, a “Payment”) no later than the last day of each such calendar month during which a Transfer has not concluded. 
 3. Verus’ obligation for Payment is expressly conditioned upon Zogenix performance of its obligation set forth in Section A(l) hereof. 

4. Verus’ obligation for Payment shall terminate concurrently with Zogenix Transfer of its base rent obligations under the Zogenix
Lease at any time during the period commencing on February 1, 2009 and concluding on April 30, 2009. In the event a Transfer is concluded within a month, Verus shall only be obligated to pay a pro-rated portion of the Payment for such
month. 
 5. Notwithstanding anything else herein to the contrary, in no circumstance shall Verus have any obligation for
Payment prior to February 1, 2009 or on or after May 1, 2009. 

 B. In accordance with Section 4 of the Assignment, Verus and Zogenix hereby agree as follows:

 1. Except for those items set forth on Exhibit 1 to this Side Letter (“Verus FF&E”), all other furniture,
fixtures, cabinets, book shelves, appliances, and equipment currently existing on the Premises as of the effective date of the Assignment shall constitute FF&E and shall be transferred to Zogenix in accordance with the terms of the Assignment.

 2. Verus shall retain all right title and interest in and to the Verus FF&E. 

3. Zogenix agrees that the Verus FF&E shall be allowed to reside in the same space and location on and after the Assignment as prior
thereto, and shall be allowed to remain there during the term of Verus’ continued occupancy of the Premises after the Assignment and for a reasonable period of time thereafter. 
 If Zogenix agrees to the foregoing, please execute two counterparts of this Side Letter and return one fully executed counterpart to the undersigned. 

 

			
	Sincerely yours,	 	
		
	VERUS PHARMACEUTICALS, INC.	 	
		
	 /s/ Richard Vincent
	 	
	Richard Vincent	 	
	Chief Financial Officer	 	
		
	AGREED AND ACCEPTED BY:	 	
		
	ZOGENIX, INC.	 	
		
	 /s/ David Nassif
	 	
	 David Nassif
	 	
	 Executive VP & Chief Financial Officer
	 	

  

 2 

 SCHEDULE 1 
 Verus F,F&E - Excluded Assets Listing 
 The information is provided pursuant to the
Assignment and Assumption of Lease Agreement between Verus and Zogenix. 
  

					
	 DESCRIPTION
	  	 LOCATION
	  	 QUANTITY

	 IT Rack and all related equipment contained therein
	  	IT room	  	1
			
	 Any desktop computers and peripheral equipment contained in the suite (other than the Board room)
	  	IT room and certain offices / cubes	  	Various
			
	 HP Laser Jet (4), Kyocera FS-7028M (1) and Brother MFC (2) printer / copy / fax machines and adjoining printer
cabinets (2)
	  	Various locations	  	7
			
	 Computer equipment, peripherals and items of a personal nature actively used by Verus / Meritage employees or consultants
(including desktop printers / fax machines / desktop lamps)
	  	Various offices or cubes	  	~15
Configurations
			
	 King Fire Proof Cabinets
	  	Supply room	  	2
			
	 InView Projectors
	  	IT room or Rich Vincent’s office	  	4
			
	 Small Refrigerator
	  	David Luo office	  	1
			
	 All Cell Phones, entire telephone system and 1 Polycom system (2 Polycom’s will be part of the Zogenix
purchase)
	  	Throughout office and conference rooms	  	Various
			
	 Folding table, microwave and toaster
	  	Kitchen	  	3
			
	 Rolling cart and flipchart
	  	Supply room	  	1 each

 CONFIDENTIAL 

 

 1 

 FIRST AMENDMENT TO LEASE 
 This FIRST AMENDMENT TO LEASE (“First Amendment”), dated for reference purposes and effective as of August 28, 2008 (the “Effective Date”), is made and entered into by and between
R.B. INCOME PROPERTIES, a California limited partnership (“Landlord”) and VERUS PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”), with reference to the following facts: 

RECITALS 

A. Landlord and Tenant are parties to that certain Office Lease dated February 2, 2005, as amended by that certain First Amendment
to Lease dated August 14, 2008 (collectively, the “Lease”) for the lease of those certain premises consisting of approximately 12,929 rentable square feet of space commonly known as Suite 200 (the “Premises”), located on the
second floor of that certain office building located at 12671 High Bluff Drive (the “Building”) located in the City of San Diego, County of San Diego, State of California, in that development commonly known as Del Mar Corporate Plaza (the
“Project”), which is more particularly described in the Lease. 
 B. Capitalized terms used in this First Amendment
not otherwise defined herein shall have the meaning as set forth in the Lease. 
 C. Landlord and Tenant now desire to amend the
Lease upon the terms and conditions set forth herein. 
 NOW THEREFORE, FOR VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS
HEREBY ACKNOWLEDGED, LANDLORD AND TENANT HEREBY AGREE TO AMEND THE LEASE AS FOLLOWS: 
 1. Deletion of Sections of Lease. Sections 3.04,
4.01 (b) and (c), 9.02 (to the extent relating to Building signage rights) and 19.03 be, and they hereby are deleted in their entirety and shall be of no further force or effect. 
 2. Scope of Amendment/Ratification. This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, This First
Amendment may not be amended or modified except by written instrument executed by all the parties hereto. The Lease, as modified by this First Amendment, supercedes any prior understanding, whether oral or written, by the parties, with respect to
the subject matter thereof. Except as specifically set forth herein, all other terms, covenants, agreements and provisions of the Lease shall continue and remain in full force and effect, and the Lease hereby is in all respects ratified and
confirmed. In the event of any conflict between this First Amendment and the Lease, the terms and of this First Amendment shall control and shall be paramount and the Lease shall be construed accordingly. 

3. Counterparts. This First Amendment may be executed in counterparts, and when all counterpart documents are executed, the counterparts shall
constitute a single binding instrument. 
 [Balance of page intentionally left blank] 
  

 -1- 

 IN WITNESS WHEREOF, the parties have executed this First Amendment as of the date first
above-written. 
  

									
	“Landlord”	 	“Tenant”
		
	 R. B. INCOME PROPERTIES, a California
 limited partnership
	 	 VERUS PHARMACEUTICALS, INC.,
 a California corporation

				
	By:	  	 RBI PROPERTY MANAGEMENT, LLC,
 a Delaware limited liability company, as General Partner
	 	 By:
 Name:

Its:
	 	 /s/ Robert W . Keith
 Robert W . Keith
 President & Chief Operating Officer

		  		 		 		 	
		  	By:	 	 /s/ Thomas G. Blake
	 	By:	 	 /s/ Richard G. Vincent

		  		 	THOMAS G. BLAKE, President	 	Name:	 	Richard G. Vincent
		  		 		 	Its:	 	Chief Financial Officer
		  		 		 		 	
		  		 		 		 	

  

 -2- 

  
 SECOND AMENDMENT TO
LEASE 
 This SECOND AMENDMENT TO LEASE (“Second Amendment”), dated for reference purposes and with an effective
date of December 1, 2009 (the “Effective Date”), is made and entered into by and between R.B. INCOME PROPERTIES, a California limited partnership (“Landlord”) and ZOGENIX, INC., a Delaware corporation (“Tenant”),
with reference to the following facts: 
 RECITALS 

A. Landlord and Verus Pharmaceuticals, Inc., a Delaware corporation (“Original Tenant”) are parties to that certain Office
Lease dated February 2, 2005, as amended by that certain First Amendment to Lease dated August 28, 2008 (collectively, the “Lease”) for the lease of those certain premises consisting of approximately 12,929 rentable square feet
of space commonly known as Suite 200 (the “Premises”), located on the second floor of that certain office building located at 12671 High Bluff Drive (the “Building”) located in the City of San Diego, County of San Diego, State of
California, in that development commonly known as Del Mar Corporate Plaza (the “Project”), which is more particularly described in the Lease. 
 B. Original Tenant and Tenant are parties to that certain Assignment and Assumption Agreement dated August 29, 2008 (“Assignment”), pursuant to which Original Tenant assigned all of its
right, title and interest in, to and under the Lease and the Premises to Tenant and Tenant accepted such assignment and agreed to perform all of the obligations under the Lease upon and subject to all of the terms and conditions set forth in the
Assignment, and Landlord consented to such Assignment pursuant to that certain Consent to Assignment Agreement dated August 29, 2008 (the “Consent”). 
 C. Capitalized terms used in this Second Amendment not otherwise defined herein shall have the meaning as set forth in the Lease. 
 D. Landlord and Tenant now desire to amend the Lease upon the terms and conditions set forth herein. 
 NOW THEREFORE, FOR VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, LANDLORD AND TENANT HEREBY AGREE TO AMEND THE LEASE AS FOLLOWS: 

1. Extension of Term of Lease. The Term of the Lease shall be extended to July 31, 2011; subject, however, to further
extension as provided in Section 7 of this Second Amendment. 
 2. Adjustment of Base Rent. From the Effective Date
of this Second Amendment through July 31, 2011, the Base Rent shall be $2.60 per square foot of Rentable Area per month or $31.20 per square foot of Rentable Area per year. December 2009 Base Rent paid by Tenant in excess of $33,615.40 shall be
credited against Base Rent due for January 2010. 

  
 -1-

  
 3. Common Area
Maintenance Expense. Tenant shall not be obligated to reimburse Landlord for any Operating Expenses or overage from the Effective Date of this Second Amendment through July 31, 2011. 

4. Acceptance of Premises. Tenant accepts the Premises in its “as is” condition, subject only to Landlord’s
maintenance obligations as specifically set forth in the Lease. 
 5. Right of First Offer to Lease Additional Space in
Project. The provisions of Section 19.03 of the Lease shall be applicable during the Term of the Lease, as extended by this Second Amendment 
 6. Security Deposit. Upon execution of this Second Amendment, Tenant shall deposit with Landlord a Security Deposit in the amount of $33,615.40. The Security Deposit shall secure Tenant’s
obligations under this Lease to pay rent and other monetary amounts, to maintain the Premises and repair damages thereto, to surrender the Premises to Landlord in clean and sanitary condition and repair upon termination of this Lease as required
pursuant to Article 18.15 of the Lease and to discharge Tenant’s other obligations hereunder. Landlord may use and commingle the Security Deposit with other funds of Landlord. If Tenant fails to perform Tenant’s obligations hereunder,
Landlord may, but without any obligation to do so, apply all or any portion of the Security Deposit towards fulfillment of Tenant’s unperformed obligations after giving notice to Tenant of Landlord’s intentions, the reason for such
application, and documentation or other evidence supporting Landlord’s decision. If Landlord does so apply any portion of the Security Deposit, Tenant, shall immediately pay Landlord a sufficient amount in cash to restore the Security Deposit
to the full original amount. In the event that Landlord shall expend the same in order to cure Tenant’s default hereunder, Tenant’s failure to forthwith remit to Landlord a sufficient amount in cash to restore the Security Deposit to the
original sum deposited within five (5) days after Tenant’s receipt of notice from Landlord that such amounts have been so expended shall constitute an Event of Default. The Security Deposit shall be held by Landlord without liability for
interest. Upon termination of this Lease, if Tenant has then performed all of Tenant’s obligations hereunder, Landlord shall return the Security Deposit to Tenant within 15 business days. If Landlord sells or otherwise transfers Landlord’s
rights or interest under this Lease, Landlord may deliver the Security Deposit to the transferee, whereupon Landlord shall be released from any further liability to Tenant with respect to the Security Deposit. The Letter of Credit delivered to
Landlord in accordance with Section 4.05 of the Lease shall, upon payment by Tenant of the Security Deposit required by this Section 6, be released and delivered to Tenant by Landlord; provided Tenant is not in default under the Lease
beyond any applicable cure period. 
 7. Option to Extend Term. Tenant shall have the option to extend the Term of this
Lease for two (2) additional periods of three (3) years each (individually a “Premises Option” and collectively the “Premises Options”). The period of a Premises Option is referred to herein as the “Option
Term.” Tenant shall have no right or interest to exercise a Premises Option unless: (a) Tenant gives the Landlord written notice of its intent to exercise the Premises Option no earlier than seven (7) months and no later than six
(6) months prior to the end of the Term, or any prior extension thereof (the “Extension Notice”); (b) at the time the Extension Notice is given, Tenant is not in default of any of the terms or conditions under this Lease beyond
any applicable cure period, nor are there any conditions which with the passage of time could result in a default by Tenant at any time; (c) Tenant has not been in default beyond any applicable cure period in the performance of any of its
obligations under this Lease more than two (2) times prior to the date the Extension Notice is given; and (d) (i) Tenant has not filed, nor sought protection, under any bankruptcy statute, (ii) Tenant has not failed to obtain a
vacation from any involuntary bankruptcy proceeding within sixty (60) days of such 

  
 -2-

 
filing, and (iii) Tenant has not defaulted or there are no events which may cause a default under any of Tenant’s debt or indenture obligations. Annual Base Rent during the Option Term
shall be as set forth in Section 8 below. Time is of the essence with respect to Tenant’s exercise of the Premises Options. Tenants’ failure to exactly comply with any of the time or other requirements herein, shall cause the Premises
Options to automatically expire and, in such event, this Lease shall terminate upon the expiration of the Term. The option to extend the Term pursuant hereto for the Option Terms shall be personal to Tenant and shall not be exercisable by or for the
benefit of any assignee, subtenant or other transferee of Tenant. 
 8. Base Rent During Option Term. 

(a) During the first year of each Option Term, if it occurs, Tenant shall pay to Landlord Base Rent equal to “Market Rent” (as
defined below) for the Premises determined as of the commencement date of such Option Term adjusted annually during the Option Term as provided below in this Section 8. As used herein, “Market Rent” shall mean the price that a ready
and willing tenant would pay, at commencement of the Option Term, as monthly base rent to a ready and willing landlord of similar space in the geographical area of San Diego County known as Del Mar Heights if such office space were offered for lease
on the open market for a reasonable period of time and be the product of the fair market annual rental rate per rentable square foot multiplied by the Rentable Area of the Premises (as set forth in the Basic Lease Information), determined as
follows: (a) as mutually agreed by Landlord and Tenant within ten (10) days of Landlord’s delivery to Tenant of Landlord’s opinion of the Market Rent for the first year of the Option Term (“Landlord Rent Notice”, which
shall be delivered to Tenant within ten (10) days of receipt of Tenant’s written Extension Notice; or (b) in the event that Landlord and Tenant are unable to so agree, the Market Rent shall be determined by concurrent appraisals
pursuant to Section 8(b) below. In determining Market Rent, appraisers shall take into account the duration of the Option Term, the quality, condition and prestige of the Building and Premises (as tenant improvements are maintained as required
by the terms and conditions of this Lease), recent monthly rental rates and annual base rent escalations for buildings of similar size and location imputed to the commencement of the Option Term, condition and quality of comparable tenant
improvements in buildings of similar quality and location and all relevant economic terms of this Lease, including free rent and other economic inducements, it being the intent that Market Rent, as so determined, should reflect the total economic
package which would be offered at the time of commencement of the Option Term to a new tenant for the Premises, or substantially similar space in a building of similar quality, condition, and location and with similar tenant improvements under a
lease with substantially the same terms and provisions as the applicable terms and provisions of this Lease (“Market for Similar Space”) without discounting the rent for the creditworthiness of the Tenant or for the cost of real estate
leasing commissions. Landlord’s Rent Notice, and any determination of Market Rent by appraisal as described herein, shall also set forth the market annual base rent escalation rate then prevailing in the relevant marketplace, which shall be
used for purposes of determining Base Rent adjustments during the Option Term. 
 (b) Market Rent Appraisal Procedure.

 (i) If Tenant rejects the Market Rent proposed by Landlord in Landlord’s Rent Notice, Landlord and Tenant shall attempt
to agree in good faith upon a single appraiser (the “Mutual Appraiser”) not later than five (5) days after the Landlord receives notice of Tenant’s rejection of Landlord’s proposed Market Rent (“Tenant’s Rejection
Notice”), which date of receipt shall be within ten (10) days of Landlord’s delivery of Landlord’s Rent Notice. If Landlord and Tenant are unable to agree upon a Mutual Appraiser within such time

  
 -3-

 
period, then Landlord and Tenant shall each appoint one appraiser not later than ten (10) days after Landlord’s receipt of Tenant’s Rejection Notice. Within five (5) days
thereafter, the two appointed appraisers shall appoint a third appraiser (the “Additional Appraiser”). Landlord and Tenant shall instruct the appraiser(s) to complete the determination of the Market Rent not later than fifteen
(15) days after all appraisers have been appointed. 
 (ii) If either Landlord or Tenant fails to appoint its appraiser
within the prescribed time period, the single appraiser appointed within the prescribed time period shall determine the Market Rent of the Premises for the first year of the Option Term. If both parties fail to appoint appraisers within the
prescribed time periods, then the first appraiser thereafter selected by a party shall determine the Market Rent of the Premises for the first year of the Option Term. 
 (iii) Landlord and tenant shall each bear the cost of its own appraiser (including any single appraiser appointed in accordance with clause (ii) above) and the parties shall share equally the cost of
the Mutual Appraiser or the Additional Appraiser, if applicable. All appraisers so designated herein shall have at least five (5) years’ experience in the appraisal of similar office buildings in the San Diego area and shall be members of
MAI or similar professional organizations of substantially equivalent or better reputation. 
 (iv) If a single Mutual
Appraiser is chosen, then such Mutual Appraiser shall determine the Market Rent of the Premises for the first year of the Option Term. Otherwise, the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average
of two (2) of the three (3) appraisals which are closest (or identical) in amount, and the third appraisal shall be disregarded. In the event that no two (2) appraisals are closer in amount than any other two (2) appraisals, then
the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of all thee (3) appraisals. Notwithstanding anything else contained herein, the Market Rent as so determined shall not be less than the Basic
Annual Rent payable during the year preceding the Option Term. 
 (c) The Base Rent shall be adjusted annually during any Option
Term by the escalation rate determined as a function of the Market Rent determination pursuant to Section 8(b) above. 
 9.
Tenant’s Parking Entitlements. During the Term of the Lease as extended, Tenant shall be entitled to parking entitlements in the Project in accordance with Section 1.06 of the Lease. 

10. Fitness Center. During the Term of the Lease as extended, Tenant’s employees shall be entitled to use the Fitness Center
in the Project in accordance with the terms of Section 19.02 (Exhibit “G” of the Lease). 
 11. Amendment of
Section 9.02. On the Effective Date of this Second Amendment, Section 9.02 of the Lease is amended by substituting in complete replacement thereof the following: 

“9.02. Signs. Landlord, at its sole cost and expense, shall furnish Tenant with initial Building Standard suite
signage and Building Standard directory signage on the Building’s lobby directory board. The cost of any modifications to the initial signage shall be paid by Tenant. Tenant shall not install any sign on the Premises or Building unless Tenant
receives prior written approval from Landlord for such sign; provided, 

  
 -4-

 
however, that Tenant may, on a non-exclusive basis, install at its expense an identifying sign on the top portion of the north end of the west elevation of the Building in a style and size and in
a location reasonably acceptable to Landlord, so long as such sign conforms to all laws, statutes, regulations, restrictions and zoning, is designed by a designer acceptable to Landlord and is first approved by all required governmental agencies and
by Landlord. Building signage rights provided to the Tenant in this Section 9.02 are personal to Zogenix, Inc., and cannot be transferred in connection with any Transfer of any interest in the Lease except when such transfer is to an affiliated
transferee and the rights to the entire Premises are transferred. Any sign placed by Tenant on the Premises, the Building or the Project, shall be installed at Tenant’s sole cost and expense and shall contain only Tenant’s name, and no
advertising matter. Tenant shall remove any such sign upon termination of this Lease and shall return the affected portion of the Premises, the Building or the Project, as applicable, to their condition prior to the placement or erection of said
sign.” 
 12. Tenant Improvements. The existing tenant improvements installed by Tenant, as well as the existing
cabling in the Premises, shall remain in the Premises during the Term of the Lease, as extended. The existing personal property in the Premises owned by Tenant shall remain the property of Tenant during the Term of this Lease. 

13. Broker. Tenant warrants that it has had no dealings with any real estate broker or agent, other than Pat Rohan of
Cushman & Wakefield of San Diego, Inc. (“Broker”), representing Tenant, in connection with the negotiation of this Second Amendment to Lease, and that it knows of no other real estate broker or agent who is entitled to any
commission or finder’s fee in connection with this Lease. Landlord shall pay any and all commissions to Tenant’s Broker and Landlord’s broker pursuant to a separate agreement. Tenant agrees to indemnify and hold harmless Landlord from
and against any and all claims, demands, losses, liabilities, lawsuits, judgments, costs and expenses (including, without limitation, attorneys’ fees and costs) with respect to any leasing commission or equivalent compensation alleged to be
owing on account of Tenant’s dealings with any real estate broker or agent other than Broker. 
 14. Scope of
Amendment/Ratification. This Second Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. This Second Amendment may not be amended or modified except by written
instrument executed by all the parties hereto. The Lease, as modified by this Second Amendment, supercedes any prior understanding, whether oral or written, by the parties, with respect to the subject matter thereof. Except as specifically set forth
herein, all other terms, covenants, agreements and provisions of the Lease shall continue and remain in full force and effect, and the Lease hereby is in all respects ratified and confirmed. In the event of any conflict between this Second Amendment
and the Lease, the terms and of this Second Amendment shall control and shall be paramount and the Lease shall be construed accordingly. 
 15. Counterparts. This Second Amendment may be executed in counterparts, and when all counterpart documents are executed, the counterparts shall constitute a single binding instrument. 

  
 -5-

  
 IN WITNESS WHEREOF,
the parties have executed this Second Amendment as of the date first above-written. 
  

									
	“Landlord”	 	“Tenant”
		
	R. B. INCOME PROPERTIES, a California limited partnership	 	ZOGENIX, INC., a Delaware corporation 
				
	By:	 	RBI PROPERTY MANAGEMENT,	 	 By:
	 	
 

		 	LLC, a Delaware limited liability company, as General Partner	 	 Name:
	 	 David Nassif

		 		 		 	 Its:
	 	Chief Financial Officer
		 	By:	 	
 

	 		 	
		 		 	THOMAS G. BLAKE, President	 		 	

  
 -6-

 OFFICE LEASE 
 DEL MAR CORPORATE PLAZA 
 R.B. INCOME PROPERTIES, 

a California limited partnership 
 as Landlord, 
 and 

VERUS PHARMACEUTICALS, INC., 
 a Delaware corporation 
 as Tenant 

February 2, 2005 
  

					
	Verus Lease v06	  		  	February 2, 2005 (8:51 pm)

 BASIC LEASE INFORMATION 

OFFICE LEASE 
  

			
	Lease Date:	  	February 2, 2005
		
	Landlord:	  	R.B. Income Properties, a California limited partnership
		
	Managing Agent:	  	Coast Income Properties, Inc., a California corporation; or such other entity designated in writing by Landlord
		
	Landlord’s Address:	  	c/o Coast Income Properties, Inc. 4350 La Jolla Village Drive, Suite 150 San Diego, California 92122
		
	Tenant:	  	Verus Pharmaceuticals, Inc., a Delaware corporation
		
	Tenant’s Address:	  	12730 High Bluff Drive, Suite 410, San Diego, California 92130 prior to occupancy; Premises thereafter.
		
	Legal Description of Land:	  	See Exhibit “A”
		
	Premises:	  	The entire second floor of a three-story building located at 12671 High Bluff Drive, San Diego, California (the “Building”), in that development commonly known as Del
Mar Corporate Plaza (the “Project”). The Building is sometimes herein referred to as Building “B” of the Project. The Premises are shown on Exhibit B attached hereto.
		
	Rentable Area of the Premises:	  	Approximately 12,929 rentable square feet.
		
	Rentable Area of the Building:	  	Approximately 39,439 rentable square feet.
		
	Rentable Area of the Project:	  	Approximately 73,492 rentable square feet.
		
	Usable Area of the Premises:	  	Approximately 12,415 usable square feet.
		
	Usable Area of the Building:	  	Approximately 36,524 usable square feet.

  

					
	Verus Lease v06	  	-i-	  	February 2, 2005 (8:51 pm)

			
	Permitted Uses:	  	General business office purposes, and any other legally permitted use consistent with the character and image of the Building and Project.
		
	Term:	  	Five (5) years, subject to an option to extend pursuant to Section 3.04
		
	Term Commencement Date:	  	April 11, 2005, subject to adjustment as provided in Section 3.01.

 Base Rent: 
  

					
	 Lease Year
	  	 Base Rent
	  	 Annual Base Rent

	1	  	$2.70 per rentable sq. ft./month*	  	$32.40 per rentable sq. ft./month*
	2	  	$2.78 per rentable sq. ft./month	  	$33.36 per rentable sq. ft./month
	3	  	$2.86 per rentable sq. ft./month	  	$34.32 per rentable sq. ft./month
	4	  	$2.95 per rentable sq. ft./month	  	$35.40 per rentable sq. ft./month
	5	  	$3.04 per rentable sq. ft./month	  	$36.48 per rentable sq. ft./month**

  

	*	Base Rent for Lease Year 1 is subject to the rental abatement provisions of Section 19.01 of Exhibit G. 

	**	Base Rent for Lease Year 5 is subject to the proration provisions of Section 4.01. 

 

			
	Tenant’s Project Share of Project Operating Expenses:	  	17.59%
		
	Tenant’s Building Share of Building Operating Expenses:	  	32.78%
		
	Base Calendar Year:	  	2005
		
	Security:	  	A letter of credit in the amount of Two Hundred Nine Thousand Four Hundred Fifty Dollars ($209,450) (See Section 4.05).
		
	Broker(s):	  	Grubb & Ellis/BRE Commercial, representing Landlord, and San Diego Corporate Real Estate Advisors, representing Tenant.
		
	Broker’s Fee or Commission, if any, paid by:	  	R.B. Income Properties, a California limited partnership, pursuant to a separate agreement.
		
	Business Hours:	  	7:00 a.m. to 6:00 p.m., Monday through Friday, and 9:00 a.m. to 1:00 p.m. Saturdays, excluding certain holidays, being those days designated as Federal Holidays pursuant to 5
U.S.C. §6103 (“Holidays”).

  

					
	Verus Lease v06	  	-ii-	  	February 2, 2005 (8:51 pm)

 The foregoing Basic Lease Information is hereby incorporated into and made a part of this Lease. Each
reference in this Lease to any of the terms above shall mean the respective information hereinabove set forth and shall be construed to incorporate all of the terms provided under the particular paragraph pertaining to such information. In the event
of any conflict between any Basic Lease Information and the Lease, the latter shall control. 
 LANDLORD:
                                         
                                         
                                         
         TENANT: 
  

					
	Verus Lease v06	  	-iii-	  	February 2, 2005 (8:51 pm)

  

											
	R. B. INCOME PROPERTIES, a California limited partnership	 		 	VERUS PHARMACEUTICALS, INC., a California corporation
	By:	 	RBI PROPERTY MANAGEMENT, LLC, a California limited liability company, as General Partner	 		 	
						
		 	By:	 	/s/ Thomas G. Blake	 		 	By:	 	/s/ Robert W. Keith
		 		 	THOMAS G. BLAKE, President	 		 	Name:	 	Robert W. Keith
		 		 		 		 	Its:	 	President & Chief Operating Officer
						
		 		 		 		 	By:	 	/s/ Richard G. Vincent
		 		 		 		 	Name:	 	Richard G. Vincent
		 		 		 		 	Its:	 	Chief Financial Officer

  

					
	Verus Lease v06	  	-iv-	  	February 2, 2005 (8:51 pm)

  
 OFFICE LEASE

 THIS LEASE (“Lease”), dated for reference purpose and effective as of February 2, 2005, (the “Lease
Date”) is made and entered into by and between R.B. INCOME PROPERTIES, a California limited partnership (“Landlord”) and VERUS PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”) for space in the building located at
12671 High Bluff Drive (the “Building”) located in the City of San Diego, County of San Diego, State of California, in that development commonly known as Del Mar Corporate Plaza (the “Project”); described more particularly on the
Legal Description, attached hereto as Exhibit A, shall be upon the terms and conditions contained hereinafter. 
 1. PREMISES 

1.01. Premises. Landlord leases to Tenant, subject to the provisions of this Lease, the Premises in the Building as set forth in the Basic
Lease Information, the usable space of which is shown on the Building Floor Plans, attached hereto as Exhibit B. The rentable square feet of the Premises, Building and Project shall be as set forth in the Basic Lease Information. By occupying the
Premises, Tenant shall be deemed to accept the same in their condition existing as of the date of such occupancy and subject to all applicable municipal, county, state and federal statutes, laws, ordinances, including zoning ordinances, and
regulations governing and relating to the Tenant’s use, occupancy or possession of the Premises. Tenant acknowledges that the only warranties and representations Landlord has made in connection with the physical condition of the Premises or
Tenant’s use of the same upon which Tenant has relied directly or indirectly for any purpose are those expressly provided in this Lease. 
 1.02. Exhibits. The following Exhibits are attached to this Lease after the signatures and by reference thereto are incorporated herein: 

Exhibit A — Legal Description 
 Exhibit B — Site Plan and Building Floor Plan 
 Exhibit C — Preliminary
Plans 
 Exhibit D — Work Letter 
 Exhibit E — Rules and Regulations 
 Exhibit F — Letter of Credit

 Exhibit G — Additional Lease Provisions 
 1.03. Common Areas. Tenant shall have, as appurtenant to the Premises and subject to reasonable nondiscriminatory rules and regulations from time to time made by Landlord of which Tenant is given
reasonable notice, the right to the use of the following in common: 
 (a) Building Common Area. The common
stairways and access ways, lobbies, entrances, stairs, elevators, maintenance and utility service areas and any passageways thereto, and the common pipes, ducts, conduits, wires and appurtenant equipment serving the Premises (the “Building
Common Areas”); 
 (b) Project Common Area. The common walkways, sidewalks, landscape areas, parking spaces
and driveways necessary for access to the Project and parking spaces, as well as the fitness center and locker room facilities (the “Project Common Areas”); and 

(c) Parking Area. The common Project parking lot area (the “Parking Area” and together with the Building Common
Areas and the Project Common Areas, the “Common Areas”). 

  

					
	Verus Lease v06	  	-0-	  	February 2, 2005 (8:51 pm)

  
 1.04. Landlord’s
Reserved Rights in Common Areas and Project. Landlord reserves full control over the Building and Project to the extent not inconsistent with Tenant’s quiet enjoyment and use of, and access to, the Premises and the other rights of Tenant as
granted by this Lease. This reservation includes but is not limited to right of Landlord, to grant easements and licenses to others and the right to maintain or establish ownerships of the Building separate from fee title to the land and other
improvement in the Project. Tenant shall, should Landlord so request, promptly join with Landlord in execution of such documents as may be appropriate to assist Landlord to implement any such action provided Tenant need not execute any document
which is of a nature wherein liability is created in Tenant or if, by reason of the terms of such document, Tenant may be deprived of the quiet enjoyment and use of, and access to, the Premises, and the other rights of Tenant, as granted by this
Lease. Landlord reserves the right from time to time: (a) to install, use, maintain, repair, relocate and replace any pipes, ducts, conduits, wires and appurtenant meters and equipment for service to the Building above the ceiling surfaces,
below the floor surfaces, within the walls and in the central core areas; (b) to change the lines of the lot on which the Project stands (“Lot”) and to redesign and restripe the parking facilities around the Building and make other
reasonable changes and grant other rights thereto, including without limitation, the granting of easements, rights of way and rights of ingress and egress and similar rights to users of parcels in or adjacent to the parcel on which the Building is
situated; and (c) to alter or relocate any Common Areas or other facilities; provided that no such action shall have a material adverse effect on Tenant’s quiet enjoyment and use of, and access to, the Premises and the other rights of
Tenant as granted by this Lease. Landlord reserves the right to grant exclusive use to portions of the Parking Area to specific tenants. 
 1.05. Rentable/Useable Area. As used in this Lease, the terms “Rentable Area” and “Useable Area” shall mean the rentable area and useable area of the Premises, Building and Project and
shall be the square footage designated in the Basic Lease Information. The Annual Base Rent and Operating Expenses for the Premises are not solely and directly attributable to the actual rentable or useable area of the Premises, Building or Project
and in the event that it is determined that the actual rentable or useable area of the Premises, Building or Project is different from the square footages set forth in the Basic Lease Information, no modification shall be made to the Base Rent or
Operating Expenses set forth in the Basic Lease Information. 
 1.06. Tenant’s Parking Entitlements. Entitlements. Tenant
shall be entitled to the non-exclusive use, without charge, during the Term and any extension thereof, of a pro rata number of parking spaces in the area of the Project designated as the Parking Area for the Project as shown on Exhibit B attached
hereto. Landlord shall have no responsibility for policing or otherwise enforcing parking rights in the Project. Tenant shall be entitled to two (2) reserved non-covered parking spaces in the Parking Area on the west side of the Building in a
location to be agreed upon by Landlord and Tenant as shown on Exhibit B, or otherwise agreed upon by Landlord and Tenant. 

1.07. Condition of Premises. Landlord warrants that, as of the Lease Date, the electrical, plumbing and mechanical systems in the
Building are in good working order. Tenant shall have the right to notify Landlord of any such deferred maintenance of the electrical, plumbing and mechanical systems within sixty (60) days following the Term Commencement Date and Landlord will
be responsible for repairs thereof within fifteen (15) days following Tenant’s timely delivery to Landlord of such notice. Landlord warrants that, as of the Lease Date, to Landlord’s current actual knowledge, there are no Hazardous
Materials (as defined below) located at the Building in amounts that violate Health and Safety Laws (as defined 

  

					
	Verus Lease v06	  	-1-	  	February 2, 2005 (8:51 pm)

 
below) or other applicable laws and that there are no material defects in the construction of the Building and that the improvements in the Building constructed by Landlord and the common Areas
in the Project comply with the requirements of the Americans With Disabilities Act as of such date. Tenant shall have the right to notify Landlord of any such non-compliance, and Landlord will be responsible for bringing such facilities into
compliance. Except as otherwise set forth in this Section 1.07, Landlord makes no representations and warranties regarding the condition of the improvement in the Premises or their fitness for Tenant’s intended use. Except as specifically
provided in Article 2 below, Landlord shall have no obligation to make any improvements to the Premises and, to the maximum extent permitted by law, Tenant hereby agrees to accept the Premises in their “as-is” condition. 

2.TENANT’S IMPROVEMENTS 

2.01. Plans. For the purposes of this Article 2, capitalized terms not otherwise defined elsewhere in this Lease shall have the meanings
set forth in Exhibit “D” attached hereto (the “Work Letter”). 
 (a) Preliminary Plans.
Landlord and Tenant have approved the preliminary plans and outline specifications identified in Exhibit C (“Preliminary Plans”) , for the construction by Landlord of Tenant’s Improvement Work (as defined in the Work Letter).

 (b) Final Plans. Landlord shall have final plans and specifications (“Final Plans”) prepared by
Facility Solutions (“Landlord’s Designer”), which Final Plans shall be substantially in conformity with the Preliminary Plans. “Tenant’s Improvement Plans” shall hereinafter mean Preliminary Plans and, when prepared and
approved by Landlord and Tenant, Final Plans. Preparation and approval of the Final Plans and any changes requested by Tenant thereto shall be made only in accordance with the Work Letter. 

2.02. Construction. Landlord shall cause the Tenant’s Improvement Work in the Premises to be constructed substantially in accordance
with the Tenant’s Improvement Plans and the Work Letter. Landlord shall construct Tenant’s Improvement Work (as defined in the Work Letter) in accordance with the approved Tenant’s Improvement Plans, all in accordance with the
provisions of the Work Letter. Costs and expenses of such work, including the costs of the Tenant’s Improvement Work, fees of Landlord’s Designer, building permit fees, the fee of Landlord’s Contractor (as defined in the Work Letter)
and all other costs and expenses chargeable to Landlord pursuant to Exhibit “D” to this Lease (collectively the “Tenant Improvement Costs”), shall be paid by Landlord, except as otherwise provided in the Work Letter. 

2.03. Failure to Complete Construction. Tenant’s only remedies for Landlord’s failure to cause Substantial Completion (as
defined in the Work Letter) of the Tenant’s Improvement Work and the Landlord’s Work (as each term is defined in the Work Letter, and collectively, the “Improvements”) to occur on or before the Estimated Improvement Completion
Date (as defined in the Work Letter), as extended pursuant to the Work Letter, shall be as set forth in this Section 2.03. If Substantial Completion of the Improvements has not occurred on or before the date which is two (2) months
following the Scheduled Improvement Completion Date, as hereinafter defined (the “Termination Option Date”), Tenant shall have the option to terminate this Lease by the delivery to Landlord of written notice within ten (10) days after
the Termination Option Date or any one month anniversary of the Termination Option Date until Substantial Completion of the Improvements occurs. Tenant shall not be entitled to terminate the Lease for any delay in completion of the Premises prior to
the Termination Option Date. If 

  

					
	Verus Lease v06	  	-2-	  	February 2, 2005 (8:51 pm)

 
it appears that Substantial Completion of the Improvements may not occur on or before the Estimated Improvement Completion Date, as extended pursuant to the Work Letter (the “Scheduled
Improvement Completion Date”), due to Tenant Caused Delays (as defined in the Work Letter) Landlord shall be entitled to incur overtime charges (“Overtime Charges”) with Landlord’s Contractor and shall use commercially reasonable
efforts to accelerate the completion of Tenant’s Improvement Work to meet the Scheduled Improvement Completion Date. 
 3. TERM 

3.01. Commencement of Term. The Lease shall be for the Term set forth in the Basic Lease Information, commencing upon Term Commencement
Date. The Term Commencement Date shall be the later of; (i) the date set forth in the Basic Lease Provisions, (ii) the date Landlord delivers to Tenant written notice that the Premises are ready for occupancy by Tenant, or (iii) the
date the Premises would have been ready for occupancy had there been no Tenant Delays as set forth in the Work Letter. 
 3.02.
Early Occupancy. Subject to the availability of the Premises, Tenant shall be permitted access to the Premises thirty (30 days prior to the Term Commencement Date for the purpose of coordinating the installation of its furniture, trade fixtures,
equipment and technology systems in the Premises, the period between the date Tenant commences to enter into the Premises for such purposes and the Term Commencement Date being hereinafter referred to as the “Early Occupancy Period.” Such
occupancy of the Premises shall be subject to all the provisions of this Lease, except that Tenant shall not be required to pay Monthly Base Rent or Operating Expenses for the Early Occupancy Period; provided, however, that Tenant shall have
provided Landlord proof of Tenant’s insurance as set forth in Section 5.05; and provided further that Tenant shall pay or reimburse Landlord for all utilities and services to the Premises during the Early Occupancy Period. All furniture,
materials, work, installations, equipment and decorations of any nature brought upon or installed in the Premises prior to the Term Commencement Date shall be at Tenant’s sole risk. Neither Landlord nor any party acting on Landlord’s
behalf shall be responsible for any damage or loss or destruction of such items brought to or installed in the Premises prior to the Term Commencement Date. Prior to the Term Commencement Date, Landlord shall make available to Tenant reasonable
access to any floor of the Building that Tenant may reasonably require to core drill and pull cable. 
 3.03. Notice of Lease
Dates. Within ten (10) days after Landlord’s written request, Tenant shall execute a written confirmation of the commencement of the Term and expiration date of the Term in a form provided by Landlord. Such a notice shall be binding upon
Tenant unless Tenant objects thereto in writing within such ten (10) day period. 
 3.04 Option to Extend Term. Tenant
shall have the option to extend the Term of this Lease for one (1) additional period of five (5) years (the “Premises Option”). The period of the Premises Option is referred to herein as the “Option Term”. Tenant shall
have no right or interest to exercise the Premises Option unless: (a) Tenant gives the Landlord written notice of its intent to exercise the Premises Option no earlier than three hundred thirty (330) days and no later than two hundred
seventy (270) days prior to the end of the Term (the “Extension Notice”); (b) at the time the Extension Notice is given and on the date of the commencement of the Option Term, Tenant is not in default of any of the terms or
conditions under this Lease beyond any applicable cure period, nor are there any conditions which with the passage of time could result in a default by Tenant at any time; (c) Tenant has not been in default in the performance of any of its
obligations under this Lease more than two (2) times prior to the date 

  

					
	Verus Lease v06	  	-3-	  	February 2, 2005 (8:51 pm)

 
the Extension Notice is given; (d) (I) Tenant has not filed, nor sought protection under any bankruptcy statute, and (ii) Tenant has not failed to obtain a vacation from any
involuntary bankruptcy proceeding within sixty (60) days of such filing; and (e) (I) Tenant can establish by delivering to Landlord evidence reasonably acceptable to Landlord that the Tenant meets, as of the date the Extension Notice
is given, and has continually met during the two (2) calendar quarters preceding the date the Extension Notice is given, the Tenant’s Financial Conditions as defined in Section 4.05, or (ii) the Letter of Credit provided for in
Section 4.05 is posted with Landlord and then effective as of the date the Extension Notice is given and on the first day of the Option Term. Annual Base Rent during the Option Term shall be as set forth in Section 4.01(b) below. Time is
of the essence with respect to Tenant’s exercise of the Premises Option. Tenants’ failure to exactly comply with any of the time or other requirements herein, shall cause the Premises Option to automatically expire and, in such event, this
Lease shall terminate upon the expiration of the Term. The option to extend the Term pursuant hereto for the Option Term shall be personal to Tenant and shall not be exercisable by or for the benefit of any assignee, subtenant or other transferee of
Tenant, except the Option may be transferred to an Affiliate Transferee to whom all of the interest of Tenant in the Lease has been transferred pursuant to Section 13.01. 
 3.05. Days. Except for the Rent payment requirements of Sections 4.01 and 4.02, when time periods of three (3) days or less are provided in this Lease, unless “calendar days” is expressly
stated, such time periods are to be calculated such that “days” shall mean business days, regardless of whether “business days” is expressly stated. 
 4. RENT 
 4.01. Base Rent. 

(a) Initial Term. The Annual Base Rent shall be the amount set forth in the Basic Lease Information payable in equal
monthly installments of Monthly Base Rent as set forth in the Basic Lease Information. Tenant shall pay the Monthly Base Rent to Landlord in advance upon the first day of each calendar month of the Term, at Landlord’s address or at such other
place designated by Landlord in a written notice delivered to Tenant, without any prior demand therefor and without any deduction, abatement or setoff whatsoever, in lawful money of the United States of America. If the Term shall commence or end on
a day other than the first day of a calendar month, then Tenant shall pay, upon each of the Term Commencement Date and the first day of the last calendar month of the Term, a portion of the Monthly Base Rent, prorated on a per diem basis, with
respect to the portions of the fractional calendar month included in the Term. Upon executing this Lease, Tenant shall pay the first full month’s installment of the Monthly Base Rent owing hereunder. 

(b) Option Term. During the first year of the Option Term, if it occurs, Tenant shall pay to Landlord Base Rent equal to
“Market Rent” (as defined below) for the Premises determined as of the commencement date of such Option Term adjusted annually during the Option Term in accordance with Section 4.03 below. As used herein, “Market Rent” shall
mean the price that a ready and willing tenant would pay, at commencement of the Option Term, as monthly base rent to a ready and willing landlord of similar space in the geographical area of San Diego County known as Del Mar Heights if such office
space were offered for lease on the open market for a reasonable period of time and be the product of the fair market annual rental rate per rentable square foot multiplied by the Rentable Area of the Premises (as set forth in the Basic Lease
Information), determined as follows: (a) as mutually agreed by Landlord and Tenant within ten (10) days of Landlord’s delivery to Tenant of Landlord’s opinion of the Market Rent for the first year of the Option Term
(“Landlord Rent Notice”, which shall be 

  

					
	Verus Lease v06	  	-4-	  	February 2, 2005 (8:51 pm)

 
delivered to Tenant within ten (10) days of receipt of Tenant’s written Extension Notice; or (b) in the event that Landlord and Tenant are unable to so agree, the Market Rent shall
be determined by concurrent appraisals pursuant to Section 4.01(c) below. In determining Market Rent, appraisers shall take into account the duration of the Option Term, the quality, condition and prestige of the Building and Premises (as
tenant improvements are maintained as required by the terms and conditions of this Lease), recent monthly rental rates and annual base rent escalations for buildings of similar size and location imputed to the commencement of the Option Term,
condition and quality of comparable tenant improvements in buildings of similar quality and location and all relevant economic terms of this Lease, including free rent and other economic inducements, it being the intent that Market Rent, as so
determined, should reflect the total economic package which would be offered at the time of commencement of the Option Term to a new tenant for the Premises, or substantially similar space in a building of similar quality, condition, and location
and with similar tenant improvements under a lease with substantially the same terms and provisions as the applicable terms and provisions of this Lease (“Market for Similar Space”) without discounting the rent for the creditworthiness of
the Tenant or for the cost of real estate leasing commissions. Landlord’s Rent Notice, and any determination of Market Rent by appraisal as described herein, shall also set forth the market annual base rent escalation rate then prevailing in
the relevant marketplace, which shall be used for purposes of determining Base Rent adjustments during the Option Term in accordance with Section 4.03 below. 

(c) Market Rent Appraisal Procedure. 

(i) If Tenant rejects the Market Rent proposed by Landlord in Landlord’s Rent Notice, Landlord and Tenant shall
attempt to agree in good faith upon a single appraiser (the “Mutual Appraiser”) not later than five (5) days after the Landlord receives notice of Tenant’s rejection of Landlord’s proposed Market Rent (“Tenant’s
Rejection Notice”), which date of receipt shall be within ten (10) days of Landlord’s delivery of Landlord’s Rent Notice. If Landlord and Tenant are unable to agree upon a Mutual Appraiser within such time period, then Landlord
and Tenant shall each appoint one appraiser not later than ten (10) days after Landlord’s receipt of Tenant’s Rejection Notice. Within five (5) days thereafter, the two appointed appraisers shall appoint a third appraiser (the
“Additional Appraiser”). Landlord and Tenant shall instruct the appraiser(s) to complete the determination of the Market Rent not later than fifteen (15) days after all appraisers have been appointed. 

(ii) If either Landlord or Tenant fails to appoint its appraiser within the prescribed time period, the single appraiser
appointed within the prescribed time period shall determine the Market Rent of the Premises for the first year of the Option Term. If both parties fail to appoint appraisers within the prescribed time periods, then the first appraiser thereafter
selected by a party shall determine the Market Rent of the Premises for the first year of the Option Term. 

(iii) Landlord and tenant shall each bear the cost of its own appraiser (including any single appraiser appointed in
accordance with clause (ii) above) and the parties shall share equally the cost of the Mutual Appraiser or the Additional Appraiser, if applicable. All appraisers so designated herein shall have at least five (5) years’ experience in
the appraisal of similar office buildings in the San Diego area and shall be members of MAI or similar professional organizations of substantially equivalent or better reputation. 

  

					
	Verus Lease v06	  	-5-	  	February 2, 2005 (8:51 pm)

  
 (iv) If
a single Mutual Appraiser is chosen, then such Mutual Appraiser shall determine the Market Rent of the Premises for the first year of the Option Term. Otherwise, the Market Rent of the Premises for the first year of the Option Term shall be the
arithmetic average of two (2) of the three (3) appraisals which are closest (or identical) in amount, and the third appraisal shall be disregarded. In the event that no two (2) appraisals are closer in amount than any other two
(2) appraisals, then the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of all three (3) appraisals. Notwithstanding anything else contained herein, the Market Rent as so determined shall
not be less than the Basic Annual Rent payable during the year preceding the Option Term. 
 4.02. Additional Rent. All charges
required to be paid by Tenant hereunder, including without limitation, payments for Operating Expenses and any other amounts payable under this Lease, shall be considered additional rent for the purposes of this Lease (“Additional Rent”),
and Tenant shall pay Additional Rent as provided in Section 6.05. “Rent” shall mean Base Rent and Additional Rent. 
 4.03. Escalation. The Base Rent shall be adjusted during the initial Term as provided in the Basic Lease Information. The Base Rent shall be adjusted annually during any Option Term by the escalation rate
determined as a function of the Market Rent determination pursuant to Section 4.01(b). 
 4.04. Late Payment. If any
installment of Rent is not paid promptly within five (5) business days of the first of the month or otherwise when due, the unpaid amounts shall bear interest at the interest rate set forth in Section 12.02(e) from the date due to the date
of payment. In addition, Tenant acknowledges that the late payment of any installment of Rent will cause Landlord to incur certain costs and expenses not contemplated under this Lease, the exact amount of which are extremely difficult or impractical
to fix. These costs and expenses will include, without limitation, administrative and collection costs and processing and accounting expenses. Therefore, if any installment of Rent is not received by Landlord from Tenant when the installment is due,
Tenant shall immediately pay to Landlord a charge for administration, collection and accounting expenses equal to ten percent (10%) of the amount of such delinquent amounts due in addition to the installment of Rent then owing with interest at
the interest rate set forth in Section 12.02(e), regardless of whether or not a notice of default or notice of termination has been given by Landlord. Landlord and Tenant agree that the late payment charge represents a reasonable estimate of
Landlord’s costs and expenses and is fair compensation to Landlord for its loss suffered by Tenant’s nonpayment of any amounts when due and payable pursuant to this Lease. This provision shall not relieve Tenant from payment of Rent at the
time and in the manner herein specified. 
 4.05. Security. To secure Tenant’s obligations under this Lease to pay Rent and
other monetary amounts, to maintain the Premises and repair damages thereto, to surrender the Premises to Landlord in clean and sanitary condition and repair upon termination of this Lease as required pursuant to Section 18.15 below and to
discharge Tenant’s other obligations hereunder, Tenant shall deliver to Landlord, concurrently with Tenant’s execution of this Lease, a letter of credit in the amount of Two Hundred Nine Thousand Four Hundred Fifty Dollars ($209,450)
(“Letter of Credit”). Said Letter of Credit shall be substantially in the form and of the substance of Exhibit F attached hereto, and issued by Silicon Valley Bank, or another financial institution reasonably acceptable to Landlord. Tenant
shall replace the Letter of Credit with another Letter of Credit that meets the requirements set forth above for at least thirty (30) days before the Letter of Credit expires. Upon any default by Tenant which has not been cured within the
applicable time period after any notice required by this Lease, including specifically but without limitation Tenant’s obligation to pay Rent or abide by any of its obligations under this Lease, Landlord shall be entitled to draw upon said
Letter of Credit in the amount of the default(s) by the issuance of Landlord’s sole written demand to the issuing 

  

					
	Verus Lease v06	  	-6-	  	February 2, 2005 (8:51 pm)

 
financial institution. Any such draw shall be without waiver of any rights Landlord may have under this Lease or at law or in equity as a result of the default. If any portion of the Letter of
Credit is drawn after a default by Tenant, Tenant shall, within seven (7) business days after written demand by Landlord restore the Letter of Credit to its original amount. Provided that (a) Tenant is not in default in the performance of
any of its obligations under this Lease on the date which is four (4) years after the Effective Date of this Lease (“Letter of Credit Termination Date”) and (b) Tenant can establish by delivering to Landlord evidence reasonably
acceptable to Landlord that Tenant has as of the Letter of Credit Termination Date, and has continually had during the two (2) calendar quarters preceding the Letter of Credit Termination Date, liquid assets consisting of cash or cash
equivalents (bonds and publicly traded securities) reserves of not less than Five Million Dollars ($5,000,000) and a ratio of current assets to current liabilities, as determined by generally accepted accounting principles, consistently applied, of
not less than two-to-one (“Tenant’s Financial Requirement”), subject, however, to Tenant delivering to Landlord the Security Deposit described below in this Section 4.05, the obligation of Tenant to maintain the Letter of Credit
shall terminate as of the Letter of Credit Termination Date. As a condition to the termination of Tenant’s obligation to maintain the Letter of Credit, Tenant shall deposit with Landlord on or before the Letter of Credit Termination Date an
amount equal to the Base Rent payable for the month which contains the Letter of Credit Termination Date (“Security Deposit”). The Security Deposit when delivered shall secure Tenant’s obligations under the Lease secured by the Letter
of Credit. Landlord may use and commingle the Security Deposit with other funds of Landlord. If Tenant fails to perform Tenant’s obligations hereunder, Landlord may, but without any obligation to do so, apply all or any portion of the Security
Deposit towards fulfillment of Tenant’s unperformed obligations. If Landlord does so apply any portion of the Security Deposit, Tenant, shall immediately pay Landlord a sufficient amount in cash to restore the Security Deposit to the full
original amount. In the event that Landlord shall expend the same in order to cure Tenant’s default hereunder, Tenant’s failure to forthwith remit to Landlord a sufficient amount in cash to restore the Security Deposit to the original sum
deposited within five (5) days after Tenant’s receipt of notice from Landlord that such amounts have been so expended shall constitute an Event of Default. The Security Deposit shall be held by Landlord without liability for interest on
the same. Upon termination of this Lease, if Tenant has then performed all of Tenant’s obligations hereunder, Landlord shall return the Security Deposit to Tenant. If Landlord sells or otherwise transfers Landlord’s rights or interest
under this Lease, Landlord may deliver the Security and Security Deposit to the transferee, whereupon Landlord shall be released from any further liability to Tenant with respect to the Security and Security Deposit. Notwithstanding anything to the
contrary contained in this Section 4.05, in the event the obligation of Tenant to maintain the Letter of Credit is terminated as provided above, if at any subsequent time during the Term of this Lease, including any extensions thereof, from and
after the Letter of Credit Termination Date, Tenant shall fail to maintain the Tenant’s Financial Requirement, Tenant shall immediately give written notice thereof to Landlord and cause a replacement letter of credit to be delivered to
Landlord, within ten (10)days after the date Tenant fails to meet the Tenant’s Financial Requirement, in the amount, and on the other terms of, the original Letter of Credit. 
 5. INSURANCE 
 5.01. Special Form Coverage. 

(a) At all times during the Term, Landlord shall procure and maintain in full force and effect with respect to the Project
(including the Building and the Tenant’s Improvement Work paid for by Landlord), a policy or policies of special form risk insurance (with extended coverage endorsement attached, including sprinkler, vandalism and malicious

  

					
	Verus Lease v06	  	-7-	  	February 2, 2005 (8:51 pm)

 
mischief coverage, and any other endorsements required by the holder of any fee or leasehold mortgage), naming Tenant as a loss payee, as its interest may appear, in an amount equal to one
hundred percent (100%) of the full insurance replacement value (replacement cost new, including debris removal, and demolition) thereof and any other insurance Landlord reasonably deems necessary, including, but not limited to, boiler and
machinery insurance. If the annual premiums charged Landlord for such casualty insurance exceed the standard premium rates because the nature of Tenant’s operations results in increased exposure, then Tenant shall, upon receipt of appropriate
premium invoices, reimburse Landlord for such increased amount. Landlord shall also, to the extent same is available on commercially reasonable terms and at commercially reasonable rates, keep and maintain, by endorsement to its special form
insurance or by a separate policy, rental abatement insurance insuring against abatement or loss of Rent in case of fire or other casualty insured against by a standard “special form” policy, in an amount at least equal to the amount of
the Rent payable by Tenant during one (1) year next ensuing, as reasonably determined by Landlord. Should Landlord determine that rental abatement insurance is not available on the foregoing terms, Landlord shall give written notice thereof to
Tenant within ten (10) days of the date such determination is made. 
 (b) At all times during the Term,
Tenant shall, at its expense, procure and maintain in full force and effect a similar policy of insurance, naming Landlord as a loss payee as to tenant improvements only, as its interest may appear, with respect to property of every description and
kind owned by Tenant upon the Premises or the Building, or for which Tenant is legally liable, including, without limitation, trade fixtures, furniture, equipment and other personal property, and all tenant improvements owned or installed by or on
behalf of Tenant (but not with respect to those owned constructed by and owned by Landlord and defined in the Work Letter as Tenant’s Improvement Work) insuring one hundred percent (100%) of the full replacement value of said property and
tenant improvements. Any policy proceeds shall be used for the repair and replacement of the property damaged or destroyed unless this Lease shall cease and terminate under the provisions on excessive damage or destruction set forth in
Section 10.04 below. Notwithstanding anything to the contrary contained in this Section 5.01, Tenant shall reimburse Landlord within fifteen (15) days after receipt by Tenant of an invoice therefor, for the cost of the insurance
provided in this Section 5.01 on any of Tenant’s Improvement Work in excess of Building standard improvements. 

5.02. Liability Coverage. Within fifteen (15) days after the execution of this Lease, Tenant shall provide Landlord with
certificates of insurance for all of Tenant’s insurance policies required hereunder so that Landlord may determine whether Tenant’s insurance policies are in such forms, amounts and are written by such insurance companies as required by
Landlord. Tenant shall, at its own cost and expense, keep and maintain in full force during the Term, a policy or policies of broad form commercial general liability insurance with and cross-liability endorsements (insuring Tenant’s
indemnification obligations under this Lease, including Section 5.09 hereof) written by an insurance company approved by Landlord in the form customary to the locality, insuring Tenant’s activities with respect to the Premises and/or
Building against loss, damage or liability for personal and bodily injury (including wrongful death) of any person and loss or damage to property occurring in, upon or about the Premises covering personal and bodily injury in the amounts of not less
than Two Million Dollars ($2,000,000) per person and Two Million Dollars ($2,000,000) per occurrence and covering property damage in the amount of not less than Two Million Dollars ($2,000,000) per occurrence. Landlord and the Managing Agent set
forth in the Basic Lease Information shall be named as an additional insured under such policies. Such insurance shall be with insurance companies with a Best rating classification of not less than A- and a financial rating classification not less
than XI and approved to do business in California. Such insurance shall have a deductible of no greater than Twenty-Five Thousand Dollars ($25,000). Tenant’s 

  

					
	Verus Lease v06	  	-8-	  	February 2, 2005 (8:51 pm)

 
obligations to carry the insurance set forth herein may be satisfied by coverage under a so-called blanket policy of broad form commercial general liability insurance with the same endorsements
and coverage for the Premises as described above, as well as coverage of other premises and properties of Tenant, or in which Tenant has some interest; provided, however, that Landlord and the Managing Agent set forth in the Basic Lease Information
shall be named as an additional insured, the coverage afforded Landlord shall not be reduced or diminished, and the requirements set forth in this Lease are otherwise satisfied. Landlord shall have the right to require that the aforementioned limits
of liability be increased to Three Million Dollars ($3,000,000) during any Option Term. 
 5.03. Worker’s Compensation
Insurance. Tenant shall, at its own cost and expense, keep and maintain in full force during the Term, a policy or policies of worker’s compensation insurance, in statutory amounts and limits, and employer’s liability insurance with limits
as follows: bodily injury each accident in the amount of not less than One Million Dollars ($1,000,000), bodily injury/disease each employee in an amount not less than One Million Dollars ($1,000,000), and a bodily injury/disease policy limit of not
less than One Million Dollars ($1,000,000). 
 5.04. Business Interruption/Rental Abatement Insurance. Tenant shall, at its own
cost and expense, keep and maintain in full force during the Term, a policy or policies of business interruption insurance and rental abatement insurance as Tenant may deem necessary or appropriate. 

5.05. Insurance Certificates. Tenant shall furnish to Landlord, no more than ten (10) days prior to the earlier of Tenant’s
occupancy of the Premises (as permitted by Section 3.02) or the Term Commencement Date of this Lease and thereafter no more than twenty (20) days prior to the expiration of each such policy, a certificate of insurance issued by the
insurance carrier of each policy of insurance carried by Tenant pursuant hereto. Said certificates shall expressly provide that such policies shall not be calculable or subject to reduction of coverage or otherwise be subject to modification except
after thirty (30) days’ prior written notice to the parties named as additional insureds in this Article 5; provided that such certificates may provide for cancellation for such policies due to non-payment of premiums upon twenty
(20) days’ prior written notice to the parties named as additional insureds in this Article 5. Landlord, its successors and assigns, and any nominee of Landlord holding any interest in the Premises, including without limitation, any ground
lessor and the holder of any fee or leasehold mortgage, shall be named as additional insureds under each such policy of insurance maintained by Tenant pursuant to this Lease (to be evidenced by the attached of an appropriate endorsement to the
certificate of insurance delivered by Tenant to Landlord pursuant to this Section). 
 5.06. Tenant’s Failure. If Tenant
fails to maintain any insurance required in this Lease, Tenant shall be liable for any loss or cost resulting from said failure. Notwithstanding the foregoing, Landlord may at Landlord’s sole discretion, but shall not be required to, procure
said insurance on Tenant’s behalf and charge Tenant the premium for such policies, together with an administration surcharge of fifteen percent (15%) of the premium for such policies paid by Landlord. This Section 5.06 shall not be
deemed to be a waiver of any of Landlord’s rights and remedies under any other section of this Lease. 
 5.07. Waiver of
Subrogation. Any policy or policies of fire, extended coverage or similar casualty insurance, which either party obtains in connection with the Premises, or Tenant’s personal property therein, shall, to the extent the same can be obtained
without unreasonable expense, include a clause or endorsement denying the insurer any rights of 

  

					
	Verus Lease v06	  	-9-	  	February 2, 2005 (8:51 pm)

 
subrogation against the other party to the extent rights have been waived by the insured prior to the occurrence of injury or loss. Landlord and Tenant waive any rights of recovery against the
other for injury or loss due to hazards covered by insurance containing such a waiver of subrogation clause or endorsement to the extent of the injury or loss covered thereby. 
 5.08. Tenant’s Property and Fixtures. Tenant shall assume the risk of damage to any furniture, equipment, machinery, goods, supplies or fixtures which are or remain the property of Tenant or as to
which Tenant retains the right of removal from the Premises. 
 5.09. Indemnification. 

(a) To the fullest extent permitted by law, Tenant covenants with Landlord that Landlord, Landlord’s agents and
employees shall not be liable for any damage or liability of any kind or for any injury to or death of persons, or damage to property of Tenant or any other person occurring from any cause whatsoever related to the use, improvement, occupancy or
enjoyment of the Premises by Tenant or any person thereon or holding under Tenant, and, subject to Section 5.07, Tenant shall indemnify protect, defend and hold Landlord, Landlord’s agents and employees, the Premises, Building, Lot and
Project, and Landlord’s related property, harmless from and against (i) any and all liability, fines, penalties, losses, damages, costs and expenses, demands, causes of action, claims or judgments (“Claims”) arising from or
relating to any injury to any person or persons or any damage to any property as a result of any accident or other occurrence during the Term occasioned in any way as a result of Tenant’s or Tenant’s officers, employees, agents, servants,
subtenants, concessionaires, licensees, contractors or invitees use, maintenance, occupation or operation of the Premises during the Term, (ii) all liens, claims and demands related to the use of the Premises and its facilities during the Term,
or any repairs, alterations or improvements which Tenant may make or cause to be made upon the Premises, and (iii) from and against all legal costs and charges, including attorneys’ fees, incurred in and about any of such matters and the
defense of any action arising out of the same or in discharging the Building, Project, Lot and Landlord’s related property or any part thereof from any and all liens, charges or judgments which may accrue or be placed thereon by reason of any
act or omission of the Tenant; provided, however, that Tenant shall not be required to indemnify Landlord for any damage or injury arising as a result of the gross negligence or willful misconduct of Landlord, Landlord’s agents or employees.

 (b) Landlord shall indemnify, defend and hold harmless Tenant, Tenant’s agents and employees from and
against all Claims for damage to property outside the Premises to the extent that such Claims result from the gross negligence or willful misconduct of Landlord and its agents and employees in connection with their activities in, on or about the
Project or the Building, except to the extent that such Claim (i) is for damage to Tenant’s Improvements or Tenant’s personal property, fixtures, furniture and equipment in the Premises and is covered by insurance that Tenant is
required to obtain under this Lease (or would have been covered, had Tenant carried the insurance required under this Lease) or (ii) results from the negligent acts, omissions or willful misconduct of Tenant Parties. 

5.10. Earthquake and Flood Insurance. In addition to any other insurance policies carried by Landlord in connection with the Project,
Landlord may, if requested by Landlord’s mortgage lender, elect to procure and maintain in full force and effect during the Term, with respect to the Project, a policy of earthquake/volcanic action and flood and/or surface water insurance,
including rental value insurance against abatement or loss of Rent in the case of damage or loss covered under such earthquake/volcanic and flood and/or surface water insurance, in an amount up to one hundred percent (100%) of the full
insurance replacement value (including debris removal and demolition) of the Project improvements. 

  

					
	Verus Lease v06	  	-10-	  	February 2, 2005 (8:51 pm)

  
 6. OPERATING EXPENSES 

6.01. Tenant’s Share. 
 (a) Tenant’s share of Building Operating Expenses (“Tenant’s Building Share”) is hereby mutually agreed to be that percentage set forth in the Basic Lease Information. Tenant shall pay
as Additional Rent Tenant’s Building Share of Building Operating Expenses for any calendar year after the Base Calendar Year to the extent that Building Operating Expenses for such calendar year exceed the Building Operating Expenses for the
Base Calendar Year. 
 (b) Tenant’s share of Project Operating Expenses (“Tenant’s Project
Share”) is hereby mutually agreed to be that percentage set forth in the Basic Lease Information. Tenant shall pay as Additional Rent Tenant’s Project Share of Project Operating Expenses for any calendar year after the Base Calendar Year
to the extent that Project Operating Expenses for such calendar year exceed the Project Operating Expenses for the Base Calendar Year. 
 6.02. Definition of Operating Expenses. 
 (a) “Building
Operating Expenses” shall include all expenses and costs of every kind and nature which Landlord shall pay or become obligated to pay because of or in connection with the ownership and operation of the Building, including, without limitation:
(i) all Impositions as set forth in Article 6; (ii) premiums for insurance maintained by Landlord pursuant to Article 5; (iii) wages, salaries and related expenses and benefits of all on-site employees, if any, and off-site employees,
if any, engaged in operation, maintenance and security of the Building to the extent such services relate to the Building; (iv) all supplies, materials, tool and equipment rental used in operation of the Building; (v) all maintenance and
repair, waste disposal, janitorial, security and service costs incurred in connection with the Building; (vi) a property management fee equal to three and one-half percent (3.5%) of the Base Rent of all tenants of the Building (the
“Management Fee”); (vii) legal and accounting expenses, including the cost of audits by certified public accountants; (viii) repairs, replacements and general maintenance of the Building (excluding those paid for by proceeds of
insurance or other parties and alterations attributable solely to tenants of the Building other than Tenant); (ix) all interior and exterior maintenance, repair and replacement costs, including, without limitation, service areas, elevators,
mechanical rooms, plumbing, heating, ventilating and air conditioning (“HVAC”) equipment and non-structural walls and roof (all to the extent related to the interior or exterior of the Building); (x) all other reasonable operating,
management and other expenses incurred by Landlord to the extent such expenses are incurred in connection with operation of the Building; and (xi) all charges for water and sewer services not separately metered by Tenant and used or consumed in
the Building; (xii) any other costs, levies or assessments resulting from statutes or regulations promulgated by any governmental authority in connection with the use or occupancy of the Building or the Premises; (xiii) personal property
taxes levied on or attributable to personal property used in connection with the Building; (xiv) outside consulting fees incurred directly attributable to the operation, management and maintenance of the Building; (xv) freight charges and
transportation services attributable to the operation and/or management of the Building; and (xvi) reasonable accounting, audit and verification fees. Building Operating Expenses shall not include electricity and gas, if any, delivered to the
Building, including Tenant’s Premises, which costs are Tenant’s proportionate or sole responsibility as further defined in Section 6.08. Notwithstanding the provisions of this Section 6.02, the following shall not be included
within Building Operating Expenses: 
 (i) Any depreciation on the Building or any improvements thereto;

  

					
	Verus Lease v06	  	-11-	  	February 2, 2005 (8:51 pm)

  
 (ii)
Costs incurred due to a violation by Landlord or any other tenant of the Building of any of the terms and conditions of this Lease or of any other lease relating to the Building; 

(iii) Any principal, interest, loan fees, legal expenses and other carrying costs related to any mortgage or deed of trust
and all rental and other amounts payable due under any ground or underlying lease related to the Building, unless such costs are directly attributable to a Tenant’s breach or default under this Lease; 

(iv) Real estate brokers’ leasing commissions or other real estate fees, attorneys fees, costs, expenses and
disbursements of any kind whatsoever incurred in connection with marketing space or leasing space to tenants or prospective tenants, including tenant improvement expenses. 

(v) Initial improvements or alterations to tenant spaces. 

(vi) The cost of providing any service directly to and paid directly by any tenant. 

(vii) Costs associated with: 
 (A) Operation of the business of the ownership of the Building or the Project or entity that constitutes Landlord or the Managing Agent set forth in the Basic Lease Information (or any other property
manager), as distinguished from the cost of Building operations; 
 (B) Landlord’s general corporate or
partnership overhead and general administrative expenses, including the salaries of management personnel other than those who are primarily engaged in the operation, maintenance, and repair of the Building, except to the extent that those costs and
expenses are included in the Management Fees; 
 (viii) Costs of: 

(A) Initial construction of the Building (including legal costs and professional consultants’ costs); or 

(B) Reconstruction of the Building pursuant to Article 10; 

(ix) Capital improvement costs related to the repair or replacement of the structural foundations, structural walls and
structural roof of the Building and capital improvement costs related to the replacement or addition of other capital components of the Building, except to the extent of a pro-rata share of the cost of replacing any such capital components required
to be replaced, determined based on the number of months then remaining in the Term of the Lease and an estimated useful life of such capital components; 

  

					
	Verus Lease v06	  	-12-	  	February 2, 2005 (8:51 pm)

  
 (x) All
expenses and costs of every kind and nature which Landlord shall pay or become obligated to pay because of or in connection with the ownership and operation of the other buildings in the Project or any surrounding property and supporting facilities,
which are included in Project Operating Expenses. 
 (xi) Legal, accounting, audit, verification and other
consulting fees relating to the ownership, as opposed to the operation, of the Building and the Project. 
 (xii)
Impositions levied on any other tenant’s improvements in the Building to the extent the cost of such tenant improvements is in material excess of the Building standard improvements. 

(xiii) Any and all costs of selling or exchanging the Building. 

(xiv) Costs incurred by Landlord for the repair of damage to the Building to the extent that Landlord is reimbursed by
insurance proceeds. 
 (xv) Attorneys’ fees and other costs incurred by Landlord to enforce the provisions
of any lease of space in the Building due to the violation by any tenant of the terms and conditions of such lease by any tenant of the Building. 
 (xvi) Tax penalties incurred as a result of Landlord’s negligence or inability or refusal to make payments when due. 

(xvii) Costs arising out of the presence of Hazardous Materials in or about the Building as of the Lease Date. 

(xviii) Utility costs for which any tenant directly contracts with the local public service company. 

(xix) Costs arising from the Landlord’s charitable or political contributions. 

(xx) Costs, other than those incurred in ordinary maintenance and insurance, for sculpture, paintings or other art
objects. 
 (xxi) Costs of any items to the extent Landlord receives reimbursement from insurance proceeds,
condemnation awards or a third party, including payments pursuant to such third party’s indemnification. 

(xxii) Insurance premiums to the extent of any refunds of those premiums. 

(xxiii) Entertainment, dining, or travel expenses that are (a) not directly related to the management or maintenance
of the Building or (b) in excess of reasonable and customary amounts. 
 (xxiv) Costs incurred in connection
with upgrading the Building to comply with disability, life, fire and safety codes, ordinances, statues or laws in effect as of the Lease Date, including, without limitation, the Americans with Disabilities Act, including any penalties or damages
incurred due to such non-compliance as of such date. 

  

					
	Verus Lease v06	  	-13-	  	February 2, 2005 (8:51 pm)

  
 (xxv)
Advertising and promotional expenditures. 
 (b) “Project Operating Expenses” shall include all
expenses and costs of every kind and nature which Landlord shall pay or become obligated to pay because of or in connection with the ownership and operation of the Project Common Areas and Parking Area, including, without limitation: (i) all
Impositions as set forth in Article 6; (ii) premiums for insurance maintained by Landlord pursuant to Article 5; (iii) wages, salaries and related expenses and benefits of all on-site employees, if any, and off-site employees, if any,
engaged in operation, maintenance and security of the Project Common Areas and Parking Area to the extent such services are for the Project; (iv) all supplies, materials, tool and equipment rental used in operation of the Project Common Areas
and Parking Area; (v) all maintenance and repair, waste disposal, janitorial, security and service costs incurred in connection with the Parking Area and the Project Common Area, including, without limitation, locker rooms and exercise
facilities; (vi) repairs, replacements and general maintenance of the Parking Area and the Project Common Area (excluding those paid for by proceeds of insurance or other parties and alterations attributable solely to tenants of the Project
other than Tenant); (vii) all other reasonable operating, management and other expenses incurred by Landlord in connection with operation of the Parking Area and the Project Common Areas; (vii) all charges for water, electrical, and sewer
services not separately metered by any tenant of the Project and used or consumed in the Parking Area or the Project Common Area; (ix) any other costs, levies or assessments resulting from statutes or regulations promulgated by any governmental
authority in connection with the use or occupancy of the Project; (xi) personal property taxes levied on or attributable to personal property used in connection with the Project Common Areas and Parking Area; (xii) freight charges and
transportation services to the extent attributable to the operation and/or management of the Project; and (xiii) reasonable accounting, audit, verification and other reasonable consulting fees. Project Operating Expenses shall not include
electricity and gas, if any, delivered to the Project, which costs are the responsibility of any tenant of the Project as further defined in Section 6.08. Notwithstanding the provisions of this Section 6.02, the following shall not be
included within Project Operating Expenses: 
 (i) Any depreciation on the Project Common Areas or Parking Area
or any improvements thereto; 
 (ii) Costs incurred due to violation by Landlord, or any other tenant of the
Project, of any of the terms and conditions of this Lease or of any other lease relating to the Project; 
 (iii)
Any principal, interest, loan fees, legal expenses, and other carrying costs related to any mortgage or deed of trust and all rental and other amounts payable under any ground or underlying lease related to the Project, unless such costs are
directly attributable to a Tenant’s breach or default under this Lease; 
 (iv) Real estate brokers’
leasing commissions or other real estate fees, attorneys fees, costs, expenses and disbursements of any kind whatsoever incurred in connection with marketing space or leasing space to tenants or prospective tenants, including tenant improvement
expenses. 
 (v) Initial improvements or alterations to tenant spaces. 

(vi) The cost of providing any service directly to and paid directly by any tenant. 

  

					
	Verus Lease v06	  	-14-	  	February 2, 2005 (8:51 pm)

  
 (vii)
Costs associated with: 
 (A) Operation of the business of the ownership of the Project or the Project or entity
that constitutes Landlord or the Managing Agent set forth in the Basic Lease Information (or any other property manager) as distinguished from the cost of Project operations; or 

(B) Landlord’s general corporate or partnership overhead and general administrative expenses, including the salaries
of management personnel other than those who are primarily engaged in the operation, maintenance, and repair of the Project Common Areas or Parking Area, except to the extent that those costs and expenses are included in the Management Fees.

 (viii) Costs of: 
 (A) Initial construction of the Project Common Areas, Parking Area or any building in the Project other than the Building, and other buildings leased to tenants (including legal costs and professional
consultants’ costs); 
 (B) Reconstruction of the Project Common Areas or Parking Area pursuant to Article
10. 
 (ix) Capital improvement costs related to the repair or replacement of the structural foundations,
structural walls and structural roof of the of the Project Common Area or Parking Area and capital improvement costs related to the replacement or addition of other capital components of the Project Common Area or Parking Area, except to the extent
of a pro-rata share of the cost of replacing any such capital components required to be replaced, determined based on the number of months then remaining in the Term of the Lease and an estimated useful life of such capital components. 

(x) All expenses and costs of every kind and nature which Landlord shall pay or become obligated to pay because of or in
connection with the ownership and operation of the other buildings in the Project, which are included in Building Operating Expenses. 
 (xi) Legal, accounting, audit, verification and other consulting fees relating to the ownership, as opposed to the operation, of the Building and the Project. 

(xii) Impositions levied on any other tenant’s improvements in the Building or the Project to the extent the cost of
such tenant improvements is in material excess of the Building standard improvements. 
 (xiii) Any and all costs
of selling or exchanging the Project. 
 (xvi) Tax penalties incurred as a result of Landlord’s negligence
or inability or refusal to make payments when due. 
 (xv) Attorneys’ fees and other costs incurred by
Landlord to enforce the provisions or any lease of space in the Project due to the violation by any tenant of the Project of the terms and conditions of such lease. 

  

					
	Verus Lease v06	  	-15-	  	February 2, 2005 (8:51 pm)

  
 (xvi)
Tax penalties incurred as a result of Landlord’s negligence or inability or refusal to make payments when due. 
 (xvii) Costs arising out of the presence of Hazardous Materials in or about the Project (including, without limitation, the ground water or soil of the Project) as of the Lease date. 

(xviii) Utility costs for which any tenant directly contracts with the local public service company. 

(xix) Costs arising from the Landlord’s charitable or political contributions. 

(xx) Costs, other than those incurred in ordinary maintenance and insurance, for sculpture, paintings or other art
objects. 
 (xxi) Costs of any items to the extent Landlord receives reimbursement from insurance proceeds,
condemnation awards or a third party, including payments pursuant to such third party’s indemnification. 

(xxii) Insurance premiums to the extent of any refunds of those premiums. 

(xxiii) Entertainment, dining, or travel expenses that are (a) not directly related to the management or maintenance
of the Building or (b) in excess of reasonable and customary amounts. 
 (xxiv) Costs incurred in connection
with upgrading the Building to comply with disability, life, fire and safety codes, ordinances, statues or laws in effect as of the Lease Date, including, without limitation, the Americans with Disabilities Act, including any penalties or damages
incurred due to such non-compliance as of such date. 
 (xxv) Advertising and promotional expenditures.

 (c) As used herein, “Operating Expenses” shall mean Building Operating Expenses or Project Operating
Expenses, as applicable. 
 6.03. Proration. Any Operating Expenses attributable to a period which falls only partially within
the Term shall be prorated between Landlord and Tenant so that Tenant shall pay only that proportion thereof which the part of such period within the Term bears to the entire period. 

6.04. Survival. Any such sum payable by Tenant which would not otherwise be due until after the date of the termination of this Lease,
shall, if the exact amount is uncertain at the time that this Lease terminates, be paid by Tenant to Landlord upon such termination in an amount to be determined by Landlord with an adjustment to be made once the exact amount is known. 

6.05. Estimated Payments. Prior to the commencement of each calendar year of the Term, Landlord shall estimate the Additional Rent
payable by Tenant pursuant to this provision and Tenant shall pay to Landlord on the first of each month in advance, one-twelfth (1/12) of Landlord’s estimated amount. After the end of each calendar year there shall be an

  

					
	Verus Lease v06	  	-16-	  	February 2, 2005 (8:51 pm)

 
adjustment made to account for any difference between the actual and the estimated Operating Expenses for the previous year. If Tenant has overpaid the amount of Additional Rent owing pursuant to
this provision, Landlord shall credit Tenant the amount of such overpayment when determining Tenant’s estimated operating expense payments for the following calendar year; provided, that in the case of an overpayment for the final Lease Year of
the Term identified in the Basic Lease Information, Landlord shall refund such overpayment to Tenant within ninety (90) days after the end of Tenant’s Lease Term. If Tenant has underpaid the amount of Additional Rent owing pursuant to this
provision, Tenant shall pay the amount of such underpayment to Landlord, as Additional Rent, within ten (10) days after receipt of notice from Landlord of such underpayment. 

6.06. Adjustment. Notwithstanding any provision herein to the contrary, in the event the Project and/or Building is not fully occupied
(including because it is not yet constructed) during the Base Calendar Year or any subsequent calendar year, an adjustment shall be made in computing Operating Expenses and Tenant’s Share of Operating Expenses for such calendar year so that the
same shall be computed for such calendar year as though the Building and/or Project had been ninety-five percent (95%) occupied during such year and fully tax assessed for such year. Additionally, if all capital improvements made by Landlord to
the Common Area in calendar year 2005 are not included in the real property tax assessment for the Base Year, an adjustment for such improvements which are not included shall be made for the Base Year to reflect the increase in real tax assessment
that would have been included in the real property tax assessment for the Base year if such improvements had been so included. 

6.07. Impositions. “Impositions” shall collectively refer to all forms of: (i) real estate taxes, assessments, impact
fees, transit charges, housing fund assessments, assessment bonds, license fees, license taxes, business license fees, commercial rental taxes and improvement bonds in connection with the Project and/or the Building ; (ii) governmental taxes,
levies, fees and charges imposed by any authority having the direct power to tax, including but not limited to any city, county, state or federal government or any school, agricultural, lighting, drainage or other improvement or special assessment
district thereof, and all other taxes relating to any legal or equitable interest in the Premises, Project and/or the Building; (iii) taxes which may be levied in lieu of real estate taxes; and (iv) other governmental charges (including,
but not limited to, charges for traffic facilities improvements, water service studies and improvements, and fire service studies and improvements) or amounts necessary to be expended because of governmental orders. “Impositions” shall
include all such governmental obligations, whether general or special, ordinary or extraordinary, unforeseen as well as foreseen, of any kind and nature for public improvements, services, benefits, or any other purpose which are assessed, levied,
confirmed, imposed or become a lien upon the Premises, Project and/or Building or become payable during the Term. 
 (a) Installment Election. In the case of any Impositions which may be evidenced by improvement or other bonds or which may be paid in annual or other periodic installments, Landlord shall cause such bonds
to be issued or cause such assessment to be paid in installments over the maximum period permitted by law. 
 (b)
Limitation. Nothing contained in this Lease shall require Tenant to pay (I) any franchise, estate, inheritance or succession transfer tax of Landlord, (ii) any assessment or penalty imposed by any governmental authority by reason of
Landlord’s or the Project’s failure to comply with any applicable law (except as otherwise expressly set forth herein, or if resulting from the acts or omissions of Tenant), or (iii) any income, profits or revenue tax or charge, upon
the net income of Landlord from all sources; provided, however, 

  

					
	Verus Lease v06	  	-17-	  	February 2, 2005 (8:51 pm)

 
that if at any time during the Term under the laws of the United States Government or the State of California, or any political subdivision thereof, a tax or excise on rent, or any other tax
however described, is levied or assessed by any such political body against Landlord on account of Rent, or a portion thereof, Tenant shall pay one hundred percent (100%) of any said tax or excise as Additional Rent. 

(c) Personal Property Taxes. Tenant shall pay or cause to be paid, prior to delinquency, any and all taxes and assessments
levied upon all trade fixtures, inventories and other personal property placed in and upon the Premises by Tenant. 
 (d) Impositions on Tenant Improvements in Excess of Building Standard Improvements. Tenant shall, within fifteen (15) days after receipt by Tenant of an invoice therefor, reimburse Landlord, and not
as a part of Operating Expense, any and all Impositions levied upon the Tenant’s Improvements in the Premises to the extent the cost of such tenant improvements are in excess of Building standard improvements. 

6.08. Services and Utilities. Tenant shall contract directly with the appropriate utility company for the supply of electricity to the
Premises, which shall be separately metered. Landlord shall use its best reasonable efforts to provide during Business Hours, as specified in the Basic Lease Information, HVAC services to the Building. Said HVAC services will be rebilled to Tenant
as Additional Rent with Tenant’s share hereby mutually agreed to be that percentage set forth in the Basic Lease Information. Landlord shall also use its best reasonable efforts to provide during the Business Hours, as specified in the Basic
Lease Information, as an Operating Expense: (i) utilities and maintenance to the Common Areas; and (ii) janitorial service to Premises. Landlord shall not be liable for any failure or interruption of any utility or service, and Tenant
shall not be entitled to any reduction or abatement of Rent on account of any such failure or interruption, unless such failure or interruption is shown by Tenant to be directly attributable to the gross negligence or intentional acts of Landlord,
its agents or employees. In the event of any such interruption or failure of any services or utilities provided in this Lease resulting from the gross negligence or intentional acts of Landlord, Landlord’s agents or employees, Tenant’s
sole remedy shall be the equitable abatement of Base Rent for the duration of the interruption or failure, which abatement shall not commence until Tenant has first provided notice to Landlord and given ten (10) days to cure such interruption
or failure. 
 6.09. Special Services. 
 (a) Additional Services. In the event Landlord provides any utilities or services to Tenant beyond the standard services set forth in Section 6.08 of this Lease, Tenant shall pay Landlord for such
special services, together with an administration surcharge of fifteen percent (15%) of the cost of such special services, as Additional Rent. 
 (b) Utility Consumption. As part of the Improvements of the Work Letter attached hereto as Exhibit D, Landlord shall install an HVAC override timer with an hourly counter attachment on each floor of the
Premises. Tenant’s activating said override timer to obtain HVAC services after normal Business Hours (as set forth in the Basic Lease Information) will engage the Building’s package, condensing and fan coil units. Each quarter, Landlord
shall determine the operating hours that Tenant has obtained HVAC services in excess of normal Business Hours (“Excess Operating Hours”). The total number of Excess Operating Hours derived will be multiplied by Thirty-five Dollars ($35)
per hour per zone and said resulting amount will reflect the HVAC utilities usage, as well as the increased maintenance and repair costs and accelerated reduction of the useful life of the equipment associated with such Excess Operating Hours for
the applicable quarter and will be billed by Landlord to Tenant and shall be promptly paid by Tenant to Landlord as Additional Rent. 

  

					
	Verus Lease v06	  	-18-	  	February 2, 2005 (8:51 pm)

  

6.10 Audit Rights. Not more than once each calendar year, Tenant, upon ten (10) days advance written notice
thereof to Landlord, at Tenant’s sole cost and expense, may retain an independent financial professional reasonably acceptable to Landlord, or utilize an employee of Tenant, to review and audit Landlord’s books and records with regard to
the Operating Expenses and the calculation of Tenant’s proportionate share thereof. Landlord shall make the books and records relating to Operating Expense available at Landlord’s office for the purpose of such audit. If it is reasonably
determined by such auditors that Tenant overpaid its share of any Operating Expenses, Landlord shall refund to Tenant the amount of such overpayment within thirty (30) days. If it is reasonably determined by such auditors that Tenant underpaid
its share of any Operating Expenses, Tenant shall pay to Landlord the amount of such deficiency within thirty (30) days. The cost of any such audit shall be paid solely by Tenant, unless the audit shows that Landlord overstated the Operating
Expenses by more than five percent (5%), in which case Landlord shall pay one-half ( 1/2) of the reasonable cost and expense of such audit. 
 7. REPAIRS AND MAINTENANCE

 7.01. Tenant Repairs and Maintenance. Except as otherwise specifically provided in this Lease, Tenant shall, at Tenant’s
own expense, maintain the Premises in a clean, sanitary and safe condition and keep and maintain the integrity and quality of the Premises, all walls, ceilings, lights, fixtures, and floor coverings thereof, in first-class repair. Subject to
Section 5.07, Tenant shall be responsible for the cost of any repairs due to damage caused by Tenant’s active negligence or wilful misconduct. Tenant waives the right to make repairs at Landlord’s expense under any law, statute or
ordinance now or hereafter in effect (including the provisions of California Civil Code Section 1942 and any successive sections or statutes of a similar nature). Tenant waives all rights to recover any losses or damages (including interference
with or injury to Tenant’s business) resulting from Landlord’s performing or failure to perform any such repairs or maintenance, it being expressly understood and agreed that Tenant shall be solely responsible for and look solely to its
insurance for any such damage and losses. 
 7.02. Inspection of Premises. Landlord, at reasonable times, and upon at least 24
hours advance notice to Tenant (except in the case of an emergency, when no notice shall be required), may enter the Premises to: (a) complete construction undertaken by Landlord on the Premises or Building; (b) to inspect, improve, clean
or repair the same; (c) to inspect the performance by Tenant of the terms and conditions hereof; (d) to affix reasonable signs and displays; (e) to show the Premises to prospective purchasers, tenants and lenders; and (f) for all
other purposes as Landlord shall reasonably deem necessary. 
 7.03. Liens. Tenant shall promptly pay and discharge all claims
for work or labor done, supplies furnished or services rendered at the request of Tenant and shall keep the Premises and Building free and clear of all mechanics’ and materialmen’s liens in connection therewith. Landlord shall have the
right to post or keep posted on the Premises, or in the immediate vicinity thereof, any notices of non-responsibility for any construction, alteration or repair of the Premises by Tenant. If any such lien is filed, Landlord may, after Landlord has
first provided notice to Tenant and given Tenant three (3) days to remove such lien, but shall not be required to, take such action or pay such amount as may be necessary to remove such lien; and, Tenant shall pay to Landlord as Additional Rent
any such amounts expended by Landlord, together with an administration charge of fifteen percent (15%) of any such amounts, within five (5) days after notice is received from Landlord of the amount expended by Landlord. 

  

					
	Verus Lease v06	  	-19-	  	February 2, 2005 (8:51 pm)

  
 7.04. Landlord’s
Maintenance Obligations. Subject to the terms and conditions provided for in this Lease, Landlord shall repair and maintain in good condition and repair, and in a manner that complies with all applicable governmental measures, the Common Areas,
public areas, and structural portions of the Building and Project, including the exterior walls, under flooring and roof, basic plumbing, heating, air conditioning and electrical systems installed or furnished by Landlord, the cost of which shall be
included in the Operating Expenses. 
 8. FIXTURES, PERSONAL PROPERTY AND ALTERATIONS 

8.01. Fixtures and Personal Property. Tenant, at Tenant’s expense, may install any necessary trade fixtures, equipment and furniture
in the Premises; provided, that such items are installed and are removable without damage to the structure or improvements of the Building. Landlord reserves the right to approve or disapprove of curtains, draperies, shades, paint or other interior
improvements visible from outside the Premises on wholly aesthetic grounds. Such improvements must be submitted for Landlord’s written approval prior to installation, or Landlord may remove or replace such items at Tenant’s sole expense.
Said trade fixtures, equipment and furniture shall remain Tenant’s property and shall be removed by Tenant upon expiration of the Term, or earlier termination of this Lease. At Landlord’s option, Landlord may notify Tenant in writing not
to remove said improvements to the extent such removal may cause damage to the Premises or Building. Tenant shall repair, at Tenant’s sole expense, all damage caused by the installation or removal of trade fixtures, equipment, furniture or
temporary improvements. If Tenant fails to remove the foregoing items within ten (10) days after the termination of this Lease, Landlord may (i) keep and use them, wherein Tenant surrenders possession of title and waives all rights of
possession, or (ii) remove any or all of them and cause them to be stored or sold in accordance with applicable law. 

8.02. Alterations. Tenant shall not make or allow to be made any alterations, additions or improvements to the Premises, either at the
inception of this Lease or subsequently during the Term, except as permitted pursuant to Section 8.04 below, without obtaining the prior written consent of Landlord. Landlord shall not unreasonably withhold or delay its consent to any
alterations, additions or improvements to the interior of the Premises proposed by Tenant, except to the extent such alterations, additions or improvements (i) affect the structural elements of the Building; (ii) affect the electrical,
mechanical or plumbing systems of the Building; (ii) are visible from outside the Building or (iii) affect the improvements to the Premises constructed by Landlord. Tenant shall deliver to Landlord full and complete plans and
specifications of all such alterations, additions or improvements, and no such work shall be commenced by Tenant until Landlord has given its written approval thereof. Landlord does not expressly or implicitly covenant or warrant that any plans or
specifications submitted by Tenant are safe or that the same comply with any applicable laws, lawful ordinances, etc. Further, Tenant shall indemnify and hold Landlord harmless from any loss, cost or expense, including attorneys’ fees and
costs, incurred by Landlord as a result of any defects in design, materials or workmanship resulting from Tenant’s alterations, additions or improvements to the Premises. All repairs, alterations, additions, and restoration by Tenant
hereinafter required or permitted shall be done in a good and workmanlike manner and in compliance with all applicable laws and lawful ordinances, by-laws, regulations and orders of any federal, state, county, municipal or other public authority and
of the insurers of the Building. Tenant shall not permit liens of any kind to be imposed upon the Premises or Building and Tenant shall discharge of record any such liens or post adequate security or bond within five (5) days after written
notice thereof. Tenant shall reimburse Landlord for Landlord’s reasonable charges for 

  

					
	Verus Lease v06	  	-20-	  	February 2, 2005 (8:51 pm)

 
reviewing and approving or disapproving plans and specifications for any alterations proposed by Tenant, and as a deposit against such obligation Tenant shall submit to Landlord with each request
to make any alteration, additions or improvements to the Premises a deposit of Five Hundred Dollars ($500). Landlord shall refund all or any part of such deposit not actually expended or incurred by Landlord for reviewing and approving or
disapproving Tenant’s plans as permitted herein. Tenant shall also reimburse Landlord for the costs of any increased insurance premiums incurred by Landlord to include such alterations in the Landlord’s all risk insurance coverage
requirements set forth in Section 5.01; provided, however, that Landlord shall be required to include the Tenant’s alterations under Landlord’s all risk insurance only to the extent such insurance is actually obtained by Landlord and
such alterations are insurable under Landlord’s insurance. If such Tenant alterations are not or cannot be included in the coverage of Landlord’s insurance, Tenant shall insure the alterations under Tenant’s all risk insurance policy
or policies as set forth in Section 5.01. Tenant shall require that any contractors used by Tenant carry a comprehensive liability insurance policy covering bodily injury in the amounts of Two Million Dollars ($2,000,000) per person and Two
Million Dollars ($2,000,000) per occurrence and covering property damage in the amount of Two Million Dollars ($2,000,000) per occurrence. Tenant shall obtain, on behalf of Tenant and at Tenant’s sole cost and expense, before proceeding with
any alteration the cost of which exceeds Five Thousand Dollars ($5,000) a completion and lien indemnity bond, or other surety, reasonably satisfactory to Landlord for such alteration. Landlord may require proof of such insurance prior to
commencement of any work on the Premises. 
 8.03. Removal of Alterations. All alterations, additions and improvements shall
remain the property of Tenant until termination of this Lease, at which time they shall be and become the property of Landlord; provided, however, that Landlord may, by written notice at any time prior to the date which is thirty (30) days
before the expiration of the Term (or immediately upon any sooner termination of the Lease) identify those items of Tenant’s alterations, additions or improvements which Landlord shall require Tenant to remove at the termination of this Lease.
If Landlord requires Tenant to remove any such alterations, additions or improvements, Tenant shall at its sole cost, remove the identified items on or before the expiration or sooner termination of this Lease and repair any damage to the Premises
and/or the Building caused by such removal. 
 8.04. Minor Alterations. The original Tenant shall be permitted to make minor
alterations, additions or improvements to the interior improvements of the Premises (“Minor Alterations”) without Landlord’s prior written consent, which consent shall not be unreasonably withheld or delayed, but only if: 

(a) At least fifteen (15) days before construction commences, Tenant gives Landlord written notice of the nature and
extent of the intended Minor Alterations, specifying the contractor that Tenant intends to use, a cost estimate of the proposed Minor Alterations and copies of all contracts relating thereto (those contracts not available at the time of
Tenant’s notice shall be delivered to Landlord when they become available but in all events prior to commencement of construction of the Minor Alterations); 

(b) The proposed alterations, additions or improvements do not affect the Building systems, the exterior appearance, the
structural components of the Building, the value of the Building or the cost to Landlord of releasing of the Premises upon the expiration or termination of the term of the Lease; 

  

					
	Verus Lease v06	  	-21-	  	February 2, 2005 (8:51 pm)

  
 (c) The
proposed Minor Alterations do not involve the installation of stairways, vaults or other equipment or improvements that would cost more to move or remove than ordinary improvements for general office use; 

(d) The proposed Minor Alterations, together with all other Minor Alterations made without Landlord’s consent under
this Section 8.04 within twelve (12) months of the proposed alteration, addition or improvement, do not cost more than Fifteen Thousand Dollars ($ 15,000) in the aggregate; and 

(e) Tenant provides to Landlord within five (5) days of Landlord’s request such further information as Landlord
may reasonably request regarding the proposed Minor Alterations and Tenant complies with all reasonable conditions imposed by Landlord. 

Within thirty (30) days of completion of the Minor Improvements, Tenant shall deliver to Landlord a copy of as-built plans for such Minor
Alterations, if such Minor Alterations are of a type for which as-built plans are reasonably available. 
 9. USE AND COMPLIANCE WITH LAWS

 9.01. General Use and Compliance with Laws. Tenant shall only use the Premises for the Permitted Uses specified in the Basic
Lease Information and for no other use without the prior written consent of Landlord. Tenant shall, at Tenant’s sole cost and expense, comply with all of the requirements of municipal, county, state, federal and other applicable governmental
authorities now in force, or which may hereafter be in force, pertaining to the Premises, Project, Building, Lot and Parking Area and secure any necessary permits therefor and shall faithfully observe, in the use of the Premises, Project, Building,
Lot and Parking Area, all municipal, county, state, federal and other applicable governmental entities’ requirements which are now in force, or which may hereafter be in force. Tenant, in Tenant’s use and occupancy of the Premises, shall
not subject the Premises to any use which would tend to damage any portion thereof or which shall in any way increase the existing rate of any insurance on the Building or any portion thereof or cause any cancellation of any insurance policy
covering the Building or portion thereof. Tenant shall not do or permit to be done anything which would obstruct or interfere with the rights of or injure other Tenants or occupants of the Project. 

9.02. Signs. Landlord, at its sole cost and expense, shall furnish Tenant with initial Building Standard suite signage and Building
Standard directory signage on the Building’s lobby directory board. The cost of any modifications to the initial signage shall be paid by Tenant. Tenant shall not install any sign on the Premises or Building unless Tenant receives prior written
approval from Landlord for such sign; provided, however, that Tenant may, on a non-exclusive basis, install at its expense an identifying sign on the top portion of the west side of the Building in a style and size and in a location acceptable to
Landlord, so long as such sign conforms to all laws, statutes, regulations, restrictions and zoning, is designed by Wieber Nelson Design or another designer acceptable to Landlord and is first approved by all required governmental agencies and by
Landlord. Building signage rights provided to the Tenant in this Section 9.02 are personal to Verus Pharmaceuticals, Inc., the initial Tenant, and cannot be transferred in connection with any Transfer (as defined herein below) other than a
Transfer by Verus Pharmaceuticals, Inc. to an Affiliate Transferee in connection with a transfer by Verus Pharmaceuticals, Inc. of its entire interest in the Lease. Any sign placed by Tenant on the Premises, the Building or the Project, shall be
installed at Tenant’s sole cost and expense and shall contain only Tenant’s name, and no advertising matter. Tenant shall remove any such sign upon termination of this Lease and shall return the affected portion of the Premises, the
Building or the Project, as applicable, to their condition prior to the placement or erection of said sign. 

  

					
	Verus Lease v06	  	-22-	  	February 2, 2005 (8:51 pm)

  
 9.03. Parking Access.
In addition to the general obligation of Tenant to comply with laws and without limitation thereof, Landlord shall not be liable to Tenant nor shall this Lease be affected if any parking privileges appurtenant to the Premises are impaired by reason
of any moratorium, initiative, referendum, statute, regulation, or other governmental decree or action which could in any manner prevent or limit the parking rights of Tenant hereunder. Any governmental charges or surcharges or other monetary
obligations imposed relative to parking rights with respect to the Premises, Project, Building and Lot shall be considered as Impositions and shall be payable by Tenant under the provisions of Article 6 hereinabove. Tenant hereby acknowledges that
Tenant shall not use in excess of Tenant’s pro rata share of the Project’s total parking spaces. 
 9.04. Floor Load.
Tenant shall not place a load upon any floor of the Premises which exceeds the load per square foot which such floor is designed to carry and which is then allowed by law. 
 9.05. Deliveries. All deliveries to and from the Premises shall be made in such a manner and during the time periods reasonably specified by Landlord so as to cause the minimum amount of interference with
the business of other tenants. 
 10. DAMAGE AND DESTRUCTION 
 10.01. Reconstruction. If the Premises are damaged or destroyed during the Term by any cause not attributable to Tenant, its agents, employees or invitees, Landlord shall, to the extent that insurance
proceeds are available therefor and are not applied by any lender against payment of an existing loan on the Project, Building or Lot, except as hereinafter provided, diligently repair or rebuild them to substantially the condition in which they
existed immediately prior to such damage or destruction. If, however, insurance proceeds are not sufficient to pay the full cost of reconstruction of the Premises, or if the damage or destruction is due to the acts or omissions of Tenant, its
agents, employees or contractors, Landlord may either terminate this Lease or promptly and diligently reconstruct the Premises to the extent necessary to restore the Premises to the condition existing as of the Lease Date, and Tenant shall be
obligated for the restoration of all of Tenant’s leasehold improvements (but not with respect to those improvements owned by Landlord), trade fixtures and other personal property on the Premises. 

10.02. Rent Abatement. If any portion of the Premises is damaged or destroyed during the Term to the extent that such portion is rendered
unusable by Tenant, it is agreed that, except as provided in this Section 10.02, Tenant shall look solely to Tenant’s business interruption insurance for any damages or losses arising from substantial interference with the operation of
Tenant’s business by reason of such damage or destruction. If Landlord has obtained rental abatement insurance as permitted by Section 5.04 hereinabove, and only to the extent of any proceeds received by Landlord from rental abatement
insurance, Rent shall be abated proportionately following the date of such damage or destruction. Such abatement shall continue for the period commencing with the date of such damage and ending upon substantial completion by Landlord of the work of
repair or reconstruction which Landlord is obligated or undertakes. In the event Landlord does not purchase rental abatement insurance, then no Rent shall be abated. 

  

					
	Verus Lease v06	  	-23-	  	February 2, 2005 (8:51 pm)

  
 10.03. Excessive
Damage or Destruction. If the Building is damaged or destroyed to the extent that Landlord determines that it cannot, with reasonable diligence, be fully repaired or restored by Landlord within one hundred eighty (180) days after the date of
the damage or destruction, Landlord may terminate this Lease. Notwithstanding the fact that the Premises have been damaged or destroyed, Landlord shall in good faith determine whether the Building can be fully repaired or restored within the one
hundred eighty (180) day period, and Landlord’s determination shall be binding upon Tenant. Landlord shall notify Tenant of its determination, in writing, within forty-five (45) days after the date of the damage or destruction whether
it elects to fully repair or restore the Building. If Landlord determines that the Building can be fully repaired or restored within the one hundred eighty (180) day period, or if Landlord determines that such repair or restoration cannot be
made within said period, but Landlord does not elect to terminate within forty-five (45) days from the date of Landlord’s determination, this Lease shall remain in full force and effect and Landlord shall diligently repair and restore the
damage as soon as reasonably possible. 
 10.04. Uninsured Casualties. Notwithstanding anything contained herein to the
contrary, in the event of damage to or destruction of all or any portion of the Building which is not fully covered by the insurance proceeds received by Landlord under the insurance policies required under Section 5.01 hereinabove (without
regard to Landlord’s deductible for such policies), Landlord may terminate this Lease by written notice to Tenant, given within forty-five (45) days after the date of notice to Landlord that said damage or destruction is not so covered. If
Landlord does not elect to terminate this Lease, the Lease shall remain in full force and effect and Landlord shall commence reconstruction and restoration of Landlord’s Work in the Premises as described in Exhibit D and shall diligently repair
or rebuild Landlord’s Work to substantially the condition in which it existed immediately prior to such damage or destruction. 
 10.05. Waiver. With respect to any destruction which Landlord is obligated to repair or may elect to repair under the terms of this Article 10, Tenant hereby waives all rights to terminate this Lease
pursuant to rights otherwise presently or hereafter accorded by law to tenants, except as expressly otherwise provided herein. 
 11. EMINENT
DOMAIN 
 11.01. Total Condemnation. If the whole of the Premises is acquired or condemned by eminent domain, inversely condemned
or sold in lieu of condemnation, for any public or quasi-public use or purpose (“Condemned”), then the Term shall terminate as of the date of title vesting in such proceeding, and Rent shall be adjusted as of the date of such termination.
Tenant shall immediately notify Landlord of any such occurrence. 
 11.02. Partial Condemnation. If any part of the Premises is
partially Condemned, and such partial condemnation renders the Premises unusable for the business of the Tenant, as reasonably determined by Landlord, or in the event a substantial portion of the Building is Condemned, as reasonably determined by
Landlord, then the Term shall terminate as of the date of title vesting in such proceeding and Rent shall be adjusted to the date of termination. If such condemnation is not sufficiently extensive to render the Premises unusable for the business of
Tenant, as reasonably determined by Landlord, or less than a substantial portion of the Building is Condemned, then Landlord shall promptly restore the Premises to a condition comparable to its condition immediately prior to such condemnation less
the portion thereof lost in such condemnation, and this Lease shall continue in full force and effect except that after the date of such title vesting the Base Rent shall be appropriately reduced as reasonably determined by Landlord. 

  

					
	Verus Lease v06	  	-24-	  	February 2, 2005 (8:51 pm)

  
 11.03. Landlord’s
Award. If the Premises are wholly or partially Condemned, then, subject to the provision of Section 11.04 below, Landlord shall be entitled to the entire award paid for such condemnation, and Tenant waives any right or claim to any part thereof
from Landlord or the condemning authority. 
 11.04. Tenant’s Award. Tenant shall have the right to claim and recover from
the condemning authority, but not from Landlord, such compensation as may be separately awarded or recoverable by Tenant in Tenant’s own right on account of any and all costs or loss incurred by Tenant including, without limitation, removing
Tenant’s merchandise, furniture, fixtures, leasehold improvements and equipment to a new location. 
 11.05. Temporary
Condemnation. If the whole or any part of the Premises shall be Condemned for any temporary public or quasi-public use or purpose, this Lease shall remain in effect and Tenant shall be entitled to receive for itself such portion or portions of any
award made for such use with respect to the period of the taking which is within the Term. If a temporary condemnation remains in force at the expiration or earlier termination of this Lease, Tenant shall pay to Landlord a sum equal to the
reasonable cost of performing any obligations required of Tenant by this Lease with respect to the surrender of the Premises, including without limitation, repairs and maintenance, and upon such payment such obligations shall be deemed satisfied. If
a temporary condemnation is for an established period which extends beyond the Term, the Lease shall terminate as of the date of occupancy by the condemning authority, and the damages shall be as provided in Sections 11.03 and 11.04 hereinabove and
Rent shall be adjusted to the date of occupancy. 
 11.06. Notice and Execution. Landlord shall, immediately upon service of
process in connection with any condemnation or potential condemnation, give Tenant notice in writing thereof. Tenant shall immediately execute and deliver to the Landlord all instruments that may be required to effectuate the provisions of this
Article. 
 12. DEFAULT 

12.01. Events of Default. The occurrence of any of the following events shall constitute an “Event of Default” on the part of
Tenant: 
 (a) [Reserved]. 

(b) Payment. Failure to pay any installment of Base Rent, Additional Rent or other monies due and payable hereunder upon
the date when said payment is due, where such failure continues uncured for a period of three (3) days after notice by Landlord to Tenant; 
 (c) Performance. Default in the performance of any of Tenant’s covenants, agreements or obligations hereunder (except default in the payment of Rent, Additional Rent or other monies), where such
failure is curable and continues uncured for ten (10) days after notice by Landlord to Tenant, provided that if the nature of the default cannot be reasonably cured within ten (10) days, Tenant shall not be deemed in default if it shall
commence curing the default within such ten (10) day period and diligently prosecutes same to completion; 

(d) Assignment. A general assignment by Tenant for the benefit of creditors or any Unauthorized Assignment as defined
below in Article 13; 

  

					
	Verus Lease v06	  	-25-	  	February 2, 2005 (8:51 pm)

  
 (e)
Bankruptcy. The filing of a voluntary petition by Tenant, or the filing of an involuntary petition by any of Tenant’s creditors seeking the rehabilitation, liquidation or reorganization of Tenant under any law relating to bankruptcy, insolvency
or other relief of debtors that is not dismissed within sixty (60) days of such filing; 
 (f) Receivership.
The appointment of a receiver or other custodian to take possession of substantially all of Tenant’s assets or of this leasehold; 
 (g) Insolvency, Dissolution, Etc. Tenant shall become insolvent or unable to pay its debts, or shall fail generally to pay its debts as they become due; or any court shall enter a decree or order
directing the winding up or liquidation of Tenant or of substantially all of its assets; or Tenant shall take any action toward the dissolution or winding up of its affairs or the cessation or suspension of its use of the Premises; 

(h) Attachment. Attachment, execution or other judicial seizure of substantially all of Tenant’s assets or this
leasehold; or 
 (i) Hazardous Materials Release. Any on-site or off-site contamination or violation of any
Health and Safety Laws as set forth in Article 14. 
 12.02. Landlord’s Remedies. 

(a) [Reserved]. 
 (b) Termination. Following the occurrence of any Event of Default, Landlord shall have the right, so long as the default continues, to terminate this Lease by written notice to Tenant setting forth:
(i) the default; (ii) the requirements to cure it; and (iii) a demand for possession, which shall be effective three (3) days after it is given or upon expiration of the times specified in Section 12.01 hereinabove,
whichever is later. 
 (c) Possession. Following termination under subsection (b), without prejudice to any other
remedies Landlord may have by reason of Tenant’s default or of such termination, Landlord may then or at anytime thereafter, (i) peaceably re-enter the Premises, or any part thereof, upon voluntary surrender by Tenant or expel or remove
Tenant therefrom and any other persons occupying them, using such legal proceedings as are then available; (ii) repossess and enjoy the Premises, or relet the Premises or any part thereof for such term or terms (which may be for a term
extending beyond the Term) at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion shall determine, with the right to make reasonable alterations and repairs to the Premises; and (iii) remove all
personal property therefrom and, at Landlord’s option, retain all or any of such personal property (and title thereto shall thereupon vest in Landlord without compensation to Tenant) or dispose of all or any of such personal property, in any
manner, without compensation to Tenant. In the event Landlord removes all or any of Tenant’s personal property pursuant to the foregoing provisions, Tenant shall pay to Landlord, upon demand, the actual expense of such removal and disposition
and the cost of repairing any damage to the Premises resulting from such removal. 
 (d) Recovery. Following
termination under subsection (b), Landlord shall have all the rights and remedies of a landlord provided by Section 1951.2 of the Civil Code of the State of California. The amount of damages which Landlord may recover following termination
under subsection (b) shall include: (i) the worth at the time of the award of the unpaid rent and other amounts which had been earned at the time of termination; (ii) the worth at the time of the award of the amount by which the
unpaid rent which would have been earned 

  

					
	Verus Lease v06	  	-26-	  	February 2, 2005 (8:51 pm)

 
after termination until the time of the award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; (iii) the worth at the time of the award of the
amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of rental loss Tenant proves could be reasonably avoided; and (iv) any other amount necessary to compensate Landlord for all detriment
proximately caused by Tenant’s failure to perform its obligations under this Lease. The “worth at the time of the award” of the amount referred to in (i) and (ii) above shall be computed by allowing interest thereon at the
Default Rate (as set forth below). The “worth at the time of the award” of the amount referred to in (iii) above shall be computed by discounting such amount at the Default Rate (as set forth below). Tenant hereby covenants and agrees
that the Rent Abatement granted by Landlord to Tenant pursuant to this Lease is granted by Landlord upon Landlord’s and Tenant’s presumption that Tenant shall remain on the Premises for the entire initial Term of the Lease and, therefore,
in the event of termination under Section 12.02(b) during the initial Term as a result of the filing of a bankruptcy case or as a result of an assignment for the benefit of creditors, such abatement of Base Rent shall be forfeited by Tenant,
and the “worth at the time of award” of the Base Rent unpaid by Tenant pursuant to the Lease, shall include damages in the amount of any and all Base Rent previously abated plus interest thereon as otherwise provided in the Lease. In the
event of termination under Article 12 for any other reason during the initial Term, a pro-rate share of such abatement of Base Rent, determined based on the number of months then remaining in the initial Term of the Lease and the number of months in
the initial Term of the Lease, shall be forfeited by Tenant, and the “worth at the time of award” of the Base Rent unpaid by Tenant pursuant to the Lease, shall include damages in such proportionate amount of any and all Base Rent
previously abated plus interest thereon as otherwise provided in the Lease commencing on the date of termination. 
 (e) Additional Remedies. In addition to the foregoing remedies, Landlord shall, so long as this Lease is not terminated, have the right to remedy any default of Tenant to maintain or improve the Premises
without terminating this Lease, to incur expenses on behalf of Tenant in seeking a new subtenant, or to cause a receiver to be appointed to administer the Premises and new or existing subleases, and to add to the Rent payable hereunder all of
Landlord’s reasonable costs in so doing, with interest at the lower of the prime rate of interest at the time of said default charged by Bank of America N.A. plus three percent (3%) or the maximum lawful rate (the “Default
Rate”). 
 (f) Other. If Tenant causes or threatens to cause a breach of any of the covenants, agreements,
terms or conditions contained in this Lease, Landlord shall be entitled to retain all sums held by Landlord by any trustee or in any account provided for herein, to enjoin such breach or threatened breach, and to invoke any right and remedy allowed
at law or in equity or by statute or otherwise as though re-entry, summary proceedings and other remedies were not provided for in this Lease. As used in this Section, the term “threatens” is limited to delivery to Landlord of a written
statement by an officer, director, legal counsel or member of senior management of Tenant indicating Tenant’s intent to cause a breach or Tenant’s anticipation of its uncured default in the performance of, any of the covenants, agreements,
terms or conditions contained in this Lease. 
 (g) Cumulative. Each right and remedy of Landlord provided for in
this Lease shall be cumulative and shall be in addition to every other right or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise. The exercise or beginning of the exercise by Landlord of
any one or more of the rights or remedies provided for in this Lease, or now or hereafter existing at law or in equity or by statute or otherwise, shall not preclude the simultaneous or later exercise by Landlord of any or all other rights or
remedies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise. 

  

					
	Verus Lease v06	  	-27-	  	February 2, 2005 (8:51 pm)

  
 (h) No
Waiver. No failure by Landlord to insist upon the strict performance of any term hereof or to exercise any right or remedy consequent upon a breach thereof, and no acceptance of full or partial payment of Rent during the continuance of any such
breach shall constitute a waiver of any such breach or of any such term. Efforts by Landlord to mitigate the damages caused by Tenant’s breach of this Lease shall not be construed to be a waiver of Landlord’s right to recover damages under
this Article 12. No delay or omission in the exercise of any right or remedy of Landlord in the event of any default by Tenant shall impair such right or remedy or be construed as a waiver. The receipt and acceptance by Landlord of delinquent Rent
shall not constitute a waiver of any default other than the particular Rent payment accepted. Landlord’s receipt and acceptance from Tenant, on any date (the “Receipt Date”), of an amount less than Rent due on such Receipt Date, or to
become due at a later date but applicable to a period prior to such Receipt Date, shall not release Tenant of its obligation (i) to pay the full amount of such Rent due on such Receipt Date or (ii) to pay when due the full amount of such
Rent to become due at a later date but applicable to a period prior to such Receipt Date. No act or conduct of Landlord, including without limitation, the acceptance of the keys to the Premises, shall constitute an acceptance by Landlord of the
surrender of the Premises by Tenant before the date of the expiration of the Term of this Lease. Only a written notice from Landlord to Tenant stating Landlord’s election to terminate Tenant’s right to possession of the Premises shall
constitute acceptance of the surrender of the Premises and accomplish a termination of this Lease. Landlord’s consent to or approval of any act by Tenant requiring Landlord’s consent or approval shall not be deemed to waive or render
unnecessary Landlord’s consent to or approval of any other subsequent act by Tenant. Any waiver by Landlord of any default must be in writing and shall not be a waiver of any other default concerning the same of any other provision of this
Lease. Tenant hereby waives any rights granted to Tenant under California Code of Civil Procedure Section 1179, California Civil Code Section 3275, and/or any successor statute(s). Tenant represents and warrants that if Tenant breaches
this Lease and, as a result, this Lease is terminated, Tenant will not suffer any undue hardship as a result of such termination and, during the Term, will make such alternative or other contingency plans to provide for its vacation of the Premises
and relocation in the even to such termination. Tenant acknowledges that Tenant’s waivers set forth in this paragraph are a material part of the consideration for Landlord’s entering into this Lease and that Landlord would not have entered
into this Lease in the absence of such waivers. Nothing in this Article 12 affects the right of Landlord to indemnification by Tenant in accordance with Section 5.08 hereinabove for liability arising prior to the termination of this Lease for
personal injuries or property damage. 
 13. ASSIGNMENT AND SUBLETTING 
 13.01. Assignment and Subletting; Prohibition. Tenant shall not assign, mortgage, pledge, hypothecate or otherwise transfer, this Lease, in whole or in part, or any interest therein, nor sublet or permit
occupancy by any party other than Tenant of all or any part of the Premises (each of the foregoing is hereinafter sometimes referred to as a “Transfer”), without the prior written consent of Landlord in each instance, which consent
Landlord, subject to the satisfactions of the conditions set forth in this Section 13.01, shall not unreasonably withhold, delay or condition. As material consideration for this Lease, Tenant hereby agrees to provide the following written
materials to Landlord regarding any proposed Transfer for Landlord’s approval: (i) the proposed Transfer agreement; (ii) the audited financial statements of the transferee for the three (3) years prior to the proposed Transfer
(or, if audited financial statement are unavailable, financial statements prepared in accordance with generally 

  

					
	Verus Lease v06	  	-28-	  	February 2, 2005 (8:51 pm)

 
accepted accounting principles consistently applied, certified by the chief executive officer and chief financial officer of the proposed transferee to be true and accurate);
(iii) reasonably detailed summaries of the transferee’s business operations; (iv) a reasonably detailed credit report of the transferee; and (v) banking references for the transferee. Landlord shall have the right to review the
written material submitted by Tenant regarding such Transfer for a period of fifteen (15) business days following Landlord’s receipt of such material to consent or decline to consent to such Transfer. No Transfer by Tenant shall relieve
Tenant of any obligation under this Lease, including Tenant’s obligation to pay Base Rent and Additional Rent hereunder. Any purported Transfer contrary to the provisions hereof without Landlord’s consent (“Unauthorized
Transfer”) shall be void. The consent by Landlord to any Transfer shall not constitute a waiver of the necessity for such consent to any subsequent Transfer. As Additional Rent hereunder, Tenant shall reimburse Landlord for actual legal and
other expenses incurred by Landlord in connection with any request by Tenant for Landlord’s consent to the Transfer and, as a deposit against such obligation, Tenant shall submit to Landlord with each request for consent to a Transfer a deposit
of One Thousand ($1,000). Any amount due in excess of the Tenant’s deposit shall be reimbursed by Tenant to Landlord within ten (10) days following the submission to Tenant of a written invoice from Landlord’s counsel for such costs
and fees payable by Landlord with respect to any request by Tenant for Landlord’s consent to such a Transfer, whether or not Landlord ultimately approves such Transfer. Landlord shall promptly refund to Tenant all or any part of such deposit
that exceeds the costs and fees actually so incurred by Landlord. Tenant shall have the right, without Landlord’s written consent, but subject to the foregoing obligations to deliver the relevant written materials to Landlord, to enter into an
assignment of this Lease to any subsidiary corporation of Tenant, Tenant’s parent corporation, to any corporation or other entity that controls, is controlled by or under common control with Tenant or to any corporation, partnership or other
entity succeeding to substantially all of the assets of Tenant as a result of a consolidation or merger, or to a corporation, partnership or other entity to which all or substantially all of the assets of Tenant have been sold (“Affiliate
Transferee”), provided (a) any Affiliate Transferee that is an assignee (but not any sublessee) executes an instrument in form and content reasonably acceptable to Landlord assuming all of Tenant’s obligation under the Lease and
(b)(i) Tenant can establish by delivering to Landlord evidence reasonably acceptable to Landlord, that the Affiliate Transferee has as of the date of the proposed Transfer, and has continually met during the two (2) calendar quarters preceding
the date of the proposed Transfer, the Tenant’s Financial Conditions as defined in Section 4.05, or (ii) the Letter of Credit provided for in Section 4.05 is posted with Landlord and then effective as of the date the date of the
proposed Transfer. No Transfer by Tenant to an Affiliate Transferee shall relieve Tenant of any obligation under this Lease, including Tenant’s obligation to pay Base Rent and Additional Rent hereunder. 

13.02. Bonus Rental. If for any assignment or sublease, Tenant receives rent or other consideration, either initially or over the term of
the assignment or sublease, in excess of the sum of (i) the Rent called for hereunder, or in case of the sublease of a portion of the Premises, in excess of such Rent fairly allocable to such portion, plus (ii) broker’s commissions to
unrelated third parties, tenant improvement costs and other amounts actually paid by Tenant in connection with such assignment or sublease to the extent reasonable and customary, in the subleasing market in which the Project is located, after
appropriate adjustments to assure that all other payments called for hereunder are appropriately taken into account, Tenant shall pay to Landlord, as Additional Rent hereunder, fifty percent (50%) of the excess of each such payment of rent or
other consideration received by Tenant, which shall be due and payable by Tenant to Landlord promptly after its receipt by Tenant. 

  

					
	Verus Lease v06	  	-29-	  	February 2, 2005 (8:51 pm)

  
 13.03. Scope. The
prohibition against Unauthorized Transfers contained in this Article shall be construed to include a prohibition against any transfer by operation of law. If this Lease or any interest therein be assigned, or if the underlying beneficial interest of
Tenant is transferred, or if the Premises or any part thereof be sublet or occupied by anybody other than Tenant, Landlord may collect rent from the assignee, subtenant or occupant and apply the net amount collected to the Rent herein reserved and
apportion any excess rent so collected in accordance with the terms of the immediately preceding paragraph, but no such assignment, subletting, occupancy or collection shall be deemed a waiver of this covenant, or the acceptance of the assignee,
subtenant or occupant as tenant, or a release of Tenant from the further performance by Tenant of covenants on the part of Tenant herein contained. No assignment or subletting shall affect the continuing primary liability of Tenant (which, following
assignment, shall be joint and several with the assignee), and Tenant shall not be released from performing any of the terms, covenants and conditions of this Lease. 
 13.04. Waiver. Notwithstanding any Transfer, or any indulgences, waivers or extensions of time granted by Landlord to any transferee, or failure by Landlord to take action against any transferee, Tenant
waives notice of any default of any transferee and agrees that Landlord may, at its option, proceed against Tenant without having taken action against or joined such transferee, except that Tenant shall have the benefit of any indulgences, waivers
and extensions of time granted to any such transferee. Tenant further waives monetary damages, of whatever kind or nature, from Landlord as a result of, or in any way related to any proposed Transfer, whether Landlord consented to such Transfer or
withholds its consent to such Transfer. 
 13.05. Release. Whenever Landlord conveys its interest in the Project, Parking Area
and/or Building, and the conveyee assumes Landlord’s obligations hereunder, Landlord shall be automatically released from the further performance of covenants on the part of Landlord herein contained, with respect to the interests conveyed, and
from any and all further liability, obligations, costs and expenses, demands, causes of action, claims or judgments arising from or growing out of, or connected with this Lease after the effective date of said release. The effective date of said
release shall be the date Landlord transfers title of the Project to the new owner. If requested, Tenant shall execute a form of release and such other documentation as may be required to further effect the provisions of this Article 13. 

13.06 Recapture of Premises. In the event Tenant proposes to enter into a Transfer other than a Transfer to an Affiliate Transferee,
which Transfer, when taken together with all previous transfers, relates to more than fifty percent (50%) of the rentable square feet of the Premises (the “Subject Space”) and is for the entire then remaining balance of the Term, or
substantially all of the remaining balance of the Term, then Tenant shall notify Landlord in writing (the “Availability Notice”) if Tenant wishes to Transfer the Subject Space. Landlord shall have the option, by written notice to Tenant
(the “Recapture Notice”) within ten (10) days after receiving any Availability Notice, to recapture the Subject Space as described below. A timely Recapture Notice terminates this Lease and Tenant’s obligations regarding the
Subject Space for the remaining term of the Lease and as of the date sixty (60) days after Landlord delivers the Recapture Notice to Tenant. If Landlord declines to or fails timely to elect to recapture the Subject Space, Landlord shall have no
further right under this Section 13.06 to the Subject Space unless Tenant fails to Transfer the Subject Space within one hundred fifty (150) days after Landlord receives the Availability Notice or it becomes available again after Transfer
by Tenant. To determine the new Base Rent under the Lease if Landlord recaptures the Subject Space, the original Base Rent under the Lease shall be multiplied by a fraction, the numerator of which is the square feet of Rentable Area of the Premises
retained by Tenant after Landlord’s recapture and the denominator of which is the total square feet of Rentable Area of the Premises before Landlord’s recapture. The Additional Rent, to the extent that it is calculated on the basis of the
square feet of Rentable Area within the Premises, shall be reduced to reflect Tenant’s proportionate share based upon the square feet of Rentable Area of the Premises retained by Tenant after Landlord’s recapture. 

  

					
	Verus Lease v06	  	-30-	  	February 2, 2005 (8:51 pm)

  
 14. HAZARDOUS MATERIALS 

14.01. Definitions. 
 (a) Health and Safety Laws. “Health and Safety Laws” means any and all federal, state or local laws, ordinances, rules, decrees, orders, regulations, court decisions and other authority relating
to hazardous substances, hazardous materials, hazardous waste, toxic substances, materials or wastes, environmental conditions on, under or about the Premises, or soil and ground water conditions, including, but not limited to, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), as amended, 42 U.S.C. § 9601, et seq., the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901, et seq., the Hazardous Materials
Transportation Act, 49 U.S.C. §1801, et seq., the Federal Water Pollution Control Act of 1972, 33 U.S.C. § 1251, et. seq., the Safe Drinking Water Act, 42 U.S.C. § 300f, et seq., the Toxic Substances Control Act (“TSCA”), 15
U.S.C. § 2601, et seq., the Federal Insecticide, Fungicide, and Rodenticide Act (“FIFRA”), 7 U.S.C. § 136, et seq., the Federal Hazardous Substances Control Act, 15 U.S.C. § 1261, et seq., the Noise Control Act of 1972, 42
U.S.C. § 4901, et seq., the Occupational Safety and Health Act (“OSHA”), 29 U.S.C. § 651, et seq., the California Hazardous Waste Control Act, Cal. Health and Safety Code § 25100, et seq., the Carpenter-Presley-Tanner
Hazardous Substances Account Act, Cal. Health and Safety Code § 25300, et seq., the Safe Drinking Water and Toxic Enforcement Act of 1986 (“California Proposition 65”), Cal. Health and Safety Code § 25249.5, et seq., the
Porter-Cologne Water Quality Control Act, Cal. Water Code § 13000, et. seq., any amendments to the foregoing, and any similar federal, state or local laws, ordinances, rules, decrees, orders or regulations. 

(b) Hazardous Materials. “Hazardous Materials” means any chemical, compound, material, substance or other matter
that: (i) is defined as a hazardous substance, hazardous material, hazardous waste or toxic substance, material or waste under any Health and Safety Law, including, but not limited to, those substances, materials or wastes regulated now or in
the future under any statutes or regulations; (ii) is controlled or governed by any Health and Safety Law or gives rise to any reporting, notice or publication requirements thereunder, or gives rise to any liability, responsibility or duty on
the part of Tenant or Landlord with respect to any third person hereunder; or (iii) is flammable or explosive material, oil or any other petroleum-based substance, freon, asbestos, urea formaldehyde, radioactive material, nuclear medicine
material, drug, vaccine, bacteria, virus, hazardous waste, toxic substance, or related injurious or potentially injurious material (by itself or in combination with other materials). 

(c) Off-Site Contamination. The term “Off-Site Contamination” shall mean the presence of any Hazardous
Materials, associated in any way with Tenant’s, its successors’ or assigns’ use or occupation of the Premises, transported, arranged for disposal of, or disposed of by Tenant or any third party on behalf of Tenant or its agents,
employees or officers to any site or location other than the Premises. 
 (d) On-Site Contamination. The term
“On-Site Contamination” shall mean the presence of any Hazardous Materials in, on or under any portion of the Premises. 

  

					
	Verus Lease v06	  	-31-	  	February 2, 2005 (8:51 pm)

  
 14.02. Use. Tenant
shall not allow any Hazardous Material to be used, generated, manufactured, released, stored or disposed of on, under or about, or transported from, the Premises, unless: (a) such use is specifically disclosed to and approved by Landlord in
writing prior to such use; and (b) such use is conducted in compliance with the provisions of this Article 14. Landlord’s consent may be withheld in Landlord’s sole discretion, and, if granted, may be revoked at any time. Landlord may
approve such use subject to reasonable conditions to protect the Premises and Landlord’s interests. Landlord may withhold approval if Landlord determines that such proposed use involves a material risk of a release or discharge of Hazardous
Materials or a violation of any Health and Safety Laws or that Tenant has not provided reasonable assurances of its ability to remedy such a violation and fulfill its obligations under this Article 14. Notwithstanding the foregoing, Landlord hereby
consents to Tenant’s use, storage or disposal of products containing small quantities of Hazardous Materials, which products are of a type customarily found in offices and households (such as aerosol cans containing insecticides, toner for
copies, paints, paint remover and the like) (collectively, “Permitted Materials”), provided that Tenant shall handle, use, store and dispose of such Permitted Materials in a safe and lawful manner and shall not allow such Hazardous
Materials to contaminate the Premises. 
 14.03. Compliance With Laws; Handling of Hazardous Materials. Tenant shall strictly
comply with, and shall maintain the Premises in compliance with, all Health and Safety Laws. Tenant shall obtain, maintain in effect and comply with the conditions of all permits, licenses and other governmental approvals required for Tenant’s
operations on the Premises under any Health and Safety Laws, including, but not limited to, the discharge of appropriately treated Hazardous Materials into or through any sanitary sewer serving the Premises. At Landlord’s request, Tenant shall
deliver copies of, or allow Landlord to inspect, all such permits, licenses and approvals. All Hazardous Materials removed from the Premises (other than Permitted Materials)shall be removed and transported by duly licensed haulers to duly licensed
disposal facilities, in compliance with all Health and safety Laws. Tenant shall be responsible for the proper disposal of any mercury-containing fluorescent lighting fixtures. Tenant shall perform any monitoring, testing, investigation, clean-up,
removal, detoxification, preparation of closure or other required plans and any other remedial work required by any governmental agency or lender or reasonably recommended by Landlord’s environmental consultants as a result of any release or
discharge or potential release or discharge of Hazardous Materials and resulting in On-Site Contamination or Off-Site Contamination or any violation or potential violation of Health and Safety Laws by Tenant or any successor or sublessee of Tenant
or their respective agents, contractors, employees, licensees or invitees (collectively, “Remedial Work”). Landlord shall have the right to intervene in any governmental action or proceeding involving any Remedial Work, and to approve
performance of the work, in order to protect Landlord’s interests. Landlord shall have the right to require Tenant to provide a Standard ASTM E 1527-93 Phase I (cost not to exceed $3,000.00) Environmental Clearance Report prepared for
Landlord’s approval at the time Tenant vacates the Premises, if Landlord reasonably believes Hazardous Materials (other than Permitted Materials) have been released or discharged in, on, under or about the Premises. Tenant shall not enter into
any settlement agreement, consent decree or other compromise with respect to any claims relating to Hazardous Materials without notifying Landlord and providing ample opportunity for Landlord to intervene. 

14.04. Compliance With Insurance Requirements. Tenant shall comply with the requirements of Landlord’s and Tenant’s insurers
regarding Hazardous Materials and with such insurers’ recommendations based upon prudent industry practices regarding management of Hazardous Materials. 

  

					
	Verus Lease v06	  	-32-	  	February 2, 2005 (8:51 pm)

  
 14.05. Indemnity.
Tenant shall indemnify, protect, defend and hold Landlord (and its partners and their respective officers, directors, employees and agents), the Premises, Building, Lot Parking Areas, and all other areas of the Project harmless from and against any
and all liabilities, demands, penalties, fines, claims, suits, judgments, actions, investigations, proceedings, costs and expenses (including attorneys’ fees and court costs) arising out of or in connection with any breach of any provisions of
this Article 14, directly or indirectly arising out of any liability of Tenant under any Health and Safety Law or associated with any On-Site Contamination or any Off-Site Contamination which is caused, suffered or permitted to be brought upon,
kept, used, discharged, deposited or leaked in or about the Premises or any other portion of the Project by Tenant or any of Tenant’s assigns, agents, employees, contractors or invitees or by anyone in the Premises other than Landlord,
Landlord’s agents, employees or contractors, including, but not limited to, the use, generation, storage, release, disposal or transportation of Hazardous Materials by Tenant, or any successor or sublessee of Tenant, or their respective agents,
contractors, employees, licensees, or invitees, on, under or about the Premises during the Term, and including, but not limited to, all consequential damages and the cost of any Remedial Work. Any defense by Tenant pursuant to this Article shall be
by counsel reasonably acceptable to Landlord. Neither the consent by Landlord to the use, generation, storage, release, disposal or transportation of Hazardous Materials nor the strict compliance with all Health and Safety Laws shall excuse Tenant
from Tenant’s indemnification obligations pursuant to this Section 14.05. The foregoing indemnity shall be in addition to and not a limitation of the indemnification provisions of Section 5.09 of this Lease. Tenant’s obligations
pursuant to this Section 14.05 shall survive the termination or expiration of the Lease. 
 14.06. Notice. Each party to
this Lease shall notify the other party, in writing, as soon as reasonably possible, and in any event within five (5) business days after, any of the following: (a) a party has knowledge, or it has reasonable cause to believe, that any
Hazardous Material has been released, discharged or is located on, under or about the Premises, whether or not the release or discharge is in quantities that would otherwise be reportable to a public agency; (b) a party receives any order of a
governmental agency requiring any Remedial Work pursuant to any Health and Safety Laws; (c) a party receives any warning, notice of inspection, notice of violation or alleged violation, or a party receives notice or knowledge of any proceeding,
investigation of enforcement action, pursuant to any Health and Safety Laws; or (d) a party receives notice or knowledge of any claims made or threatened by any third party against that party or the Premises relating to any loss or injury
resulting from Hazardous Materials or from violation of any Health and Safety Law. If the potential risk of any of the foregoing events is material, the party having notice of such event shall deliver immediate verbal notice to the other party, in
addition to written notice as set forth above. Landlord and Tenant agree to deliver to one another copies of all test results, reports and business or management plans required to be filed with any governmental agency pursuant to any Health and
Safety Laws. 
 14.07. Default. The release or discharge of any Hazardous Material or the violation of any Health and Safety Law
by Tenant or any successor or sublessee of Tenant shall be a material default by Tenant under the Lease. In addition to or in lieu of the remedies available under the Lease as a result of such default, Landlord shall have the right, without
terminating the Lease, to require Tenant to suspend its operations and activities on the Premises until Landlord is satisfied that appropriate Remedial Work has been or is being adequately performed; Landlord’s election of this remedy shall not
constitute a waiver of Landlord’s right thereafter to declare a default and pursue other remedies set forth in the Lease. 

  

					
	Verus Lease v06	  	-33-	  	February 2, 2005 (8:51 pm)

  
 14.08. Landlord’s
Disclosure. Pursuant to the requirements of California Health and Safety Code Section 25359.7, Landlord hereby notifies Tenant that Landlord does not know, and does not have reasonable cause to believe, that any release of any Hazardous
Material has come to be located on or beneath the Premises, Building or Project. 
 15. OFFSET STATEMENT, ATTORNMENT AND SUBORDINATION

 15.01. Estoppel Certificate. Within ten (10) days after request therefor by Landlord, or if on any sale, assignment or
hypothecation by Landlord of Landlord’s interest in the Project, Building, Lot and/or Parking Area, or any part thereof, an Estoppel certificate shall be required from Tenant, Tenant shall deliver, in recordable form, such a certificate to any
proposed mortgagee or purchaser, and to Landlord, certifying (if such be the case) that (i) this Lease is in full force and effect; (ii) the date of Tenant’s most recent payment of Rent, and that Tenant has no defenses or offsets
outstanding, or stating those offsets or defenses claimed by Tenant; (iii) and any other information reasonably requested. Tenant’s failure to deliver said certificate in time shall be conclusive upon Tenant that: (i) this Lease is in
full force and effect, without modification except as may be represented by Landlord; (ii) there are no uncured defaults in Landlord’s performance and Tenant has no right of offset, counterclaim or deduction against Rent hereunder; and
(iii) no more than one period’s Base Rent has been paid in advance. Failure of Tenant to deliver such a certificate to Landlord or any proposed mortgagee or purchaser within ten (10) days following Landlord’s request therefor
shall be deemed Tenant’s acknowledgment of the correctness of the statements made in the foregoing sentence and that the aforementioned mortgagee(s) and/or purchaser(s) may rely on said statements. 

15.02. Attornment. Tenant shall, in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the
power of sale under any mortgage or deed of trust made by the Landlord, its successors or assigns, encumbering the Premises, or any part thereof, or in the event of termination of a ground lease, if any, and if so requested, attorn to the purchaser
upon such foreclosure or sale or upon any grant of a deed in lieu of foreclosure and recognize such purchaser as the Landlord under this Lease. 
 15.03. Subordination. The rights of Tenant hereunder are and shall be, at the election of the mortgagee, subject and subordinate to the lien of such mortgage, or the lien resulting from any other method
of financing or refinancing, now or hereafter in force against the Project, Building, Lot and/or Parking Area, and to all advances made or hereafter to be made upon the security thereof; provided, however, that notwithstanding such subordination, so
long as Tenant is not in default under any of the terms, covenants and conditions of this Lease, neither this Lease nor any of the rights of Tenant hereunder upon Tenant’s covenanting that Tenant is not in default hereunder, shall be terminated
or subject to termination by any trustee’s sale, any action to enforce the security, or by any proceeding or action in foreclosure. If requested, Tenant agrees to execute whatever documentation may be required to further effect the provisions
of this Article. 
 16. NOTICES 
 16.01. Notices. All notices required to be given hereunder shall be in writing (except for notice required pursuant to Section 12.01(b)) and shall be (i) personally delivered, in which even they
shall be deemed received on the date of delivery, (ii) sent by certified mail, postage prepaid, return receipt requested, or by a professional courier company which provides a receipt evidencing delivery, in which event they shall be deemed
received on the date of delivery as evidenced by the receipt; or (iii) sent by electronically confirmed telecopy. Any notice, request, demand, direction or other communication sent by cable, telex or telecopy

  

					
	Verus Lease v06	  	-34-	  	February 2, 2005 (8:51 pm)

 
must be confirmed within forty-eight (48) hours by letter mailed or delivered in accordance with the foregoing. The Landlord’s and Tenant’s addresses for written notices required
to be given hereunder shall be the addresses set forth in the Basic Lease Information, or at such other place designated by advance written notice delivered in accordance with the foregoing. 
 17. SUCCESSORS BOUND 
 17.01. Successors Bound. This Lease and each of its
covenants and conditions shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, successors and legal representatives and their respective assigns, subject to the provisions hereof. Whenever in this
Lease a reference is made to the Landlord, such reference shall be deemed to refer to the person in whom the interest of the Landlord shall be vested and Landlord shall have no obligation hereunder as to any claim arising after the transfer of its
interest in the Premises. Any successor or assignee of the Tenant who accepts an assignment or the benefit of this Lease and enters into possession or enjoyment hereunder shall thereby assume and agree to perform and be bound by the covenants and
conditions thereof. Nothing herein contained shall be deemed in any manner to give a right of assignment to Tenant without the written consent of Landlord. 
 18. MISCELLANEOUS 
 18.01. Waiver. No waiver of any default or breach of any
covenant by either party hereunder shall be implied from any omission by either party to take action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified
in the waiver, and then said waiver shall be operative only for the time and to the extent therein stated. Waivers of any covenant, term or condition contained herein by either party shall not be construed as a waiver of any subsequent breach of the
same covenant, term or condition. The consent or approval by either party to or of any act by either party requiring further consent or approval shall not be deemed to waive or render unnecessary their consent or approval to or of any subsequent
similar acts. 
 18.02. Easements. Landlord reserves the right to (i) subdivide or alter the boundaries of the Lot and
(ii) grant easements on the Lot and dedicate for public use portions thereof without Tenant’s consent; provided, however, that no such grant or dedication shall materially interfere with Tenant’s enjoyment, use of, and access to the
Premises and the other rights of Tenant as granted by this Lease. From time to time, and upon Landlord’s demand, Tenant shall execute, acknowledge and deliver to Landlord, in accordance with Landlord’s instructions, any and all documents,
instruments, maps or plats necessary to effectuate Tenant’s covenants hereunder. 
 18.03. Reserved. 

18.04. No Light, Air or View Easement. Any diminution or shutting off of light, air or view by any structure which may be erected on
lands adjacent to or in the vicinity of the Building shall in no way affect this Lease or impose any liability on Landlord. 

18.05. Corporate Authority. If Tenant executes this Lease as a corporation, each of the persons executing this Lease on behalf of Tenant
hereby covenants and warrants that: (i) Tenant is a duly authorized and existing corporation; (ii) Tenant is qualified to do business in the State of California; (iii) Tenant has full right and authority to enter into this Lease; and
(iv) each of the persons executing on behalf of Tenant is authorized to do so. 

  

					
	Verus Lease v06	  	-35-	  	February 2, 2005 (8:51 pm)

  
 18.06. Accord and
Satisfaction. No payment by Tenant or receipt by Landlord of a lesser amount than the Rent herein stipulated shall be deemed to be other than on account of the Rent, nor shall any endorsement or statement on any check or any letter accompanying any
check or payment as Rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such Rent or pursue any other remedy provided in this Lease.

 18.07. Limitation of Liability. The obligations of Landlord under this Lease shall not constitute personal obligations of the
individual members, partners, directors, officers, or shareholders of Landlord or any member of Landlord, and in consideration of the benefits accruing hereunder to Tenant and notwithstanding anything contained in this Lease to the contrary, Tenant
hereby covenants and agrees for itself and all of its successors and assigns that the liability of Landlord for its obligations under this Lease shall be limited solely to, and Tenant’s and its successors’ and assigns’ sole and
exclusive remedy shall be against the real estate that is the subject of this Lease and Tenant, its successors and assigns shall not seek recourse against the individual member, partners, directors, officers or shareholders of Landlord or any member
of Landlord, or any of their personal assets for such satisfaction. Any claim, demand of right of defense of any kind by Tenant that is based upon or arises in any connection with the Lease at negotiations prior to its execution shall be barred
unless Tenant commences an action thereon or initiates a legal proceeding or defense by reason thereof within ninety (90) days after the date of the occurrence of the event, act at omission to which the claim, demand of right of defense
relates. 
 18.08. Time. Time is of the essence of every provision hereof. 

18.09. Attorneys’ Fees. In any action or proceeding which the Landlord or the Tenant may be required to prosecute to enforce its
respective rights hereunder, the less prevailing party therein agrees to pay all costs incurred by the more prevailing party therein, including reasonable attorneys’ fees, to be fixed by the court, and said costs and attorneys’ fees shall
be made a part of the judgment in said action. 
 18.10. Captions and Article Numbers. The captions, article numbers and table
of contents appearing in this Lease are inserted only as a matter of convenience and in no way define, limit, construe or describe the scope or intent or such sections or articles of this Lease nor in any way affect this Lease. 

18.11. Severability. If any term, covenant, condition or provision of this Lease, or the application thereof to any person or
circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions or provisions of this Lease, or the application thereof to any person or
circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 
 18.12.
Applicable Law. This Lease, and the rights and obligations of the parties hereto, shall be construed and enforced in accordance with the laws of the State of California. 
 18.13. Submission of Lease. The submission of this document for examination and negotiation does not constitute an offer to lease, or a reservation of, or option for leasing the Premises. This document
shall become effective and binding only upon execution and delivery hereof by Landlord. No act or omission of any employee or agent of Landlord or of Landlord’s broker or the Managing Agent set forth in the Basic Lease Information shall alter,
change, or modify any of the provisions hereof. 

  

					
	Verus Lease v06	  	-36-	  	February 2, 2005 (8:51 pm)

  
 18.14. Holding Over.
Should Tenant, or any of its successors in interest, hold over the Premises, or any part thereof, after the expiration of the term of this Lease, unless otherwise agreed to in writing, such holding over shall constitute and be construed as tenancy
from month-to-month only, at a monthly rent equal to one hundred fifty percent (150%) of the Base Rent owed during the final year of the Term of this Lease as the same may be extended from time to time. This inclusion of the preceding sentence
shall not be construed as Landlord’s permission for Tenant to hold over. 
 18.15. Surrender. Upon the expiration or
earlier termination of this Lease, Tenant shall surrender the Premises to Landlord in good order, condition and repair, except for reasonable wear and tear or as otherwise provided in Articles 8, 10 and 11. Tenant shall not commit or allow any waste
or damage to be committed on any portion of the Premises, Building or Project. All property that Tenant is required to surrender shall become Landlord’s property upon the termination of this Lease. Landlord may cause any of said personal
property that is not removed from the Premises within thirty (30) days after the date of any termination of this Lease to be removed from the Premises and stored at Tenant’s expense, or, at Landlord’s election said personal property
thereafter shall belong to Landlord without the payment of any consideration, subject to the rights of any person holding a perfected security interest therein. 
 18.16. Rules and Regulations. At all times during the Term, Tenant shall comply with rules and regulations (“Rules and Regulations”) for the Project, as set forth in Exhibit E (and such
amendments as Landlord may reasonably adopt), attached hereto and by this reference made a part hereof. In the event of any conflict between the Rules and Regulations and the provisions of this Lease, the provisions of this Lease shall control.

 18.17. No Nuisance. Tenant shall conduct its business and control its agents, employees, invitees and visitors in such a
manner as not to create any nuisance, or interfere with, annoy or disturb any other tenant or Landlord in its operation of the Project. 
 18.18. Broker. Tenant warrants that it has had no dealings with any real estate broker or agent, other than the Broker set forth in the Basic Lease Information, in connection with the negotiation of this
Lease, and that it knows of no other real estate broker or agent who is entitled to any commission or finder’s fee in connection with this Lease. Tenant agrees to indemnify and hold harmless Landlord from and against any and all claims,
demands, losses, liabilities, lawsuits, judgments, costs and expenses (including, without limitation, attorneys’ fees and costs) with respect to any leasing commission or equivalent compensation alleged to be owing on account of Tenant’s
dealings with any real estate broker or agent other than Broker. 
 18.19. Landlord’s Right to Perform. Upon Tenant’s
failure to perform any obligation of Tenant hereunder, including without limitation, payment of Tenant’s insurance premiums, charges of contractors who have supplied materials or labor to the Premises, etc., Landlord shall have the right to
perform such obligation of Tenant on behalf of Tenant and/or to make payment on behalf of Tenant to such parties, provided Landlord has first provided written notice to Tenant and given Tenant ten (10) days to perform such obligation (unless
another cure period is provided herein). Tenant shall reimburse Landlord the reasonable cost of Landlord’s performing such obligation on Tenant’s behalf, including reimbursement of any amounts that may be expended by Landlord, plus
interest at the rate of three percent (3%) over the prime rate as announced, from time to time, by Bank of America, N.A. per annum, as Additional Rent. 

  

					
	Verus Lease v06	  	-37-	  	February 2, 2005 (8:51 pm)

  
 18.20. Mortgage
Protection. Landlord shall not be in default under the terms of this Lease, or by law, unless Landlord fails to perform the obligations required of Landlord within a reasonable time, but in no event later than thirty (30) days after written
notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Tenant in writing (“Mortgagee”) specifying wherein Landlord has
failed to perform such obligation. If, however, the nature of Landlord’s obligation is such that more than thirty (30) days are required for performance, Landlord shall not be in default if Landlord commences performance within such thirty
(30) day period and diligently prosecutes the same to completion. Should Landlord be deemed to be in material default of this Lease, then Landlord shall be liable to Tenant for all damages sustained by Tenant as a direct result of
Landlord’s breach. If any such default materially interferes with Tenant’s business operation in the Premises, Tenant may give Landlord and Mortgagee a second written notice specifying exactly the nature of the Landlord’s failure and
its impact on Tenant’s business operation in the Premises and the further remedial action deemed necessary by Tenant. If such remedial action is not undertaken within thirty (30) days of such second written notice, Tenant shall be entitled
to terminate this Lease, but in no event earlier than thirty (30) days after the second notice to Landlord and Mortgagee. Notwithstanding the foregoing, Tenant shall not be entitled to terminate this Lease as a result of Landlord’s default
if Landlord is making diligent efforts to perform the obligations required of Landlord under this Lease. Nothing herein contained shall be interpreted to mean that Tenant is excused from paying any Rent due hereunder as a result of any default by
Landlord. 
 18.21. Nonliability. Landlord shall not be in default hereunder or be liable for any damages directly or indirectly
resulting from, nor shall the rental herein reserved be abated by reason (unless otherwise provided herein) of (i) the interruption of use of the Premises as a result of the installation of any equipment in connection with the Premises or
Building or (ii) any failure to furnish or delay in furnishing any services required to be provided by Landlord when such failure or delay is caused by accident or any condition beyond the reasonable control of Landlord or by the making of
necessary repairs or improvements to the Premises or to the Building, or the limitation, curtailment, rationing or restriction on use of water or electricity, gas or any other form of energy or any other service or utility whatsoever serving the
Premises or the Building. Landlord shall use reasonable efforts to remedy any interruption in the furnishing of such services. 

18.22. Modification for Lender. If, in connection with obtaining construction, interim or permanent financing for the Project or the
Building, the lender shall require reasonable modifications in this Lease as a condition to such financing, Tenant will not unreasonably withhold, delay or defer its consent thereto, provided that such modifications do not increase the obligations
of Tenant hereunder or materially adversely affect the leasehold interest hereby created or Tenant’s rights hereunder. 

18.23. Quiet Enjoyment. So long as the Tenant shall fully and faithfully perform all of its obligations under this Lease when and as
required under the terms of this Lease, Tenant shall enjoy peaceful and quiet possession of the Premises against any party claiming through Landlord. 
 18.24. Financial Information. Subject to the confidentiality provisions of this Section 18.24, Tenant shall submit to Landlord annually during the Term (including any Extension) (quarterly from and
after the Letter of Credit Termination Date) on or before the last day of the second month following the month in which Tenant’s fiscal year ends (in the case required quarterly, on or before the first day of the second month following the end
of each calendar quarter of Tenant’s fiscal year), Tenant’s audited financial statements for the preceding fiscal 

  

					
	Verus Lease v06	  	-38-	  	February 2, 2005 (8:51 pm)

 
year, or calendar quarter, if applicable, prepared in accordance with generally accepted accounting principles, consistently applied, or if such audited statement are not available, copies of
complete financial statements of If Tenant is required to submit financial statements quarterly and audited financial statements are unavailable, such financial statements shall be certified by the president and chief financial officer of Tenant to
be true and complete. As a condition to receiving such information, Landlord agrees that it shall not disclose, and shall use its commercially reasonable efforts to ensure, that the Landlord Permitted Recipients (as defined below) do not disclose
the content or substance of such information to any person (except to the officers, partners, directors, employee and agents of Landlord, Landlord’s current and prospective lenders, and prospective purchasers of the Building who need to know
such information for the purpose of evaluating Tenant’s creditworthiness in connection with this Lease (the “Landlord Permitted Recipients”)) without Tenant’s prior written approval, which approval shall not be unreasonably
withheld or delayed, and that it will not use such information for any commercial or competitive purpose. 
 18.25. Recording.
Neither Landlord nor Tenant shall record this Lease without the consent of the other. Either party may, at its sole cost and expense, record a short form memorandum of this Lease in a form reasonably acceptable to the other party. 

18.26. Entire Agreement. This Lease sets forth all covenants, promises, agreements, conditions and understandings between Landlord and
Tenant concerning the Premises, Project, Building and Lot, and there are no covenants, promises, agreements, conditions or understandings, either oral or written, between Landlord and Tenant other than as are herein set forth. Except as herein
otherwise provided no subsequent alteration, amendment, change or addition to this Lease shall be binding upon Landlord or Tenant unless reduced to writing and signed by Landlord and Tenant. 

  

					
	Verus Lease v06	  	-39-	  	February 2, 2005 (8:51 pm)

  
 18.27. Additional
Lease Provisions. Additional Lease Provisions, if any, are set forth on Exhibit G, attached hereto. 
 IN WITNESS WHEREOF, the
parties have executed this Lease as of the date first above-written. 
  

			
	LANDLORD:	  	TENANT:

  

					
	Verus Lease v06	  	-40-	  	February 2, 2005 (8:51 pm)

  

											
	R. B. INCOME PROPERTIES, a California limited partnership	 		 	VERUS PHARMACEUTICALS, INC., a
	By:	 	RBI PROPERTY MANAGEMENT, LLC, a California limited liability company, as General Partner	 		 	California corporation
						
		 	By:	 	/s/ Thomas G. Blake	 		 	By:	 	/s/ Robert W. Keith
		 		 	THOMAS G. BLAKE, President	 		 	Name:	 	Robert W. Keith
		 		 		 		 	Its:	 	President & Chief Operating Officer
						
		 		 		 		 	By:	 	/s/ Richard G. Vincent
		 		 		 		 	Name:	 	Richard G. Vincent
		 		 		 		 	Its:	 	Chief Financial Officer

 IF TENANT SHALL BE A CORPORATION,
THE AUTHORIZED OFFICERS MUST SIGN ON BEHALF OF THE CORPORATION. THE LEASE MUST BE EXECUTED BY THE PRESIDENT OR VICE-PRESIDENT AND THE SECRETARY OR ASSISTANT SECRETARY, UNLESS THE BY-LAWS OR A RESOLUTION OF THE BOARD OF DIRECTORS SHALL OTHERWISE
PROVIDE, IN WHICH EVENT, THE BY-LAWS OR A CERTIFIED COPY OF THE RESOLUTION, AS THE CASE MAY BE, MUST BE FURNISHED. ALSO THE APPROPRIATE CORPORATE SEAL MUST BE AFFIXED. 

  

					
	Verus Lease v06	  	-41-	  	February 2, 2005 (8:51 pm)Licensing and Distribution Agreement

 Exhibit 10.17 
 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. 
 Execution Copy 
 LICENSING and DISTRIBUTION AGREEMENT 
 by and between 

ZOGENIX, Inc. 
 and 
 DESITIN ARZNEIMITTEL GmbH 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	  	 Page
 2

  

 TABLE OF CONTENTS 

 

					
	1.	  	DEFINITIONS	  	4
	2.	  	GRANT OF LICENSE	  	8
	3.	  	TRADEMARK	  	9
	4.	  	PRODUCT STEERING COMMITTEE (“SC”)	  	10
	5.	  	DEVELOPMENT AND COMMERCIALISATION OF THE PRODUCT	  	11
	6.	  	MANUFACTURE AND SUPPLY OF THE PRODUCT	  	12
	7.	  	MARKETING	  	14
	8.	  	PRICING	  	14
	9.	  	ROYALTIES	  	15
	10.	  	PAYMENT TERMS	  	16
	11.	  	RECORDS AND REPORTS	  	17
	12.	  	INFRINGEMENT OF RIGHTS BY THIRD PARTY	  	17
	13.	  	INFRINGEMENT OF THIRD PARTY RIGHTS	  	18
	14.	  	INDEMNIFICATION AND INSURANCE	  	19
	15.	  	IMPROVEMENTS AND PATENTS	  	21
	16.	  	RIGHT OF FIRST REFUSAL	  	22
	17.	  	REGULATORY	  	23
	18.	  	PHARMACOVIGILANCE	  	23
	19.	  	EXCHANGE OF INFORMATION	  	23
	21.	  	TERM AND TERMINATION	  	24
	22.	  	CONSEQUENCES OF TERMINATION	  	26
	23.	  	CONFIDENTIALITY	  	26
	24.	  	REPRESENTATIONS AND WARRANTIES	  	28
	25.	  	FORCE MAJEURE	  	29
	26.	  	NOTICES	  	29
	27.	  	ASSIGNMENT	  	30
	28.	  	GENERAL PROVISIONS	  	30

 LIST OF APPENDICES

  

			
	Appendix 1	  	Product Specification
	Appendix 2	  	Licensed Patents
	Appendix 3	  	Clinical Supply Terms

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	  	 Page
 3

  

 LICENSING & DISTRIBUTION AGREEMENT 

THIS LICENSING & DISTRIBUTION AGREEMENT is entered into on this 14 day of March, 2008, by and between 

 

	 	1.	ZOGENIX, Inc. a company incorporated and existing under the laws of Delaware whose registered office is at 11682 El Camino Real, Suite 320, San Diego, CA 92130,
U.S.A. (“ZOGENIX”); 

 and 

 

	 	2.	DESITIN Arzneimittel GmbH, a company incorporated and existing under the laws of Germany whose registered office is at Weg beim Jaeger 214, 22335 Hamburg,
Germany (“DESITIN”); 

 Each also referred to as “Party” or together as
“Parties”. 
 RECITALS 
  

	 	A.	 ZOGENIX is, amongst others, active in the research and development of pharmaceuticals and medical devices and has developed Sumatriptan
DoseProTM for migraine patients for which ZOGENIX intends
to register the product in the U.S.A. 

  

	 	B.	DESITIN specialises in the manufacture, marketing and sale of branded pharmaceuticals, in particular CNS related products, in the Territory and desires to enter
into a contractual relationship with ZOGENIX to develop, obtain regulatory approval and commercialise the Product in the Territory. 

  

	 	C.	The Parties hereby enter into the Agreement on the terms and conditions as stipulated herein below. 

  
 NOW THEREFORE,
the Parties hereby agree as follows: 
  

	1.	DEFINITIONS 

 As used in this Agreement,
unless expressly otherwise stated or evident in the context, the following terms shall have the meanings defined below. The singular (where appropriate) shall include the plural and vice versa and references to Appendices and Clauses shall mean
appendices and clauses of this Agreement. 
  

					
	1.1	  	Affiliate	  	shall mean any firm, person or company which controls, is controlled by or is under common control with a Party to this Agreement and, for the purpose of this definition, the term
“control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such firm, person or company, whether through the ownership of voting securities, by contract or
otherwise, or the ownership either directly or indirectly of 50% or more of the voting securities of such firm, person or company;
			
	1.2	  	Agreement	  	shall mean this licensing and distribution agreement and the appendices hereto;
			
	1.3	  	BfArM	  	shall mean Bundesinstitut für Arzneimittel und Medizinprodukte (Federal Institute for Drugs and Medical Devices) in Germany, and any successor agency thereto;
			
	1.4	  	Business Day	  	shall mean any day other than Saturday or Sunday on which the banks in London are open for business;
			
	1.5	  	Clinical Trial Materials	  	shall mean the Product to be used by DESITIN in connection with the development and registration process in the Territory; for the avoidance of doubt Clinical Trial Materials shall
exclude all packaging and blinding thereof;
			
	1.6	  	Confidential Information	  	shall mean any scientific, technical, formulation, process, manufacturing, clinical, non-clinical, regulatory, marketing, financial or commercial information or data relating to the
business, projects or products of either Party and provided by one Party to the other by written, oral, electronic or other means in connection with this Agreement;
			
	1.7	  	cGMP	  	shall mean current good manufacturing practices as set out under the European Directive 2003/94/EC and promulgated by the International Conference on Harmonisation, as the same may
be modified or amended from time to time;
			
	1.8	  	“Cost of Goods Manufactured”	  	shall mean costs to produce Clinical Trial Materials and/or commercial supplies of Product to the extent that such costs would ordinarily be included as a Cost of Goods sold in
accordance with U.S. generally accepted accounting principles, including: (a) the amounts paid by ZOGENIX or its Affiliates for (i) manufacturing, filling and/or finishing Product, but excluding costs, charges and allocations related to or
occasioned by unused manufacturing capacity, (ii) transporting, storing and insuring Product, and (iii) testing Product, including with respect to the foregoing subsections (i) – (iii), all taxes (other than income taxes) and customs duty
charges imposed by governmental authorities with respect thereto; (b) to the extent not included in subsection (a), the direct costs and charges incurred by ZOGENIX or its Affiliates in connection with the manufacture, filling, finishing,
testing, storing, insuring and transportation of the Product, including direct internal costs with respect thereto; (c) to the extent not included in subsection (a), ZOGENIX’s or its Affiliate’s intellectual property acquisition and
licensing costs (including royalties) paid to Third Parties (i) directly allocable to the applicable Product to the extent that such intellectual property is required for the manufacture of such Product in the country of manufacture and (ii)
actually incurred by ZOGENIX or its Affiliates and not otherwise reimbursed by or paid for by any Third Parties; and (d) to the extent not included in subsection (a), allocable depreciation, amortization and facilities costs (e.g., sewer, water,
property taxes), with any such allocations made on the basis of theoretical full capacity operation of the relevant facility, adjusted for changeovers in production runs, and excluding costs and charges related to or occasioned by (i) unused
manufacturing capacity not reserved for the production of Product; (ii) the manufacture of other products at the manufacturing party’s facilities, and (iii) allocation of general corporate overhead;
			
	1.9	  	Change of Control	  	shall have the meaning as given to it in Clause 2.3;
			
	1.10	  	Committee Members	  	shall have the meaning as given to it in Clause 4.1;

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	Page 5

  

  

					
	1.11	  	Data	  	shall mean (a) written materials and information concerning the Product, including copies, or summaries, of materials prepared for submission to the Regulatory Authorities
concerning the Product or its labeling; (b) such clinical data and documentation in respect of the Product generated by research and trials funded by a Party or to which a Pary may have access with the right to disclose; and (c) safety information
in respect of the Product generated by a Party.
			
	1.12	  	DESITIN	  	shall have the meaning as given to it in Clause 2 of the recitals of this Agreement;
			
	1.13	  	DESITIN`s Net Sales	  	shall mean the gross price billed by DESITIN or its Affiliates to independent parties for sales of the Product less (i) customary cash and credit discounts (other than mandatory
rebates) provided that such deductions under this subsection (i) shall not exceed in average during a calendar year [***]% of the gross amount invoice of the Product in the Territory; (ii) allowances given the customers for normal returns and
recalls; (iii) sales and similar taxes, and (iv) mandatory rebates or any other measures with like effect imposed by operation of law, by any Regulatory Authority; (v) rebates granted to managed healthcare organisations or to federal, state or local
governments, their agencies, purchasers and reimbursers or to trade customer; (vi) tax, tariff or custom duties or other duties or governmental charges (except for income tax) levied on the sale, transportation, import or delivery of the Product;
(vii) freight, shipping and insurance costs relating to the Product or retroactive price reductions, provided that such deductions under this subsection (vii) shall not exceed [***]% of gross amount invoice of the Product in the Territory during any
calendar year, but in each case only if paid by DESITIN or actually charged against DESITIN and evidenced in DESITIN’s books and records of account and the reports provided to ZOGENIX pursuant to Clause 10.3 hereof;
			
	1.14	  	DESITIN Parties	  	shall have the meaning as given to it in Clause 14.1;
			
	1.15	  	Dossier	  	shall mean the dossier of information and data filed, or to be filed with BfArM in relation with the application for Marketing Authorisation in Germany and other countries in the
European Union or with a comparable Regulatory Authority, including any amendments thereto;
			
	1.16	  	Effective Date	  	shall mean the date of this Agreement;
			
	1.17	  	Field	  	shall mean all therapeutic uses of the Product in humans;
			
	1.18	  	First Commercial Sale	  	shall mean the date of first invoice of Desitin for deliveries to wholesalers, hospital pharmacies, pharmacies or other independent parties;
			
	1.19	  	Force Majeure	  	shall mean in relation to either Party any circumstances beyond the reasonable control of that Party;
			
	1.20	  	Improvement	  	shall mean any discovery, development, invention, enhancement or modification, patentable or otherwise, relating to the Product in the Territory owned or controlled by ZOGENIX or
its Affiliates during the Term, including any modification or enhancement in the method of formulation, dosage strains, analytical methodology ingredients, preparation, presentation, means of delivery or administration, indication, use or packaging
of the Product. For the avoidance of doubt, “Improvement” shall not include Intellectual Property Rights which relate to line extensions of the Product or indications which are in addition to those for which ZOGENIX has requested Marketing
Authorisation in the United States on or before the Effective Date;
			
	1.21	  	Initial Term	  	shall have the meaning as given to it in Clause 21.1;
			
	1.22	  	Intellectual Property Rights	  	shall mean patents, trademarks, service marks, logos, trade names, rights and designs, copyright, utility models, rights and know how and other intellectual property rights, in each
case whether registered or unregistered and including applications for registration and all rights or forms of protection having equivalent or similar effect anywhere in the world;
			
	1.23	  	Key Facts	  	shall mean basic information used by DESITIN and its Affiliates in marketing or promoting the Product including but not limited to information on indications, dosage, side effects
and selling points used for the positioning within current and future market environment;
			
	1.24	  	Launch	  	means the commencement of commercial sale of the Product in the respective country of the Territory after receipt of Marketing Authorisation in that country of the
Territory;

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	Page 6

  

					
	1.25	  	Licensed Know-how	  	shall mean all information, procedures, instructions, techniques, data, technical information, knowledge and experience (including toxicological, pharmaceutical, clinical,
non-clinical and medical data, health registration data and marketing data), designs, sales and marketing materials and technology, including without limitation Data, owned or controlled by Zogenix during the Term and necessary to use, distribute,
sell, or offer for sale the Product in the Territory whether in written electronic or other form, including the Dossier. Notwithstanding the foregoing, Licensed Know-How shall exclude any and all Manufacturing Know-How;
			
	1.26	  	Licensed Patents	  	shall mean all Patent Rights owned or controlled by Zogenix during the Term and reasonably necessary to use, distribute, sell or offer for sale the Product in the Territory. As of
the Effective Date, the Licensed Patents consist of those Patents set forth on Appendix 2 to this Agreement;
			
	1.27	  	Licensed Technology	  	shall mean the Licensed Know How and the Licensed Patents and any Improvements thereto;
			
	1.28	  	Manufacturing Agreement	  	Shall mean the agreement to be entered into by the Parties as set out in Clause 6.2 and pursuant to which ZOGENIX shall be the exclusive supplier of all of DESITIN’s, its
Affiliates’ and its permitted sub-licensees’ requirements of Product for commercial use and/or sale in the Territory;
			
	1.29	  	Manufacturing Know-How	  	shall mean any and all of the following, to the extent both (a) owned or controlled by Zogenix or any respective Affiliate of Zogenix (other than an Acquiror of Zogenix), as the
case may be, and (b) related to Products: methods of manufacturing, production and test methods, procedures and batch records, manufacturing and testing summary data, process and assay validation information, and any other information, procedures,
instructions, techniques, data, technical information, knowledge and experience (including regulatory) related to manufacturing, manufacturing process development and scale-up, manufacturing capacity, manufacturing facilities, product testing,
product release, quality assurance activities, or stability tests;
			
	1.30	  	Marketing Authorisation	  	shall mean the grant of all necessary permits, authorisations, licences and approvals (or waivers) from any Regulatory Authority required for the research, development, manufacture,
promotion, storage, import, export, transport or use of the Product in the Territory;
			
	1.31	  	MOH	  	shall mean the Ministry of Health or equivalent governmental body responsible for granting Marketing Authorisation in each respective country within the Territory;
			
	1.32	  	Other Territories	  	shall mean the world except for the Territory;
			
	1.33	  	Party	  	shall have the meaning as given to it in the Preamble;
			
	1.34	  	Patent Rights	  	shall mean patents or patent applications; and any divisionals, continuations, substitutions, continuations-in-part, extensions, renewals, re-examinations or reissues of such
patents or applications, as applicable, in each case in the Territory;
			
	1.35	  	Pharmaco-vigilance Agreement	  	shall mean the agreement to be entered into by the Parties as set out in Clause 18.1 and pursuant to which the Parties shall fulfil the applicable pharmaceutical rules and
regulations in the Territory and the Other Territories;

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	Page 7

  

					
	1.36	  	Product	  	shall mean the medical device DosePro with Sumatriptan as the sole active ingredient as specified in the Product Specification;
			
	1.37	  	Product Specification	  	shall mean the specifications as defined for the Product in Appendix 1 to this Agreement;
			
	1.38	  	Reasonable Commercial Efforts	  	shall mean commercial efforts consistent with normal business practices and effort used by a Party in connection with other products of similar market size or importance which such
Party intends to launch or has launched and sold in the relevant Territory, or in the absence of any such similar products then such efforts shall be assessed by reference to good business practice in the light of all the
circumstances;
			
	1.39	  	Regulatory Authority	  	shall mean any and all governmental and regulatory bodies, agencies, departments or entities, whether or not located in the Territory, which regulate, direct or control commerce in
or with the Territory, including any competent agency, body or entity from time to time responsible for granting Marketing Authorisations;
			
	1.40	  	Remedies	  	shall have the meaning as given to it in Clause 12.1;
			
	1.41	  	ROFR	  	shall have the meaning given to it in Clause 16;
			
	1.42	  	Royalty	  	shall have the meaning as given to it in Clause 9.1;
			
	1.43	  	Samples	  	shall mean certain quantities of the Product to be used in the Territory for advertising and marketing purposes only, any sale being strictly prohibited;
			
	1.44	  	Term	  	shall mean the Initial Term as the same may be extended pursuant to Clause 21.2.
			
	1.45	  	Territory	  	 shall mean the countries of the European Union (defined below and thereafter as constituted from time to time) plus Norway, Switzerland
and Turkey, to the extent not otherwise included in the European Union:
  

The countries of the European Union as of the Effective Date are as follows:
 Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal,
Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom;

			
	1.46	  	Third Party	  	shall mean any person or entity who or which are neither a Party nor an Affiliate of a Party;
			
	1.47	  	Trademark	  	shall mean the trademark “DosePro” or any trademark containing “DosePro” or such other substitute trademark as Zogenix following consultation with DESITIN
determines to use instead of “DosePro”. For the avoidance of doubt, “Trademark” does not include the trademark ZogenixTM and any other related trademark or service mark (whether registered or unregistered) containing the word
“Zogenix”;
			
	1.48	  	Transfer Price	  	shall have the meaning as given to it in Clause 8.3;
			
	1.49	  	ZOGENIX	  	shall have the meaning as given to it in Clause 1 of the recitals to this Agreement;
			
	1.50	  	ZOGENIX Parties	  	shall have the meaning as given to it in Clause 14.2.

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	  	 Page
 8

  

	2.	GRANT OF LICENSE 

  

	2.1	Subject to the terms of this Agreement, ZOGENIX hereby grants to DESITIN an exclusive license under the Licensed Technology to develop, use, distribute, sell,
offer for sale, and import the Product in the Field and in the Territory. 

  

	2.2	The term “exclusive” for the purposes of clause 2.1 means to the exclusion of all others, including ZOGENIX and its Affiliates, except to the extent
necessary to enable ZOGENIX to perform its obligations under this Agreement. 

  

	2.3	DESITIN shall have the right to sub-license all or any of the rights licensed under this Agreement to its Affiliates and any Third Party, provided that DESITIN
shall: 

  

	 	(a)	provide ZOGENIX with a copy of such sub-license agreement promptly after the execution of any sub-license covering the Territory, which sub-license agreement is
consistent with the terms of this Agreement insofar as they are applicable, but excluding the right to grant a sublicense, and contains terms that are no less restrictive than those contained in this Agreement on audit, inspection, and
confidentiality; 

  

	 	(b)	if the sub-licensee is not an Affiliate of DESITIN seek ZOGENIX’s prior written consent, which consent shall not be unreasonably withheld; provided that ZOGENIX
may request adequate background and other information on the proposed sub-licensee and if DESITIN is unable to reasonably satisfy ZOGENIX as to such background and other information or that ZOGENIX will continue to receive the economic benefit of
its bargain as if DESITIN were continuing to market and promote the Product under this Agreement, ZOGENIX may withhold its consent; 

  

	 	(c)	if the sub-licensee is an Affiliate of DESITIN at the time of the sub-license hereunder and thereafter the sub-licensee ceases to be an Affiliate of DESITIN (a
“Change of Control”), unless ZOGENIX grants its prior written consent (pursuant to the procedure set forth in Clause 2.3(b)) it is agreed that the sub-license granted to former Affiliates of DESITIN shall automatically
terminate when the Change of Control becomes effective; and 

  

	 	(d)	DESITIN shall be liable to ZOGENIX for acts or omissions of any Affiliate or permitted sub-licensee and shall solely be responsible for any claim made by any Affiliate
or permitted sub-licensee against ZOGENIX; provided that in each case, such claims do not arise from any act or omission of the ZOGENIX Parties. 

  

	2.4	The license granted under Clause 2.1 includes sub-licenses under any Intellectual Property Rights included within the Licensed Technology which have, prior to
the Effective Date, been licensed by ZOGENIX from any Third Party. Any royalties or other payments due to any Third Party pursuant to such a Third Party license shall be paid by ZOGENIX. 

 

	2.5	Each Party shall have access to the other Party’s Data and shall have a right to use such Data in their respective territories. For the avoidance of doubt,
DESITIN’s right to use the Data shall be limited to its use in satisfying its obligations or pursuing its rights under this Agreement during the Term and ZOGENIX shall have a perpetual right to use the Data of DESITIN during the Term and
following any expiration or termination of this Agreement. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	  	 Page
 9

  

	2.6	Notwithstanding anything in this Agreement to the contrary, ZOGENIX shall, as between the Parties, retain: (a) the exclusive right to manufacture and supply
Product for all fields of use; and (b) develop, register, import, export, use, and sell the Product outside the Territory. 

  

	2.7	ZOGENIX reserves the right to modify and/or to discontinue developing or producing the Product at its discretion at any time either (1) due to legal or
regulatory requirements, administrative or court orders, or safety risks, or (2) so long as the Product in question is withdrawn from the market throughout the European Union for a justified and reasonable motive; provided, however, that
ZOGENIX shall notify DESITIN as soon as practicable after any such modification or discontinuance and DESITIN shall be entitled to market any modified versions of Product pursuant to the terms of this Agreement. Nothing in this Agreement shall be
deemed to restrict ZOGENIX from selling the Product or other products to Persons outside the Territory. ZOGENIX shall not authorize purchasers or distributors in Other Territories to sell the Product in the Territory. However, if by operation of
law, the purchasers or distributors in Other Territories are permitted to sell the Product in the Territory, DESITIN shall receive no compensation. 

  

	3.	TRADEMARK 

  

	3.1	Subject to the terms of this Agreement, ZOGENIX hereby grants to DESITIN, its Affiliates and permitted sub-licensees a license to the Trademark for no additional
consideration. 

  

	3.2	DESITIN will use the Trademark to identify the Product and in its development and commercialisation of the Product in the Territory. Therefore, DESITIN shall use
the Trademark as part of the Product name along with such other words as ZOGENIX and DESITIN shall mutually agree are appropriate for the commercialisation of the Product in the Territory. The Trademark shall be owned and registered by ZOGENIX or
its nominee and ZOGENIX or its nominee shall ensure that the registration of such Trademark is kept valid within the Territory, unless otherwise agreed upon between the Parties in writing. 

 

	3.3	The Trademark shall only be used in connection with sale and marketing of the Product within the Field and other activities pursuant to this Agreement in the
Territory. 

  

	3.4	DESITIN shall ensure that each use by it, its Affiliates and permitted sub-licensees of the Trademark is accompanied by an acknowledgement that the Trademark is
owned by ZOGENIX. DESITIN, its Affiliates and permitted sub-licensees shall not (A) use the Trademark in a way that might materially prejudice its distinctiveness or validity or the goodwill of ZOGENIX therein, or (B) use any trademarks or
trade names so resembling the Trademark as to be likely to cause confusion or deception. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	  	 Page
 10

  

	3.5	DESITIN shall not have, assert or acquire any right, title or interest in or to the Trademark or the goodwill pertaining thereto, except as explicitly provided
in Clause 3.1 of this Agreement. 

  

	3.6	DESITIN shall give ZOGENIX prompt notice of any infringement or threatened infringement of the Trademark. ZOGENIX shall determine in its sole discretion what
action, if any, to take in response to the infringement or threatened infringement of the Trademark. 

  

	4.	PRODUCT STEERING COMMITTEE (“SC”) 

  

	4.1	The Parties shall establish a SC consisting of four (4) individuals (“Committee Members”); two of whom shall be
nominated by ZOGENIX; and two of whom shall be nominated by DESITIN. The Committee Members may be replaced by written notice to the other Party and shall be appropriately qualified and experienced in order to make a meaningful contribution to SC
meetings. 

  

	4.2	The purpose of the SC is to provide a forum for the Parties to share information on the ongoing research, development and commercialisation of the Product
including monitoring progress of clinical studies, reviewing clinical trial programmes, considering proposed marketing and promotional plans, reviewing competitor activity and discussing any regulatory, technical, quality assurance or safety issues
in relation to the Product. 

  

	4.3	The SC shall ensure the mutual exchange of Data, whether derived by Zogenix or DESITIN or their respective Affiliates or permitted sub-licensees. Each Party
shall provide to the other Party such assistance as is reasonably necessary in respect of Regulatory Approvals in their respective territories, and in particular shall provide access to such Party’s Data, to the extent the Party providing such
access is is legally and contractually permitted to do so, and, with respect to ZOGENIX providing DESITIN access, limited to DESITIN’s use in obtaining Regulatory Approvals in respect of the Product. 

 

	4.4	The SC shall meet as often as the Committee Members may determine, but in any event not less than twice per calendar year until approval of the first Marketing
Authorisation and at least annually in the subsequent commercialisation period. Either Party may request additional SC meetings insofar it deems necessary for the development or commercialisation of the Product in the Territory. The Committee
Members may invite individuals with special skills to attend meetings where it is considered to be relevant and appropriate. The quorum for SC meetings shall be two Committee Members, comprising one Committee Member from each Party. Each SC meeting
shall be chaired by ZOGENIX. The Parties shall act in good faith and cooperate with one another in the development, marketing and commercialisation of the Product in the Territory. 

 

	4.5	The SC shall take its decisions unanimously. In the event the SC is unable to take a decision unanimously, ZOGENIX shall have the final say on development and
manufacturing matters related to the Product in the Territory and DESITIN shall have final say on commercialisation matters related to the Product in the Territory (provided that DESITIN shall consult with ZOGENIX and consider any input received
from ZOGENIX with respect to any pricing discussions with Regulatory Authorities related to the Product in the Territory). 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 11

  

	5.	DEVELOPMENT AND COMMERCIALISATION OF THE PRODUCT 

  

	5.1	ZOGENIX shall, within [***] days from the Effective Date, deliver to DESITIN (to the extent available) the Licensed Know-How as of the Effective Date, to the
extent that ZOGENIX is legally and contractually permitted to do so, and as required for the development, regulatory approval, commercialisation or use of the Product in the Territory. 

 

	5.2	DESITIN shall, at its sole cost, use Reasonable Commercial and scientific Efforts (without being required to use all available resources) to develop, obtain
Marketing Authorisation(s) and commercialise the Product in the Territory, including obtaining all required approvals to market the Product in the Territory. DESTIN shall conduct its activities hereunder in a lawful manner and in accordance with the
well-established pharmaceutical product development and commercialisation practices and the competition law applicable in each respective country in the Territory, and shall cause its employees, Affiliates and permitted sub-licensees to do the same.
In particular DESITIN shall take all necessary steps to obtain Marketing Authorisation and prepare the Launch of the Product in Germany. In exploring in which other countries of the Territory the obtaining of Marketing Authorisation and the
subsequent marketing of the Product, whether by DESITIN or DESITIN’s Affiliates or by local distribution partners, is likely to be profitable and commercially feasible, DESITIN will focus on France, Italy, Spain, the United Kingdom, Denmark,
Sweden and Finland. Launch of the Product in the remaining countries of the Territory will be considered at a later stage and shall be mutually agreed. 

  

	5.3	DESITIN shall not be required to conduct any clinical or non-clinical trials, except only for one (1) study regarding bioequivalence of the Product provided
that such study is required by a competent Regulatory Authority. 

  

	5.4	The Parties shall consult on an ongoing basis as to the preparation, filing, pursuit and maintenance of regulatory submissions under this Clause 5 and no such
submission shall be made by DESITIN without ZOGENIX’s prior written approval, not to be unreasonably withheld. DESITIN shall keep ZOGENIX informed, in writing, of the status of its applications for Marketing Authorisations on a regular basis,
and in any event no less frequently than once every three months, and shall immediately notify ZOGENIX in writing of any substantial change in the status of any Marketing Authorisation or any substantive questions received from any Regulatory
Authority in respect of such Marketing Authorisations. DESITIN shall provide copies of all Marketing Authorisations to ZOGENIX at its request. 

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 12

  

	5.5	Once Marketing Authorisation is granted in Germany without any qualifications, DESITIN hereby undertakes to ZOGENIX that it will Launch the Product in Germany no
later than [***] ([***]) months after the date of the relevant Marketing Authorisation; provided that such time period shall be extended by the time period during which ZOGENIX fails to timely supply DESITIN with Product which has been
properly ordered pursuant to the terms of the applicable supply agreement. Should DESITIN fail to Launch the Product in accordance with this Clause 5.5, DESITIN further undertakes to ZOGENIX that it will promptly notify ZOGENIX of such failure
which shall be deemed a material breach of this Agreement 

  

	5.6	Once Marketing Authorisation is granted in any country of the Territory other than Germany without any qualifications, DESITIN shall (i) verify the
profitability of a possible Launch of the Product in the respective country and (ii) subject to the verification of the profitability for such country in the Territory, Launch the Product as soon as reasonably practicable and commercially
viable. 

  

	5.7	ZOGENIX shall use Reasonable Commercial Efforts to assist DESITIN to solve material issues which may arise after discussions with Regulatory Authorities on the
Product. 

  

	5.8	ZOGENIX, to the extent it is legally and contractually permitted to so do, shall take all steps which may be required by law and shall sign all necessary
documents and perform all commercially reasonable obligations which may be required in order to assure that DESITIN may market, sell and distribute the Product in the Territory under its own company name and in the manner it regards as appropriate
subject to the terms of this Agreement and any possible restrictions caused by Marketing Authorisations. 

  

	5.9	The licences granted under Clauses 2.1 and 3.1 of this Agreement will become non-exclusive in the event that DESITIN (i) will not start the study regarding
bioequivalence of the Product as referred to in Clause 5.3 within [***] ([***]) months following the receipt of the Licensed Know-How as of the Effective Date according to Clause 5.1 or (ii) has not filed a Marketing Authorisation for the
Product in Germany within [***] ([***]) months after the completion of such bioequivalence study or (iii) otherwise adhere to a mutually agreed timeline for the execution of clinical trials and submissions of Marketing Authorisations throughout
the Territory. 

  

	5.10	To the extent permissible by law, DESITIN is prohibited from advertising, circulating price lists or otherwise soliciting orders for the Product, and from
establishing or maintaining branches, sales offices or distribution depots, outside the Territory for the distribution of the Product. 

  

	6.	MANUFACTURE AND SUPPLY OF THE PRODUCT 

  

	6.1	Clinical Supply. ZOGENIX shall be the exclusive supplier of all of DESITIN’s requirements for Clinical Trial Materials in the Territory at ZOGENIX’s
Cost of Goods Manufactured. DESITIN shall purchase all of its requirements of Clinical Trial Materials in the Territory from ZOGENIX. Additional terms under which ZOGENIX shall supply Clinical Trial Materials in the Territory are set forth on
Appendix 3. 

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 13

  

	6.2	Commercial Supply. The Parties shall use Reasonable Commercial Efforts to sign the Manufacturing Agreement no later than [***] ([***]) months prior to the
anticipated first Launch of the Product in the Territory. The Manufacturing Agreement shall contain the terms set forth in this Clause 6.2 through Clause 6.6 and such other commercially reasonable and customary terms and conditions to be mutually
agreed by the Parties (including the right of DESITIN to audit ZOGENIX’s (or its Third Party contract manufacturer’s) manufacturing facilities and a forecasting mechanism which will permit ZOGENIX to properly manage its supply chain for
the Product on a worldwide basis) and such other terms as are reasonable and customary in the commercial supply of pharmaceutical compounds; provided that the Manufacturing Agreement shall be subject to the terms of any manufacturing agreement which
ZOGENIX puts into place with respect to the commercial supply of Product in the Other Territories 

  

	6.3	DESITIN acknowledges and agrees that ZOGENIX will manufacture the Product or will enter into a contractual relationship with one or several manufacturers of the
Product. Such Third Party manufacturers shall be listed in the registration documentation and manufacture the Product on ZOGENIX’s behalf in accordance with applicable law in the Territory. 

 

	6.4	Any Products supplied by ZOGENIX hereunder shall be manufactured: 

  

	 	(a)	in accordance with cGMP; 

  

	 	(b)	in compliance with the Product Specification; and 

  

	 	(c)	in compliance with all applicable and relevant national and local laws, rules and regulations, including those promulgated by any relevant Regulatory Authority.

  

	6.5	The Product shall be supplied by ZOGENIX to DESITIN as finished products ready for final packing and labelling as required in each country of the Territory
(DESITIN will be responsible for such items as set forth in Clause 7.3 as well as quality control, in each case at its own expense). Each shipment of the Product shall be accompanied by the corresponding analytical certificate attesting to the
Product’s compliance with the specification approved by the Regulatory Authority in the Territory. The Product shall be placed at DESITIN’s disposal EXW (Incoterms 2000) ZOGENIX’s manufacturing facility at such address as is notified
to DESITIN from time to time in writing. 

  

	6.6	ZOGENIX shall deliver commercial supply of the Product to DESITIN in complete batch quantities whereby each batch shall have a minimum remaining shelf life of
[***] percent ([***]%) of the shelf life approved by the United States Food and Drug Administration in the Marketing Authorisation submitted by ZOGENIX on its own behalf. 

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 14

  

	7.	MARKETING 

  

	7.1	DESITIN shall inform ZOGENIX [***] ([***]) months before the anticipated date of the first Launch of the Product in the Territory of the Key Facts of its
proposed promotion strategy regarding the Product. DESITIN shall provide ZOGENIX with copies of all promotional materials to be used in connection with the marketing and/or promotion of the Product in the Territory prior to their use. The materials
shall be submitted in the language(s) of the country or countries where they are to be used. ZOGENIX shall use Reasonable Commercial Efforts to provide a written response, either approving or suggesting reasonable changes, within [***] ([***]) weeks
of receipt of such Key Facts or promotional materials. If DESITIN does not receive a written response from ZOGENIX within this [***]-week period ZOGENIX shall be deemed to have given its approval. In case ZOGENIX does not agree with the provided Key
Facts or other statements contained in any promotional materials, ZOGENIX and DESITIN agree to discuss the Key Facts or such other statements, as applicable, in good faith. After written approval by ZOGENIX which shall not be unduly withheld or
delayed, DESITIN shall carry out marketing and promotional activities in relation to the Product in the Territory in compliance with the approved Key Facts, promotional materials and all applicable laws, rules and regulations.

  

	7.2	During the Term, DESITIN shall not, and shall ensure that its Affiliates and permitted sub-licensees shall not, market, sell, promote or distribute the Product
in the Other Territories. 

  

	7.3	DESITIN shall be responsible, at its cost, for final packaging and labelling of Product in accordance with the requirements for each country of the Territory.

  

	7.4	DESITIN shall be free to set any price for the Product in the Territory subject to discussion by the SC as provided in Clause 4.4 and applicable pharmaceutical
regulations. 

  

	7.5	Except to the extent permitted by law and as may be agreed in writing between the Parties, DESITIN shall not market, sell, promote or distribute the Product in
the respective country in the Territory unless and until DESITIN obtains the appropriate Marketing Authorisations in respect of such Product in the respective country in the Territory. 

 

	8.	PRICING 

  

	8.1	DESITIN shall purchase the Product for commercial sale from ZOGENIX at the greater of (a) the agreed Transfer Price as defined in Clause 8.3 or
(b) Cost of Goods Manufactured (collectively, the “Purchase Price”). In the event that Purchase Price is greater than the higher of [***]€ or US$[***], DESITIN shall have the right to terminate this Agreement as set forth in
Section 21.7. 

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 15

  

	8.2	Transfer Price shall be subject to adjustment on an annual basis beginning in 2009 based on data for the prior year (e.g., increases for information reported for
2008 shall apply to 2009 Transfer Prices) as of May 31 beginning with May 31, 2009, in accordance with the annual percentage change in the European pricing index of industrial products (“Erzeugerpreise industrieller Produkte auf dem
Inlandsmarkt—Gesamte Industrie ohne Baugewerbe—Eurozone”; Source: EUROSTAT), except as otherwise mutually agreed by the Parties. 

  

	8.3	The Transfer Price (EXW (Incoterms 2000)) shall be calculated according to the following table and subject to adjustment as set forth in Clause 8.2:

  

				
	 Annual Units
	  	 Transfer Price (EUR)
	 
	[***]	  	[	***] 
	[***]	  	[	***] 
	[***]	  	[	***] 

 By way of
example, if DESITIN or its Affiliates were to purchase an aggregate of [***] units in a calendar year 2008, the total Transfer Price for such calendar year would be calculated as follows: ([***] x [***]€) + ([***] x [***]€) + ([***] x
[***]€) = [***]€. 
  

	9.	ROYALTIES 

  

	9.1	DESITIN shall pay ZOGENIX a royalty equal to [***]% of the DESITIN’s Net Sales (“Royalty”). 

 

	9.2	Royalties will not be payable on sales realised by regional distributors or Third Parties so long as such sales have been included in DESITIN’s Net Sales
upon first sale or distribution to such regional distributors or Third Parties or are otherwise invoiced directly by DESITIN and as a result included in DESITIN’s Net Sales. 

 

	9.3	No Royalties shall accrue on the disposition of the Product as Samples (promotional or otherwise), donations or for clinical trials, provided that such level of
sampling or donations are generally consistent with industry standards and in any event after expiry of [***] ([***]) months upon Launch does not exceed [***]% of the gross revenues of the Product in the Territory. 

 

	9.4	The obligation to pay a Royalty under Clause 9.1 for a Product shall continue throughout the Term. 

 

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 16

  

	10.	PAYMENT TERMS 

  

	10.1	DESITIN shall make any other payments than Royalties due under this Agreement in United States Dollars within [***] ([***]) days of receipt of the invoice for
Product (which date shall be no earlier than the date of delivery of the Product). Invoices shall be sent via fax and by internationally recognized overnight courier to DESITIN’s address for notices hereunder. 

 

	10.2	All right, title and risk in the Product passes to DESITIN upon delivery of Product to DESITIN in accordance with this Agreement. 

 

	10.3	DESITIN agrees to make payments and written reports to ZOGENIX within [***] ([***]) days after the end of each calendar quarter covering all sales of the Product
in the Field in the Territory by DESITIN, its Affiliates or permitted sub-licensees for which invoices were sent during such calendar quarter, each such written report stating for the period in question: (i) for Product disposed of in the
Territory by sale, the quantity and description of Product, (ii) for Product disposed of in the Territory other than by sale, the quantity, description, and nature of the disposition, (iii) the calculation of DESITIN’s Net Sales for
such quarter and year-to-date DESITIN’s Net Sales; and (iv) the calculation of the amount due to ZOGENIX for such quarter pursuant to Clause 9 on account of such DESITIN’s Net Sales. The information contained in each report under this
Clause 10.3 shall be considered Confidential Information of DESITIN. Concurrent with the delivery of each quarterly report, DESITIN shall make the payment due ZOGENIX hereunder in United States Dollars for the calendar quarter covered by such
report. 

  

	10.4	All amounts not paid to the other Party when due shall accrue interest daily at the lesser of an annual rate of (a) [***] or (b) [***].

  

	10.5	All sums payable hereunder are expressed to be exclusive of VAT or other similar tax. Notwithstanding the foregoing, any income or other taxes on any monies
payable to ZOGENIX which DESITIN is required by law to pay or withhold on behalf of ZOGENIX, shall be deducted by ZOGENIX from such monies due. DESITIN shall furnish ZOGENIX with proof of such payments. Any such tax required to be paid or withheld
shall be an expense borne solely by DESITIN, and ZOGENIX may request reimbursement from DESITIN for any such amounts. DESITIN shall promptly provide ZOGENIX with a certificate or other documentary evidence to enable ZOGENIX to support a claim for a
refund or a foreign tax credit with respect to any such tax so withheld or deducted by DESITIN. At ZOGENIX’s request, DESITIN shall reasonably cooperate to support any claim by ZOGENIX for such a refund or credit. The Parties will reasonably
cooperate in completing and filing documents under the provisions of any applicable tax treaty or under any other applicable law, in order to enable DESITIN to make such payments to ZOGENIX without any deduction for withholding.

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 17

  

	11.	RECORDS AND REPORTS 

  

	11.1	During the Term, DESITIN shall, and shall procure that its Affiliates shall, keep at its normal place of business full, complete, accurate and up to date records
and books of account recording DESITIN’s Net Sales sufficient to ascertain the Royalties payable under this Agreement. 

  

	11.2	Upon no less than [***] ([***]) Business Days notice from ZOGENIX, DESITIN shall make such records and books of account available for audit during business hours
to ZOGENIX or its nominee (but not more than [***] in any calendar year). 

  

	11.3	ZOGENIX shall be solely responsible for its costs and expenses in making any such audit and inspection unless ZOGENIX properly identifies a discrepancy in the
Royalties paid in any calendar year from those properly payable under this Agreement for that calendar year of greater than [***]%, in which event DESITIN shall pay ZOGENIX’s reasonable cost incurred in connection with the audit and inspection,
and promptly make good the deficit in the Royalty payments. Upon the expiration of [***] months from the end of any calendar year the calculation of Royalties payable with respect to such year shall be binding and conclusive, and DESITIN shall be
released from any liability or accountability with respect to Royalties for such year. 

  

	11.4	All information disclosed by DESITIN, its Affiliates or its permitted sub-licensees pursuant to Clauses 11.1 through 11.3 shall be deemed Confidential
Information of DESITIN, its Affiliates or its permitted sub-licenses, as the case may be. 

  

	11.5	DESITIN shall advise ZOGENIX of any legislation, rule, regulation or other law (including but not limited to any customs, tax, foreign exchange or foreign trade,
antimonopoly, pharmaceutical products or intellectual property law) which is in effect or which may come into effect in the Territory after the date of this Agreement and which may affect the importation of the Products into the Territory or the use
of the Products or the protection of the Licensed Technology as soon as DESITIN received notice thereof or would otherwise reasonably be expected to have notice thereof. 

 

	12.	INFRINGEMENT OF RIGHTS BY THIRD PARTY 

  

	12.1	ZOGENIX shall have the first right, but not the obligation, to take action in respect of any infringement of the Licensed Technology in the Territory, including
but not limited to, commencing any claim or proceedings for injunctive, compensatory or other remedies or relief (collectively “Remedies”) as may be necessary or desirable to prevent such infringement and preserve the Licensed
Technology. DESITIN shall permit any such Remedies to be brought in its name if permitted or required by law. ZOGENIX may compromise or settle any of the Remedies in its sole discretion, provided that, ZOGENIX shall not make any settlement or
compromise that adversely affects the interests of DESITIN in respect of the Product in the Territory without the prior consent of DESITIN, such consent not to be unreasonably withheld or delayed. 

 

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 18

  

	12.2	In the event that ZOGENIX elects not to pursue any Remedies with respect to the Licensed Technology in the Territory within [***] ([***]) days after notice in
writing from DESITIN requesting ZOGENIX to do so, DESITIN shall have the right, but not the obligation, to pursue Remedies against such Third Party infringer, provided that: 

 

	 	(a)	DESITIN does not make any settlement or compromise that affects the interests of ZOGENIX in the Product without the prior written consent of ZOGENIX, such consent not
to be unreasonably withheld or delayed; and 

  

	 	(b)	if ZOGENIX has commenced negotiations with such Third Party for discontinuance of the infringement within such [***] ([***]) day period, ZOGENIX shall have an
additional [***] ([***]) day period to conclude its negotiations before DESITIN may pursue any Remedies under this Clause 12.2. 

  

	12.3	In the event that either Party pursues the Remedies under clauses 12.1 or 12.2: 

 

	 	(a)	the other Party shall use all reasonable efforts to assist and cooperate with the Party pursuing such Remedies, including providing access to relevant materials,
personnel, documents and other evidence; and 

  

	 	(b)	each Party shall bear its own costs and expenses relating to its pursuit of Remedies or in providing assistance and cooperation; and 

 

	 	(c)	any damages or other amounts awarded to either Party shall be distributed as follows: 

 

	 	(i)	to the Party that pursued the Remedies, to cover its legal costs and expenses incurred; and then 

 

	 	(ii)	to the other Party, to cover its legal costs and expenses, if any, relating to the pursuit of such Remedies; and then 

 

	 	(iii)	any remaining amount, after the deductions set out above shall be retained by DESITIN, except that ZOGENIX shall receive a portion equivalent to the Royalties it would
have received under this Agreement if such remaining amount were deemed DESITIN’s Net Sales. 

  

	13.	INFRINGEMENT OF THIRD PARTY RIGHTS 

  

	13.1	In the event that a Third Party institutes or threatens to institute a patent, trade secret or other infringement proceeding against either Party or its
Affiliates during the Term, alleging that its or their manufacture, use or sale of the Product in the Territory infringes the Third Party’s Intellectual Property Rights (a “Third Party Action”), each Party shall promptly notify the
other of the Third Party Action with such details as it has in its possession and the Parties shall promptly convene a meeting of the SC to discuss the best way to respond. 

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 19

  

	13.2	Upon receipt of any such notice the SC shall discuss the potential infringement and to the extent necessary attempt to agree on a course of action. Such course
of action may include: 

  

	 	(a)	obtaining an appropriate license from the Third Party; 

  

	 	(b)	contesting any claim or proceedings brought by the Third Party; or 

  

	 	(c)	bringing a declaratory judgment action against such Third Party. 

  

	13.3	ZOGENIX shall have the first right but not the obligation, to take any action agreed upon by the Parties in respect of the Third Party Action. If within [***]
days the Parties fail to agree upon an appropriate course of action through discussions of the SC, ZOGENIX may decide upon the course of action with respect to any Third Party Action and may commence such action or negotiate a license with such
infringed Third Party. 

  

	13.4	Neither Party shall settle any Third Party Action relating to the Product if such settlement admits the invalidity or unenforceability of any of the Licensed
Technology, except as agreed in writing between the Parties. 

  

	13.5	In the event that the SC determines that DESITIN is best positioned to commence any action in relation to or defence of the Third Party Action, DESITIN shall be
entitled to credit up to [***]% of its reasonable costs and expenses (including legal and expert fees) or any Third Party royalties incurred against any royalty payment otherwise payable to ZOGENIX under this Agreement. In the event that no such
royalty payments are payable by DESITIN under this Agreement at the time of the Third Party Action, up to [***]% of any reasonable costs and expenses or Third Party royalties incurred by DESITIN in connection with the Third Party Action shall be
reimbursed by ZOGENIX on a Quarterly basis. In addition, in any such action which DESITIN commences as permitted by this Clause 13, DESITIN shall seek ZOGENIX’s consent prior to concluding any settlement agreement, which consent can be withheld
in its sole discretion. 

  

	13.6	In any such Third Party Action, the Parties shall cooperate with each other in connection with any such claim, suit or proceeding and shall keep each other reasonably
informed of any material developments in connection with any such claim, suit or proceeding, including providing access to relevant documents, material, personnel or other evidence. 

 

	14.	INDEMNIFICATION AND INSURANCE 

  

	14.1	ZOGENIX shall defend, indemnify and hold harmless DESITIN, its Affiliates and its and their officers, directors, employees, agents and contractors
(“DESITIN Parties”) from and against any and all claims, actions, demands, losses, damages, costs and reasonable expenses (including reasonable legal and expert fees) made or brought by Third Parties (“Claims”)
arising from or in connection with: 

  

	 	(a)	the personal injury or death caused by the defective design and/or manufacture of the Product when supplied to DESITIN by ZOGENIX or its designee; or

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	  	 Page
 20

  

	 	(b)	the breach of the warranties given by ZOGENIX under this Agreement, or 

  

	 	(c)	the negligence of ZOGENIX Parties (as defined below) in the research, development, marketing, distribution, sale or use of the Product before the Effective Date both in
or outside the Territory, or 

  

	 	(d)	the negligence of ZOGENIX Parties in the research, development, marketing, distribution, sale or use of the Product following the Effective Date outside the Territory,

  

	 	provided	that, in each case, such Claims do not arise from the negligence or wilful default of the DESITIN Parties. 

 

	14.2	DESITIN shall defend, indemnify and hold harmless ZOGENIX, its Affiliates and its and their officers, directors, employees, agents and contractors (the
“ZOGENIX Parties”) from and against any and all Claims arising from or in connection with: 

  

	 	(a)	the development, marketing, distribution, sale or use of the Product in the Territory after the Effective Date; 

 

	 	(b)	the negligence by DESITIN Parties in relation to the development, marketing, distribution, sale or use of the Product in the Territory after the Effective Date; or

  

	 	(c)	the breach of the warranties given by DESITIN under this Agreement, 

 provided that, in each case, such Claims do not arise from the negligence or wilful default of the ZOGENIX Parties. For the avoidance of doubt DESITIN shall in no event be liable for any claims arising
from or in connection with the infringement of Third Party Rights, particularly patents and trademarks, caused by the manufacture or composition of the Product or the use of the Trademark. 

 

	14.3	Each Party shall promptly provide the other Party with copies of all papers and official documents received in respect of any Claims and shall cooperate as
reasonably requested by the other Party in the defence of any Claims. The Party which is indemnifying the other Party hereunder shall have control of, and discretion in, the handling of the defense and/or settlement of any such Claim, including,
without limitation, the selection of defense counsel; provided, however, that the indemnified Party may take any appropriate action necessary to preserve or avoid prejudice to its interests, or the interests of the indemnifying Party, in the event
that (1) notice to the indemnifying Party cannot be given in sufficient time for such Party to take action, or (2) the indemnifying Party, after prompt notice and inquiry from the indemnified Party, fails to acknowledge its obligation to
indemnify the indemnified Party under this Clause 14. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 21

  

	14.4	Each Party shall maintain, at its own cost, comprehensive product liability insurance and general commercial liability insurance adequate to cover their
respective obligations under this Agreement in such amount as the Parties customarily maintain with respect to its other products and which is reasonable and customary in the pharmaceutical industry in their respective territories for companies of
comparable size and activities. Each Party shall maintain such insurance policy for not less than [***] ([***]) years following the expiry or termination of this Agreement. A certificate of insurance and any other documentation necessary to prove
compliance with this provision will be provided to the other Party upon request. 

  

	14.5	TO THE FULL EXTENT PERMITTED BY LAW, APART FROM THE FOREGOING WARRANTIES AND INDEMNITY OR SUCH WARRANTIES OR INDEMNITY AS MAY BE CONTAINED WITHIN THE
MANUFACTURING AGREEMENT, NEITHER PARTY MAKES ANY ADDITIONAL REPRESENTATIONS OR WARRANTIES AND HEREBY DISCLAIMS ALL WARRANTIES, REPRESENTATIONS, AND LIABILITIES, WHETHER EXPRESS OR IMPLIED, ARISING FROM CONTRACT OR TORT (EXCEPT FRAUD), IMPOSED BY
STATUTE OR OTHERWISE, RELATING TO THE PRODUCTS AND/OR ANY LICENSED TECHNOLOGY, INCLUDING ANY WARRANTIES AS TO MERCHANTABILITY, FITNESS FOR PURPOSE, CORRESPONDENCE WITH DESCRIPTION, OR NON-INFRINGEMENT. 

 

	14.6	IN NO EVENT WILL EITHER PARTY BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGES, INCLUDING ANY LOSS OF PROFITS, EVEN IF THE OTHER PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES. 

  

	15.	IMPROVEMENTS AND PATENTS 

  

	15.1	All right, title and interest in any Intellectual Property Right created, generated or arising in connection with the Product and any Improvement thereof,
whether invented solely by ZOGENIX, DESITIN or jointly by the Parties, shall be solely owned by ZOGENIX. 

  

	15.2	Each Party shall promptly disclose to the other any Improvements developed during the Term, and all such Improvements shall be deemed to the fullest extent
possible to be works made for hire exclusively for ZOGENIX, with ZOGENIX having sole ownership of such Improvements and the sole right to obtain and to hold in its own name patents, copyrights, or such other protection as ZOGENIX may deem
appropriate to the subject matter, and any extensions or renewals thereof (though ZOGENIX is under no obligation to file any patent application, secure or maintain any patent or register any copyright). To the extent DESITIN or its Affiliates
nonetheless maintain any rights in and to any Improvements, DESITIN and its Affiliates hereby assign, cede and grant to ZOGENIX all rights to possession of, and all right, title, and interest, including all patents and copyrights and the right to
prepare and exploit derivative works, in such Improvements. DESITIN agrees to give ZOGENIX or any person designated by ZOGENIX at ZOGENIX’s expense, all assistance reasonably required to perfect the rights hereinabove defined, including the
execution of documents and assistance or cooperation in legal proceedings. 

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 22

  

	15.3	In the event that either Party identifies any Third Party Intellectual Property Rights that in such Parties’ reasonably opinion would provide a commercial
benefit to the Product, it shall promptly inform the Other Party of such Intellectual Property Rights through the SC and the Parties shall in good faith discuss whether they intend to license or acquire such Third Party rights. In the event a
license in such Third Party Intellectual Property Right shall be taken, ZOGENIX shall negotiate and enter into such license including the right to sub-license its rights to DESITIN. Any sublicense of rights shall be set forth in a separate
sub-license agreement to be entered into between DESITIN and ZOGENIX and shall include terms substantially similar to those contained in this Agreement; provided that DESITIN and ZOGENIX shall equally share all Third Party license fees incurred.

  

	15.4	ZOGENIX shall, at its sole cost and expense, using patent attorneys of its choice, use Reasonable Commercial Efforts to file, prosecute and maintain the patents,
patent obligations and other Intellectual Property Rights related to the Licensed Technology in the Territory. Any costs relating to the filing of these Intellectual Property Rights in the Territory shall be borne by ZOGENIX.

  

	15.5	ZOGENIX shall, at its sole cost and expense, using trademark attorneys of its choice, use Reasonable Commercial Efforts to file, prosecute, maintain and enforce
the Trademark in the Territory. 

  

	16.	RIGHT OF FIRST REFUSAL 

  

	16.1	ZOGENIX hereby grants to DESITIN for the Term the right of first refusal to in-license any Product line extensions (including new or additional therapeutic uses)
which DESITIN desires to market in the Territory as set forth in this Clause 16 (the “ROFR”). 

  

	16.2	Following ZOGENIX’s decision to offer for license any Product line extension in the Territory, ZOGENIX shall promptly inform DESITIN in all relevant detail
of any such Product line extensions, thus giving DESITIN a meaningful basis for taking a decision on whether or not to exercise the ROFR. 

  

	16.3	For a period of no more than [***] ([***]) months after ZOGENIX has supplied DESITIN with the information referred to in Clause 16.2 (the “Review
Period”) DESITIN may exercise the ROFR by providing written notice to ZOGENIX within the Review Period of DESITIN’s desire to exercise the ROFR. The Parties shall thereafter negotiate in good faith for a period of no longer than [***]
([***]) additional months, the terms and conditions on which such Product line extension would be included within this Agreement, if at all. If the Parties are unable to reach agreement following the expiration of such additional [***] ([***])-month
period, ZOGENIX shall thereafter be permitted to license any such Product line extension to a Third Party on terms no more favourable to such Third Party than those most recently offered by DESITIN. 

 

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 23

  

	17.	REGULATORY 

  

	17.1	DESITIN shall, at its sole cost, use Reasonable Commercial Efforts (without being required to use all available resources) to prepare, file, prosecute and
maintain the Marketing Authorisations and other permits required for the commercialisation of the Product in the Territory. 

  

	17.2	Each Marketing Authorisation will be registered in DESITIN’s name. 

 

	17.3	DESITIN shall act as ZOGENIX’s consultant and representative towards the MOH and the other relevant authorities or third parties in connection with
obtaining and maintaining the Marketing Authorisation for the Product in the Territory. 

  

	17.4	ZOGENIX undertakes and covenants to DESITIN that it will not during the Term apply for an additional Marketing Authorisation relating to the Product in the
Territory nor will ZOGENIX during the Term apply for or otherwise seek the benefit of any substitute of the Marketing Authorisation. 

  

	17.5	ZOGENIX shall keep DESITIN fully informed of any changes to the Product which it reasonably believes might be relevant in relation to the Marketing
Authorisation. ZOGENIX shall not discontinue the supply of the Product containing the previous specifications unless all requirements set by a Regulatory Authority in the Territory for the maintenance or the renewal of the Marketing Authorisation
issued by it have been complied with. 

  

	17.6	DESITIN shall be responsible, as the case may be, for obtaining reimbursement for the Product on behalf of ZOGENIX in the Territory. ZOGENIX shall assist DESITIN
in obtaining reimbursement by providing all reasonable support and all Data as may be required by the relevant Regulatory Authority. 

  

	18.	PHARMACOVIGILANCE 

  

	18.1	The Parties shall use Reasonable Commercial Efforts to sign the Pharmacovigilance Agreement no later than [***] ([***]) months prior to the anticipated first
Launch of the Product in the Territory. 

  

	18.2	If there is any inconsistency between this Agreement and the Pharmacovigilance Agreement the terms of this Agreement will prevail between the Parties to the
extent of such inconsistency. 

  

	19.	EXCHANGE OF INFORMATION 

  

	19.1	DESITIN shall use the Dossier only during the Term and in furtherance of its rights and obligations under this Agreement. 

 

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 24

  

	19.2	DESITIN undertakes to neither sell nor otherwise make available to any Third Party the Dossier or any part thereof without a previous written approval from
ZOGENIX. 

  

	19.3	ZOGENIX will inform DESITIN promptly if the competent Regulatory Authority or any other competent authority gives notice to ZOGENIX or its Affiliates of any
difficulties or delays regarding the grant of the Marketing Authorisation in the U.S.A. or of any further studies to be conducted by ZOGENIX to obtain Marketing Authorisation in the U.S.A. 

 

	20.	[Intentionally Omitted] 

  

	21.	TERM AND TERMINATION 

  

	21.1	The term of this Agreement will continue on a country-by-country basis until the greater of ten (10) years after the Launch or the expiration in such country of
the last to expire Patent Right included in the Licensed Technology or Improvements licensed hereunder (the “Initial Term”). 

  

	21.2	After the Initial Term and only with respect to countries of the Territory where the Product has been successfully Launched, this Agreement shall be
automatically renewed on a country-by-country basis by additional successive periods of [***] ([***]) years unless it is terminated by either Party giving [***] ([***]) month’s prior written notice. 

 

	21.3	Either Party shall be entitled to terminate the Agreement if: 

  

	 	(a)	the other Party commits a material breach under this Agreement and in the case of a breach which is capable of remedy fails to remedy it within [***] ([***]) days of
receipt of notice from the first Party of such breach and of its intention to exercise its rights under this Clause; 

  

	 	(b)	the other Party enters into insolvency or bankruptcy or is unable to pay its debts as they fall due, or a trustee or receiver or the equivalent is appointed to the
other Party, or proceedings are instituted against the other Party relating to dissolution, liquidation, winding up, bankruptcy, insolvency or the relief of creditors, if such proceedings are not terminated or discharged within [***] ([***]) days;

  

	 	(c)	any law, decree, or regulation is enacted within the Territory which would substantially impair or restrict (1) the terminating Party’s right to terminate or
elect not to renew this Agreement as herein provided; (2) ZOGENIX’s right, title or interest in the Products or the Intellectual Property Rights therein; (3) as to DESITIN, DESITIN’s right to market and distribute the Products in
accordance with this Agreement; or (4) as to ZOGENIX, ZOGENIX’s right to collect the Purchase Price or Royalties as set forth in this Agreement; or 

 

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 25

  

	 	(d)	an adverse event occurs which has substantially impaired the other Party’s ability to continue to perform its obligations hereunder and the other Party is unable
to provide the terminating Party with adequate assurance of future performance. 

  

	21.4	Either Party shall be entitled to terminate this Agreement with [***] ([***]) days written notice without any damage, legal redress or compensation due it if the
continued development or marketing of the Product is no longer possible due to advice from a relevant Regulatory Authority or clinical review board in the Territory or due to serious adverse events caused by the Product anywhere in the world.

  

	21.5	DESITIN shall be entitled to immediately terminate this Agreement with written notice and without any damage, legal redress or compensation due to ZOGENIX in
case: 

  

	 	(a)	a competent Regulatory Authority imposes therapeutic indications in the Territory not acceptable to DESITIN or require the Product to be marketed as generic drug in the
Territory; or 

  

	 	(b)	the Regulatory Authorities in the Territory require more than one study regarding bioequivalence of the Product to obtain Marketing Authorisation.

  

	21.6	ZOGENIX shall be entitled to terminate this Agreement with thirty (30) days written notice without any damage, legal redress or compensation due to DESITIN
in case: 

  

	 	(a)	 DESITIN in each of
[***] consecutive calendar years (other than any partial
calendar year in which the Product is first Launched) fails to meet at least [***]% of the mutually agreed sales forecasts provided that such shortfall is caused by circumstances within DESITIN’s reasonable control;

  

	 	(b)	DESITIN takes any act or step impairing the Intellectual Property Rights of ZOGENIX or does anything that might otherwise adversely affect the Intellectual Property
rights of ZOGENIX (whether DESITIN’s act or challenge of ZOGENIX’s rights is in good faith) and, if the act or step is capable of remedy, fails to remedy it within thirty (30) days of receipt of notice from ZOGENIX of such act or step
and of its intention to exercise its rights under this Clause 21.6; or 

  

	 	(c)	DESITIN ceases to carry on business in the marketing of pharmaceutical products in the Territory. 

 

	21.7	DESITIN shall be entitled to terminate this Agreement with [***] ([***]) days’ prior written notice under the conditions set forth in Section 8.1.
Following the effective date of such termination, ZOGENIX shall reimburse DESITIN for [***] percent ([***]%) of the Third Party costs incurred by DESITIN in connection with clinical development and regulatory approval of the Product in the Territory
under this Agreement, upon receipt of reasonably detailed documentation supporting such costs and such other supporting documentation as ZOGENIX may reasonably request. In no event shall the amounts reimbursed DESITIN pursuant to this
Section 21.7 exceed US$[***]. 

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 26

  

	22.	CONSEQUENCES OF TERMINATION 

  

	22.1	On expiration or termination of the Agreement for any reason whatsoever, the License granted under this Agreement shall cease and DESITIN shall, and shall
procure that its Affiliates and permitted sub-licensees shall: 

  

	 	(a)	Cease to carry out any of the activities permitted by this Agreement (or any relevant sub-license agreement) and cease to use or exploit in any way the Licensed
Technology; 

  

	 	(b)	Refrain from using the Trademark; and 

  

	 	(c)	Continue to treat the Licensed Know-how and any other information provided by ZOGENIX as secret and confidential according to Clause 23 hereof.

 In addition, on expiration of the Agreement or termination of the Agreement by ZOGENIX pursuant to Clauses 21.3
or 21.6, DESITIN shall grant to ZOGENIX a perpetual, royalty free license to use any trademark which DESITIN used in the commercialization of the Product in the Territory in connection with subsequent commercialization of the Product in the
Territory by or on behalf of ZOGENIX; provided, however, that such license shall not include a right for ZOGENIX to use the word DESITIN in any subsequent commercialization of the Product in the Territory. 

 

	22.2	DESITIN, its Affiliates and its permitted sub-licensees shall be entitled to continue to sell existing stocks of the Product in the Territory for a period of no
longer than [***]([***]) months following the date of termination, provided that DESITIN pays ZOGENIX any Royalty payments due in respect of such sales in accordance with the provisions of this Agreement. 

 

	22.3	The termination or expiry of this Agreement shall not release either of the Parties from any liability which at the time of termination or expiry has already
accrued to the other Party, nor affect in any way the survival of any other right, duty or obligation of the Parties which is expressly stated elsewhere in this Agreement to survive such termination or expiry. 

 

	23.	CONFIDENTIALITY 

  

	23.1	The Parties, their Affiliates and their respective employees, directors, officers, consultants and contractors shall keep and maintain as confidential any
Confidential Information supplied by the other Party prior to the Effective Date or during the Term. The confidentiality and non-disclosure obligations contained in this Agreement shall not apply to the extent that such Confidential Information is:

  

	 	(a)	at the time of disclosure by one Party to the other, in the public domain or otherwise publicly known; 

 

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	  	 Page
 27

  

	 	(b)	after disclosure by one Party to the other becomes part of the public domain, other than by breach of any obligation of confidentiality; 

 

	 	(c)	information which the receiving Party can establish by documentary evidence was already in its possession at the time of receipt or was independently developed by the
receiving Party; or 

  

	 	(d)	received from a Third Party who was lawfully entitled to disclose such information. 

 

	23.2	Notwithstanding clause 23.1, the Party receiving Confidential Information may disclose such Confidential Information: 

 

	 	(a)	to governmental or other regulatory agencies in order to file patent applications or prosecute such applications to grant, provided that, the disclosure is limited to
the extent reasonably required; provided that this sub-clause (a) shall only be applicable to Confidential Information of DESITIN received by ZOGENIX as it relates to Licensed Technology; or 

 

	 	(b)	to government or other Regulatory Authorities in order to file or prosecute any applications for Marketing Authorisations or other permits reasonably required to
research, develop, manufacture, use, distribution, sale or supply the Licensed Product, provided that the disclosure is limited to the extent reasonably required and is consistent with the rights of the Party under this Agreement; or

  

	 	(c)	to the extent that such disclosure has been ordered by a court of law or directed by a governmental body or authority in an enforceable decision, provided that, the
Confidential Information may be disclosed only to the extent so ordered or directed and wherever practicable, the Party that owns the Confidential Information has been given sufficient written notice in advance to enable it to seek protection or
confidential treatment of such Confidential Information. 

  

	23.3	Neither Party shall disclose any information about this Agreement without the prior written consent of the other. However, the Parties intend to announce the
execution and delivery of this Agreement promptly following such execution and delivery pursuant to the form of press release attached to this Agreement as Exhibit 23.3. Consent shall not be required, however, for (a) disclosures to tax
authorities or to bona fide potential sub-licensees, to the extent required or contemplated by this Agreement, provided, that in connection with such disclosure, each Party agrees to use its commercially reasonable efforts to secure confidential
treatment of such information; (b) disclosures of information for which written consent has previously been obtained, or (c) information which had previously been publicly disclosed, including pursuant to the press release described above.
Each Party shall have the further right to disclose the terms of this Agreement as required by applicable law, including the rules and regulations promulgated by the Securities and Exchange Commission and/or the regulatory bodies/authorities
governing securities issues in foreign jurisdictions and to disclose such information to stockholders or potential investors as is customary, provided the disclosing Party provides to the other Party, to the extent practicable, a copy of the
information to be disclosed and an opportunity to comment thereon prior to such disclosure, and, to the extent practicable, consults within a reasonable time in advance of the proposed disclosure with the other on the necessity for the disclosure
and the text of the proposed release. Any copy of this Agreement to be filed with the Securities and Exchange Commission shall be redacted to the reasonable satisfaction of both Parties; provided, however, in the event that the Securities and
Exchange Commission objects to the redaction of any portion of the Agreement after the initial submission, the filing Party shall inform the other Party of the objections and shall in good faith respond to the objections in an effort to limit the
disclosure required by the Securities and Exchange Agreement, but in any event the filing Party shall be free to include any portions of the Agreement it deems necessary to respond to the objections in any future filings. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	  	 Page
 28

  

	24.	REPRESENTATIONS AND WARRANTIES 

  

	24.1	ZOGENIX and DESITIN each warrant that, as of the Effective Date: 

  

	 	(a)	it is a company duly organised and existing and has the power and authority to enter into this Agreement; 

 

	 	(b)	it has obtained all corporate authorisations required to enter into and perform its obligations under this Agreement; 

 

	 	(c)	there are no agreements between it and any Third Party that conflict with this Agreement; 

 

	 	(d)	no consent, approval, authorization or order of any court or governmental agency or body or Third Party is required for the execution and delivery by it of this
Agreement; 

  

	 	(e)	it has all rights necessary to perform its obligations under this Agreement, including the grant of rights by ZOGENIX hereunder; and 

 

	 	(f)	this Agreement is valid and binding obligation enforceable against it in accordance with its terms and conditions. 

 

	24.2	ZOGENIX warrants that, as of the Effective Date: 

  

	 	(a)	to the best of ZOGENIX’s knowledge, the sale and use of the Product does not infringe the Intellectual Property Rights of any Third Parties in the Territory and no
court proceedings or other proceeding for infringement of Intellectual Property rights have been brought against ZOGENIX with respect to the Product in the Territory; 

 

	 	(b)	to the best of ZOGENIX’s knowledge, no Third Party is infringing or has infringed any of ZOGENIX’s Intellectual Property Rights in the Licensed Technology in
the Territory or has misappropriated any of the Licensed Know How in the Territory. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 29

  

	25.	FORCE MAJEURE 

  

	25.1	Neither Party shall be entitled to terminate this Agreement or shall be liable to the other under this Agreement for loss or damages attributable to any Force
Majeure, provided the Party affected shall give prompt notice thereof to the other Party. The Party giving such notice shall be excused from such of its obligations hereunder for so long as it continues to be affected by Force Majeure.

  

	25.2	 If such Force Majeure continues unabated for a period of at least [***] ([***]) days, the Parties will meet to discuss in good faith what actions to take or what modifications should be made to this
Agreement as a consequence of such Force Majeure in order to alleviate its consequences on the affected Party. 

  

	26.	NOTICES 

  

	26.1	Any notice or other document given under this Agreement shall be in writing in the English language and shall be given by hand or sent by internationally
recognized overnight courier, by fax transmission to the address of the receiving Party as set out in Clause 26.3 below unless a different address or fax number has been notified to the other in writing for this purpose. 

 

	26.2	Each such notice or document shall: 

  

	 	(a)	if given by hand, be deemed to have been given when delivered at the relevant address; 

 

	 	(b)	if sent by internationally recognized overnight courier, be deemed to have been given two (2) Business Days following delivery to such overnight courier; and

  

	 	(b)	if sent by fax transmission, be deemed to have been given when transmitted provided that a confirmatory copy of such facsimile transmission shall have been given by
hand or sent by internationally recognized overnight courier as set forth herein. 

  

	26.3	The address for services of notices and other documents on the Parties shall be: 

 

									
	To DESITIN	 		 	To ZOGENIX
					
	Name:	 	Desitin Arzneimittel GmbH	 		 	Name:	 	Zogenix, Inc.
	Attn.:	 	Dr. Martin Zentgraf	 		 	Attn.:	 	Chief Financial Officer
	 Address:
	 	 Weg beim Jänger 214
 22335
Hamburg, Germany
	 		 	 Address:
	 	 11682 El Camino Real
 Suite
320
 San Diego, CA 92130, USA

	Fax:	 	0049 40 59 101 366	 		 	Fax:	 	001 858 259 1166
	E-Mail:	 	zentgraf@desitin.de	 		 	E-Mail:	 	dnassif@zogenix.com

  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	  	 Page
 30

  

	27.	ASSIGNMENT 

  

	27.1	Neither Party shall assign any of its rights or obligations under this Agreement to a Third Party without the prior written consent of the other, such consent
not to be unreasonably withheld, conditioned or delayed. ZOGENIX may assign its rights and obligations under this Agreement, without the prior written consent of DESITIN, to any Third Party purchaser of all or substantially all of the assets or
business to which this Agreement relates. 

  

	27.2	Either Party may at any time assign any of its rights under this Agreement to an Affiliate, provided however, that such Party remains fully liable for the
performance of such Party’s obligations hereunder by such Affiliate; provided further that any rights assigned by DESITIN to an Affiliate shall be immediately reassigned to DESITIN or assigned to an Affiliate of DESITIN if the assignee ceases
to be an Affiliate. 

  

	27.3	Either Party may at any time engage a contract research organisation to manage any non-clinical or clinical studies required under or in connection with the
Marketing Authorisation process. 

  

	27.4	Any assignment in violation of this Clause 27 shall be null and void. This Agreement shall be binding on and shall inure to the benefit of the permitted
successors and assigns of the Parties hereto. 

  

	28.	GENERAL PROVISIONS 

  

	28.1	The relationship of ZOGENIX and DESITIN established by this Agreement is of independent contractors, and nothing in this Agreement shall be construed:
(1) to give either Party the power to direct or control the daily activities of the other Party, or (2) to constitute the Parties as principal and agent, partners, or otherwise as participants in a joint undertaking. ZOGENIX shall have no
obligation or authority, express or implied, to exercise any control whatsoever over the employees or the business affairs of DESITIN. Except as specifically provided in this Agreement, DESITIN shall have no power or authority to make or give any
representation or warranty or to incur any liability or obligation, or to waive any right, on ZOGENIX’s behalf. 

  

	28.2	Each of the Parties shall do execute and perform all such further acts, deeds documents and things as the other Party may reasonably require from time to time to
give full effect to the terms of this Agreement. 

  

	28.3	Each Party shall pay its own costs, charges and expenses incurred in connection with the negotiation, preparation and completion of this Agreement.

  

	28.4	This Agreement, its schedules and the agreements contemplated herein (particularly the Pharmacovigilance Agreement and the Manufacturing Agreement) set out the
entire agreement and understanding between the Parties in respect of the subject matter of this Agreement and supersede any heads of agreement which shall cease to have any further force or effect. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	  	 Page
 31

  

	28.5	No variation of this Agreement, including this Clause 28.5, shall be valid unless it is in writing and signed by or on behalf of both Parties.

  

	28.6	If and to the extent that any provision of this Agreement is held to be illegal, void or unenforceable, such provision shall be given no effect and shall be
deemed not to be included in this Agreement but without invalidating any of the remaining provisions of this Agreement. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 32

  

	28.7	This Agreement and the obligations of the Parties shall be governed by and construed in accordance with the substantive laws of England to the exclusion of the
United Nations Convention on the International Sale of Goods. 

  

							
	SIGNED for and by behalf of	 		  		 	
	DESITIN Arzneimittel GmbH	 	 /s/ Dr. Martin Zentgraf
	  		 	March 14 2008
		 	Dr. Martin Zentgraf	  		 	Date
		 	General Manager	  		 	
				
		 	 /s/ Dr. Harald Jainta
	  		 	March 14, 2008
		 	Dr. Harald Jainta	  		 	Date
		 	Director Business Development	  		 	
				
	SIGNED for and by behalf of	 		  		 	
	ZOGENIX, INC.	 	 /s/ Roger L. Hawley
	  		 	March 14, 2008
		 	Roger L. Hawley	  		 	Date
		 	CEO	  		 	

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 33

  

 Appendix 1 

PRODUCT SPECIFICATION 

sumatriptan DosePro is a sterile, pre-filled, single-use, disposable, needle-free subcutaneous delivery system delivering sumatriptan injection.
sumatriptan DosePro consists of the following components: a gray plastic handle and snap-off tip, a green lever, and a glass medication chamber that is pre-filled with 6 mg/0.5 mL sumatriptan injection. Utilizing pressure from a compressed nitrogen
gas source in the handle, sumatriptan DosePro delivers the medication by pushing it through a small, precise hole in the glass medication chamber. The resulting stream of medication is propelled through the skin and is delivered subcutaneously
without a needle, following a unique biphasic pressure profile. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 34

  

 Appendix 2 

LICENSED PATENTS 
 [***] 
  

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	 	 Page
 35

  

 Appendix 3 
 Clinical Supply Terms 
 Pursuant to the terms of this Appendix 3, ZOGENIX
shall supply DESITIN with its requirements for Clinical Trial Materials solely for use in clinical trial activities in the Territory in support of Marketing Authorisation for the Product in the Territory (“Development”). Clinical Trial
Materials supplied by ZOGENIX shall be provided at the prices set forth in Clause 8 of the Agreement or at such other transfer prices as the parties may mutually agree. 
 DESITIN shall place its first order for Clinical Trial Materials no later than [***] ([***]) months following the Effective Date, to be delivered no later than additional [***] ([***]) months thereafter.
DESITIN shall place subsequent orders for Clinical Trial Materials at least [***] ([***]) months prior to the desired delivery date. ZOGENIX will use Reasonable Commercial Efforts to meet DESITIN’s requested quantities and delivery dates.
ZOGENIX shall notify DESITIN of the specific delivery date and quantity for each subsequent order no later than [***] ([***]) months following receipt of DESITIN’s order by ZOGENIX. 

DESITIN acknowledges and agrees that ZOGENIX will manufacture Clinical Trial Materials or will enter into a contractual relationship with
one or several manufacturers for the Clinical Trial Materials. Such Third Party manufacturers shall manufacture Clinical Trial Materials on ZOGENIX’s behalf in accordance with applicable law in the Territory. 

Any Clinical Trial Materials supplied by ZOGENIX hereunder shall be manufactured: (a) in accordance with cGMP; (b) in
compliance with the Product Specification; and (c) in compliance with all applicable and relevant national and local laws, rules and regulations, including those promulgated by any relevant Regulatory Authority. 

Clinical Trial Materials shall be supplied by ZOGENIX to DESITIN as finished products ready for final packing and labelling as required
in each country of the Territory (DESITIN will be responsible for such items as set forth in Clause 7.3 of the Agreement as well as quality control, in each case at its own expense). Each shipment of Clinical Trial Materials shall be accompanied by
the corresponding analytical certificate attesting to compliance with the Product Specification. Clinical Trial Materials shall be placed at DESITIN’s disposal EXW (Incoterms 2000) ZOGENIX’s manufacturing facility. 

 

	***	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. 

			
	Licensing & Distribution Agreement between Zogenix & Desitin as of March 14, 2008	  	 Page
 36

  

  
 Exhibit 23.3

  

 

 

 Zogenix Licenses European Development and Commercial Rights for 

sumatriptan DoseProTM to Desitin Pharmaceuticals, GmbH 
 SAN DIEGO, CA (March XX, 2008): Zogenix, Inc. (“Zogenix”), a private, specialty pharmaceutical company, today announced that it has entered into a license agreement to grant
exclusive rights in the European Union to Desitin Pharmaceuticals, GmbH (“Desitin”) to develop and commercialize Zogenix’s late stage, single use, needle-free product candidate for migraine headache, sumatriptan DosePro. The product
candidate, that incorporates the Zogenix DosePro needle-free drug delivery technology, has previously demonstrated bioequivalence to the Imitrex STATdose System® (sumatriptan injection, GlaxoSmithKline) in a U.S. pivotal clinical trial and
compelling ease-of-use in a usability trial with migraine sufferers.
 Under the terms of the agreement, Desitin will oversee, and be
responsible for the expenses related to, all clinical development, regulatory approvals and commercialization efforts required to market and sell sumatriptan DosePro across Europe. Zogenix will be responsible for the manufacture and supply of
commercial product, and will receive a transfer price payment on manufactured product and royalty payments based on sales of the product upon commercialization. Zogenix retains full commercial rights to sumatriptan DosePro in the U.S., Canada,
Asia and certain other countries. 
 Sales of triptans, the class of drugs in which sumatriptan DosePro is expected to compete, total
approximately $550 million annually in the five major countries of Europe: Germany, France, Italy, Spain, and the UK, according to IMS Health MIDAS. “Triptans remain the standard of care in migraine treatment,” commented
Dr. Stephen Farr, President and Chief Operating Officer of Zogenix. “However, there remains a significant unmet medical need for more effective, easy-to-use triptans that can deliver on the promise of providing faster onset and more
complete pain relief without the use of a needle. Sumatriptan DosePro is designed to meet these needs.” 
 “This license
agreement expands the potential reach for sumatriptan DosePro beyond the U.S., where, subject to regulatory approval, Zogenix is preparing to commercialize sumatriptan DosePro ourselves,” said Roger Hawley, Chief Executive Officer of
Zogenix. “In Desitin, we have chosen a European partner that has a proven track record of successfully developing, registering and commercializing central nervous system (CNS) products. We look forward to seeing sumatriptan DosePro
advance through these steps and launch in the European marketplace.” 

  
 “This agreement reflects the
unique and well respected position Desitin holds in the European CNS market. We have the ability to both move this product candidate through the European regulatory process and to launch it with our CNS-focused sales representatives in more
than nine countries,” commented Dr. Martin Zentgraf, Desitin’s General Manager. “This product candidate fits with our ongoing commitment to develop improved products that address unmet medical needs in the CNS
market. We are delighted to be working with Zogenix and, subject to regulatory approval, look forward to bringing this important product candidate to the market for the benefit of patients.” 

About Zogenix 
 Zogenix, Inc., with
offices in Emeryville and San Diego, CA, is a private, specialty pharmaceutical company with two proprietary product candidates in late-stage development for the treatment of central nervous system disorders and pain. The company’s lead product
candidate, sumatriptan DosePro (previously Intraject®), enables needle-free subcutaneous delivery of sumatriptan for the treatment of acute migraine. In December 2007, Zogenix submitted a New Drug Application with the U.S. Food and Drug
Administration for sumatriptan DosePro. Zogenix’s second product candidate, ZX002, is a novel controlled release formulation of hydrocodone for the treatment of chronic pain. This product candidate has completed Phase 2 clinical trials, and the
company anticipates initiating the Phase 3 clinical program in the second half of 2008. The company also plans to license the patented DosePro drug delivery system to other companies. For additional information, visit
www.zogenix.com. 
 About Desitin 
 Desitin Arzneimittel GmbH, based in Hamburg, Germany is an independent, private, fully integrated, German pharmaceutical company focused on the development, manufacturing and distribution of products for
the treatment of central nervous system disorders. Desitin, with turnover in 2005/2006 of over $100 million, is one of the leading European companies in the field of epilepsy with additional expertise in Parkinson’s disease and psychiatric
disorders. With their pharmaceutical and clinical development capabilities, the company develops innovative products such as controlled-release and high-dose antiepileptics. Desitin’s sales infrastructure offers comprehensive coverage in
Germany, Northern and Eastern Europe. The company also has strategic partnerships with other companies covering nearly all of the remaining countries in Europe. For additional information, visit www.desitinpharma.com

Bourne Partners, Charlotte N.C., acted as financial advisors to Desitin on this transaction. 
 ZogenixTM, DoseProTM and INTRAJECT® are trademarks of Zogenix, Inc. 
 Imitrex STATdose
System® is a registered trademark of GlaxoSmithKline.
 ### 
 CONTACTS: 
 Zogenix, Inc. 
 J.D. Haldeman, 
 VP, Commercial Strategy & 

Corporate Communications 
 858.436.8595

 jdhaldeman@zogenix.com

Desitin Pharmaceuticals GmbH 
 Dr. Harald
Jainta, 
 Director Business Development 

Jainta@desitin.de

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00179-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00179-of-00352.parquet"}]]