Document:

Manufacturing Services Agreement

 Exhibit 10.18 
 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. 
  
  

Manufacturing Services Agreement 
 Between 
 Patheon UK Limited 

And 

Zogenix Inc. 
 1st November, 2008 

 Table of Contents 

 

					
		 		  	
	 ARTICLE 1
	 		  	- 2 -
	 INTERPRETATION
	  	- 2 -
	 1.1
	 	Definitions.	  	- 2 -
	 1.2
	 	Currency.	  	- 6 -
	 1.3
	 	Sections and Headings.	  	- 7 -
	 1.4
	 	Singular Terms.	  	- 7 -
	 1.5
	 	Schedules.	  	- 7 -
	 ARTICLE 2
	 		  	- 8 -
	 PATHEON’S OBLIGATIONS
	  	- 8 -
	 2.1
	 	Manufacturing and Support Services.	  	- 8 -
	 2.2
	 	Standard of Performance.	  	- 11 -
	 ARTICLE 3
	 		  	- 12 -
	 ZOGENIX’S OBLIGATIONS
	  	- 12 -
	 3.1
	 	Payment.	  	- 12 -
	 3.2
	 	Materials.	  	- 12 -
	 3.3
	 	Exclusivity.	  	- 12 -
	 3.4
	 	Import and Export Matters.	  	- 13 -
	 3.5
	 	Specifications.	  	- 13 -
	 ARTICLE 4
	 		  	- 14 -
	 SERVICE AND SUPPORT FEES, TIERED PRICING
	  	- 14 -
	 4.1
	 	Fees for Manufacturing and Support Services.	  	- 14 -
	 4.2
	 	Adjustments to Year’s Pricing.	  	- 14 -
	 4.3
	 	Adjustments Due to Technical Changes.	  	- 15 -
	 4.4
	 	Multiple Packaging Formats.	  	- 15 -
	 4.5
	 	Pricing Assumptions.	  	- 15 -
	 4.6
	 	Taxes.	  	- 15 -
	 4.7
	 	Tiered Pricing.	  	- 15 -
	 ARTICLE 5
	 		  	- 16 -
	 ORDERS, DELIVERY, INVOICING, PAYMENT, MINIMUM VOLUMES, PRODUCT DEFICIENCIES
	  	- 16 -
	 5.1
	 	Market Outlook.	  	- 16 -
	 5.2
	 	Orders and Forecasts.	  	- 16 -
	 5.3
	 	Reliance by Patheon.	  	- 17 -
	 5.4
	 	Order Size.	  	- 18 -
	 5.5
	 	Rental of Manufacturing Space.	  	- 18 -
	 5.6
	 	Delivery.	  	- 19 -
	 5.7
	 	Invoices and Payment for Service Fees.	  	- 19 -
	 5.8
	 	Invoices and Payment for Support Fees.	  	- 20 -

 

 - i - 

					
	 5.9
	 	Invoices and Payment for Rental of Manufacturing Space.	  	- 20 -
	 5.10
	 	Product Deficiencies.	  	- 20 -
	 ARTICLE 6
	 		  	- 22 -
	 CO-OPERATION
	  	- 22 -
	 6.1
	 	Joint Steering Committee.	  	- 22 -
	 6.2
	 	Product Recalls.	  	- 23 -
	 6.3
	 	Governmental Agencies.	  	- 23 -
	 6.4
	 	Records and Accounting by Patheon.	  	- 23 -
	 6.5
	 	Access, Person in Plant.	  	- 24 -
	 6.6
	 	Subordination and Waiver Agreement.	  	- 24 -
	 6.7
	 	Relationship Manager.	  	- 24 -
	 ARTICLE 7
	 		  	- 25 -
	 TERM AND TERMINATION
	  	- 25 -
	 7.1
	 	Term.	  	- 25 -
	 7.2
	 	Termination for Cause.	  	- 25 -
	 7.3
	 	Obligations on Termination.	  	- 26 -
	 ARTICLE 8
	 		  	- 28 -
	 REPRESENTATIONS, WARRANTIES AND COVENANTS
	  	- 28 -
	 8.1
	 	Authority.	  	- 28 -
	 8.2
	 	Covenants, Representations and Warranties.	  	- 28 -
	 8.3
	 	Permits.	  	- 29 -
	 8.4
	 	Compliance with Laws.	  	- 29 -
	 8.5
	 	Patheon Representations, Covenants and Limited Warranty.	  	- 29 -
	 ARTICLE 9
	 		  	- 31 -
	 REMEDIES AND INDEMNITIES
	  	- 31 -
	 9.1
	 	Consequential Damages.	  	- 31 -
	 9.2
	 	Limitation of Liability.	  	- 31 -
	 9.3
	 	Patheon.	  	- 32 -
	 9.4
	 	Zogenix.	  	- 32 -
	 ARTICLE 10
	 		  	- 34 -
	 CONFIDENTIALITY
	  	- 34 -
	 10.1
	 	Confidentiality.	  	- 34 -
	 10.2
	 	Confidential Information.	  	- 34 -
	 ARTICLE 11
	 		  	- 35 -
	 DISPUTE RESOLUTION
	  	- 35 -
	 11.1
	 	Commercial Disputes.	  	- 35 -
	 11.2
	 	Technical Dispute Resolution.	  	- 35 -
	 ARTICLE 12
	 		  	- 36 -
	 MISCELLANEOUS
	  	- 36 -
	 12.1
	 	Intellectual Property.	  	- 36 -
	 12.2
	 	Insurance.	  	- 36 -
	 12.3
	 	Independent Contractors.	  	- 36 -

 

 - ii - 

					
	 12.4
	 	No Waiver.	  	- 36 -
	 12.5
	 	Assignment.	  	- 37 -
	 12.6
	 	Force Majeure.	  	- 37 -
	 12.7
	 	Additional Product.	  	- 37 -
	 12.8
	 	Notices.	  	- 38 -
	 12.9
	 	Severability.	  	- 38 -
	 12.10
	 	Entire Agreement.	  	- 38 -
	 12.11
	 	No Third Party Benefit or Right.	  	- 39 -
	 12.12
	 	Execution.	  	- 39 -
	 12.13
	 	Governing Law.	  	- 39 -
	 12.14
	 	Resolution.	  	- 39 -
	 SCHEDULE A
	  	- 41 -
	 PRODUCTS, SERVICE FEES, PRICING ASSUMPTIONS, RENTAL FEES
	  	- 41 -
	 SCHEDULE B
	  	- 47 -
	 SUPPORT FEES
	  	- 47 -
	 SCHEDULE C
	  	- 51 -
	 MATERIALS
	  	- 51 -
	 SCHEDULE D
	  	- 52 -
	 EQUIPMENT
	  	- 52 -
	 SCHEDULE E
	  	- 57 -
	 FORECAST MODEL
	  	- 57 -
	 SCHEDULE F
	  	- 64 -
	 SUPPLY CHAIN TELECONFERENCES AND INVENTORY REPORT
	  	- 64 -

  

 - iii - 

 MANUFACTURING SERVICES AGREEMENT 

THIS MANUFACTURING SERVICES AGREEMENT (the “Agreement”) made as of this 1st day of November, 2008 

BETWEEN:- 
 PATHEON UK LIMITED, a
company with a registered office at Kingfisher Drive, Covingham, Swindon, Wiltshire, SN3 5BZ, incorporated under the laws of England, (hereinafter referred to as “Patheon” ), 
 And 
 ZOGENIX INC, a company with a registered office at 12671 High Bluff Drive, Suite 200,
San Diego California, 92130, USA, incorporated under the laws of Delaware (hereinafter referred to as “Zogenix”). 
 Each of
Patheon and Zogenix being hereinafter referred to as a “Party” if individually considered and as “Parties” if jointly considered. 
  

 - - 1 - - 

 THIS AGREEMENT WITNESSES THAT in consideration of the rights conferred and the obligations
assumed herein, and for other good and valuable consideration (the receipt and sufficiency of which are acknowledged by each party), and intending to be legally bound the parties agree as follows:- 

ARTICLE 1 

INTERPRETATION 
  

	1.1	Definitions. 

 The
following terms shall, unless the context otherwise requires, have the respective meanings set out below and grammatical variations of such terms shall have corresponding meanings:- 

“Affiliate” means: 
  

	 	(a)	a business entity which owns, directly or indirectly, a controlling interest in a party to this Agreement, by stock ownership or otherwise; or 

 

	 	(b)	a business entity which is owned by a party to this Agreement, either directly or indirectly, by stock ownership or otherwise; or 

 

	 	(c)	a business entity, the majority ownership of which is directly or indirectly common to the majority ownership of a party to this Agreement; 

“Annual Stability Commitment” shall have the meaning ascribed in Quality Agreement; 

“Batch” shall mean a uniquely identified or identifiable quantity of Products that have been produced by one
(1) process or series of processes to the extent that such quantity could insofar be expected to be homogeneous. The meaning is as set forth in 21 C.F.R. §820; 

“Binding Letter Agreement” means the agreement relating to the employment of project staff between
Patheon and Zogenix dated 7th November 2006;

 “Breach Notice” shall have the meaning ascribed in Section 7.2(a); 

“Break Fee” shall have the meaning ascribed in Section 7.3(d); 

“Business Day” means a day other than a Saturday, Sunday or a day that is a statutory holiday in the United Kingdom and
in the United States of America; 
 “cGMP” means current Good Manufacturing Practice published by the European
Commission in the “Guide to good manufacturing practice for medicinal products” (“The rules governing medicinal products for human use”, IV Volume), as specified by the competent Regulatory Authorities, and 21
C.F.R. § 211, and FDA guidance pertaining thereto; 
  

 - - 2 - - 

 “Capacity” shall mean the quantity of Product Patheon is able to produce
from the Facility during a defined period of time based on the assumptions set out in Schedule A, which may be amended in writing from time to time as agreed between the parties; 

“Claim(s)” shall have the meaning ascribed in Section 9.3; 

“Confidentiality Agreement” means the Mutual Non Disclosure agreement relating to the non-disclosure
of confidential information between Patheon and Zogenix dated 18th September 2006; 
 “Conversion Fee” shall have the meaning
ascribed in Schedule A attached hereto as amended between the Parties from time to time. 
 “Deed” shall mean
the Deed of Subordination and Waiver under which Zogenix has securitised its assets with the General Electric Capital Corporation dated as of March 5, 2007 and updated on December 27, 2007 (“the Deed”) and the Parties to this
Agreement agree that all matters in relation to Equipment covered by the Deed shall be subject to its terms and conditions. 

“Deficiency Notice” shall have the meaning ascribed thereto in Section 5.9(a); 

“Effective Date” means the 1st day of November 2008; 
 “Equipment” shall mean all the equipment listed in Schedule D attached hereto as well as any other manufacturing or inspection equipment owned by Zogenix (or provided by any third party
for the benefit of Zogenix) that is used for the fulfilment of the Manufacturing Services hereunder; 
 “EXW”
means “Ex works”, as that term is defined in INCOTERMS 2000; 
 “Facility” means the
manufacturing facility of Patheon, at Kingfisher Drive, Covingham, Swindon, Wiltshire, SN3 5BZ, United Kingdom, and where manufacturing of the Products under this Agreement shall take place; 

“FDA” means the United States Food and Drug Administration; 

“FDC Act” shall mean the United States Food, Drug & Cosmetic Act, as amended from time to time, and the
regulations promulgated pursuant thereto; 
 “Finished Pack” means a finished pack of Product, as further
described in Schedule A; 
 “Firm Orders” has the meaning specified in Section 5.2(b); 

 

 - - 3 - - 

 “GE” shall have the meaning ascribed thereto in Section 6.6;

 “Improvements” shall mean all improving modifications or adaptations to any of the patents or know-how
relating to the Product, whether patentable or not, which might reasonably be of commercial interest to either party in the design, manufacture, supply or use of the Product and which may be made, acquired by or disclosed to Patheon or Zogenix
during the term of this Agreement; 
 “Initial Term” shall have the meaning ascribed thereto in
Section 7.1; 
 “Intellectual Property” includes, without limitation, rights in patents, patent
applications, formulae, trade-marks, trade-mark applications, trade-names, trade secrets, inventions, copyrights, industrial designs, know-how; 
 “Inventory” means all inventories of Materials and work-in-process produced or held by Patheon in connection with the manufacture of the Products; 

“Manufacturing and Support Services” means the manufacturing, quality control, quality assurance and stability testing,
packaging and related services, as contemplated in this Agreement, either required to produce Products from the Materials or requested to be completed by Zogenix; 
 “MA” means Marketing Authorisation pursuant to Directive 65/65 EEC (as amended by following provisions including Directive 2001/83/EC) or any implementation of it or its equivalent under
the laws of a relevant Member State, or the approved NDA or equivalent thereof; 
 “Make Good Costs” means the
reasonable costs required to repair the Facility and return it into a useable area based on a “like for like” replacement of any damaged materials. 
 “Manufacturing Requirements” means Patheon’s responsibilities and obligations with respect to the provision of Manufacturing Services as set forth in Article 2; 

“Materials” means the materials listed in Schedule C used in the manufacture of the Product; 

“Minimum Campaign Size” shall have the meaning ascribed in Schedule A; 

“MRP” shall mean Materials Requirements Planning; 

“NDA” means New Drug Application under Section 505 of the Federal Food Drug and Cosmetic Act, by the FDA;

  

 - - 4 - - 

 “Occupancy Agreement” shall mean the Occupancy Charge,
Industrialisation and Project Agreement between Patheon and Zogenix dated 27th March 2007, the First Amending Agreement to the Occupancy Agreement dated 1st August 2007 and the Annex to the Occupancy Agreement dated 1st September 2007; 

“Pricing Assumptions” shall have the meaning ascribed thereto in Schedule A; 

“Product(s)” means the products listed on Schedule A hereto; 

“Product Quality Review” shall have the meaning ascribed thereto in Section 2.1(f); 

“Quality Agreement” means the agreement relating to pharmaceutical quality agreed between the parties
with an effective date of 1st November 2008;

 “Regulatory or Government Authority” shall mean, with respect to the United States, the U.S. Food and Drug
Administration (“FDA”), or any equivalent foreign regulatory authority or applicable agency; 
 “Remediation
Period” shall have the meaning ascribed in Section7.2(a); 
 “Service Fee” means the fees set out in
Schedule A covering the cost of Materials purchased by Patheon and the conversion of Materials into Product; 
 “Shift
Pattern A” shall have the meaning ascribed in table A-1 of Schedule A; 
 “Shift Pattern B” shall have
the meaning ascribed in table A-1 of Schedule A; 
 “Shift Pattern C” shall have the meaning ascribed in table
A-1 of Schedule A; 
 “Shift Pattern D” shall have the meaning ascribed in table A-1 of Schedule A; 

“Specifications” means the file, for each Product, which is provided by Zogenix to Patheon and which contains documents
relating to such Product, including, without limitation: 
  

	 	(a)	written specifications for Materials and Product; 

  

	 	(b)	manufacturing and packaging process specifications; 

  

	 	(c)	shipping and storage requirements; 

  

 - - 5 - - 

	 	(e)	all environmental, health and safety information relating to the Product including material safety data sheets. all as updated, amended and revised from time to time by
Zogenix in accordance with the terms of the Agreement; and 

  

	 	(f)	any other technical information necessary to carry out the contracted operations correctly in accordance with the MA and any other legal requirements,

 all as updated, amended and revised from time to time by Zogenix in accordance with the terms of this Agreement;

 “Standard Batch Size” shall have the meaning ascribed in Schedule A; 

“Steering Committee” shall be the joint committee of which the details concerning representation and functions are set
out in Section 6.1; 
 “Support Fees” means the fees set out in Schedule B covering activities performed by
Patheon to support the registration of the Product. The Support Fees are in addition to the Service Fee for the Product; 

“Technical Dispute” has the meaning specified in Section 11.2; 

“Territory” means in the geographic area of the United States of America and all its territories and possessions and the
states of the European Union and any other geographic regions where Zogenix may elect to market the Product; 
 “Third
Party Rights” means the Intellectual Property of any third party; 
 “Unit” shall have the meaning
ascribed in Schedule A; 
 “Vendor Supply Agreement” means a commercial agreement between either Patheon or
Zogenix with the vendor of a Material covering the supply of such Material; 
 “Year” means the twelve
(12) month period commencing, in the case of the first Year of this Agreement, on the Effective Date, and thereafter commencing upon completion of the immediately preceding Year. 

 

	1.2	Currency. 

 Unless
otherwise indicated, all monetary amounts are expressed in this Agreement in Pounds Sterling (“GBP”). 
  

 - - 6 - - 

	1.3	Sections and Headings. 

 The division of this Agreement into Articles, sections, subsections and Schedules and the insertion of headings are for convenience of reference only and shall not affect the interpretation of this
Agreement. Unless otherwise indicated, any reference in this Agreement to a Section or Schedule refers to the specified Section or Schedule to this Agreement. In this Agreement, the terms “this Agreement”, “hereof”,
“herein”, “hereunder” and similar expressions refer to this Agreement and not to any particular part, Section, Schedule or the provision hereof. 

 

	1.4	Singular Terms. 

Except as otherwise expressly provided herein or unless the context otherwise requires, all references to the singular shall include the
plural and vice versa. 
  

	1.5	Schedules. 

 The
following Schedules are attached to, incorporated in and form part of this Agreement: 
  

					
	Schedule A	  	–	  	Products, Service Fees, Standard Batch Size, Minimum Campaign Quantity, Capacity
	Schedule B	  	 –
	  	Support Fees
	Schedule C	  	–	  	Materials and Services and Responsibility Matrix
	Schedule D	  	–	  	Zogenix Equipment and Equipment Maintenance and Repair
	Schedule E	  	–	  	Forecast Model
	Schedule F	  	–	  	Supply Chain Teleconferences and Inventory Reports

  

 - - 7 - - 

 ARTICLE 2 
 PATHEON’S OBLIGATIONS 
  

	2.1	Manufacturing and Support Services. 

 Patheon shall provide to Zogenix the Manufacturing and Support Services for the Territory for the fees specified in Schedules A and B in order to produce Products for Zogenix. In providing the
Manufacturing and Support Services: 
  

	 	(a)	Conversion of Materials. Patheon shall convert Materials into Product in accordance with the Specifications, the cost of such activities being included in the
Service Fee; 

  

	 	(b)	Quality Control and Quality Assurance. Patheon shall perform quality assurance and quality control testing for Materials and Products set out in the Quality
Agreement and Specifications, the cost of such activities being included in the Service Fee; 

  

	 	(c)	Materials. Patheon shall be responsible for implementing Vendor Supply Agreements (from those suppliers from whom it its Patheon’s responsibility to procure
Materials), ordering, receiving, making payment for and storing Materials as set in Schedule C; 

  

	 	(d)	Stability Testing. Patheon shall conduct stability testing on the Products in accordance with protocols provided by Zogenix. The cost of stability storage and
testing for [***] (the “Annual Stability Commitment” for the Product) shall be included in the Service Fee. Any stability testing requested by Zogenix over and above the Annual Stability Commitment shall be invoiced to Zogenix by
Patheon for the separate fees specified in Schedule B. In the event that any Batch of Products fails stability testing, Patheon and Zogenix shall jointly determine the proceedings and methods to be undertaken to investigate the causes of such
failure, including which party shall bear the cost of such investigation, provided that Patheon shall not be liable for any such costs unless there has been a failure by it to provide the Manufacturing and Support Services in accordance with the
Manufacturing Requirements. Patheon will provide any and all data and results relating to the stability testing annually as reasonably requested by Zogenix; 

 

	 	(e)	Support to Maintain Regulatory Filings. Patheon shall provide Zogenix with reasonable assistance and documentation necessary to keep the MA in effect and
necessary to respond to inquiries and requests from the FDA and other relevant regulatory authorities. Zogenix shall reimburse Patheon for such support services as set out in Schedule B; 

 
  

	***	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. 

  

 - - 8 - - 

	 	(f)	Product Quality Review. Patheon shall provide data to enable Zogenix to perform trending and critical analysis for the Product during each Year of the Agreement
(a “Product Quality Review”). The data relating to the Product to be provided by Patheon will be sufficient to allow Zogenix to fulfil its annual reporting obligations to the FDA and will include but not be limited to:

  

	 	(i)	Materials 

  

	 	(ii)	Critical in process control and finished product testing results 

  

	 	(iii)	Deviations and out of specifications 

  

	 	(iv)	Changes to Materials or the Product 

  

	 	(v)	Stability studies 

  

	 	(vi)	Complaints relating to the Product 

  

	 	(vii)	Corrective and preventive actions 

  

	 	(viii)	Qualification and validation of equipment and processes used in the manufacture of the Product 

 

	 	(ix)	Quality Agreement 

 hereinafter
collectively the “PQR Data”. 
 The cost of providing the PQR Data shall be included in the Service Fee. In the
event that Zogenix requests that Patheon provides data over and above the PQR Data or that Patheon perform trending and critical analysis on the PQR Data, then Zogenix shall reimburse Patheon for such services as set out in Schedule B; 

 

	 	(g)	Audit Support. Patheon shall provide, at no cost to Zogenix, support for [***] per annum by Zogenix of Patheon’s quality and compliance systems at the
Facility in accordance with the provisions set out in the Quality Agreement. In the event that Zogenix requests that Patheon provide support for more than [***] per annum at the Facility and such additional audits are not required to address
legitimate quality concerns and the Parties have not mutually agreed otherwise, Zogenix shall reimburse Patheon as set out in Schedule B. For the avoidance of doubt, audits by third parties of the Facility that are requested by Zogenix shall be
considered a Zogenix audit for the purposes of this Section. For the further avoidance of doubt, inspections by Regulatory or Governmental Authorities or due diligence visits by prospective licensees of the Product shall not be considered a quality
audit for the purposes of this Section; 

  

 

	***	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. 

  

 - - 9 - - 

	 	(h)	Artwork Generation and Updates. Patheon shall coordinate the generation, approval and updates of artwork for printed packaging within Patheon’s internal
systems. For the avoidance of doubt, the generation of original artwork is the responsibility of Zogenix, with Patheon responsible for manipulating this artwork so that it complies with its internal processing requirements. Zogenix shall reimburse
Patheon for artwork generation and updates as set out in Schedule B; 

  

	 	(i)	Additional Sampling. Patheon shall take additional samples of Product or Materials upon request by Zogenix. For the avoidance of doubt, samples taken routinely
for Materials release testing, in process control, finished Product testing, retention samples held by Patheon as necessary to fulfil regulatory requirements or stability testing shall not be considered additional samples. Zogenix shall reimburse
Patheon for any additional sampling as set out in Schedule B; 

  

	 	(j)	Batch Record and Specification Update. Patheon shall generate and update Batch manufacturing records, Batch packaging records, Material testing specifications
and Product testing specifications as reasonably required. If updates to existing Batch manufacturing records, Batch packaging records, Material testing specifications and Product testing specifications are initiated by Zogenix, then Zogenix shall
reimburse Patheon as set out in Schedule B; 

  

	 	(k)	Additional Testing. Patheon shall perform additional testing on Materials or Product at the request of Zogenix. For the avoidance of doubt, any testing over and
above the standard in process or release testing for Materials or Product set out in the Specifications shall be considered additional testing. Zogenix shall reimburse Patheon for such additional testing as set out in Schedule B.

  

	 	(l)	Equipment Maintenance and Repair. Patheon shall be responsible for maintenance and repair of the Equipment in accordance with Schedule D attached hereto and for
the costs set out therein. 

  

	 	(m)	Process Optimisation and Project Activities. Patheon shall, where possible, recommend and, at the request of Zogenix, perform process optimisation, efficiency
and project activities relating to the Product. Zogenix shall reimburse Patheon for such optimisation and project activities as set out in Schedule B. 

  

	 	(n)	Additional Access. In addition to the access described in paragraph (g) above, Patheon shall allow reasonable access to third parties (by way of
illustration and not limitation, insurance agents or agents of Zogenix’ financiers) to the Facility as reasonably requested by Zogenix. However, it is understood and agreed that any such third parties must adhere and conform to all and any
Patheon health, safety or quality requirements whilst at the Facility. Patheon reserves the right to either refuse entry to or remove from the Facility any individual breaching such requirements. 

 

 - - 10 - - 

	2.2	Standard of Performance. 

 Patheon represents and undertakes to Zogenix that it shall perform the Services in accordance with the MA, cGMPs (where relevant), any other applicable legal requirements and in accordance with any
instructions given by Zogenix, Regulatory or Governmental Authorities in connection with the Services. In addition, and without prejudice to anything else in this Agreement, Patheon represents and undertakes to Zogenix that it shall perform the
Services in accordance with reasonable skill, care and judgment; hereinafter collectively the “Manufacturing Requirements”. 
  

 - - 11 - - 

  
 ARTICLE 3

 ZOGENIX’S OBLIGATIONS 
  

	3.1	Payment. 

 Pursuant
to the terms of this Agreement, Zogenix shall pay Patheon for the provision of the Manufacturing and Support Services according to the fees specified in Schedules A and B hereto. 

 

	3.2	Materials. 

  

	 	(a)	Zogenix shall be responsible for implementing Vendor Supply Agreements, ordering, receiving, making payment for and storing Materials as set in Schedule C. Furthermore,
Zogenix shall be obliged to provide said Materials at the times and in the quantities required in order to allow Patheon to fulfil its obligations hereunder. 

 

	 	(b)	If Zogenix is unable to supply the Materials described in paragraph (a) and: (i) such inability to supply is not due to an event of force majeure as defined
in Section 12.6; and (ii) as a result, Patheon is unable to supply Firm Orders, it will be considered that Zogenix has cancelled these Firm Orders and the relevant provisions of Section 5.2(b) shall apply. Furthermore, if such
inability to supply the Materials continues for a period in excess of [***], then Patheon, at its sole discretion, may then apply the rental fee described in Section 5.5 until the time that Zogenix is able to resume supply of all such Materials
and Patheon is able to fulfil Firm Orders. 

  

	3.3	Exclusivity. 

Zogenix shall purchase [***] for all Products (including unidentified products yet to be developed that use the DoseProTM device and
are commercialized by Zogenix) from Patheon (or its Affiliates). In the event Zogenix wishes to license out or otherwise divest its interest in all or part of the Product or license out the use of the DoseProTM device for use with another
pharmaceutical product, the Parties hereby agree that, unless Patheon is unwilling or unable to do so, Zogenix shall recommend to such relevant third party the appointment of Patheon as the exclusive provider for any Manufacturing Services required.
In the event Patheon is unable to supply sufficient Product to Zogenix due to Patheon’s inability to supply or lack of available Capacity, then Zogenix has the right to use other suppliers until such time as Patheon is capable of fulfilling
Zogenix’ demands. In the event the required increase in Capacity needs additional capital investment, then the Parties shall discuss in good faith the allocation of costs and timelines associated therewith. In the absence of any good faith
agreement, Zogenix shall be entitled to obtain the additional Product above the existing Capacity from a third party without any obligation to Patheon. In addition, Patheon agrees not to enter into any other agreements with any third parties in
relation to the manufacture of any other needle free devices for the injection of liquids without the prior consent of Zogenix, such consent not to be unreasonably withheld. 

 
  

	***	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. 

  
 - - 12 - -

	3.4	Import and Export Matters. 

 Zogenix shall, at its own expense, prepare, obtain and maintain all necessary import and export documentations and permits relating to the Product. 

 

	3.5	Specifications. 

Zogenix is the design authority and will set all Specifications. Patheon is responsible for reviewing and providing input to the
Specifications. Specifications will be mutually agreed and included in the Quality Agreement. Any changes to agreed Specifications must be made under the change control systems of both companies. For the avoidance of doubt, Zogenix has the ultimate
responsibility and liability for the compliance and applicability of all Specifications. 
  

 - - 13 - - 

 ARTICLE 4 
 SERVICE AND SUPPORT FEES, TIERED PRICING 
  

	4.1	Fees for Manufacturing and Support Services. 

 The Support Fees listed in Schedule B are intended by the Parties to be fixed for the Term of this Agreement, subject to the amendments provided for in this Article 4. The Service Fees listed in Schedule
A are based on certain assumptions which require further information prior to being verified by the Parties. The Parties intend to fix the Service Fee for the Term of this Agreement once sufficient information is available to mutually agree in good
faith appropriate levels of tiered pricing. The Parties further agree that, by no later than the end of the first Year of this Agreement, such tiered pricing levels shall be agreed (unless the Parties mutually agree to extend such period). In the
event that no agreement has been reached by September 1st, 2009 then the commercial dispute resolution shall be applied as per Section 11.1 below. Once agreed such Service Fees shall be subject to the amendments to such fees provided for in this Article 4.

  

	4.2	Adjustments to Year’s Pricing. 

 During any period following the first anniversary of this Agreement, the Service Fee and Support Fees shall be subject to adjustment in accordance with the following: 

 

	 	(a)	[***]. If [***]. To the extent that Service Fees have been previously adjusted pursuant to this Section 4.2(a) [***]. Such adjustment to the Service Fee shall be
effective [***]. 

  

	 	(b)	Support Fees, Conversion Fees and Rental Fees. On [***]. Such adjustment shall be effective as of [***]. 

 

	 	(c)	The parties may at any time propose initiatives to reduce cost. If such initiative is agreed to by both parties, then the benefits of any such initiative will be
applied first to enable the parties to recover any investment made to facilitate it, if any, and then shared between the parties in such proportions of the respective investments. 

In connection with a Service Fee, Support Fee or rental adjustment pursuant to this Section 4.2, Schedule A and/or Schedule B shall
be revised to reflect the updated [***]. At the request of Zogenix, Patheon shall provide documentation sufficient to demonstrate that such a fee adjustment is justified. 

 
  

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portions. 

  

 - - 14 - - 

	4.3	Adjustments Due to Technical Changes. 

 Amendments to the Manufacturing Requirements requested by Zogenix [***]: 
  

	 	(a)	[***]; 

  

	 	(b)	[***]; 

  

	 	(c)	[***]. 

 If [***]. 

The above provisions shall also apply if [***]. 
  

	4.4	Multiple Packaging Formats. 

 If Zogenix requires Patheon to pack Product in a different format to that listed in the then current Schedule A, Patheon shall assess the cost of producing the new pack format, taking into account factors
including but not limited to pack size, packaging design, artwork design, cost of Materials, packing run size, then present Zogenix with a quotation on the Service Fee for the new pack format. If Zogenix agrees to the Service Fee quotation for the
new pack format, Schedule A shall be updated to include the quoted Service Fee for the new pack format. 
  

	4.5	Pricing Assumptions. 

 Both Parties agree that the Capacity of the Equipment and area within the Facility used to manufacture the Product and the resource required to achieve this level of output are critical assumptions for
the calculation of pricing. The Service Fees for the Products will be based on the assumptions set out in Schedule A. In the event that these assumptions change, both parties will be entitled to assess the impact of such changes on the cost of
manufacturing the Product and negotiate a fair adjustment to the Service Fees. 
  

	4.6	Taxes. 

 The
Service Fees and Support Fees do not include sales, use, consumption or excise taxes of any taxing authority. The amount of such taxes, if any, will be added to the Service Fees and Support Fees in effect at the time of delivery and shall be
reflected in the invoices submitted to Zogenix pursuant to this Agreement. 
  

	4.7	Tiered Pricing. 

The Service Fee for the Product will vary depending on the quantity of Product ordered by Zogenix for delivery in a Year, as set out in
Schedule A. 
  
  

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 - - 15 - - 

 ARTICLE 5 
 ORDERS, DELIVERY, INVOICING, PAYMENT, MINIMUM VOLUMES, PRODUCT DEFICIENCIES 
  

	5.1	Market Outlook. 

Zogenix acknowledges that for optimal production planning, Patheon requires an understanding of Zogenix’ strategic vision for the
Products in the market and agrees, to the extent that such information (including, if any, Zogenix’ five-year market outlook studies) exists, to share such information with Patheon. 

 

	5.2	Orders and Forecasts. 

 Zogenix shall provide Patheon with the following:- 
  

	 	(a)	A written non-binding [***] ([***]) [***] forecast, broken down by month for [***] and [***], of the volume for each Product that Zogenix then anticipates will be
required to be produced and delivered to Zogenix during that [***] ([***]) [***] period. The format of the non-binding [***] ([***]) [***] forecast will be as per the forecast model in Schedule E. Such non-binding forecast will be updated by Zogenix
[***] on a rolling basis. 

  

	 	(b)	Prior to tiered pricing being agreed, Zogenix shall, on or before the fifteenth (15th) day of each calendar month, provide Firm Orders to Patheon for the Products
to be produced and delivered to Zogenix for a period of not less than [***] ([***]) [***] from the first day of the calendar month immediately following the month that the Firm Order is submitted. Such Firm Orders submitted to Patheon shall specify
the Zogenix purchase order number, order quantities by Product type, delivery date and any other elements necessary to ensure the timely production and delivery of the Products. The quantities of Products ordered via Firm Orders shall be binding on
Zogenix and shall not be subject to reduction. Zogenix may request the cancellation of a Firm Order, but the acceptance of such cancellation shall be at the sole discretion of Patheon. 

 

	 	(c)	When tiered pricing has been agreed between the Parties, Zogenix shall, on or before the fifteenth (15th) day of each calendar month, provide firm written orders
(“Firm Orders”) to Patheon for the Products to be produced and delivered to Zogenix for a period of not less than [***] ([***]) [***] from the first day of the calendar month immediately following the month that the Firm Order is
submitted. Such Firm Orders submitted to Patheon shall specify the Zogenix purchase order number, order quantities by Product type, delivery date and any other elements necessary to ensure the timely production and delivery of the Products. The
quantities of Products ordered via Firm Orders shall be binding on Zogenix and shall not be subject to reduction. Zogenix may request the cancellation of a Firm Order, but the acceptance of such cancellation shall be at the sole discretion of
Patheon. For the avoidance of doubt, in the event that Firm Orders are cancelled by Zogenix and such cancellation is accepted by Patheon, then Patheon shall be entitled to charge Zogenix an amount equivalent to the unabsorbed fixed costs associated
with the reduction in expected Firm Orders provided that Patheon uses reasonable commercial efforts to mitigate such costs. For the purposes of this paragraph 5.2(b), it will be considered that Patheon’s fixed costs are equal to [***] of the
Service Fee that would have been payable had the cancelled Firm order been fulfilled. 

  

 

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 - - 16 - - 

	 	(d)	In the event Zogenix requires Manufacturing and Support Services for which a Support Fee is due as contemplated in Section 2.1 above, then Patheon shall provide
Zogenix with a quotation which shall be agreed prior to such Manufacturing and Support Services being undertaken by Patheon and Zogenix shall provide Patheon with a purchase order for the same. 

 

	5.3	Reliance by Patheon. 

  

	 	(a)	Materials. For Materials where Patheon is responsible for purchase order placement, as set out in Schedule C, Zogenix understands and acknowledges that Patheon
will rely on the Firm Orders submitted pursuant to Section 5.2(b) in ordering the Materials required to meet such Firm Orders. Patheon understands that Zogenix may request an increase to a Firm Order, pursuant to section 5.2(c), and as such
agrees to maintain inventory sufficient to meet such potential changes. In addition, Zogenix understands that to ensure an orderly supply of Materials, to achieve economies of scale in the costs, or due to minimum and incremental order quantities
imposed by suppliers, Zogenix may agree for Patheon to purchase Materials in sufficient volumes to meet the production demand for Products in excess of the requirements to fulfil Firm Orders. Accordingly, Zogenix may authorise Patheon from time to
time to purchase Materials to satisfy such requirements. If Materials ordered by Patheon pursuant to Firm Orders or this Section 5.3 are not included in finished Products purchased by Zogenix within [***] after the forecasted month in respect
of which such purchases have been made (or such longer period as the parties may agree), Zogenix shall pay to Patheon its costs thereof and, in the event such will receive credit for any costs of such Materials previously paid to Patheon by Zogenix.

  
  

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portions. 

  

 - - 17 - - 

  

	 	(b)	Staffing Levels. 

  

	 	(i)	Where the fee for rental of manufacturing space applies: When the forecast demand for the Product, as set out in Section 5.2(a), reaches a level where both Parties
agree it is necessary for Patheon to recruit and train additional staff to move from Shift Pattern B to Shift Pattern C or from Shift Pattern C to Shift Pattern D in order to increase manufacturing Capacity for the Product, then [***].

  

	 	(ii)	Where tiered pricing applies: When the forecast demand for the Product, as set out in paragraph 5.2(a), reaches a level where both Parties agree it is necessary for
Patheon to recruit and train additional staff to move from Shift Pattern A to Shift Pattern B, from Shift Pattern B to Shift Pattern C or from Shift Pattern C to Shift Pattern D in order to increase manufacturing Capacity for the Product, then
[***]. 

  

	 	(iii)	Where Capacity is lower than expected: Where the Capacity is lower than anticipated (as per the Pricing Assumptions) [***]. 

 

	5.4	Order Size. 

Zogenix shall place Firm Orders for the Products in whole multiples of the Standard Batch Size. Zogenix acknowledges that to achieve the
levels of Capacity set out in Schedule A, it will be necessary to manufacture Batches of Product in campaigns and wherever possible, Zogenix will place Firm Orders with delivery dates that enable Patheon to manufacture Product in accordance with the
Minimum Campaign Size set out in Schedule A. Patheon, may be required to accept orders for Products below the Minimum Campaign Size. 
  

	5.5	Rental of Manufacturing Space. 

 Zogenix acknowledges that after establishing the infrastructure necessary to provide Manufacturing and Support Services for the Product, Patheon will incur significant fixed costs. Zogenix also
acknowledges that there are opportunity costs for Patheon in dedicating a portion of its Facility exclusively to the manufacture of the Product. Therefore, the Parties hereby agree that, until such time as the tiered pricing referred to in
Section 4.1 above has been agreed between the Parties, Zogenix shall pay to Patheon a rental cost for the area of the Facility required for Manufacturing of GBP 283,333 per calendar month, payable as set out in Section 5.9, in
consideration of the undertakings and in accordance with the specific terms set out in Schedule A attached hereto. 
  

 

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 - - 18 - -

	5.6	Delivery. 

  

	 	(a)	INCOTERMS. Delivery of Products or Materials shall be made EXW the Facility unless otherwise mutually agreed. Such title as Patheon has in Products or Materials
and risk of loss or of damage to Products or Materials shall remain with Patheon until Products or Materials are loaded onto the carrier’s vehicle by Patheon for shipment at the Facility at which time title and risk of loss or damage shall
transfer to Zogenix. Patheon shall, in accordance with Zogenix’ instructions and as agent for Zogenix, use / hire the Zogenix-selected freight carrier to ship Products or Materials. 

 

	 	(b)	Volume Variance. Patheon shall make commercially reasonable efforts to ensure that the quantity of Products delivered by Patheon against a Firm Order is [***] of
the quantity indicated on the Firm Order. Patheon will notify Zogenix, in writing or by e-mail, of potential variances that exceed [***]. The Parties will work together to determine how to handle any variance outside of the [***].

 In addition, Patheon shall use reasonable commercial efforts to provide that, at the date of final release by
Patheon, Product supplied to Zogenix shall have a minimum residual shelf life of not less than [***] less than the shelf life of the Product. 
  

	 	(c)	Timing. Patheon will use commercially reasonable efforts and industry standards to provide the facilities, staff and expertise necessary to manufacture
and supply Products as set forth in a Firm Order and in accordance with the terms of this Agreement. Patheon shall use reasonable commercial efforts to ship all Product by the date and in the quantities specified in the applicable Firm Order.
Patheon will notify Zogenix, in writing or by e-mail, of potential delivery delays as soon as is reasonably possible. 

  

	5.7	Invoices and Payment for Service Fees. 

 Patheon shall ensure that each invoice is complete, accurate and conforms to the requirements of this Agreement (including carrying out detailed checks of each invoice before sending the invoice to
Zogenix and any checks required by regulatory or government authorities). Patheon will maintain complete and accurate records of, and supporting documentation for, the amounts invoiced to and payments made by Zogenix hereunder in accordance with
generally accepted accounting principles applied on a consistent basis. At Zogenix’ request Patheon will provide Zogenix such other documentation and information with respect to an invoice as is reasonably requested by Zogenix to verify the
accuracy of the invoice and its compliance with this Agreement. 
  

 

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 - - 19 - - 

 Patheon shall invoice Zogenix the Service Fee for the Product upon the satisfactory completion of Batch
review by Patheon’s quality assurance department. Each such invoice shall, to the extent applicable, identify Zogenix purchase order number, Product numbers, names and quantities, the Service Fee per Finished Pack and the total amount to be
remitted by the Zogenix. Invoices submitted to Zogenix shall be addressed “Attention: Accounts Payable” and sent by e-mail to [***] and/or by post or courier to P.O. Box 910687, San Diego, CA 92191, USA. Payment of all such invoices shall
be made by Zogenix within [***] calendar days from the date of invoice. 
  

	5.8	Invoices and Payment for Support Fees. 

 Unless otherwise specified in Schedule B, Patheon shall invoice Support Fees to Zogenix upon completion of the activity that such Support Fees relate to. Each such invoice shall, to the extent applicable,
identify Zogenix purchase order number, a description of the activity for which the Support Fee is payable, and the total amount to be remitted by the Zogenix. Invoices submitted to Zogenix shall be addressed “Attention: Accounts Payable”
and sent by e-mail to [***] and/or by post or courier to P.O. Box 910687, San Diego, CA 92191, USA. Payment of all such invoices shall be made by Zogenix within [***] calendar days from the date of invoice. 

 

	5.9	Invoices and Payment for Rental of Manufacturing Space. 

 For each month that the rental fee is payable by Zogenix pursuant to Section 5.5, Patheon shall invoice Zogenix in advance for the upcoming month and each such invoice shall be payable within [***]
days of receipt by Zogenix. Each such invoice shall, to the extent applicable, identify Zogenix purchase order number, state the month that the rental fee covers and the total amount to be remitted by the Zogenix. Invoices submitted to Zogenix shall
be addressed “Attention: Accounts Payable” and sent by e-mail to [***] and by post or courier to P.O. Box 910687, San Diego, CA 92191, USA. Payment of all such invoices shall be made by Zogenix by the end of the month named in the invoice.

  

	5.10	Product Deficiencies. 

 (a) Inspection. Zogenix shall inspect the Products manufactured by Patheon upon receipt thereof and, within [***] calendar days, shall give Patheon written notice (a “Deficiency
Notice”) of all claims for Products that have not been manufactured according to the Manufacturing Requirements. Should Zogenix fail to provide Patheon with written notice of its acceptance or rejection within [***] calendar days of receipt
of a delivery of Products, then the delivery shall be deemed to have been accepted by Zogenix on the [***] day after delivery. Except as set out in Section 6.2 or for other deficiencies which could not have been reasonably discovered by means
available to Zogenix at the time of acceptance, Patheon shall have no liability for any Product that does not meet the Manufacturing Requirements if Patheon has not received notice within such [***] calendar day period. 

 
  

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 - - 20 - - 

 (b) Determination of Deficiency. Upon receipt of a Deficiency Notice, Patheon shall
have [***] business days to advise Zogenix by notice in writing that it disagrees with the contents of such Deficiency Notice. If Zogenix and Patheon fail to agree within [***] business days after Patheon’s notice to Zogenix as to whether any
Products identified in the Deficiency Notice deviate from the Manufacturing Requirements, then the parties shall mutually select an independent third party to evaluate if the Products deviate from the Manufacturing Requirements. Such evaluation
shall be binding on the parties, and if such evaluation certifies that any Products deviate from the Manufacturing Requirements due to Patheon’s acts or omissions constituting a material breach of this Agreement, Zogenix may reject those
Products in the manner contemplated by Section 5.10(c) and Patheon shall be responsible for the payment for the work performed by the independent third party. In addition, at Zogenix’ request, Patheon shall manufacture a replacement batch
of Product at no additional cost to Zogenix and will be liable to Zogenix in amounts not to exceed the limits in Section 9.2(a). If such evaluation does not so certify in respect of any such Products, then Zogenix shall be deemed to have
accepted delivery of such Products on the fortieth day after delivery and Zogenix shall be responsible for payment for the services provided by the independent third party. For any Product rejected by Zogenix, whether the rejection is accepted by
Patheon or is found not to conform by the independent third party due to Patheon’s acts or omissions constituting a material breach of this Agreement, Patheon shall be responsible for all reasonable direct costs relating to return or
destruction of the rejected Product subject to the limitations set out herein. 
 (c) Product rejection during
manufacturing. In the event that deficiencies are identified during the manufacturing process and prior to approval, the Parties agree that: (i) where the deficiency is due to Patheon’s breach of its obligations hereunder then Patheon
shall reimburse Zogenix for any Materials lost subject to the limitations set out in this Agreement; or (ii) where such deficiency is not due to Patheon’s breach of any of its obligations hereunder then Zogenix shall pay Patheon the
applicable Service Fee less any unused Materials. For the avoidance of doubt, no Service Fee will be chargeable if the rejection occurs at a point where Patheon can recommence the manufacture of the batch of Product without any appreciable loss of
Capacity. 
 (d) Product rejection after receipt by Zogenix. Subject to the provisions of Sections 5.10(a) and 9.2(b),
Zogenix has the right to reject and return, at the expense of Patheon, any portion of any shipment of Products that deviates from the Manufacturing Requirements, without invalidating any remainder of such shipment, to the extent that such deviation
arises from Patheon’s negligent or intentional failure to provide the Manufacturing and Support Services in accordance with the Manufacturing Requirements. 
  

 

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 - - 21 - - 

 ARTICLE 6 
 CO-OPERATION 
  

	6.1	Joint Steering Committee. 

 The Parties shall establish a steering committee, with an equal number of representatives from each of Patheon and Zogenix (the “Steering Committee”). Both Parties will ensure that their
representatives attend regular meetings of the committee and report matters relevant to the performance of this Agreement. The meetings will be chaired by a representative of the Parties; until the end of the first complete calendar year the
chairperson will be nominated by Zogenix, the chairperson for the following calendar year will be nominated by Patheon and the chair will continue to alternate in this way on a calendar-annual basis. Minutes of the committee’s meetings, to be
signed by both Parties, will be circulated to both Parties. 
 The steering committee will perform the following functions:- 

 

	 	(a)	considering revisions to the Specification and the impact of those revisions upon yields, Capacity, costs and other terms of this Agreement; 

 

	 	(b)	reviewing service levels and the performance of both parties; 

  

	 	(c)	arranging once every three (3) years, a detailed risk analysis of the operation required by this Agreement, agreeing actions to be taken as a result of that
analysis and monitoring the implementation of those actions and reviewing the terms of this Agreement; 

  

	 	(d)	Capacity and contingency planning, investing in increasing Capacity and revisions to the Capacity; 

 

	 	(e)	reviewing the Schedules of this Agreement where relevant; 

  

	 	(f)	such other major functions as the parties jointly agree to assign to it; and 

 

	 	(g)	Review the recommendations of the project co-ordinator (who will be a Patheon employee and be responsible for the day-to-day management of the Agreement and the
co-ordination of any issues arising between the Parties). 

 The Steering Committee may issue recommendations (especially in
technical and pharmaceutical matters) to the parties but cannot bind either party to a legal commitment. However, each Party will reasonably co-operate with the other in implementing the findings of the Steering Committee, to the extent that such
implementation is necessary to give effect to this Agreement and does not unfairly and materially prejudice the interests of that Party. The relevant decisions are to be taken by the Party concerned and shall only be deemed to bind that Party if
confirmed in a written note signed by that Party. 
  

 - - 22 - - 

	6.2	Product Recalls. 

In the event Zogenix believes it may be necessary to conduct a recall, field correction, market withdrawal, stock recovery, or other
similar action with respect to Product (a “Recall”), Zogenix shall make all decisions as to such Recall and Patheon shall cooperate with Zogenix in any Recall. 
 To the extent that a Product recall results from, or arises out of, a failure by Patheon to provide the Manufacturing and Support Services in accordance with the Manufacturing Requirements, such recall
shall be made, subject to the limitations as set forth in Section 9.3, at Patheon’s sole cost and expense, and Patheon shall use commercially reasonable efforts to replace the recalled Products with new Products within [***] days from the
date that Zogenix definitively notifies Patheon about the recalled Products, contingent upon the receipt or availability of Materials. In the event that Patheon is unable to replace the recalled Products within this [***] period (except where such
inability results from a failure to receive the required Materials), then Zogenix may request Patheon to reimburse Zogenix for the price that Zogenix paid to Patheon for manufacturing the affected Products. In all other circumstances, recalls or
other corrective actions shall be made at Zogenix’s cost and expense. 
  

	6.3	Governmental Agencies. 

 Each party may communicate with any governmental agency, including but not limited to governmental agencies responsible for granting MA for the Products, regarding such Products if in the opinion of that
party’s counsel, such communication is necessary to comply with the terms of this Agreement or the requirements of any law, governmental order or regulation; provided, however, that unless in the reasonable opinion of its counsel there is a
legal prohibition against doing so, such party shall permit the other party to accompany and take part in any communications with the agency, and to receive copies of all such communications from the agency, subject to redaction of any trade secrets
not disclosable. Patheon shall inform Zogenix of any inspection of its facility by the FDA. 
  

	6.4	Records and Accounting by Patheon. 

 Patheon shall keep financial records as are necessary to comply with regulatory requirements applicable to Patheon. Copies of such records shall be retained for a period of time as required by law.

  
  

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 - - 23 - - 

	6.5	Access, Person in Plant. 

 (a) Access. Patheon shall provide Zogenix with reasonable access at mutually agreeable times to areas of the Facility involved in the manufacture, storage or control of the Product or Materials,
subject to Sections 2.1(g) and (n). 
 (b) Person in Plant. In addition to the access provided for in
Section 6.1(a), Patheon shall permit one Zogenix employee to be permanently located within the Facility during the term of the Agreement ( the “PIP”). Patheon will provide the PIP with reasonable office space within the Facility and
the PIP shall have access to such office space during regular working hours throughout the term of the Agreement. The PIP shall comply with any and all confidentiality, security, safety, quality or similar guidelines that apply to persons present in
the Facility and that are communicated by Patheon. The cost of this provision is included in the rental fee. 
  

	6.6	Subordination and Waiver Agreement. 

 Patheon will agree to execute a Subordination and Waiver Agreement with Zogenix and GE Capital Corporation (“GE”) (and any other lender to Zogenix) in a form reasonably agreeable to
Patheon with respect to specified Zogenix assets used in the performance of services under this Agreement. 
  

	6.7	Relationship Manager. 

 Each Party shall forthwith upon execution of this Agreement appoint one of its employees to be a relationship manager responsible for liaison between the parties. The relationship managers shall meet
whenever necessary and appropriate to review the current status of the business relationship and manage any issues that have arisen, including costs. 
  

 - - 24 - - 

 ARTICLE 7 
 TERM AND TERMINATION 
  

	7.1	Term. 

 This Agreement shall become
effective as of the Effective Date and shall continue for a period of five (5) years from such date (the “Initial Term”), unless terminated earlier by one of the Parties as provided herein. Either Party may terminate this
Agreement by serving no less than [***] months written notice to the other. The Parties may mutually agree in writing to renew the Agreement for additional terms prior to the expiration of the Initial Term or the then current term. 

 

	7.2	Termination for Cause. 

 (a) Either party at its sole option may terminate this Agreement upon written notice in circumstances where the other party has failed to remedy a material breach of any of its representations, warranties
or other obligations under this Agreement within [***] calendar days following receipt of a written notice (the “Remediation Period”) of said breach that expressly states that it is a notice under this Section 7.2(a) (a
“Breach Notice”). The aggrieved party’s right to terminate this Agreement pursuant to this Section 7.2(a) may only be exercised for a period of [***] calendar days following the expiry of the Remediation Period (in
circumstances where the breach has not been remedied) and if the termination right is not exercised during this period then the aggrieved party shall be deemed to have waived the breach of the representation, warranty or obligation described in the
Breach Notice. 
 (b) Either party at its sole option may immediately terminate this Agreement upon written notice, but without
prior advance notice, to the other party in the event that: 
  

	 	(i)	the other party is declared insolvent or bankrupt by a court of competent jurisdiction; 

 

	 	(ii)	a voluntary petition of bankruptcy is filed in any court of competent jurisdiction by such other party; or 

 

	 	(iii)	this Agreement is assigned by such other party for the benefit of creditors. 

 (c) Patheon may terminate this Agreement on [***] months’ prior written notice if the Zogenix assigns pursuant to Section 12.5 any of its rights under this Agreement to an assignee that, in the
opinion of Patheon acting reasonably, is: 
  

	 	(i)	[***]; or 

  

 

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 - - 25 - - 

	 	(ii)	[***]; or 

  

	 	(iii)	[***]. 

  

	7.3	Obligations on Termination. 

 If this Agreement expires or is terminated in whole or in part as per 7.2 or as defined in this Agreement, then (in addition to any other remedies Patheon may have in the event of default by Zogenix):-

  

	 	(a)	Zogenix shall take delivery of and pay for all undelivered Products that are manufactured and/or packaged pursuant to a Firm Order, at the price in effect at the time
the Firm Order was placed; 

  

	 	(b)	Zogenix shall purchase, at Patheon’s cost, the Inventory applicable to the Products which was purchased, produced or maintained by Patheon in contemplation of
filling Firm Orders or in accordance with Section 5.3 prior to notice of termination being given; 

  

	 	(c)	Zogenix shall satisfy the purchase price payable pursuant to Patheon’s orders with suppliers of Materials, provided such orders were made by Patheon in reliance on
Firm Orders or in accordance with Section 5.3; and 

  

	 	(d)	Zogenix shall pay to Patheon removal and Make Good Costs associated with the removal of any of its Equipment from the Facility. For the avoidance of doubt, the Make
Good Costs shall be limited to a maximum financial contribution of [***] all as evidenced by appropriate documentation provided by Patheon; and 

  

	 	(e)	Patheon shall return to Zogenix or dispose of all unused Materials (with shipping, disposal and related expenses, if any, to be borne by Zogenix); and

  

	 	(f)	Except where termination of the Agreement is a result of an unremediated breach by Zogenix, Patheon will provide exit services necessary to support the manufacture of
Product up until such time as commercial production capability has been established in an alternative location. Zogenix will pay Patheon for the services rendered, including but not limited to production and technology transfer support, charged at
rates determined in good faith between the parties; and 

  

 

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 - - 26 - - 

	 	(g)	Where termination of the Agreement is a result of an unremediated breach by Zogenix, Patheon shall cease all Manufacturing and Support Services, except those quality
and other activities that must by applicable law be continued; and 

  

	 	(h)	[***]. 

  

	 	(i)	In addition, but only in the event of either: [***]. 

 Any termination or expiration of this Agreement shall not affect any outstanding obligations or payments due hereunder prior to such termination or expiration, nor shall it prejudice any other remedies
that the parties may have under this Agreement. For greater certainty, termination of this Agreement for any reason shall not affect the obligations and responsibilities of the parties pursuant to Article 9, all of which survive any termination. In
addition thereto and for the avoidance of doubt, in the event that Zogenix reasonably believes that Patheon does not intend to fulfil its obligations hereunder and intends to terminate the Agreement contrary to the provisions herein for no legal or
equitable reason then, in the case of such anticipatory breach, the parties agree that, in addition to the other remedies available herein, Zogenix reserves the right to equitable relief and to apply to the applicable court for an order for such
specific performance or such other injunctive relief as may be available in equity in order to prevent irreparable harm being inflicted upon Zogenix and to ensure Patheon’s continued performance hereunder and, furthermore, Patheon shall not
unreasonably challenge such application or order obtained thereunder. 
  

 

	***	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. 

  

 - - 27 - - 

 ARTICLE 8 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  

	8.1	Authority. 

 Each
party covenants, represents and warrants that it has the full right and authority to enter into this Agreement and that it is not aware of any impediment that would inhibit its ability to perform its obligations hereunder. 

 

	8.2	Covenants, Representations and Warranties. 

 Zogenix covenants, represents and warrants that: 
 (a) the Specifications for each
of the Product(s) are its property and that Zogenix may lawfully disclose the Specifications to Patheon; 
 (b) any Intellectual
Property utilised by Patheon in connection with the provision of the Manufacturing and Support Services according to the Specifications 
  

	(i)	is Zogenix’ unencumbered property, 

  

	(ii)	may be lawfully used as directed by Zogenix, and 

  

	(iii)	such use does not infringe and will not infringe any Third Party Rights; 

 (c) the provision of the Manufacturing and Support Services by Patheon in respect of any Product pursuant to this Agreement or use or other disposition of any Product by Patheon as may be required to
perform its obligations under this Agreement does not and will not infringe any Third Party Rights; 
 (d) there are no actions
or other legal proceedings, the subject of which is the infringement of Third Party Rights related to any of the Specifications, or any of the Materials, or the sale, use or other disposition of any Product made in accordance with the
Specifications; 
 (e) the Specifications for all Products conforms to all applicable cGMPs, laws and regulations; and

 (f) the Products, if labelled and manufactured in accordance with the Specifications and in compliance with applicable cGMPs:

  

	 	(i)	may be lawfully sold and distributed in the Territory, 

  

	 	(ii)	will be fit for the purpose intended, and 

  

 - - 28 - - 

	 	(iii)	will be safe for human consumption. 

  

	8.3	Permits. 

 (a)
Zogenix shall be solely responsible for obtaining or maintaining, on a timely basis, any permits or other regulatory approvals in respect of the Products or the Specifications, including, without limitation, all marketing and post-marketing
approvals. 
 (b) Patheon shall maintain all licenses, permits, and approvals required by all applicable governmental entities
and under all applicable Laws for its manufacturing facilities and the performance of its obligations hereunder. 
  

	8.4	Compliance with Laws. 

 Each party, in connection with its performance under this Agreement, shall comply with all applicable laws, rules, regulations and orders. 

 

	8.5	Patheon Representations, Covenants and Limited Warranty. 

 Patheon covenants, represents and warrants that: 
  

	 	(a)	all Products manufactured, packaged and tested by it hereinafter shall comply with cGMPs, Manufacturing Requirements, the MA and Specifications; and

  

	 	(b)	all Products delivered by it to Zogenix shall not be “adulterated” as that term is defined in the FDC Act and other applicable laws; and

  

	 	(c)	Patheon shall be responsible for obtaining and shall obtain all necessary environmental or other licenses, certificates, approvals or permits required under applicable
law and any private permissions, whether original documents or modifications to existing documents, which are necessary to manufacture the Product at the Facility and shall provide copies thereof to Zogenix upon request by Zogenix. Patheon shall
provide Zogenix with immediate verbal notice, confirmed in writing within twenty-four (24) hours, in the event of revocation or modifications of any license, certificate, approval or permit, or in regard to any other event or regulatory action
or involvement, such as an order or notice, which in any way impacts upon Patheon’s ability to manufacture and deliver the Product or use of the Facility. 

 

	 	(d)	as of the date hereof: (i) Patheon is, and during the term of this Agreement Patheon shall continue to be, in full compliance with applicable law; and
(ii) Patheon holds all licenses, permits, registrations and similar governmental authorizations necessary or required for Patheon to conduct its operations and business and is in compliance with all such licenses, permits, registrations and
authorizations; and 

  

 - - 29 - - 

	 	(e)	No receiver, administrative receiver or administrator has been appointed nor any notice given, petition presented or order made for the appointment of any such person
over the whole or any part of the assets or undertaking of Patheon; and 

  

	 	(f)	No petition has been presented, no order has been made and no resolution has been passed for the winding up of Patheon or for the appointment of a liquidator or
provisional liquidator of Patheon; and 

  

	 	(g)	No voluntary arrangement has been proposed or is in force under the Insolvency Act 1986 Section 1 in respect of Patheon; and 

 

	 	(h)	No unsatisfied judgment is outstanding against Patheon and no demand has been served on the Company under the Insolvency Act 1986 Section 123(1)(a); and

  

	 	(i)	There are not pending or in existence any investigations or inquiries by or on behalf of any governmental or other body in respect of the affairs of Patheon; and

  

	 	(j)	None of the activities or contracts or rights of Patheon is ultra vires, unauthorised, invalid or unenforceable or in breach of any contract or covenant; and

  

	 	(k)	Patheon is empowered and duly qualified to carry on business in all jurisdictions in which it now carries on business and is duly authorised to enter into this
Agreement; and 

  

	 	(l)	it is the exclusive legal and beneficial owner or legitimate licensee of all rights, title and interest in any intellectual property it may use in order to fulfil its
obligations hereunder and there are no liens, encumbrances or other charges over any of them; and 

  

	 	(m)	in the event that Patheon wishes to enter into any competitive arrangements during the Term hereof Patheon undertakes that, prior to the commencement of such
activities, the relevant third party shall perform a full and reasonable investigation into any potential conflicts relating to the prior art of Zogenix and provide Patheon with evidence of the same. In the event that there is evidence of a conflict
then Patheon agrees not to enter into a manufacturing agreement with such third party. 

 PATHEON MAKES NO OTHER WARRANTY OF
ANY KIND, EITHER EXPRESSED OR IMPLIED, BY FACT OR LAW, OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT. PATHEON MAKES NO WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR WARRANTY OF MERCHANTABILITY. 

 

 - - 30 - - 

 ARTICLE 9 
 REMEDIES AND INDEMNITIES 
  

	9.1	Consequential Damages. 

 Under no circumstances whatsoever shall either party be liable to the other in contract, tort, negligence, breach of statutory duty or otherwise for any (direct or indirect) loss of profits, of
production, of anticipated savings, of business or goodwill or for any liability, damage, costs or expense of any kind incurred by the other party of an indirect or consequential nature. 

 

	9.2	Limitation of Liability. 

 (a) Materials. Patheon shall not be responsible for any loss or damage to the Materials paid for by Zogenix, as set out in Schedule C, except for any loss or damage resulting from Patheon’s
negligence in handling or storage of the Materials or any act or omission by Patheon in the manufacture of the Product not in compliance with cGMPs or the Manufacturing Requirements. Patheon shall reimburse Zogenix for the cost of such Materials
used in any Batch not found to meet Specifications after manufacture pursuant to resolution under Section 5.9(b), or where it agrees that its acts or omission in the manufacture caused the failure of the Product not to conform, or any lost or
damaged Materials resulting from Patheon’s negligence in handling or storage of the Materials, up to an amount not to exceed [***]. 

However, notwithstanding the aforementioned, if Patheon loses or damages Zogenix Materials whilst such Materials are being stored (either in their raw
form or in finished Product form) then, provided such loss is recoverable under Patheon’s insurance policy and not subject to any “all risks” exclusions, and, more specifically, such Materials were not lost or damaged due to an error
or errors in processing or manufacturing of Zogenix’ Product or Materials while being worked upon (such losses being specifically limited in the above paragraph and not applicable, howsoever caused, herein unless loss or damage from a peril
insured herein ensues and then this policy shall cover for such ensuing loss or damage) then Patheon shall reimburse Zogenix for the loss of such Materials up to the amount recoverable from its insurer provided, however, that Zogenix agrees and
understands that Patheon shall only insure Zogenix Materials up to the values recommended and provided to Patheon by Zogenix. For the avoidance of doubt, in the event any such losses are unrecoverable due to the under-estimation of such values, then
Patheon shall not be liable for such unrecoverable losses. Any payment made hereunder shall further be subject to any deductible amounts applied by the insurer. For the avoidance of doubt the coverage rate for property is [***]. For the first Year
of the Agreement Zogenix have stated that, at any given time, there will be no more that [***] of Product and Materials stored at Patheon’s Facility (the insurance premium, payable by Zogenix, is [***]. This limit shall be reviewed and agreed
each year of the Agreement by the Parties and confirmed in writing separately. 
  

 

	***	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. 

  

 - - 31 - - 

 (b) Products. Except in circumstances where Patheon has failed to provide the
Manufacturing and Support Services in accordance with the Manufacturing Requirements, or except as provided in Sections 9.3 or 9.2, Patheon shall not be liable nor have any responsibility for any deficiencies in, or other liabilities associated
with, any Product manufactured by it, including, without limitation, any deficiencies with respect to the Specifications, the safety, efficacy or marketability of the Products or any distribution thereof. 

(c) Nothing in this Agreement is intended to limit either party’s liability for claims for losses relating to death or bodily injury
or resulting from the fraudulent misrepresentation of a party. 
  

	9.3	Patheon. 

 Subject
to Sections 9.1 and 9.2, Patheon agrees to defend, indemnify and hold Zogenix, its officers, employees and agents harmless against any and all losses, damages, costs, claims, demands, judgments and liability to, from and in favour of third parties
(“Claim(s)”) resulting from, or relating to any Claim for damages or losses or property damage to the extent that such loss, injury or damage is the result of a failure by Patheon to provide the Manufacturing and Support Services in
accordance with the Manufacturing Requirements or in breach of the warranties made herein. Such indemnity shall be limited to an amount not to exceed [***]. For avoidance of doubt, the limits on Patheon’s liability shall not be cumulative over
the Term of the Agreement. 
 In the event of a Claim, Zogenix shall: 

 

	 	(a)	promptly notify Patheon of any such claim; 

  

	 	(b)	use commercially reasonable efforts to mitigate the effects of such claim; 

 

	 	(c)	reasonably cooperate with Patheon in the defence of such claim; 

  

	 	(d)	permit Patheon to control the defence and settlement of such claim, all at Patheon’s cost and expense. 

 

	9.4	Zogenix. 

 Subject
to Sections 9.1 and 9.2, Zogenix agrees to defend, indemnify and hold Patheon, its officers, employees and agents harmless against any and all losses, damages, costs, claims, demands, judgments and liability to, from and in favour of third parties
resulting from, or relating to any claim of infringement or alleged infringement of any Third Party Rights in respect of the Products, and any claim of bodily injury or property damage to the extent that such injury or damage is the result of a
breach of this Agreement by Zogenix, including, without limitation, any representation or warranty contained herein, except to the extent that any such losses, damages, costs, claims, demands, judgments and liability are due to the negligence or
wrongful act(s) of Patheon, its officers, employees or agents. 
  

 

	***	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. 

  

 - - 32 - - 

 In the event of a claim, Patheon shall: 

 

	 	(a)	promptly notify Zogenix of any such claims; 

  

	 	(b)	use commercially reasonable efforts to mitigate the effects of such claim; 

 

	 	(c)	reasonably cooperate with Zogenix in the defence of such claim; 

  

	 	(d)	permit Zogenix to control the defence and settlement of such claim, all at Zogenix’ cost and expense. 

 

 - - 33 - - 

 ARTICLE 10 
 CONFIDENTIALITY 
  

	10.1	Confidentiality. 

The Parties agree that they are governed by the provisions of the Confidentiality Agreement, which agreement remains in effect in
accordance with its terms. 
  

	10.2	Confidential Information 

 Except as expressly provided, the Parties agree that, for the Term and [***] years thereafter, the receiving Party shall keep completely confidential and shall not publish or otherwise disclose and shall
not use for any purpose except for the purposes contemplated by this Agreement any Confidential Information furnished to it by the disclosing Party hereto pursuant to 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. 

  

 - - 34 - - 

 ARTICLE 11 
 DISPUTE RESOLUTION 
  

	11.1	Commercial Disputes. 

 In the event of any dispute arising out of or in connection with this Agreement (other than a dispute determined in accordance with Section 5.9(b) or a Technical Dispute), the parties shall first try
to solve it amicably. In this regard, any party may send a notice of dispute to the other, and each party shall appoint, within ten (10) Business Days from receipt of such notice of dispute, a single representative having full power and
authority to solve the dispute. The representatives so designated shall meet as necessary in order to solve such dispute. If these representatives fail to solve the matter within one month from their appointment, or if a party fails to appoint a
representative within the ten (10) Business Days period set forth above, such dispute shall immediately be referred to the Chief Operating Officer or Executive Vice President, Operations (or such other officer as they may designate) of Patheon
and the President and Chief Executive Officer of Zogenix who will meet and discuss as necessary in order to try to solve the dispute amicably. Should the parties fail to reach a resolution under this Section 11.1, their dispute will be settled
in accordance with Section 12.14. 
  

	11.2	Technical Dispute Resolution. 

 In the event of a dispute (other than disputes in relation to the matters set out in Sections 5.8(b) and 11.1) between the parties that is exclusively related to technical aspects of the manufacturing,
packaging, labelling, quality control testing, handling, storage or other activities under this Agreement (a “Technical Dispute”), the parties shall follow the process for conflict resolution set out in the Quality Agreement. In the
event that the parties cannot agree whether a dispute is a Technical Dispute, Section 11.1 shall prevail. 
  

 - - 35 - - 

 ARTICLE 12 
 MISCELLANEOUS 
  

	12.1	Intellectual Property. 

 Zogenix and Patheon hereby acknowledge that neither party has, nor shall it acquire, any interest in any of the other party’s Intellectual Property or Improvements thereto unless otherwise expressly
agreed to in writing. Each party agrees not to use any Intellectual Property of the other party, except as specifically authorised by the other party or as required for the performance of its obligations under this Agreement. 

Improvements to any and all aspects of the technology solely applicable to the manufacturing of the Product shall be wholly owned by
Zogenix. Patheon shall own any manufacturing processes of a generic nature that it develops or any Improvements to any pre-owned Patheon intellectual property or know-how. However, in the event that Zogenix requires the use of any Patheon owned
intellectual property, know-how or Improvements in order to manufacture the Product then Patheon shall grant a non-exclusive, royalty-free, worldwide license to Zogenix for use of the same solely in relation to the manufacturing, sale or
distribution of the Product. For the avoidance of doubt nothing contained herein shall operate or is intended to provide one party with any rights over the Intellectual Property rights of the other party or any Improvements thereto unless explicitly
stated herein. 
  

	12.2	Insurance. 

 Each
party shall maintain commercial general liability insurance to include products liability coverage for bodily injury, which insurance shall afford limits of not less than GBP 2,500,000 for each occurrence (and in the aggregate only with respect to
bodily injury liability) with a reputable insurance carrier. Each party will provide the other with a current certificate of insurance evidencing the above and showing the name of the issuing company, the policy number, the effective date, the
expiration date and the limits of liability. The insurance certificate shall further provide that the carrier will endeavour to provide a minimum of thirty (30) days’ written notice to the insured of a cancellation of, or material change
in, the insurance. 
  

	12.3	Independent Contractors. 

 The parties are independent contractors and this Agreement shall not be construed to create between Patheon and Zogenix any other relationship such as, by way of example only, that of employer-employee,
principal agent, joint-venturer, co-partners or any similar relationship, the existence of which is expressly denied by the parties hereto. 
  

	12.4	No Waiver. 

 Except
as provided by Section 7.2, either party’s failure to require the other party to comply with any provision of this Agreement shall not be deemed a waiver of such provision or any other provision of this Agreement. 

 

 - - 36 - - 

	12.5	Assignment. 

Patheon may assign this Agreement or any of its rights or obligations hereunder with the prior written consent of Zogenix, such consent to
be given provided that the assignee covenants in writing with Zogenix to be bound by the terms of this Agreement. Subject to Section 7.3(c), Zogenix may assign this Agreement or any of its rights or obligations hereunder without approval from
Patheon; provided, however, that Zogenix shall give prior written notice of any assignment to Patheon and any assignee shall covenant in writing with Patheon to be bound by the terms of this Agreement. Notwithstanding the foregoing provisions of
this Section 12.5, either Party may assign this Agreement to any of its Affiliates or to a successor to or purchaser of all or substantially all of its business, provided that such assignee executes an agreement with the non-assigning party
hereto whereby it agrees to be bound hereunder. 
  

	12.6	Force Majeure. 

Non-performance by either party hereto shall be excused to the extent that performance is rendered impossible by strike, lock out or
labour disturbance, fire, explosion, flood, acts of God, terrorism, war or civil commotion, governmental acts or orders or restrictions, public utilities or common carriers, or any other reason where failure to perform is beyond the reasonable
control of and is not caused by the negligence of the non-performing party. Such non-performing party shall exercise best efforts to eliminate the force majeure event and to resume performance of its affected obligations as soon as practicable. In
the event that, as a result of such force majeure event, a party does not perform all of its obligations hereunder for any period of [***] consecutive days, in addition to any other rights hereunder, the other party may terminate this Agreement on
[***] days prior written notice to the non-performing party. A party claiming a right to excused performance under this Section 12.6 shall immediately notify the other party in writing of the extent of its inability to perform, which
notice shall specify the occurrence beyond its reasonable control that prevents such performance. Neither party shall be entitled to rely on a Force Majeure Event to relieve it from an obligation to pay money (including any interest for delayed
payment) which would otherwise be due and payable under this Agreement. 
  

	12.7	Additional Product. 

Additional products may be added to this Agreement and such additional products shall be governed by the general conditions hereof with
any special terms (including, without limitation, price) governed by an addendum hereto. 
  

 

	***	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. 

  

 - - 37 - - 

	12.8	Notices. 

 All
communications and other notices under this Agreement shall be in writing and shall be considered as duly given if sent by fax and confirmed by registered letter sent within two (2) Business Days following the date of the fax to the Parties at
the following addresses (or at any other address which the parties shall have indicated giving notice thereof in the ways set forth above): 
  

	 	a)	as to Zogenix, to: 

 Zogenix,
Inc. 
 Attention: Chief Financial Officer 
 12671 High Bluff Drive, Suite 200 
 San Diego 

California, 92130 
 U.S.A. 
 Tel. No.:        +1 858 436 8594

 Fax No.:         +1 858 259 1166 

 

	 	b)	as to Patheon, to: 

 Patheon
UK Limited. 
 Attention: Executive Director and General Manager 

Kingfisher Drive 
 Covingham 
 Swindon 

Wiltshire SN3 5BZ 
 England 
 Tel. No.:        + 44
(0) 1793-524-411 
 Fax No.:         + 44 (0) 1793-487-053 

All the communications and other notices under this Agreement which have been delivered in person or which have been transmitted by fax and confirmed by
registered letter sent within 2 (two) working days following the date of the fax, shall be considered as received by the addressee respectively upon the third Business day subsequent to that of the date of the fax. 

 

	12.9	Severability. 

 If
any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such determination shall not impair or affect the validity, legality or enforceability of the remaining
provisions hereof, and each provision is hereby declared to be separate, severable and distinct. 
  

	12.10	Entire Agreement. 

 Upon the
Effective Date this Agreement, together with the Quality Agreement and the Confidentiality Agreement, constitutes the full, complete, final and integrated agreement between the parties hereto relating to the subject matter hereof and, unless
expressly stated otherwise in this Agreement, supersedes all previous written or oral negotiations, commitments, agreements, transactions or understandings with respect to the subject matter hereof including but not limited to the Binding Letter
Agreement and the Occupancy Agreement. Any modification, amendment or supplement to this Agreement must be in writing and signed by authorised representatives of both parties. The Quality Agreement takes precedence over the Agreement on
quality & regulatory issues, on all other matters the Agreement shall prevail. 
  

 - - 38 - - 

	12.11	No Third Party Benefit or Right. 

 For greater certainty, nothing in this Agreement shall confer or be construed as conferring on any third party any benefit or the right to enforce any express or implied term of this Agreement. Pursuant
to section 1(2) of the Contracts (Rights of Third Parties) Act 1999 the parties intend that no term of this Agreement may be enforced by a Third Party. 
  

	12.12	Execution. 

 This
Agreement shall be executed in duplicate signature, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

	12.13	Governing Law. 

This Agreement shall be construed and enforced in accordance with the laws of England and the parties hereby agree to the exclusive
jurisdiction of the courts of England without giving effect to the conflict of laws principles thereof. The parties further expressly agree that the 1980 United Nations Convention on Contracts for the International Sale of Goods (and any
improvements or additions thereto) shall not apply to this Agreement. 
  

	12.14	Resolution. 

In the event of any dispute, controversy or claim arising out of, relating to or in connection with any provision of this Agreement, the
parties shall first try to settle their differences amicably via the Steering Committee. If the Joint Steering Committee cannot achieve resolution, then the matter will be referred to Patheon and Zogenix Senior Management. If Patheon and Zogenix
Senior Management cannot achieve resolution, either party may seek to have such dispute resolved by a competent court as stated in Section 12.13. 
  

	12.15	Publicity of Agreement. 

 Neither party shall use the name of the other party in any publicity, advertising or in any written, verbal or any other form of public disclosure without the express written consent of the other party,
including references to the existence of and the relationship created under this Agreement, except as required by law or regulation. 
  

 - - 39 - - 

 IN WITNESS WHEREOF, the duly authorised representatives of the parties have executed this
Agreement as of the date first written above. 
  

			
	 PATHEON UK LIMITED

		
	By	 	 /s/ Aldo Braca

	
	 Aldo Braca

	 President, Patheon Europe

			
		
	Date	 	
 

			
	
	 ZOGENIX, INC.

		
	By	 	 /s/ Roger Hawley

	
	 Roger Hawley

	 Chief Executive Officer

			
		
	Date	 	Nov. 6, 2008

  

 - - 40 - - 

 SCHEDULE A 

PRODUCTS, SERVICE FEES, PRICING ASSUMPTIONS, RENTAL FEES 
 Products 
 The Products covered under this Agreement are as follows: 

 

							
	 Description
	  	 Finished Pack
	  	 
	1.	  	DoseProTM Sumatriptan 6mg/0.5mL (Trade)	  	6 Units per carton	  	
	2.	  	DoseProTM Sumatriptan 6mg/0.5mL (Sample)	  	4 Units per carton	  	
	3.	  	DoseProTM Sodium Chloride 0.9% Solution	  	6 Units per carton	  	
	4.	  	DoseProTM Unfilled Assembled Devices	  	N/A	  	

 Service Fee 
 The Parties agree that, once the Pricing Assumptions below have been reasonably confirmed (or varied by mutual agreement, as the case may be) then a tiered pricing schedule shall be confirmed and agreed
in writing between the parties substantially in the form as set out immediately below. The prices stated below are for initial purposes only and are reduced to reflect the additional revenue received from the rental fee set out in Section 5.5
of the Agreement and are subject to change accordingly. For the avoidance of doubt, Service Fees applicable to tiered pricing after cessation of the rental fee will be higher than that stated below. 

Unit = One DoseProTM device. 
 Conversion
Fee = The Service Fee less the cost of Materials purchased by Patheon. 
 The Service Fee for the first [***] Units ordered for delivery in a
Year is as follows (individual Material costs are set out in Table A-2 below but the costs of certain Materials are to be confirmed and the Parties will update Table A-2 as soon as actual costs are confirmed by the relevant third party supplier):-

  

									
	 Product
	  	Conversion
Fee per Unit	 	Conversion Fee
per Finished Pack	 	Estimated Cost of
Materials per
Finished Pack	 	Service Fee per
Finished Pack
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	 	[***]	 	[***]	 	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	 	[***]	 	[***]	 	[***]
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	 	[***]	 	[***]	 	[***]
	 DoseProTM Unfilled Assembled Devices
	  	[***]	 	[***]	 	[***]	 	[***]

  

 

	***	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. 

  

 - - 41 - - 

 The Service Fee for the [***] to the [***] Unit ordered for delivery in a Year is as follows: 

 

									
	 Product
	  	Conversion Fee
per Unit	 	Conversion Fee
per Finished Pack	 	Estimated Cost of
Materials per
Finished Pack	 	Service Fee per
Finished Pack
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	 	[***]	 	[***]	 	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	 	[***]	 	[***]	 	[***]
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	 	[***]	 	[***]	 	[***]
	 DoseProTM Unfilled Assembled Devices
	  	[***]	 	[***]	 	[***]	 	[***]

 Pricing Assumptions

 Patheon has based the Service Fee for the Product on the following assumptions (the “Pricing Assumptions”): 

 

	A.	[***]. 

  

	B.	[***]. 

  

	C.	[***]. 

  

	D.	[***]. 

  

	E.	[***]. 

  

	F.	[***]. 

  

	G.	[***]. 

  

	H.	[***]. 

  

	I.	[***]. 

  

	J.	[***]. 

  

	K.	[***]. 

  

 

	***	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. 

  

 - - 42 - - 

 Standard Batch Size 
 The Standard Batch Size for the Product is the expected yield from the current validated Batch size (expressed in Units) after secondary packaging from a standard Batch of bulk Product, taking into
account normal production losses and routine sampling for in process controls, finished product testing and retain samples. For the purposes of calculating theoretical Capacity, a Standard Batch Size for the Product has been assumed for Table A-1.
For the avoidance of doubt, the Standard Batch Size shown in Table A-1 may vary from the current validated Batch size, as process optimisation will be required in order to increase the annual Capacity for the Product to the levels set out in Table
A-1. For the purposes of ordering and forecasting under Section 5.2, the Standard Batch Size shall be the current validated Batch size, as updated and agreed in writing by the Parties from time to time. 

Minimum Campaign Size 
 The Minimum
Campaign Size for the Product is the minimum number of Product Batches that will be run consecutively before critical equipment and area cleaning activities must be performed. The Minimum Campaign Size for the Product is dependent on the shift
pattern being utilised and set out in Table A-1. Process optimisation will be required in order to increase the annual Capacity for the Product to the levels set out in Table A-1. 

 

 - - 43 - - 

 TABLE A-1 

 

											
	 Shift Pattern
	  	Annual Capacity
(Units)	 	Bulk Batch Size (L)	 	Standard Batch Size
(Units)	 	Minimum Campaign
Size (Batches)	 	Batches per week
	 A
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 B
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 C
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 D
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]

 Shift Pattern A 

[***] 
 Shift Pattern B 

[***] 
 Shift Pattern C 

[***] 
 Shift Pattern D 

[***] 
  

 

	***	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. 

  

 - - 44 - - 

 TABLE A-2 
 MATERIALS COST 
 DoseProTM Sumatriptan 6mg/0.5mL (Trade) x 6’s 

DoseProTM Sodium Chloride 0.9% Solution x 6’s 
  

															
	 Code
	  	 Description
	  	Quantity	  	UOM	  	Unit Cost	  	UOM	  	Bach Cost
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
		  		  		  		  	Materials Cost per Batch	  	[***]
	 Packed Yield
	  	[***]	  		  		  	Materials Cost per Pack	  	[***]

  

 

	***	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. 

  

 - - 45 - - 

 MATERIALS COST 
 DoseProTM Sumatriptan 6mg/0.5mL (Sample) x 4’s 
  

															
	 Code
	  	 Description
	  	Quantity	  	UOM	  	Unit Cost	  	UOM	  	Bach Cost
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  		  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  		  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  		  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  		  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 [***]
	  		  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
		  		  		  		  	Materials Cost per Batch	  	[***]
	 Packed Yield
	  	[***]	  		  		  	Materials Cost per Pack	  	[***]

  

 

	***	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. 

  

 - - 46 - - 

 SCHEDULE B 

SUPPORT FEES 
 The
charges and fees set out below shall apply as and when indicated for the related services. For the avoidance of doubt Zogenix shall be informed of and agree in writing to any such charges being made and issue a purchase order prior to them being
incurred by Patheon. 
 Stability Testing Fees 
 Where Patheon is required to perform stability testing over and above the Annual Stability Commitment, Patheon will charge Zogenix [***] per test point and per storage condition on said Batch. If
stability samples are placed on stability storage at the Facility, this fee includes the cost of storing the stability samples. In the event that the stability samples are placed on stability storage at the facility of a third party, then the costs
of such storage shall be invoiced by Patheon to Zogenix at Patheon’s direct cost. 
 For the avoidance of doubt, a test point shall be
considered any stability testing performed at a discrete point in time subsequent to release testing for a Batch, such test points to be defined in the stability protocol provided by Zogenix. A storage condition shall be considered any unique
combination of storage requirements including but not limited to temperature, humidity, orientation of samples and packaging, with such storage conditions to be defined in the stability protocol provided by Zogenix. 

Patheon shall calculate the total stability testing fee per Batch of product placed on stability based on the number of test points specified in the
stability protocol provided by Zogenix and invoice Zogenix 50% of said fee once samples are placed in stability storage, with the balance of the stability fee to be invoiced upon completion of testing on the final stability test point for that
Batch. The Client shall pay all such invoices within thirty days of the date thereof. 
 Maintenance of Regulatory Filings 

Patheon will invoice Zogenix for regulatory activities requested by Zogenix for submission or maintenance of regulatory filings for the Product at the
rates set out in the table below. 
  
  

	***	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. 

  

 - - 47 - - 

					
	REGULATORY SUPPORT ACTIVITIES
	Site Related
			
	 Activity
	  	 Definition
	  	 Fee

	 [***]
	  	[***]	  	
	 [***]
	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]
		  	[***]	  	
		  	[***]	  	[***]
		  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]
		  	[***]	  	[***]
	  
 Product
Related

			
	 Activity
	  	 Definition
	  	 Fee

	 [***]
	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]
	 [***]
	  	[***]	  	
	 [***]
	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]
	  

Miscellaneous

			
	 Activity
	  	 Definition
	  	 Fee

	 [***]
	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]

 Batch Record and Specification
Update 
 Pursuant to Section 2.1(j), Patheon shall invoice the Client [***]. 
 Product Quality Review 
 Where Patheon is requested by Zogenix to provide data over and
above the PQR Data or where Patheon is requested by Zogenix to perform trending and critical analysis on the PQR Data, Patheon will invoice Zogenix at a rate of [***]. 

 
  

	***	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. 

  

 - - 48 - - 

 Audit Support 
 Patheon’s fee for providing audit support where more than [***] per annum at the Facility is requested by the client, as set out in Section 2.1(g), [***]. 

Artwork Generation and Update 
 Patheon
will invoice Zogenix for artwork generation and update services the fees set out in the table below. 
  

					
	 	  	Generation /Update Fee	 	Fee per Colour
	 Carton
	  	[***]	 	[***]
	 Label
	  	[***]	 	[***]
	 Leaflet
	  	[***]	 	[***]

 For example, the fees for a three-colour carton
would be: 
 [***] 
 If the items
listed below are required for the carton, the following fees will apply: 
 [***] 
 Additional Sampling 
 Patheon will invoice additional samples to Zogenix at the agreed
Service Fee for a Product or the direct cost for a Material. Patheon will also charge Zogenix an administration fee of [***]. 
 Freight
Charges 
 Any freight charges incurred by Patheon on behalf of Zogenix for the shipment of Product or Materials shall be invoiced by Patheon
to Zogenix at [***]. For the avoidance of doubt, freight charges for the delivery of Materials to the Facility are included in the cost of Materials, which are included in the Service Fee and will not be invoiced separately to Zogenix by Patheon.

 Additional Testing 

Patheon’s fee to Zogenix for additional testing will be assessed on a case by case basis and will be dependent on the scope of work required by
Zogenix. 
  

 - - 49 - - 

 Process Optimisation and Project Activities 
 Patheon’s fees for performing optimisation and project activities will be assessed on a case by case basis depending on the scope of work required and will be agreed between the Parties prior to such
activities being commenced. For the avoidance of doubt, project activities include, by way of illustration and not limitation, initial validation and qualification activities and Product (and future product) development work but do not include work
that can, by agreement between the Parties, be covered by the existing resources allocated to the Manufacturing Services. 
  

 - - 50 - - 

 SCHEDULE C 

MATERIALS 
  

															
	 Materials
	  	Vendor Supply
Agreement	 	MRP	 	Purchase Order
Placement	 	Invoice Receipt	 	Invoice Payment	 	Setting Safety
Stock Levels	 	Physical Stock
Holding
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

  

					
	Z = The Client	 	P = Patheon	 	N/A = Not Applicable

  

 

	***	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. 

  

 - - 51 - - 

 SCHEDULE D 

EQUIPMENT 

PREAMBLE 
  

	 	1.	All capitalised terms used in this Schedule (“Schedule D”) shall bear the same meaning as in the Agreement unless expressly stipulated otherwise herein.

  

	 	2.	It is understood that Zogenix owns all Equipment listed herein and title, risk and ownership thereof remains either with Zogenix or with GE at all times as per the
terms of the Deed signed between the Parties and GE. 

  

	 	3.	This Schedule D shall come into force when the Agreement is signed by both Parties. 

 

	 	4.	This Schedule D shall remain in full force and effect for the Term of the Agreement unless otherwise agreed between the Parties and, unless stipulated otherwise herein,
the terms of the Agreement shall apply hereto. 

 Therefore the Parties agree the following terms in relation to the maintenance
and repair of the Equipment:- 
 A. Patheon Responsibilities 
 A.1. Patheon shall be responsible for the day to day maintenance and operating of the Equipment and the management of the preventative maintenance thereof including managing the inventory and
assuring availability of spare parts, change parts amd consumables. However, for the avoidance of doubt, Patheon shall not be liable for the cost of spares, additions, change parts or any other componentry required for the continued running or
servicing of the Equipment such costs to be borne solely by Zogenix. 
 A.2. Patheon undertakes to use reasonable commercial efforts to
maintain the Equipment in working order and such undertaking shall be considered discharged provided that Patheon has fulfilled the requirements of the preventative maintenance programme (“PPM”) which shall be agreed and amended by the
Parties from time to time. 
 A.3. The Equipment shall be insured by Patheon for risks normally covered by Patheon’s third party
property public liability insurance but shall be subject to the exclusions contained in Patheon’s “All Risks”) cover. 
  

 - - 52 - - 

 A.4. In the event any of the Equipment develops a fault or becomes unfit for purpose or incapable of
use, Patheon shall, provided such actions shall not be contrary to any rights of any third parties under the Deed or otherwise breach any warranties, endeavour to remedy the fault as quickly as is reasonably possible. Zogenix shall provide necessary
assistance to Patheon for the remediation thereof. In the event that additional work is required and, due to expediency, such work can be carried out successfully by Patheon and Patheon agrees to undertake such work then the cost thereof shall be
charged to Zogenix and paid in accordance with the terms of the Agreement. 
 A.5. Patheon shall not be liable or responsible for any
consequential damage including the loss of profits arising by reason of the Equipment being out of order from any cause. 
 A.6 Zogenix
authorizes Patheon to effect repairs on Equipment, either by Patheon employees or contractors, and Patheon shall only permit repairs by those employees or contractors who have been agreed by Zogenix as qualified to perform such repairs. Patheon
shall establish and maintain business relationships with contractors who are necessary to perform repairs which cannot be performed by Patheon employees. Patheon shall notify Zogenix in advance of performing major repairs; otherwise, within 48 hours
of effecting the repair. The cost of repairs shall be borne by Zogenix. In addition, Patheon shall maintain records of all Equipment maintenance, repairs, and spares replacement as required by cGMP and agreed between the Parties. Furthermore,
Zogenix authorizes Patheon to replace defective, damaged, worn-out, or non-functional components of Equipment as specified in a spare parts list and replacement instructions; such list to be agreed upon by the Steering Committee. Patheon shall
procure such parts directly from suppliers or through Zogenix, as the case may be, and maintain an inventory of such parts as specified on the spare parts list; the cost of spare parts shall be borne by Zogenix. 

B. Zogenix Responsibilities 
 B.1. Zogenix shall insure the Equipment at all times. 
 B.2. Zogenix shall pay for
and provide all necessary spares. 
 B.3. [***]. 
 B.4. In the event Zogenix require external contractors to be present at Patheon’s site for the purposes of repairing or assessing the Equipment, Zogenix undertakes to ensure that all such
contractors are approved by Patheon prior to being given access to the Patheon site and adhere to all and any health and safety and environmental requirements whilst at Patheon. 

 

	***	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. 

  

 - - 53 - - 

	B.5.	Zogenix shall be responsible and liable for any alterations and additions to the Equipment. 

C. Planned Preventative Maintenance List 
 The Parties agree to develop and confirm a mutually agreeable planned preventative maintenance list and attach it hereto as soon as reasonably possible. 

D. General 
 All terms
and conditions of the Agreement are applicable to this Schedule D. In the event of any conflict between the terms herein and the Agreement then the terms of the Agreement shall prevail. For the avoidance of doubt, however, nothing explicit or
implied within the Agreement shall be construed as stating that ownership, risk and title to the Equipment remains and vests at all times with either Zogenix or GE. 
 E. Equipment List 
  

									
	 Process Step
	 	 Description
	 	 Manufacturer / Vendor
	 	 Model Number
	 	 Serial No.

	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]

  

	***	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. 

  

 - - 54 - - 

									
	 Process Step
	 	 Description
	 	 Manufacturer / Vendor
	 	 Model Number
	 	 Serial No.

	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]

  

	***	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. 

  

 - - 55 - - 

									
	 Process Step
	 	 Description
	 	 Manufacturer / Vendor
	 	 Model Number
	 	 Serial No.

	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]	 	[***]	 	[***]

  

	***	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. 

  

 - - 56 - - 

 SCHEDULE E 

FORECAST MODEL 

Rental Fee Period: [***] 
  

	–	[***] 

	–	[***] 

	–	Expressed in Finished Packs 

	–	Forecast increments = Standard Batch Size converted into Finished Packs 

	–	For the pruposes of the models below it is assumed [***] 

					
	–	 		 	= Firm Order period

 As at [***] 

 

																									
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

  

	***	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. 

  

 - - 57 - - 

 As at [***] 
  

																									
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	

  

	***	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. 

  

 - - 58 - - 

 As at [***] 
  

																									
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  		  	
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  		  	
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  		  	
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  		  	

 As at [***] 
  

																									
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

 Tiered Pricing:
[***] 
  

	–	[***] 

	–	[***] 

	–	Expressed in Finished Packs 

	–	Forecast increments = Standard Batch Size converted into Finished Packs 

	–	[***] 

					
	–	 		 	= Firm Order period

  

 

	***	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. 

  

 - - 59 - - 

 As at [***] 
  

																									
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	 [***]
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

  

	***	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. 

  

 - - 60 - - 

 As at [***] 
  

																									
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	

 As at [***] 
  

																									
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  		  	
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  		  	
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  		  	
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  		  	

 As at [***] 
  

																									
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

 Rental Fee Period and Tiered
Pricing: [***] 
  

	–	[***] 

	–	Expressed in Finished Packs 

	–	Order increments = Standard Batch Size converted into Finished Packs ([***]) 

 

	***	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. 

  

 - - 61 - - 

 As at [***] 
  

																	
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

  

 - - 62 - - 

 As at [***] 
  

																	
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

 As at [***] 

 

																	
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

 As at [***] 

 

																	
	 	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Trade)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sumatriptan 6mg/0.5mL (Sample)
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Sodium Chloride 0.9% Solution
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	 DoseProTM Unfilled Assembled Devices
	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

  

	***	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. 

  

 - - 63 - - 

 SCHEDULE F 

SUPPLY CHAIN TELECONFERENCES AND INVENTORY REPORT 
 Both Parties agree to monthly supply chain teleconferences or face-to-face meetings. The purpose of these meetings is for: 

 

	 	(i)	Patheon to provide updates on near-term Finished Good delivery schedule and potential delays; 

 

	 	(ii)	Patheon to provide updates on issues that may impact mid-term deliveries and/or component requirements; 

 

	 	(iii)	Zogenix to provide an informal intra-quarterly demand update if changes are foreseen to the previously issued forecast; 

 

	 	(iv)	Review of existing Firm Orders and what needs to be committed to before the next meeting; 

 

	 	(v)	Both parties to discuss long range component requirements and challenges; 

  

	 	(vi)	Review of outstanding invoices; 

  

	 	(vii)	Miscellaneous new business. 

 INVENTORY
REPORTS 
 For each Material supplied by Zogenix, as set out in Schedule C, Patheon shall provide to Zogenix, on a weekly basis, a report, in
a format mutually agreed by the Parties, that includes the following information: 
  

	(a)	Starting inventory at the beginning of the weekly period detailing the Patheon SAP code number, Patheon lot number and supplier lot number and expiry;

  

	(b)	A listing of Patheon SAP 101 and 102 transactions for that week detailing the Patheon SAP code number, Patheon lot number and supplier lot number;

  

	(c)	The quantity of materials consumed by batches of Product, media fill simulations and non-commercial activities for that week detailing the Patheon SAP code number,
Patheon lot number and supplier lot number; 

  

	(d)	The quantity of materials rejected for that week detailing the Patheon SAP code number, Patheon lot number and supplier lot number. 

 

 - - 64 - -Co-Promotion Agreement

 Exhibit 10.20 
 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 VERSION 
 CO-PROMOTION AGREEMENT 
 by and
between 
 ZOGENIX, INC. 
 and 
 ASTELLAS PHARMA US, INC. 

Dated as of July 31, 2009 

 TABLE OF CONTENTS 

 

			
	 	  	PAGE
	 ARTICLE I DEFINITIONS
	  	1
		
	 ARTICLE II GRANT
	  	15
		
	 Section 2.1     Grant of Promotion Rights
	  	15
		
	 Section 2.2     Performance Through Affiliates and Subcontracting
	  	16
		
	 Section 2.3     Limitation on Sumatriptan Promotion
	  	16
		
	 Section 2.4     [***]
	  	16
		
	 Section 2.5     Retention of Rights
	  	16
		
	 Section 2.6     New Formulations or Dosage Forms
	  	17
		
	 ARTICLE III COORDINATION OF ACTIVITIES
	  	17
		
	 Section 3.1     Establishment of Committees
	  	17
		
	 Section 3.2     Joint Steering Committee
	  	17
		
	 Section 3.3     Joint Product Team
	  	18
		
	 Section 3.4     Joint Medical Team
	  	18
		
	 Section 3.5     Joint Promotional Review Committee
	  	19
		
	 Section 3.6     Other Terms Applicable to Committees
	  	19
		
	 Section 3.7     Disputes
	  	21
		
	 Section 3.8     Alliance Manager
	  	21
		
	 ARTICLE IV PRODUCT PROMOTION
	  	22
		
	 Section 4.1     Product Detailing by Astellas
	  	22
		
	 Section 4.2     Product Detailing by Zogenix
	  	23
		
	 Section 4.3     Mutual Promotion
	  	24
		
	 Section 4.4     Representations to Customers
	  	25
		
	 Section 4.5     Staffing and Training
	  	25

  

 

	***	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. 

  

			
	 Section 4.6     Promotional Materials; Educational Materials
	  	26
		
	 Section 4.7     Commercial Plan (Including Base Brand A&P Budget)
	  	27
		
	 Section 4.8     Promotion Reports
	  	29
		
	 Section 4.9     Medical Inquiries
	  	29
		
	 Section 4.10   Trademarks
	  	30
		
	 Section 4.11   Product Website
	  	31
		
	 ARTICLE V CLINICAL, COMPLIANCE, AND REGULATORY AFFAIRS
	  	31
		
	 Section 5.1     Regulatory Approvals
	  	31
		
	 Section 5.2     Compliance with Regulatory Requirements
	  	32
		
	 Section 5.3     Compliance
	  	32
		
	 Section 5.4     Communications with Regulatory Authorities
	  	33
		
	 Section 5.5     Product Complaints
	  	34
		
	 Section 5.6     Adverse Drug Experience Reports
	  	34
		
	 Section 5.7     Recalls or Other Corrective Action
	  	35
		
	 Section 5.8     Assistance
	  	35
		
	 ARTICLE VI MANUFACTURING AND SUPPLY; SALES; PRICING
	  	35
		
	 Section 6.1     Obligations of Zogenix
	  	35
		
	 Section 6.2     Volume Forecasts; Sample Forecasts
	  	36
		
	 Section 6.3     [***]
	  	37
		
	 Section 6.4     Sales; Pricing
	  	37
		
	 Section 6.5     Samples
	  	38
		
	 Section 6.6     Manufacturing Matters; Inability to Supply
	  	39
		
	 ARTICLE VII COMPENSATION; RECORDKEEPING; AUDITS
	  	39
		
	 Section 7.1     Astellas Up-Front and Milestone Payments
	  	39
		
	 Section 7.2     A&P Expenses
	  	40

  

 

	***	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. 

  

			
	 Section 7.3     Certain Medical Affairs Expenses
	  	40
		
	 Section 7.4     Expenses Associated with Certain Phase IV Studies
	  	41
		
	 Section 7.5     Other Expenses
	  	41
		
	 Section 7.6     Quarterly Payment of Expenses
	  	41
		
	 Section 7.7     Service Fees and Adjustment Payments
	  	42
		
	 Section 7.8     Tail Payments
	  	43
		
	 Section 7.9     Maintenance of Records; Audits
	  	43
		
	 Section 7.10   Payments
	  	45
		
	 Section 7.11   Zogenix Segment/Astellas Segment
	  	46
		
	 ARTICLE VIII TERM AND TERMINATION
	  	46
		
	 Section 8.1     Term
	  	46
		
	 Section 8.2     Early Termination
	  	46
		
	 Section 8.3     Force Majeure
	  	49
		
	 Section 8.4     Effect of Termination
	  	49
		
	 ARTICLE IX REPRESENTATIONS AND WARRANTIES
	  	51
		
	 Section 9.1     Representations and Warranties of Zogenix
	  	51
		
	 Section 9.2     Representations and Warranties of Astellas
	  	53
		
	 Section 9.3     Product Warranty
	  	55
		
	 Section 9.4     Zogenix Disclaimer
	  	56
		
	 Section 9.5     Astellas Disclaimer
	  	56
		
	 ARTICLE X INTELLECTUAL PROPERTY MATTERS
	  	56
		
	 Section 10.1   Intellectual Property Prosecution and Maintenance
	  	56
		
	 Section 10.2   Ownership
	  	56
		
	 Section 10.3   Infringement
	  	56
		
	 ARTICLE XI INDEMNIFICATION; LIMITS ON LIABILITY
	  	57

			
	 Section 11.1     Indemnification
	  	57
		
	 Section 11.2     Consequential Damages
	  	59
		
	 ARTICLE XII CONFIDENTIALITY AND PUBLICITY
	  	59
		
	 Section 12.1     Proprietary Information
	  	59
		
	 Section 12.2     Disclosures Required by Law
	  	59
		
	 Section 12.3     Publicity
	  	59
		
	 Section 12.4     Survival
	  	60
		
	 ARTICLE XIII NOTICES
	  	60
		
	 Section 13.1     Notices
	  	60
		
	 ARTICLE XIV INSURANCE
	  	61
		
	 Section 14.1     Insurance
	  	61
		
	 ARTICLE XV MISCELLANEOUS
	  	62
		
	 Section 15.1     Arbitration
	  	62
		
	 Section 15.2     Headings
	  	63
		
	 Section 15.3     Severability
	  	63
		
	 Section 15.4     Entire Agreement
	  	63
		
	 Section 15.5     Amendments
	  	63
		
	 Section 15.6     Counterparts
	  	64
		
	 Section 15.7     Waiver
	  	64
		
	 Section 15.8     Force Majeure
	  	64
		
	 Section 15.9     Successors and Assigns
	  	65
		
	 Section 15.10   Assignment
	  	65
		
	 Section 15.11   Construction
	  	65
		
	 Section 15.12   Governing Law
	  	66
		
	 Section 15.13   Equitable Relief
	  	66

			
	 Section 15.14     Relationship Between Parties
	  	66
		
	 Schedules:
	  	
		
	 Schedule         – Primary Specialty Classifications of Professionals in the
Astellas Segment
	  	
	 Schedule         – Post-Effective Date Expenses
	  	
	 Schedule         – Primary Specialty Classifications of Neurologist Professionals in
the Zogenix Segment
	  	

 CO-PROMOTION AGREEMENT 

This Co-Promotion Agreement (this “Agreement”) is made as of July 31, 2009 (the “Effective Date”),
by and between Zogenix, Inc., a Delaware corporation (“Zogenix”), and Astellas Pharma US, Inc., a Delaware corporation (“Astellas”). Each of Zogenix and Astellas is referred to herein individually as a
“Party” and collectively as the “Parties.” 
 WHEREAS, Zogenix desires to collaborate with
Astellas in the promotion and marketing of the Product in the Territory (each as defined below), and Astellas desires to collaborate with Zogenix with respect to such promotion and marketing, all in accordance with the terms and conditions contained
herein; 
 NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants herein contained, the Parties hereto
intending to be legally bound hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 
 As used in this Agreement, the following terms shall have the following meanings: 
 Section 1.1 “3PL” has the meaning set forth in Section 6.3(b)(ii). 
 Section 1.2 “A&P Expenses” means Post-Effective Date costs and expenses paid by a Party (or any of its Affiliates) to a Third Party in connection with the marketing, advertising
and Promotion of the Product, including costs and expenses with respect to: [***] in a Base Brand A&P Budget in accordance with Article III. Notwithstanding the foregoing, “A&P Expenses” shall not include Excluded Expenses.

 Section 1.3 “Act” means the United States Federal Food, Drug, and Cosmetic Act, 21
U.S.C. 301, et. seq., as it may be amended from time to time, and the rules, regulations, and requirements promulgated or issued thereunder. 
 Section 1.4 “Adverse Drug Experience” means any “adverse drug experience” as defined or contemplated by 21 C.F.R. 312.32 or 314.80, as may be amended from time to time,
associated with the use of the Product. 
 Section 1.5 “Adverse Drug Experience Report”
means any oral, written or electronic report of any Adverse Drug Experience transmitted to any Person. 

Section 1.6 “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly controls, is controlled by or is under common control with, such first Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled
by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the ownership
of voting securities, by contract or otherwise. 
  
  

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Section 1.7 “Agreement” has the meaning set forth in the preamble to this Agreement. 

Section 1.8 “Agreement Month” means each calendar month during the Term (including any partial
calendar month in the case of the first and last calendar months of the Term). 
 Section 1.9
“Agreement Quarter” means the Initial Agreement Quarter, and each successive calendar quarter during the Term after the Initial Agreement Quarter (including any partial calendar quarter in the case of the last calendar quarter
during the Term). 
 Section 1.10 “Agreement Year” means each calendar year during the Term
(including any partial calendar year in the case of the first and last calendar years of the Term). 

Section 1.11 “Alliance Manager” has the meaning set forth in Section 3.8. 

Section 1.12 “Allocated A&P Expenses” means those A&P Expenses designated as such in the
Base Brand A&P Budget and allocated between the Parties as set forth in the Base Brand A&P Budget based on [***], including, to the extent designated as Allocated A&P Expenses, (a) A&P Expenses for [***] and (b) A&P
Expenses for [***]. 
 Section 1.13 “Astellas” has the meaning set forth in the Preamble to
this Agreement. 
 Section 1.14 “Astellas Compliance Materials” has the meaning set forth
in Section 5.3(a). 
 Section 1.15 “Astellas Minimum Sales Effort” has the meaning set
forth in Section 4.1(a). 
 Section 1.16 “Astellas Net Sales” means, with respect to a
particular calendar month, the product of (a) the Astellas Segment Dispensed Units for such calendar month, multiplied by (b) the Net Selling Price for that calendar month. 

Section 1.17 “Astellas Promotional Effort” has the meaning set forth in Section 4.1(a).

 Section 1.18 “Astellas Sales Force” means the field force of Sales Representatives
employed or contracted by Astellas. 
  
  

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 Section 1.19 “Astellas Segment” means Professionals in
the Territory with the primary classifications set forth on Schedule 1.19. 
 Section 1.20 “Astellas
Segment Dispensed Units” means, with respect to a particular calendar month, the number of [***] as measured by the third party national audit by Wolters Kluwer (or such other Third Party data source as the Parties may agree from time to
time), excluding [***] (as agreed upon in the Base Brand A&P Budget). By way of clarification, as of the Effective Date, such number of [***] is described as [***] data in the third party national audit by Wolters Kluwer (and, for clarity, such
number, as of the Effective Date, excludes [***] such audit). 
 Section 1.21 “Astellas
Trademarks” means those Trademarks owned or Controlled by Astellas or its Affiliates and identified in a Trademark Consent. 
 Section 1.22 “Back Order Events” has the meaning set forth in Section 6.3(c). 
 Section 1.23 “Base Brand A&P Budget” means the detailed budget developed in connection with each Commercial Plan setting forth the level of spending with respect to A&P
Expenses for which each Party shall be responsible pursuant to this Agreement. The Initial Base Brand A&P Budget has been exchanged in connection with the execution of this Agreement and is made binding hereunder. 

Section 1.24 “Business Day” shall mean a day other than a Saturday or Sunday on which banking
institutions in California and Illinois are open for business. 
 Section 1.25 “Call Plan”
means, with respect to the applicable period, the planning document, in a mutually agreed upon format, proposed by the JPT and approved by the JSC, identifying Jointly Called On Physicians and setting forth call frequency objectives for such
Professionals, and identifying Professionals in the Astellas Segment that Astellas does not intend to call upon during the applicable period and with respect to which the Zogenix Sales Force shall have the right to make calls. 

Section 1.26 “cGMP” shall mean “current Good Manufacturing Practices” as such term is
defined from time to time by the FDA or other relevant Governmental Authority having jurisdiction over the manufacture or sale of the Product pursuant to its regulations, guidelines or otherwise. 

Section 1.27 “Claim” has the meaning set forth in Section 11.1(a). 

Section 1.28 “Co-Funded A&P Expenses” has the meaning set forth in Section 7.2. 

 
  

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 Section 1.29 “Co-Funded Medical Affairs Expenses” has
the meaning set forth in Section 7.3. 
 Section 1.30 “Co-Funded Phase IV Expenses”
has the meaning set forth in Section 7.4. 
 Section 1.31 “Co-P2 Detail” means a
Detail in which the promotional message involving the Product receives [***] during the contact and [***] during the contact, and with respect to which [***] of Incentive Compensation of the applicable Sales Representative as applied to the Product
is [***]. 
 Section 1.32 “Commercial Plan” means the planning document, in a mutually
agreed upon format, setting forth brand objectives, strategic initiatives, and tactical activities related to the Promotion of the Product in the Territory. The Initial Commercial Plan has been exchanged in connection with the execution of this
Agreement and is made binding hereunder. 
 Section 1.33 “Commercial Officers” means the
designated commercial heads of Zogenix and Astellas (or their respective Affiliates), who may be the Chief Executive Officer, Chief Operating Officer, Chief Commercial Officer, Executive Vice President/Senior Vice President of Sales and Marketing,
Vice President of Marketing, Vice President of Sales, or Executive Vice President/Senior Vice President of Commercial (or, if there is no such officer, such other executive or senior officer of the Party or an Affiliate designated by the Chief
Executive Officer of the Party); provided that [***] may be a member of a Committee except [***] 

Section 1.34 “Competing Activities” has the meaning set forth in Section 2.3. 

Section 1.35 “Compliance Materials” has the meaning set forth in Section 5.3(b). 

Section 1.36 “Compliance Records” has the meaning set forth in Section 7.9(a)(i). 

Section 1.37 “Components” means any Product in-process materials, including actuator assemblies.

 Section 1.38 “Confidentiality Agreement” means that certain Confidentiality Agreement
between Zogenix and Astellas US LLC dated August 18, 2008. 
 Section 1.39 “Control”
or “Controlled” means, with respect to patents, know-how, data, information, or other intellectual property rights of any kind, the possession by a Person of the ability to grant a license or sublicense in and to such rights without
violating the terms of any agreement or arrangement between such Person and any other Person. 
  

 

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 Section 1.40 “DDMAC” means the FDA’s Division of
Drug Marketing, Advertising and Communications, or any successor Governmental Authority performing comparable functions in the Territory. 
 Section 1.41 “Deductions” means, with respect to a particular calendar month, the following deductions paid, incurred or accrued, applied in a consistent manner and (as applicable)
calculated in accordance with GAAP (consistently applied): [***] 
 Section 1.42 “Demand
Unit” means, with respect to a particular period, the number of [***] as measured by the third party national audit by Wolters Kluwer (or such other Third Party data source as the Parties may agree from time to time), excluding [***] (as
agreed upon in the Base Brand A&P Budget). By way of clarification, as of the Effective Date, such number of [***] is described as [***] data in the third party national audit by Wolters Kluwer (and, for clarity, such number, as of the Effective
Date, excludes [***] such audit). 
 Section 1.43 “Detail” means an in-person, face-to-face
sales presentation of the Product made by a Sales Representative to a Professional, including a P1 Detail, a P2 Detail, or a Co-P2 Detail. 
 Section 1.44 “Development Officers” means the designated lead development heads of Zogenix and Astellas (or their respective Affiliates), who may be the Chief Development Officer or
Executive Vice President/Senior Vice President of Development or Research and Development (or, if there is no such officer, such other executive officer or senior officer of the Party or an Affiliate designated by the Chief Executive Officer of the
Party). 
 Section 1.45 “Effective Date” has the meaning set forth in the preamble to this
Agreement. 
 Section 1.46 “Enforcement Action” has the meaning set forth in
Section 10.3(b). 
 Section 1.47 “Excluded Expenses” means costs and expenses paid by
a Party (or any of its Affiliates) in connection with: [***] 
 Section 1.48 “Expense
Records” has the meaning set forth in Section 7.9(a)(iv). 
  

 

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 Section 1.49 “FDA” means the United States Food and
Drug Administration or any successor agency performing comparable functions in the Territory. 

Section 1.50 “Final Astellas Promotional Period” has the meaning set forth in Section 7.8.

 Section 1.51 “Force Majeure Event” has the meaning set forth in Section 15.8(a).

 Section 1.52 “GAAP” means generally accepted accounting principles as applied in the
United States. 
 Section 1.53 “Generic Drug Act” has the meaning set forth in
Section 9.1(h). 
 Section 1.54 “Governmental Authority” means any court, agency,
authority, department, regulatory body or other instrumentality of any government or country or of any national, federal, state, provincial, regional, county, city or other political subdivision of any such government or any supranational
organization of which any such country is a member, which has competent and binding authority to decide, mandate, regulate, enforce, or otherwise control the activities of the Parties contemplated by this Agreement. 

Section 1.55 “Health Care Provider” means any “health care provider,” as that term is used
in the PhRMA Code. 
 Section 1.56 “Hospital Segment” means the non-federal hospital
setting outside of Emergency Medicine. 
 Section 1.57 “Incentive Compensation” means, with
respect to a Sales Representative and the Product, the variable, periodic target compensation [***] to which the Sales Representative becomes eligible based on the performance by such Sales Representative. 

Section 1.58 “Indemnified Party” has the meaning set forth in Section 11.1(a). 

Section 1.59 “Indemnified Person” has the meaning set forth in Section 11.1(a). 

Section 1.60 “Indemnifying Party” has the meaning set forth in Section 11.1(a). 

Section 1.61 “Initial Agreement Quarter” means the period commencing on the Effective Date and
ending on September 30, 2009. 
  
  

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 Section 1.62 “Initial Base Brand A&P Budget” means
the first Base Brand A&P Budget under this Agreement, which Base Brand A&P Budget shall cover the period commencing on the Effective Date and ending on [***] shall set forth a preliminary budget, including [***], for the period commencing on
[***] (such preliminary budget for [***], the “Preliminary 2010 Budget”). 
 Section 1.63
“Initial Commercial Plan” means the first Commercial Plan under this Agreement, which Commercial Plan shall cover the activities to be conducted and the expenses for which each Party shall be responsible during the Launch Period.
The Initial Commercial Plan shall include the Initial Base Brand A&P Budget. 
 Section 1.64
“Initial Period” has the meaning set forth in Section 4.7(a). 
 Section 1.65
“Initial Sales Force Training Program” has the meaning set forth in 4.5(d). 
 Section 1.66
“Initial Sample Forecast” has the meaning set forth in Section 6.2(c). 
 Section 1.67
“Initial Term” has the meaning set forth in Section 8.1(a). 
 Section 1.68
“Initial Volume Forecast” has the meaning set forth in Section 6.2(b). 
 Section 1.69
“JAMS” has the meaning set forth in Section 15.1. 
 Section 1.70 “Jointly
Called On Physicians” means Professionals to whom both Zogenix and Astellas may direct Details in accordance with the Call Plan, which Professionals shall consist of (a) in the case of Zogenix, [***], and (b) in the case of
Astellas, [***]. 
 Section 1.71 “JMT” has the meaning set forth in Section 3.1.

 Section 1.72 “JPRC” has the meaning set forth in Section 3.1. 

Section 1.73 “JPT” has the meaning set forth in Section 3.1. 

Section 1.74 “JSC” has the meaning set forth in Section 3.1. 

Section 1.75 “Launch” means the first commercial sale of the Product in the Territory to a Third
Party once all Regulatory Approvals have been obtained. 
 Section 1.76 “Launch Period” has
the meaning set forth in Section 4.1(b). 
  
  

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Section 1.77 “Legal Requirements” means (a) the American Medical Association Guidelines on
Gifts to Physicians from Industry, (b) the PhRMA Code, (c) the Office of Inspector General Compliance Program Guidance for Pharmaceutical Manufacturers, dated April, 2003, (d) the Act, the Generic Drug Act, the PDMA, the FDA’s
applicable regulations and guidelines concerning the advertising of prescription drug products, and DDMAC’s applicable promotional guidelines, and (e) all federal, state and local laws, and the rules, regulations, guidances, guidelines and
requirements of all Governmental Authorities in effect from time to time applicable to the manufacture, Promotion, distribution, warehousing, handling, and sale of the Product (including Samples) in the Territory, including those governing price
reporting, reimbursement, monetary disclosure, anti-kickback matters, false claims, and equal employment and non-discrimination. 
 Section 1.78 “Letter Agreement” has the meaning set forth in Section 15.4. 
 Section 1.79 “Loss” has the meaning set forth in Section 11.1(a). 
 Section 1.80 “Minimum Demand Unit Threshold” has the meaning set forth in Section 8.2(c)(ii). 

Section 1.81 “[***] Threshold” has the meaning set forth in Section 8.2(c)(ii). 

Section 1.82 “Minimum Sales Effort” means, with respect to a particular period, the Astellas Minimum
Sales Effort or the Zogenix Minimum Sales Effort, as applicable. 
 Section 1.83 “NDA”
means the “new drug application” (as such term is used under the Act) with respect to the Product with reference number 22-239 that was submitted by Zogenix to the FDA on December 28, 2007 and approved by the FDA on July 15,
2009, and all subsequent submissions, supplements, and amendments thereto. 
 Section 1.84 “Net
Sales” means, with respect to a particular [***], the gross invoiced sales of Product to a Third Party in the Territory for that [***], less the Deductions for that [***]. 

Section 1.85 “Net Selling Price” means, with respect to a particular [***], the quotient of
(a) the Net Sales for such [***], divided by (b) the number of Territory Invoiced Units for such [***], provided that with respect to any [***] for which there are no Territory Invoiced Units, the Net Selling Price for such [***]
shall be equal to the Net Selling Price for the most recent preceding [***] in which there were Territory Invoiced Units. 
 Section 1.86 “Net Sales Records” has the meaning set forth in Section 7.9(a)(vi). 
  

 

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 Section 1.87 “Option Exercise Period” has the meaning
set forth in Section 8.1(b). 
 Section 1.88 “Option Payment” has the meaning set
forth in Section 8.1(b). 
 Section 1.89 “Order” means any award, decision,
injunction, judgment, decree, order, ruling, or verdict entered, issued, made, or rendered by any Governmental Authority or by any arbitrator. 
 Section 1.90 “P1 Detail” means a Detail in which the promotional message involving the Product is the principal topic of discussion during the contact, regardless of the Incentive
Compensation of the Sales Representative who performs the Detail. 
 Section 1.91 “P2
Detail” means a Detail in which the promotional message involving the Product is emphasized more than any other product during the contact, except for the product in the P1 Detail, regardless of the Incentive Compensation of the Sales
Representative who performs the Detail. 
 Section 1.92 “Paragraph IV Notice” has the
meaning set forth in Section 10.3(a). 
 Section 1.93 “PDMA” means the Prescription
Drug Marketing Act, as amended, and the rules and regulations promulgated thereunder. 
 Section 1.94
“Person” means any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization, labor union, or other entity or
Governmental Authority. 
 Section 1.95 “Phase IV Clinical Studies” means all
post-Regulatory Approval clinical studies conducted with the Product, including studies to evaluate effectiveness or impact on patient’s quality of life, to monitor safety, or to fulfill post-Regulatory Approval requirements of a Governmental
Authority. 
 Section 1.96 “PhRMA Code” means the PhRMA Code on Interactions with
Healthcare Professionals (revised as of July 2008 and as may be further revised from time to time). 

Section 1.97 “PIR” or “Product Information Request” has the meaning set forth in
Section 4.9. 
 Section 1.98 “Post-Effective Date” means, with respect to costs and
expenses, only those costs and expenses incurred by a Party (a) after the Effective Date, or (b) prior to the Effective Date and listed on Schedule 1.98. 

 

 9 

 Section 1.99 “Primary Detail Equivalent” means a
primary Detail equivalent for the Product equal to [***], [***], or [***]. For the avoidance of doubt, Details that are not P1 Details, P2 Details, or Co-P2 Details [***]. 

Section 1.100 “Product” means Sumavel DosePro needle-free delivery system (sumatriptan injection
6mg/0.5mL), or such other formulations or dosage strengths of such product deemed to be a Product in accordance with Section 2.6. 
 Section 1.101 “Product Complaint” means any written, electronic, or verbal communication that alleges deficiencies related to the identity, quality, durability, reliability,
effectiveness, or performance of the Product after the Product is released for distribution. 

Section 1.102 “Product Website” has the meaning set forth in Section 4.11. 

Section 1.103 “Professional” means a physician or other health care practitioner who is permitted by
law to prescribe the Product. 
 Section 1.104 “Promote,” “Promotional”
and “Promotion” mean those activities normally undertaken by a pharmaceutical company to encourage sales or appropriate use of a product, including details, product sampling, detail aids, coupons, discount cards, journal
advertising, direct mail programs, direct-to-consumer advertising, convention exhibits and other forms of marketing, advertising, public relations or promotion. 
 Section 1.105 “Promotion Commencement Date” means the date that is the [***] of (i) the date that [***], and (ii) the [***] (x) [***], and (y) [***]. 

Section 1.106 “Promotion Records” has the meaning set forth in Section 7.9(a)(ii). 

Section 1.107 “Promotional Effort Reinstatement Date” has the meaning set forth in
Section 4.1(e). 
 Section 1.108 “Promotional Materials” has the meaning set forth in
Section 4.6(a). 
  
  

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 Section 1.109 “Proprietary Information” means any
proprietary or confidential information communicated by or on behalf of one Party (or any of its Affiliates) to the other Party (or any of its Affiliates) in connection or relating to this Agreement (including discussions and negotiations relating
hereto), whether communicated prior to, on, or following the Effective Date, including the Technology and financial, marketing, business, technical and scientific information or data, information related to a Party’s compensation of its Sales
Representatives, information contained within any Commercial Plan or Base Brand A&P Budget, and the information exchanged pursuant to this Agreement, whether communicated in writing, orally or electronically. For the avoidance of doubt, the
commercial data and information generated by each Party in connection with its activities under this Agreement are the Proprietary Information of that Party, the terms of this Agreement are the Proprietary Information of both Parties, and training
materials provided by Astellas to Zogenix are the Proprietary Information of Astellas (in each case, subject to the exceptions below). Proprietary Information shall not include information that the receiving Party can show through written
documentation: 
 (a) at the time of disclosure, is publicly known; 

(b) after the time of disclosure, becomes part of the public domain, except by breach of an agreement between the
disclosing Party or any Affiliate thereof and the receiving Party or any Affiliate thereof; 
 (c) is or was in
the possession of the receiving Party or any Affiliate thereof at the time of disclosure by the disclosing Party and was not acquired directly or indirectly from the disclosing Party or any Affiliate thereof or from any Third Party under an
agreement of confidentiality to the disclosing Party or any Affiliate thereof; and 
 (d) is or was developed by
the receiving Party or its Affiliates without use of or reference to the other Party’s Proprietary Information. 
 Section 1.110 “Quarterly Expense Share” has the meaning set forth in Section 7.6. 
 Section 1.111 “Regulatory Approval” means any and all consents or other authorizations or approvals required from a Governmental Authority to market and sell the Product in the
Territory. 
 Section 1.112 “Royalty Payments” has the meaning set forth in
Section 8.4(b). 
 Section 1.113 “Safety Stock” means (a) with respect to each
[***], a quantity of the Product equal to the [***] of the Product [***] prior to such [***]; and (b) with respect to each [***], the quantity of the Product for [***]; which Product, in each case, ((a) and (b)), to qualify as Safety Stock
during such month (x) shall [***], (y) must meet [***], and (z) has [***]. 
 Section 1.114
“Sales Force” means the Astellas Sales Force or the Zogenix Sales Force, as the case may be.
  

 

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 Section 1.115 “Sales Representatives” means sales
representatives employed by Astellas or Zogenix, or employed or contracted by a Third Party contracted by Astellas or Zogenix to provide sales representatives, to Detail the Product, who have been trained and equipped to Detail the Product in
accordance with this Agreement.
 Section 1.116 “Sample Forecast” has the meaning set forth
in Section 6.2(d). 
 Section 1.117 “Sample Order” means a written purchase order in a
form reasonably acceptable to Zogenix that sets forth, with respect to the period covered thereby, (a) the quantities of Samples to be delivered by Zogenix to Astellas and (b) the required delivery dates therefor. 

Section 1.118 “Samples” has the meaning set forth in Section 6.5(a). 

Section 1.119 “Selected Deductions” means all Deductions other than those described in
Section 1.41(d).  
 Section 1.120 “Serious Adverse Drug Experience” means any
“serious adverse drug experience” as defined or contemplated by 21 C.F.R. 312.32 or 314.80, as may be amended from time to time, associated with use of the Product. 

Section 1.121 “Serious Adverse Drug Experience Report” means any Adverse Drug Experience Report that
involves a Serious Adverse Drug Experience. 
 Section 1.122 “Service Fee” has the meaning
set forth in Section 7.7(a). 
 Section 1.123 “Shared A&P Expenses” means A&P
Expenses, other than Allocated A&P Expenses. 
 Section 1.124 “Specialty Level Data”
means national data provided by Wolters Kluwer (or such other Third Party data providers as the Parties may agree from time to time) that measures Units dispensed with respect to specialties in the applicable segment in the Territory during a
specified time period. 
 Section 1.125 “Subsequent Plan Period” has the meaning set forth
in Section 4.7(a). 
 Section 1.126 “Tail Payment” has the meaning set forth in
Section 7.8. 
 Section 1.127 “Technology” means all pharmacological, toxicological,
preclinical, clinical, technical or other similar information, data and analysis and know-how relating to the Product or the manufacture thereof and all proprietary rights relating thereto owned or otherwise Controlled by Zogenix or its Affiliates;
provided that, for clarity, commercial data and information generated by or for Astellas hereunder shall not constitute Technology. 
 Section 1.128 “Term” means the Initial Term and any extension period following exercise of the Term Extension Option. 
  

 12 

 Section 1.129 “Term Extension Option” has the meaning
set forth in Section 8.1(b). 
 Section 1.130 “Territory” means the United States,
excluding Puerto Rico and the other territories and possessions of the United States. 
 Section 1.131
“Territory Invoiced Units” means, with respect to a particular [***], the number of Units invoiced by or on behalf of Zogenix to Third Parties in the Territory. 

Section 1.132 “Third Party” means any Person other than Astellas or Zogenix or their respective
Affiliates. 
 Section 1.133 “Timely Supply” means (a) with respect to [***], the
delivery by Zogenix of such Samples by [***], and (b) with respect to [***] the delivery by Zogenix of such Product [***]. 
 Section 1.134 “Trade Demand” means, with respect to any period, the aggregate number of Units ordered for delivery by Zogenix during such period by Third Party wholesalers, other
distributors, and retailers in the Territory. 
 Section 1.135 “Trademark” means any
trademark, trade dress, service mark, trade name, brand name, corporate name, logo, business symbol, or any other source identifying word, slogan, symbol or design, or any combination thereof, whether registered or unregistered, or any registration
and application therefor or any renewal of such registration. 
 Section 1.136 “Trademark
Consent” has the meaning set forth in Section 4.10(b). 
 Section 1.137 “Training
Records” has the meaning set forth in Section 7.9(a)(iii). 
 Section 1.138
“Unit” means a single dose of Product. 
 Section 1.139 “United States Bankruptcy
Code” means the U.S. Bankruptcy Code, 11 U.S.C. §§ 101, et seq. 
 Section 1.140
“Vacancy” means, with respect to a Sales Force, a vacancy in the position of a Sales Representative included or contemplated to be included in the Sales Force or other sustained unavailability of such a Sales Representative to
Detail the Product during the relevant period. 
 Section 1.141 “Volume Forecast” has the
meaning set forth in Section 6.2(b). 
  
  

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 Section 1.142 “Volume Records” has the meaning set
forth in Section 7.9(a)(v). 
 Section 1.143 “WAC” means wholesale acquisition cost as
published by Zogenix in national price compendia. 
 Section 1.144 “Zogenix” has the
meaning set forth in the preamble to this Agreement. 
 Section 1.145 “Zogenix Change of
Control” shall occur when: 
 (a) any person or “group” (as such terms are defined below) is
or becomes the “beneficial owner” (as defined below), directly or indirectly, of shares of capital stock or other interests of Zogenix then outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in
the election of the directors, managers, or similar supervisory positions (“Voting Stock”) of Zogenix representing [***] or more of the total voting power of all outstanding classes of Voting Stock of Zogenix; 

(b) Zogenix enters into a merger, consolidation, or similar transaction with another Person (whether or not Zogenix is the
surviving entity) and as a result of such merger, consolidation, or similar transaction the Persons that beneficially owned, directly or indirectly, the shares of Voting Stock of Zogenix immediately prior to such transaction do not beneficially own,
directly or indirectly, shares of Voting Stock of the surviving Person representing at least a majority of the total voting power of all outstanding classes of Voting Stock of the surviving Person, other than a merger, consolidation, or similar
transaction with another Person in which more than [***] of the individuals with a vice president or more senior title with Zogenix prior to such merger, consolidation, or similar transaction remain with the surviving Person; 

(c) Zogenix sells or transfers to any Third Party, in one or more related transactions, properties or assets representing
all or substantially all of Zogenix’s assets; or 
 (d) the holders of capital stock of Zogenix approve a
plan or proposal for the liquidation or dissolution of Zogenix. 
 For the purpose of this definition of Zogenix Change of
Control, (A) “person” and “group” have the meanings given such terms under Section 13(d) and 14(d) of the United States Securities Exchange Act of 1934 and the term “group” includes any group acting for the
purpose of acquiring, holding or disposing of securities within the meaning of Rule 13d-5(b)(1) under the United States Securities Exchange Act of 1934, (B) a “beneficial owner” shall be determined in accordance with Rule 13d-3 under
the United States Securities Exchange Act of 1934, and (C) the term “beneficially owned” and “beneficially own” shall have meanings correlative to that of “beneficial owner.” 

 
  

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Section 1.146 “Zogenix Compliance Materials” has the meaning set forth in Section 5.3(b).

 Section 1.147 “Zogenix Minimum Sales Effort” means, with respect to a particular period,
the obligations set forth in Section 4.2(a). 
 Section 1.148 “Zogenix Promotional
Effort” has the meaning set forth in Section 4.2(a). 
 Section 1.149 “Zogenix Sales
Force” means the field force of Sales Representatives employed or contracted by Zogenix. 

Section 1.150 “Zogenix Segment” means (a) Professionals in the Territory with a primary
classification of Neurologist as set forth on Schedule 1.150 and (b) such other Professionals in the Territory as are not included in the Astellas Segment. Such classification shall be made pursuant to a mutually agreed upon source. 

Section 1.151 “Zogenix Supply Failure” shall occur if, in any [***], Zogenix [***], the lesser of
(a) [***], or (b) [***] as specified in [***]. 
 Section 1.152
“Zogenix Trademarks” means the Trademarks consisting of (a) SumavelTM, for which Zogenix has sought registration for in the United States Patent and Trademark Office, (b) DoseProTM, for which Zogenix has sought
registration for in the United States Patent and Trademark Office, (c) Zogenix®, and (d) such other
Trademarks owned or Controlled by Zogenix approved for use with the Product by the JPT, and, in each case, all related domain names and other trademark related rights. 
 ARTICLE II 
 GRANT 

Section 2.1 Grant of Promotion Rights 
 During the Term, subject to and in accordance with the terms and conditions of this Agreement, Zogenix hereby grants to Astellas and Astellas hereby accepts a co-exclusive (with Zogenix) right to Promote
the Product under the Zogenix Trademarks in the Territory. For purposes of clarification, subject to and in accordance with the terms and conditions of this Agreement, Zogenix shall, at all times during the Term, have the right itself or through the
use of Third Party Sales Representatives to Promote the Product in the Territory. 
  

 

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 Section 2.2 Performance Through Affiliates and Subcontracting 

No Party may assign, subcontract, or otherwise transfer or delegate any of its rights (including rights and licenses granted pursuant to
Section 4.6 or 4.10) or obligations under this Agreement without the express written permission of the other Party, which consent may be withheld by the other Party in its sole discretion, except that: (a) either Party may transfer,
assign, or delegate such rights or obligations pursuant to Section 15.10; and (b) without the other Party’s consent, (i) either Party may perform any or all of its obligations and exercise any or all of its rights and licenses
under this Agreement through any of its Affiliates; provided, however, that such Party shall remain responsible for the performance of its obligations under this Agreement; (ii) either Party may subcontract with one or more Third Parties
to provide Sales Representatives to Detail the Product; and (iii) Zogenix may subcontract or sublicense to a Third Party its right and obligation to manufacture the Product hereunder. 

Section 2.3 Limitation on Sumatriptan Promotion 

Neither Party shall Promote, distribute, offer for sale, or sell any product containing injectable sumatriptan or injectable triptan as
an active ingredient in the Territory during the Term, other than the Product (such Promotion, distribution, offering for sale or selling, “Competing Activities”), provided, however, that if either Party is the subject of any
acquisition, merger, consolidation, or similar transaction with or by a Third Party (including any acquisition of all or substantially all of such Party’s business or assets relating to the Product by a Third Party or the acquisition by such
Party of the business or any assets of a Third Party) and that Third Party (or its assets that are being acquired) is engaged in Competing Activities or has a license, ownership interest or other rights in one or more products, the Promotion,
distribution, offering for sale, or selling of which would constitute Competing Activities (each, a “Competing Product”), then the continuation or other conduct of those Competing Activities or Competing Activities with respect to
any such Competing Product by such Party (or its successor, acquiror, or assignee) shall be deemed not to be a breach of this Section 2.3. 
 Section 2.4 [***] 
 [***]. 

Section 2.5 Retention of Rights 
 Zogenix retains and shall retain all proprietary and property interests in the Product until the point of sale or, in the case of Samples, until delivered to Astellas as contemplated by
Section 6.5. Astellas shall not have nor represent that it has any control or proprietary interest or property interests in the Product, except for the rights and licenses granted hereunder. Except as expressly set forth herein, nothing
contained herein shall be deemed to grant Astellas, by implication, a license or other right or interest in any patent, Trademark or other similar property of Zogenix or its Affiliates. Except as expressly set forth herein, nothing contained
herein shall be deemed to grant Zogenix, by implication, a license or other right or interest in any patent, Trademark or other similar property of Astellas or its Affiliates. 

 
  

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 Section 2.6 New Formulations or Dosage Forms 

If Zogenix develops during the Term an injection product with sumatriptan as an active ingredient administered through the DosePro
needle-free delivery system with a formulation or dosage strength of sumatriptan that is different from the Product, then Zogenix shall provide written notice to Astellas of such development [***] and Astellas shall have the right upon written
notice to Zogenix within [***] elect to have such product be deemed a Product under this Agreement. If Astellas timely makes such election, the Parties shall diligently and in good faith negotiate suitable amendments to this Agreement to incorporate
such product in this Agreement (including financial terms) and to provide Astellas the right to co-promote such product. For the avoidance of doubt, nothing contained in this Section 2.6 is in derogation of Zogenix’s obligations under
Section 2.3. 
 ARTICLE III 
 COORDINATION OF ACTIVITIES 
 Section 3.1 Establishment of
Committees 
 Within thirty (30) days of the Effective Date, the Parties agree to establish, in each case for the
purposes specified herein, (i) a Joint Steering Committee (the “JSC”); (ii) a Joint Product Team (“JPT”); (iii) a Joint Medical Team (“JMT”); and (iv) a Joint Promotional Review
Committee (“JPRC”, and collectively with the JSC, the JPT, and the JMT, the “Committees”)). The Parties acknowledge and agree that none of the Committees has the power to amend, modify or waive any of the terms
or conditions of this Agreement. 
 Section 3.2 Joint Steering Committee 

(a) The JSC shall be established by the Parties and shall be made up of an equal number of representatives from each Party. Initially,
the JSC shall have [***] members, [***] of whom shall be appointed by Zogenix in its sole discretion, and [***] of whom shall be appointed by Astellas in its sole discretion. Subject to appropriate confidentiality undertakings, each Party shall have
the right, upon written notice to the other Party, to have present at JSC meetings additional, non-voting participants (which participants may be members of Committees). Such additional participants shall not be deemed to be, and shall not have
any of the rights or responsibilities of, members of the JSC. 
 (b) The JSC shall have the following responsibilities:
(i) providing oversight and guidance for the strategic development and commercial direction of the Product in the Territory; (ii) reviewing and approving the Commercial Plan (other than the Initial Commercial Plan), the Base Brand A&P
Budget (other than the Initial Base Brand A&P Budget), and the Call Plan on an annual basis, and reviewing and approving updates and amendments thereto; (iii) overseeing the work of the other Committees, and receiving and reviewing reports
and other information submitted by the other Committees; (iv) serving as a forum for the Parties to agree upon alternative scenarios with respect to the minimum Promotional efforts required by one or both Parties in calendar year 2011 or any
later year as contemplated in Sections 4.1(c)(ii), 4.1(d)(ii), and 4.2(c)(ii); (v) approving Promotional activities or expenditures proposed to be undertaken or paid by a Party, which activities or expenditures are different than or in excess
of those required to be conducted by such Party pursuant to the then-current Commercial Plan or Base Brand A&P Budget; (vi) resolving all disputes referred to it by the other Committees; (vii) approving Volume Forecasts;
(viii) determining the quantity of Safety Stock required as contemplated in Section 1.113; (ix) changing the minimum number [***] required for Samples (which change shall be determined by the unanimous decision of the JSC (and for
clarity, any dispute with respect to such change may not be escalated pursuant to Section 3.7)); and (x) making such other decisions as may be delegated to the JSC pursuant to this Agreement or by written agreement of the Parties from time
to time. 
  
  

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 (c) Notwithstanding the foregoing, (i) the JSC has no authority to make decisions with
respect to matters that relate to the development of, or Regulatory Approval for, the Product without Zogenix’s prior written consent, (ii) the JSC has no authority to require a Party to engage in Promotion activities beyond those
obligations set forth in Article IV, and (iii) the JSC has no authority to amend or waive any term or condition of this Agreement. 
 Section 3.3 Joint Product Team 
 The JPT shall be established
by the Parties and shall be made up of an equal number of representatives of each Party. Initially, the JPT shall have [***] members, [***] of whom shall be appointed by Zogenix in its sole discretion, and [***] of whom shall be appointed by
Astellas in its sole discretion. The JPT shall have the following responsibilities: (i) facilitating collaboration between the Parties on all Product sales and marketing strategies and programs in the Territory, including matters relating to
managed care and trade; (ii) preparing updates to the Commercial Plan and the related Base Brand A&P Budget, including allocating Allocated A&P Expenses, and monitoring, reviewing, discussing and amending such plan and budget as
necessary throughout the year; (iii) preparing and updating the Call Plan and monitoring the Parties’ performance thereunder; (iv) preparing and updating Volume Forecasts and Sample forecasts, consistent with Article VI;
(v) reviewing Incentive Compensation for the Astellas Sales Force and the Zogenix Sales Force (provided that Parties shall only be obligated to share those aspects of Incentive Compensation that are required to be shared to demonstrate
Incentive Compensation weighting obligations under Sections 4.1 and 4.2, respectively); (vi) reviewing and approving (subject to Section 3.7) all matters impacting Net Sales, and matters relating to managed care/health systems, trade and
pricing, including matters relating to the WAC and Deductions; (vii) creating, developing, or otherwise obtaining all Promotional Materials; (viii) approving Promotional activities proposed to be undertaken by a Party, which activities are
in excess of those required to be conducted by such Party pursuant to the then-current Commercial Plan or Base Brand A&P Budget; and (ix) making such other decisions as may be delegated to the JPT pursuant to this Agreement or by written
agreement of the Parties from time to time. 
  
  

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 Section 3.4 Joint Medical Team 

The JMT shall be established by the Parties and shall be made up of an equal number of representatives of each Party. Initially, the JMT
shall have [***] members, [***] of whom shall be appointed by Zogenix in its sole discretion, and [***] of whom shall be appointed by Astellas in its sole discretion; provided that no representative from either Party may have a functional
area of responsibility that is sales or marketing. The JMT shall have the following responsibilities: (i) pre-approving and allocating the projected and actual costs and expenses of Third Party contractors and vendors (including contract
research organizations) engaged in connection with the performance of Phase IV Clinical Studies that the Parties agree in writing to conduct jointly and facilitating activities related to the development, execution and funding of such Phase IV
Clinical Studies and other clinical related efforts for the Product in the Territory, and (ii) reviewing and approving in advance any expenses payable or that may become payable to Third Party contractors and vendors engaged in connection with
the performance of Zogenix’s medical affairs obligations under Section 4.9 that are proposed to be treated as Co-Funded Medical Affairs Expenses. 
 Section 3.5 Joint Promotional Review Committee 
 The JPRC shall
be established by the Parties and shall be made up of an equal number of representatives of each Party. Initially, the JPRC shall have [***] members, [***] of whom shall be appointed by Zogenix in its sole discretion, and [***] of whom shall be
appointed by Astellas in its sole discretion; provided that among each Party’s appointees shall be [***] whose functional area of responsibility is legal affairs, [***] whose functional area of responsibility is regulatory affairs, [***]
whose functional area of responsibility is medical affairs, and [***] whose functional area of responsibility is marketing. The JPRC shall be responsible for (i) reviewing and approving all Promotional Materials, and (ii) reviewing and
approving all standard written materials (including scripts) to by provided or used by or on behalf of Zogenix in responding to PIRs (as set forth in Section 4.9) pursuant to a process to be mutually agreed between the Parties (however, the
representatives performing the review and approval under this clause (ii) shall be limited to the representatives whose functional areas of responsibility are legal affairs, regulatory affairs, and medical affairs). For the avoidance of doubt,
Zogenix shall have primary responsibility for managing the overall JPRC process, and as the holder of the NDA shall have responsibility for all DDMAC submissions and managing the DDMAC relationship. 

Section 3.6 Other Terms Applicable to Committees 

(a) Subject to Section 3.7, decisions of each Committee shall be made by agreement between the representatives of Astellas, on the
one hand, and the representatives of Zogenix, on the other hand. For the avoidance of doubt, each Party shall have an equal voice in decision-making, regardless of the number of representatives of that Party present or voting. No decision of a
Committee shall be valid unless each Party is represented by at least [***] member at the meeting at which the decision is made. The Parties shall cause their respective representatives on each Committee to use their good faith efforts to
resolve all matters appropriately presented to them in an expeditious manner. 
  

 

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 (b) Each Party has, prior to the Effective Date, provided to the other Party its initial
appointments to each Committee. A Party may change any of its representatives at any time by giving written notice to the other Party. The total number of members on a Committee may be changed by agreement of the Parties from time to time,
provided that each Party has the right, in its sole discretion, to appoint an equal number of members to the Committee. The members appointed to the Committee by each Party shall be employees of such Party and shall have the requisite
experience and seniority to make decisions on behalf of such Party with respect to issues falling within the jurisdiction of the Committee; provided that either Party may appoint non-employee legal representatives or consultants to serve as
members of the JPT, JMT, or JPRC with the prior written consent of the other Party, such consent not to be unreasonably withheld. 
 (c) The chair of each Committee will be an employee of Zogenix or, with Zogenix’s consent, an employee of Astellas. The chair of a Committee shall have the authority and responsibility to call
meetings of the Committee, to propose agendas for (and any other member of the Committee may add items to such agendas) and preside over such meetings, and to appoint a secretary to record minutes for such meetings. The chair shall have no
tie-breaking vote, or any other authority or power beyond those of the other members of the Committee, except to the extent granted by agreement of the Parties. 
 (d) Meetings of any Committee may be called by the chair of the Committee from time to time and, upon no less than ten (10) days’ notice, shall otherwise be called when requested by a Party;
provided, however, that (i) the JSC shall meet at least one time in calendar year 2009, and at least three (3) times each calendar year thereafter, and otherwise as required to resolve disputes; (ii) the JPT shall meet at least
monthly during the Launch Period and at least every other month thereafter; (iii) meetings of the JMT shall be held as mutually determined by the Parties; and (iv) meetings of the JPRC shall be held weekly. Meetings may be held in
person or by video or telephone conference. Unless otherwise agreed, the location of in-person meetings shall alternate between the corporate offices of the Parties. The format of the meetings and all other procedural matters shall be
decided by the Committee. Minutes of a Committee meeting shall be circulated to the Parties by the secretary promptly following the meeting for review and comment and for ratification by both Parties at the next meeting of the Committee, which
ratification must be unanimous. Each Party shall bear its own travel and related costs incurred in connection with participation in the Committees. 
 (e) Communications among members of a Committee in connection with the conduct of the day-to-day business of the Committee shall not be subject to the notice provisions set forth in Section 13.1, but
shall be governed by the communications protocol agreed upon unanimously by the members of the Committee; provided, however, that any notice relating to disputes with respect to matters arising under the jurisdiction of the Committee (or
otherwise) shall be provided pursuant to Section 13.1. 
  

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 Section 3.7 Disputes 

The Parties shall cause their respective representatives on a Committee to use their reasonable efforts to resolve all matters presented
to them as expeditiously as possible. In the event that the JPT, the JMT, or the JPRC is unable to make a decision due to a lack of required unanimity [***], either Party may submit the dispute to the JSC, specifying the nature of the dispute with
sufficient detail to permit adequate consideration. In the event that the JSC is unable to resolve such dispute due to a lack of required unanimity within [***] following consideration of the dispute by the JSC, then either Party may submit the
matter to the Commercial Officers (or, in the case of a dispute arising under the JMT, to the Development Officers) for a joint decision. The Commercial Officers (or Development Officers) shall diligently and in good faith attempt to resolve
the referred dispute expeditiously and, in any event, within [***] days of receiving such written notification, or within such other time as mutually agreed upon in writing between such officers (and if the officers resolve the dispute, such
resolution shall be deemed to be a decision of the JSC). In the event that the Commercial Officers (or Development Officers) are unable to reach a resolution of the dispute within such time period, then: 

(a) if the dispute concerns the adoption of a Commercial Plan (or any update or amendment thereto), then the dispute shall be resolved
pursuant to Section 4.7(a); 
 (b) if the dispute concerns a matter under the jurisdiction of the JPRC (except for matters
relating to the incurring of expenses by one or both Parties or the use of any Astellas Trademark), then Zogenix shall have final decision-making authority after considering in good faith Astellas’s comments and positions with respect to the
issue(s); 
 (c) if the dispute concerns the adoption of a Volume Forecast, then the dispute shall be subject to
Section 6.2(f) and subject to arbitration pursuant to Section 15.1; and 
 (d) all other unresolved disputes shall be
resolved by arbitration pursuant to Section 15.1. 
 For clarity, any dispute with respect to whether a Party has breached its obligations
under this Agreement is not subject to the escalation procedures set forth in this Section 3.7, but either Party may refer such a dispute for resolution by arbitration pursuant to Section 15.1 (and such arbitration shall be the exclusive
means of resolving such dispute). 
 Section 3.8 Alliance Manager. 

Each Party shall appoint one employee who possesses a general understanding of compliance, regulatory, manufacturing, and commercial
issues to act as a primary point of contact between the Parties and to help create and maintain a collaborative work environment within and among the Committees (each such employee, an “Alliance Manager”). Each Alliance Manager may
attend meetings of any Committee as a non-voting participant (unless the Alliance Manager has been appointed as a member of the Committee) and may support the representatives of the Party that appointed the Alliance Manager in the discharge of their
responsibilities. Each Party may change its designated Alliance Manager from time to time upon written notice to the other Party. 
  

 

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 ARTICLE IV

 PRODUCT PROMOTION 
 Section 4.1 Product Detailing by Astellas 
 (a) Subject to
applicable Legal Requirements as well as the provisions of this Agreement, Astellas shall, from and after the Promotion Commencement Date during the Term, use commercially reasonable efforts to Detail the Product in the Astellas Segment within the
Territory in accordance with the Commercial Plan (the “Astellas Promotional Effort”), provided, however, that (i) Astellas’s commercially reasonable efforts shall be deemed to be satisfied if Astellas [***] (such
obligations, the “Astellas Minimum Sales Effort”), and (ii) in the event that, [***] Minimum Sales Effort [***]. Astellas shall also have the right, but not the obligation, to Detail the Product [***]. Astellas shall cause the
Astellas Sales Force and Astellas employees and agents acting on Astellas’s behalf to comply with this Agreement and all applicable Legal Requirements in connection with the Detailing of the Product. It is understood, and Astellas agrees,
that it will be accountable for the acts and omissions of the Astellas Sales Force and its employees and agents to the extent such acts or omissions fail to comply with Astellas’s obligations under this Agreement. 

(b) From the Promotion Commencement Date until [***] (the “Launch Period”), Astellas shall Detail the Product in the
Astellas Segment pursuant to either of the following scenarios, as Astellas may elect in its sole discretion: 
 (i) [***]

 (ii) [***] 

provided that Astellas shall not be in breach of this requirement as a result of the Astellas Sales Force having Vacancies up to but not exceeding
[***] of the total number of required Sales Representatives during such period. 
 (c) During [***], Astellas shall Detail the
Product in the Astellas Segment pursuant to one of the following scenarios: 
 (i) [***]; or 

(ii) Dedicating such other Astellas Promotional Effort as mutually agreed by the Parties through the JSC. 

(d) During [***], Astellas shall Detail the Product in the Astellas Segment pursuant to one of the following scenarios: 

(i) [***]; or 
  

 

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 (ii) Dedicating such
other Astellas Promotional Effort as mutually agreed by the Parties through the JSC. 
 For clarity, the obligation in Section 4.1(d)(i) is
not limited by the reference [***]. 
 (e) Notwithstanding anything contained in this Section 4.1, Astellas shall have the
right to suspend its performance of its obligations pursuant to this Section 4.1 immediately upon written notice to Zogenix: (i) in the event that Zogenix fails or is unable to Timely Supply [***], provided that the [***] required
to be supplied by Zogenix pursuant to [***] shall be deemed to not include [***] that is [***]; (ii) in the event that Zogenix fails or is unable to Timely Supply Product to satisfy Trade Demand; provided that Zogenix shall not be
required to supply an aggregate quantity of the Product in excess of [***] of the quantity of the Product forecasted for any Agreement Month in the Volume Forecast most recently approved by the JSC prior to such Agreement Month, (iii) in the
event that Zogenix fails or is unable to maintain the continued effectiveness of the Regulatory Approval (the continued effectiveness of which shall be deemed not to have been maintained if the FDA or any other Governmental Authority suspends the
manufacturing, use, marketing, sale, or Promotion of the Product), (iv) in the event of a large-scale recall, large-scale market withdrawal, or similar corrective action with respect to the Product, or (v) in the event that Zogenix or any
of its Affiliates or, to Zogenix’s knowledge, any Person under its or their direction or control, is debarred by the FDA under the Generic Drug Act. Once released from such obligations, Astellas’s obligations under this Section 4.1
shall be reinstated only if and [***] on which (x) Zogenix is in compliance with the requirements of clauses (i) through (v), and (y) Zogenix has reasonably satisfied Astellas that Zogenix can continue to satisfy such requirements on
a going-forward basis (such date, the “Promotional Effort Reinstatement Date”), at which point Astellas shall use reasonable efforts, taking account of the time reasonably required to rededicate the required level of Astellas
Promotional Effort, to resume compliance with the applicable requirements of this Section 4.1, and in any event shall resume compliance with the applicable requirements of this Section 4.1 no later than the [***] of the first full
Incentive Compensation period following the Promotional Effort Reinstatement Date. For the purposes of this Section 4.1, an “Incentive Compensation period” means a period under the Astellas Incentive Compensation plan with respect to
which Incentive Compensation is measured and awarded, which period is typically a period of [***]. For the avoidance of doubt, the release of Astellas from its obligations pursuant to this paragraph shall be in addition to all other rights and
remedies available to Astellas hereunder, at law or in equity or otherwise, with respect to the event(s) triggering such release. 
 Section 4.2 Product Detailing by Zogenix 
 (a) Subject to
applicable Legal Requirements as well as the provisions of this Agreement, Zogenix shall, from and after the Promotion Commencement Date use commercially reasonable efforts to Detail the Product in the Zogenix Segment within the Territory in
accordance with the Commercial Plan (the “Zogenix Promotional Effort”); provided, however, that (i) Zogenix’s commercially reasonable efforts shall be deemed to be satisfied if [***] (such obligations, the
“Zogenix Minimum Sales Effort”) and (ii) in the event that, [***] Minimum Sales Effort [***]. Zogenix shall also have the right, but not the obligation, to Detail the Product (x) in the Astellas Segment, (1) to
Professionals that Astellas does not intend to call upon during the applicable period, and (2) until the end of the second Agreement Quarter in the 2010 Agreement Year, to [***]. Zogenix shall cause the Zogenix Sales Force and Zogenix employees
and agents acting on Zogenix’s behalf to comply with this Agreement and all applicable Legal Requirements in connection with the Promotion of the Product. It is understood, and Zogenix agrees, that it will be accountable for the acts and
omissions of the Zogenix Sales Force and its employees and agents to the extent such acts or omissions fail to comply with Zogenix’s obligations under this Agreement. 

 
  

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 (b) [***], Zogenix shall Detail the Product in the Zogenix Segment and to Jointly Called On
Physicians using [***] each with no less than [***]; provided that Zogenix shall not be in breach of this requirement as a result of the Zogenix Sales Force having Vacancies up to but not exceeding [***] of the total number of required Sales
Representatives during such period. 
 (c) [***] Zogenix shall Detail the Product pursuant to one of the following scenarios:

 (i) Providing not less than [***] in each such [***] (with any portion of a calendar year pro-rated); or 

(ii) Dedicating such other Zogenix Promotional Effort as mutually agreed by the Parties through the JSC. 

Section 4.3 Mutual Promotion 
 (a) Each of Astellas and Zogenix shall commence Detailing the Product in accordance with this Agreement no later than the later of (i) January 25, 2010, and (ii) [***] following achievement
by Zogenix of the milestone set forth in Section 7.1(b)(iv). The Parties agree to cooperate with each other in good faith in furtherance of the first sentence in this Section 4.3(a). 

(b) Neither Party shall be prohibited from undertaking Promotional activities in addition to those contemplated to be undertaken by such
Party pursuant to the then-current Commercial Plan (or that would require such Party to bear expenses in excess of the amounts required to be borne by such Party pursuant to the then-current Base Brand A&P Budget), provided that such
excess activities are consistent with the then-current Commercial Plan and approved in advance by the JSC. Notwithstanding the foregoing, in no event shall a Party become obligated to participate in activities in addition to those contemplated in
the then-current Commercial Plan or incur amounts in excess of those required to be borne by such Party pursuant to the then-current Base Brand A&P Budget unless so required pursuant to a duly updated Commercial Plan or Base Brand A&P
Budget. 
  
  

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 Section 4.4
Representations to Customers 
 Each Party shall, in connection with its Promotion of the Product, refrain from
making (a) any false or misleading representations to Professionals, customers or others regarding the other Party or the Product or (b) representations, warranties, or guarantees with respect to the specifications, features, or
capabilities of the Product that are not consistent with the Promotional Materials, the applicable then-current FDA approved labeling and package insert (except to the extent permitted by applicable Legal Requirements), and applicable Legal
Requirements. Each Party shall undertake timely corrective action with respect to any deviations from this Section 4.4, subject to discussion and review by the other Party’s designated regulatory affairs and quality assurance personnel.

 Section 4.5 Staffing and Training 

(a) Each Party shall be solely responsible for all costs and expenses incurred to train and compensate its Sales
Representatives. Consistent with applicable Legal Requirements and subject to Sections 4.1(b), 4.1(c), 4.1(d), and 4.2(b), as applicable, (i) Astellas shall pay Incentive Compensation to its Sales Representatives with respect to the
Product in accordance with Astellas’s Incentive Compensation plan applicable to Astellas’s own products, subject to any deviations implemented by Astellas to comply with Astellas’s Minimum Sales Efforts, and (ii) Zogenix shall
pay Incentive Compensation to its Sales Representatives with respect to the Product in accordance with Zogenix’s Incentive Compensation plan applicable to products of Zogenix other than the Product, subject to any deviations implemented by
Zogenix to comply with Zogenix Minimum Sales Efforts. 
 (b) From time to time, each Party shall, in consultation with the
other Party (a) establish training objectives and training plans for members of such Party’s Sales Force and (b) develop and produce all training programs and materials to be used by such Party for initial and refresher training of
the members of its Sales Force; it being understood and agreed by the Parties that in the event of any dispute between the Parties with respect to such objectives or plans or the content of any such programs or materials, each Party shall have
discretion to make final determinations with respect to such objectives, plans, or content, subject to Section 4.6. 
 (c)
Such training materials and programs with respect to the Sales Forces shall address the following matters: disease state, Product knowledge, competitive product knowledge, such Party’s applicable business policies, Sample distribution policies,
obligations under this Agreement, coordination with counterparts on the other Party’s Sales Force, administration, and other appropriate information. 
 (d) Without limitation to Section 5.3(c), each Party shall provide training to each member of its Sales Force prior to his or her commencement of Promotion of the Product hereunder to ensure that he
or she is properly trained with respect to all matters described in Section 4.5(c) and able to satisfy his or her Promotion responsibilities under this Agreement (the “Initial Sales Force Training Program”). In addition to the Initial
Sales Force Training Program, each Party shall provide to the members of its Sales Forces such reinforcement and refresher training with respect to the Product in accordance with the applicable Commercial Plan then in effect. If the Product receives
approval for an indication other than that set forth in the NDA as approved as of the Effective Date or there are other material changes in the Product labels and inserts following the Promotion Commencement Date, each Party shall provide training
materials to each member of its Sales Force with respect to such matters. 

  
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 (e) Each Party shall assign to its Sales Forces only those individuals who demonstrate a
thorough knowledge of the Product. 
 (f) [***], neither Party shall actively recruit or solicit for employment any
then-current member of the Sales Force of the other Party or any other staff member of the other Party who is engaged or had been engaged in the Promotion or Detailing of the Product. For the avoidance of doubt, nothing in this Agreement shall limit
a Party from engaging in general recruitment through advertisements or recruiting through “head-hunters” so long as the staff members of the other Party are not specifically targeted in such recruitment effort. 

Section 4.6 Promotional Materials; Educational Materials 

(a) The Parties shall collaborate, by and through their respective representatives on the JPT, to create, develop, produce, or otherwise
obtain promotional, advertising, marketing, educational, and training materials which are necessary or reasonably useful to support fully the Parties’ Promotional efforts with respect to the Product (“Promotional Materials”). All
such materials, whether printed or electronic (including content on the Product Website), shall be deemed Promotional Materials. Promotional Materials may include, by way of example: detailing aids, leave behind educational items, journal
advertising, educational programs, formulary binders, appropriate reprints and reprint carriers, product monographs, patient support kits, convention exhibit materials, direct mail, training materials, and scripts for telemarketing and
teleconferences. All Promotional Materials shall be reviewed and approved by the JPRC. All Promotional Materials (i) shall prominently display such Zogenix Trademark(s) as shall be specified by Zogenix in accordance with Section 4.10,
and (ii) shall, at Astellas’s request and agreement by Zogenix (not to be unreasonably withheld), prominently display the Astellas Trademarks (but no more prominently than the Zogenix Trademark described in Section 1.152(c)) pursuant
to and in accordance with a Trademark Consent. 
 (b) Prior to the use thereof, the JPT shall provide to the JPRC
(i) fully referenced copies of Promotional Materials and, (ii) if necessary for review, a prototype of any Promotional Materials, in each case ((i) and (ii)), for review and approval. Upon approval by the JPRC, the Promotional Materials
may be produced in quantity (or, in the case of content for the Product Website, may be displayed on the Product Website). In furtherance of the foregoing provisions of this Section 4.6(b), the Parties will endeavor to cooperate to facilitate
the timely and efficient review of Promotional Materials and, subject to Section 3.7, resolution of any disputes or disagreements related to Promotional Materials, with a view to containing both Parties’ internal personnel resources and
external costs associated with the creation, review, and approval of the Promotional Materials. 
  

 

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 (c) The Parties shall at all times during the Term collaborate and use commercially
reasonably efforts to ensure sufficient quantities of Promotional Materials as set forth in the then-current Commercial Plan for use in Promoting the Product and performing their respective obligations hereunder. Each Party shall be permitted to use
in connection with the Promotion of the Product only (i) the Promotional Materials approved under this Agreement (including pursuant to the dispute resolution procedures set forth in Section 3.7) and (ii) the Product labels and
inserts. Each Party shall use such Promotional Materials only in the form so approved and consistent with the training provided pursuant to Section 4.5 and neither Party shall change such Promotional Materials in any way following such approval
and training (including by underlining or otherwise highlighting any text or graphics or adding any notes thereto). 
 (d) All
Promotional Materials shall comply with all applicable Legal Requirements. Notwithstanding anything in this Agreement to the contrary, neither Party shall be required to take any action if such Party reasonably determines that such action would
violate applicable Legal Requirements, including any such action involving the use or dissemination of any Promotional Materials or training materials. 
 (e) Subject to this Section 4.6(e), Zogenix shall own all copyrights to all Promotional Materials that are created during the Term of this Agreement (other than those items which are subject to Third
Party copyrights) in connection with and to the extent relating to the Promotion of the Product. In the event that any such Promotional Materials are commissioned by Astellas, Astellas shall use commercially reasonable efforts consistent with
accepted business practices to obtain assignments of copyrights in and to such Promotional Materials from the authors and creators of such materials as may be necessary to vest ownership of such copyrights in Zogenix. Zogenix shall, and does
hereby, grant to Astellas a royalty-free, non-exclusive right and license to use, reproduce and distribute Promotional Materials or any other Product-related materials made available to Astellas by Zogenix hereunder, in each case solely in
conjunction with the Promotion of the Product and the performance of Astellas’s obligations under this Agreement, which license shall not be sublicensable, assignable, or transferable by Astellas, except in accordance with the terms of
Section 2.2. 
 Section 4.7 Commercial Plan (Including Base Brand A&P Budget) 

(a) The Initial Commercial Plan, covering the period commencing on [***] (the “Initial Period,” and each subsequent twelve
(12) month period, a “Subsequent Plan Period”) has been prepared and exchanged by the Parties as of the Effective Date and is made binding hereunder. On or prior to [***] of the preceding Agreement Year with respect to each Agreement
Year during the Term beginning with the [***], the JPT shall develop an annual update to the then-current Commercial Plan (including a Base Brand A&P Budget), and subject to Section 4.7(d), the then-current Call Plan, in each case covering
the upcoming Subsequent Plan Period. Each proposed annual and other update or amendment to the Commercial Plan (including the Base Brand A&P Budget) and the Call Plan shall be prepared by the JPT and submitted to the JSC for review. The JSC
shall use all reasonable efforts to review, provide comments to and approve each annual update to the Commercial Plan and the Call Plan not later than [***] of each preceding Agreement Year, and as expeditiously as possible in the case of other
updates and amendments. In the event the JSC is unable, and, failing agreement by the JSC, the Commercial Heads are unable, to agree on any such update or amendment, other than an annual update to the then-current Commercial Plan (including the
associated Base Brand A&P Budget), such update or amendment shall not be adopted. In the event the JSC is unable to agree, and failing agreement of the JSC, the Commercial Heads are unable to agree, on any annual update to the then-current
Commercial Plan (including the associated Base Brand A&P Budget), the last-approved Commercial Plan or Base Brand A&P Budget, as the case may be, shall remain in effect, and the Parties shall conduct activities and be responsible for
expenses in the subsequent Agreement Year in a manner and at a level consistent with the activities and expenses to which such Party was committed under the then-current Commercial Plan; provided, however, that notwithstanding the foregoing, in the
event that the Parties fail to agree on a final Base Brand A&P Budget for the [***] in accordance with Section 3.7, the Parties shall be required to continue negotiating in good faith, by and through their representatives on the JPT and
JSC, to approve a final Base Brand A&P Budget for the [***] that is consistent in all respects with the [***], until such budget is approved, and, for clarity, in no event shall the Initial Base Brand A&P Budget establish the Parties’
respective obligations with respect to expenses for the [***]. 
  

 

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 (b) The Commercial Plan shall set forth the activities that the Parties shall conduct in
connection with Promotion of the Product (and preparations therefor) during the period to which the Commercial Plan relates. The Commercial Plan shall include, at a minimum: 
 (i) [***]; 
 (ii) [***]; 

(iii) [***]; 

(iv) [***]; 

(v) [***]; 

(vi) [***]; 

(vii) [***]; and 
 (viii) [***]. 
 (c) Notwithstanding anything to the contrary contained in this
Agreement, (i) neither Party may modify its obligations under any Commercial Plan without complying with the update or amendment procedures set forth in this Agreement, and (ii) in the event that, with respect to a particular period, the
Commercial Plan contemplates Astellas Promotional Efforts or Zogenix Promotional Efforts that in any manner or to any extent [***] Minimum Sales Effort [***] Minimum Sales Effort [***]. 

 
  

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 (d) On or prior to December 15, 2009, the JPT shall develop and the JSC shall adopt
the initial Call Plan. Thereafter, with respect to each Agreement Year during the Term beginning with the [***] the JPT shall develop and the JSC shall adopt an annual update to the Call Plan in accordance with Section 4.7(a). For clarity, in
other respects, each Party has the right independently to develop its call plan with respect to the Professionals in its segment, in each case consistent with the Call Plan. 
 Section 4.8 Promotion Reports 
 (a) Within [***] following the
end of each [***] Astellas shall provide the JSC with a status report, which report will summarize Astellas’s Detailing activities pursuant to this Agreement for such prior [***] and [***], including: [***]; and (vi) such other
information as may be agreed upon in writing by the Parties. 
 (b) Within [***] following the end of each [***], Zogenix shall
provide the JSC with a status report, which report will summarize Zogenix’s Detailing activities pursuant to this Agreement for such prior [***] and [***] including: (i) [***] (vi) such other information as may be agreed upon in
writing by the Parties. 
 Section 4.9 Medical Inquiries 

(a) Zogenix shall be solely responsible for all medical affairs activities relating to the Product, including medical information
support and medical communications and publishing activities, which activities shall be performed by or on behalf of Zogenix at its sole expense, except to the extent that the expenses constitute Co-Funded Medical Affairs Expenses governed by
Section 7.3. The Parties acknowledge that each Party may receive requests for medical information concerning the Product from members of the medical and paramedical professions and consumers. Zogenix shall have the exclusive right to respond to
questions and requests for information about the Product received from such Persons that (a) warrant a response beyond the understanding of the Sales Representative or (b) are beyond the scope of the Product labels and inserts (each such
request, a “PIR”). If PIRs are received by Astellas, the request will be referred to Zogenix’s medical information department or appointed Third Party vendor to which Zogenix has instructed Astellas in writing to refer PIRs. Zogenix
shall also be responsible for responding to PIRs that are not received by Astellas. Zogenix shall notify Astellas of all PIRs no less than once prior to December 31, 2009, and thereafter on a regular basis and in any event no less often than
once per Agreement Quarter. Zogenix’s responses to PIRs and its performance of its obligations under this Section 4.9 shall be in compliance with all applicable Legal Requirements and the NDA. In addition, standard written materials
(including scripts) to be provided or used by Zogenix in responding to PIRs and performing its obligations under this Section 4.9 shall be reviewed in advance and approved by the JPRC, and all written materials (including scripts) addressing
the use of the Product outside of the approved labeling shall be consistent with such standard written materials. 
  

 

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 (b) If either Party intends to use scientific liaisons in connection with its Promotion of
the Product or its activities under this Agreement, such Party shall discuss its use thereof with the other Party, shall provide the other Party with a copy of its policies and procedures with respect to scientific liaisons, and shall ensure that
the scientific liaisons are personnel who are not involved in the Party’s sales organization. 
 Section 4.10
Trademarks 
 (a) The “Zogenix” Trademark must appear on all Promotional Materials that make reference
to the Product, to the extent such Promotional Materials would typically contain a company trademark. The “DosePro” Trademarks must appear on all Promotional Materials that make reference to the “DosePro” delivery device
incorporated into the Product and the “Sumavel” and “DosePro” Trademarks (or such other FDA-approved Trademarks) must appear on all Promotional Materials that make reference to the Product (or such Trademark). In no event shall
Zogenix use or permit or cause to be used in connection with the Product or the Promotion thereof any Trademark other than a Zogenix Trademark, and in the case of any Astellas Trademark, is the subject of a Trademark Consent. Zogenix hereby grants
to Astellas a non-exclusive, royalty-free right and license to use the Zogenix Trademarks in the Territory solely in connection with the Promotion of the Product and Astellas’s performance of its obligations under the Agreement, which license
shall not be sublicensable, assignable, or transferable except to any Third Party providing Sales Representatives for or acting as the Astellas Sales Force or in accordance with the terms of Section 2.2. Such license shall expire immediately
upon the expiration or termination of this Agreement. Astellas recognizes Zogenix’s title to the Zogenix Trademarks, and shall not at any time, during or after the Term, intentionally do or knowingly suffer to be done any act or thing
which would impair the rights of Zogenix in or to the Zogenix Trademarks. Astellas acknowledges and agrees that it shall not acquire and shall not claim any title to the Zogenix Trademarks adverse to Zogenix by virtue of the rights granted under
this Agreement or through Astellas’s use of the Zogenix Trademarks hereunder, it being the intention of the Parties that all goodwill and improved reputation generated by Astellas and use of the Zogenix Trademarks shall inure to the benefit of
Zogenix. 
 (b) Astellas hereby grants to Zogenix a non-assignable, non-sublicensable (except to any Third Party providing
Sales Representatives for or acting as the Zogenix Sales Force), non-exclusive, royalty-free right and license to use those Astellas Trademarks in the Territory that are approved in advance in writing by an authorized officer of Astellas, solely for
any specific use related to the Promotion of the Product in the Territory that is approved in such writing (any such approval, a “Trademark Consent”). Such license shall expire immediately upon the expiration or termination of
this Agreement. Zogenix recognizes Astellas’s title to the Astellas Trademarks, and shall not at any time, during or after the Term, intentionally do or knowingly suffer to be done any act or thing which would impair the rights of Astellas
in or to the Astellas Trademarks. Zogenix shall not have any right or license to use (and shall not use) any Astellas Trademarks in connection with the Promotion of the Product or otherwise unless and until a Trademark Consent is obtained for
the specific use, and may not use the Astellas Trademarks in connection with Promotional Materials to which Astellas’s representatives on the JPRC object and that Astellas elects not to use pursuant to Section 5.3(d). Zogenix
acknowledges and agrees that it shall not acquire and shall not claim any title to the Astellas Trademarks adverse to Astellas by virtue of the rights granted under this Agreement or through Zogenix’s use of the Astellas Trademarks hereunder,
it being the intention of the Parties that all goodwill and improved reputation generated by Zogenix and use of the Astellas Trademarks shall inure to the benefit of Astellas. 

 

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 (c) Each of Astellas with respect to its use of the Zogenix Trademarks and Zogenix with
respect to its use of the Astellas Trademarks will maintain quality standards for all of its uses of the Trademarks of the other Party in connection with the Promotion of the Product that are substantially equivalent to those standards that are
(i) used by the owner of such Trademarks in connection with pharmaceutical products, and (ii) communicated by the owner to the other Party in writing, and (iii) if first communicated to the other Party after the Effective Date,
reasonable. Subject to the foregoing and to the other provisions of this Agreement, each Party acknowledges and agrees that the owner or licensee of the Trademark has the right, at any time, to modify or supplement such quality standards and
that the licensee (or sublicensee, if applicable) must implement such new standards or changes following receipt of written notice of such additions or changes; provided that the licensor agrees to bear all reasonable costs associated with
such modifications and supplements and that such modifications and supplements are reasonable. Compliance with this Section 4.10(c) shall be determined pursuant to the Promotional Material review and approval procedures set forth in
Sections 4.6(b). 
 Section 4.11 Product Website 

Unless otherwise agreed in writing by the Parties, Zogenix shall maintain a Product website designed with respect to the Promotion of the
Product in the US (the “Product Website”) and shall implement any changes to the Product Website in accordance with the procedure set forth in Section 4.6 with respect to Promotional Materials. Expenses associated with
maintaining and updating the Product Website, to the extent set forth in the then-current Base A&P Brand Budget, shall constitute [***]. Zogenix shall ensure that the Product Website complies with all applicable Legal Requirements. 

ARTICLE V 

CLINICAL, COMPLIANCE, AND REGULATORY AFFAIRS 
 Section 5.1 Regulatory Approvals 
 Zogenix shall use diligent
efforts to obtain, and thereafter to maintain and continue, all Regulatory Approvals for the Product. Astellas agrees that all Regulatory Approvals, applications therefor and any other submissions to a Governmental Authority with respect to the
Product shall be in the name of, and shall be owned by, Zogenix or its designee. During the Term, Zogenix shall provide Astellas with access, free of charge, to all clinical and non-clinical data related to the Product generated by or on behalf of
and owned or otherwise Controlled by Zogenix, whether before or after the Effective Date. 
  

 

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 Section 5.2 Compliance with Regulatory Requirements 

Unless otherwise required by applicable Legal Requirements or expressly provided by this Agreement, Zogenix will retain exclusive
authority over and responsibility for complying with all regulatory requirements and maintaining all contacts with Governmental Authorities with respect to the Product, including the maintenance and updating of the NDA, the development and
submission of applications for new formulations, dosage strengths or indications of the Product (and, for the avoidance of doubt, products with such new formulations and dosage strengths shall become subject to Astellas’s right to elect to have
those products be deemed Products under this Agreement pursuant to Section 2.6), the reporting of any Adverse Drug Experiences to the FDA, the compliance of Promotional Materials with FDA rules and regulations, and the filing of Promotional
Materials with the FDA. 
 Section 5.3 Compliance 

(a) During the Term, Astellas, its Affiliates, and its and their employees, agents, representatives, and contractors having any
interactions with Health Care Providers with respect to the Product shall comply with applicable Legal Requirements, [***]. 

(b) During the Term, Zogenix, its Affiliates, and its and their employees, agents, representatives, and contractors having any
interactions with Health Care Providers with respect to the Product shall comply with applicable Legal Requirements, [***]. Zogenix has, prior to the Effective Date, provided to Astellas the Zogenix Compliance Materials in draft form, and shall
provide to Astellas the Zogenix Compliance Materials in final form, no later than October 1, 2009, and shall from time to time thereafter promptly provide updates to such Zogenix Compliance Materials. 

(c) In performing its duties hereunder, each Party shall, and shall cause the Astellas Sales Force or Zogenix Sales Force, as
applicable, its Affiliates, and its and their employees, agents, representatives, and contractors to comply with applicable Legal Requirements. Each Party shall ensure that none of it, its Sales Force, its Affiliates, and its and their employees,
agents, representatives, and contractors shall offer, pay, solicit or receive any remuneration to or from any Professional in order to induce referrals of or purchase of the Product in violation of applicable Legal Requirements, including
anti-kickback Legal Requirements. Astellas shall train the Astellas Sales Force and Zogenix shall train the Zogenix Sales Force, each in compliance with applicable Legal Requirements, prior to engaging in Promotion of the Product. 

(d) Notwithstanding any other term or condition of this Agreement, neither Party shall be required to participate in, fund, or support
any sales or marketing activities that in such Party’s judgment would conflict with or be inconsistent with such Party’s Compliance Materials or that are to be undertaken over the objections of such Party or the Party’s Committee
representatives pursuant to the dispute resolution procedures set forth in Section 3.7. For the avoidance of doubt, notwithstanding anything herein to the contrary, Astellas shall not be obligated to use Promotional Materials that in
Astellas’s judgment conflict with or are inconsistent with the Astellas Compliance Materials or to which Astellas’s representatives on the JPRC objected in writing, and shall not be obligated to pay expenses with respect to such
Promotional Materials that are incurred after the date on which Astellas or one of its representatives on the JPRC objects to such Promotional Materials in writing. Each Party shall ensure that its Compliance Materials comply with all applicable
Legal Requirements. 
  
  

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 Section 5.4 Communications with Regulatory Authorities 

(a) Except to the extent set forth in Section 5.4(b), all communications with Government Authorities concerning the Product shall
be the sole responsibility of Zogenix. Zogenix shall within [***] provide Astellas with copies of all such communications (including summaries of all relevant verbal communications) related to Promotional Materials and Serious Adverse Drug
Experiences (except that routine communications as to such matters (e.g., FDA 2253 correspondence) may be forwarded to Astellas within [***]) and shall reasonably respond to all inquiries by Astellas relating thereto. Zogenix will reasonably consult
with Astellas concerning Adverse Drug Experience reporting to the FDA and communications related to Promotional matters with the FDA or other Governmental Authorities that could reasonably be considered to be material to the Product, including
regulatory responses to follow up inquiries regarding Adverse Drug Experiences. Zogenix will provide to Astellas a copy of all draft responses related to such matters [***] and will endeavor to provide such responses at least [***] in advance of
their submission (to the extent allowable under Legal Requirements), and will consider in good faith any comments provided to Zogenix by Astellas. 
 (b) Astellas shall not, without the consent of Zogenix, correspond or communicate with the FDA or with any other Governmental Authority, whether within the Territory or otherwise, concerning the Product,
or otherwise take any action concerning any Regulatory Approval under which the Product is sold or any application for Regulatory Approval of the Product; provided that during the Term, Astellas shall have the right to do so: (i) if Astellas
believes in good faith that it is necessary to do so to comply with the terms of this Agreement or any Legal Requirement (including without limitation state or local Legal Requirements related to marketing activities undertaken by Astellas or the
Astellas Sales Force), or (ii) at the request of a Governmental Authority (provided that, where practicable, Astellas shall have requested that such Governmental Authority communicate with Zogenix instead), and in each such case, ((i) or (ii)),
to the extent permitted by Legal Requirements and not prohibited by the Governmental Authority, Astellas shall give Zogenix notice as soon as reasonably practicable of such communication and, to the extent practicable, shall permit Zogenix to
accompany Astellas, take part in any such communications and receive copies of all such communications. Astellas shall within [***] after receipt of any communication from the FDA or from any other Governmental Authority relating to the
Product, to the extent so permitted by Legal Requirements and not so prohibited by the FDA or the applicable Governmental Authority, forward a copy of the same to Zogenix and reasonably respond to all inquiries by Zogenix relating thereto. If
Astellas is required by Legal Requirements to communicate with the FDA or with any other Governmental Authority relating to the Product or is requested to do so by the FDA or the Governmental Authority, then Astellas shall so advise Zogenix, to the
extent practicable and permitted by Legal Requirements and not prohibited by the FDA or the Governmental Authority, within [***] and shall provide Zogenix in advance with a copy of any proposed written communication, or a written summary of any
proposed oral communication with the FDA or any other Governmental Authority. Astellas shall comply with any and all reasonable direction of Zogenix concerning any meeting or written or oral communication with the FDA or any other Governmental
Authority relating to the Product unless otherwise required by Legal Requirements or otherwise requested by the FDA or the other Governmental Authority. 
  

 

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 Section 5.5 Product Complaints 

Astellas shall refer any oral or written Product Complaints which it receives concerning the Product to Zogenix within [***] of its
receipt thereof; provided, that all Product Complaints concerning suspected or actual Product tampering, contamination or mix-up shall be delivered within [***] its receipt thereof. Astellas shall not take any other action in respect of
any such Product Complaint without the consent of Zogenix unless otherwise required by applicable Legal Requirements. At Zogenix’s request, Astellas will reasonably cooperate with Zogenix to resolve any Product Complaints and Zogenix shall
reimburse Astellas for its reasonable, out-of-pocket expenses for such cooperation. All Product Complaints shall be directed to the attention of Zogenix’s Vice President, Regulatory Affairs, at Zogenix’s address set forth in
Section 13.1 (or to Zogenix’s designated Third Party vendor providing such services to Zogenix, at Zogenix’s request). Zogenix shall provide Astellas with a summary of all Product Complaints received directly or indirectly by
Zogenix no less than once per Agreement Month; provided, however, that Zogenix shall provide Astellas with all Product Complaints concerning suspected or actual Product tampering, contamination, or mix-up within [***] hours of its receipt
thereof. 
 Section 5.6 Adverse Drug Experience Reports 

(a) Each Party shall notify the other: (i) of all Serious Adverse Drug Experience Reports within [***] of the time such
Serious Adverse Drug Experience Report becomes known to such Party (including its employees); and (ii) of all Adverse Drug Experience Reports within [***] of the time such Adverse Drug Experience Report becomes known to such Party (including
its employees). 
 (b) Except as may otherwise be required by Legal Requirements, (i) Astellas shall not disclose any
information concerning Adverse Drug Experience Reports or Serious Adverse Drug Experience Reports to any Person or Governmental Authority without the prior consent of Zogenix; and (ii) Zogenix shall have the sole discretion to determine whether
any Product Complaint, Adverse Drug Experience Report or Serious Adverse Drug Experience Report must be reported to the FDA or any other Governmental Authority. 
 (c) All follow-up investigations concerning Adverse Drug Experience Reports and Serious Adverse Drug Experience Reports shall be conducted by Zogenix or its appointed Third Party vendor to which Zogenix
has delegated such authority; provided that Astellas shall have the right to participate in such investigations upon its request. At Zogenix’s request, Astellas shall provide all reasonable cooperation with any such follow-up
investigation. Zogenix shall reimburse Astellas for its reasonable, out-of-pocket expenses for such cooperation. 
  

 

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 (d) The Parties will enter into a separate and more detailed pharmacovigilance agreement,
consistent with the terms of this Agreement, reasonably in advance of the Promotion Commencement Date. Zogenix shall maintain, at its sole expense, the global safety database relating to the Product, and shall be responsible for complying with all
reporting and other applicable Legal Requirements related thereto. 
 Section 5.7 Recalls or Other Corrective
Action 
 Zogenix shall have sole responsibility for and shall make all decisions with respect to any recall (including
recall of packaging and promotion materials), market withdrawals, or any other corrective action related to the Product. Zogenix shall promptly consult with Astellas with respect to any such actions proposed to be taken by Zogenix (and in all
events reasonably in advance of the taking of such actions), including all actions that are reasonably likely to result in a material adverse effect on the marketability of the Product in the Territory. At Zogenix’s request, Astellas shall
provide reasonable assistance to Zogenix in conducting such recall, market withdrawal, or other corrective action (including retrieving Samples distributed by the Astellas Sales Force to Professionals). [***]. 

Section 5.8 Assistance 
 Each Party agrees to provide to the other Party all reasonable assistance, and to take all actions reasonably requested by the other Party, in each case that are reasonably necessary to enable the other
Party to comply with any Legal Requirement applicable to the Product in the Territory. Except as otherwise expressly provided herein, [***], except to the extent [***]. 
 ARTICLE VI 
 MANUFACTURING AND SUPPLY; SALES; PRICING 

Section 6.1 Obligations of Zogenix 
 (a) In accordance with the provisions of this Agreement and all applicable Legal Requirements, Zogenix shall, at its cost and expense, use commercially reasonable efforts to perform or cause to be
performed all Product manufacture, labeling, packaging, warehousing, distribution and return, order entry, payment processing, customer services and all other activities to supply and distribute the Product in the Territory. 

(b) Zogenix shall use commercially reasonable efforts to ensure Timely Supply of (i) the Product ordered by Third Party
wholesalers, other distributors or retailers in the Territory commencing with the month in which the Promotion Commencement Date occurs; provided that Zogenix shall not be required to supply in any rolling [***] period an aggregate quantity of the
Product in excess of [***] of the aggregate quantity of the Product forecasted for such [***] period in the Volume Forecast most recently approved by the JSC prior to such Agreement Month, and (ii) Samples ordered by Astellas in accordance with
Section 6.5. 
  
  

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 (c) In addition, Zogenix shall use commercially reasonable efforts to maintain during each
Agreement Month commencing [***] after Launch, the amount of Safety Stock for such [***]. 
 Section 6.2 Volume
Forecasts; Sample Forecasts 
 (a) At least [***] prior to the beginning of each Agreement Quarter ending after the
Promotion Commencement Date, the JPT shall prepare, in accordance with Article III, and submit to the JSC a written forecast, by month, of the expected Trade Demand during the [***] period beginning with such Agreement Quarter, which forecast shall
be prepared by the JPT in good faith. 
 (b) No later than [***] following [***], the Parties shall agree upon a written
forecast, by month, of the expected Trade Demand during the twenty-four (24) month period following the Effective Date (the “Initial Volume Forecast”). Thereafter, at least forty five (45) days prior to the beginning of each
Agreement Quarter beginning with January 1, 2010, the JSC shall approve, in accordance with Article , a written forecast, by month, of the expected Trade Demand during the twenty-four (24) month period beginning with such Agreement Quarter
(the “Volume Forecast” for such Agreement Quarter). If the JSC does not approve a Volume Forecast for an Agreement Quarter, such Volume Forecast shall be determined in accordance with Section . 

(c) No later than [***], the Parties shall agree upon (i) the aggregate number of Sample units available to be utilized in the
Territory (including Sample units to be held by each Party as safety stock of Sample units), by month, during the Launch Period and (ii) the allocation, by month, of such number of Sample units between Zogenix and Astellas (the “Initial
Sample Forecast”). 
 (d) At least [***] prior to the beginning of each Agreement Quarter ending after the Launch Period,
the JPT shall determine, in accordance with Article III: (i) the aggregate number of Sample units available to be utilized in the Territory (including Sample units to be held by each Party as safety stock of Sample units), by month, during the
twelve- (12-) month period beginning with such Agreement Quarter; and (ii) the allocation, by month, of such number of Sample units between Zogenix and Astellas (the “Sample Forecast”). Each Sample Forecast shall be determined by
the JPT in good faith and shall reflect the levels of Astellas Promotional Effort and Zogenix Promotional Effort set forth in the Commercial Plan in effect for the period covered by such Sample Forecast and reasonable quantities of Sample units to
be held by each Party as safety stock of Sample units. 
  

 

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 (e) In the event that Trade Demand in any Agreement Month exceeds the quantity forecasted
for such Agreement Month in the Volume Forecast most recently approved by the JSC prior to such Agreement Month, then the Parties shall work in good faith to address such shortfall, including by allowing Safety Stock to temporarily fall below the
level required by Section 6.1(c), reallocating Sample production to trade, and other such measures as the Parties may agree. 
 (f) If the JSC fails to timely approve a Volume Forecast for any Agreement Quarter pursuant to Section 6.2(b), then the Volume Forecast most recently approved by the JSC shall continue to serve as
the Volume Forecast for the Agreement Quarter in dispute until an updated Volume Forecast is adopted by the JSC or determined by an arbitrator pursuant to Section 15.1 (which for clarity, in the case of a Volume Forecast determined through
arbitration, shall not be retroactive). Any Volume Forecast adopted by the arbitrator pursuant to Section 15.1 shall serve as the Volume Forecast (as if adopted by the JSC) from and after the first day of the first Agreement Month following
final determination by the arbitrator. 
 Section 6.3 [***] 

(a) Zogenix shall provide to Astellas [***] and [***] in each case, ((i) and (ii)), within [***] following the beginning of each
Agreement Month ending after the Promotion Commencement Date (or, if later, within [***] after such information becomes available to Zogenix). 
 (b) Not later than the [***] of each Agreement Month, Zogenix shall provide to Astellas reports (in a format reasonably agreed by the Parties) specifying: 

[***]. 
 (c)
Zogenix shall promptly (and in no event later than five (5) days) inform Astellas of any back-order situations (collectively, “Back Order Events”), and the Parties shall work in good faith to establish a remediation plan for
any such Back Order Events. 
 (d) If reasonably requested by either Party, Astellas and Zogenix shall discuss in good faith
the potential business impact of the data provided in the foregoing reports and notifications, and potential contingency plans to improve situations that may impact Zogenix’s ability to satisfy Trade Demand. 

Section 6.4 Sales; Pricing 
 (a) Zogenix or its Affiliates shall book all sales of the Product in the Territory and shall be responsible for entering into any contracts and other arrangements with any Person regarding the sale of the
Product. Subject to Sections 3.3 and 3.7, Zogenix shall be responsible for establishing and approving the form, content, and terms and conditions of contracts and other arrangements, including any discount, allowance, rebate, chargeback, or other
term granted therein. Zogenix shall use commercially reasonable efforts to obtain favorable terms under such contracts, including with respect to Selected Deductions. Zogenix shall contract with wholesalers, other distributors, and retailers in the
Territory without regard to Zogenix’s relative interests in the Zogenix Segment compared to the Astellas Segment, and shall not discriminate in favor of the Zogenix Segment at the expense of the Astellas Segment. 

 
  

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 (b) During the period commencing on the Effective Date and ending on the date forty-five
(45) days following the Effective Date (or such other date thereafter as the Parties may agree), the Parties shall discuss in good faith the possibility of Astellas (by and through its contractors or Affiliates) providing certain services with
respect to Product in the Territory, including trade, distribution, and managed care contracting support on terms to be agreed by the Parties. 
 Section 6.5 Samples 
 (a) Zogenix shall provide or cause to be
provided to Astellas, as ordered by Astellas hereunder, samples of the Product that are not for sale and are distributed with no fee associated (“Samples”) to be distributed by Astellas solely in connection with the performance of
Details to Professionals in accordance with this Agreement. 
 (b) Astellas shall place Sample Orders with Zogenix for Samples
at least [***] in advance of the required date of delivery set forth in such Sample Orders. Unless Zogenix consents, Astellas shall not order for delivery in any month a quantity of Samples in excess of the quantity of Samples allocated to Astellas
for such month in the Initial Sample Forecast or the Sample Forecast most recently determined by the JPT prior to the submission of the applicable Sample Order, as applicable. [***] after a Sample Order is received by Zogenix, Zogenix shall be
deemed to have accepted such Sample Order provided that such Sample Order complies with the ordering requirements of this Section 6.5(b). 
 (c) Zogenix shall deliver all Samples ordered by Astellas in accordance with Section 6.5(b) to Astellas [***] by the required delivery date specified in each Sample Order, and [***]. Astellas
shall be responsible for distributing the Samples to its Sales Representatives in a timely manner. Zogenix shall invoice Astellas, at the time of shipment, for each shipment of Samples, at the [***] payment due to Zogenix within [***] the
invoice date.
 (d) Samples supplied by Zogenix to Astellas shall be used by Astellas solely in performing Details to
Professionals in accordance with this Agreement. Upon its receipt of Samples, Astellas shall be solely responsible for accountability and compliance with the PDMA for the Astellas Sales Force, and other applicable Legal Requirements relating to
the distribution of such Samples by the Astellas Sales Force, and shall be responsible for adherence by its Sales Representatives to such Legal Requirements. Astellas shall also be responsible for securing the return and appropriate disposal of and
reconciling existing Sample inventories from discontinued Astellas Sales Representatives. 
  

 

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 Section 6.6 Manufacturing Matters; Inability to Supply. 

(a) Zogenix shall promptly inform Astellas in the event that Zogenix becomes aware of any matters which might reasonably be expected to
(i) result in a failure to supply Product or Samples in accordance with Section 6.1(b) hereof, or (ii) otherwise have an adverse impact on the ability to supply trade Product or Samples in a timely manner; including, in each case,
((i) and (ii)), any such matters relating to the availability or production of Components. 
 (b) Notwithstanding the
generality of the foregoing, Zogenix agrees to notify Astellas within [***] after Zogenix has become aware of any event or circumstance related to the manufacture of the Product that might reasonably be expected to impact the safety or efficacy of
Product that has been released by Zogenix or that might reasonably be expected to cause such released Product to be adulterated or misbranded within the meaning of the Act. 
 (c) Without limitation of any other remedy available to Astellas, in the event that in any Agreement Month Zogenix and its Affiliates have insufficient inventory of Product to satisfy Trade Demand in the
Territory and trade demand outside of the Territory during such month: (i) Zogenix shall notify Astellas of the shortage as soon as possible; (ii) Zogenix shall allocate for sale in the Territory, an amount of Product no less than [***],
divided by [***]; and (iii) Zogenix shall distribute Product in the Territory by allocating such Product in accordance with [***]. 
 (d) Without limitation of any other remedy available to Astellas, in the event that in any Agreement Month Zogenix has insufficient inventory of Samples to fulfill its delivery requirements for such month
pursuant to Sample Orders submitted by Astellas in accordance with Section 6.5(b): (i) Zogenix shall notify Astellas of the shortage as soon as possible; and (ii) Zogenix shall allocate for distribution as Samples to Astellas a
quantity of Sample units no less than [***], divided by [***]. 
 ARTICLE VII 

COMPENSATION; RECORDKEEPING; AUDITS 
 Section 7.1 Astellas Up-Front and Milestone Payments 
 (a) In
partial consideration for the rights granted to Astellas hereunder, prior to the Effective Date Astellas has paid to Zogenix, and Zogenix acknowledges receipt of, [***]. 
 (b) In partial consideration for the rights granted to Astellas hereunder, Astellas shall pay to Zogenix the following milestone payments: 

(i) [***], payable five (5) Business Days following the Effective Date; 

 
  

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 (ii) [***], payable within [***] of (x) [***]; 

(iii) [***], payable within [***] 9.3(a); and 
 (iv) [***], payable within [***]. 
 (v) Notwithstanding anything contained in
this Section 7.1(b): 
 (A) if Astellas terminates this Agreement pursuant to Section 8.2(a)(i), the milestone
described in Section 7.1(b)(i) shall be refundable in full and the milestone described in Section 7.1(b)(ii) shall not be payable; 
 (B) if Astellas terminates this Agreement pursuant to Section 8.2(b)(ii), the milestone described in Section 7.1(b)(i) shall not be refundable (except pursuant to Section 8.4(d)), the
milestone described in Section 7.1(b)(ii) shall be refundable in full, and the milestone described in Section 7.1(b)(iii) shall not be payable; and 
 (C) if Astellas terminates this Agreement pursuant to Section 8.2(b)(iii), the milestones described in Sections 7.1(b)(i) and 7.1(b)(ii) shall not be refundable (except pursuant to
Section 8.4(d)), the milestone described in Section 7.1(b)(iii) shall be refundable in full, and the milestone described in Section 7.1(b)(iv) shall not be payable. 
 In order to permit Astellas to review and consider matters relating to the achievement of the milestones set forth in this Section 7.1(b), Zogenix shall provide to Astellas such information and final
documents that Astellas reasonably requires as such information and documents are generated by or become available to Zogenix. 

Section 7.2 A&P Expenses 
 Each Party shall be responsible for and shall pay, in accordance with the terms hereof, (i) [***] of all Shared A&P Expenses, and (ii) such Party’s [***] of Allocated A&P Expenses,
in each case incurred by either Party during the Term in accordance with the then-current Commercial Plan (including the then-current Base Brand A&P Budget) (such Shared A&P Expenses and [***] of Allocated A&P Expenses,
“Co-Funded A&P Expenses”); provided that Zogenix shall be responsible for and shall pay [***]. For clarity, any A&P Expenses incurred by a Party (or any of its Affiliates) that are not included in the then-current
Base Brand A&P Budget or that are in excess of the amounts set forth in the then-current Base Brand A&P Budget shall not constitute Co-Funded A&P Expenses. 
 Section 7.3 Certain Medical Affairs Expenses 
 Each Party shall
be responsible for and shall pay, in accordance with the terms hereof, [***] (i.e., relating to medical affairs activities) and (ii) approved in advance by the JMT (“Co-Funded Medical Affairs Expenses”). For clarity, any costs
and expenses incurred by Zogenix (or any of its Affiliates) in connection with the performance of its obligations under Section 4.9 that are not approved by the JMT or are in excess of the amounts approved by the JMT shall not constitute
Co-Funded A&P Expenses, and Astellas shall not have any obligation to pay any share of such costs and expenses. 
  

 

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 Section 7.4 Expenses Associated with Certain Phase IV Studies 

Each Party shall be responsible for and shall pay, in accordance with the terms hereof, such Party’s [***] (as agreed in advance by
the Parties in writing, it being understood that the costs and expenses of the study contemplated by the Parties as of the Effective Date, if the Parties agree to collaborate with respect to such Phase IV Clinical Studies, shall be [***], but that
the allocated share of all other Post-Effective Date costs and expenses [***]) of Post-Effective Date costs and expenses (i) paid by a Party (or its Affiliates) to Third Party contractors and vendors (including clinical research organizations)
engaged in connection with the performance of a Phase IV Clinical Study with respect to which the Parties have agreed (in advance in writing) to collaborate under this Agreement, and (ii) approved in advance by the JMT (“Co-Funded Phase
IV Expenses”). For clarity, any costs and expenses incurred by a Party (or any of its Affiliates) in connection with (i) the performance of any Phase IV Clinical Study other than one with respect to which the Parties have agreed to
collaborate, or (ii) the performance of a Phase IV Clinical Study with respect to which the Parties have agreed to collaborate but that are in excess of the amounts approved by the JMT, in each case, ((i) and (ii)), shall not constitute
Co-Funded A&P Expenses, and the other Party shall not have any obligation to pay any share of such costs and expenses incurred by the other Party. 
 Section 7.5 Other Expenses 
 Each Party shall bear and be
solely responsible for all costs and expenses paid by it in connection with the Promotion of the Product and the performance of its obligations hereunder, which costs and expenses are not Co-Funded A&P Expenses, Co-Funded Medical Affairs
Expenses, or Co-Funded Phase IV Expenses. Without limitation to the foregoing, each Party will bear any Excluded Expenses (except Excluded Expenses that are Co-Funded Medical Affairs Expenses or Co-Funded Phase IV Expenses) it incurs. 

Section 7.6 Quarterly Payment of Expenses 
 Each Party shall submit to the other Party written reports containing detailed descriptions of all Co-Funded A&P Expenses, Co-Funded Medical Affairs Expenses, and Co-Funded Phase IV Expenses, in each
case paid by the Party during the applicable period in accordance with the Commercial Plan (in the case of A&P Expenses) or Committee approvals (in the case of Co-Funded Medical Affairs Expenses and Co-Funded Phase IV Expenses).
Each Party shall provide written reports setting forth a good faith estimate of such expenses with respect to each Agreement Month within [***] after the end of each Agreement Month, and shall provide written reports of the actual expenses
with respect to each Agreement Quarter within [***] after the end of each Agreement Quarter. As soon as reasonably practicable after the exchange of such quarterly reports, Zogenix shall calculate and provide a statement to Astellas reflecting
(a) the total amount of Co-funded A&P Expenses, Co-Funded Medical Affairs Expenses and Co-Funded Phase IV Expenses paid by both Parties collectively in accordance with this Agreement during such Calendar Quarter, and (b) the amount of
Co-funded A&P Expenses, Co-Funded Medical Affairs Expenses and Co-Funded Phase IV Expenses payable by each Party pursuant to Section 7.2, 7.3, or 7.4, respectively, with respect to such Agreement Quarter (the “Quarterly Expense
Share”). Not later than thirty (30) days after the end of each Agreement Quarter, each Party shall make reconciling payments to the other as necessary to ensure that each Party bears its Quarterly Expense Share with respect to the
applicable period; provided that Zogenix may offset any Quarterly Expense Share reconciliation payments due to Zogenix by Astellas hereunder against the Service Fee owed to Astellas for the applicable period. 

 
  

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 Section 7.7 Service Fees and Adjustment Payments 

(a) In partial consideration for Astellas’s performance of its obligations under this Agreement, Zogenix shall pay to Astellas
(i) a service fee (the “Service Fee”) equal to [***] Astellas Net Sales for each Agreement Month during the Term, and (ii) any annual reconciliation payment required under Section 7.7(d). 

(b) Within [***] after the end of each Agreement Month, Zogenix shall provide to Astellas a written report setting forth a good faith
estimate of the gross invoiced sales of Product to Third Parties in the Territory during such Agreement Month. Within [***] following the end of each Agreement Month, Zogenix shall provide Astellas with a statement in a mutually agreeable format
setting forth: (i) [***]. If any material discrepancies are identified, Zogenix and Astellas shall work collaboratively to make the necessary corrections with respect to the measurement of Units dispensed and any necessary changes to Astellas
Net Sales calculations hereunder. For the purposes of the preceding sentence, a “material discrepancy” shall be any discrepancy [***]. Such collaboration as contemplated in this Section 7.7(b) shall take into account all reasonably
relevant and available information as relates to both the number of Units dispensed and Units measured by wholesaler reported outflow and returns, including in the case of wholesaler outflow and returns, information with respect to current retailer
inventory levels, wholesaler outflow to institutions, and any other outflow not related to the retail or mail order segments. 

(c) The Service Fee will be paid to Astellas following each Agreement Quarter with respect to each Agreement Month within such Agreement
Quarter within [***] after the end of the Agreement Quarter, subject to offset as set forth in Sections 7.6 and 7.7. 
 (d) No
earlier than the end of the second full calendar quarter following the end of each Agreement Year (or as otherwise agreed by the Parties), Zogenix shall perform a true-up for all Net Sales with respect to each Agreement Quarter in such Agreement
Year. Such true-up shall reconcile the Deductions that were incurred with respect to such Net Sales with the Deductions that were accrued or estimated with respect thereto. Each Party shall make reconciling payments to the other as necessary to
effect such true-up with respect to the Service Fees paid for the Agreement Year. Zogenix shall provide to Astellas such reconciliation no later than [***] the end of the second full calendar quarter following the end of the Agreement Year. If
Zogenix is required to make a payment to Astellas to effect such reconciliation, then Zogenix shall provide such payment to Astellas along with such reconciliation. If Astellas is required to make a payment to Zogenix to effect such reconciliation,
Zogenix shall offset such payment against future amounts owed by Zogenix to Astellas pursuant to Section 7.7(c) (or, following the expiration or termination of this Agreement, Astellas shall make such payment directly to Zogenix within [***]
following receipt of the reconciliation). Zogenix shall provide to Astellas, along with the reconciliation, all documentation reasonably requested by Astellas in a form to be agreed by the Parties to document the reconciliation. 

 
  

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 Section 7.8
Tail Payments 
 Following the Term, except as set forth in Section 8.4, Zogenix shall pay Astellas the
following payments based on Astellas Net Sales during the last full twelve (12) months of Astellas Minimum Sales Effort (such period, the “Final Astellas Promotional Period;” each such payment, a “Tail
Payment”): 
 (a) On the [***] of the last day of the Final Astellas Promotional Period, an amount equal to [***] of
the Astellas Net Sales during the Final Astellas Promotional Period; and 
 (b) On the [***] of the last day of the Final
Astellas Promotional Period, an amount equal to [***] of the Astellas Net Sales during the Final Astellas Promotional Period. 

Section 7.9 Maintenance of Records; Audits 
 (a) Each Party shall maintain the following books and records: 
 (i) Books and
records documenting the Party’s compliance with applicable Legal Requirements and the applicable requirements of Articles IV, V, and VI (“Compliance Records”). The Compliance Records shall include the Party’s policies and
procedures concerning compliance with applicable Legal Requirements and the requirements of Articles IV, V, and VI then in effect, and records of any investigations and remedial and disciplinary actions taken to address material violations of
applicable Legal Requirements or the requirements of Articles IV, V, or VI. 
 (ii) Books and records documenting the
Party’s performance of its Promotional efforts hereunder, including books and records documenting (A) the number of individual Sales Representatives Promoting the Product in each Agreement Month, (B) all Vacancies in the Sales Force
Promoting the Product, (C) all Details performed by each Sales Representative with respect to the periods in which these metrics are applicable, including the Professionals called upon and whether the Details were P1 Details, P2 Details, or
Co-P2 Details, and (D) Incentive Compensation weightings for each Sales Representative with respect to the periods in which these metrics are applicable (provided that Parties shall not be obligated to share those aspects of Incentive
Compensation plans that are not required to be shared to demonstrate Incentive Compensation weighting) (“Promotion Records”). 
  

 

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 (iii) Books and records documenting the Party’s performance of its training
obligations hereunder (“Training Records”). 
 (iv) Books and records documenting Co-funded A&P Expenses,
Co-Funded Medical Affairs Expenses, and Co-Funded Phase IV Expenses (“Expense Records”). 
 (v) In the case of
Zogenix, books and records documenting all Sample Orders, Sample Forecasts, Volume Forecasts, and Trade Demand, and Zogenix’s levels of Safety Stocks, Sample Orders fulfilled, Samples and Product distributed by Zogenix in the Territory, Samples
and Product distributed outside the Territory, and manufacturing, supply, and shipping records, and in the case of Astellas, books and records documenting all Samples distributed by Astellas in the Territory (with respect to a Party, its
“Volume Records”). 
 (vi) In the case of Zogenix, books and records documenting gross invoiced sales of
Product in the Territory, Deductions, Astellas Segment Dispensed Units, and Territory Invoiced Units during each Agreement Month in the Agreement Year, and any related adjustments and reconciliations for each Agreement Year (“Net Sales
Records”). 
 (b) Such books and records shall be maintained for the greater of three (3) years after the end of
the calendar year to which such books and records pertain, and such additional period as is required by applicable Legal Requirements. Such books and records shall be complete and accurate, and maintained, when applicable, with such Party’s
accounting practices, consistently applied. Such books and records shall be maintained in sufficient detail and only for the purpose of enabling a Third Party to (i) in the case of Compliance Records, verify the Party’s compliance with
Legal Requirements and the applicable requirements of Articles IV, V, and VI, (ii) in the case of Promotion Records, verify the Party’s performance of its Promotion obligations hereunder, (iii) in the case of Training Records, verify
the Party’s performance of its training obligations hereunder, (iv) in the case of Expense Records, verify the accuracy of the expenses shared between the Parties hereunder, (v) in the case of Volume Records, verify Zogenix’s
compliance with its supply obligations hereunder with respect to the delivery of Samples and Product, and verify Sample Forecasts and Volume Forecasts made, (vi) in the case of Volume Records, verify Astellas’s compliance with its
obligations hereunder with respect to delivery of Samples, and (vii) in the case of Net Sales Records, verify the calculation of Net Sales, Service Fees, Tail Payments, and Royalty Payments. 

(c) Upon thirty (30) days prior written notice, such books and records shall be made available for audit during business hours by
an independent certified public accounting firm designated by the other Party and reasonably acceptable to the Party being audited for the purposes set forth in Section 7.9(b). Each Party shall cooperate with the audit. A Party may
exercise this audit right no more frequently than once in each period of twelve (12) consecutive months; provided that (i) if the audit reveals that the audited Party is or was not in material compliance with Legal Requirements or
the requirements of Articles IV, V, or VI or its obligations hereunder, or (ii) if the audit reveals that the audited Party incorrectly reported or calculated expenditures, payments, Net Sales figures, Astellas Net Sales figures, Territory
Invoiced Unit or Astellas Segment Dispensed Unit figures, or the adjustments or reconciliations contemplated in Section 7.7(d), and the amount of such discrepancy is at least [***] of the aggregate amount that should have been reported or
calculated for the period examined, then (A) the audited Party shall promptly implement corrective actions reasonably acceptable to the auditing Party to thereafter ensure compliance or accurate reporting, as applicable, and (B) the
auditing Party shall have the right to conduct such additional audits during the following twelve (12) months as may be reasonably required by such auditing Party to determine whether the audited Party has appropriately remedied such
non-compliance or inaccurate reporting, as applicable. 
  

 

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 (d) If the audit concludes that additional payments were owed or that excess payments were
made during such period, the owing Party shall pay the additional payments or the receiving Party shall reimburse such excess payments within forty-five (45) days. 
 (e) The fees and expenses of the auditor shall be borne by the auditing Party; provided, however, that if the audit reveals that the audited Party is or was not in material compliance with Legal
Requirements or the requirements of Articles IV, V, or VI or its obligations hereunder, or has reported or calculated incorrectly expenditures, payments, Net Sales figures, Astellas Net Sales figures, Territory Invoiced Unit or Astellas Segment
Dispensed Unit figures, or the adjustments or reconciliations contemplated in Section 7.7(d), and the amount of such discrepancy is at least [***] of the aggregate amount that should have been reported or calculated for the period examined,
then the audited Party shall pay the entire amount of the audit fees and expenses. 
 (f) If the audited Party disputes the
audit, such Party promptly shall notify the other Party in writing and the Parties shall use good faith efforts to resolve such dispute. If the Parties are unable to resolve such dispute within thirty (30) days after such written notice, an
independent accounting firm mutually agreed to by the Parties (the costs of which shall be paid one-half by each Party) shall resolve such dispute and such accounting firm’s resolution shall be final and binding on the Parties. Each Party shall
cooperate with such accounting firm’s investigation. 
 Section 7.10 Payments 

Any payments required to be made under this Agreement shall be made in United States dollars via wire transfer of immediately available
funds to such bank account as a Party shall designate in writing prior to the date of such payment. All payments shall bear interest from the date due until paid at a rate equal to the prime rate effective for the date that payment was due [***], as
quoted by the Wall Street Journal, New York Edition, on the date such payment was due, or, if less, the maximum rate permitted by applicable law. 
  

 

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 Section 7.11 Zogenix Segment/Astellas Segment 

If at any time during the Term either Party reasonably determines that the Specialty Level Data fails to, or is likely to fail to,
reasonably accurately reflect the portion of Net Sales attributable to prescriptions written by Professionals in the Zogenix Segment or the Astellas Segment (whether as a result of Professionals opting out of Wolters Kluwer (or such other mutually
agreed upon source) or otherwise), the Parties shall negotiate in good faith with respect to implementing a revised manner of measuring the portion of Net Sales attributable to prescriptions written by Professionals in the Zogenix Segment and the
Astellas Segment. The Parties shall consider in their discussions any other customary manner of determining similar information in similar circumstances. 
 ARTICLE VIII 
 TERM AND TERMINATION 

Section 8.1 Term 
 (a) The term of this Agreement shall commence on the Effective Date and shall continue, unless terminated sooner in accordance with this Article VIII, until (i) June 30, 2013, or (ii) if
the Promotion Commencement Date has not occurred on or before January 31, 2010, forty-two (42) months following the Promotion Commencement Date (the “Initial Term”). The Initial Term may be extended as set forth in
Section 8.1(b) (the Initial Term, as may be extended, the “Term”). 
 (b) Astellas shall have a one-time
option (the “Term Extension Option”) to extend the Initial Term by an additional twelve (12) months. Astellas may exercise the Term Extension Option by written notice to Zogenix at any time during the period beginning on [***]
and ending on [***] (the “Option Exercise Period”). Such written notice shall be accompanied by a one-time, non-refundable, non-creditable payment to Zogenix in the amount of [***] (the “Option Payment”). Upon
receipt by Zogenix of the Option Payment during the Option Exercise Period, the Initial Term shall automatically be extended through (i) June 30, 2014, or (ii) if the Promotion Commencement Date of the Product has not occurred on or
before January 31, 2010, fifty-four (54) months following the Promotion Commencement Date. 
 Section 8.2
Early Termination 
 (a) Astellas Termination Rights. Astellas shall have the following termination
rights: 
 (i) Astellas may terminate this Agreement upon written notice to Zogenix if the milestone described in
Section 7.1(b)(ii) is not achieved by October 15, 2009. 
 (ii) Astellas may terminate this Agreement upon written
notice to Zogenix if the milestone described in Section 7.1(b)(iii) is not achieved by January 1, 2010. 
  

 

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 (iii) Astellas may
terminate this Agreement upon written notice to Zogenix if the milestone described in Section 7.1(b)(iv) is not achieved by April 1, 2010. 
 (iv) Astellas may terminate this Agreement for any reason or no reason by providing one hundred eighty (180) days’ prior written notice to Zogenix; provided that such notice may not be
provided at any time before September 30, 2010. 
 (v) Astellas may terminate this Agreement by providing ninety
(90) days’ prior written notice to Zogenix in the event of a Zogenix Change of Control; provided, however, that such notice of termination must be delivered to Zogenix no later than thirty (30) days following receipt by
Astellas of notice by Zogenix of the occurrence of a Zogenix Change of Control; provided, further, that Zogenix may provide written notice to Astellas in advance of the occurrence of a Zogenix Change of Control (and along with such notice
Zogenix shall provide the identity of the counterparty(ies) in the Zogenix Change of Control transaction and such other information reasonably necessary to assure Astellas of the ability of the surviving entity in the transaction to satisfy
Zogenix’s obligations under this Agreement), and following such notice (and the provision of the other required information), Astellas shall have thirty (30) days to provide notice to Zogenix of its intention to terminate this Agreement
pursuant to this Section 8.2(a)(v), such notice to be provided to Zogenix in writing. For clarity, if Zogenix provides the notice referred to herein in advance of the occurrence of a Zogenix Change of Control (along with the other information
required pursuant to this Section 8.2(a)(v)) and Astellas does not comply with its notice requirements with respect to its intention to terminate, Astellas thereafter shall have no right to terminate this Agreement in connection with such
Zogenix Change of Control pursuant to this Section 8.2(a)(v). 
 (vi) Astellas may terminate this Agreement immediately
upon written notice to Zogenix in any of the following circumstances: (A) any Governmental Authority takes any action or raises any objection that prevents Astellas from performing its obligations under this Agreement or makes such activity
unlawful; (B) a Zogenix Supply Failure occurs; (C) a Third Party (x) asserts in writing that the using, making, having made, selling, offering for sale, or importing of the Product infringes an issued patent in the Territory
controlled by such Third Party, and Zogenix’s patent counsel has not, within thirty (30) days of Zogenix’s receipt of such written assertion, rendered a written opinion that the assertions are without merit, or (y) files an
action making such assertions; or (D) Zogenix materially breaches its Zogenix Minimum Sales Effort obligation, and such breach remains uncured ninety (90) days following written notice from Astellas reasonably specifying the nature of such
material breach. 
 (b) Zogenix Termination Rights. Zogenix may terminate this Agreement with ninety
(90) days’ prior written notice to Astellas if Astellas materially breaches its Astellas Minimum Sales Effort obligation (and such material breach must be described with reasonable specificity in such notice); provided that with
respect to the first such material breach with respect to which Zogenix has provided notice to Astellas pursuant to this Section 8.2(b) in any twelve- (12-) month period, such termination shall not become effective if Astellas cures the
material breach within such ninety- (90-) day period. For the avoidance of doubt, with respect to the second or any subsequent material breach within any twelve- (12-) month period with respect to which Zogenix has provided notice to Astellas
pursuant to this Section 8.2(b), the termination shall become effective at the end of such ninety- (90-) day period, notwithstanding any cure by Astellas. 

  
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 (c) Mutual
Termination Rights. 
 (i) Either Party shall have the right to terminate this Agreement immediately upon written notice to
the other Party in the event of a large-scale recall or withdrawal of the Product from the Territory resulting from a significant safety risk inherent in the Product and not due to tampering, a remediable manufacturing problem, or other defect that
can be cured with respect to the Product manufactured after such risk is discovered. 
 (ii) Either Party shall have the right
to terminate this Agreement upon ninety (90) days’ prior written notice to the other Party if (x) the [***] Threshold (as defined with respect to the applicable periods below) and (y) solely in the case of the period set forth in
Section 8.2(c)(ii)(C) below, the Minimum Demand Unit Threshold (as defined with respect to the applicable periods below) are not achieved in any of the periods set forth below. Such notice shall be given within thirty (30) days after the
first date on which the Net Sales data and Demand Unit data (solely in the case of the period set forth in Section 8.2(c)(ii)(C)) for the relevant period are provided to Astellas by Zogenix pursuant to Section 7.7(b). If the Promotion
Commencement Date is delayed beyond January 31, 2010, the Parties will renegotiate in good faith the [***] Thresholds and the Minimum Demand Unit Threshold to reflect the expected impact of such delay. 

(A) For the period commencing on January 1, 2010, and ending on September 30, 2010, the “[***] Threshold” will be
[***] of aggregate Net Sales in the Territory for the period and there will be no “Minimum Demand Unit Threshold.” 

(B) For the period commencing on January 1, 2010, and ending on December 31, 2010, the “[***] Threshold” will be
[***] of aggregate Net Sales in the Territory for the period and there will be no “Minimum Demand Unit Threshold.” 

(C) For the period commencing on January 1, 2011, and ending on December 31, 2011, the “[***] Threshold” will be
[***] of aggregate Net Sales in the Territory for the period and the “Minimum Demand Unit Threshold” will be [***]. 
 Notwithstanding
the foregoing, if Zogenix fails to Timely Supply Product in amounts sufficient to meet the agreed-upon 2010 Volume Forecasts or the 2011 Volume Forecasts, as applicable, Zogenix shall not have the right to terminate this Agreement pursuant to this
Section 8.2(c)(ii). 
 (iii) Except with respect to events giving rise to early termination elsewhere in this
Section 8.2, either Party may terminate this Agreement with sixty (60) days’ prior written notice to the other Party in the event of a material failure of the other party to comply with its material obligations contained in this
Agreement (and such material failure must be described with reasonable specificity in such notice); provided that such termination shall not become effective if the breaching Party cures the material failure within such sixty- (60-) day
period. Notwithstanding the previous sentence, in the case of a material failure of Zogenix to comply with its Safety Stock obligations under Section 6.1, Astellas shall provide ninety (90) days’ prior written notice, and such
termination shall not become effective with respect to the first such material failure with respect to such Safety Stock obligations in any twelve- (12-) month period if Zogenix cures the material failure within such ninety- (90-) day
period. For the avoidance of doubt, with respect to the second or any subsequent material failure with respect to such Safety Stock obligations within any twelve (12) month period with respect to which Astellas has provided notice to
Zogenix pursuant to this Section 8.2(c)(iii), the termination shall become effective at the end of such ninety- (90-) day period, notwithstanding any cure by Zogenix. 

 
  

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 (iv) To the extent permitted by law, either Party may terminate this Agreement upon written
notice to the other Party in the event of (A) the entry of an order for relief under the United States Bankruptcy Code (or any corresponding remedy under successor laws) against the other Party, (B) the filing of a petition by or against
the other Party under any bankruptcy, insolvency, or similar law (which petition is not dismissed within sixty (60) days after filing), except Chapter 11 of the United States Bankruptcy Code or any successor statute that permits a corporation
to continue its operation while protecting it from creditors, (C) the appointment of a receiver for the other Party’s business or property, or (D) the other Party’s making of a general assignment for the benefit of its creditors.

 Section 8.3 Force Majeure 
 In the event of a material failure of a Party to perform any of its material obligations under this Agreement (including Zogenix’s supply obligations) by reason of a Force Majeure Event for a period
of [***], (i) the other Party may terminate this Agreement upon written notice to the non-performing Party, or (ii) the other Party may have this Agreement continue in full force and effect without modification. No Party will be
liable to the other for its inability to perform under this Agreement due to any such Force Majeure Event. 
 Section 8.4
Effect of Termination 
 (a) In the event of termination by Astellas of this Agreement pursuant to
Section 8.2(a)(iv), which termination becomes effective in calendar year 2011, Astellas shall pay to Zogenix a termination fee of [***] and Zogenix shall have no obligation to pay to Astellas the Tail Payments. In the event of termination by
Astellas of this Agreement pursuant to Section 8.2(a)(iv) effective in calendar year 2012, Astellas shall pay to Zogenix a termination fee of [***] and Zogenix shall be obligated to pay Astellas only the Tail Payment set forth in
Section 7.8(a). For the avoidance of doubt, Zogenix shall have no obligation to pay to Astellas the Tail Payment set forth in Section 7.8(b). 

 

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 (b) In the event of termination by Astellas of this Agreement pursuant to
Section 8.2(a)(vi), Zogenix shall pay to Astellas a royalty of [***] of all Net Sales in the Territory until such time as (i) if the notice of termination is provided at any time prior to or on the first anniversary of the Effective Date,
Astellas has received an aggregate of [***] of royalty payments, or (ii) if the notice of termination is provided at any time after the first anniversary of the Effective Date and prior to or on the second anniversary of the Effective Date,
Astellas has received an aggregate of [***] of royalty payments (such payments, the “Royalty Payments”). Royalty Payments due under this Section 8.4(b) shall be in lieu of the right to receive the Tail Payments as set forth in
Section 7.8. If the notice of termination is provided after the second anniversary of the Effective Date, no royalty payments shall be due to Astellas pursuant to this Section 8.4(b) and, instead, Astellas shall be entitled to receive the
Tail Payment set forth in Section 7.8(a), but not the Tail Payment set forth in Section 7.8(b). 
 (c) In the event
of termination by Zogenix of this Agreement pursuant to Section 8.2(b), Zogenix shall have no obligation to pay to Astellas the Tail Payments. 
 (d) In the event of termination by Astellas of this Agreement pursuant to Section 8.2(c)(i) at any time prior to or on the first anniversary of the Effective Date, Zogenix shall refund to Astellas
the milestone payments paid pursuant to Section 7.1(b) up to an amount not to exceed [***]. For clarity, if the notice of termination is provided pursuant to Section 8.2(c)(i) after the first anniversary of the Effective Date, no milestone
payments shall be refunded pursuant to this Section 8.4(d) and, instead, Astellas shall be entitled to receive the Tail Payment set forth in Section 7.8(a), but not the Tail Payment set forth in Section 7.8(b). 

(e) In all other circumstances of expiration or termination, no termination fee shall be owed to either Party and Astellas shall be
entitled to receive the Tail Payments. 
 (f) In the event of termination by Astellas of this Agreement pursuant to
Section 8.2(a)(iv) or by Zogenix pursuant to Section 8.2(b) or Section 8.2(c)(iii), Astellas shall reimburse Zogenix for its reasonable out-of-pocket costs and expenses incurred as a result of destruction of Promotional Materials
containing the Astellas Trademark and the replacement of such Promotion Materials. 
 (g) Expiration or termination of this
Agreement shall not relieve either Party of any obligations accruing prior to such expiration or termination. The following provisions of this Agreement by their terms continue after the expiration or termination of this Agreement: Sections
4.5(f), 4.6(e) (solely with respect to the first two sentences thereof), 4.8, 5.5 through 5.7 (with respect to Products distributed during the Term), 6.3(a) (solely with respect to Agreement Months), 6.5(d), 7.1(b)(v), 7.2 through 7.6 (solely with
respect to costs and expenses incurred during the Term), 7.7 (solely based on Net Sales during the Term and related reconciliations), 7.8 through 7.11, 10.2 (solely, in the case of the second sentence, for the period set forth therein), 10.3(b)
(solely with respect to Enforcement Actions pertaining to activities during the Term), and this Section 8.4, and Articles XI (as set forth therein), XII (solely to the extent set forth in Section 12.4), XIII, XIV, and XV. In addition,
any other provisions required to interpret and enforce the Parties’ rights and obligations under this Agreement shall also survive, but only to the extent required for the full observation and performance of this Agreement. 

 

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 (h) Expiration or termination of this Agreement shall be without prejudice to (i) any
remedies which any Party may then or thereafter have hereunder or at law or in equity; (ii) a Party’s right to receive any payment accrued under the Agreement prior to the termination date but which became payable thereafter; and
(iii) either Party’s right to obtain performance of any obligations provided for in this Agreement that survive termination by their terms or by a fair interpretation of this Agreement. Except as expressly set forth herein, the rights
to terminate as set forth herein and the consequences of such termination shall be in addition to all other rights and remedies available under this Agreement, at law or in equity, or otherwise. 

(i) Upon the expiration or termination of this Agreement pursuant to this Article VIII, each Party shall promptly destroy or delete all
embodiments, whether printed or electronic, of the Proprietary Information of the other Party in its control or possession (or in the control or possession of its Affiliates, employees, officers, directors, agents, and contractors) (including, in
the case of Astellas as the destroying Party, the Promotional Materials, and in the case of Zogenix as the destroying Party, all training materials provided by Astellas), and shall certify to the other Party as to such destruction and
deletion. Notwithstanding the foregoing, the destroying Party may keep one copy of such Proprietary Information or materials, as applicable, for archival purposes, and such copies of the foregoing as are required to be kept by Legal
Requirements or the Party’s internal compliance policies, consistently applied. 
 ARTICLE IX 

REPRESENTATIONS AND WARRANTIES 
 Section 9.1 Representations and Warranties of Zogenix 
 Zogenix
hereby represents and warrants to Astellas as of the date hereof, and covenants to Astellas, as follows: 
 (a)
Organization. Zogenix (i) is a corporation duly organized, validly existing and in good standing under the laws of the state of Delaware, and (ii) has all necessary corporate power and corporate authority to own its properties and
to conduct its business, as currently conducted. 
 (b) Authorization. The execution and delivery of this Agreement and
the consummation of the transactions contemplated hereby are within the corporate power of Zogenix, have been duly authorized by all necessary corporate proceedings of Zogenix, and this Agreement has been duly executed and delivered by Zogenix.

 (c) No Conflict. The execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby do not: (i) conflict with or result in a breach of any provision of Zogenix’s organizational documents; (ii) result in a material breach of any material agreement to which Zogenix is Party; (iii) result in a violation
of any Order to which Zogenix is subject; (iv) require Zogenix to obtain any material approval or consent from any Governmental Authority or Third Party other than those consents and approvals which have been obtained prior to the date hereof;
or (v) violate any Legal Requirement applicable to Zogenix in any material respect. 
  

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 (d) Enforceability. This Agreement constitutes the valid and binding obligation of
Zogenix, enforceable against Zogenix in accordance with its terms, subject to bankruptcy, reorganization, insolvency and other similar laws affecting the enforcement of creditors’ rights in general and to general principles of equity
(regardless of whether considered in a proceeding in equity or an action at law). 
 (e) Zogenix Intellectual Property.
To the knowledge of Zogenix, the manufacture and importation of the Product and the Promotion and sale of the Product in the Territory in accordance with this Agreement will not infringe any patents, Trademarks or other intellectual property rights
of any Third Party; provided that Zogenix makes no representation as to the Astellas Trademarks. Zogenix has not received any written claim or demand from any Third Party alleging that any infringement, violation, or misappropriation of
such Third Party’s intellectual property rights has occurred as a result of or in connection with the manufacture, use, offer for sale, sale or importation of the Product in the Territory. Zogenix is not aware of any actual, alleged, or
threatened infringement, violation, or misappropriation by a Third Party of any Zogenix intellectual property rights covering the Product or its manufacture, use, or sale. Zogenix has not received any written claim or demand from any Third Party
alleging invalidity or unenforceability of any patents or patent applications owned or otherwise Controlled by Zogenix covering the Product or its manufacture, use, or sale. 
 (f) Litigation. There is no litigation, arbitration proceeding, governmental investigation, action, or claims of any kind, pending or, to the knowledge of Zogenix, threatened, by or against Zogenix
or any of its Affiliates relating to the Product or its manufacture, use, or sale that would reasonably be expected to materially affect Zogenix’s or Astellas’s ability to perform its obligations hereunder. 

(g) Documentation and Diligence. 
 (i) Zogenix has made available to Astellas (A) the NDA; (B) any clinical and non-clinical data and reports, medical information, and regulatory documentation not otherwise included in the NDA
with respect to safety and efficacy of the Product, in each case known to Zogenix as of the Effective Date; and (C) any material non-public market research, agreements, and other documentation related to the Product in Zogenix’s
possession, in the case of clause (C), that have been requested by Astellas in writing prior to July 24, 2009 (subject to limitations imposed by Third Party confidentiality agreements), and in each case, ((A), (B) and (C)), all such
copies, documents, and information were true, complete, and correct as of the date of delivery by Zogenix to Astellas. 
 (ii)
Zogenix has provided Astellas with (A) any information with respect to the manufacture of the Product or any of its Components that has been requested by Astellas in writing prior to July 24, 2009; (B) any other information with
respect to the manufacture of the Product or any of its Components that would reasonably be expected to materially and adversely affect the manufacture of the Product or any of its Components or the supply of Product in accordance with the terms of
this Agreement; and (C) any information relating to the manufacture of the Product or any of its Components that would reasonably be expected to result in a delay in the Launch of the Product until or after April 1, 2010, and in each case,
((A), (B) and (C)), all such information was true, complete, and correct as of the date of delivery by Zogenix to Astellas. 
  

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 (iii) Except to the extent made available or provided to Astellas by Zogenix prior to
July 24, 2009, as of the Effective Date, there is no information known to Zogenix that would reasonably be expected to materially and adversely affect the commercialization of the Product in the Territory as contemplated in this Agreement,
including by delaying the Launch of the Product after April 1, 2010. 
 (h) Generic Drug Act. Pursuant to the
Generic Drug Enforcement Act of 1992, 21 U.S.C. § 335a, as may be amended or supplemented (the “Generic Drug Act”), 
 (i) none of Zogenix, its Affiliates, or, to the knowledge of Zogenix, any Person under its direction or control is currently debarred by the FDA under the Generic Drug Act; 

(ii) none of Zogenix, its Affiliates, or, to the knowledge of Zogenix, any Person under its direction or control is currently using or
will use in any capacity in connection with the Product any Person that is debarred by FDA under the Generic Drug Act; and 

(iii) there have been no convictions of Zogenix, its Affiliates, or, to the knowledge of Zogenix, any Person under its direction or
control for any of the types of crimes set forth in the Generic Drug Act within the five years prior to the Effective Date. 

(i) Legal Requirements. None of Zogenix, its Affiliates, or, to the knowledge of Zogenix, any Person under its direction or
control is currently or has been excluded from a federal or state health care program under Sections 1128 or 1156 of the Social Security Act, 42 U.S.C. §§ 1320a-7, 1320c-5 as may be amended or supplemented. None of Zogenix, its
Affiliates, or, to the knowledge of Zogenix, any Person under its direction or control is otherwise currently excluded or has otherwise been excluded from contracting with the federal government. None of Zogenix, its Affiliates, or, to the
knowledge of Zogenix, any Person under its direction or control is otherwise currently or has otherwise been excluded, suspended, or debarred from any federal or state program. Zogenix shall immediately notify Astellas if, at any time during
the Term, (x) Zogenix or its Affiliates is convicted of an offense that would subject Zogenix or Astellas to exclusion, suspension, or debarment from any federal or state program, or (y) Zogenix becomes aware that any Person under the
direction or control of Zogenix or its Affiliates is convicted of an offense that would subject Zogenix or Astellas to exclusion, suspension, or debarment from any federal or state program. 

Section 9.2 Representations and Warranties of Astellas 

Astellas hereby represents and warrants to Zogenix as of the date hereof, and covenants to Zogenix, as follows: 

(a) Organization. Astellas (i) is a corporation duly organized, validly existing and in good standing under the laws of
the state of Delaware, and (ii) has all necessary corporate power and corporate authority to own its properties and to conduct its business, as currently conducted. 

 

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 (b) Authorization. The execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby are within the corporate power of Astellas, have been duly authorized by all necessary corporate proceedings of Astellas, and this Agreement has been duly executed and delivered by Astellas. 

(c) No Conflict. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby do
not: (i) conflict with or result in a breach of any provision of Astellas’s organizational documents; (ii) result in a material breach of any material agreement to which Astellas is Party; (iii) result in a violation of any
Order to which Astellas is subject; (iv) require Astellas to obtain any material approval or consent from any Governmental Authority or Third Party other than those consents and approvals which have been obtained prior to the date hereof; or
(v) violate any Legal Requirement applicable to Astellas in any material respect. 
 (d) Enforceability. This
Agreement constitutes the valid and binding obligation of Astellas, enforceable against Astellas in accordance with its terms, subject to bankruptcy reorganization, insolvency, and other similar laws affecting the enforcement of creditors’
rights in general and to general principles of equity (regardless of whether considered in a proceeding in equity or an action at law). 
 (e) Astellas Trademarks. To the knowledge of Astellas, the use of the Astellas Trademarks in accordance with this Agreement will not infringe any trademarks or other intellectual property rights of
any Third Party. 
 (f) Litigation. There is no litigation, arbitration proceeding, governmental investigation, action,
or claims of any kind, pending or, to the knowledge of Astellas, threatened, by or against Astellas or any of its Affiliates that would reasonably be expected to materially affect Astellas’s ability to perform its obligations hereunder.

 (g) Generic Drug Act. Pursuant to the Generic Drug Act, 

(i) none of Astellas, its Affiliates, or, to the knowledge of Astellas, any Person under its direction or control is currently debarred
by the FDA under the Generic Drug Act; 
 (ii) none of Astellas, its Affiliates, or, to the knowledge of Astellas, any Person
under its direction or control is currently using or will use in any capacity in connection with the Product any Person that is debarred by FDA under the Generic Drug Act; and 

(iii) there have been no convictions of Astellas, its Affiliates, or, to the knowledge of Astellas, any Person under its direction or
control for any of the types of crimes set forth in the Generic Drug Act within the five years prior to the Effective Date. 
  

 54 

 (h) Legal Requirements. None of Astellas, its Affiliates, or, to the knowledge of
Astellas, any Person under its direction or control is currently excluded or has been from a federal or state health care program under Sections 1128 or 1156 of the Social Security Act, 42 U.S.C. §§ 1320a-7, 1320c-5 as may be amended or
supplemented. None of Astellas, its Affiliates, or, to the knowledge of Astellas, any Person under its direction or control is otherwise currently excluded or has otherwise been excluded from contracting with the federal government. None of
Astellas, its Affiliates, or, to the knowledge of Astellas, any Person under its direction or control is otherwise currently or has otherwise been excluded, suspended, or debarred from any federal or state program. Astellas shall immediately
notify Zogenix if, at any time during the Term, (x) Astellas or its Affiliates is convicted of an offense that would subject Astellas or Zogenix to exclusion, suspension, or debarment from any federal or state program, or (y) Astellas
becomes aware that any Person under the direction or control of Astellas or its Affiliates is convicted of an offense that would subject Astellas or Zogenix to exclusion, suspension, or debarment from any federal or state program. 

Section 9.3 Product Warranty 
 Zogenix warrants to Astellas that: 
 (a) at the time of delivery of all Product
(excluding Samples delivered to Astellas hereunder) by or on behalf of Zogenix to a Third Party (including any delivery to a 3PL or any delivery by a 3PL on behalf of Zogenix to a wholesaler, other distributor, or retailer), (i) such Product
will be in conformity with the applicable specifications therefor and the NDA; (ii) such Product will have been manufactured in compliance with cGMP, all other applicable Legal Requirements, and this Agreement; (iii) such Product will have
been manufactured in facilities that are in compliance with all applicable Legal Requirements at the time of such manufacture (including applicable inspection requirements of FDA and other Governmental Authorities); (iv) such Product will not
be adulterated or misbranded under the Act; (v) such Product may be introduced into interstate commerce pursuant to the Act; and (vi) the expiration date of such Product shall be no earlier than twelve (12) months after the date of
delivery thereof. 
 (b) at the time of delivery of all Samples to Astellas hereunder, (i) such Samples will be in
conformity with the applicable specifications therefor and the NDA; (ii) such Samples will have been manufactured in compliance with cGMP, all other applicable Legal Requirements, and this Agreement; (iii) such Samples will have been
manufactured in facilities that are in compliance with all applicable Legal Requirements at the time of such manufacture (including applicable inspection requirements of FDA and other Governmental Authorities); (iv) such Samples will not be
adulterated or misbranded under the Act; (v) such Samples may be introduced into interstate commerce pursuant to the Act; and (vi) the expiration date of such Samples shall be no earlier than [***] after the date of delivery thereof (or
such other number of months as may be determined by the unanimous decision of the JSC (and for clarity, any dispute with respect to such number of months may not be escalated pursuant to Section 3.7)). 

 
  

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 Section 9.4 Zogenix Disclaimer 

EXCEPT AS EXPRESSLY PROVIDED HEREIN, ZOGENIX DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, WITH REGARD TO THE PRODUCT, INCLUDING
ANY WARRANTY OF MERCHANTABILITY, ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTY OF NON-INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS. 
 Section 9.5 Astellas Disclaimer 
 EXCEPT AS EXPRESSLY PROVIDED
HEREIN, ASTELLAS DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY, ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTY OF NON-INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS.

 ARTICLE X 
 INTELLECTUAL PROPERTY MATTERS 
 Section 10.1 Intellectual
Property Prosecution and Maintenance 
 Zogenix shall, at its own expense, use commercially reasonable efforts to
prosecute and maintain all Zogenix intellectual property in the Territory (including patents, the Zogenix Trademarks and any copyrights associated with the Promotional Materials) related to the Product or its manufacture, use, or sale. Zogenix shall
keep Astellas promptly informed regarding the ongoing prosecution and maintenance of Zogenix patents to the extent they relate to the Product or its manufacture, use, or sale, including all office actions and notices of allowance. In addition,
Zogenix shall keep Astellas reasonably informed regarding material developments relating to the prosecution, maintenance, or enforcement of Zogenix’s intellectual property rights related to the Product or its manufacture, use, or sale outside
the Territory that could reasonably be expected to have a material impact on Zogenix’s intellectual property rights related to the Product or its manufacture, use, or sale in the Territory. 

Section 10.2 Ownership 
 Zogenix shall own all intellectual property rights in and to the regulatory and clinical data (but not commercial data generated in the course of performance hereunder) or other inventions and
improvements related to the Product, including any such inventions and improvements related to the “DosePro” delivery device incorporated into the Product, in each case conceived or reduced to practice by either Party pursuant to this
Agreement. In addition, during the Term and for a period of two (2) years thereafter, Astellas shall not file, without Zogenix’s prior written consent, any patent application relating to the Product or its manufacture, use, or sale. Each
Party shall own all intellectual property rights with respect to commercial data generated by or on behalf of it in the course of performance hereunder. 
 Section 10.3 Infringement 
 (a) If either Party shall learn of
a claim or assertion that the manufacture, use, or sale of the Product in the Territory infringes or otherwise violates the intellectual property rights of any Third Party or that any Third Party violates the intellectual property rights owned or
Controlled by (i) Zogenix in the Product or the Zogenix Trademarks in the Territory or (ii) Astellas in the Astellas Trademarks, then the Party becoming so informed shall promptly, but in all events within fifteen (15) days thereof,
notify the other Party to this Agreement of the claim or assertion. In the event Zogenix receives a notice under Paragraph IV of the U.S. Federal Drug Price Competition and Patent Term Restoration Act of 1984, as amended, also known as the
Hatch-Waxman Act, with respect to the Product, Zogenix shall provide Astellas with written notice of such Paragraph IV notice within two (2) business days (each, a “Paragraph IV Notice”). 

 

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 (b) In the event of any infringement of Zogenix patent rights related to the Product or its
manufacture, use, or sale, or the Zogenix Trademarks in the Territory, which infringement involves a product that could or does compete with the Product or could adversely affect the Parties’ interests in the Product under this Agreement,
Zogenix shall, in its sole discretion, after considering the advice and comments of Astellas, determine to take the appropriate legal action (an “Enforcement Action”), if any. In the event such an Enforcement Action is initiated,
Zogenix shall use commercially reasonable efforts to prosecute such matter. At Zogenix’s reasonable request, Astellas shall cooperate fully with Zogenix with respect to any such Enforcement Action, and Zogenix shall reimburse Astellas for
its reasonable out-of-pocket expenses incurred in providing such cooperation. Astellas may be represented by counsel of its own selection at its own expense in any such Enforcement Action, but Zogenix shall have the right to control the suit or
proceeding. Any recovery received as a result of any Enforcement Action [***] and any amounts remaining thereafter allocable as compensation for lost sales or profits of the Product shall be shared between the Parties [***] to Astellas and [***] to
Zogenix. 
 (c) In the event of an Enforcement Action by Astellas with respect to any Astellas Trademark, at Astellas’s
reasonable request, Zogenix shall cooperate fully with Astellas with respect to any such Enforcement Action, and Astellas shall reimburse Zogenix for its reasonable out-of-pocket expenses incurred in providing such cooperation. 

ARTICLE XI 

INDEMNIFICATION; LIMITS ON LIABILITY 
 Section 11.1 Indemnification 
 (a) Each Party (each, an
“Indemnifying Party”) shall defend, at its own expense, indemnify, and hold harmless the other Party (the “Indemnified Party”) and its Affiliates, and its and their respective directors, officers, employees, agents,
Sales Representatives, and other representatives (collectively, the “Indemnified Persons” of the Indemnified Party), from and against any and all damages, liabilities, losses, costs, and expenses, including reasonable
attorneys’ fees (“Losses”) arising out of any Third Party claim, suit or proceeding (“Claim”) brought against the Indemnified Party or its Indemnified Persons to the extent such Claim arises out of or relates
to (i) any breach or violation by the Indemnifying Party of, or failure to perform by the Indemnifying Party of, any representation, warranty, covenant, or other obligation in this Agreement, unless waived in writing by the Indemnified Party;
(ii) the negligence or willful misconduct of the Indemnifying Party or any of its Indemnified Persons or its Third Party contractors (including Third Party manufacturers or suppliers); (iii) any violation of applicable Legal Requirements
by the Indemnifying Party or any of its Indemnified Persons or its Third Party contractors (including Third Party manufacturers or suppliers); or (iv) any actions of the Indemnifying Party’s Sales Force or scientific liaisons, including
any false or misleading representations to Professionals, customers, or others regarding the Indemnified Party or the Product; excluding, in each case, ((i), (ii), (iii) and (iv)), any Loss for which the Indemnified Party has an obligation to
indemnify the Indemnifying Party or its Indemnified Persons pursuant to this Section 11.1, as to which Loss each Party shall indemnify the other to the extent of their respective liability for such Loss. 

 
  

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 (b) In addition, Zogenix shall defend, at its own expense, indemnify, and hold harmless
Astellas and its Indemnified Persons, from and against Losses arising out of Claims brought against Astellas or its Indemnified Persons to the extent such Claim arises out of or relates to (i) any claim made by any Person that the manufacture,
use, or sale of the Product infringes or misappropriates the patent, Trademark, or other intellectual property rights of such Person, except with respect to any claim relating to the Astellas Trademarks; (ii) any claim for products liability
with respect to the Product, except to the extent liability is caused by a breach by Astellas of Section 4.1 (as to which Loss each Party shall indemnify the other to the extent of their respective liability for such Loss); (iii) without
limitation of clause (ii), any claim based on death, personal injury, or property damage arising out of the manufacture of the Product by or on behalf of Zogenix (including such manufacture of supply by Third Party manufacturers or suppliers),
except to the extent liability is caused by a breach by Astellas of Section 4.1 (as to which Loss each Party shall indemnify the other to the extent of their respective liability for such Loss); (iv) any decision taken hereunder with
respect to which Zogenix or its officers or representatives had final decision-making authority, including those disputes over the determination of WAC or the amount of Selected Deductions, which disputes are to be resolved pursuant to
Section 3.7, and certain disputes arising out of matters within the jurisdiction of the JPRC, which disputes are to be resolved pursuant to Section 3.7(b); or (v) Zogenix’s use of the Astellas Compliance Materials or
Astellas’s training materials. 
 (c) The Indemnified Party shall promptly notify the Indemnifying Party in writing of any
Claim and shall give the Indemnifying Party full information and assistance in connection therewith. The Indemnifying Party’s obligation to defend, indemnify, and hold harmless any Indemnified Person shall be reduced to the extent the
Indemnified Party’s delay in providing notification pursuant to the previous sentence results in prejudice to the Indemnifying Party. The Indemnifying Party shall have the sole right to control the defense and the sole right to settle or
compromise the Claim, except that the prior written consent of the Indemnified Party shall be required in connection with any settlement or compromise that could (i) place any obligation on or require any action on the part of the Indemnified
Party or its Indemnified Persons, or (ii) admit or imply any liability or wrongdoing on the part of the Indemnified Party or its Indemnified Persons. Notwithstanding the foregoing, the Indemnified Party may participate in such defense
through counsel of its choice, but the cost of such counsel shall be borne solely by the Indemnified Party. 
  

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 Section 11.2 Consequential Damages 

NEITHER ASTELLAS NOR ZOGENIX, NOR THEIR RESPECTIVE AFFILIATES, NOR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, OR AGENTS (OR THE
DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS OF THEIR AFFILIATES) SHALL HAVE ANY LIABILITY TO THE OTHER PARTY (OR TO THE OTHER PARTY’S AFFILIATES OR ITS OR THEIR DIRECTORS, OFFICERS, EMPLOYEES, OR AGENTS) FOR ANY PUNITIVE DAMAGES, SPECIAL,
INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES, RELATING TO OR ARISING FROM THIS AGREEMENT, EVEN IF SUCH DAMAGES MAY HAVE BEEN FORESEEABLE; PROVIDED THAT SUCH LIMITATION SHALL NOT APPLY (A) IN THE CASE OF EITHER PARTY’S
INDEMNIFICATION OBLIGATIONS UNDER SECTION 11.1, OR (B) IN THE CASE OF FRAUD, GROSS NEGLIGENCE, OR WILLFUL MISCONDUCT. 
 ARTICLE XII 
 CONFIDENTIALITY AND PUBLICITY 

Section 12.1 Proprietary Information 
 A Party receiving Proprietary Information from the other, directly or indirectly, will treat such Proprietary Information as confidential, will use such Proprietary Information only for the purposes of
this Agreement, and will not disclose, and will take all reasonable precautions to prevent the disclosure of, such Proprietary Information to (a) any of its Affiliates or its or their officers, directors, managers, equity holders, employees,
agents, representatives, or consultants, except those who reasonably need to know such Proprietary Information in order for such Party to exercise its rights or fulfill its obligations under this Agreement and who are bound by a like obligation of
confidentiality or (b) to Third Parties. 
 Section 12.2 Disclosures Required by Law 

If a Party that is the recipient of Proprietary Information of the other Party is required under applicable Legal Requirements to
disclose such Proprietary Information (a) to any Governmental Authority to obtain any Regulatory Approval for the Product, (b) in connection with bona fide legal process (including in connection with any bona fide dispute hereunder) or
(c) under the rules of the securities exchange upon which its securities are traded, then the recipient Party may do so only if (i) it limits disclosure of the Proprietary Information only to that information required to be disclosed,
(ii) it limits disclosure to that purpose, and (iii) except in the case of clause (b) in circumstances involving a bona fide dispute hereunder, it gives the disclosing Party, if practicable under the circumstances, prompt written
notice of any instance of such a requirement in reasonable time for the disclosing Party to attempt to object to or to limit such disclosure. With respect to disclosures required under applicable Legal Requirements, the recipient Party shall
cooperate with the disclosing Party as reasonably requested thereby, consistent with such Legal Requirements. 

Section 12.3 Publicity 
 The Parties have agreed upon the form and content of a joint press release to be issued by the Parties promptly following the execution of this Agreement. Once such press release or any other written
statement is approved for disclosure by both Parties, either Party may make subsequent public disclosure of the contents of such statement (if such contents remain accurate and not misleading) without the further approval of the other Party. Any
other publicity, news release, public comment or other public announcement, whether to the press, to stockholders, or otherwise, relating to this Agreement, including activities conducted hereunder, shall first be reviewed and approved by both
Parties, except no such approval shall be required for such publicity, news release, public comment or other public announcement which, in accordance with the advice of legal counsel to the Party making such disclosure, is required by law or for
appropriate market disclosure. Notwithstanding the foregoing, each Party shall be entitled to refer publicly to the relationship of the Parties reflected in this Agreement (i.e., Zogenix as the developer of the Product and Astellas as the
co-promoter of the Product in the Territory) in a manner that is consistent with the joint press release issued by the Parties. For clarity, any Party making any announcement which is required by law will, unless prohibited by law, give the other
Party an opportunity to review the form and content of such announcement and comment before it is made. The Parties shall work together to coordinate filings with governmental agencies, including the United States Securities and Exchange Commission,
as to the contents and existence of this Agreement as the Parties shall reasonably deem necessary or appropriate, and each Party shall provide the other Party an opportunity to comment on any proposed filings, including redactions proposed thereto.

  

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 Section 12.4 Survival 

The provisions of this Article XII shall survive termination of this Agreement and shall remain in effect until a date [***] after the
expiration or termination of this Agreement. 
 ARTICLE XIII 

NOTICES 

Section 13.1 Notices 
 Subject to Section 3.6(e) (governing certain communications relating to the day-to-day business of a Committee), all notices required or permitted hereunder shall be given in writing and sent by
facsimile transmission (with a copy sent by first-class mail), mailed postage prepaid by certified or registered mail (return receipt requested), sent by a nationally recognized express courier service, or hand-delivered at the addresses below:

 If to Zogenix: 
 Zogenix, Inc. 
 12671 High Bluff Drive 

Suite 200 
 San
Diego, CA 92130 
 Attention: General Counsel 
 Fax No: (858) 259-1166 
  

 

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 With a copy to (which shall not constitute notice hereunder): 

Latham & Watkins LLP 
 12636 High Bluff Drive 
 Suite 400 

San Diego, CA 92130 
 Attention: Faye H. Russell 
 Fax No: (858) 523-5450 

If to Astellas: 

Astellas Pharma US, Inc. 
 Three Parkway North 
 Deerfield, IL 60015 

Attention: Senior Vice President, Marketing and Sales 
 Fax No: (847) 317-7297 
 With a copy to (which shall not constitute notice
hereunder): 
 Astellas US LLC 
 Three Parkway North 
 Deerfield, IL 60015 

Attention: Senior Vice President, General Counsel and Secretary 
 Fax No: (847) 317-7288 
 All notices shall be deemed made upon receipt by the
addressee as evidenced by the applicable written receipt. 
 ARTICLE XIV 

INSURANCE 

Section 14.1 Insurance 
 (a) During the Term and for a period of ten (10) years after any expiration or termination of this Agreement, each Party shall obtain and maintain at its own expense from an insurance company rated
A(XIII) or better by A.M. Best or an equivalent rating from Standard & Poor’s (i) a commercial general liability insurance policy or policies with minimum limits of [***] and [***] on an annual basis, and (ii) a product
liability insurance policy or policies with minimum limits of [***] and [***] on an annual basis. Such policies shall include protection against claims, demands, and causes of action arising out of any defects or failure to perform, alleged or
otherwise, of the Product or any material used in connection therewith or any use thereof. Notwithstanding the foregoing, either Party may satisfy its obligations under this Section 14.1, in whole or in part, through a program of
self-insurance; provided that (x) any such program of self-insurance shall be established through a captive insurance company duly established and properly maintained under the laws of the jurisdiction of formation, and (y) at the
request of the other Party, such Party shall provide reasonably satisfactory evidence of its compliance with clause (x). 
  

 

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 (b) Each Party shall furnish within thirty (30) Business Days after the Effective
Date, and upon each policy renewal thereafter or at the request of the other Party, a certificate of insurance evidencing that such insurance is in effect. Each Party will provide the other Party thirty (30) days’ prior written notice of
cancellation, non-renewal, or material change in the insurance required by this Agreement. Neither Party’s liability to the other is in any way limited to the extent of its insurance coverage. 

ARTICLE XV 

MISCELLANEOUS 
 Section 15.1 Arbitration 
 Any dispute which has not been
resolved as set forth in Section 3.7 or any other dispute arising between the Parties hereunder shall be settled by binding arbitration in accordance with the Judicial Arbitration and Mediation Services (“JAMS”) Comprehensive
Arbitration Rules and Procedures, as such rules may be modified by this Section 15.1 or by agreement of the Parties. The Parties shall mutually select a single independent, conflict-free arbitrator, who shall have sufficient background and
experience to resolve the matter in dispute. If the Parties are unable to reach agreement on the selection of the arbitrator within [***] after submission to arbitration, then either or both Parties shall immediately request JAMS to select an
arbitrator with the requisite background, experience and expertise. Notwithstanding the applicable JAMS rules, (i) the arbitrator shall resolve the dispute as expeditiously as reasonably possible, and in any event no later than [***] following
referral of the dispute to the arbitrator (or, in the case of disputes relating to Volume Forecasts referred pursuant to Section 6.2(f), no later than [***] following such referral); and (ii) the arbitrator shall resolve the dispute in a
manner that is fair and reasonable to the Parties in light of the totality of the circumstances and the terms of this Agreement. The place of arbitration shall be New York, New York, and all proceedings and communications shall be in English. Either
Party may apply to the arbitrator for interim injunctive relief or may seek from any court having jurisdiction any injunctive or provisional relief necessary to protect the rights or property of that Party pending resolution of the matter pursuant
to this Section 15.1. The Parties shall have the right to be represented by counsel. Any judgment or award rendered by the arbitrator shall be final and binding on the Parties, and shall be governed by the terms and conditions hereof, including
the limitation on damages set forth in Section 11.2. The Parties agree that such a judgment or award may be enforced in any court of competent jurisdiction. The statute of limitations of the State of New York applicable to the commencement of a
lawsuit shall apply to the commencement of arbitration under this Section 15.1. Each Party shall bear its own costs and expenses and attorneys’ fees, and, unless otherwise agreed by the Parties or determined by the arbitrator, the Party
that does not prevail in the arbitration proceeding shall pay the arbitrator’s fees and any administrative fees of arbitration; provided that it is the intent of the Parties with respect to any dispute relating to Volume Forecasts
referred to the arbitrator pursuant to Section 6.2(f) that the arbitrator shall award to the prevailing party its costs, expenses, and attorneys’ fees (in addition to the arbitrator’s fees and the administrative fees of arbitration).
All proceedings and decisions of the arbitrator(s) shall be deemed Proprietary Information of each of the Parties, and shall be subject to Article XII. For the avoidance of doubt, disputes arising on issues within the jurisdiction of a Committee
shall be resolved in accordance with the procedures set forth in Section 3.7. 
  

 

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 Section 15.2 Headings 

The titles, headings or captions and paragraphs in this Agreement are for convenience only and do not define, limit, extend, explain, or
describe the scope or extent of this Agreement or any of its terms or conditions and therefore shall not be considered in the interpretation, construction, or application of this Agreement. 

Section 15.3 Severability 
 In the event that any of the provisions or a portion of any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction or a Governmental Authority,
such provision or portion thereof will be construed and enforced as if it had been narrowly drawn so as not to be invalid, illegal, or unenforceable, and the validity, legality, and enforceability of the enforceable portion of any such provision and
the remaining provisions will not be adversely affected thereby. 
 Section 15.4 Entire Agreement 

This Agreement, together with the schedules and exhibits hereto, the Initial Commercial Plan, the Initial Base Brand A&P Budget, and
the test plan referred to in Section 7.1(b)(ii), all of which are incorporated by reference, contains all of the terms agreed to by the Parties regarding the subject matter hereof and supersedes any prior agreements, understandings, or
arrangements between them, whether oral or in writing. For the avoidance of doubt, (a) that certain Letter Agreement between the Parties dated June 25, 2009, as amended (the “Letter Agreement”), remains in full force and
effect through the Exclusivity Period (as defined in the Letter Agreement), but solely with respect to Section 3 (“Exclusivity Related to Hydrocodone CR”) and other Sections of the Letter Agreement to the extent relating to a
potential Hydrocodone Transaction (as defined in the Letter Agreement), and the negotiations and discussions related thereto; and (b) the Confidentiality Agreement remains in full force and effect with respect to negotiations and discussions
related to a potential Hydrocodone Transaction, but is superseded with respect to the subject matter hereof. 

Section 15.5 Amendments 
 This Agreement may not be amended, modified, altered, or supplemented except by means of a written agreement or other instrument executed by both of the Parties hereto. No course of conduct or
dealing between the Parties will act as a modification or waiver of any provisions of this Agreement. 
  

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 Section 15.6 Counterparts 

This Agreement may be executed in any number of counterparts, each of which will be deemed an original as against the Party whose
signature appears thereon, but all of which taken together will constitute but one and the same instrument. 
 Section 15.7
Waiver 
 The failure of either Party to enforce or to exercise, at any time or for any period of time, any term
of or any right arising pursuant to this Agreement does not constitute, and will not be construed as, a waiver of such term or right, and will in no way affect that Party’s right later to enforce or exercise such term or right. 

Section 15.8 Force Majeure 
 (a) In the event of any failure or delay in the performance by a Party of any obligation under this Agreement due to events beyond the reasonable control of such Party (such as, for example, fire,
explosion, strike, inability to obtain transportation, fuel, or power, accident, act of God, declared or undeclared wars, or acts of terrorism) (a “Force Majeure Event”), then such Party shall have such additional time to perform as
shall be reasonably necessary under the circumstances. For clarity, a Force Majeure Event shall not include a failure to commit sufficient resources, financial or otherwise, to the performance of obligations under this Agreement or general
market or economic conditions not accompanied by circumstances described in the first sentence of this Section 15.8(a). In the event of such failure or delay, the affected Party will use its diligent efforts, consistent with sound business
judgment and to the extent permitted by Legal Requirements, to correct and mitigate such failure or delay as expeditiously as possible. In the event that a Party is unable to perform by a reason described in this Section 15.8, its
obligation to perform under the affected provision of this Agreement shall be suspended during such time of nonperformance. 

(b) Neither Party shall be liable hereunder to the other Party nor shall be in breach for failure to perform its obligations caused by a
Force Majeure Event except as otherwise set forth in this Agreement. In the case of any such Force Majeure Event, the affected Party shall promptly, but in no event later than [***] after its occurrence, notify the other Party stating the
nature of the condition, its anticipated duration, and any action being taken to avoid or minimize its effect. Furthermore, the affected Party shall keep the other Party informed of the efforts to resume performance. After [***] of such
inability to perform, the Parties shall meet and discuss in good faith how to proceed. In the event that the affected Party is prevented from performing its obligations pursuant to this Section 15.8 for a period of [***] (which period of
time shall include the [***] following which the Parties are to meet pursuant to the previous sentence), the other Party shall have the right to terminate this Agreement pursuant to the provisions of Sections 8.3. 

 
  

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 Section 15.9 Successors and Assigns 

Subject to Section 15.10, this Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their
respective successors and assigns permitted under this Agreement. 
 Section 15.10 Assignment 

(a) This Agreement and the rights granted herein shall not be assignable (or otherwise transferred) by either Party hereto without the
prior written consent of the other Party. Any attempted assignment without consent shall be void. Notwithstanding the foregoing, a Party may transfer, assign or delegate its rights and obligations under this Agreement without consent to
(i) an Affiliate reasonably capable of performing such Party’s obligations under this Agreement, or (ii) a successor to all or substantially all of its business or assets of the assigning Party to which this Agreement relates, whether
by sale, merger, consolidation, acquisition, transfer, operation of law or otherwise. [***]. For the avoidance of doubt, prior to or following any such assignment in connection with a Zogenix Change of Control, Astellas shall have the right to
terminate this Agreement pursuant to and in accordance with Section 8.2(a)(v). 
 (b) In connection with (i) any
assignment pursuant to this Section 15.10 of this Agreement or any of the rights granted herein, or (ii) with any subcontract permitted hereunder, the assignor or Party subcontracting shall ensure that the assignee or subcontractor
represents and warrants the matters set forth (x) in Sections 9.1(h) and 9.1(i) (in substantially the same form as set forth in Sections 9.1(h) and 9.1(i)) where Zogenix (or one of its successors or assigns) is the assignor or subcontracting
Party, or (y) in Sections 9.2(g) and 9.2(h) (in substantially the same form as set forth in Sections 9.2(g) and 9.2(h)), where Astellas (or one of its successors or assigns) is the assignor or subcontracting Party. Neither Party shall
engage any Third Party appearing on the FDA’s debarment list or the list of excluded individuals/entities of the Office of Inspector General of the Department of Health and Human Services to perform, or assist such Party in the performance of,
its obligations under this Agreement, and each Party shall review each such list prior to so engaging any Third Party. 

Section 15.11 Construction 
 The Parties acknowledge and agree that: (a) each Party and its representatives have reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision; and
(b) the terms and provisions of this Agreement will be construed fairly as to each Party hereto and not in favor of or against either Party regardless of which Party was generally responsible for the preparation or drafting of this
Agreement. Unless the context of this Agreement otherwise requires: (i) words of any gender include each other gender; (ii) words using the singular or plural number also include the plural or singular number, respectively;
(iii) the terms “hereof,” “herein,” “hereby,” and derivative or similar words refer to this entire Agreement; (iv) the terms “Article,” “Section,” “Exhibit,” “Schedule,”
or “clause” refer to the specified Article, Section, Exhibit, Schedule, or clause of this Agreement; (v) “or” means “and/or;” and (vi) the term “including” or “includes” means
“including without limitation” or “includes without limitation.” Whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified. 

 
  

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 Section 15.12 Governing Law 

This Agreement will be construed under and in accordance with, and governed in all respects by, the laws of the State of New York,
without regard to its conflicts of law principles. 
 Section 15.13 Equitable Relief 

Each Party acknowledges that a breach by it of its obligations under Sections 2.3, 2.4, and 2.6, and Article XII may not reasonably or
adequately be compensated in damages in an action at law, and that such a breach may cause the other Party irreparable injury and damage. By reason thereof, each Party agrees that the other Party is entitled to seek, in addition to any other
remedies it may have under this Agreement or otherwise, preliminary and permanent injunctive and other equitable relief to prevent or curtail any breach of such Sections and Articles of this Agreement by the other Party; provided, however,
that no specification in this Agreement of a specific legal or equitable remedy will be construed as a waiver or prohibition against the pursuing of other legal or equitable remedies in the event of such a breach. Each Party agrees that the
existence of any claim, demand, or cause of action of it against the other Party, whether predicated upon this Agreement, or otherwise, will not constitute a defense to the enforcement by the other Party, or its successors or assigns, of the
covenants contained in this Agreement. 
 Section 15.14 Relationship Between Parties 

The Parties hereto are acting and performing as independent contractors, and nothing in this Agreement creates the relationship of
partnership, joint venture, sales agency, or principal and agent. Neither Party is the agent of the other, and neither Party may hold itself out as such to any other Person. All financial obligations associated with each Party’s
business will be the sole responsibility of such Party. 
 [Signature page follows] 

 

 66 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in duplicate on the day and year
first above written. 
  

			
	ZOGENIX, INC.
	
	 /s/ Roger Hawley

	By:	 	Roger Hawley
	Its:	 	CEO
	
	ASTELLAS PHARMA US, INC.
	
	 /s/ Seigo Kashii

	By:	 	Seigo Kashii
	Its:	 	President and CEO

  

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 Schedule 1.19 
 Primary Specialty Classifications of Professionals in the Astellas Segment 
 [***]

  
  

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 Schedule 
 Post-Effective Date Expenses 
  

			
	 Expenses
	 	 Allocation

	[***]	 	Each Party to pay [***] of the costs and expenses of the study [***].
	[***]	 	Each Party to pay [***] of the costs and expenses of the work[***].

 

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 Schedule 
 Primary Specialty Classifications of Neurologist Professionals in the Zogenix Segment 
  

			
	N	  	[***]
	CN	  	[***]

  

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