Document:

Executive Officer Employment Agreement

 Exhibit 10.7 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into by and between Zogenix, Inc., a Delaware corporation (the
“Company”), and Ann Rhoads (“Executive”), and shall be effective as of March 1, 2010 (the “Effective Date”). 

WHEREAS, the Company desires to continue to employ Executive, and Executive desires to continue employment with the Company, on the terms
and conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the mutual promises herein contained, the
parties agree as follows: 
 1. Definitions. As used in this Agreement, the following terms shall have the following
meanings: 
 (a) Board. “Board” means the Board of Directors of the Company. 

(b) Bonus. “Bonus” means an amount equal to the average of the bonuses awarded to Executive for each of the three
(3) fiscal years prior to the date of Executive’s termination of employment, or such lesser number of years as may be applicable if Executive has not been employed for three (3) full years on the date of Executive’s termination
of employment. For purposes of determining Executive’s “Bonus,” to the extent Executive received no bonus in a year due to a failure to meet the applicable performance objectives, such year will still be taken into account (using zero
(0) as the applicable bonus) in determining Executive’s “Bonus” for purposes of Section 4. Further, for any year in which the Executive received less than the Executive’s maximum potential bonus because the
Executive’s employment with the Company began after January 1 of that year, the bonus for that year shall be annualized as part of the Bonus calculation hereunder. If any portion of the bonuses awarded to Executive consisted of securities
or other property, the fair market value thereof shall be determined in good faith by the Board. 
 (c) California WARN
Act. “California WARN Act” means California Labor Code Sections 1400 et seq. 
 (d) Cause.
“Cause” means any of the following: 
 (i) the commission of an act of fraud, embezzlement or dishonesty by
Executive, or the commission of some other illegal act by Executive, that has a material adverse impact on the Company or any successor or affiliate thereof; 

(ii) a conviction of, or plea of “guilty” or “no contest” to, a felony by Executive; 

(iii) any unauthorized use or disclosure by Executive of confidential information or trade secrets of the Company or any successor or
affiliate thereof that has, or may reasonably be expected to have, a material adverse impact on any such entity; 

 (iv) Executive’s gross negligence, insubordination or material violation of any duty
of loyalty to the Company or any successor or affiliate thereof, or any other material misconduct on the part of Executive; 

(v) Executive’s ongoing and repeated failure or refusal to perform or neglect of Executive’s duties as required by this
Agreement, which failure, refusal or neglect continues for fifteen (15) days following Executive’s receipt of written notice from the Board or the Company’s Chief Executive Officer (the “CEO”) stating with specificity
the nature of such failure, refusal or neglect; or 
 (vi) Executive’s breach of any Company policy or any material
provision of this Agreement; 
 provided, however, that prior to the determination that “Cause” under this
Section 1(d) has occurred, the Company shall (A) provide to Executive in writing, in reasonable detail, the reasons for the determination that such “Cause” exists, (B) other than with respect to clause (v) above which
specifies the applicable period of time for Executive to remedy his or her breach, afford Executive a reasonable opportunity to remedy any such breach, (C) provide the Executive an opportunity to be heard prior to the final decision to
terminate the Executive’s employment hereunder for such “Cause” and (D) make any decision that such “Cause” exists in good faith. 

The foregoing definition shall not in any way preclude or restrict the right of the Company or any successor or affiliate thereof to
discharge or dismiss Executive for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of this Agreement, to constitute grounds for termination for Cause. 

(e) Change in Control. “Change in Control” means and includes each of the following: 

(i) a transaction or series of transactions (other than an offering of the Company’s common stock to the general public through a
registration statement filed with the Securities and Exchange Commission) whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”)) (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its subsidiaries or a “person” that, prior to such transaction, directly
or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act), of securities of the Company possessing more than
fifty percent (50%) of the total combined voting power of the Company’s securities outstanding immediately after such acquisition; or 
  

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 (ii) the consummation by the Company (whether directly involving the Company or indirectly
involving the Company through one or more intermediaries) of (A) a merger, consolidation, reorganization, or business combination or (B) a sale or other disposition of all or substantially all of the Company’s assets in any single
transaction or series of related transactions or (C) the acquisition of assets or stock of another entity, in each case other than a transaction: 

(1) which results in the Company’s voting securities outstanding immediately before the transaction continuing to
represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or
substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”) directly or indirectly, at least a majority of the combined voting power of the
Successor Entity’s outstanding voting securities immediately after the transaction, and 
 (2) after which
no person or group beneficially owns voting securities representing fifty percent (50%) or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this
clause (2) as beneficially owning fifty percent (50%) or more of combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction. 

Notwithstanding the foregoing, a transaction shall not constitute a “Change in Control” if: (i) its sole purpose is
to change the state of the Company’s incorporation; (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such
transaction; (iii) it constitutes the Company’s initial public offering of its securities; or (iv) it is a transaction effected primarily for the purpose of financing the Company with cash (as determined by the Board in its discretion
and without regard to whether such transaction is effectuated by a merger, equity financing or otherwise). The Board shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in
Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change in Control and any incidental matters thereto. 

(f) Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the Treasury
Regulations and other interpretive guidance issued thereunder. 
 (g) Good Reason. “Good Reason” means
the occurrence of any of the following events or conditions without Executive’s written consent: 
 (i) a material
diminution in Executive’s authority, duties or responsibilities; 
 (ii) a material diminution in Executive’s base
compensation, unless such a reduction is imposed across-the-board to senior management of the Company; 
 (iii) a material
change in the geographic location at which Executive must perform his or her duties; or 
 (iv) any other action or inaction
that constitutes a material breach by the Company or any successor or affiliate of its obligations to Executive under this Agreement. 
  

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 Executive must provide written notice to the Company of the occurrence of any of the
foregoing events or conditions without Executive’s written consent within ninety (90) days of the occurrence of such event. The Company or any successor or affiliate shall have a period of thirty (30) days to cure such event or
condition after receipt of written notice of such event from Executive. 
 (h) Involuntary Termination.
“Involuntary Termination” means (i) the Executive’s Separation from Service by reason of Executive’s discharge by the Company other than for Cause, or (ii) the Executive’s Separation from Service by reason
of Executive’s resignation of employment with the Company for Good Reason. Executive’s Separation from Service by reason of Executive’s death or discharge by the Company following Executive’s Permanent Disability shall not
constitute an Involuntary Termination. The Executive’s Separation from Service by reason of resignation from employment with the Company for Good Reason shall be an “Involuntary Termination” only if such Separation from Service occurs
within two (2) years following the initial existence of the act or failure to act constituting Good Reason. The Executive’s Separation from Service by reason of resignation from employment with the Company for Good Reason shall be treated
as involuntary. 
 (i) Permanent Disability. Executive’s “Permanent Disability” shall be deemed to
have occurred if Executive shall become physically or mentally incapacitated or disabled or otherwise unable fully to discharge his or her duties hereunder for a period of ninety (90) consecutive calendar days or for one hundred twenty
(120) calendar days in any one hundred eighty (180) calendar-day period. The existence of Executive’s Permanent Disability shall be determined by the Company on the advice of a physician chosen by the Company and the Company reserves
the right to have the Executive examined by a physician chosen by the Company at the Company’s expense. 
 (j)
Separation from Service. “Separation from Service,” with respect to the Executive, means the Executive’s “separation from service,” as defined in Treasury Regulation Section 1.409A-1(h). 

(k) Stock Awards. “Stock Awards” means all stock options, restricted stock and such other awards granted pursuant
to the Company’s stock option and equity incentive award plans or agreements and any shares of stock issued upon exercise thereof. 

(l) WARN Act. “WARN Act” shall mean the Worker Adjustment and Retraining Notification Act, 29 U.S.C. Sections
2101 et seq., and the Department of Labor regulations thereunder. 
 2. Services to Be Rendered. 

(a) Duties and Responsibilities. Executive shall serve as Executive Vice President and Chief Financial Officer of the Company. In
the performance of such duties, Executive shall report directly to the CEO and shall be subject to the direction of the CEO and to such limits upon Executive’s authority as the CEO may from time to time impose. In the event of the CEO’s
incapacity or unavailability, Executive shall be subject to the direction of the Board. Executive hereby consents to serve as an officer and/or director of the Company or 

 

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any subsidiary or affiliate thereof without any additional salary or compensation, if so requested by the CEO. Executive shall be employed by the Company on a full time basis. Executive’s
primary place of work shall be the Company’s facility in San Diego, California, or such other location within San Diego County as may be designated by the CEO from time to time. Executive shall also render services at such other places within
or outside the United States as the CEO may direct from time to time. Executive shall be subject to and comply with the policies and procedures generally applicable to senior executives of the Company to the extent the same are not inconsistent with
any term of this Agreement. 
 (b) Exclusive Services. Executive shall at all times faithfully, industriously and to the
best of his or her ability, experience and talent perform to the satisfaction of the Board and the CEO all of the duties that may be assigned to Executive hereunder and shall devote substantially all of his or her productive time and efforts to the
performance of such duties. Subject to the terms of the Employee Proprietary Information and Inventions Agreement referred to in Section 5(b), this shall not preclude Executive from devoting time to personal and family investments or serving on
community and civic boards, or participating in industry associations, provided such activities do not interfere with his or her duties to the Company, as determined in good faith by the CEO. Executive agrees that he or she will not join any boards,
other than community and civic boards (which do not interfere with his or her duties to the Company), without the prior approval of the CEO. 

3. Compensation and Benefits. The Company shall pay or provide, as the case may be, to Executive the compensation and other
benefits and rights set forth in this Section 3. 
 (a) Base Salary. The Company shall pay to Executive a base
salary of $325,000 per year, payable in accordance with the Company’s usual pay practices (and in any event no less frequently than monthly). Executive’s base salary shall be subject to review annually by and at the sole discretion of the
Compensation Committee of the Board or its designee. 
 (b) Bonus. Executive shall participate in any bonus plan that the
Board or its designee may approve for the senior executives of the Company. 
 (c) Benefits. Executive shall be entitled
to participate in benefits under the Company’s benefit plans and arrangements, including, without limitation, any employee benefit plan or arrangement made available in the future by the Company to its senior executives, subject to and on a
basis consistent with the terms, conditions and overall administration of such plans and arrangements. The Company shall have the right to amend or delete any such benefit plan or arrangement made available by the Company to its senior executives
and not otherwise specifically provided for herein; provided, that any reduction of Executive’s benefits such that Executive’s benefits are, in the aggregate, materially less favorable to Executive than those benefits offered to
Executive as of the Effective Date shall be considered a material breach of this Agreement by the Company. 
 (d)
Expenses. The Company shall reimburse Executive for reasonable out-of-pocket business expenses incurred in connection with the performance of his or her duties hereunder, subject to (i) such policies as the Company may from time to time
establish, 
  

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(ii) Executive furnishing the Company with evidence in the form of receipts satisfactory to the Company substantiating the claimed expenditures, (iii) Executive receiving advance
approval from the CEO in the case of expenses for travel outside of North America, and (iv) Executive receiving advance approval from the CEO in the case of expenses (or a series of related expenses) in excess of $5,000. Any amounts payable
under this Section 3(d) shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv) and shall be paid on or before the last day of Executive’s taxable year following the taxable year in which Executive incurred the
expenses. The amounts provided under this Section 3(d) during any taxable year of Executive’s will not affect such amounts provided in any other taxable year of Executive’s, and Executive’s right to reimbursement for such amounts
shall not be subject to liquidation or exchange for any other benefit. 
 (e) Paid Time Off. Executive shall be entitled
to such periods of paid time off (“PTO”) each year as provided from time to time under the Company’s PTO policy and as otherwise provided for senior executive officers. 

(f) Equity Plans. Executive shall be entitled to participate in any equity or other employee benefit plan that is generally
available to senior executive officers, as distinguished from general management, of the Company. Except as otherwise provided in this Agreement, Executive’s participation in and benefits under any such plan shall be on the terms and subject to
the conditions specified in the governing document of the particular plan. 
 (g) Stock Award Acceleration. 

(i) In the event of a Change in Control, the vesting and exercisability of fifty percent (50%) of Executive’s outstanding
unvested Stock Awards shall be automatically accelerated effective immediately prior to the consummation of such Change in Control. 

(ii) In the event of Executive’s Involuntary Termination or Executive’s Separation from Service by reason of Executive’s
death or discharge by the Company following Executive’s Permanent Disability, the vesting and/or exercisability of each of Executive’s outstanding unvested Stock Awards shall be automatically accelerated on the date of Executive’s
Separation from Service as to the number of Stock Awards that would vest over the twelve (12) month period following the date of Executive’s Separation from Service had Executive remained continuously employed by the Company during such
period. 
 (iii) In the event of Executive’s Involuntary Termination within three (3) months prior to or twelve
(12) months following a Change in Control, the vesting and/or exercisability of any outstanding unvested portions of such Stock Awards shall be automatically accelerated on the later of (A) the date of Executive’s Separation from
Service and (B) the date of the Change in Control. In addition, with respect to Stock Awards granted to Executive on or after the Effective Date, such Stock Awards may be exercised by Executive (or Executive’s legal guardian or legal
representative) until the latest of (A) three (3) months after the date of Executive’s Separation from Service, (B) with respect to any portion of the Stock Awards that become exercisable on the date of a Change in Control
pursuant to this Section 3(g)(iii), three (3) months after the date of the Change in Control, or (C) such longer period as 

 

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may be specified in the applicable Stock Award agreement; provided, however, that in no event shall any Stock Award remain exercisable beyond the original outside expiration date of
such Stock Award. 
 (iv) The vesting pursuant to clauses (i), (ii) and (iii) of this Section 3(g) shall be
cumulative. The foregoing provisions are hereby deemed to be a part of each Stock Award and to supersede any less favorable provision in any agreement or plan regarding such Stock Award. 

4. Severance. Executive shall be entitled to receive benefits upon a Separation from Service only as set forth in this
Section 4: 
 (a) At-Will Employment; Termination. The Company and Executive acknowledge that Executive’s
employment is and shall continue to be at-will, as defined under applicable law, and that Executive’s employment with the Company may be terminated by either party at any time for any or no reason, with or without notice. If Executive’s
employment terminates for any reason, Executive shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided in this Agreement. Executive’s employment under this Agreement shall be terminated
immediately on the death of Executive. 
 (b) Separation from Service by Death or Following Permanent Disability. Subject
to Sections 4(e) and 9(o) and Executive’s continued compliance with Section 5, in the event of Executive’s Separation from Service as a result of Executive’s death or discharge by the Company following Executive’s Permanent
Disability, Executive or Executive’s estate, as applicable, shall be entitled to receive, in lieu of any severance benefits to which Executive or Executive’s estate may otherwise be entitled under any severance plan or program of the
Company, the benefits provided below, which, with respect to clause (ii) and the last sentence of clause (iii) below, will be payable in a lump sum within ten (10) days following the effective date of Executive’s Release (or, in
the event of Executive’s death, within ten (10) days following the date of Executive’s death): 
 (i) the
Company shall pay to Executive or Executive’s estate, as applicable, Executive’s fully earned but unpaid base salary, when due, through the date of Executive’s Separation from Service at the rate then in effect, plus all other
benefits, if any, under any Company group retirement plan, nonqualified deferred compensation plan, equity award plan or agreement (other than any such plan or agreement pertaining to Stock Awards whose treatment is prescribed by Section 3(g)
above), health benefits plan or other Company group benefit plan to which Executive or Executive’s estate may be entitled pursuant to the terms of such plans or agreements at the time of Executive’s Separation from Service; 

(ii) Executive or Executive’s estate, as applicable, shall be entitled to receive severance pay in an amount equal to twelve
(12) multiplied by Executive’s monthly base salary as in effect immediately prior to the date of Executive’s Separation from Service; and 

(iii) for the period beginning on the date of Executive’s Separation from Service and ending on the date which is twelve
(12) full months following the date of 
  

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Executive’s Separation from Service (or, if earlier, the date on which the applicable continuation period under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”) expires), the Company shall arrange to provide Executive (in the case of Executive’s Separation of Service as a result of discharge by the Company following Executive’s Permanent Disability) and/or his or her
eligible dependents who were covered under the Company’s health insurance plans as of the date of Executive’s Separation from Service with health (including medical and dental) insurance benefits substantially similar to those provided to
Executive and his or her dependents immediately prior to the date of such Separation from Service. If any of the Company’s health benefits are self-funded as of the date of Executive’s Separation from Service, instead of providing
continued health insurance benefits as set forth above, the Company shall instead pay to Executive or Executive’s estate, as applicable, an amount equal to twelve (12) multiplied by the monthly premium Executive or his or her dependents
would be required to pay for continuation coverage pursuant to COBRA for Executive (if applicable) and his or her eligible dependents who were covered under the Company’s health plans as of the date of Executive’s Separation from Service
(calculated by reference to the premium as of the date of Executive’s Separation from Service). 
 (c) Severance Upon
Involuntary Termination. Subject to Sections 4(e) and 9(o) and Executive’s continued compliance with Section 5, if Executive’s employment is Involuntarily Terminated, Executive shall be entitled to receive, in lieu of any
severance benefits to which Executive may otherwise be entitled under any severance plan or program of the Company, the benefits provided below, which, with respect to clause (ii) and the last sentence of clause (iii) (if applicable) will
be payable in a lump sum within ten (10) days following the effective date of Executive’s Release: 
 (i) the Company
shall pay to Executive his or her fully earned but unpaid base salary, when due, through the date of Executive’s Involuntary Termination at the rate then in effect, plus all other benefits, if any, under any Company group retirement plan,
nonqualified deferred compensation plan, equity award plan or agreement (other than any such plan or agreement pertaining to Stock Awards whose treatment is prescribed by Section 3(g) above), health benefits plan or other Company group benefit
plan to which Executive may be entitled pursuant to the terms of such plans or agreements at the time of Executive’s Involuntary Termination; 

(ii) Executive shall be entitled to receive severance pay in an amount equal to twelve (12) multiplied by Executive’s monthly
base salary as in effect immediately prior to the date of Executive’s Involuntary Termination; and 
 (iii) for the period
beginning on the date of Executive’s Involuntary Termination and ending on the date which is twelve (12) full months following the date of Executive’s Involuntary Termination (or, if earlier, the date on which the applicable
continuation period under COBRA expires), the Company shall arrange to provide Executive and his or her eligible dependents who were covered under the Company’s health insurance plans as of the date of Executive’s Involuntary Termination
with health (including medical and dental) insurance benefits substantially similar to those provided to Executive and his or her dependents immediately prior to the date of such Involuntary Termination. If any of the Company’s health benefits
are self-funded as of the date of Executive’s Involuntary Termination, instead of 
  

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providing continued health insurance benefits as set forth above, the Company shall instead pay to Executive an amount equal to twelve (12) multiplied by the monthly premium Executive would
be required to pay for continuation coverage pursuant to COBRA for Executive and his or her eligible dependents who were covered under the Company’s health plans as of the date of Executive’s Involuntary Termination (calculated by
reference to the premium as of the date of Involuntary Termination). 
 (iv) Notwithstanding anything to the contrary in this
Section 4(c), and subject to Sections 4(e) and 9(o) and Executive’s continued compliance with Section 5, in the event of Executive’s Involuntary Termination during the period commencing sixty (60) days prior to a Change in
Control or twelve (12) months following a Change in Control, Executive shall be entitled to receive, in addition to the severance benefits described in clauses (i), (ii) and (iii) above, an amount equal to Executive’s Bonus for
the year in which Executive’s Involuntary Termination occurs, which amount shall be payable in a lump sum within ten (10) days following the later of (A) the effective date of Executive’s Release and (B) the date of the
Change in Control. 
 (d) Termination for Cause or Voluntary Resignation Without Good Reason. In the event of
Executive’s termination of employment as a result of Executive’s discharge by the Company for Cause or Executive’s resignation without Good Reason (other than as a result of Executive’s death or Separation of Service by reason of
discharge by the Company following Executive’s Permanent Disability), the Company shall not have any other or further obligations to Executive under this Agreement (including any financial obligations) except that Executive shall be entitled to
receive (i) Executive’s fully earned but unpaid base salary, through the date of termination at the rate then in effect, and (ii) all other amounts or benefits to which Executive is entitled under any compensation, retirement or
benefit plan or practice of the Company at the time of termination in accordance with the terms of such plans or practices, including, without limitation, any continuation of benefits required by COBRA or applicable law. In addition, in the event of
Executive’s Separation from Service as a result of Executive’s discharge by the Company for Cause or Executive’s resignation without Good Reason (other than as a result of Executive’s death or Separation of Service by reason of
discharge by the Company following Executive’s Permanent Disability), all vesting of Executive’s unvested Stock Awards previously granted to him or her by the Company shall cease and none of such unvested Stock Awards shall be exercisable
following the date of such termination. The foregoing shall be in addition to, and not in lieu of, any and all other rights and remedies which may be available to the Company under the circumstances, whether at law or in equity. 

(e) Release. As a condition to Executive’s receipt of any post-termination benefits pursuant to Sections 4(b) and
(c) above, Executive shall execute and not revoke a general release of all claims in favor of the Company (the “Release”) in the form attached hereto as Exhibit A. In the event Executive’s Release does not become
effective within the fifty (50) day period following the date of Executive’s Separation from Service, Executive shall not be entitled to the aforesaid payments and benefits. 

(f) Exclusive Remedy. Except as otherwise expressly required by law (e.g., COBRA) or as specifically provided herein, all of
Executive’s rights to salary, severance, benefits, bonuses and other amounts hereunder (if any) accruing after the termination of 

 

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Executive’s employment shall cease upon such termination. In the event of Executive’s termination of employment with the Company, Executive’s sole remedy shall be to receive the
payments and benefits described in this Section 4. In addition, Executive acknowledges and agrees that he or she is not entitled to any reimbursement by the Company for any taxes payable by Executive as a result of the payments and benefits
received by Executive pursuant to this Section 4, including, without limitation, any excise tax imposed by Section 4999 of the Code. Any payments made to Executive under this Section 4 shall be inclusive of any amounts or benefits to
which Executive may be entitled pursuant to the WARN Act or the California WARN Act. 
 (g) No Mitigation. Except as
otherwise provided in Section 4(b)(iii) or 4(c)(iii) above, Executive shall not be required to mitigate the amount of any payment provided for in this Section 4 by seeking other employment or otherwise, nor shall the amount of any payment
or benefit provided for in this Section 4 be reduced by any compensation earned by Executive as the result of employment by another employer or self-employment or by retirement benefits; provided, however, that loans, advances or
other amounts owed by Executive to the Company may be offset by the Company against amounts payable to Executive under this Section 4. 

(h) Return of the Company’s Property. In the event of Executive’s termination of employment for any reason, the Company
shall have the right, at its option, to require Executive to vacate his or her offices prior to or on the effective date of separation and to cease all activities on the Company’s behalf. Upon Executive’s termination of employment in any
manner, as a condition to the Executive’s receipt of any severance benefits described in this Agreement, Executive shall immediately surrender to the Company all lists, books and records of, or in connection with, the Company’s business,
and all other property belonging to the Company, it being distinctly understood that all such lists, books and records, and other documents, are the property of the Company. Executive shall deliver to the Company a signed statement certifying
compliance with this Section 4(h) prior to the receipt of any severance benefits described in this Agreement. 
 (i)
Waiver of the Company’s Liability. Executive recognizes that his or her employment is subject to termination with or without Cause for any reason and therefore Executive agrees that Executive shall hold the Company harmless from and
against any and all liabilities, losses, damages, costs and expenses, including but not limited to, court costs and reasonable attorneys’ fees, which Executive may incur as a result of Executive’s termination of employment. Executive
further agrees that Executive shall bring no claim or cause of action against the Company for damages or injunctive relief based on a wrongful termination of employment. Executive agrees that the sole liability of the Company to Executive upon
termination of this Agreement shall be that determined by this Section 4. In the event this covenant is more restrictive than permitted by laws of the jurisdiction in which the Company seeks enforcement thereof, this covenant shall be limited
to the extent permitted by law. 
 5. Certain Covenants. 

(a) Noncompetition. Except as may otherwise be approved by the Board, during the term of Executive’s employment, Executive
shall not have any ownership interest 
  

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(of record or beneficial) in, or have any interest as an employee, salesman, consultant, officer or director in, or otherwise aid or assist in any manner, any firm, corporation, partnership,
proprietorship or other business that engages in any county, city or part thereof in the United States and/or any foreign country in a business which competes directly or indirectly (as determined by the Board) with the Company’s business in
such county, city or part thereof, so long as the Company, or any successor in interest of the Company to the business and goodwill of the Company, remains engaged in such business in such county, city or part thereof or continues to solicit
customers or potential customers therein; provided, however, that Executive may own, directly or indirectly, solely as an investment, securities of any entity which are traded on any national securities exchange if Executive
(i) is not a controlling person of, or a member of a group which controls, such entity; or (ii) does not, directly or indirectly, own one percent (1%) or more of any class of securities of any such entity. 

(b) Confidential Information. Executive and the Company have entered into the Company’s standard employee proprietary
information and inventions agreement (the “Employee Proprietary Information and Inventions Agreement”). Executive agrees to perform each and every obligation of Executive therein contained. 

(c) Solicitation of Employees. Executive shall not during the term of Executive’s employment and for the applicable severance
period for which Executive receives severance benefits following any termination hereof pursuant to Section 4(b) or (c) above (regardless of whether Executive receives payment of severance amounts payable thereunder in a lump sum) (the
“Restricted Period”), directly or indirectly, solicit or encourage to leave the employment of the Company or any of its affiliates, any employee of the Company or any of its affiliates. 

(d) Solicitation of Consultants. Executive shall not during the term of Executive’s employment and for the Restricted Period,
directly or indirectly, hire, solicit or encourage to cease work with the Company or any of its affiliates any consultant then under contract with the Company or any of its affiliates within one year of the termination of such consultant’s
engagement by the Company or any of its affiliates. 
 (e) Rights and Remedies Upon Breach. If Executive breaches or
threatens to commit a breach of any of the provisions of this Section 5 (the “Restrictive Covenants”), the Company shall have the following rights and remedies, each of which rights and remedies shall be independent of the
other and severally enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity: 

(i) Specific Performance. The right and remedy to have the Restrictive Covenants specifically enforced by any court having equity
jurisdiction, all without the need to post a bond or any other security or to prove any amount of actual damage or that money damages would not provide an adequate remedy, it being acknowledged and agreed that any such breach or threatened breach
will cause irreparable injury to the Company and that money damages will not provide adequate remedy to the Company; and 
  

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 (ii) Accounting and Indemnification. The right and remedy to require Executive
(A) to account for and pay over to the Company all compensation, profits, monies, accruals, increments or other benefits derived or received by Executive or any associated party deriving such benefits as a result of any such breach of the
Restrictive Covenants; and (B) to indemnify the Company against any other losses, damages (including special and consequential damages), costs and expenses, including actual attorneys’ fees and court costs, which may be incurred by them
and which result from or arise out of any such breach or threatened breach of the Restrictive Covenants. 
 (f) Severability
of Covenants/Blue Pencilling. If any court determines that any of the Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the Restrictive Covenants shall not thereby be affected and shall be given full
effect, without regard to the invalid portions. If any court determines that any of the Restrictive Covenants, or any part thereof, are unenforceable because of the duration of such provision or the area covered thereby, such court shall have the
power to reduce the duration or area of such provision and, in its reduced form, such provision shall then be enforceable and shall be enforced. Executive hereby waives any and all right to attack the validity of the Restrictive Covenants on the
grounds of the breadth of their geographic scope or the length of their term. 
 (g) Enforceability in Jurisdictions. The
Company and Executive intend to and do hereby confer jurisdiction to enforce the Restrictive Covenants upon the courts of any jurisdiction within the geographical scope of such covenants. If the courts of any one or more of such jurisdictions hold
the Restrictive Covenants wholly unenforceable by reason of the breadth of such scope or otherwise, it is the intention of the Company and Executive that such determination not bar or in any way affect the right of the Company to the relief provided
above in the courts of any other jurisdiction within the geographical scope of such covenants, as to breaches of such covenants in such other respective jurisdictions, such covenants as they relate to each jurisdiction being, for this purpose,
severable into diverse and independent covenants. 
 (h) Definitions. For purposes of this Section 5, the term
“Company” means not only Zogenix, Inc., but also any company, partnership or entity which, directly or indirectly, controls, is controlled by or is under common control with Zogenix, Inc. 

6. Insurance; Indemnification. 

(a) Insurance. The Company shall have the right to take out life, health, accident, “key-man” or other insurance covering
Executive, in the name of the Company and at the Company’s expense in any amount deemed appropriate by the Company. Executive shall assist the Company in obtaining such insurance, including, without limitation, submitting to any required
examinations and providing information and data required by insurance companies. 
 (b) Indemnification. Executive will
be provided with indemnification against third party claims related to his or her work for the Company as required by Delaware law. The Company shall provide Executive with directors and officers liability insurance coverage at least as favorable as
that which the Company may maintain from time to time for members of the Board and other executive officers. 
  

 12 

 7. Arbitration. Any dispute, claim or controversy based on,
arising out of or relating to Executive’s employment or this Agreement shall be settled by final and binding arbitration in San Diego, California, before a single neutral arbitrator in accordance with the National Rules for the Resolution of
Employment Disputes (the “Rules”) of the American Arbitration Association, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction. Arbitration may be compelled pursuant to the California
Arbitration Act (Code of Civil Procedure §§ 1280 et seq.). If the parties are unable to agree upon an arbitrator, one shall be appointed by the AAA in accordance with its Rules. Each party shall pay the fees of its own
attorneys, the expenses of its witnesses and all other expenses connected with presenting its case; however, Executive and the Company agree that, to the extent permitted by law, the arbitrator may, in his or her discretion, award reasonable
attorneys’ fees to the prevailing party; provided, further, that the prevailing party shall be reimbursed for such fees, costs and expenses within forty-five (45) days following any such award, but in no event later than the
last day of the Executive’s taxable year following the taxable year in which the fees, costs and expenses were incurred; provided, further, that the parties’ obligations pursuant to this sentence shall terminate on the tenth
(10th) anniversary of the date of Executive’s
termination of employment. Other costs of the arbitration, including the cost of any record or transcripts of the arbitration, AAA’s administrative fees, the fee of the arbitrator, and all other fees and costs, shall be borne by the Company.
This Section 7 is intended to be the exclusive method for resolving any and all claims by the parties against each other for payment of damages under this Agreement or relating to Executive’s employment; provided, however,
that neither this Agreement nor the submission to arbitration shall limit the parties’ right to seek provisional relief, including without limitation injunctive relief, in any court of competent jurisdiction pursuant to California Code of Civil
Procedure § 1281.8 or any similar statute of an applicable jurisdiction. Seeking any such relief shall not be deemed to be a waiver of such party’s right to compel arbitration. Both Executive and the Company expressly waive their right to
a jury trial. 
 8. General Relationship. Executive shall be considered an employee of the Company within the meaning of
all federal, state and local laws and regulations including, but not limited to, laws and regulations governing unemployment insurance, workers’ compensation, industrial accident, labor and taxes. 

9. Miscellaneous. 

(a) Modification; Prior Claims. This Agreement and the Employee Proprietary Information and Inventions Agreement set forth the
entire understanding of the parties with respect to the subject matter hereof, supersedes all existing agreements between them concerning such subject matter, including that certain offer letter dated January 29, 2010, between the Company and
Executive. This Agreement may be amended or modified only with the written consent of Executive and an authorized representative of the Company. No oral waiver, amendment or modification will be effective under any circumstances whatsoever.

 (b) Assignment; Assumption by Successor. The rights of the Company under this Agreement may, without the consent of
Executive, be assigned by the Company, in its sole and unfettered discretion, to any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or
substantially all of the assets or business of the Company. The Company will require any 
  

 13 

 
successor (whether direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and to agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place; provided, however, that no such assumption shall relieve the Company of its obligations
hereunder. As used in this Agreement, the “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law
or otherwise. 
 (c) Survival. The covenants, agreements, representations and warranties contained in or made in
Sections 3(g), 4, 5, 6, 7 and 9 of this Agreement shall survive any Executive’s termination of employment. 
 (d)
Third-Party Beneficiaries. This Agreement does not create, and shall not be construed as creating, any rights enforceable by any person not a party to this Agreement. 

(e) Waiver. The failure of either party hereto at any time to enforce performance by the other party of any provision of this
Agreement shall in no way affect such party’s rights thereafter to enforce the same, nor shall the waiver by either party of any breach of any provision hereof be deemed to be a waiver by such party of any other breach of the same or any other
provision hereof. 
 (f) Section Headings. The headings of the several sections in this Agreement are inserted solely for
the convenience of the parties and are not a part of and are not intended to govern, limit or aid in the construction of any term or provision hereof. 

(g) Notices. Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice
deemed given as indicated: (i) by personal delivery when delivered personally; (ii) by overnight courier upon written verification of receipt; (iii) by email, telecopy or facsimile transmission upon acknowledgment of receipt of
electronic transmission; or (iv) by certified or registered mail, return receipt requested, upon verification of receipt. Notice shall be sent to Executive at the address listed on the Company’s personnel records and to the Company at its
principal place of business, or such other address as either party may specify in writing. 
 (h) Severability. All
Sections, clauses and covenants contained in this Agreement are severable, and in the event any of them shall be held to be invalid by any court, this Agreement shall be interpreted as if such invalid Sections, clauses or covenants were not
contained herein. 
 (i) Governing Law and Venue. This Agreement is to be governed by and construed in accordance with
the laws of the State of California applicable to contracts made and to be performed wholly within such State, and without regard to the conflicts of laws principles thereof. Except as provided in Sections 5 and 7, any suit brought hereon shall
be brought in the state or federal courts sitting in San Diego, California, the parties hereto hereby waiving any claim or defense that such forum is not convenient or proper. Each party hereby agrees that any such court shall have in personam
jurisdiction over it and consents to service of process in any manner authorized by California law. 
  

 14 

 (j) Non-transferability of Interest. None of the rights of Executive to receive any
form of compensation payable pursuant to this Agreement shall be assignable or transferable except through a testamentary disposition or by the laws of descent and distribution upon the death of Executive. Any attempted assignment, transfer,
conveyance, or other disposition (other than as aforesaid) of any interest in the rights of Executive to receive any form of compensation to be made by the Company pursuant to this Agreement shall be void. 

(k) Gender. Where the context so requires, the use of the masculine gender shall include the feminine and/or neuter genders and
the singular shall include the plural, and vice versa, and the word “person” shall include any corporation, firm, partnership or other form of association. 

(l) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same Agreement. 
 (m) Construction. The language in all parts of this
Agreement shall in all cases be construed simply, according to its fair meaning, and not strictly for or against any of the parties hereto. Without limitation, there shall be no presumption against any party on the ground that such party was
responsible for drafting this Agreement or any part thereof. 
 (n) Withholding and other Deductions. All compensation
payable to Executive hereunder shall be subject to such deductions as the Company is from time to time required to make pursuant to law, governmental regulation or order. 

(o) Code Section 409A Exempt. 

(i) This Agreement is not intended to provide for any deferral of compensation subject to Section 409A of the Code, and,
accordingly, the severance payments payable under Sections 4(b) and 4(c) shall be paid no later than the later of: (A) the fifteenth (15th) day of the third month following Executive’s first taxable year in which such severance
benefit is no longer subject to a substantial risk of forfeiture, and (B) the fifteenth (15th) day of the third month following first taxable year of the Company in which such severance benefit is no longer subject to substantial risk of
forfeiture, as determined in accordance with Code Section 409A and any Treasury Regulations and other guidance issued thereunder. To the extent applicable, this Agreement shall be interpreted in accordance with Code Section 409A and
Department of Treasury regulations and other interpretive guidance issued thereunder. 
 (ii) If the Executive is a
“specified employee” (as defined in Section 409A of the Code), as determined by the Company in accordance with Section 409A of the Code, on the date of the Executive’s Separation from Service, to the extent that the payments
or benefits under this Agreement are subject to Section 409A of the Code and the delayed payment or distribution of all or any portion of such amounts to which Executive is entitled under this Agreement is required in order to avoid a
prohibited distribution under Section 
  

 15 

 
409A(a)(2)(B)(i) of the Code, then such portion deferred pursuant to this Section 9(o)(ii) shall be paid or distributed to Executive in a lump sum on the earlier of (A) the date that is
six (6)-months following Executive’s Separation from Service, (B) the date of Executive’s death or (C) the earliest date as is permitted under Section 409A of the Code. Any remaining payments due under the Agreement shall be
paid as otherwise provided herein. 
 (iii) To the extent applicable, this Agreement shall be interpreted in accordance with
the applicable exemptions from Section 409A of the Code. If Executive and the Company determine that any payments or benefits payable under this Agreement intended to comply with Sections 409A(a)(2), (3) and (4) of the Code do not
comply with Section 409A of the Code, Executive and the Company agree to amend this Agreement, or take such other actions as Executive and the Company deem reasonably necessary or appropriate, to comply with the requirements of
Section 409A of the Code and the Treasury Regulations thereunder (and any applicable transition relief) while preserving the economic agreement of the parties. If any provision of the Agreement would cause such payments or benefits to fail to
so comply, such provision shall not be effective and shall be null and void with respect to such payments or benefits, and such provision shall otherwise remain in full force and effect. 

(Signature Page Follows) 
  

 16 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth
above. 
  

			
	 ZOGENIX, INC.

		
	By:	 	 /s/ Roger L. Hawley

	Name:	 	Roger L. Hawley
	Title:	 	Chief Executive Officer

  

	
	EXECUTIVE
	
	 /s/ Ann Rhoads

	Ann Rhoads

 SIGNATURE PAGE TO EMPLOYMENT
AGREEMENT 

 EXHIBIT A 

GENERAL RELEASE OF CLAIMS 

[The language in this Release may change based on legal developments and evolving best practices; this form is provided as an example
of what will be included in the final Release document.] 
 This General Release of Claims
(“Release”) is entered into as of this      day of             ,         , between
Ann Rhoads (“Executive”), and Zogenix, Inc., a Delaware corporation (the “Company”) (collectively referred to herein as the “Parties”). 

WHEREAS, Executive and the Company are parties to that certain Employment Agreement dated as of March 1, 2010 (the
“Agreement”); 
 WHEREAS, the Parties agree that Executive is entitled to certain severance benefits
under the Agreement, subject to Executive’s execution of this Release; and 
 WHEREAS, the Company and Executive now wish
to fully and finally to resolve all matters between them. 
 NOW, THEREFORE, in consideration of, and subject to, the severance
benefits payable to Executive pursuant to the Agreement, the adequacy of which is hereby acknowledged by Executive, and which Executive acknowledges that he or she would not otherwise be entitled to receive, Executive and the Company hereby agree as
follows: 
 1. General Release of Claims by Executive. 

(a) Executive, on behalf of himself or herself and his or her executors, heirs, administrators, representatives and assigns, hereby agrees
to release and forever discharge the Company and all predecessors, successors and their respective parent corporations, affiliates, related, and/or subsidiary entities, and all of their past and present investors, directors, shareholders, officers,
general or limited partners, employees, attorneys, agents and representatives, and the employee benefit plans in which Executive is or has been a participant by virtue of his or her employment with or service to the Company (collectively, the
“Company Releasees”), from any and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits,
expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected (collectively,
“Claims”), which Executive has or may have had against such entities based on any events or circumstances arising or occurring on or prior to the date hereof or on or prior to the date hereof, arising directly or indirectly
out of, relating to, or in any other way involving in any manner whatsoever Executive’s employment by or service to the Company or the termination thereof, including any and all claims arising under federal, state, or local laws relating to
employment, including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, 

 

 18 

 
defamation, or liability in tort, and claims of any kind that may be brought in any court or administrative agency including, without limitation, claims under Title VII of the Civil Rights Act of
1964, as amended, 42 U.S.C. Section 2000, et seq.; the Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701
et seq.; the Civil Rights Act of 1866, and the Civil Rights Act of 1991; 42 U.S.C. Section 1981, et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. Section 621, et seq. (the
“ADEA”); the Equal Pay Act, as amended, 29 U.S.C. Section 206(d); regulations of the Office of Federal Contract Compliance, 41 C.F.R. Section 60, et seq.; the Family and Medical Leave Act, as amended,
29 U.S.C. § 2601 et seq.; the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C.
§ 1001 et seq.; and the California Fair Employment and Housing Act, California Government Code Section 12940, et seq. 

Notwithstanding the generality of the foregoing, Executive does not release the following claims: 

(i) Claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable
state law; 
 (ii) Claims for workers’ compensation insurance benefits under the terms of any worker’s
compensation insurance policy or fund of the Company; 
 (iii) Claims pursuant to the terms and conditions of the
federal law known as COBRA; 
 (iv) Claims for indemnity under the bylaws of the Company, as provided for by
California law or under any applicable insurance policy with respect to Executive’s liability as an employee, director or officer of the Company; 

(v) Claims based on any right Executive may have to enforce the Company’s executory obligations under the Agreement;
and 
 (vi) Claims Executive may have to vested or earned compensation and benefits. 

(b) EXECUTIVE ACKNOWLEDGES THAT HE OR SHE HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542,
WHICH PROVIDES AS FOLLOWS: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 

 

 2 

 BEING AWARE OF SAID CODE SECTION, EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS HE OR SHE MAY HAVE
THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. 
 [Note: Clauses (c),
(d) and (e) apply only if Executive is age 40 or older at time of termination] 
 (c) Executive acknowledges
that this Release was presented to him or her on the date indicated above and that Executive is entitled to have [twenty-one (21)][forty-five (45)] days’ time in which to consider it. Executive further acknowledges that the Company has advised
him or her that he or she is waiving his or her rights under the ADEA, and that Executive should consult with an attorney of his or her choice before signing this Release, and Executive has had sufficient time to consider the terms of this Release.
Executive represents and acknowledges that if Executive executes this Release before [twenty-one (21)][forty-five (45)] days have elapsed, Executive does so knowingly, voluntarily, and upon the advice and with the approval of Executive’s legal
counsel (if any), and that Executive voluntarily waives any remaining consideration period. 
 (d) Executive understands that
after executing this Release, Executive has the right to revoke it within seven (7) days after his or her execution of it. Executive understands that this Release will not become effective and enforceable unless the seven (7) day
revocation period passes and Executive does not revoke the Release in writing. Executive understands that this Release may not be revoked after the seven (7) day revocation period has passed. Executive also understands that any revocation of
this Release must be made in writing and delivered to the Company at its principal place of business within the seven (7) day period. 

(e) Executive understands that this Release shall become effective, irrevocable, and binding upon Executive on the
eighth (8th) day after his or her execution of it, so
long as Executive has not revoked it within the time period and in the manner specified in clause (d) above. 
 (f)
Executive further understands that Executive will not be given any severance benefits under the Agreement unless this Release is effective on or before the date that is fifty (50) days following the date of Executive’s termination of
employment. 
 2. No Assignment. Executive represents and warrants to the Company Releasees that there has been no
assignment or other transfer of any interest in any Claim that Executive may have against the Company Releasees. Executive agrees to indemnify and hold harmless the Company Releasees from any liability, claims, demands, damages, costs, expenses and
attorneys’ fees incurred as a result of any such assignment or transfer from Executive. 
  

 3 

 3. Severability. In the event any provision of this Release is found to be
unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit
contemplated herein to the fullest extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the
remaining provisions shall not be affected thereby. 
 4. Interpretation; Construction. The headings set forth in this
Release are for convenience only and shall not be used in interpreting this Agreement. This Release has been drafted by legal counsel representing the Company, but Executive has participated in the negotiation of its terms. Furthermore, Executive
acknowledges that Executive has had an opportunity to review and revise the Release and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Release. Either party’s failure to enforce any provision of this Release shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter
from enforcing each and every other provision of this Release. 
 5. Governing Law and Venue. This Release will be
governed by and construed in accordance with the laws of the United States of America and the State of California applicable to contracts made and to be performed wholly within such State, and without regard to the conflicts of laws principles
thereof. Any suit brought hereon shall be brought in the state or federal courts sitting in San Diego County, California, the Parties hereby waiving any claim or defense that such forum is not convenient or proper. Each party hereby agrees that any
such court shall have in personam jurisdiction over it and consents to service of process in any manner authorized by California law. 

6. Entire Agreement. This Release and the Agreement constitute the entire agreement of the Parties in respect of the subject
matter contained herein and therein and supersede all prior or simultaneous representations, discussions, negotiations and agreements, whether written or oral. This Release may be amended or modified only with the written consent of Executive and an
authorized representative of the Company. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. 

7. Counterparts. This Release may be executed in multiple counterparts, each of which shall be deemed to be an original but all of
which together shall constitute one and the same instrument. 
 (Signature Page Follows) 

 

 4 

 IN WITNESS WHEREOF, and intending to be legally bound, the Parties have executed the
foregoing Release as of the date first written above. 
  

									
	EXECUTIVE	 		 	 ZOGENIX, INC.

				
	  
	 		 	By:	 	  

	Print Name:	 	Ann Rhoads	 		 	 Print Name:
	 	  

		 		 		 	Title:Supply Agreement

 Exhibit 10.8 

Execution copy 92904 
 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. 

SUPPLY AGREEMENT 

THIS SUPPLY AGREEMENT (the “Agreement”), is made and entered into effective as of this
29th day of September, 2004, by and among
Dr. Reddy’s Laboratories, Inc., a New Jersey corporation having its principal place of business at 200 Somerset Corporate Boulevard,
7th Floor., Bridgewater, New Jersey 08807 and
Dr. Reddy’s Laboratories Limited, a corporation organized under the laws of India, having its principal place of business at 7-1-27 Ameerpet, Hyderabad - 500 016, India (collectively “Reddy”, and Aradigm Corporation, a
California corporation having its principal place of business at 3929 Point Eden Way, Hayward, CA 94545 (“Aradigm”). 

W I T N E S S E T H: 

WHEREAS, Reddy is engaged in the business of manufacturing and supplying various bulk drug substances to pharmaceutical companies; and

 WHEREAS, Aradigm is engaged in, among other things, the preparation, manufacture, distribution and sale of drug products; and

 WHEREAS, Aradigm desires to purchase the drug substance identified in Schedule 1 annexed hereto, as such Schedule may
be amended or supplemented from time to time, from Reddy, and Reddy is willing to manufacture and sell the drug substance to Aradigm, upon the terms and conditions set forth herein. 

NOW, THEREFORE, the parties hereto agree as follows: 

1. Definitions. As used in this Agreement, the following definitions shall apply: 

“Affiliate” means any entity controlling, controlled by or under the common control of Aradigm or Reddy, as the case may
be. For the purpose of this Agreement, “control” shall mean the direct or indirect ownership of at least fifty (50%) percent of the outstanding voting shares or other voting rights of the subject entity, or the ability, directly or
indirectly, to direct or cause the direction of management and policies of such entity. 
 “ANDA” means any
abbreviated new drug application required to manufacture, market and sell finished dosage forms of the Drag Product (as defined below) in the United States and its territories and possessions filed by or on behalf of Aradigm’s Designated
Manufacturer with the FDA pursuant to 21 U.S.C. 355(j), and any amendments thereto which may be filed by Aradigm’s or its Designated Manufacturer from time to time, and any foreign equivalent of such application. 

“cGMP” means current Good Manufacturing Practices, as established by the FDA or its foreign equivalent. 

“Commercial Sale Date” means the date of the first commercial sale by Aradigm or its Affiliate of a Drug Product.

  

 1 

 Execution copy 92904 

 
 “Designated Manufacturer” means a
manufacturer of the Drug Product who is an Affiliate of Aradigm or with whom Aradigm has entered into a manufacturing agreement, as set forth on Exhibit A, as the same shall be supplemented by Aradigm from time to time. 

“DMF” means the open and closed portions of the Drug Master File required to manufacture, market and sell Drug Substance
in bulk form in the United States, filed with the FDA and to be maintained by Reddy with the FDA. 
 “Drug
Produce” means any pharmaceutical product suitable for human use that contains Drug Substance. 
 “Drug
Substance” means the drug substance identified in Schedule 1 annexed hereto, supplied in bulk form meeting the Specifications. It is understood that such drug substance shall only be used by Aradigm in connection with research and
development or commercialization of the Drug Product(s) identified in Schedule 1 in the Territory. 

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

“Regulatory Approval” means the procurement of the registrations, permits and approvals required by applicable
government authorities for the manufacture, importation into, marketing, sale and distribution of the Drug Substance or the Drug Product in the Territory, including, without limitation, the DMF and the ANDA. 

“Specifications” means the specifications set forth in the applicable United States Pharmacopoeia monograph (should such
a monograph be published), the applicable European Pharmacopoeia monograph (should such monograph be published), the DMF, the specifications set forth in this Agreement, including without limitation, those set forth on Exhibit B hereto which
Exhibit B shall be supplemented from time to time as additional Drug Substances are added to this Agreement and as mutually agreed upon by the parties hereto. 

“Term” shall have the meaning set forth in Section 3 below. 

“Territory” means the United States, its commonwealths and possessions, Canada, EU and any other countries that the
parties mutually agree shall be included in this Agreement. 
 2. Purchase and Side of Drug Substance. 

(a) Reddy agrees to sell to Aradigm not less than fifty percent (50%) of Aradigm’s quarterly requirements for the Drug
Substance in the Territory, and Aradigm agrees to purchase, on a non-exclusive basis from Reddy, not less than fifty percent (50%) of Aradigm’s quarterly requirements for the Drug Substance in the Territory during the Term and upon the
terms and conditions set forth herein. 
  

 2 

 Execution copy 92904 

 
 (b) Notwithstanding any other provision of this Agreement, if
Reddy is unable (or anticipates an inability) to manufacture or deliver any Drug Substance to Aradigm in a particular Territory, Reddy shall promptly notify Aradigm in writing of the period for which such inability (or anticipated inability) to so
manufacture or deliver is expected. If Reddy is unable to meet, or does not meet, on a timely basis (according to Aradigm’s scheduled delivery dates for ordered Drug Substance) Aradigm’s forecasted requirements for, or ordered (subject to
the terms of Section 5 below) amounts of the Drug Substance, anywhere in the Territory, then Aradigm’s obligation to purchase the Drug Substance from Reddy in accordance with Section 2(a) above shall automatically be suspended and
Aradigm may purchase such additional needed Drug Substance from a third party for sale in such Territory; provided, that if Reddy has an inventory of such Drug Substance that it is ready, willing and able to deliver to Aradigm, Reddy shall use
commercially reasonable efforts to supply the backlog of Drug Substance from such remaining inventory as soon as possible. If at any time thereafter Reddy demonstrates to Aradigm’s reasonable satisfaction that Reddy is able to manufacture and
deliver the Drug Substance to Aradigm in amounts sufficient to meet all of Aradigm’s requirements on a timely basis, then, subject to Aradigm’s contractual commitments with third parties (which Aradigm shall use commercially reasonable
efforts to limit such contractual commitments to the quantity of the Drug Substance that Aradigm reasonably determines that Reddy will be unable to supply to Aradigm), Aradigm’s obligation to purchase the Drug Substance from Reddy as stated in
Section 2(a) above shall resume. If Reddy’s inability to manufacture or deliver on a timely basis sufficient amounts of the Drug Substance to cover all of Aradigm’s orders under this Section 2 continues for a period of [***] or
more, or is repeated more that [***] ([***]) times in any [***] ([***]) month period, Aradigm may terminate this Agreement by notice in writing to Reddy. 

3. Term. 

(a) Subject to Section 3(b) and Section 15 hereof, the term of this Agreement (the “Term”) shall commence on
the signing date hereof, and shall for a period of ten (10) years following the Commercial Sale Date of a Drug Product in any country in the Territory. 

(b) The Term may be extended by Aradigm for successive one (1) year periods by written notice from Aradigm to Reddy provided at
least six (6) months before the expiration of the then current term, unless Reddy gives written notice to Aradigm within thirty (30) days after receipt of such Aradigm extension notice that Reddy does not wish to extend the term of the
Agreement. 
 4. Prices and Payments. 

(a) The price for the Drug Substance supplied by Reddy to Aradigm pursuant to this Agreement for commercial purposes shall be as set
forth in Schedule 2 annexed hereto, which Schedule may be amended or supplemented by written agreement of the parties from time to time. In addition, Aradigm shall pay for all costs related to shipping, insurance, bacterial endotoxin,
microbial, and particulate matter tests and any additional tests Reddy may have to conduct to provide injectable grade Drug Substance to Aradigm. 

(b) Aradigm shall pay Reddy for the Drug Substance delivered hereunder within [***] ([***]) days of the date of Reddy’s invoice for
the Drug Substance. All payments shall be made by Aradigm to Reddy in United States dollars for the Drug Substance delivered to Aradigm. 
  

	***	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. 

 3 

 Execution copy 92904 

 
 5. Quantity. During the Term, Reddy shall make
available to Aradigm for purchase hereunder such quantities of the Drug Substance as Aradigm may from time to time order; provided, however, that in the event that Aradigm places orders at any time for more than [***] percent ([***]%) of the
requirements stated in the forecast to be delivered by Aradigm to Reddy pursuant to Section 6 below, Reddy shall only be obligated to use commercially reasonable efforts to fill the amounts of such orders in excess of such one hundred fifty
percent (150%) amount. 
 6. Forecasts. 

(a) During the Term of this Agreement, Aradigm shall provide Reddy with a [***] ([***]) month written forecast, which shall be updated no
less frequently than every [***] on a rolling [***] basis, of Aradigm’s monthly anticipated requirements of the Drug Substance over the next [***] ([***]) months from the date of the forecast. The first [***] ([***]) months of each such
forecast shall represent a binding commitment to submit during such [***] ([***]) month period firm orders for the Drug Substance in the amounts set forth in such forecast, and the quantities indicated for the remaining [***] ([***]) months of such
forecast shall be made to assist Reddy in planning its production and Aradigm in planning its sales, and shall be non-binding. The minimum order quantity in a single purchase order for any quarterly forecast period shall be [***] ([***]) kilograms.

 (b) Reddy shall deliver the Drug Substance to Aradigm within [***] ([***]) days after receipt of Aradigm’s firm purchase
order unless Aradigm specifies a later date in such order. Reddy shall use commercially reasonable efforts to deliver Drug Substance in a shorter time if reasonably requested by Aradigm. The failure to deliver the Drug Substance in a shorter time
period shall not constitute a default under this Agreement. 
 7. Shipments. The Drug Substance shall be shipped
FOB, Hyderabad, India (INCOTERMS 2000) and the supply price shall not be inclusive of the costs of shipment and insurance. 

8. Representations and Warranties. Each of Reddy and Aradigm represents and warrants to the other as follows: 

(a) It has full corporate power and authority to enter into this Agreement and consummate the transactions contemplated hereby.

 (b) It has or will have such permits, licenses and authorizations of governmental or regulatory authorities as are necessary
to own its respective properties, conduct its business and consummate the transactions contemplated hereby. 
  

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 9. Quality; Manufacturing Practices.

 (a) Reddy hereby represents and warrants that all Drag Substance supplied by Reddy to Aradigm shall meet the Specifications
and shall be free from adulteration or defects. Any disputes between the parties regarding the failure of the Drug Substance supplied by Reddy to Aradigm pursuant to this Agreement to meet the Specifications shall be submitted to a mutually agreed
upon independent laboratory. Aradigm shall initially bear the costs of such independent laboratory. The findings of the independent laboratory shall be binding upon both parties. The party against whose favor the independent laboratory resolves the
dispute shall be responsible for the costs of the independent laboratory, and if such party is Reddy, Reddy shall promptly reimburse Aradigm for any costs advanced to the independent laboratory. 

(b) Reddy shall manufacture the Drug Substance in compliance with cGMP standards as the same are or from time to time shall be
established by applicable statute and regulations of the FDA or its foreign equivalent (as applicable), and in accordance with this Agreement and a mutually agreed upon Quality Agreement. 

(c) Reddy shall retain such samples of the Drug Substance as are required and specified by Reddy’s standard operating procedures to
comply with the general retention requirements as set forth in cGMP regulations, and shall perform stability testing as described and required to conform with the Drug Substance’s stability protocol. 

(d) In the event of a product recall that is determined to be caused by the deficiency or non-compliance of the Drug Substance as API
(e.g., failure to comply with the Specifications or cGMP or existence of a latent defect), Reddy shall promptly replace the same amount of the Drug Substance as being recalled free of any charge, including without limitation the cost of transport.

 10. Regulatory Approvals. 

(a) Reddy shall maintain compliance with the FDA or its foreign equivalents, as applicable, with respect to the Drug Substance that it
provides to Aradigm. 
 (b) Reddy shall provide Aradigm with the open sections of the DMF and basic technical files, working
standards, impurity standards, if available, and other information pertaining to the Drug Substance that are necessary or useful for Aradigm to file an ANDA for any Thug Product in the United States or its foreign equivalents. 

(c) Reddy shall obtain and maintain all necessary or relevant licenses, approvals and certifications and other authorizations necessary
to maintain and operate its Drug Substance production site. 
 (d) Reddy shall successfully pass an FDA Pre-approval Inspection
(PM) if such PAI is required for approval of Aradigm’s ANDA for delivery of the Drug Substance via Aradigm’s drug delivery system. 

(e) Reddy shall provide Aradigm with prompt notice of its receipt of any FDA notices (including 483 notices) of violation or deficiency
letters relating solely to Aradigm’s application and file with respect to the Drug Substance, or equivalent foreign notices or letters. Reddy shall deliver to Aradigm, as soon as commercially reasonable following receipt, copies of all reports,
data, information and correspondence from the FDA, any state or local authorities, or their foreign equivalents with respect to Aradigm’s application and file as it relates to the Drug Substance. Reddy shall deliver to Aradigm copies of any
written response, information, data or correspondence delivered by Reddy to the FDA, any state or local authorities, or their foreign equivalents with respect to the Drug Substance and Aradigm’s application and file associated therewith. Reddy
shall use commercially reasonable efforts to cooperate with Aradigm in connection with any response required by Aradigm to any inquiry from the FDA, any state or local authorities, or their foreign equivalents with respect to the Drug Substance and
Aradigm’s application and file associated therewith. 
  

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 11. Audit Right. 

(a) Reddy shall have the right at any time and from time to time to nominate a firm of independent certified public accountants to have
access to the applicable records of Aradigm during reasonable business hours solely for the purpose of verifying, at the auditing party’s expense, that Aradigm has purchased, during the applicable period subject of the audit, not less than
fifty percent (50%) of Aradigm’s requirements for the Drug Substance as set forth in Section 2 above. Such audit shall not cover any time periods more than [***] ([***]) years prior to the date of the audit, and may not be conducted
more than [***] per year. In the event that the auditing accountant finds that Aradigm has been purchasing less than fifty percent (50%) of Aradigm’s requirements for the Drug Substance as set forth in Section 2 above, Aradigm shall
(a) pay the cost of that audit (within [***] ([***]) days of its receipt of notice of the results of the audit), (b) be subject (if so elected by Reddy) to [***] audits for the following [***] ([***]) years, and (c) [***] pay to Reddy
the difference between the amount of its actual purchases and the aggregate purchase price for the amount of the Drug Substance representing such fifty percent (50%) of its requirements, together with interest at [***] percent ([***]%) per
annum on such difference for the period of time that Aradigm did not purchase fifty percent (50%) of its requirements. 

(b) Reddy shall keep complete records for its manufacture of Drug Substance that is provided to Aradigm for at least [***] ([***]) years
from the date such records are generated. Aradigm shall have the right to audit such records at least [***] a year by giving Reddy [***] ([***]) days prior written notice. Reddy shall permit any regulatory authority to inspect the Production site as
permitted or required by applicable laws and regulation. 
 12. Review of Process. Aradigm shall have the right,
upon written notice to Reddy and following execution and delivery of a Common Interest, Non-Waiver of Privilege and Confidentiality Agreement, to review, from time to time, through independent United States patent counsel for each party,
Reddy’s process for the manufacture of the bulk form of the Drug Substance to ensure that such process does not infringe the valid rights of any third parties. 

13. Confidentiality. 

(a) Any information pertaining to the Drug Substance that has been or will be communicated by Reddy to Aradigm and/or the Designated
Manufacturer under this Agreement and identified as “confidential,” and any information communicated by Aradigm and/or the Designated Manufacturer to Reddy under this Agreement and identified as “confidential,” which may include
without limitation, trade secrets, business methods and plans, pricing, cost, manufacturing and customer information, shall be referred to herein as the “Confidential Information” of the disclosing party. All such Confidential Information
received by Aradigm, the Designated Manufacturer or Reddy, respectively, shall be treated by the receiving party, and its respective affiliates, officers, directors, employees, agents and representatives, as Confidential Information and shall not be
disclosed to any third parties or used for any purpose other than as contemplated under this Agreement; provided, however, that particular Confidential Information shall not be subject to the restrictions and prohibitions set forth in
this section to the extent that the receiving party can demonstrate that such information: 
 (i) is available to the public in
public literature or otherwise, or after disclosure by one party to the other becomes public knowledge through no default of the party receiving such confidential information; 

 

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 (ii) was known to the receiving party prior to the receipt
of such Confidential Information by such party, whether received before or after the date of this Agreement; 
 (iii) is
obtained by the receiving party from a source other than the party supplying such Confidential Information; or 
 (iv) is
developed independently by the receiving party without reference to any Confidential Information disclosed to it. 

Notwithstanding the foregoing, a party may disclose the other party’s Confidential Information to the extent such disclosure is
required pursuant to any order of a court having jurisdiction or any lawful action of a governmental or regulatory agency; provided that such party will promptly give notice to the disclosing party and make a reasonable effort to obtain, or
cooperate in the disclosing party’s efforts to obtain, a protective order or confidential treatment covering such Confidential Information and limiting its disclosure and use solely for the purposes for which the order, law or regulation
require disclosure. 
 (b) Each party shall take all precautions as it normally takes with its own confidential information to
prevent any improper disclosure of such confidential information to any independent third party; provided, however, that such confidential information may be disclosed within the limits required to obtain any authorization from the FDA or any other
United States or other applicable governmental or regulatory agency or, with the prior written consent of the other party, which shall not be unreasonably withheld, as may otherwise be required in connection with the purpose of this Agreement.

 (c) Each party acknowledges that in the event of a breach of the provisions of this Section by such party, remedies that
exist at law may be inadequate for the non-breaching, party and agrees that, in addition to any remedy available at law, the non-breaching party shall be entitled to seek injunctive relief to prevent the breach or threatened breach of any of the
provisions of this Agreement. 
 (d) Aradigm shall require any Designated Manufacturer who shall receive Confidential
Information from Reddy to agree to be bound by the provisions of this Section. 
  

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 (e) This Section 13 and the obligations contained herein
shall survive expiration or termination of this Agreement for any reason whatsoever for a period of three (3) years. 

14. Indemnification. 

(a) Reddy shall defend, indemnify and hold Aradigm, the Designated Manufacturer and their respective Affiliates, officers, directors,
employees, agents, successors and assigns harmless from and against any and all loss, liability, damage, cost or expense (including, without limitation, reasonable attorneys’ fees) (collectively, “Losses”) arising out of any third
party claim, allegation, action, suit, or proceeding directly or indirectly arising from or related to any breach of Reddy’s representations, warranties or covenants under the Agreement; provided, however, that Reddy shall not be required to
indemnify Aradigm with respect to any such Losses directly or indirectly arising from or related to (i) any claim by any third party that the manufacture and sale of the Drug Substance or Drug Product infringes any patent held by such third
party, (ii) Aradigm’s breach of its obligations, representations, warranties or covenants hereunder, (iii) from information supplied by Aradigm or contained in regulatory filings by Aradigm, or (iv) Aradigm’s negligence.

 (b) Aradigm shall defend, indemnify and hold Reddy harmless from and against any Losses arising out of any third party claim,
allegation, action, suit, or proceeding directly or indirectly arising from or related to Aradigm’s manufacture, storage, use or sale of any Drug Product incorporating the Drug Substance manufactured by Reddy; provided that the foregoing
obligation shall not apply with respect to Losses relating to or any such claim, action, suit, proceeding, loss, liability, damage or expense that is arising from or related to any breach of Reddy’s obligations, representations, warranties or
covenants under the Agreement or Reddy’s negligence. 
 (c) This Section 14 and the obligations contained herein shall
survive expiration or termination of this Agreement for any reason whatsoever, to the extent such obligations arise during the Term of this Agreement. 

15. Termination. 

(a) The Term of this Agreement may be terminated as to the Drug Substance in a particular country in the Territory immediately upon
written notice of termination given by; 
 (i) The non-defaulting party in the event that the other party shall;
(A) commit a material breach or default under this Agreement, which breach or default shall not be remedied within sixty (60) days after the receipt of written notice thereof by the party in breach or default; 

(ii) Either Reddy or Aradigm if the other party becomes insolvent, makes or has made an assignment for the benefit of creditors, is the
subject of proceedings in voluntary or involuntary bankruptcy instituted on behalf of or against such party (except for involuntary bankruptcies which are dismissed within ninety (90) days), or has a receiver or trustee appointed for
substantially all of its property; or 
  

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 (iii) The performing party in the event described in
Section 16. 
 (b) In the event that Aradigm is negotiating an agreement with a third party to commercialize such third
party’s formulation of Drug Substance, and such agreement would preclude sourcing of Drug Substance from a party other than such third party, Aradigm may terminate this Agreement by providing Reddy with sixty (60) days’ advance
written notice of such termination and by fulfilling Aradigm’s payment obligations related to all open purchase orders of Drug Substance that were placed with Reddy prior to the date that Reddy received such notice of termination. 

(c) Termination of this Agreement (whether under this Section 15, on expiration of the Term or otherwise) shall be without prejudice
to any rights of either party against the other that may have accrued up to the effective date of such termination. 
 16.
Force Majeure. If any of Reddy, Aradigm and the Designated Manufacturer shall be prevented by fire, strike, lockouts, war, civil disturbances, acts of God or other similar events beyond such party’s reasonable control from performing
its respective obligations hereunder, such party shall not be liable to the other for damages pursuant to this Agreement for so long as the condition constituting Force Majeure continues and the nonperforming Party uses reasonable efforts to remove
the condition. The party being able to perform may, at its sole option, extend the duration of this Agreement by a term equal in length to the period during which the other party was unable to perform its obligations hereunder, or waive such
obligations. Notwithstanding the foregoing, if any Force Majeure continues for more than three (3) consecutive months, the performing party shall have the option to terminate this Agreement pursuant to Section 15(a)(iii). 

17. Retention of Records. Whenever applicable under cGMP, all documentation, records, raw data, and specimens pertaining to
this Agreement will be held by each party for the length of time specified in such party’s standard operating procedure which meets cGMP guidelines. 

18. Insurance. Aradigm and Reddy each agree to maintain in force, commencing on the Commercial Sale Date and continuing for
a period of [***] ([***]) months following expiration or termination of this Agreement for any reason, product liability insurance coverage of not less than $[***] per occurrence and in the aggregate, naming the other party and its Affiliates as
additional insureds. 
 19. Independent Contractors. Reddy and Aradigm are independent of each other and nothing
contained herein shall be construed to create a joint venture, partnership or similar relationship. Neither party is authorized to, nor shall it, incur any liability whatsoever for which the other may become directly, indirectly or contingently
liable. 
  

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 20. Dispute Resolution; Consent to
Jurisdiction. In an effort to resolve informally and amicably any claim, controversy or dispute (whether such claim, sounds in contract, tort, or otherwise) arising out of or relating to this Agreement or the breach thereof (a
“Dispute”), each party shall notify the other in writing of a Dispute hereunder that requires resolution. Such notice shall set forth the nature of the Dispute, the amount, if any, involved and the remedy sought. Each party shall
designate a representative who shall be empowered to investigate, discuss and seek to settle the Dispute. If the two representatives are unable to settle the Dispute within thirty (30) days after proper notification, the Dispute shall be
submitted to the President of each party for consideration for an additional thirty (30) days. If the Dispute remains unresolved after said sixty (60) day period, either party shall have a right to commence any action, suit or proceeding
with respect to such Dispute in the state or federal courts located in the State of New York. Aradigm and Reddy each irrevocably consent that any legal action or proceeding against it may be brought in the state or federal courts located in the
State of New York, and Aradigm and Reddy each submit to the personal jurisdiction of any such courts. Aradigm and Reddy each further irrevocably consent to the service of any complaint, summons, notice or other process by delivery thereof to it by
any manner in which notices may be given pursuant to this Agreement and .Aradigm and Reddy each submit to the personal jurisdiction of such court. Aradigm and Reddy each further irrevocably consent to the service of any complaint, summons, notice or
other process by delivery thereof to it by any manner in which notices may be given pursuant to this Agreement. 
 21.
Assignment. This Agreement shall inure to the benefit of, and shall be binding upon each of, the parties hereto and their respective successors and assigns. This Agreement cannot be assigned in whole or in part by either party without the
prior written consent of the other party, except that a party may, without the prior written consent of the other party, assign this Agreement, in whole, to an Affiliate, provided that, Aradigm may not assign, without Reddy’s written consent,
the Agreement to any third party successor in interest acquiring all or substantially all of the assets of Aradigm, through merger, acquisition or other transactions. 

22. Notices. Any and all notices given pursuant to this Agreement shall be in writing, and shall be deemed to have been
properly given when delivered personally or sent by facsimile or air courier with respect, confirmed by registered air mail, to the appropriate party at the address shown below, or such other address as shall be specified by the parties hereto by
written notice given in accordance with this section and shall be effective upon receipt thereof. Any notice shall be effective upon receipt, which shall be deemed to occur one (1) business day after the sending of the facsimile, four
(4) business days after the sending by air courier, and seven (7) calendar days after the delivery of a confirmation letter to the postal authorities in the country of the party by which it is sent. 

 

							
	If to Aradigm to:	 	 Aradigm Corporation

3929 Point Eden Way
 Hayward, CA
94545

		 	Attn:	 	  
	 	
		 	Fax:	 	  
	 	
		
	If to Reddy to:	 	 Dr. Reddy’s Laboratories, Inc.

200 Somerset Corporate Blvd.
 Bridgewater, New
Jersey 08807

		 	Attn: Arun Sawhney, President, Global API
		 	Fax: 91-40-23558927

  

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	And with a copy to:	 	 Dr. Reddy’s Laboratories, Inc.

200 Somerset Corporate Blvd.
 Bridgewater, New
Jersey 08807

		 	 Attn: General Counsel

Fax: 908-203-4970

23. Amendment and Waiver. This Agreement (including the Exhibits and Schedules hereto) may be amended, modified, superseded
or canceled, and any other of the terms or conditions hereof may be modified, only by a written instrument executed by all of the parties hereto or, in the case of a waiver, by the party waiving compliance. Failure of any party at any time or times
to require performance of any provision hereof shall in no manner affect the right of such party at a later time to enforce the same, and no waiver of any nature, whether by conduct or otherwise, in any one or more instances, shall be deemed to be
or considered as a further or continuing waiver of any other provision of this Agreement. 
 24. Severability. In
the event that any one or more of the agreements, Provisions or terms contained herein shall be declared invalid, illegal or unenforceable in any respect, the validity of the remaining agreements, provisions of terms contained herein shall in no way
be affected, prejudiced or invalidated thereby. 
 25. Public Announcements. Reddy and Aradigm agree that
neitherwill publicize or disclose the existence of this Agreement or the subject matter hereof in any way without the prior written consent of the other party, except as may be required to comply with the disclosure requirements of applicable laws
and regulations. The parties agree that in the event disclosure of the existence of this Agreement and/or any of the terms hereof or the subject matter hereof is required by either party by law or regulation, such party will seek the consent of the
other party to make such disclosure, which consent shall not be unreasonably withheld or delayed; provided, however, that any such disclosure shall be limited to the minimum disclosure required. 

26. Entire Agreement. This Agreement, together with the Exhibits and Schedules hereto, contains the entire agreement
between the parties hereto and supersedes any agreements between Reddy and Aradigm with respect to the subject matter hereof. 

27. Section Headings. The section headings contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement. 
 28. Counterparts. This Agreement may be executed in
any number of separate counterparts, each of which shall be deemed to be an original, but which together shall constitute one and the same instrument. Facsimile signatures shall be considered original signatures. 

 

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 29. Representations, Warranties, and Limitation of
Liability. Neither Reddy nor Aradigm makes any indemnity, representation, or warranty, either express or implied, with respect to the Drug Substance, except for indemnities, representations, and warranties expressly set forth in this
Agreement. In no event shall either party be liable to the other party under this Agreement for punitive, exemplary, consequential, or special damages including, without limitation, damages related to lost good will, lost customers, or lost profits,
beyond those damages expressly provided herein, including without limitation as provided in Section 13(c). 
 [SIGNATURE
PAGE FOLLOWS] 
  

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

			
	DR. REDDY’S LABORATORIES, INC.
		
	By:	 	 /s/ Viswanatha R. Bonthu

		 	Name: Viswanatha R. Bonthu
		 	Title: Senior Vice President, Finance and
		 	Information Technology Services
	
	DR. REDDY’S LABORATORIES LIMITED
		
	By:	 	 /s/ Arun Sawhney

		 	Name: Arun Sawhney
		 	Title: President, Global API
	
	ARADIGM CORPORATION
		
	By:	 	 /s/ Borba Venkatadri

		 	Name: Borba Venkatadri
		 	Title: Sr. V.P. Operations

  

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 Exhibit A 

Designated Manufacturer 

Kingfisher Drive, Covingham, Swindon, Wiltshire, SN3 5BZ 
  

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 Exhibit B 

Specifications 

[***] 
  

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 Schedule 1 

Drug Substance 
  

			
	Drug Substances:	  	To be used to manufacture the following Drug Products:
		
	 Sumatriptan Succinate
	  	 Intraject sumatriptan (sumatriptan injection, 6mg/.05mL as the succinate salt)

 

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 Schedule 2 

Price For Drug Substance 
  

			
	Drug Substance	 	Price
		
	 Sumatriptan Succinate
	 	$[***] per kilogram plus the costs of [***]

  

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