Document:

Second Amended and Restated Loan and Security Agreement

 Exhibit 10.25 
 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. 
 SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

THIS SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of October 8, 2010
(the “Effective Date”) among OXFORD FINANCE CORPORATION (in its individual capacity, “Oxford”; in its capacity as Administrative Agent, “Administrative Agent”; collectively with the other
Lenders from time to time a party hereto, the “Lenders”, and Oxford and each such lender individually, a “Lender”) and ZOGENIX, INC., a Delaware corporation (“Borrower”), amends and restates
the terms of that certain Loan and Security Agreement by and among Oxford, Administrative Agent, the Lenders party thereto and Borrower, dated as of June 30, 2008 (as amended from time to time, including by that certain Amended and Restated
Loan and Security Agreement dated as of July 1, 2010, the “Original Agreement”), and provides the terms on which Lenders shall lend to Borrower and Borrower shall repay Lenders. The parties agree as follows: 

1 ACCOUNTING AND OTHER TERMS 
 Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not otherwise defined in this Agreement
shall have the meanings set forth in Section 14. All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. 

2 LOAN AND TERMS OF PAYMENT 
 2.1 Promise to Pay. Borrower hereby unconditionally promises to pay Administrative Agent, for the benefit of the Lenders, the outstanding principal amount of all Credit Extensions and accrued and
unpaid interest thereon and any other amounts due hereunder as and when due in accordance with Section 2.3 of this Agreement. 
 2.1.1 Growth Capital Loan Facility. 
 (a) Availability. On or about
the date of the Original Agreement, Lenders, severally and not jointly, made an advance (the “Growth Capital Advance”), according to each Lender’s pro rata share, and in the aggregate amount of the Growth Capital Loan
Commitment (based upon the respective Growth Capital Loan Commitment Percentage of each Lender). When repaid, the Growth Capital Advance may not be re-borrowed. 
 (b) Repayment. Subject to the terms and conditions of this Agreement, Borrower shall continue to make monthly payments of interest only, in arrears, commencing on the first day of the month
following the month in which the Growth Capital Funding Date occurred and continuing thereafter on the first day of each successive calendar month (each a “Growth Capital Interest Only Payment Date”) during the Growth Capital
Interest Only Period. Commencing on the Growth Capital Amortization Date and continuing thereafter during the Growth Capital Repayment Period on the first day of each successive calendar month (each a “Growth Capital Scheduled Payment
Date”), Borrower shall make thirty (30) equal monthly payments of principal and interest, in arrears, which would fully amortize the outstanding amount of the Growth Capital Advance as of the Growth Capital Amortization Date over the
Growth Capital Repayment Period (individually, the “Growth Capital Scheduled Payment”, and collectively, “Growth Capital Scheduled Payments”). All unpaid principal and accrued and unpaid interest and all other
amounts due on account of the Growth Capital Advance shall be due and payable in full on the Maturity Date. The Growth Capital Advance may only be prepaid in accordance with Sections 2.1.1(c) - 2.1.1(e). Each Growth Capital Interest Only
Payment Date and each Growth Capital Scheduled Payment Date are sometimes referred to as a “Growth Capital Payment Date.” 
 (c) Mandatory Prepayment Upon an Acceleration. If the Growth Capital Advance is accelerated following the occurrence of an Event of Default in accordance with the terms of this Agreement, Borrower
shall immediately pay to Administrative Agent, for the benefit of the Lenders according to each Lender’s 

 
pro rata share (based upon the respective Growth Capital Loan Commitment Percentage of each Lender), an amount equal to the sum of: (i) all outstanding principal plus accrued and unpaid
interest on the Growth Capital Advance, (ii) the Growth Capital Final Payment, (iii) the Growth Capital Prepayment Fee, plus (iv) all other sums, if any, that shall have become due and payable, including interest at the Default Rate
with respect to any past due amounts. Notwithstanding (but without duplication with) the foregoing, Borrower shall pay to Administrative Agent, for the benefit of the Lenders according to each Lender’s pro rata share (based upon the respective
Growth Capital Loan Commitment Percentage of each Lender), on the Maturity Date, the Growth Capital Final Payment. 
 (d)
Permitted Prepayment. Borrower shall have the option to prepay all, but not less than all, of the Growth Capital Advance advanced by Lenders under this Agreement, provided Borrower, (i) provides written notice to Administrative Agent
(who will forward the same to each Lender), of its election to prepay the Growth Capital Advance at least ten (10) days prior to such prepayment, and (ii) pays, on the date of such prepayment (A) all outstanding principal plus accrued
interest, (B) the Growth Capital Prepayment Fee, (C) the Growth Capital Final Payment, plus (D) all other sums that have become due and payable, including Lenders Expenses, if any, and interest at the Default Rate with respect to any
past due amounts. Notwithstanding any provision herein to the contrary, the Growth Capital Prepayment Fee shall not apply to or be assessed upon any prepayment made by Borrowers if such payments were required by Administrative Agent to be made
pursuant to Section 6.5. 
 (e) Application of Mandatory Prepayments. All principal amounts required to be
paid pursuant to Sections 2.1.1 (c) or (d) shall be applied to the Growth Capital Advance applied in the inverse order of maturity to the remaining Growth Capital Scheduled Payments thereof. 

2.1.2 Revolving Advances. 
 (a) Availability. Subject to the terms and conditions of this Agreement and to deduction of the Letter of Credit Reserve, Lenders agree, severally and not jointly, to lend to Borrower from time to
time prior to the Maturity Date, according to each Lender’s pro rata share of the Revolving Line (based upon the respective Revolving Commitment Percentage of each Lender), Revolving Advances not to exceed the Availability Amount. Amounts
borrowed hereunder may be repaid and, prior to the Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 
 (b) Termination; Repayment. The Revolving Line terminates on the Maturity Date, when the principal amount of all Revolving Advances, the unpaid interest thereon, and all other Obligations relating
to the Revolving Line (including but not limited to the Revolving Line Termination Fee) shall be immediately due and payable. 

2.1.3 Letters of Credit Sublimit. 
 (a) Letters of Credit. As part of the Revolving Line, Bank shall issue or have issued Letters of Credit for Borrower’s account. Such aggregate amounts utilized hereunder shall at all times
reduce the amount otherwise available for Revolving Advances under the Revolving Line. The face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) may not exceed One Million
Five Hundred Thousand Dollars ($1,500,000), inclusive of Credit Extensions relating to Sections 2.1.4 and 2.1.5. The aggregate amount available to be used for the issuance of Letters of Credit may not exceed (i) the lesser of
(A) the Revolving Line or (B) the Borrowing Base, minus (ii) the outstanding principal amount of any Revolving Advances (including any amounts used for Cash Management Services and the face amount of any outstanding Letters of Credit
(including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) and minus (iii) the FX Reduction Amount. If, on the Maturity Date, there are any outstanding Letters of Credit, then on such date (through the date such
Letters of Credit continue to be outstanding) Borrower shall provide to Administrative Agent cash collateral in an amount equal to 105% of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in
connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to said Letters of Credit. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and
shall be subject to the terms and conditions of Bank’s standard Application and Letter of Credit Agreement (the “Letter of Credit Application”). Borrower agrees to execute any further documentation in connection with the
Letters of Credit as Bank may reasonably request. Borrower further agrees to be bound by the regulations and interpretations of the issuer of any Letters of Credit 

 

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guarantied by Bank and opened for Borrower’s account or by Bank’s interpretations of any Letter of Credit issued by Bank for Borrower’s account, and Borrower understands and agrees
that Lenders shall not be liable for any error, negligence, or mistake, whether of omission or commission in following Borrower’s instructions or those contained in the Letters of Credit or any modifications, amendments, or supplements thereto.

 (b) Letter of Credit Participations. Bank irrevocably agrees to grant and hereby grants to each Lender, and, to induce
the Bank to issue Letters of Credit, each Lender irrevocably agrees to accept and purchase and hereby accepts and purchases from Bank, on the terms and conditions set forth below, for such Lender’s own account and risk an undivided interest
equal to such Lender’s Revolving Commitment Percentage in Bank’s obligations and rights under and in respect of each Letter of Credit and the amount of each draft paid by Bank thereunder. Each Lender agrees with Bank that, if a draft is
paid under any Letter of Credit for which Bank is not reimbursed in full by the Borrower pursuant to Section 2.1.3(c), such Lender shall pay to Bank upon demand at Bank’s address for notices specified herein an amount equal to such
Lender’s Revolving Commitment Percentage of the amount of such draft, or any part thereof, that is not so reimbursed. Each Lender’s obligation to pay such amount shall be absolute and unconditional and shall not be affected by any
circumstance, including (i) any setoff, counterclaim, recoupment, defense or other right that such Lender may have against Bank, the Borrower or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or
an Event of Default or the failure to satisfy any of the other conditions specified in Sections 3.1 or 3.2, (iii) any adverse change in the condition (financial or otherwise) of the Borrower, (iv) any breach of this Agreement
or any other Loan Document by the Borrower or any other Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. 

(c) Reimbursement. 
 (i) If Bank shall make any disbursement in respect of a Letter of Credit, the Borrower shall pay or cause to be paid to Bank an amount equal to the entire amount of such disbursement not later than the
immediately following Business Day. Each such payment shall be made to Bank at its address for notices referred to herein in Dollars and in immediately available funds. 
 (ii) If Bank shall not have received from the Borrower the payment that it is required to make pursuant to Section 2.1.3(c)(i) with respect to a Letter of Credit within the time specified in
such Section, Bank will promptly notify the Administrative Agent of the disbursement and the Administrative Agent will promptly notify each Lender of such disbursement and its Revolving Commitment Percentage thereof, and each Lender shall pay to
Bank upon demand at Bank’s address for notices specified herein an amount equal to such Lender’s Revolving Commitment Percentage of such disbursement; upon such payment pursuant to this paragraph to reimburse Bank for any disbursement, the
Borrower shall be required to reimburse the Lenders for such payments (including interest accrued thereon from the date of such payment until the date of such reimbursement at the rate applicable to Revolving Advances under the Revolving Line) on
demand and the Lenders shall be deemed to have extended, and the Borrower shall be deemed to have accepted, a Revolving Advance under the Revolving Line in the aggregate principal amount of such payment without further action on the part of any
party, and the Letter of Credit sublimit shall be permanently reduced by such amount; any amount so paid by Lenders pursuant to this paragraph shall, on and after the payment date thereof, be deemed to be Revolving Advances under the Revolving Line
for all purposes hereunder. 
 (d) Letter of Credit Payments. If any draft shall be presented for payment under any
Letter of Credit, Bank shall promptly notify the Borrower and the Administrative Agent of the date and amount thereof. The responsibility of Bank to the Borrower in connection with any draft presented for payment under any Letter of Credit shall, in
addition to any payment obligation expressly provided for in such Letter of Credit, be limited to determining that the documents (including each draft) delivered under such Letter of Credit in connection with such presentment are substantially in
conformity with such Letter of Credit. If Bank shall make any disbursement in respect of a Letter of Credit, then, unless either the Borrower shall reimburse such disbursement in full within the time period specified in Section 2.1.3(c)
or the Lenders shall reimburse such disbursement in full on such date as provided in Section 2.1.3(c) in each case the unpaid amount thereof shall bear interest for the account of Bank, for each day from and including the date of such
disbursement to but excluding the earlier of the date of payment by the Borrower, at the rate per annum that would apply to such amount if such amount were a Revolving Advance under the Revolving Line; provided that the provisions of
Section 2.1.3(c)(ii) shall be applicable to any such amounts not paid when due. 
  

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 (e) Obligations Absolute. The Borrower’s obligations under this
Section 2.1.3 shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment that the Borrower may have or have had against Bank, any Lender, any beneficiary of a
Letter of Credit or any other Person. The Borrower also agrees with each Lender that no Lender shall be responsible for, and the Borrower’s obligations hereunder shall not be affected by, among other things, the validity or genuineness of
documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute between or among the Borrower and any beneficiary of any Letter of Credit or any other party to which such
Letter of Credit may be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee. No Lender shall be liable for any error, omission, interruption or delay in transmission, dispatch
or delivery of any message or advice, however transmitted, in connection with any Letter of Credit, except for errors or omissions found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such Lender. The Borrower agrees that any action taken or omitted by any Lender under or in connection with any Letter of Credit or the related drafts or documents, if done in the absence of gross negligence or
willful misconduct, shall be binding on the Borrower and shall not result in any liability of any Lender to the Borrower. 
 In
addition to amounts payable as elsewhere provided in the Agreement, Borrower hereby agrees to pay and to protect, indemnify, and save each Lender harmless from and against any and all claims, demands, liabilities, damages, losses, costs, charges and
expenses (including reasonable attorneys’ fees and allocated costs of internal counsel) that any Lender may incur or be subject to as a consequence, direct or indirect, of (A) the issuance of any Letter of Credit, or (B) the failure
of Bank or of any Lender to honor a demand for payment under any Letter of Credit thereof as a result of any act or omission, whether rightful or wrongful, of any present or future de jure or de facto government or Governmental Authority, in each
case other than to the extent solely as the result of the gross negligence or willful misconduct of Bank or such Lender (as finally determined by a court of competent jurisdiction). 

(f) Borrower may request that Bank issue a Letter of Credit payable in a Foreign Currency. If a demand for payment is made under any such
Letter of Credit, Bank shall treat such demand as an Revolving Advance to Borrower of the equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges) in Dollars at the
then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency. 
 (g) To guard against fluctuations in currency exchange rates, upon the issuance of any Letter of Credit payable in a Foreign Currency, Bank shall create a reserve (the “Letter of Credit
Reserve”) under the Revolving Line in an amount equal to ten percent (10%) of the face amount of such Letter of Credit. The amount of the Letter of Credit Reserve may be adjusted by Bank from time to time to account for fluctuations in
the exchange rate. The availability of funds under the Revolving Line shall be reduced by the amount of such Letter of Credit Reserve for as long as such Letter of Credit remains outstanding. 

2.1.4 Foreign Exchange Sublimit. As part of the Revolving Line, Borrower may enter into foreign exchange contracts with Lenders
under which Borrower commits to purchase from or sell to Lenders (in accordance with their Revolving Commitment Percentages) a specific amount of Foreign Currency (each, a “FX Forward Contract”) on a specified date (the
“Settlement Date”). FX Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent (10%) of each outstanding FX Forward
Contract in a maximum aggregate amount equal to One Hundred Fifty Thousand Dollars ($150,000) (such maximum shall be the “FX Reserve”). The aggregate amount of FX Forward Contracts at any one time may not exceed ten (10) times
the amount of the FX Reserve. The amount otherwise available for Credit Extensions under the Revolving Line shall be reduced by an amount equal to ten percent (10%) of each outstanding FX Forward Contract (the “FX Reduction
Amount”). Any amounts that are not paid by Borrower for any FX Forward Contracts will be treated as Revolving Advances under the Revolving Line and will accrue interest at the interest rate applicable to Revolving Advances. 

 

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 2.1.5 Cash Management Services Sublimit. Borrower may use up to One Million Five
Hundred Thousand Dollars ($1,500,000), inclusive of Credit Extensions relating to Sections 2.1.3 and 2.1.4 of the Revolving Line for Bank’s cash management services which may include merchant services, direct deposit of payroll,
business credit card, and check cashing services identified in Bank’s various cash management services agreements (collectively, the “Cash Management Services”). Any amounts Bank pays on behalf of Borrower for any Cash
Management Services will be treated as Revolving Advances under the Revolving Line and will accrue interest at the interest rate applicable to Revolving Advances. 
 2.2 Overadvances. If, at any time, the sum of (a) the outstanding principal amount of any Revolving Advances (including any amounts used for Cash Management Services), plus (b) the face
amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), plus (c) the FX Reduction Amount, exceeds the lesser of either the Revolving Line or the Borrowing Base (such
amount being an “Overadvance”), Borrower shall immediately pay to Lenders in cash the ratable amount (according to each such Lender’s Revolving Commitment Percentage) of such Overadvance. Without limiting Borrower’s
obligation to repay Lenders any amount of the Overadvance, Borrower agrees to pay Lenders interest on the outstanding amount of any Overadvance, on demand, at the Default Rate. 

2.3 Payment of Interest on the Credit Extensions. 
 (a) Interest. 
 (i) Growth Capital Advance. Subject to
Section 2.3(b), the Growth Capital Advance shall bear interest on the outstanding principal amount thereof from the Growth Capital Funding Date until paid in full at a fixed rate per annum equal to 12.06%. Pursuant to the terms hereof,
interest on the Growth Capital Advance shall be paid in arrears on the first day of each month. Interest shall also be paid on the date of any prepayment of the Growth Capital Advance pursuant to this Agreement for the portion of the Growth Capital
Advance so prepaid and upon payment (including prepayment) in full thereof. All accrued but unpaid interest on the Growth Capital Advance shall be due and payable on the Maturity Date. Interest shall accrue on the Credit Extension for the day on
which the Credit Extension is made, and shall not accrue on the Credit Extension, or any portion thereof, for the day on which the Credit Extension or such portion is paid. 
 (ii) Revolving Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the greater of
3.29% above the Prime Rate or 7.29%, which interest shall be payable monthly in accordance with Section 2.3(h) below. 
 (b) Default Interest. After an Event of Default, Obligations shall bear interest at a rate per annum which is the rate that is otherwise applicable thereto, plus four percent (4.00%) (the
“Default Rate”). Payment or acceptance of the increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or
otherwise prejudice or limit any rights or remedies of any Lender. 
 (c) 360-Day Year. Interest shall be computed on the
basis of a 360-day year of twelve 30-day months. 
 (d) Debit of Accounts. Each Lender may debit any of Borrower’s
deposit accounts with Silicon Valley Bank, through automatic debit of such accounts, Automated Clearinghouse or other transfers, for scheduled principal and interest payments or any other amounts Borrower owes Administrative Agent (or any of the
Lenders) when due. Administrative Agent will promptly notify Borrower when it debits Borrower’s accounts. These debits shall not constitute a set-off. 
 (e) Payments. 
 (i) Unless otherwise provided, interest is
payable monthly on the first calendar day of each month. Payments of principal and/or interest received after 4:00 p.m. Eastern time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is
not a Business Day, the payment is due the next Business Day and additional fees or interest, as applicable, shall continue to accrue. 
  

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 (ii) All payments to be made by the Borrower of principal, interest, fees
and other Obligations shall be absolute and unconditional and shall be made without condition or deduction for any counterclaim, defense, recoupment, setoff or rescission. Except as otherwise expressly provided herein, all payments by the Borrower
hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and in immediately available funds not later than 4:00 p.m. Eastern
time on the date specified herein. The Administrative Agent will promptly distribute to each Lender its pro rata share (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s
Lending Office. All payments received by the Administrative Agent after 4:00 p.m. Eastern time shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. 

(iii) Unless the Borrower or any Lender has notified the Administrative Agent (who will forward the same to each Lender),
prior to the date any payment is required to be made by it to the Administrative Agent hereunder, that the Borrower or such Lender, as the case may be, will not make such payment, the Administrative Agent and each Lender may assume that the Borrower
or such Lender, as the case may be, has timely made such payment and may (but shall not be so required to), in reliance thereon, make available a corresponding amount to the Person entitled thereto. If and to the extent that such payment was not in
fact made to the Administrative Agent in immediately available funds, then: 
 (A) if the Borrower failed to
make such payment, each Lender shall forthwith on demand repay to the Administrative Agent the portion of such assumed payment that was made available to such Lender in immediately available funds, together with interest thereon in respect of each
day from and including the date such amount was made available by the Administrative Agent to such Lender to the date such amount is repaid to the Administrative Agent in immediately available funds at the Federal Funds Rate from time to time in
effect; and 
 (B) if any Lender failed to make such payment, such Lender shall forthwith on demand pay to the
Administrative Agent the amount thereof in immediately available funds, together with interest thereon for the period from the date such amount was made available by the Administrative Agent to the Borrower to the date such amount is recovered by
the Administrative Agent at a rate per annum equal to the Federal Funds Rate from time to time in effect. 
 (f) Sharing of
Payments. If, other than as expressly provided elsewhere herein, any Lender shall obtain on account of the Credit Extensions made by it, any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) in
excess of its pro rata share (or other share contemplated hereunder) thereof, such Lender shall immediately (a) notify the Administrative Agent and each other Lender of such fact, and (b) purchase from the other Lenders such participations
in the Credit Extensions made by them as shall be necessary to cause such purchasing Lender to share the excess payment in respect of such Credit Extensions or such participations, as the case may be, pro rata with each of them; provided, however,
that if all or any portion of such excess payment is thereafter recovered from the purchasing Lender under any of the circumstances described in Section 12.11 (including pursuant to any settlement entered into by the purchasing Lender in
its discretion), such purchase shall to that extent be rescinded and each other Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to such paying Lender’s ratable share (according to the
proportion of (i) the amount of such paying Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total
amount so recovered, without further interest thereon. The Borrower agrees that any Lender so purchasing a participation from another Lender may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of
set-off, but subject to Section 9.5) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation. The Administrative Agent will keep

  

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records (which shall be conclusive and binding in the absence of manifest error) of participations purchased under this Section and will in each case notify the Lenders following any such
purchases or repayments. Each Lender that purchases a participation pursuant to this Section shall from and after such purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with
respect to the portion of the Obligations purchased to the same extent as though the purchasing Lender were the original owner of the Obligations purchased. 
 (g) Evidence of Debt. The Credit Extensions made by each Lender shall be evidenced by Notes in the form of Exhibit E and/or other records maintained by such Lender and by the Administrative
Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to the Borrower and the
interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations. 

(h) Payment; Interest Computation; Float Charge. Interest on the Revolving Line is payable monthly on the last calendar day of
each month and shall be computed on the basis of a 360-day year for the actual number of days elapsed. In computing interest, (i) all Payments received after 12:00 p.m. Pacific time on any day shall be deemed received at the opening of business
on the next Business Day, and (ii) the date of the making of any Credit Extension shall be included and the date of payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is made,
such day shall be included in computing interest on such Credit Extension. Changes to the interest rate of any Credit Extension based on changes to the Prime Rate shall be effective on the effective date of any change to the Prime Rate and to the
extent of any such change. In addition, Lenders shall be entitled to charge Borrower a “float” charge in an amount equal to two (2) Business Days’ interest, at the interest rate applicable to the Revolving Advances whether or not
any Revolving Advances are outstanding, on all Payments received by each Lender. The float charge for each month shall be payable on the last day of the month. Lenders shall not, however, be required to credit Borrower’s account for the amount
of any item of payment which is unsatisfactory to any Lender in its good faith business judgment, and Lenders may charge Borrower’s Designated Deposit Account for the amount of any item of payment which is returned unpaid. 

2.4 Fees. Borrower shall pay to Administrative Agent, for the benefit of the Lenders: 

(a) Growth Capital Loan Fee. A fully earned, non refundable loan fee (the “Growth Capital Loan Fee”) of Two
Hundred Fifty Thousand Dollars ($250,000) (to be shared between Oxford and Bank pursuant to their respective Growth Capital Loan Commitment Percentage). Administrative Agent and Lenders acknowledge and confirm receipt of payment by Borrower of the
Growth Capital Loan Fee prior to the Original Effective Date; 
 (b) Growth Capital Final Payment. The Growth Capital
Final Payment when due on the Maturity Date or pursuant to the terms of Section 2.1.1, to be shared by the Lenders in accordance with the Growth Capital Loan Commitment Percentage of each Lender on such date; 

(c) Growth Capital Prepayment Fee. The Growth Capital Prepayment Fee, if any, when due hereunder, to be shared by the Lenders in
accordance with the Growth Capital Loan Commitment Percentage of each Lender on such date; 
 (d) Lenders Expenses. All
Lenders Expenses (including reasonable attorneys’ fees and expenses incurred in connection with the documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due; 

(e) Revolving Commitment Fee. A fully earned, non-refundable commitment fee (the “Revolving Commitment Fee”) on
account of the Revolving Line in the amount of $175,000, of which $50,000 was received on the Effective Date of the Original Agreement (the “Original Effective Date”), an additional $50,000 shall be paid on the first and second
anniversaries of the Original Effective Date, and an additional $25,000 shall be paid on the third anniversary of the Original Effective Date; in each case, to be shared among the Lenders pro rata according to their Revolving Commitment Percentages
of the Revolving Line; 
  

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 (f) Unused Revolving Line Facility Fee. A fee (the “Unused Revolving Line
Facility Fee”), payable monthly, in arrears, on a calendar year basis, in an amount equal to one half of one percent (0.50%) per annum of the average unused portion of the Revolving Line, as determined by Administrative Agent, for the
ratable benefit of the Lenders according to their Revolving Commitment Percentages. The unused portion of the Revolving Line, for the purposes of this calculation, shall include amounts reserved under Section 2.1.4 and/or
Section 2.1.5. Borrower shall not be entitled to any credit, rebate or repayment of any Unused Revolving Line Facility Fee previously earned by any Lender pursuant to this Section notwithstanding any termination of the Agreement, or
suspension or termination of Lenders’ obligation to make loans and advances hereunder; 
 (g) Revolving Line Termination
Fee. A fee (the “Revolving Line Termination Fee”), in the event of termination of the Revolving Line prior to the Maturity Date (whether at Borrower’s election, or at any Lender’s election due to the occurrence and
continuance of an Event of Default), in addition to the payment of any other expenses or fees then-owing, payable to Lenders, pro rata according to their Revolving Commitment Percentages of the Revolving Line, a termination fee in an amount equal to
(x) Three Hundred Thousand Dollars ($300,000), if such termination occurs prior to the first anniversary of the Original Effective Date; (y) Two Hundred Thousand Dollars ($200,000), if such termination occurs after the first anniversary of
the Original Effective Date but on or prior to the second anniversary of the Original Effective Date; and (z) One Hundred Thousand Dollars ($100,000), if such termination occurs thereafter; provided that (i) Borrower may terminate the
Revolving Line effective three (3) Business Days after written notice of termination is given to Lenders; and (ii) notwithstanding any such termination, Lenders’ liens and security interests in the Collateral shall continue until
Borrower fully satisfies its Obligations; 
 (h) Collateral Monitoring Fee. A monthly collateral monitoring fee of $750,
payable in arrears on the last day of each month (prorated for any partial month at the beginning and upon termination of this Agreement), solely for the benefit of Bank; and 
 (i) Variance Fee. A fully earned, non-refundable fee, due and payable in full on the Effective Date, in the amount of $150,000, of which $95,000 shall be for the account of Oxford and $55,000 shall
be for the account of Bank. 
 2.5 Taxes. 
 (a) Any and all payments by Borrower to or for the account of the Administrative Agent or any Lender under any Loan Document shall be made free and clear of and without deduction for any and all present
or future taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges imposed by any Governmental Authority, and all liabilities with respect thereto, excluding, Excluded Taxes (all such non-Excluded Taxes) duties,
levies, imposts, deductions, assessments, fees, withholdings or similar charges, and liabilities imposed by any Governmental Authority being hereinafter referred to as “Taxes”). If Borrower shall be required by any Laws to deduct
any Taxes from or in respect of any sum payable under any Loan Document to the Administrative Agent or any Lender, (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable
to additional sums payable under this Section), each of the Administrative Agent and such Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) Borrower shall make such deductions,
(iii) Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable Laws, and (iv) within thirty (30) days after the date of such payment, Borrower shall furnish to the Administrative
Agent (which shall forward the same to such Lender) the original or a certified copy of a receipt evidencing payment thereof or if no receipt is available, other evidence of such payment reasonably satisfactory to the Administrative Agent or the
Lenders. 
 (b) In addition, the Borrower agrees to pay any and all present or future stamp, court or documentary taxes and any
other excise or property taxes or charges or similar levies which arise from any payment made under any Loan Document or from the execution, delivery, performance, enforcement or registration of, or otherwise with respect to, any Loan Document
(hereinafter referred to as “Other Taxes”). 
 (c) If the Borrower shall be required to deduct or pay any Taxes
or Other Taxes from or in respect of any sum payable under any Loan Document to the Administrative Agent or any Lender, the Borrower shall also pay to the Administrative Agent or to such Lender, as the case may be, at the time interest is paid, such

  

 8 

 
additional amount that the Administrative Agent or such Lender specifies is necessary to preserve the after-tax yield (after factoring in all taxes, including taxes imposed on or measured by net
income) that the Administrative Agent or such Lender would have received if such Taxes or Other Taxes had not been imposed. Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in
which the Borrower is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan Document shall deliver to the Borrower (with a copy to the Administrative Agent), at the
time or times prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate of withholding. In addition, any Lender, if requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the
Administrative Agent (including Internal Revenue Service Form W-9) as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. 

Without limiting the generality of the foregoing, in the event that the Borrower is resident for tax purposes in the United States, any
Foreign Lender shall deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to
time thereafter upon the request of the Borrower or the Administrative Agent), whichever of the following is applicable: 
 (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the United States is a party, 

(ii) duly completed copies of Internal Revenue Service Form W-8ECI, 

(iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c)
of the IRC, (x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the IRC, (B) a “10 percent shareholder” of the Borrower within the meaning of
section 881(c)(3)(B) of the IRC, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the IRC and (y) duly completed copies of Internal Revenue Service Form W-8BEN, or 

(iv) any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in United States
Federal withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower to determine the withholding or deduction required to be made. 

(d) The Borrower agrees to indemnify the Administrative Agent and each Lender for (i) the full amount of Taxes and Other Taxes
(including any Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section 2.5) paid by the Administrative Agent and such Lender, (ii) paid penalties, interest and expenses arising from or with
respect to the obligations under the preceding clause (i) and not caused by actions within the control of the Administrative Agent or Lender, as applicable, in each case whether or not such Taxes or Other Taxes were correctly or legally imposed
or asserted by the relevant Governmental Authority, so long as such amounts have accrued on or after the day which is two hundred seventy (270) days prior to the date on which Lender or Administrative Agent first made demand therefor. Payment
under this subsection (d) shall be made within thirty (30) days after the date the Lender or the Administrative Agent makes a demand therefor. 
 (e) If any Governmental Authority asserts that the Administrative Agent did not properly withhold or backup withhold, as the case may be, any tax or other amount from payments made to or for the account
of any Lender, such Lender shall indemnify the Administrative Agent therefor, including all penalties and interest, any taxes imposed by any jurisdiction on the amounts payable to the Administrative Agent under this Section 2.5, and
costs and expenses (including Lenders Expenses) of the Administrative Agent. The obligation of the Lenders under this Section shall survive the termination of all Growth Capital Loan Commitments to make Credit Extensions, repayment of all
Obligations and the resignation of the Administrative Agent. 
  

 9 

 (f) If the Administrative Agent or any Lender receives a refund of any Taxes or Other Taxes
as to which it has been indemnified by the Borrower and with respect to which the Borrower has paid additional amounts pursuant to this Section 2.5, it shall pay to the Borrower an amount equal to such refund (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this Section 2.5 with respect to the Taxes or Other Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses of the Administrative Agent or
such Lender, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that the Borrower, upon the request of the Administrative Agent or such Lender, agrees
to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required
to repay such refund to such Governmental Authority. 
 2.6 Increased Cost and Reduced Return; Capital Adequacy.

 (a) If any change in Law occurs after the Effective Date which shall: 

(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender; 
 (ii) subject any Lender to any tax of any kind whatsoever with respect to this Agreement, or change the basis of taxation of payments to such Lender in respect thereof (except for Taxes or Other Taxes
covered by Section 2.5 and the imposition of, or any change in the rate of, any Excluded Taxes payable by such Lender); or 
 (iii) impose on any Lender any other condition, cost or expense affecting this Agreement made by such Lender; 
 (b) and the result of any of the foregoing shall be to reduce the amount of any sum received or receivable by such Lender (whether of principal, interest or any other amount) then, upon request of such
Lender, the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered, so long as such costs have accrued on or after the day which is two hundred
seventy (270) days prior to the date on which such Lender first made demand therefor. 
 (c) Without duplication of amounts
payable pursuant to paragraphs (a) and (b) above, if any Lender determines that any change in Law affecting such Lender or any lending officer of such Lender or Lender’s holding company, if any, regarding capital requirements has or
would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the Growth Capital Loan Commitment and/or the Revolving Line of
such Lender or the Credit Extensions made by such Lender to a level below that which such Lender or such Lender’s holding company could have achieved but for such change in Law (taking into consideration such Lender’s policies and the
policies of such Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for
any such reduction suffered. 
 2.7 Matters Applicable to all Requests for Compensation. A certificate of the
Administrative Agent or any Lender claiming compensation under this Article 2 and setting forth the additional amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest error. In determining such amount, the
Administrative Agent or such Lender may use any reasonable averaging and attribution methods. 
 3 CONDITIONS OF LOANS

 3.1 Conditions Precedent to Initial Credit Extension. Lenders’ obligation to make the initial Credit Extension
is subject to the condition precedent that Administrative Agent shall have received (who will forward the same to each Lender), in form and substance satisfactory to Administrative Agent, such documents, and completion of such other matters, as
Administrative Agent or any Lender may reasonably deem necessary or appropriate, including, without limitation: 
 (a) duly
executed original signatures to this Agreement; 
  

 10 

 (b) a duly executed original signature to the Warrant to be issued to each of Oxford and
Bank, receipt of which hereby is acknowledged by Lenders; 
 (c) duly executed original signatures to the Notes in favor of
Oxford and Bank; 
 (d) duly executed original signatures to the Control Agreement, receipt of which hereby is acknowledged by
Lenders; 
 (e) Borrower’s Operating Documents and a good standing certificate of Borrower certified by the Secretary of
State of the States of Delaware and California as of a date no earlier than thirty (30) days prior to the duly executed original signatures to the completed Borrowing Resolutions for Borrower; 

(f) certified copies, dated as of a recent date, of financing statement searches, as Administrative Agent or any Lender shall request,
accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the Credit Extension, will be terminated or
released; 
 (g) two (2) Perfection Certificate(s) executed by Borrower, receipt of which hereby is acknowledged by
Lenders; 
 (h) a legal opinion of Borrower’s counsel, addressed to the Lenders, dated as of the Effective Date, together
with the duly executed original signatures thereto, receipt of which hereby is acknowledged by Lenders; 
 (i) a copy of
Borrower’s executed Investors’ Rights Agreement and any amendments thereto, receipt of which hereby is acknowledged by Lenders; 
 (j) insurance policies and/or endorsements required pursuant to Section 6.5 hereof, receipt of which hereby is acknowledged by Lenders; 

(k) payment of the fees and Lenders Expenses then due as specified in Section 2.4 hereof; 

(l) each document (including any UCC-1 financing statements) required by the Loan Documents or under Law or reasonably requested by the
Administrative Agent or any Lender to be filed, registered or recorded in order to create in favor of the Administrative Agent, for its benefit and the benefit of the Lenders, a perfected Lien on the Collateral described therein, prior and superior
in right to any other Person (subject only to Permitted Liens that may have superior priority to Administrative Agent’s Lien as permitted under this Agreement), which shall be in proper form for filing, registration or recordation; 

(m) there exists no material pending or threatened Proceeding against the Borrower or any of its Affiliates or respective assets in any
court or administrative forum; 
 (n) a certificate from the Chief Financial Officer of the Borrower attesting that the Borrower
is solvent before and after giving effect to the funding of the Credit Extensions (and the application of proceeds thereof); 

(o) timely receipt by the Administrative Agent (who will forward the same to each Lender), of an executed Payment/Advance Form,
Disbursement Letter and Transaction Report; 
  

 11 

 (p) the representations and warranties in Section 5 shall be true in all
material respects on the date of the Payment/Advance Form, the Disbursement Letter and the Transaction Report, and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in
all material respects as of such date, and no Default or Event of Default shall have occurred and be continuing or result from the Credit Extension; 
 (q) after giving effect to each such Credit Extension, the total outstanding Growth Capital Advance shall not exceed the Growth Capital Loan Commitment and the total outstanding Revolving Advances shall
not exceed the Availability Amount; 
 (r) duly executed copies of the Effective Date Subordinated Debt Documents, receipt of
which hereby is acknowledged by Lenders; 
 (s) evidence of the receipt by Borrower of the Effective Date Subordinated Debt,
receipt of which hereby is acknowledged by Lenders; 
 (t) the Effective Date Subordination Agreement, receipt of which hereby
is acknowledged by Lenders; 
 (u) duly executed original signatures to the Post Closing Letter; and 

(v) each Lender has determined in such Lender’s sole discretion, that there has not been a Material Adverse Change. 

3.2 Covenant to Deliver. Borrower agrees to deliver to Administrative Agent (who will forward the same to each Lender), each item
required to be delivered to Administrative Agent under this Agreement as a condition to any Credit Extension. Borrower expressly agrees that the making of the Credit Extension prior to the receipt by Administrative Agent and each Lender of any such
item shall not constitute a waiver by Administrative Agent or any Lender of Borrower’s obligation to deliver such item, and any such Credit Extension in the absence of a required item shall be made in Lender’s sole discretion. 

3.3 Procedures for Borrowing. 
 (a) Intentionally Omitted. 
 (b) Revolving Advances. Subject to the
prior satisfaction of all other applicable conditions to the making of an Revolving Advance set forth in this Agreement, to obtain an Revolving Advance (other than Revolving Advances under Sections 2.1.2 or 2.1.4), Borrower shall
notify Bank (who will forward the same to each Lender) (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Pacific time on the Funding Date of the Revolving Advance. Together with such electronic or
facsimile notification, Borrower shall deliver to Bank (who will forward the same to each Lender) by electronic mail or facsimile a completed Transaction Report executed by a Responsible Officer or his or her designee. Each Lender shall credit
Revolving Advances to the Designated Deposit Account, according to their Revolving Commitment Percentages of the Revolving Line. Lenders may make Revolving Advances under this Agreement based on instructions from a Responsible Officer or his or her
designee or without instructions if the Revolving Advances are necessary to meet Obligations which have become due. Lenders may rely on any telephone notice given by a person whom a Lender believes is a Responsible Officer or designee. 

4 CREATION OF SECURITY INTEREST 
 4.1 Grant of Security Interest. Borrower hereby grants to the Administrative Agent, for the benefit of the Lenders, to secure the payment and performance in full of all of the Obligations, a
continuing security interest in, and pledges to the Administrative Agent, for the benefit of the Lenders, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. Borrower
represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected 
  

 12 

 
security interest in the Collateral (excluding, but only until the covenant in Section 6.22 is required to be satisfied, the Additional European Collateral) (subject only to Permitted
Liens that may have superior priority to the Administrative Agent’s Lien under this Agreement). If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify the Administrative Agent (who will forward the same to each
Lender), in a writing signed by Borrower of the general details thereof and grant to the Administrative Agent, for the benefit of the Lenders, in such writing a security interest therein and in the proceeds thereof to secure the payment and
performance in full of all the Obligations, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Administrative Agent. If this Agreement is terminated, the Administrative Agent’s Lien in
the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Lenders’ obligations to make Credit Extensions has
terminated, the Administrative Agent shall, at Borrower’s sole cost and expense, release its Liens in the Collateral granted hereunder and all rights therein shall revert to Borrower. 

4.2 Authorization to File Financing Statements. Borrower hereby authorizes Administrative Agent, on behalf of the Lenders, to file
financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect Lenders’ interest or rights hereunder, including a notice that any disposition of the Collateral (except as permitted herein) by either
Borrower or any other Person, shall be deemed to violate the rights of Lenders under the Code. 
 5 REPRESENTATIONS AND
WARRANTIES 
 Borrower represents and warrants as follows: 

5.1 Due Organization; Authorization; Power and Authority. Borrower and each of its Subsidiaries are duly existing and in good
standing in their respective jurisdictions of formation and are qualified and licensed to do business and are in good standing in any jurisdiction in which the conduct of their business or their ownership of property requires that they be qualified
except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. In connection with this Agreement, Borrower has delivered to Administrative Agent (who has sent the same to each
Lender), a completed certificate in the form provided by Administrative Agent signed by Borrower, entitled “Perfection Certificate”. Borrower represents and warrants to Lenders that as of the Effective Date (a) Borrower’s
exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection
Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none; (d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one,
its chief executive office as well as Borrower’s mailing address (if different than its chief executive office); (e) Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation,
organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete in
all material respects (it being understood and agreed that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions in this
Agreement). 
 The execution, delivery and performance by Borrower of the Loan Documents to which it is a party have been duly
authorized, and do not (i) conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law, (iii) contravene, conflict or violate any
applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any action by,
filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect, and except for such filings as are
necessary for the Administrative Agent to perfect its security interest in the Collateral, or (v) constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it
is a party or by which it is bound in which the default could have a material adverse effect on Borrower’s business. 

5.2 Collateral. Borrower has good title to, and rights in the Collateral, and the power to grant those Liens upon the Collateral
which it purports to grant hereunder, and such Collateral both is and will remain free and 
  

 13 

 
clear of any and all Liens except Permitted Liens. Borrower has no Deposit Accounts other than the Deposit Accounts, if any, described in the Perfection Certificate delivered to Administrative
Agent (who sent the same to each Lender), in connection herewith, or of which Borrower has given Administrative Agent (who will forward the same to each Lender), notice and taken such actions as are necessary to give Administrative Agent, for the
benefit of the Lenders, a perfected security interest therein. 
 The Collateral is not in the possession of any third party
bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate. None of the components of the Collateral are maintained at locations other than as provided in the Perfection Certificate, as permitted in
Section 7.2, or as Borrower has given Administrative Agent, notice pursuant to Section 7.2. In the event that Borrower, after the date hereof, intends to store or otherwise deliver any portion of the Collateral (excluding,
but only until the covenant in Section 6.22 is required to be satisfied, the Additional European Collateral) to a bailee, then Borrower will first cause such bailee to execute and deliver a bailee agreement, in form and substance
reasonably satisfactory to Administrative Agent, in its sole discretion. 
 All Inventory is in all material respects of good
and marketable quality, free from material defects. Except as noted on the Perfection Certificate, Borrower is not a party to, nor is it bound by, any Restricted License. 
 5.3 Intellectual Property. Borrower owns, is licensed to use or otherwise has the right to use its Intellectual Property, except for non-exclusive licenses granted to its customers in the ordinary
course of business. Each patent owned by Borrower and material to Borrower’s business is valid and enforceable, and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and to the best of
Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any third party except to the extent such claim could not reasonably be expected to have a material adverse effect on Borrower’s
business. Borrower has not entered into, nor will it enter into any other agreement or financing arrangement in which a pledge or negative pledge in Borrower’s Intellectual Property is granted to any other party. Borrower owns or has rights to
use all Intellectual Property material to the conduct of its business as now or heretofore conducted by it. 
 5.4
Litigation. As of the Effective Date, there is no civil, criminal or administrative action, suit, claim, indictment, proceeding, hearing, charge, complaint, demand, audit inspection or investigation pending or, to the knowledge of any
Responsible Officer, threatened, by any Person or any federal, state or local governmental agency against Borrower or any Subsidiary or any Responsible Officer thereof, involving more than $100,000 or which, if adversely determined, could reasonably
be expected to result in a Material Adverse Change, nor is there any basis therefore. 
 5.5 No Material Deviation in
Financial Statements. All consolidated financial statements for Borrower and any of its Subsidiaries delivered to Administrative Agent (who will forward the same to each Lender), were prepared in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly noted therein, fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations, and show all
material Indebtedness and other liabilities, direct or contingent, of the Borrower and its Subsidiaries, in each case as of the date thereof, including liabilities for taxes Growth Capital Loan Commitments and Indebtedness. No event, change,
condition or state of facts has occurred that has resulted in, or is reasonably likely to result in, individually or in the aggregate, a Material Adverse Change since December 31, 2009. 

5.6 No Disposition. From the date of the most recent audited financial statements delivered to the Administrative Agent (who will
forward the same to each Lender), to and including the date hereof, there has been no Transfer by the Borrower and its Subsidiaries, or any Involuntary Disposition, in each case of any material part of the business or Property of the Borrower and
its Subsidiaries, taken as a whole, and no purchase or other acquisition by the Borrower or any of its Subsidiaries of any business or property (including any Capital Stock of any other Person) material in relation to the consolidated financial
condition of the Borrower and its Subsidiaries, taken as a whole, in each case, which is not reflected in the foregoing financial statements or in the notes thereto or which has not otherwise been disclosed in writing to the Administrative Agent on
or prior to the date hereof. 
  

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 5.7 Solvency. The fair salable value of Borrower’s assets (including goodwill
minus disposition costs) exceeds the fair value of its liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature.

 5.8 Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an
“investment company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of
Governors). Borrower has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a
“subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. 
 5.9 Compliance with Laws. Borrower and each Subsidiary is in compliance with the requirements of all Laws and all orders, writs, conditions of participation, contracts, standards, policies,
injunctions, decrees, and Governmental Approvals applicable to it, its properties or the Facilities, except where noncompliance individually or in the aggregate could not reasonably be expected to result in a Material Adverse Change. Without
limiting the generality of the foregoing: 
 (a) to Borrower’s knowledge neither Borrower nor any Subsidiary, nor any
member of management of Borrower or any Subsidiary, has any criminal culpability or has been excluded from participation in any state or federal program for corporate or individual actions or failures to act known to Borrower or any Subsidiary where
such culpability or exclusion has resulted or could reasonably be expected to result in an Exclusion Event and neither Borrower nor any Subsidiary nor any member of management of Borrower or any Subsidiary has been subject to sanction or been
indicted or convicted of a crime, or pled nolo contendre or to sufficient facts, in connection with any allegation of violation of any state or federal program or other Applicable Law; 

(b) neither Borrower nor any Subsidiary is in receipt of any written notice of any material violation by Borrower or any Subsidiary or
any member of management of Borrower or any Subsidiary of any Law, statute, rule, regulation, ordinance, code, judgment, order writ, decree, permit, concession, franchise or other Governmental Approval applicable to it or any of its property, which
notice, individually or in the aggregate, could reasonably be expected to result in an Exclusion Event or a Material Adverse Change; and 
 (c) neither Borrower nor any Subsidiary or any Affiliate thereof is in violation of and shall not violate any of the country or list based economic and trade sanctions administered and enforced by OFAC
that are described or referenced at http://ustreas.gov/offices/enforcement/ofac/ or as otherwise published from time to time. 

5.10 Subsidiaries; Investments. Borrower does not own any stock, partnership interest or other equity securities except for
Permitted Investments and except as reflected in the Perfection Certificate. 
 5.11 Tax Returns and Payments; Pension
Contributions. Borrower has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower. Borrower may defer payment of any
contested taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Administrative Agent, with a copy to each Lender,
in writing of the commencement of, and any material development in, the proceedings, and (c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the
Collateral that is other than a “Permitted Lien”. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower. Borrower
has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination
of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any
other governmental agency. 
  

 15 

 5.12 Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions solely
as working capital and to fund its general business requirements and not for personal, family, household or agricultural purposes. 
 5.13 Full Disclosure. No written representation, warranty or other statement of Borrower in any certificate or written statement given to Administrative Agent or any Lender, as of the date such
representations, warranties, or other statements were made, taken together with all such written certificates and written statements given to Administrative Agent or such Lender, contains any untrue statement of a material fact or omits to state a
material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized by Administrative Agent and the Lenders that the projections and forecasts provided by Borrower in good faith and based
upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 

5.14 No Default. 
 (a) Borrower is not (i) in breach of or default under any Material Contract, or (ii) in breach of or default under any Contractual Obligation, in each case of clauses (i) and (ii), that
could reasonably be expected to result in a Material Adverse Change. 
 (b) No Event of Default has occurred and is continuing.

 5.15 Environmental Compliance. Except as could not reasonably be expected to result in a Material Adverse Change:

 (a) The Businesses and each of the Facilities and all operations at the Facilities are in compliance with all applicable
Environmental Laws and there are no conditions relating to the Facilities or the Businesses that could reasonably be expected to give rise to liability of the Borrower or any Guarantor or any Subsidiary under any applicable Environmental Laws.

 (b) Neither Borrower nor any Subsidiary has received any written notice of, or inquiry from any Governmental Authority
regarding, any violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance with Environmental Laws with regard to any of the Facilities or the Businesses, nor does any Responsible
Officer of Borrower have knowledge or reason to believe that any such notice will be received or is being threatened. 
 (c) No
judicial proceeding or governmental or administrative action is pending or, to the knowledge of the Responsible Officers of the Borrower, threatened, under any Environmental Law to which Borrower or any Subsidiary is or will be named as a party, nor
are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental Law with respect to Borrower, any Subsidiary, the Facilities
or the Businesses. 
 5.16 ERISA Compliance. 
 (a) Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Internal Revenue Code, the Consolidated Omnibus Budget Reconciliation Act of 1985
(“COBRA”) and the regulations and published interpretations thereunder, and other federal or state Laws. Borrower and each ERISA Affiliate has made all required contributions to each Plan subject to Section 412 of the Internal
Revenue Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Internal Revenue Code has been made with respect to any Plan. Borrower and each ERISA Affiliate has performed in all
material respects their obligations under each Plan according to their terms. 
 (b) There are no pending or, to the knowledge
of the Borrower, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan.

  

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 (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no
Pension Plan has any Unfunded Pension Liability; (iii) neither Borrower nor or any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and
not delinquent under Section 4007 of ERISA); (iv) neither Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of
ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or
4212(c) of ERISA. 
 5.17 Labor Matters. There are no collective bargaining agreements or Multiemployer Plans covering
the employees of Borrower or any Subsidiary as of the date hereof, and neither Borrower nor any Subsidiary has suffered any strikes, walkouts, work stoppages or other material labor difficulty within the last five (5) years in each case except
as otherwise described in the Perfection Certificate. 
 5.18 Material Contracts. Schedule 5.18 contains a true,
correct and complete list of all Material Contracts in effect as of the date hereof, and except as described thereon, all such Material Contracts are in full force and effect and no material breaches, defaults or events of default currently exist
thereunder, except as disclosed on Schedule 5.18. 
 5.19 Patriot Act. To the extent applicable, Borrower is in
compliance with the (i) Trading with the Enemy Act, and each of the foreign assets control regulations of the Untied States Treasury Department (31 CFR, Subtitle B, Chapter V) and any other enabling legislation or executive order relating
thereto, and (ii) Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (the “Patriot Act”). No part of the proceeds of the Credit Extensions
will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain,
retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 
 5.20 Licensing and Accreditation. Except as set forth in Schedule 5.20, each of the Borrower and its Subsidiaries has, to the extent applicable: (i) obtained (or been duly assigned) all
required Governmental Approvals as required by the relevant state Governmental Authority for the acquisition, construction, expansion of, investment in or operation of its businesses and Facilities as currently operated; and (ii) obtained and
maintains in good standing all Governmental Approvals; and (iii) ensured that all such Governmental Approvals are in full force and effect on the date hereof and have not been revoked or suspended or otherwise limited (collectively,
“Certificates, Licenses and Government Approvals”). No event has occurred or other fact exists with respect to the Certificates, Licenses and Governmental Approvals that allows, or after notice or lapse of time or both, would allow,
revocation, suspension, restriction, limitation or termination of any of the Certificates, Licenses and Governmental Approvals. No notice from any Governmental Authority in respect to the revocation, suspension, restriction, limitation or
termination of any Certificates, Licenses and Governmental Approvals has been delivered, issued, proposed or threatened. 

5.21 Accounts Receivable; Inventory. 
 (a) For each Account with respect to which Revolving Advances are requested, on the date each Revolving Advance is requested and made, such Account shall be an Eligible Account. 

(b) All statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing the Eligible
Accounts are and shall be true and correct and all such invoices, instruments and other documents, and all of Borrower’s Books are genuine and in all respects what they purport to be. Whether or not an Event of Default has occurred and is
continuing, Administrative Agent may notify any Account Debtor owing Borrower money of Administrative Agent’s security interest in such funds and verify the amount of such Eligible Account. All sales and other transactions underlying or giving
rise to each Eligible Account shall comply in all material respects with all applicable laws and governmental rules and regulations. Borrower has no knowledge of any actual or imminent Insolvency Proceeding of any Account Debtor whose accounts are
Eligible Accounts in any Transaction Report. To the best of Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Eligible Accounts are genuine, and all such documents, instruments
and agreements are legally enforceable in accordance with their terms. 
  

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 (c) For any item of Inventory consisting of Eligible Inventory in any Transaction Report,
such Inventory (i) consists of finished goods, in good, new, and salable condition, which is not perishable, returned, consigned, obsolete, not sellable, damaged, or defective, and is not comprised of demonstrative or custom inventory, works in
progress, packaging or shipping materials, or supplies; (ii) meets all applicable governmental standards; (iii) has been manufactured in compliance with the Fair Labor Standards Act; (iv) is not subject to any Liens, except the first
priority Liens granted or in favor of Administrative Agent under this Agreement or any of the other Loan Documents; and (v) is located at the locations identified by Borrower in the Perfection Certificate where it maintains Inventory (or at any
location permitted under Section 7.2), and in the case of Inventory in the possession of any third party, Administrative Agent has received written acknowledgment from such third party of Administrative Agent’s Lien in such
Inventory, in form and content reasonably acceptable to Administrative Agent. 
 6 AFFIRMATIVE COVENANTS

 Borrower shall do all of the following: 
 6.1 Government Compliance; Compliance with Laws. 
 (a) Maintain its and all
its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect
on Borrower’s business or operations. Borrower shall comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower or
Borrower’s business. 
 (b) Obtain and keep in full force and effect, all of the Governmental Approvals necessary for the
performance by Borrower of its business, its obligations under the Loan Documents to which it is a party and the grant of a security interest to Administrative Agent, for the benefit of the Lenders, in the Collateral. Borrower shall promptly provide
copies of any such obtained Governmental Approvals to the Administrative Agent (who will forward the same to each Lender). 

(c) Maintain its and all its Subsidiaries’ compliance with the laws and regulations described in Sections 5.15 and 5.16 and
maintain its and all its Subsidiaries’ compliance at all times with the representations and warranties contain in Sections 5.15 and 5.16. 
 6.2 Financial Statements, Reports, Certificates. 
 (a) Deliver to
Administrative Agent (who will forward the same to each Lender): (i) as soon as available, but no later than thirty (30) days after the last day of each month, a Borrower prepared consolidated balance sheet and income statement, and cash
flow statement covering Borrower’s consolidated operations during such month in a form acceptable to Administrative Agent setting forth in each case in comparative form the figures as of the end of and for the corresponding month of the
previous Fiscal Year, and certified by a Responsible Officer as fairly presenting in all material respects the financial condition, results of operations, shareholders’ equity and cash flows of the Borrower and its Subsidiaries in accordance
with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes; (ii) as soon as available, but no later than one hundred eighty (180) days after the last day of Borrower’s Fiscal Year, audited consolidated
financial statements, including consolidated balance sheet and income statement, statements of retained earnings and shareholders’ equity and cash flow statement covering Borrower’s consolidated operations during the period in a form
acceptable to Administrative Agent setting forth in each case in comparative form the figures as of the end of the previous Fiscal Year, prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from
an independent certified public accounting firm acceptable to Administrative Agent in its reasonable discretion, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any
“going concern” or like qualification or exception or any qualification or exception as to the scope of such audit; (iii) within five (5) days of delivery, copies of all statements, reports and notices made available to

  

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Borrower’s security holders or to any holders of Subordinated Debt; (iv) as soon as available, but no later than thirty (30) days after the last day of Borrower’s Fiscal Year,
Borrower’s financial projections for the entire current fiscal year as approved by Borrower’s Board of Directors, which such annual projections shall be set forth in a month-by-month format and be in form and content reasonably acceptable
to the Lenders (including, without limitation, consolidated balance sheets of the Borrower and its Subsidiaries as at the end of each such month, and the related consolidated statements of income or operations, retained earnings, shareholders’
equity and cash flows for each such month) (such annual projections as originally delivered to Administrative Agent and each Lender, the “Annual Projections”); (v) in the event that Borrower becomes subject to the reporting
requirements under the Securities Exchange Act of 1934, as amended, within five (5) days of filing, all reports on Form 10-K, 10-Q and 8 K filed with the Securities and Exchange Commission or a link thereto on Borrower’s or another website
on the Internet; (vi) a prompt report of any legal actions pending or threatened in writing against Borrower or any of its Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of Two Hundred Fifty Thousand
Dollars ($250,000) or more; and (vii) such budgets, sales projections, operating plans, board presentations and operating plans (including scientific updates) and other financial information reasonably requested by Administrative Agent or any
Lender. 
 (b) Within thirty (30) days after the last day of each month, deliver to Administrative Agent, with a copy to
the Lenders, with the monthly financial statements, a duly completed Compliance Certificate signed by a Responsible Officer. 

(c) No later than thirty (30) days after the last day of each fiscal quarter, a management discussion and analysis describing any
differences in the reported financial results as between the periods covered and that in the same periods during the immediately preceding Fiscal Year, and as between such periods and the same periods included in the budget delivered pursuant to
Section 6.2 above, which shall include, among any other information or explanation reasonably requested by the Administrative Agent or any Lender. 
 (d) Promptly after the same are available (and in any event within ten (10) days thereof), deliver to Administrative Agent (who will forward the same to each Lender), all reports and written
information to and from the United States Environmental Protection Agency, or any state or local agency responsible for environmental matters, the United States Occupational Health and Safety Administration or any successor agencies or authorities
concerning environmental, health or safety matters, and all material reports and written information to and from any state or local agency responsible for health and safety matters, or any successor agencies or authorities concerning environmental,
health or safety matters. 
 (e) A Transaction Report (and any schedules related thereto): (x) with each request for a
Revolving Advance; (y) monthly within thirty (30) days after the last day of each month, when Borrower’s cash on deposit with Bank is equal to or greater than Ten Million Dollars ($10,000,000); or (z) weekly, when Borrower’s
cash on deposit with Bank is less than Ten Million Dollars ($10,000,000). 
 (f) within thirty (30) days after the end of
each month, (A) monthly accounts receivable agings, aged by invoice date, (B) monthly accounts payable agings, aged by invoice date, and outstanding or held check registers, if any, (C) monthly reconciliations of accounts receivable
agings (aged by invoice date), transaction reports and general ledger, (D) monthly perpetual inventory reports for Inventory valued on a first-in, first-out basis at the lower of cost or market (in accordance with GAAP) or such other inventory
reports as are requested by Administrative Agent or any Lender in its good faith business judgment; and (E) monthly deferred revenue reports. 
 6.3 Inventory; Returns. Keep all Inventory in good and marketable condition, free from material defects. Returns and allowances between Borrower and its Account Debtors shall follow Borrower’s
customary practices as they exist at the Effective Date. Borrower must promptly notify Administrative Agent (who will forward the same to each Lender), of all returns, recoveries, disputes and claims by Account Debtors in each instance that involve
more than Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate. 
 6.4 Taxes; Pensions. Timely file, and
require each of its Subsidiaries to timely file, all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely file, all foreign, federal, state and local taxes, assessments, deposits and contributions owed by
Borrower and each of its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.11 hereof, and shall deliver to 

 

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Administrative Agent, with a copy to each Lender, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and
deferred compensation plans in accordance with their terms. 
 6.5 Insurance. Keep its business and the Collateral
insured for risks and in amounts standard for companies in Borrower’s industry and location and as Administrative Agent, or the Lenders, may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are
satisfactory to Administrative Agent or the Lenders. All property policies shall have a lender’s loss payable endorsement showing Administrative Agent, for the benefit of the Lenders, as an additional lender loss payee and waive subrogation
against Administrative Agent, and all liability policies shall show, or have endorsements showing, Administrative Agent as an additional insured. All policies (or the loss payable and additional insured endorsements) shall provide that the insurer
must give Administrative Agent (who will forward the same to each Lender) at least thirty (30) days notice before canceling, or declining to renew its policy. At Administrative Agent’s or any Lender’s request, Borrower shall deliver
Certificates of Insurance to Administrative Agent with a copy to each Lender. Proceeds payable under any policy shall, at Administrative Agent’s option or at the direction of the Lenders, be payable to Administrative Agent, for the benefit of
the Lenders, on account of the Obligations, subject to the rights of General Electric Capital Corporation regarding the GE Collateral. Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower
shall have the option of applying the proceeds of any casualty policy up to Two Hundred Fifty Thousand Dollars ($250,000), in the aggregate, toward the replacement or repair of destroyed or damaged property; provided that any such replaced or
repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Administrative Agent, on behalf of the Lenders, has been granted a first priority security interest,
and (b) after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Administrative Agent or at the direction of the Lenders, be payable to Administrative Agent,
for the benefit of the Lenders, on account of the Obligations. If Borrower fails to obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof of payment to third persons and Administrative
Agent (who will forward the same to each Lender), Administrative Agent or the Lenders may make all or part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the policies
Administrative Agent or the Lenders deem prudent. 
 6.6 Operating Accounts. 

(a) Maintain all of its and all of its Subsidiaries’ operating and other deposit accounts and securities accounts with Bank and
Bank’s Affiliates, which accounts shall represent at least 85% of the dollar value of Borrower’s and such Subsidiaries accounts at all financial institutions. All such accounts shall be subject to Control Agreements in favor of, and in
form and content reasonably acceptable to, Administrative Agent. Without limiting the foregoing, no part of any Credit Extension shall be credited to or held in any account unless Administrative Agent maintains a Control Agreement over such account.

 (b) Provide Administrative Agent (who will forward the same to each Lender) five (5) days prior written notice before
establishing any Collateral Account at or with any bank or financial institution. For each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution at or with which any Collateral
Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Administrative Agent’s Lien in such Collateral Account in accordance with the terms hereunder.
The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Administrative
Agent and the Lenders by Borrower as such. 
 6.7 Protection of Intellectual Property Rights. Borrower shall:
(a) protect, defend and maintain the validity and enforceability of its Intellectual Property consistent with its sound business judgment; (b) promptly advise Administrative Agent in writing, with a copy to each Lender, of material
infringements of its material Intellectual Property; and (c) not allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Administrative Agent’s or the Lenders’
written consent consistent with its sound business judgment. Provide written notice to Administrative Agent within thirty (30) days of entering or becoming bound by any Restricted License (other than over-the-counter software that is
commercially available to 
  

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the public). Borrower shall take such steps as Administrative Agent requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any Restricted
License to be deemed “Collateral” and for Administrative Agent to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, whether now existing or entered into
in the future, and (ii) Administrative Agent to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Administrative Agent’s rights and remedies under this Agreement and the other
Loan Documents. 
 6.8 Litigation Cooperation. From the date hereof and continuing through the termination of this
Agreement, make available to Administrative Agent and each Lender, without expense to Administrative Agent or Lender, as applicable, Borrower and its officers, employees and Administrative Agents and Borrower’s books and records, to the extent
that Administrative Agent or any Lender may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Administrative Agent or any Lender with respect to any Collateral or relating to Borrower.

 6.9 Right to Invest. Grant to each Lender or their Affiliates a right (but not an obligation) to invest up to One
Million Dollars ($1,000,000) in the aggregate (each such Lender’s investment being limited to its pro rata share of $1,000,000) according to each Lender’s pro rata share (based upon the respective Growth Capital Loan Commitment Percentage
of each Lender), in any of Borrower’s rounds of private equity financing occurring after the Effective Date on the same terms, conditions and pricing offered to the investors in such private equity financing round. Borrower shall give each
Lender at least ten (10) days prior written notice of the applicable private equity financing which notice shall (a) contain the terms, conditions and pricing of such private equity financing, and (b) be delivered to each Lender at
the address set forth in Section 10 hereof. The parties hereto acknowledge that no provision of this Section 6.9 or elsewhere in the Loan Documents requires any Lender to invest in Borrower, and any election to do so shall be
at the sole discretion of each Lender. The right granted hereunder shall survive the termination of this Agreement. 
 6.10
Notices of Litigation and Default. Borrower shall give prompt written notice to Administrative Agent (who will forward the same to each Lender), of any litigation or governmental proceedings pending or threatened (in writing) against Borrower
which would reasonably be expected to result in a Material Adverse Change. Without limiting or contradicting any other more specific provision of this Agreement, promptly (and in any event within five (5) Business Days) upon Borrower obtaining
knowledge of the existence of any Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default, Borrower shall give written notice to Administrative Agent (who will forward the same to
each Lender) of such occurrence, which such notice shall include a reasonably detailed description of such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default. 

6.11 Creation/Acquisition of Subsidiaries. In the event Borrower or any Subsidiary creates or acquires any Subsidiary, Borrower
and such Subsidiary shall promptly notify Administrative Agent (who will forward the same to each Lender) of the creation or acquisition of such new Subsidiary and take all such action as may be reasonably required by Administrative Agent to cause
each such Subsidiary to guarantee the Obligations of Borrower under the Loan Documents and grant a continuing pledge and security interest, in favor of the Administrative Agent, in and to the assets of such Subsidiary (substantially as described on
Exhibit A hereto); and Borrower shall grant and pledge to Administrative Agent a perfected security interest in the stock, units or other evidence of ownership of each Subsidiary. 

6.12 Further Assurances. Borrower shall execute any further instruments and take further action as Administrative Agent or Lenders
reasonably request to perfect or continue Administrative Agent’s Lien in the Collateral or to effect the purposes of this Agreement. Deliver to Administrative Agent with a copy to each Lender, within five (5) days after the same are sent
or received, copies of all correspondence, reports, documents and other filings with any Governmental Authority regarding compliance with or maintenance of Governmental Approvals or Requirements of Law or that could reasonably be expected to have a
material effect on any of the Governmental Approvals or otherwise on the operations of Borrower or any of its Subsidiaries. 
  

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 6.13 Notices. 

(a) Promptly (and in any event within five (5) Business Days) notify the Administrative Agent and each Lender in writing of the
occurrence (i) of any Default or Event of Default, (ii) of any matter that has resulted or could reasonably be expected to result in a Material Adverse Change, (iii) an ERISA Event, (iv) any material change in accounting policies
or financial reporting practices by Borrower or any Subsidiary, (v) any fact or change in circumstances that would be expected to cause any of the representations and warranties contained in Section 5.15 to cease to be true in all
material respects at any time during the duration of this Agreement, (vi) an actual or threatened (in writing) Exclusion Event, or the institution of any investigation, review or proceeding against Borrower that could reasonably be expected to
result in an Exclusion Event, (vii) any notice of loss or threatened loss of any applicable Governmental Approval or accreditation, in each case, that could reasonably be expected to result in a Material Adverse Change, or (viii) any loss,
damage or destruction to the Collateral in the amount of $100,000 or more individually, whether or not covered by insurance. 

(b) Immediately upon the occurrence of, upon becoming aware of, or upon receipt of notice from a third party to Borrower of,
(i) Borrower’s default pursuant to the terms of any Material Contract to which Borrower is a party or (ii) the termination of, or the intent or threat to terminate, any such Material Contract or lease, notify the Administrative Agent
in writing with a copy to each Lender of such default, termination or threat. 
 (c) Each notice pursuant to this
Section 6.13 shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action the Borrower has taken and proposes to take with respect
thereto. Each notice pursuant to Section 6.13(a) shall describe with particularity any and all provisions of this Agreement and any other Loan Document that have been breached. 

6.14 Payment of Obligations. Pay and discharge as the same shall become due and payable, all its obligations and liabilities,
including (a) all tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in
accordance with GAAP are being maintained by Borrower or the applicable Subsidiary; and (b) all lawful claims which, if unpaid, would by law become a Lien upon its Property unless the same are being contested in good faith by appropriate
proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by Borrower or the applicable Subsidiary. 
 6.15 Maintenance of Properties. 
 (a) Maintain, preserve and protect all of
its property necessary in the operation of its Business in good working order and condition, ordinary wear and tear and Involuntary Dispositions excepted. 
 (b) Make all necessary repairs thereto and renewals and replacements thereof. 

(c) Use the standard of care typical in the industry in the operation and maintenance of its Facilities. 

6.16 Books and Records. 
 (a) Maintain proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving the
assets and business of Borrower or any of its Subsidiaries, as the case may be. 
 (b) Maintain such books of record and account
in material conformity with all applicable requirements of any Governmental Authority having regulatory jurisdiction over Borrower or any applicable Subsidiary, as the case may be. 

 

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 6.17 Intentionally Omitted. 

6.18 Pledged Assets. 
 (a) At all times, (a) cause all of the owned and leased Collateral of Borrower to be subject at all times to first priority, perfected Liens and in favor of the Administrative Agent to secure the
Obligations pursuant to the terms and conditions of the Loan Documents or, with respect to any such Collateral (excluding, but only until the covenant in Section 6.22 is required to be satisfied, the Additional European Collateral)
acquired subsequent to the date hereof, such other additional security documents as the Administrative Agent or any Lenders shall reasonably request, subject in any case to Permitted Liens and (b) deliver such other documentation as the
Administrative Agent or any Lender may reasonably request in connection with the foregoing, including appropriate UCC financing statements, landlord’s waivers, certified resolutions and other organizational and authorizing documents of such
Person, favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to above and the perfection of the Administrative Agent’s Liens
thereunder) and other items of the types required to be delivered pursuant to Section 3.1(l), all in form, content and scope reasonably satisfactory to the Administrative Agent and each Lender. 

(b) Without limiting the generality of the above, the Borrower will cause 100% of the issued and outstanding Capital Stock of each
Subsidiary to be subject at all times to a first priority, perfected Lien in favor of the Administrative Agent pursuant to the terms and conditions of the Loan Documents or such other security documents as the Administrative Agent or any Lender
shall request. 
 (c) With respect to each Account for which either the perfection, enforceability, or validity of the
Administrative Agent’s Liens in such Account, or the Administrative Agent’s right or ability to obtain direct payment to the Administrative Agent of the proceeds of such Account, is governed by any federal, state, or local statutory
requirements other than those of the UCC, the Borrower will take such steps as the Administrative Agent or any Lender may from time to time reasonably request, including compliance with the Federal Assignment of Claims Act of 1940, and the Social
Security Act, in each case and such acts, rules and regulations may be amended, modified, supplemented and/or replaced from time to time. 
 6.19 Lenders Meetings. The Borrower will, upon the request of the Administrative Agent or any Lender, participate in a meeting of the Administrative Agent and Lenders once during each Fiscal Year
to be held at the Borrower’s corporate offices (or at such other location as may be agreed to by the Borrower and the Administrative Agent) at such time as may be agreed to by the Borrower and the Administrative Agent; provided that during the
existence of a Default or Event of Default, meetings may be held more frequently than once per Fiscal Year. 
 6.20 Agreement
with Landlord. Borrower shall use commercially reasonable efforts to obtain and maintain such landlord agreements with respect to any real property on which (a) Borrower’s principal place of business, (b) Borrower’s Books, or
(c) Collateral with an aggregate value in excess of $100,000 is located (other than real property owned by Borrower) as Administrative Agent or the Lenders may reasonably require. 

6.21 UK Collateral. Borrower shall execute and cause to be filed such instruments, documents or agreements, each in form and
substance acceptable to the Administrative Agent and Lenders, pursuant to which (i) the Additional European Collateral shall be subject to a first priority perfected lien (Fixed Charge) in favor of the Administrative Agent, for the benefit of
the Lenders, under the laws of the United Kingdom (subject to Permitted Liens) (the “UK Fixed Charge”) and (ii) all of Borrower’s assets located in the United Kingdom shall be subject to a first priority perfected lien
(Floating Charge) in favor of the Administrative Agent, for the benefit of the Lenders, under the laws of the United Kingdom (subject to Permitted Liens). In the event that after the Effective Date, Borrower obtains, in one or more transactions,
Equipment located in the United Kingdom (other than the Equipment described in clause (i) of the definition of Excluded European Property, the Additional European Collateral and Equipment which is of a type not customarily subjected to a fixed
charge lien in the United Kingdom) having an aggregate value which exceeds $500,000 in any twelve (12) month period beginning on the Effective Date or any anniversary thereof, Borrower shall, within thirty (30) days after the acquisition
date of such Equipment, execute and cause to be filed such modifications, supplements or amendments to the UK Fixed Charge, each in form and substance acceptable to the Lenders, pursuant to which such Equipment shall be subject to the UK Fixed
Charge (the “First Supplemental UK Equipment Filing”). After the First Supplemental UK Equipment Filing, Borrower shall be required to further modify, supplement or amend the UK Fixed Charge upon each incremental acquisition by
Borrower, in one or more transactions, of Equipment (other than Equipment which is of a type not customarily subjected to a fixed charge lien in the United Kingdom) having an aggregate value which exceeds $250,000 in any 12-month period beginning on
the Effective Date or any anniversary thereof 
  

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 6.22 European Collateral. In the event that after the Effective Date, Borrower
obtains, in one or more transactions, property (other than Borrower’s Equipment described in clause (i) of the definition of Excluded European Property) located in any particular European country (other than the United Kingdom) having an
aggregate value which exceeds $500,000 in any 12-month period beginning on the Effective Date or any anniversary thereof, Borrower shall, within thirty (30) days after the acquisition date of such Equipment, execute and cause to be filed such
instruments, documents or agreements, each in form and substance acceptable to the Lenders, pursuant to which such property shall be subject to a first priority perfected lien in favor of the Administrative Agent, for the benefit of the Lenders,
under the laws of the applicable jurisdiction (subject to Permitted Liens) (each a “Perfected First Lien”). Thereafter, Borrower shall be required to modify, supplement or amend any applicable Perfected First Lien upon each
incremental acquisition by Borrower, in one or more transactions, of property in the applicable jurisdiction having an aggregate value which exceeds $250,000 in any 12-month period beginning on the Effective Date or any anniversary thereof.

 6.23 Financial Covenants. 
 (a) Performance to Plan; Revenue. In the event Borrower fails to maintain a Liquidity Ratio of at least 1.25 to 1.00, Borrower shall achieve, on a consolidated basis with respect to Borrower and
its Subsidiaries, as of the last day of each month, measured on a trailing 3-month basis, commencing with the 3-month period ended August 31, 2010, actual revenue of at least 75% of projected revenue as set forth in Borrower’s Annual
Projections delivered to Administrative Agent and the Lenders pursuant to Section 6.2(a)(iv); provided that the Annual Projections for 2010 are the projections approved by Borrower’s Board of Directors on October 5, 2010. For the
avoidance of doubt, In the event that the Liquidity Ratio is greater than or equal to 1.25 to 1.00, Borrower shall not be required to achieve the performance to plan covenant set forth above. 

(b) Equity Event. Borrower shall consummate the Equity Event by no later than November 30, 2010. 

6.24 Accounts Receivable. 
 (a) Schedules and Documents Relating to Accounts. Borrower shall deliver to Administrative Agent, with a copy to the Lenders, transaction reports and schedules of collections, as provided in
Section 6.2, on Administrative Agent’s standard forms; provided, however, that Borrower’s failure to execute and deliver the same shall not affect or limit Administrative Agent’s Lien and other rights in all of
Borrower’s Accounts, nor shall any Lender’s failure to advance or lend against a specific Account affect or limit Administrative Agent’s Lien and other rights therein. If requested by Administrative Agent or any Lender, Borrower shall
furnish Administrative Agent, with a copy to the Lenders, with copies (or, at any Administrative Agent’s or any Lender’s request, originals) of all contracts, orders, invoices, and other similar documents, and all shipping instructions,
delivery receipts, bills of lading, and other evidence of delivery, for any goods the sale or disposition of which gave rise to such Accounts. In addition, Borrower shall deliver to Administrative Agent, with a copy to the Lenders, on any request,
the originals of all instruments, chattel paper, security agreements, guarantees and other documents and property evidencing or securing any Accounts, in the same form as received, with all necessary endorsements, and copies of all credit memos.

 (b) Disputes. Borrower shall promptly notify Administrative Agent and each Lender of all disputes or claims relating
to Accounts. Borrower may forgive (completely or partially), compromise, or settle any Account for less than payment in full, or agree to do any of the foregoing so long as (i) Borrower does so in good faith, in a commercially reasonable
manner, in the ordinary course of business, in arm’s-length transactions, and reports the same to Administrative Agent, with a copy to the Lender, in the regular reports provided to Administrative Agent; (ii) no Event of Default has
occurred and is continuing; and (iii) after taking into account all such discounts, settlements and forgiveness, the total outstanding Revolving Advances will not exceed the lesser of the Revolving Line or the Availability Amount. 

 

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 (c) Collection of Accounts. Borrower shall have the right to collect all Accounts,
unless and until an Event of Default has occurred and is continuing. Prior to any Revolving Advances under the Revolving Line, all proceeds of Accounts shall be deposited by Borrower into a lockbox account, or such other “blocked account”
as specified by Administrative Agent, pursuant to a blocked account agreement in such form as Administrative Agent may specify in its good faith business judgment. Whether or not an Event of Default has occurred and is continuing, Borrower shall
immediately deliver all payments on and proceeds of Accounts to an account maintained with Bank to be applied (i) when Borrower’s aggregate Cash on deposit with Bank is greater than $10,000,000 (and no Event of Default has occurred or is
continuing), pursuant to the terms of Section 2.3(e) hereof, and (ii) when Borrower’s aggregate Cash on deposit with Bank is less than $10,000,000 (and/or upon the occurrence and during the continuance of an Event of Default),
pursuant to the terms of Section 9.4 hereof. 
 (d) Returns. Provided no Event of Default has occurred
and is continuing, if any Account Debtor returns any Inventory to Borrower with an aggregate value in excess of $125,000 per quarter, Borrower shall promptly (i) determine the reason for such return, (ii) issue a credit memorandum to the
Account Debtor in the appropriate amount, and (iii) provide a copy of such credit memorandum to Administrative Agent, with a copy to the Lenders. In the event any attempted return occurs after the occurrence and during the continuance of any
Event of Default, Borrower shall immediately notify Administrative Agent and the Lenders of the return of such Inventory. 
 (e)
Verification. Administrative Agent and Lenders may, from time to time, verify directly with the respective Account Debtors the validity, amount and other matters relating to the Accounts, either in the name of Borrower, Administrative
Agent or such Lender or such other name as Administrative Agent or such Lender may choose. 
 (f) No Liability.
Neither Administrative Agent nor any Lender shall be responsible or liable for any shortage or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for any error, act,
omission, or delay of any kind occurring in the settlement, failure to settle, collection or failure to collect any Account, or for settling any Account in good faith for less than the full amount thereof, nor shall Administrative Agent or any
Lender be deemed to be responsible for any of Borrower’s obligations under any contract or agreement giving rise to an Account. Nothing herein shall, however, relieve Administrative Agent or any Lender from liability for its own gross
negligence or willful misconduct. 
 6.25 Remittance of Proceeds. Except as otherwise provided in
Section 6.23(c), deliver, in kind, all proceeds arising from the disposition of any Collateral to Administrative Agent, for the ratable benefit of the Lenders, according to their Revolving Commitment Percentage, in the original form in
which received by Borrower not later than the following Business Day after receipt by Borrower, to be applied to the Obligations (a) prior to an Event of Default, pursuant to the terms of Section 2.3(e) hereof, and (b) after
the occurrence and during the continuance of an Event of Default, pursuant to the terms of Section 9.4 hereof; provided that, if no Event of Default has occurred and is continuing, Borrower shall not be obligated to remit to
Administrative Agent the proceeds of the sale of worn out or obsolete Equipment disposed of by Borrower in good faith in an arm’s length transaction for an aggregate purchase price of $25,000 or less (for all such transactions in any fiscal
year). Borrower agrees that it will maintain all proceeds of Collateral in an account maintained with Bank. Nothing in this Section limits the restrictions on disposition of Collateral set forth elsewhere in this Agreement. 

6.26 Access to Collateral; Books and Records. Allow Administrative Agent, or its agents, at reasonable times, on one
(1) Business Day’s notice (provided no notice is required if an Event of Default has occurred and is continuing), to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies
thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, and to inspect the Collateral and audit and copy Borrower’s Books. Such visits, inspections or
audits shall be conducted (x) at least 45 days prior to the first Revolving Advance, and (y) thereafter, no more often than once every six (6) months unless an Event of Default has occurred and is continuing. The foregoing visits,
inspections and audits shall be at Borrower’s expense, and the charge therefor shall be $850 per person per day (or such higher amount as shall represent Administrative Agent’s or any Lender’s then-current standard charge for the
same), plus reasonable out-of-pocket expenses. In the event Borrower and Administrative Agent or any Lender schedule an audit more than ten (10) days in advance, and Borrower cancels or seeks to reschedules the audit with less than ten
(10) days written notice to Administrative Agent or any such Lender, then (without limiting any of Administrative Agent’s rights or remedies), Borrower shall 

 

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pay Administrative Agent or such Lender a fee of $1,000 plus any out-of-pocket expenses incurred by Administrative Agent or such Lender to compensate Administrative Agent or such Lender for the
anticipated costs and expenses of the cancellation or rescheduling. 
 7 NEGATIVE COVENANTS 

Neither Borrower, any Subsidiary, or Guarantor shall do any of the following without Administrative Agent’s or the Lenders’
prior written consent: 
 7.1 Dispositions. “Dispositions”. Convey, sell, lease, transfer or otherwise
dispose of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for the GE Collateral and the Excluded European Property and Transfers (a) of Inventory
in the ordinary course of business; (b) of worn out or obsolete Equipment; (c) in connection with Permitted Liens and Permitted Investments; (d) of non-exclusive and exclusive licenses for the use of Intellectual Property and rights
to Intellectual Property, collaborative transactions, and/or joint ventures each entered in the ordinary course of business; and (e) of abandoned Intellectual Property not material to Borrower’s business. 

7.2 Changes in Business, Management, Ownership, or Business Locations. (a) Engage in or permit any of its Subsidiaries to
engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or dissolve; or (c) (i) have a change in management such that a Key
Person resigns, is terminated, or is no longer actively involved in the management of the Borrower in his/her current position and is not replaced with a person acceptable to Borrower’s board of directors within one hundred twenty
(120) days after departure from Borrower, or (ii) without limiting the application of Section 7.3, suffer or permit a Change in Control. Borrower shall not, without at least thirty (30) days prior written notice to Administrative
Agent (who will forward the same to each Lender): (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than One Hundred Thousand Dollars ($100,000) in Collateral),
(2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization. 

7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other
Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person except where (a) total consideration including cash and the value of any non-cash consideration, for
all such transactions does not in the aggregate exceed One Hundred Thousand Dollars ($100,000) in any Fiscal Year of Borrower; (b) no Default or Event of Default has occurred and is continuing or would exist after giving effect to the
transactions; and (c) Borrower is the surviving legal entity. A Subsidiary may merge or consolidate into another Subsidiary or into Borrower. Notwithstanding the foregoing, Borrower may merge or consolidate so long as: (A) the entity or
entities that result from such merger or consolidation (collectively, the “Surviving Entity”) shall have executed and delivered to Administrative Agent an agreement in form and substance reasonably satisfactory to Administrative
Agent, containing an assumption by the Surviving Entity of the due and punctual payment and performance of all Obligations and performance and observance of each covenant and condition of Borrower in the Loan Documents: (B) all such obligations
of the Surviving Entity to Lenders shall be guaranteed by any entity, if any, that directly or indirectly owns or controls more than 50% of the voting stock of the Surviving Entity (which guaranty shall be secured in the discretion of the Lenders);
(C) immediately after giving effect to such merger or consolidation, no Default or Event of Default shall have occurred and be continuing; and (D) the credit risk to Lenders, in their reasonable discretion, of the Surviving Entity shall
not be increased. In determining whether the proposed merger or consolidation would result in any increased credit risk, Lenders may consider, among other things, changes in Borrower’s management team, employee base, access to equity markets,
investor support, financial position, business plan, and/or disposition of Intellectual Property rights which may reasonably be anticipated as a result of the transaction. 
 7.4 Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 

7.5 Encumbrance. Create, incur, allow, or suffer any Lien on any of its property (other than the GE Collateral), or assign or
convey any right to receive income, including the sale of any Accounts, or permit any of its 
  

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Subsidiaries to do so, except in each case for Permitted Liens, permit any Collateral (excluding, but only until the covenant in Section 6.22 is required to be satisfied, the
Additional European Collateral) not to be subject to the first priority security interest granted herein, or enter into, or permit to exist, any agreement, document, instrument or other arrangement binding upon it (except with or in favor of
Administrative Agent for the benefit of the Lenders) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon, or
encumbering any of Borrower’s or any Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Lien” herein. 

7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.6
hereof. 
 7.7 Distributions; Investments. (a) Pay any dividends or make any distribution or payment (other than a
dividend, distribution or payment solely in capital stock) or redeem, retire or purchase any capital stock provided that (i) Borrower may convert any of its convertible securities into other securities pursuant to the terms of such convertible
securities or otherwise in exchange thereof, (ii) Borrower may pay dividends solely in common stock, and (iii) Borrower may repurchase the stock of former employees, directors or consultants pursuant to stock repurchase agreements or
similar agreements made under equity incentive plans or programs that were approved by the board of directors of Borrower or the compensation committee so long as a Default or Event of Default does not exist at the time of such repurchase and would
not exist after giving effect to such repurchase, provided such repurchase does not exceed in the aggregate of One Hundred Thousand Dollars ($100,000) per Fiscal Year; or (b) directly or indirectly make any Investment other than Permitted
Investments, or permit any of its Subsidiaries to do so. 
 7.8 Transactions with Affiliates. Directly or indirectly
enter into or permit to exist any material transaction with any Affiliate of Borrower, except for (a) transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to
Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person; (b) the sale of Borrower’s equity securities or Subordinated Debt to its existing venture capital investors; (c) compensation and
benefit arrangements (including the granting of options or other equity compensation arrangements) and any indemnification arrangements with employees, officers, directors or consultants approved by, or pursuant to any plan approved by, the board of
directors of Borrower or the compensation committee of the board of directors of Borrower; or (d) as expressly permitted by Section 7.1. 
 7.9 Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such
Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Lenders. 

7.10 Compliance. Become an “investment company” or a company controlled by an “investment company”, under the
Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds
of the Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate
any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation
in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower,
including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

7.11 Ownership of Subsidiaries. Notwithstanding any other provisions of this Agreement to the contrary, (i) permit any Person
(other than the Borrower) to own any Capital Stock of any Subsidiary, except to qualify directors where required by applicable law or to satisfy other requirements of applicable law with respect to the ownership of Capital Stock of Foreign
Subsidiaries, (ii) permit any Subsidiary to issue or have outstanding any shares of preferred Capital Stock, or (iii) create, incur, assume or suffer to exist any Lien on any Capital Stock of any Subsidiary other than pursuant to the Loan
Documents. 
  

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 7.12 Sale and Leaseback Transactions. Enter into any Sale and Leaseback Transaction.

 7.13 Location of Collateral. Maintain, transfer, or move, at any time, any of the Collateral outside of the United
States, with the exception of the Additional European Collateral. 
 8 EVENTS OF DEFAULT 

Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 

8.1 Payment Default. Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date,
or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) day grace period shall not apply to payments due on the Maturity Date). During the cure period, the failure to
cure the payment default is not an Event of Default (but no Credit Extension will be made during the cure period); 
 8.2
Covenant Default. 
 (a) Borrower fails or neglects to perform any obligation in Sections 6.2, 6.4,
6.5, 6.6, 6.7, 6.8, 6.10, 6.11, 6.13, 6.14, 6.18, 6.19, 6.21 or 6.22, or violates any covenant in Section 7; or 

(b) Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this
Agreement, any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten
(10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and
such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure
to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period); 

8.3 Material Adverse Change. A Material Adverse Change occurs; 

8.4 Attachment; Levy; Restraint on Business. 
 (a) (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under control of Borrower (including a Subsidiary) on deposit with any Lender or any
Lender Affiliate, or (ii) a notice of lien, levy, or assessment is filed against any of Borrower’s assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the
occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; and 

(b) (i) any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or receiver,
or (ii) any court order enjoins, restrains, or prevents Borrower from conducting any part of its business; 
 8.5
Insolvency. (a) Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent; (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower
and not dismissed or stayed within forty-five (45) days (but no Credit Extensions shall be made while of any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 

 

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 8.6 Other Agreements. There is a default by Borrower or any Guarantor under any
agreement to which Borrower is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of One Hundred Thousand Dollars
($100,000) or that could have a material adverse effect on Borrower’s or any Guarantor’s business; 
 8.7
Judgments. One or more judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of at least One Hundred Thousand Dollars ($100,000) (not covered by independent third-party insurance as to which
liability has been accepted by such insurance carrier) shall be rendered against Borrower and shall remain unsatisfied, unvacated, or unstayed for a period of thirty (30) days after the entry thereof (provided that no Credit Extensions will be
made prior to the satisfaction, vacation, or stay of such judgment, order, or decree); 
 8.8 Misrepresentations.
Borrower or any Person acting for Borrower makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to any Lender or to induce Lenders to enter this Agreement or any Loan
Document, and such representation, warranty, or other statement is incorrect in any material respect when made; 
 8.9
Subordinated Debt. Borrower or any creditor of Borrower that signed a subordination, intercreditor, or other similar agreement with Administrative Agent, breaches any terms of such agreement; or 

8.10 Governmental Approvals. Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an
adverse manner or not renewed in the ordinary course for a full term and could reasonably be expected to cause a Material Adverse Change or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any
applications for renewal of any of such Governmental Approval or that could result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification
or non-renewal has, or could reasonably be expected to have, a Material Adverse Change. 
 9 ADMINISTRATIVE AGENT’S
RIGHTS AND REMEDIES 
 9.1 Rights and Remedies. While an Event of Default occurs and continues the Administrative
Agent shall, at the request of, or may, with the consent of, all Lenders, take any or all of the following actions, without notice or demand: 
 (a) declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by
Lenders); 
 (b) stop advancing money or extending credit for Borrower’s benefit under this Agreement; 

(c) demand that Borrower (i) deposit cash with Bank in an amount equal to 110% of the Dollar Equivalent of the aggregate face amount
of all Letters of Credit remaining undrawn (plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment)), to secure all of the Obligations relating to such Letters of
Credit, as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable
over the remaining term of any Letters of Credit; 
 (d) terminate any FX Forward Contracts; 

(e) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Administrative Agent
considers advisable, notify any Person owing Borrower money of Administrative Agent’s (for the benefit of the Lenders) security interest in such funds, and verify the amount of such account; 

 

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 (f) make any payments and do any acts they consider necessary or reasonable to protect the
Collateral and/or Administrative Agent’s security interest in the Collateral. Borrower shall assemble the Collateral if Administrative Agent requests and make it available as Administrative Agent designates. Administrative Agent may (to the
extent not prohibited by applicable law) enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to their
security interest and pay all expenses incurred. To the extend not prohibited by the applicable agreements pursuant to which Borrower leases or otherwise has occupancy rights, Borrower grants Administrative Agent a license to enter and occupy any of
its premises, without charge, to exercise any of Administrative Agent’s rights or remedies; 
 (g) apply to the Obligations
any balances and deposits of Borrower Administrative Agent holds on behalf of the Lenders; 
 (h) ship, reclaim, recover, store,
finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral, to the extent not prohibited by applicable law. Administrative Agent is hereby granted to be exercised solely upon an Event of Default, a non-exclusive,
royalty-free license or other right to use, subject to the rights of third parties and to the extent not prohibited by applicable law, without charge to Borrower, Borrower’s labels, patents, copyrights, mask works, rights of use of any name,
trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with
Administrative Agent’s exercise of its rights under this Section 9.1(f), Borrower’s rights under all licenses and all franchise agreements inure to Administrative Agent’s benefit, for the benefit of the Lenders;

 (i) place a “hold” on any account maintained with Administrative Agent on behalf of the Lenders and/or deliver a
notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 

(j) demand and receive possession of Borrower’s Books; 
 (k) exercise all rights and remedies available to Administrative Agent under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral
pursuant to the terms thereof). 
 9.2 Power of Attorney. Borrower hereby irrevocably appoints Administrative Agent as
its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or security; (b) sign Borrower’s name on any
invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Administrative Agent determines reasonable;
(d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or
otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Administrative Agent or a third party as the Code permits. Borrower hereby appoints Administrative Agent as its lawful
attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of any security interest regardless of whether an Event of Default has occurred until all Obligations have been satisfied in full and
Lenders are under no further obligation to make Credit Extensions hereunder. Administrative Agent’s foregoing appointment as Borrower’s attorney- in-fact, and all of Administrative Agent’s rights and powers, coupled with an interest,
are irrevocable until all Obligations (other than inchoate indemnity obligations) have been fully repaid and performed and Lenders’ obligation to provide Credit Extensions terminates. 

9.3 Protective Payments. If Borrower fails to obtain the insurance called for by Section 6.5 or fails to pay any
premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Administrative Agent may obtain such insurance or make such payment, and all amounts so paid by Administrative Agent
are Lender Expenses and immediately due and payable, bearing interest at the Default Rate, and secured by the Collateral. Administrative Agent will make reasonable efforts to provide Borrower with notice of Administrative Agent obtaining such
insurance at the time it is obtained or within a reasonable time thereafter. No payments by Administrative Agent are deemed an agreement to make similar payments in the future or Administrative Agent’s waiver of any Event of Default.

  

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 9.4 Application of Payments and Proceeds. Borrower shall have no right to specify the
order or the accounts to which Administrative Agent shall allocate or apply any payments required to be made by Borrower to Administrative Agent or otherwise received by Administrative Agent under this Agreement when any such allocation or
application is not specified elsewhere in this Agreement. If an Event of Default has occurred and is continuing, any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order: 

(a) First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including Lenders
Expenses) payable to the Administrative Agent in its capacity as such; 
 (b) Second, to payment of that portion of the
Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders (including Lenders Expenses), ratably among them in proportion to the amounts described in this clause (b) payable to them;

 (c) Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Credit Extensions
and fees, premiums and scheduled periodic payments, and any interest accrued thereon, ratably among the Lenders in proportion to the respective amounts described in this clause (c) held by them; 

(d) Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Credit Extensions and breakage,
termination or other payments, and any interest accrued thereon, ratably among the Lenders in proportion to the respective amounts described in this clause (d) held by them; 

(e) Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrowers or as otherwise
required by Law. 
 9.5 Set-off. In addition to any rights and remedies of the Lenders provided by law, upon the
occurrence and during the continuance of any Event of Default, each Lender and any Affiliate of a Lender is authorized at any time and from time to time, with the prior written consent of the Administrative Agent, but without prior notice to the
Borrower, any such notice being waived by the Borrower to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held by, and other indebtedness at any
time owing by, such Lender or such Affiliate to or for the credit or the account of the Borrower against any and all Obligations owing to such Lender hereunder or under any other Loan Document, now or hereafter existing, irrespective of whether or
not the Administrative Agent or such Lender shall have made demand under this Agreement or any other Loan Document and although such Obligations may be contingent or unmatured or denominated in a currency different from that of the applicable
deposit or indebtedness. Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any such set-off and application made by such Lender; provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application. 
 9.6 Administrative Agent’s Liability for Collateral. So long as
Administrative Agent complies with reasonable and customary Lenders’ practices regarding the safekeeping of the Collateral in the possession or under the control of Administrative Agent, Administrative Agent shall not be liable or responsible
for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower
bears all risk of loss, damage or destruction of the Collateral. 
 9.7 No Waiver; Remedies Cumulative. Administrative
Agent’s failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Administrative Agent thereafter to demand strict
performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Administrative Agent (and to the extent required pursuant to Section 12.5 all Lenders) and then is only effective for the specific
instance and purpose 
  

 31 

 
for which it is given. Administrative Agent’s and the Lenders’ rights and remedies under this Agreement and the other Loan Documents are cumulative. Administrative Agent and Lenders
have all rights and remedies provided under the Code, by law, or in equity. Administrative Agent’s and Lenders’ exercise of one right or remedy is not an election, and Administrative Agent’s and Lenders’ waiver of any Event of
Default is not a continuing waiver. Administrative Agent’s and Lenders’ delay in exercising any remedy is not a waiver, election, or acquiescence. 
 9.8 Demand Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement,
extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Administrative Agent, for the benefit of the Lenders, on which Borrower is liable. 

10 NOTICES 
 All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served,
given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon
transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of
which shall be addressed to the party to be notified and sent to the address, facsimile number indicated below. Each party may change its mailing or electronic mail address or facsimile number by giving the other parties written notice thereof in
accordance with the terms of this Section 10. 
  

			
	If to Borrower:	    	 Zogenix, Inc.
 12671 High
Bluff Drive, Suite 200
 San Diego, California 92130
 Attn: Chief Financial Officer
 Tel.: (858) 436-9208

Fax: (858) 259-1166
 Email:
arhoads@zogenix.com

		
	with a copy to:	    	 Latham & Watkins LLP

600 W. Broadway, Suite 1800
 San Diego,
California 92101
 Attn: Stephanie L. Kuhlen
 Tel: (619) 238-2812
 Fax: (619) 696-7419
 Email: stephanie.kuhlen@lw.com

		
	If to Bank:	    	 Silicon Valley Bank
 4370 La
Jolla Village Drive, Suite 860
 San Diego, CA 92122
 Attn: Mike White
 Tel.: (858) 784-3310
 Fax: (858) 622-1424
 Email: mwhite@svb.com

		
	If to Administrative: Agent	    	 Oxford Finance Corporation

133 N. Fairfax Street
 Alexandria, VA
22314
 Attn: Timothy A. Lex, Chief Operating Officer
 Tel.: (703) 519-4900
 Fax: (703) 519-5225
 Email: tlex@oxfordfinance.com

  

 32 

			
	with a copy to:	    	 DLA Piper LLP (US)
 4365
Executive Drive, Suite 1100
 San Diego, California 92121
 Attn: Troy Zander
 Fax: (858) 638-5086
 Email: troy.zander@dlapiper.com

 11 CHOICE OF LAW, VENUE,
JURY TRIAL WAIVER AND JUDICIAL REFERENCE 
 (a) California law governs the Loan Documents without regard to principles of
conflicts of law. Borrower, Administrative Agent and each Lender each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California; provided, however, that nothing in this Agreement shall be deemed to
operate to preclude Administrative Agent or any Lender from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in
favor of Administrative Agent or any Lender. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based upon lack of
personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the summons, complaints, and
other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in, or subsequently provided by Borrower in
accordance with, Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage
prepaid. 
 (b) TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER EACH WAIVE
THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL
INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 

(c) WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above
waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by
the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law
if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted
pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation,
entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If
during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior
Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall
be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and orders applicable to judicial
proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of
decision thereon pursuant to California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The
private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. 
  

 33 

 12 GENERAL PROVISIONS 

12.1 Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party.
Borrower may not assign this Agreement or any rights or obligations under it without Administrative Agent’s and each Lender’s prior written consent (which may be granted or withheld in their discretion; provided that such consent shall not
be unreasonably withheld with respect to assignments made by other Lenders). Each Lender has the right, without the consent of or notice to Borrower, to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in,
such Lender’s obligations, rights, and benefits under this Agreement and the other Loan Documents. No Lender may assign any interest hereunder to the Borrower or a natural Person. In addition to the foregoing, no Lender may assign any interest
hereunder other than to an Affiliate, without the prior written consent of Oxford and Bank, provided that Oxford and Bank continue to be a Lender hereunder. 
 12.2 Indemnification. Whether or not the transactions contemplated hereby are consummated, the Borrower agrees to indemnify and hold harmless each Agent-Related Person, each Lender and the
respective Affiliates of all such Persons, directors, officers, employees, counsel, trustees, advisors, agents and attorneys-in-fact (collectively the “Indemnitees”) from and against any and all liabilities, obligations, losses,
damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements (including Lenders Expenses and other costs of investigation or defense, including those incurred upon any appeal) of any kind or nature whatsoever
which may at any time be imposed on, incurred by or asserted against any such Indemnitee in any way relating to or arising out of or in connection with (a) the execution, delivery, enforcement, performance or administration of any Loan Document
or any other agreement, letter or instrument delivered in connection with the transactions contemplated thereby or the consummation of the transactions contemplated thereby, (b) any Credit Extension or the use or proposed use of the proceeds
therefrom, (c) any actual or alleged presence or release of Hazardous Materials on or from any property currently or formerly owned or operated by the Borrower or any Subsidiary, or any Environmental Liability related in any way to the Borrower
or any Subsidiary, or (d) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory (including any investigation of, preparation for, or
defense of any pending or threatened claim, investigation, litigation or proceeding) and regardless of whether any Indemnitee is a party thereto (all the foregoing, collectively, the “Indemnified Liabilities”); provided, however,
that such indemnity shall not, as to any Indemnitee, be available to the extent that such liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses or disbursements are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee (or such Indemnitee’s officers, directors, employees or agents). No Indemnitee shall be liable for
any damages arising from the use by others of any information or other materials obtained through the internet, IntraLinks or other similar information transmission systems in connection with this Agreement, nor shall any Indemnitee have any
liability for any punitive, special, indirect or consequential damages relating to this Agreement or any other Loan Document or arising out of its activities in connection herewith or therewith (whether arising or occurring before or after the date
hereof). All amounts due under this Section 12.2 shall be payable within ten (10) Business Days after demand therefor. The agreements in this Section 12.2 shall survive the resignation of the Administrative Agent, the
replacement of any Lender and the Maturity Date. To the extent that the indemnification set forth in this Section 12.2 may be unenforceable, Borrower shall contribute the maximum portion which it is permitted to pay and satisfy under
applicable Law to the payment and satisfaction of all such indemnified liabilities incurred by the Indemnitees or any of them. Without limiting the generality of any provision of this Section 12.2, to the fullest extent permitted by law,
Borrower hereby waives all rights for contribution or any other rights of recovery with respect to liabilities, losses, damages, costs and expenses arising under or relating to Environmental Laws that it might have by statute or otherwise against
any Indemnitee, except to the extent that such items are determined by a final and non-appealable decision of a court of competent jurisdiction to have resulted solely from the gross negligence or willful misconduct of such Indemnitee. 

12.3 Time of Essence. Time is of the essence for the performance of all Obligations in this Agreement. 

12.4 Severability of Provisions. Each provision of this Agreement is severable from every other provision in determining the
enforceability of any provision. 
  

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 12.5 Amendments. 

(a) No amendment, modification, supplement, extension, termination or waiver of any provision of this Agreement or any other Loan
Document, no approval or consent thereunder, and no consent to any departure by a Borrower or any Subsidiary therefrom, may in any event be effective unless in writing signed by the Administrative Agent (and, in the case of any amendment,
modification or supplement of or to any Loan Document to which Borrower or such Subsidiary is a party, signed by such party, and, in the case of any amendment, modification or supplement to Section 13, signed by Administrative Agent in
its representative capacity), and then only in the specific instance and for the specific purpose given. 
 (b) No amendment,
modification, termination or waiver of any provision of this Agreement or any other Loan Document, or any consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in writing and acknowledged by
Administrative Agent and signed by, Borrower and Lenders having more than (x) 55% of the Commitment of all Lenders or (y) if such Commitment has expired or been terminated, 66 2/3% of the aggregate outstanding principal amount of the
Growth Capital Advance (the “Requisite Lenders”). 
 (c) No amendment, modification, termination or waiver of
any provision of this Agreement or any other Loan Document shall, unless in writing and signed by Administrative Agent and each Lender directly affected thereby: (i) increase or decrease the Commitment of any Lender (which shall be deemed to
affect all Lenders), (ii) reduce the principal of or rate of interest on any Obligation or the amount of any fees payable hereunder (other than waiving the imposition of the Default Rate), (iii) postpone the date fixed for or waive any
payment of principal of or interest on the Growth Capital Advance or any Revolving Advance, or any fees hereunder, (iv) release all or substantially all of the Collateral, or consent to a transfer of all or substantially all of the Intellectual
Property, in each case, except as otherwise expressly permitted in the Loan Documents (which shall be deemed to affect all Lenders), (v) subordinate the lien granted in favor of the Administrative Agent securing the Obligations (which shall be
deemed to affect all Lenders), (vi) release a Loan Party from, or consent to a Loan Party’s assignment or delegation of, such Loan Party’s obligations hereunder and under the other Loan Documents or any Guarantor from its guaranty of
the Obligations (which shall be deemed to affect all Lenders) or (vii) amend, modify, terminate or waive Section 9.4, 9.5 or 12.5(b) or (c). 

(d) Notwithstanding any provision in this Section 12.5 to the contrary, no amendment, modification, termination or waiver
affecting or modifying the rights or obligations of Administrative Agent hereunder shall be effective unless signed by Borrower, Administrative Agent and Requisite Lenders. 
 12.6 Integration. This Agreement and the Loan Documents, together with all attachments hereto and thereto and all documents delivered in connection herewith or therewith, including but not limited
to the Annual Projections, represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the
subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 
 12.7
Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.

 12.8 Survival. All covenants, representations and warranties made in this Agreement continue in full force until this
Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied. The obligation of
Borrower in Section 12.2 to indemnify the Administrative Agent and the Lenders shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 

12.9 Confidentiality. In handling any confidential information, Administrative Agent and each Lender shall exercise the same
degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Administrative Agent’s or such Lender’s Subsidiaries or Affiliates in connection with their business with
Borrower; (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Administrative Agent or such Lender shall use commercially reasonable efforts to

  

 35 

 
obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order; (d) to
Administrative Agent’s or such Lender’s regulators or as otherwise required in connection with Administrative Agent’s or such Lender’s examination or audit; and (e) as Administrative Agent and Lenders consider appropriate in
exercising remedies under the Loan Documents; and (f) to third-party service providers of the Administrative Agent or any Lender so long as such service providers have executed a confidentiality agreement with the Administrative Agent or such
Lender with terms no less restrictive than those contained herein. Confidential information does not include information that either: (i) is in the public domain or in the Administrative Agent’s or such Lender’s possession when
disclosed to Administrative Agent or such Lender, or becomes part of the public domain after disclosure to Administrative Agent or such Lender; or (ii) is disclosed to Administrative Agent or a Lender by a third party, if Administrative Agent
or such Lender does not know that the third party is prohibited from disclosing the information. 
 Administrative Agent and
each Lender may use confidential information for any purpose, including, without limitation, for the development of client databases, reporting purposes, and market analysis, so long as Administrative Agent or such Lender does not disclose
Borrower’s identity or the identity of any person associated with Borrower unless otherwise expressly permitted by this Agreement. The provisions of the immediately preceding sentence shall survive the termination of this Agreement. 

12.10 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrower and Administrative Agent or any
Lender arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled.

 12.11 Payments Set Aside. To the extent that any payment by or on behalf of Borrower is made to the Administrative
Agent or any Lender, or the Administrative Agent or any Lender exercises its right of set-off, and such payment or the proceeds of such set-off or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or
required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such set-off had not
occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the
date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect. 
 12.12
[Reserved.] 
 12.13 Electronic Execution of Documents. The words “execution,”
“signed,” “signature” and words of like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and
enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform
Electronic Transactions Act. 
 12.14 Captions. The headings used in this Agreement are for convenience only and shall
not affect the interpretation of this Agreement. 
 12.15 Construction of Agreement. The parties mutually acknowledge
that they and their attorneys have participated in the preparation and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist. 

12.16 Relationship. The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement.
The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract. 

 

 36 

 12.17 Third Parties. Nothing in this Agreement, whether express or implied, is
intended to: (a) confer any benefits, rights or remedies under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve or discharge the
obligation or liability of any person not an express party to this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against any party to this Agreement. 

12.18 Effect of Amendment and Restatement. Except as otherwise set forth herein, this Agreement is intended to and does
completely amend and restate, without novation, the Original Agreement. All security interests granted under the Original Agreement are hereby confirmed and ratified and shall continue to secure all Obligations under this Agreement. 

13 THE ADMINISTRATIVE AGENT 
 13.1 Appointment and Authorization of Administrative Agent. Each Lender hereby irrevocably appoints, designates and authorizes the Administrative Agent to take such action on its behalf
under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together with such powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any other Loan Document, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein,
nor shall the Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or
any other Loan Document or otherwise exist against the Administrative Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in the other Loan Documents with reference to the Administrative
Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only
an administrative relationship between independent contracting parties. 
 13.2 Delegation of Duties. The
Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through its, or its Affiliates’, agents, employees or attorneys-in-fact and shall be entitled to obtain and rely upon the advice of counsel
and other consultants or experts concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence
or willful misconduct. 
 13.3 Liability of Administrative Agent. Except as otherwise provided herein, no
Agent-Related Person shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct in connection with its duties expressly set forth herein), or (b) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by Borrower or any officer
thereof, contained herein or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan
Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of Borrower or any other party to any Loan Document to perform its obligations hereunder or
thereunder. No Agent-Related Person shall be under any obligation to any Lender or participant to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of Borrower or any Affiliate thereof. 
 13.4 Reliance by
Administrative Agent. The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, consent, certificate, affidavit, letter,
telegram, facsimile, telex or telephone message, electronic mail message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and
statements of legal counsel (including counsel to Borrower), independent accountants and other experts selected by the Administrative Agent. The Administrative Agent shall be fully justified in failing or refusing to take any action under any Loan
Document unless it shall first receive such advice or concurrence of all Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its 

 

 37 

 
satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall in all
cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of all Lenders and such request and any action taken or failure to act pursuant thereto shall
be binding upon all the Lenders. 
 13.5 Notice of Default. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default and/or Event of Default, unless the Administrative Agent shall have received written notice from a Lender or the Borrower, describing such Default or Event of Default. The Administrative Agent
will notify the Lenders of its receipt of any such notice. The Administrative Agent shall take such action with respect to such Default and/or Event of Default as may be directed by all Lenders in accordance with Article 9; provided,
however, that unless and until the Administrative Agent has received any such direction, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default and/or
Event of Default as it shall deem advisable or in the best interest of the Lenders. 
 13.6 Credit Decision; Disclosure of
Information by Administrative Agent. Each Lender acknowledges that no Agent-Related Person has made any representation or warranty to it, and that no act by the Administrative Agent hereafter taken, including any consent to and acceptance of
any assignment or review of the affairs of Borrower or any Affiliate thereof, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender as to any matter, including whether Agent-Related Persons have
disclosed material information in their possession. Each Lender represents to the Administrative Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower and its respective Subsidiaries, and all applicable bank or other
regulatory Laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to the Borrower hereunder. Each Lender also represents that it will, independently and without reliance
upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other
Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Administrative Agent herein, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business,
prospects, operations, property, financial and other condition or creditworthiness of Borrower or any of its Affiliates which may come into the possession of any Agent-Related Person. 

13.7 Indemnification of Administrative Agent. Whether or not the transactions contemplated hereby are consummated, the
Lenders shall indemnify upon demand each Agent-Related Person (to the extent not reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so as to the extent, if any, provided under this Agreement), pro rata, and
hold harmless each Agent-Related Person from and against any and all Indemnified Liabilities (which shall not include legal expenses of the Administrative Agent incurred in connection with the closing of the transactions contemplated by this
Agreement) incurred by it; provided, however, that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities to the extent determined in a judgment by a court of competent
jurisdiction to have resulted from such Agent-Related Person’s own gross negligence or willful misconduct; provided, however, that no action taken in accordance with the directions of all Lenders shall be deemed to constitute
gross negligence or willful misconduct for purposes of this Section 13.7. Without limitation of the foregoing, each Lender shall reimburse the Administrative Agent upon demand for its ratable share of any costs or out-of-pocket expenses
(including Lenders Expenses incurred after the closing of the transactions contemplated by this Agreement) incurred by the Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the
extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of the Borrower. The undertaking in this Section 13.7 shall survive the Maturity Date and the resignation of the Administrative Agent. 

 

 38 

 13.8 Administrative Agent in its Individual Capacity. With respect to its
Credit Extensions, Oxford shall have the same rights and powers under this Agreement as any other Lender and may exercise such rights and powers as though it were not the Administrative Agent, and the terms “Lender” and
“Lenders” include Oxford in its individual capacity. 
 13.9 Successor Administrative Agent. The
Administrative Agent may resign as the Administrative Agent upon ten (10) days’ notice to the Lenders. If the Administrative Agent resigns under this Agreement, all Lenders shall appoint from among the Lenders (or the affiliates thereof) a
successor administrative agent for the Lenders, which successor administrative agent shall (unless an Event of Default has occurred and is continuing) be subject to the approval of the Borrower (which approval shall not be unreasonably withheld or
delayed). If no successor administrative agent is appointed prior to the effective date of the resignation of the Administrative Agent, the Administrative Agent may appoint, after consulting with the Lenders, a successor administrative agent from
among the Lenders (or the affiliates thereof). Upon the acceptance of its appointment as successor administrative agent hereunder, the Person acting as such successor administrative agent shall succeed to all the rights, powers and duties of the
retiring Administrative Agent and the respective term “Administrative Agent” means such successor administrative agent and the retiring Administrative Agent’s appointment, powers and duties in such capacities shall be terminated
without any other further act or deed on its behalf. After any retiring Administrative Agent’s resignation hereunder as the Administrative Agent, the provisions of this Article 13 and Sections 2.4(d) and 12.2 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent under this Agreement. If no successor administrative agent has accepted appointment as the Administrative Agent by the date ten (10) days
following a retiring Administrative Agent’s notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of the Administrative Agent
hereunder until such time, if any, as the Lenders appoint a successor agent as provided for above. 
 13.10 Administrative
Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to Borrower, the Administrative
Agent (irrespective of whether the principal of any Loan, shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be
entitled and empowered, by intervention in such proceeding or otherwise: 
 (a) to file and prove a claim for the whole amount
of the principal and interest owing and unpaid in respect of the Credit Extensions and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and
the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the
Administrative Agent under Section 2.4 allowed in such judicial proceeding; and 
 (b) to collect and receive any
monies or other property payable or deliverable on any such claims and to distribute the same; 
 and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the
making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts
due the Administrative Agent under Sections 2.4. 
 13.11 Collateral and Guaranty Matters. The Lenders
irrevocably authorize the Administrative Agent, at its option and in its discretion, to release any Guarantor and any Lien on any Collateral granted to or held by the Administrative Agent under any Loan Document (i) upon the date that all
Obligations due hereunder have been fully and indefeasibly paid in full and no Growth Capital Loan Commitments or other obligations of any Lender to provide funds to the Borrower under this Agreement remain outstanding, (ii) that is transferred
or to be transferred as part of or in connection with any Transfer permitted hereunder or under any other Loan Document or any Involuntary Disposition, or (iii) as approved in accordance with Section 12.01. Upon request by the
Administrative Agent at any time, all Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of Property, pursuant to this Section 13.11. 

 

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 13.12 Cooperation of Borrower. If necessary, Borrower agrees to
(i) execute any documents (including new Notes) reasonably required to effectuate and acknowledge each assignment of a Growth Capital Loan Commitment or Loan to an assignee in accordance with Section 12.1, and (ii) make the
Borrower’s management available once during each Fiscal Year to meet with the Administrative Agent and the prospective participants and assignees of Growth Capital Loan Commitments or Credit Extensions. Subject to the provisions of
Section 12.9, Borrower authorizes each Lender to disclose to any prospective participant or assignee of a Growth Capital Loan Commitment, any and all information in such Lender’s possession concerning the Borrower and its financial
affairs which has been delivered to such Lender by or on behalf of the Borrower pursuant to this Agreement, or which has been delivered to such Lender by or on behalf of the Borrower in connection with such Lender’s credit evaluation of the
Borrower prior to entering into this Agreement provided that such prospective participant is bound to abide by the provisions of Section 12.9. 
 13.13 Nonliability of Lenders. The relationship between the Borrower on the one hand and the Lenders and the Administrative Agent on the other hand shall be solely that of borrower or
guarantor, as applicable, and lender. Neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty to Borrower arising out of or in connection with this Agreement or any of the other Loan Documents, and the
relationship between the borrower, on the one hand, and the Administrative Agent and the Lenders, on the other hand, in connection herewith or therewith is solely that of debtor and creditor. Neither the Administrative Agent nor any Lender
undertakes any responsibility to Borrower to review or inform Borrower of any matter in connection with any phase of any Borrower’s business or operations. The Borrower agrees that neither the Administrative Agent nor any Lender shall have
liability to Borrower (whether sounding in tort, contract or otherwise) for losses suffered by Borrower in connection with, arising out of, or in any way related to the transactions contemplated and the relationship established by the Loan
Documents, or any act, omission or event occurring in connection therewith, unless it is determined in a final non-appealable judgment by a court of competent jurisdiction that such losses resulted from the gross negligence or willful misconduct of
the party from which recovery is sought. NO LENDER PARTY SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE BY OTHERS OF ANY INFORMATION OR OTHER MATERIALS OBTAINED THROUGH INTRALINKS OR OTHER SIMILAR INFORMATION TRANSMISSION SYSTEMS IN CONNECTION
WITH THIS AGREEMENT, NOR SHALL ANY LENDER OR ITS AFFILIATES HAVE ANY LIABILITY WITH RESPECT TO, AND THE BORROWER HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE FOR ANY SPECIAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES RELATING TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT OR ARISING OUT OF ITS ACTIVITIES IN CONNECTION HEREWITH OR THEREWITH (WHETHER BEFORE OR AFTER THE CLOSING DATE). The Borrower acknowledges that it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents to which it is a party. No joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Administrative Agent, Lenders or among
the Borrower and the Lenders and the Administrative Agent. 
 13.14 Payments Set Aside. To the extent that any payment by
or on behalf of Borrower is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of set-off, and such payment or the proceeds of such set-off or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection
with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment
had not been made or such set-off had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share of any amount so recovered from or repaid by the Administrative Agent, plus interest
thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect. 
 13.15 Deliveries by Administrative Agent. In all cases where Administrative Agent agrees hereunder to provide copies of correspondence from Borrower to another Lender, Administrative Agent shall do
so promptly under the circumstances. 
  

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 14 DEFINITIONS 

14.1 Definitions. As used in this Agreement, the following terms have the following meanings: 

“Account” is any “account” as defined in the Code with such additions to such term as may hereafter be
made, and includes, without limitation, all accounts receivable and other sums owing to Borrower. 
 “Account
Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made. 
 “Additional European Collateral” is that certain (1) Intraject Final Assembly Machine and Trayloader for inspection purchased from Sortimat Technology GmbH, (2) Automatic
Inspection Machine purchased from Seidnader Maschinenbau GmbH, and (3) Cartoners purchased from IMA s.p.a., in the principal amount not to exceed Seven Million Dollars ($7,000,000.00). 

“Administrative Agent” has is defined in the preamble hereof. 

“Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set
forth on Schedule 14.1 or such other address or account as the Administrative Agent may from time to time notify the Borrower and the Lenders. 
 “Affiliate” of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and
each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members. 
 “Agent-Related Persons” means the Administrative Agent, together with its Affiliates, and its Approved Funds, and the officers, directors, employees, agents, advisors, auditors and
Controlling Persons and attorneys-in-fact of such Persons and Affiliates; provided, however, that no Agent-Related Person shall be an Affiliate of the Borrower. 
 “Agreement” is defined in the preamble hereof, as the same may be amended, amended and restated, supplemented, or otherwise modified in accordance with the terms thereof from time to
time. 
 “Approved Fund” means (i) any Person (other than a natural person) engaged in making, purchasing,
holding, or investing in commercial loans and similar extensions of credit and that is advised, administered, or managed by a Lender, or an Affiliate of a Lender (or an entity or an Affiliate of an entity that administers, advises or manages a
Lender); (ii) with respect to any Lender that is an investment fund, any other investment fund that invests in loans and that is advised, administered or managed by the same investment advisor as such Lender or by an Affiliate of such
investment advisor; and (iii) any third party which provides “warehouse financing” to a Person described in the preceding clause (i) or (ii) (and any Person described in said clause (i) or (ii) shall also be deemed
an Approved Fund with respect to such third party providing such warehouse financing). 
 “Availability Amount”
is (a) the lesser of (i) the Revolving Line or (ii) the amount available under the Borrowing Base minus (b) the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal
to the Letter of Credit Reserve, minus (c) the FX Reduction Amount, minus (d) any amounts used for Cash Management Services, and minus (e) the outstanding principal balance of any Revolving Advances. 

“Bank” is Silicon Valley Bank. 
 “Borrower” is defined in the preamble hereof. 
  

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 “Borrower’s Books” are all Borrower’s books and records including
ledgers, federal and state tax returns, records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information.

 “Borrowing Base” is (a) 85% of Eligible Accounts plus (b) the lesser of 30% of the value of
Borrower’s Eligible Inventory (valued at the lower of cost or wholesale fair market value) or $3,000,000, as determined by Lenders from Borrower’s most recent Transaction Report; provided, however, that Lenders may decrease the foregoing
percentages (and amount) in their good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Lenders, may adversely affect Collateral. 

“Borrowing Resolutions” are, with respect to any Person, those resolutions substantially in the form attached
hereto as Exhibit F. 
 “Business Day” is any day other than a Saturday, Sunday or other day on
which banking institutions in the State of California are authorized or required by law or other governmental action to close. 

“Businesses” means, at any time, a collective reference to the businesses operated by the Borrower and its Subsidiaries
at such time. 
 “Capital Lease” means, with respect to any Person, any lease of any property (whether real,
personal or mixed) by such Person as lessee which would, in accordance with GAAP, be required to be accounted for as a capital lease on the balance sheet of such person. 
 “Capital Stock” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other
rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership
or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interest in such Person (including partnership,
member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination. 

“Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United
States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from
either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.; and (c) Lender’s certificates of deposit issued maturing no more than one (1) year after issue. For the avoidance of doubt, the direct
purchase by the Borrower, co-borrower, or any Subsidiary of the Borrower of any Auction Rate Securities, or purchasing participations in, or entering into any type of swap or other derivative transaction, or otherwise holding or engaging in any
ownership interest in any type of Auction Rate Security by the Borrower, co-borrower, or any Subsidiary of the Borrower shall be conclusively determined by the Lenders as an ineligible Cash Equivalent, and any such transaction shall expressly
violate each other provision of this agreement governing Permitted Investments. Notwithstanding the foregoing, Cash Equivalents does not include and each Borrower and Subsidiary is prohibited from purchasing, purchasing participations in, entering
into any type of swap or other equivalent derivative transaction, or otherwise holding or engaging in any ownership interest in any type of debt instrument, including, without limitation, any corporate or municipal bonds with a long-term nominal
maturity for which the interest rate is reset through a dutch auction and more commonly referred to as an auction rate security. 
 “Cash Management Services” is defined in Section 2.1.5. 
 “Change in Control” means any event, transaction, or occurrence as a result of which (a) the shareholders of record, as of the Effective Date shall cease to own of record (i) at
least 60% of the Capital Stock of Borrower, or (ii) Capital Stock having a majority of the ordinary voting power for the election of directors of Borrower (on a fully diluted basis), (b) any “person” (as such term is defined in
Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934, as an amended (the “Exchange Act”)), other than an existing investor, or a trustee or other fiduciary 

 

 42 

 
holding securities under an employee benefit plan of Borrower, is or becomes a beneficial owner (within the meaning Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of
securities of Borrower, representing twenty-five percent (25%) or more of the combined voting power of Borrower’s then outstanding securities; or (c) during any period of twelve consecutive calendar months, individuals who at the
beginning of such period constituted the Board of Directors of Borrower (together with any new directors whose election by the Board of Directors of Borrower was approved by a vote of at least two-thirds of the directors then still in office who
either were directions at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason other than death or disability to constitute a majority of the directors then in office. 

“Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of
California; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article
or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Lenders’ Lien on any Collateral is governed
by the Uniform Commercial Code in effect in a jurisdiction other than the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes on the provisions
thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 
 “Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A. 
 “Collateral Account” is any Deposit Account, Securities Account, or Commodity Account. 
 “Commitment” is the Growth Capital Loan Commitment or the Revolving Loan Commitment, as applicable. 
 “Commodity Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter be made. 

“Compliance Certificate” is that certain certificate in the form attached hereto as Exhibit B. 

“Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for
(a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co made, discounted or sold with recourse by that Person, or for which that Person is
directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement,
or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of
business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the
Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 
 “Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party
or by which it or any of its Property is bound. 
 “Control” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative
thereto. Without limiting the generality of the foregoing, a Person shall be deemed to be Controlled by another Person if such other Person possesses, directly or indirectly, power to vote 5% or more of the securities having ordinary voting power
for the election of directors, managing general partners or the equivalent. 
  

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 “Control Agreement” is any control agreement entered into among the
depository institution at which Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and the Administrative Agent pursuant to
which the Administrative Agent obtains control (within the meaning of the Code) over such Deposit Account, Securities Account, or Commodity Account 
 “Credit Extension” is the Growth Capital Advance, any Revolving Advance, Letter of Credit, FX Forward Contract, amount utilized for Cash Management Services, or any other extension of
credit by any Lender for Borrower’s benefit. 
 “Debtor Relief Laws” means the Title 11 of the United
States code entitled “Bankruptcy” as now and hereafter in effect or any successor statute, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership,
insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally. 

“Default” means any event which with notice or passage of time or both, would constitute an Event of Default.

 “Default Rate” is defined in Section 2.3(b). 

“Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may
hereafter be made. 
 “Designated Deposit Account” is Borrower’s deposit account, account number [***],
maintained with Silicon Valley Bank. 
 “Disbursement Letter” is that certain form attached hereto as
Exhibit C-2. 
 “Dollars,” “dollars” and “$” each mean lawful money of the United
States. 
 “Effective Date” is defined in the preamble hereof. 

“Effective Date Subordinated Debt” is Subordinated Debt received by Borrower on the Original Effective Date, on terms
and from investors reasonably acceptable to Administrative Agent and the Lenders, of at least Ten Million Seven Hundred Thousand Dollars ($10,700,000). 
 “Effective Date Subordinated Debt Documents” means that certain Note Purchase Agreement dated as of the Original Effective Date, and all Exhibits and Schedules thereto, and all
instruments and documents to be executed and or delivered in connection therewith, all in form and content reasonably acceptable to Administrative Agent and the Lenders, pursuant to which Borrower will raise the Effective Date Subordinated Debt.

 “Effective Date Subordination Agreement” is a Subordination Agreement, in form and content reasonably
acceptable to Administrative Agreement and the Lenders, duly executed by the holders of the Original Effective Date Subordinated Debt. 
 “Eligible Accounts” means Accounts which arise in the ordinary course of Borrower’s business that meet all Borrower’s representations and warranties in Section 5.21.
Administrative Agent and Lenders reserve the right at any time after the Effective Date to adjust any of the criteria set forth below and to establish new criteria in their good faith business judgment. Unless Administrative Agent otherwise agrees
in writing, Eligible Accounts shall not include: 
 (a) Accounts that the Account Debtor has not paid within ninety
(90) days of invoice date regardless of invoice payment period terms; 
  

 44 
  

	[***]	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. 

 (b) Accounts owing from an Account Debtor, fifty percent (50%) or more of whose
Accounts have not been paid within ninety (90) days of invoice date; 
 (c) Accounts owing from an Account Debtor which
does not have its principal place of business in the United States or Canada unless such Accounts are otherwise Eligible Accounts and (i) covered in full by credit insurance satisfactory to Administrative Agent, less any deductible,
(ii) supported by letter(s) of credit acceptable to Administrative Agent, (iii) supported by a guaranty from the Export-Import Bank of the United States, or (iv) that Administrative Agent otherwise approves of in writing; 

(d) Accounts billed and/or payable outside of the United States unless Administrative Agent has a first priority, perfected security
interest or other enforceable Lien in such Accounts under all applicable laws, including foreign laws; 
 (e) Accounts owing
from an Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account Debtor (as creditor, lessor, supplier or otherwise—sometimes called “contra” accounts, accounts payable, customer deposits or
credit accounts), with the exception of customary credits, adjustments and/or discounts given to an Account Debtor by Borrower in the ordinary course of its business; 
 (f) Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee, or agent; 
 (g) Accounts with credit balances over ninety (90) days from invoice date; 

(h) Accounts owing from an Account Debtor which is a United States government entity or any department, agency, or instrumentality
thereof unless Borrower has assigned its payment rights to Administrative Agent and the assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended; 

(i) Accounts for demonstration or promotional equipment, or in which goods are consigned, or sold on a “sale guaranteed”,
“sale or return”, “sale on approval”, or other terms if Account Debtor’s payment may be conditional; 

(j) Accounts owing from an Account Debtor where goods or services have not yet been rendered to the Account Debtor (sometimes called memo
billings or pre-billings); 
 (k) Accounts subject to contractual arrangements between Borrower and an Account Debtor where
payments shall be scheduled or due according to completion or fulfillment requirements where the Account Debtor has a right of offset for damages suffered as a result of Borrower’s failure to perform in accordance with the contract (sometimes
called contracts accounts receivable, progress billings, milestone billings, or fulfillment contracts); 
 (l) Accounts owing
from an Account Debtor the amount of which may be subject to withholding based on the Account Debtor’s satisfaction of Borrower’s complete performance (but only to the extent of the amount withheld; sometimes called retainage billings);

 (m) Accounts subject to trust provisions, subrogation rights of a bonding company, or a statutory trust; 

(n) Accounts owing from an Account Debtor that has been invoiced for goods that have not been shipped to the Account Debtor unless
Administrative Agent, Borrower, and the Account Debtor have entered into an agreement acceptable to Administrative Agent in its sole discretion wherein the Account Debtor acknowledges that (i) it has title to and has ownership of the goods
wherever located, (ii) a bona fide sale of the goods has occurred, and (iii) it owes payment for such goods in accordance with invoices from Borrower (sometimes called “bill and hold” accounts); 

 

 45 

 (o) Accounts for which the Account Debtor has not been invoiced; 

(p) Accounts that represent non-trade receivables or that are derived by means other than in the ordinary course of Borrower’s
business; 
 (q) Accounts for which Borrower has permitted Account Debtor’s payment to extend beyond 90 days; 

(r) Accounts subject to chargebacks or others payment deductions taken by an Account Debtor; 

(s) Accounts in which the Account Debtor disputes liability or makes any claim (but only up to the disputed or claimed amount), or if the
Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business; 
 (t) Accounts owing from
an Account Debtor with respect to which Borrower has received Deferred Revenue (but only to the extent of such Deferred Revenue); 
 (u) Accounts owing from an Account Debtor, whose total obligations to Borrower exceed twenty-five percent (25%) of all Accounts (except for Cardinal, McKesson and AmeriSource Bergen and, for which
such percentage is fifty percent (50%)), for the amounts that exceed such percentage, unless Administrative Agent and Lenders approve in writing; and 
 (v) Accounts for which Administrative Agent in its good faith business judgment determines collection to be doubtful. 
 “Eligible Inventory” means Inventory that meets all of Borrower’s representations and warranties in Section 5.21 and is otherwise acceptable to Administrative Agent in
all respects; provided that Eligible Inventory is limited to finished goods Inventory located at Borrower’s domestic distribution facility, with respect to which Administrative Agent has obtained a bailee agreement or lessor’s
acknowledgement, in form and content reasonably acceptable to Administrative Agent. 
 “Environmental Laws”
means the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 5101, et seq.), the Resource Conservation and
Recovery Act (42 U.S.C. § 6901, et seq.), the Federal Clean Water Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic Substances Control Act (15 U.S.C.
§ 2601 et seq.), the Safe Drinking Water Act (42 U.S.C. § 300f to 300j-26 et seq.), the Oil Pollution Act of 1990 (33 U.S.C. § 2701 et seq.) and the Occupational Safety and Health Act (29
U.S.C. § 651 et seq.), as such laws may be amended or otherwise modified from time to time, and any other federal, state, local, foreign and other applicable statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions and common law relating to pollution, the protection of the environment, natural resources, human health or the release of any materials into the
environment, including those related to Hazardous Materials, hazardous substances or wastes, indoor and outdoor air emissions, soil, groundwater, wastewater, surface water, stormwater, wetlands, sediment and discharges of wastewater to public
treatment systems. 
 “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, losses, punitive damages, consequential damages, costs of environmental investigation and remediation, fines, penalties, indemnities or expenses (including all reasonable fees, disbursements and expenses of counsel, experts
and consultants)), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any
Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which
liability is assumed or imposed with respect to any of the foregoing. 
  

 46 

 “Equipment” is all “equipment” as defined in the Code with such
additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 

“Equity Event” means the receipt by Borrower, after the Effective Date, and in addition to the Effective Date
Subordinated Debt and the Post-Effective Date Subordinated Debt, of net proceeds from the sale and issuance of Borrower’s equity securities or Subordinated Debt, or from a partnership or collaboration (in each case, on terms and conditions
reasonably acceptable to Administrative Agent), of at least Ten Million Dollars ($10,000,000). 
 “ERISA” is
the Employment Retirement Income Security Act of 1974, and its regulations. 
 “ERISA Affiliate” means any
corporation, trade or business (whether or not incorporated) under common control with Borrower within the meaning of Section 414(b) or (c) of the Internal Revenue Code (and Sections 414(m) and (o) of the Internal Revenue Code for
purposes of provisions relating to Section 412 of the Internal Revenue Code). Any former ERISA Affiliate of Borrower or any of its Subsidiaries shall continue to be considered an ERISA Affiliate of Borrower or any of its Subsidiaries within the
meaning of this definition with respect to the period such entity was an ERISA Affiliate of Borrower or any of its Subsidiaries and with respect to liabilities arising after such period for which Borrower or any of its Subsidiaries could be liable
under the Internal Revenue Code or ERISA. 
 “ERISA Event” means (a) a Reportable Event with respect to a
Pension Plan; (b) a withdrawal by a Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a
cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of
proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension
Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon Borrower or any ERISA Affiliate; (g) the occurrence of
an act or omission which could give rise to the imposition on Borrower or any ERISA Affiliate of fines, penalties, taxes or related charges under Chapter 43 of the Internal Revenue Code or under Section 409, Section 502(c), (i) or
(l), or Section 4071 of ERISA in respect of any Plan; (h) the assertion of a material claim (other than routine claims for benefits) against any Plan other than a Multiemployer Plan or the assets thereof, or against the Borrower or any
ERISA Affiliate in connection with any Plan; (i) receipt from the IRS of notice of the failure of any Pension Plan (or any other Plan intended to be qualified under Section 401(a) of the Internal Revenue Code) to qualify under
Section 401(a) of the Internal Revenue Code, or the failure of any trust forming part of any Pension Plan to qualify for exemption from taxation under Section 501(a) of the Internal Revenue Code; (j) the imposition of a Lien pursuant
to Section 401(a)(29) or 412(n) of the Internal Revenue Code or pursuant to ERISA with respect to any Pension Plan; (k) the commencement of any administrative investigation, audit or other administrative proceeding by the Department of
Labor, IRS or other Governmental Authority, including any voluntary compliance submission through the IRS’s Employee Plans Compliance Resolution System or the Department of Labor’s Voluntary Fiduciary Correction Program; or (l) the
occurrence of a non-exempt “prohibited transaction” within the meaning of Section 406 of ERISA or Section 4975 of the Internal Revenue Code. 
 “European Collateral” means specific items of equipment which the Lenders agree in writing, in their sole and absolute discretion, to exclude from the definition of
Collateral hereunder. 
 “Event of Default” is defined in Section 8. 

“Excluded European Property” means (i) Borrower’s Equipment (other than the Additional European Collateral)
located in any European country as of the Effective Date, and (ii) any other specific item(s) of Borrower’s property located in any European country after the Effective Date which the Lenders expressly agree in writing, in their sole and
absolute discretion, to exclude from the definition of “Collateral” hereunder; for purposes of the foregoing clause (ii), Lenders agree that to the extent Borrower is not required pursuant to the terms of

  

 47 

 
Sections 6.21 and 6.22 to cause any particular property to become subject to the UK Fixed Charge or a Perfected First Lien, such property shall be deemed “Excluded European
Property”. For the avoidance of doubt, the Additional European Collateral is not “Excluded European Property. 

“Excluded Taxes” means, with respect to the Administrative Agent or any Lender or any other recipient of any payment to
be made by or on account of any obligation of the Borrower hereunder or under any other Loan Document, (a) taxes imposed on or measured by its overall net income (however denominated), and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable Lending Office is located, and
(b) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which the Borrower is located. 
 “Exclusion Event” means an event or events resulting in the exclusion of the Borrower or any Subsidiary or any of the Facilities from participation in any Federal program relevant to
Borrower’s business. 
 “Facilities” means, at any time, the facilities and real properties owned, leased,
managed or operated by Borrower or any Subsidiary, from which Borrower or any Subsidiary provides or furnishes goods or services. 
 “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers on such day, as published by the Federal Reserve Bank on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on
such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average
rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Administrative Agent on such day on such transactions as determined by the Administrative Agent, in its sole discretion. 

“First Supplemental UK Equipment Filing” is defined in Section 6.21 hereof. 

“Fiscal Year” means the fiscal year of Borrower ending on December 31 of each calendar year. 

“Foreign Currency” means lawful money of a country other than the United States. 

“Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than the United States of
America. For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 
 “Funding Date” is any date on which a Credit Extension is made to or for the account of Borrower which shall be a Business Day. 

“FX Business Day” is any day when (a) Bank’s Foreign Exchange Department is conducting its normal
business and (b) the Foreign Currency being purchased or sold by Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency. 

“FX Forward Contract” is defined in Section 2.1.4. 

“FX Reduction Amount” is defined in Section 2.1.4. 

“FX Reserve” is defined in Section 2.1.4. 

“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of
the accounting profession, which are applicable to the circumstances as of the date of determination. 
  

 48 

 “GE Collateral” means the “Collateral” (as defined in that
certain Master Loan and Security Agreement by and between General Electric Capital Corporation and Borrower, dated as of March 5, 2007, and attached as Exhibit G hereto, the “GE Document”), and the proceeds thereof.

 “General Intangibles” is all “general intangibles” as defined in the Code in effect on the date
hereof with such additions to such term as may hereafter be made, and includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether
published or unpublished, any patents, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment
intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell
real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of
insurance and rights to payment of any kind. 
 “Governmental Approval” is any consent, authorization,
approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 

“Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any
self-regulatory organization. 
 “Growth Capital Advance” is defined in Section 2.1.1(a).

 “Growth Capital Amortization Date” means August 1, 2011. 

“Growth Capital Final Payment” means a fee in the amount of One Million Two Hundred Thousand Dollars ($1,200,000).

 “Growth Capital Funding Date” is any date on which the Growth Capital Advance is made to or on account of
Borrower. 
 “Growth Capital Interest Only Payment Date” is defined in Section 2.1.1(b).

 “Growth Capital Interest Only Period” means the period of time commencing on the Growth Capital Funding Date
through the day before the Growth Capital Amortization Date. 
 “Growth Capital Loan Commitment” is Twenty Five
Million Dollars ($25,000,000). 
 “Growth Capital Loan Commitment Percentage” means 72% with respect to Oxford
and 28% with respect to Bank. 
 “Growth Capital Payment Date” is defined in Section 2.1.1(b).

 “Growth Capital Prepayment Fee” is an additional fee payable to the Lenders in the amount equal to
(x) three percent (3.0%) of the principal amount of any portion of the Growth Capital Advance prepaid from the Effective Date through July 1, 2012; and (y) two percent (2.0%) of the principal amount of any portion of the
Growth Capital Advance prepaid at any time thereafter. 
 “Growth Capital Repayment Period” is a period of time
equal to thirty (30) consecutive months commencing on the Growth Capital Amortization Date. 
 “Growth Capital
Scheduled Payment” is defined in Section 2.1.1(b). 
  

 49 

 “Growth Capital Scheduled Payment Date” is defined in
Section 2.1.1(b). 
 “Guarantor” is any present or future guarantor of the Obligations. 

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances,
wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, lead-based paint, toxic mold or fungus, radon gas, infectious or medical wastes and all other substances
or wastes of any nature regulated pursuant to any Environmental Law. 
 “Indebtedness” is (a) indebtedness
for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital
lease obligations, and (d) Contingent Obligations. 
 “Indemnified Liabilities” has the meaning set forth
in Section 12.2 hereof. 
 “Indemnitees” has the meaning set forth in Section 12.2
hereof. 
 “Insolvency Proceeding” is any proceeding by or against any Person under the United States
Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 

“Intellectual Property” means any copyright, trademark, servicemark, patent, design right, software, trade secret of
Borrower and any applications, registrations, renewals, extensions, and improvements thereof. 
 “Inventory” is
all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials,
work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the
above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership
interest or other securities), and any loan, advance or capital contribution to any Person. 
 “Involuntary
Disposition” means any loss of, damage to or destruction of, or any condemnation or other taking for public use of, any Property of Borrower. 
 “IRC” means the Internal Revenue Code 1986, as amended. 

“Key Person” is any of Borrower’s Chief Executive Officer (who is Roger L. Hawley as of the Effective Date), Chief
Financial Officer (who is Ann Rhodes as of the Effective Date), or President (who is Stephen J. Farr, Ph.D. as of the Effective Date). 
 “Knowledge” means the actual knowledge of Borrower. 

“Letter of Credit” means a standby letter of credit issued by Bank or another institution based upon an application,
guarantee, indemnity or similar agreement on the part of Bank as set forth in Section 2.1.3(a). 
 “Letter of
Credit Application” is defined in Section 2.1.3(a). 
 “Letter of Credit Reserve” has the
meaning set forth in Section 2.1.3(g). 
 “Laws” means, collectively, all international, foreign,
federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, compacts, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority
charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case
whether or not having the force of law. 
  

 50 

 “Lenders Expenses” are all audit fees and expenses, costs, and expenses
(including reasonable attorneys’ fees and expenses) incurred by the Administrative Agent and each Lender for preparing, negotiating, administering, amending, defending and enforcing the Loan Documents (including, without limitation, those
incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower. 

“Lending Office” means, as to any Lender, such office or offices as a Lender may from time to time notify the
Administrative Agent. 
 “Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or
other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 

“Liquidity Ratio” means a ratio of unrestricted cash and Cash Equivalents maintained with Bank or Bank’s
Affiliates, plus excess availability under the Revolving Line, to all Indebtedness owing the Lenders. 
 “Loan
Documents” are, collectively, this Agreement, the Warrants, the Perfection Certificate, the Disbursement Letter, the Side Letter, any Note or Notes, and any other present or future agreement between Borrower any Guarantor and/or for the
benefit of any Lender in connection with this Agreement, all as amended, restated, or otherwise modified. 
 “Loan
Party” means any future or existing Borrower or Guarantor hereunder. 
 “Material Adverse Change” is
(a) a material impairment in the perfection or priority of Lenders’ Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of
Borrower; or (c) a material impairment of the prospect of repayment of any portion of the Obligations. 
 “Material
Contract” means any lease of real or personal property, contract or other arrangement to which Borrower or any of its Subsidiaries is a party (other than the Loan Documents), for which breach, nonperformance, cancellation or failure to
renew could reasonably be expected to result in a Material Adverse Change. 
 “Maturity Date” is the earliest
of (a) January 1, 2014, (b) the occurrence of an Event of Default resulting in the Obligations becoming due and payable in accordance with the terms of this Agreement, or (c) the date of any prepayment of all outstanding
Obligations hereunder. 
 “Multiemployer Plan” means any employee benefit plan of the type described in
Sections 4001(a)(3) or 3(37) of ERISA that is sponsored or maintained by Borrower or any ERISA Affiliate or to which Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding six (6) plan years, has
made or been obligated to make contributions. 
 “Note” means for the Growth Capital Advance and the Revolving
Advances, one of the secured promissory notes of Borrower substantially in the form of Exhibit E. 

“Obligations” are Borrower’s obligation to pay when due any debts, principal, interest, Lender Expenses, Growth
Capital Final Payment, Growth Capital Prepayment Fee, Revolving Line Termination Fee and other amounts Borrower owes any Lender now or later, whether under this Agreement, the Loan Documents, or otherwise, including, without limitation, all
obligations relating to letters of credit (including reimbursement obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings
begin and debts, liabilities, or obligations of Borrower assigned to any Lender, and the performance of Borrower’s duties under the Loan Documents. 
 “Operating Documents” are, for any Person, such Person’s formation documents, as certified with the Secretary of State of such Person’s state of formation on a date that is no
earlier than thirty (30) days prior to the 
  

 51 

 
Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or
similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto. 

“Original Effective Date” is defined in Section 2.4(e). 

“Overadvance” is defined in Section 2.2. 

“Oxford” is defined in the preamble hereof. 
 “Payment” means all checks, wire transfers and other items of payment received by any Lender (including proceeds of Accounts and payment of the Obligations in full) for credit to
Borrower’s outstanding Credit Extensions or, if the balance of the Credit Extensions has been reduced to zero, for credit to its deposit accounts. 
 “Payment/Advance Form” is that certain form attached hereto as Exhibit C-1. 
 “Pension Plan” means any Plan, other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by Borrower or any ERISA Affiliate or to which Borrower
or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding six
(6) plan years. 
 “Perfected First Lien” is defined in Section 6.22. 

“Perfection Certificate” is defined in Section 5.1. 

“Permitted Indebtedness” is: 
 (a) Borrower’s Indebtedness to Lenders under this Agreement and the other Loan Documents; 
 (b) Indebtedness existing on the Effective Date and shown on the Perfection Certificate; 
 (c) Subordinated Debt; 
 (d) unsecured Indebtedness to trade creditors incurred in
the ordinary course of business; 
 (e) Indebtedness incurred as a result of endorsing negotiable instruments received in the
ordinary course of business; 
 (f) Indebtedness secured by Permitted Liens; 

(g) financing from General Electric Capital Corporation or its successor or assigns pursuant to the GE Document; and 

(h) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through
(g) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 

“Permitted Investments” are: 
 (a) Investments shown on the Perfection Certificate and existing on the Effective Date; 
 (b) Cash Equivalents; 
  

 52 

 (c) Investments consisting of the endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of Borrower; 
 (d) Investments consisting of deposit accounts in
which Lenders have a perfected security interest; 
 (e) Investments accepted in connection with Transfers permitted by
Section 7.1; 
 (f) Investments of Subsidiaries in or to other Subsidiaries or Borrower and Investments by Borrower
in Subsidiaries not to exceed Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate in any fiscal year; provided each Subsidiary in whom such Investment is made is a guarantor of the Obligations; 

(g) Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the
ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s
Board of Directors; 
 (h) Investments (including debt obligations) received in connection with the bankruptcy or reorganization
of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; 
 (i) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that
this paragraph (i) shall not apply to Investments of Borrower in any Subsidiary; and 
 (j) joint ventures or strategic
alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support, provided that any cash investments by Borrower do not exceed
Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate in any Fiscal Year. 
 “Permitted Liens” are:

 (a) Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the
other Loan Documents; 
 (b) Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or
being contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations
adopted thereunder; 
 (c) purchase money Liens (i) on Equipment acquired or held by Borrower incurred for financing the
acquisition of the Equipment securing no more than One Hundred Thousand Dollars ($100,000) in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the
proceeds of the Equipment; 
 (d) Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature
arising in the ordinary course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed One Hundred Thousand Dollars ($100,000) and which are not delinquent or remain payable without
penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto; 

(e) Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like
obligations incurred in the ordinary course of business (other than Liens imposed by ERISA); 
  

 53 

 (f) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by
Liens described in (a) and (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase; 

(g) leases or subleases of real property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or
sublicenses of property (other than real property or Intellectual Property) granted in the ordinary course of Borrower’s business, if the leases, subleases, licenses and sublicenses do not prohibit granting Lenders a security interest;

 (h) non-exclusive license of Intellectual Property granted to third parties in the ordinary course of business, and licenses
of Intellectual Property that could not result in a legal transfer of title of the licensed property that may be exclusive in the ordinary course of business; 
 (i) Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under Sections 8.4 and 8.7; 

(j) Liens in favor of other financial institutions arising in connection with Borrower’s deposit and/or securities accounts held at
such institutions, provided that the Lenders have a perfected security interest in the amounts held in such deposit and/or securities accounts; and 
 (k) Liens on the GE Collateral pursuant to the GE Document up to a principal amount not to exceed One Million Five Hundred Thousand Dollars ($1,500,000). 

“Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust,
unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 
 “Plan” means (i) any “employee benefit plan” as defined in Section 3(3) of ERISA which is or was sponsored, maintained or contributed to by, or required to be
contributed by the Borrower, any of its Subsidiaries or any of its ERISA Affiliates; and (ii) all other employee benefit plans, programs, policies, agreements or arrangements, including any deferred compensation plan, incentive plan, bonus plan
or arrangement, stock option plan, stock purchase plan, stock award plan or other equity-based plan, change in control agreement, retention, severance pay plan, dependent care plan, sick leave, disability, death benefit, group insurance,
hospitalization, dental, life, any fund, trust or arrangement providing health benefits including multiemployer welfare arrangements, a multiple employer welfare fund or arrangement, cafeteria plan, employee assistance program, scholarship program,
employment contract, retention incentive agreement, termination agreement, severance agreement, non-competition agreement, consulting agreement, confidentiality agreement, vacation policy, employee loan, or other similar plan, agreement or
arrangement, whether written or oral, funded or unfunded, or actual or contingent which is or was sponsored, maintained or contributed to by, or required to be contributed by, the Borrower, any of its Subsidiaries or any of their respective ERISA
Affiliates. 
 “Post Closing Letter” means that certain Post Closing Letter dated as of October 8, 2010,
by and among Borrower and the Lenders. 
 “Post-Effective Date Subordinated Debt” is Subordinated Debt received
by Borrower, on terms and from investors reasonably acceptable to the Lenders, of at least Four Million Three Hundred Thousand Dollars ($4,300,000); provided that the same is subject to the Post-Effective Date Subordination Agreement. 

“Post-Effective Date Subordination Agreement” is a Subordination Agreement, in form and content reasonably acceptable to
Administrative Agreement, duly executed by the holders of the Post-Effective Date Subordinated Debt. 
 “Prime
Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s lowest rate. 

“Proceedings” means any actual or threatened civil, equitable or criminal proceeding litigation, action, suit, claim,
investigation (governmental or judicial or otherwise), dispute indictment or prosecution, pleading, demand or the imposition of any fine or penalty or similar matter. 

 

 54 

 “Property” means any interest of any kind in any property or asset, whether
real, personal or mixed, or tangible or intangible, including Capital Stock. 
 “Reportable Event” means any of
the events set forth in Section 4043(c) of ERISA, other than events for which the thirty-day notice period has been waived. 
 “Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 

“Requisite Lenders” is defined in Section 12.5. 

“Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial Officer and Controller of
Borrower. 
 “Restricted License” is any material license or other agreement with respect to which Borrower is
the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or (b) for which a default under or termination of which
could reasonably be expected to interfere with the Administrative Agent’s right to sell any Collateral. 

“Revolving Advance” or “Revolving Advances” means an advance (or advances) under the Revolving Line.

 “Revolving Commitment Percentage” means 80% with respect to Bank and 20% with respect to Oxford. 

“Revolving Line” is an amount equal to Ten Million Dollars ($10,000,000). 

“Revolving Line Termination Fee” is defined in Section 2.4(g). 

“Sale and Leaseback Transaction” means, with respect to Borrower or any Subsidiary, any arrangement, directly or
indirectly, with any Person whereby Borrower or such Subsidiary shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other
property that it intends to use for substantially the same purpose or purposes as the property being sold or transferred. 

“Securities Account” is any “securities account” as defined in the Code with such additions to such term as
may hereafter be made. 
 “Settlement Date” is defined in Section 2.1.4. 

“Side Letter” is that certain Side Letter to Security Trust Deed dated as of the Original Effective Date, by and between
Borrower and Administrative Agent. 
 “Subordinated Debt” is indebtedness incurred by Borrower subordinated to
all of Borrower’s now or hereafter indebtedness to Lenders (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Lenders entered into between Lenders and the other creditor), in such
amounts and on terms as are acceptable to Lenders. 
 “Subsidiary” means, with respect to any Person, any
Person of which more than 50% of the voting stock or other equity interests (in the case of Persons other than corporations) is owned or controlled directly or indirectly by such Person or one or more of Affiliates of such Person. 

“Surviving Entity” is defined in Section 7.3. 
  

 55 

 “Transaction Report” is that certain report of transactions and schedule of
collections in the form attached hereto as Exhibit D. 
 “Transfer” is defined in
Section 7.1. 
 “UCC” means the Uniform Commercial Code as in effect in any applicable
jurisdiction. 
 “UK Fixed Charge” is defined in Section 6.21. 

“Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities under
Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Internal Revenue Code for the
applicable plan year. 
 “Warrants” are that certain Warrant to Purchase Stock executed by Borrower in favor of
Bank and delivered to Bank in connection with the Original Agreement, and those certain Warrants to Purchase Stock dated on or about the Original Effective Date executed by Borrower in favor of Oxford and delivered to Oxford in connection with the
Original Agreement. 
 [Signature page follows.] 

 

 56 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
Effective Date. 
  

			
	 BORROWER:

	
	 ZOGENIX, INC.

		
	By	 	 /s/ Ann D. Rhoads

		
	Name:	 	 Ann D. Rhoads 

		
	Title:	 	 CFO

	
	 ADMINISTRATIVE AGENT AND LENDER:

	
	 OXFORD FINANCE CORPORATION

		
	By	 	 /s/ John G. Henderson

		
	Name:	 	 John G. Henderson

		
	Title:	 	 Vice President & General Counsel

	
	 LENDER:

	
	 SILICON VALLEY BANK

		
	By	 	 /s/ Derek R. Brunelle

		
	Name:	 	 Derek R. Brunelle

		
	Title:	 	 Team Leader

 [Signature Page to Second Amended and Restated Loan and Security Agreement]  

 EXHIBIT A 

The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property (the
“Collateral”): 
 All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or
rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except in each case as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether
tangible or electronic), cash, deposit accounts, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether
now owned or hereafter acquired, wherever located; and 
 all Borrower’s Books relating to the foregoing, and any and all
claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

Notwithstanding the foregoing, the Collateral does not include: (a) the GE Collateral, or (b) any of the following, whether now
owned or hereafter acquired any copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, patent applications and like
protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether
registered or not, and the goodwill of the business of Borrower connected with and symbolized thereby, know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present, or
future infringement of any of the foregoing; provided, however, the Collateral shall include all Accounts, license and royalty fees and other revenues, proceeds, or income arising out of or relating to any of the foregoing, or (c) any Excluded
European Property. 
 Pursuant to the terms of a certain negative pledge arrangement with Lenders and except as is otherwise
permitted in Section 7.1 hereof and by the definition of “Permitted Lien” herein, Borrower has agreed not to encumber any of its copyright rights, copyright applications, copyright registrations and like protections in each work of
authorship and derivative work, whether published or unpublished, any patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same,
trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, and the goodwill of the business of Borrower connected with and symbolized thereby, know-how, operating manuals, trade
secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present, or future infringement of any of the foregoing, without Lenders' prior written consent 

 EXHIBIT B 

COMPLIANCE CERTIFICATE 
  

			
	TO:	  	Oxford Finance Corporation, as Administrative Agent
	FROM:	  	Zogenix, Inc.

 The undersigned authorized officer of Zogenix,
Inc. hereby certifies that in accordance with the terms and conditions of the Second Amended and Restated Loan and Security Agreement between Borrower, Administrative Agent and Lenders (the “Agreement”), 

(i) Borrower and Guarantor are in complete compliance for the period ending
             with all required covenants except as noted below and 
 (ii)
All representations and warranties of Borrower and Guarantor stated in the Agreement are true and correct as of the date hereof. Attached are the required documents, if any, supporting our certification(s). The Officer further certifies that these
are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes. 

Please indicate compliance status since the last Compliance Certificate by circling Yes, No, or N/A under “Complies” column. 

 

													
	 	  	 Reporting Covenant
	  	 Requirement
	  	Complies
	 1)
	  	Financial statements	  	Monthly within 30 days	  	Yes	  	No	  	N/A
	 2)
	  	Annual (CPA Audited) statements	  	Within 180 days after Fiscal Year End; 2009 audited financials by 8/31/10	  	Yes	  	No	  	N/A
	 3)
	  	Annual Financial Projections/Budget	  	Annually within 30 days of FYE and when revised	  	Yes	  	No	  	N/A
	 4)
	  	A/R & A/P agings, Deferred Revenue report; inventory report	  	Monthly within 30 days	  	Yes	  	No	  	N/A
	 5)
	  	Compliance Certificate	  	Monthly within 30 days	  	Yes	  	No	  	N/A
	 6)
	  	Collateral Audit	  	Initial and Semi-Annual	  	Yes	  	No	  	N/A
	 7)
	  	10-K and 10-Q Filings	  	If applicable	  	Yes	  	No	  	N/A
	 8)
	  	Transaction Report	  	Monthly within thirty (30) days, when Borrower’s cash on deposit with Bank is equal to or greater than Ten Million Dollars ($10,000,000); Weekly otherwise; and,
with each Revolving Advance request	  	Yes	  	No	  	N/A
	 9)
	  	Total amount of Borrower’s cash and cash equivalents	  		  	$                    	  		  		  	
	 10)
	  	Total amount of Borrower’s cash and cash equivalents maintained with Lender(s) as specified in Agreement.	  	If applicable	  	$                    	  	Yes	  	No	  	N/A
				
	 	  	 Financial Covenants
	  	 Requirement
	  	Complies
	 11)
	  	Minimum Liquidity Ratio	  	1.25:1.00	  	Yes	  	No	  	N/A
	 12)
	  	Performance to Plan (Revenues)*	  	75% of projected revenues	  	Yes	  	No	  	N/A
	 13)
	  	Equity Event	  	Minimum $10 million in equity or Sub Debt by November 30, 2010	  	Yes	  	No	  	N/A

  

	*	measured only if Liquidity Ratio is < 1.25:1.00; commencing with the 3-month period ended 8/31/10. 

 Deposit and Securities Accounts (Please list all accounts; attach separate sheet if
additional space needed) 
  

													
	 	  	 Bank
	  	 Account Number
	  	New Account?	  	Acct Control
Agmt
in 
place?
	 1)
	  		  		  	Yes	  	No	  	Yes	  	No
	 2)
	  		  		  	Yes	  	No	  	Yes	  	No
	 3)
	  		  		  	Yes	  	No	  	Yes	  	No
	 4)
	  		  		  	Yes	  	No	  	Yes	  	No
	 5)
	  		  		  	Yes	  	No	  	Yes	  	No
	  
 Other Matters
	  		  	
			
	 Have there been any changes in management?
	  	Yes	  	No
	 Have there been any transfers/sales/disposals/retirement of Collateral or IP?
	  	Yes	  	No
	 Have there been any new or pending claims or causes of action against Borrower?
	  	Yes	  	No

  

			
	Exceptions	  	
		
	 Please explain any exceptions with
	  	  

	 respect to the certification above: (If
	  	  

	 no exceptions exist, state “No
	  	  

	 exceptions.” Attach separate sheet if
	  	  

	 additional space needed.)
	  	

  

									
	  
 SIGNATURE
	 		 	  
 DATE
	  		  	 LENDERS USE ONLY

 
  Received by:
                    Verified by:             

					 
	  
	 		 		  		  	 Date:
                                Date:
                       
	TITLE	 		 		  		  	 
		 		 		  		  	  Compliance Status
         Yes             No
  

[Signature Page to Compliance Certificate] 

 EXHIBIT C-1 

 LOAN PAYMENT/ADVANCE REQUEST FORM 

 

					
	Fax To:	  		  	Date:
                                

LOAN PAYMENT: 
 ZOGENIX, INC. 
  

									
	From Account #	 	  
	 		 	To Account #	 	  

		 	    (Deposit Account #)	 		 		 	(Loan Account #)
	Principal $	 	  
	 		 	and/or Interest $	 	  

													
							
	Authorized Signature:	 	  
	 		 	Phone Number:	 		 	  
	 	
	Print Name/Title:	 	  
	 		 		 		 		 	

 LOAN ADVANCE: 
 Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire. 

 

									
	From Account #	 	  
	 		 	To Account #	 	  

		 	    (Loan Account #)	 		 		 	(Deposit Account #)
					
	Amount of Advance $	 	  
	 		 		 	

 All Borrower’s representations and warranties in the Loan and Security Agreement are true, correct and complete
in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text
thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date: 

 

													
							
	Authorized Signature:	 	  
	 		 	Phone Number:	 		 	  
	 	
	Print Name/Title:	 	  
	 		 		 		 		 	

 OUTGOING WIRE REQUEST:

 Complete only if all or a portion of funds from the loan advance above is to be wired. 

Deadline for same day processing is noon, P.S.T. 
  

									
	Beneficiary Name:	 	  
	  		 	Amount of Wire: $	 	  

	Beneficiary Lender:	 	  
	  		 	Account Number:	 	  

	City and State:	 	  
	  		 		 	

  

									
	Beneficiary Lender Transit (ABA) #:	 	  
	 		 	Beneficiary Lender Code (Swift, Sort, Chip, etc.):	 	  

		 		 		 	        (For International Wire Only)	 	

  

									
	Intermediary Lender:	 	  
	 		 	Transit (ABA) #:	 	  

									
	For Further Credit to:	 	  

									
		
	Special Instruction:	 	  

 By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in accordance with and subject to the terms and conditions set forth in the agreements(s) covering
funds transfer service(s), which agreements(s) were previously received and executed by me (us). 
  

									
	Authorized Signature:	 	                             
                                   	 		 	2nd Signature (if required):	 	  

									
	Print Name/Title:	 	                             
                                         
   	 		 	Print Name/Title:	 	     

									
	Telephone #:	 	                         	 		 	Telephone #:	 	  

 EXHIBIT C-2 

 DISBURSEMENT LETTER 
 The undersigned, being the duly elected and acting Chief Financial Officer of ZOGENIX, INC., a Delaware corporation (“Borrower”), does hereby certify to OXFORD FINANCE
CORPORATION, (“Oxford”), as Administrative Agent (the “Administrative Agent”), (Oxford and Administrative Agent each a “Lender” and collectively, the “Lenders”) in connection
with that certain Second Amended and Restated Loan and Security Agreement dated as of October 8, 2010, by and between Borrower, Administrative Agent and Lenders (the “Loan Agreement”; with other capitalized terms used below
having the meanings ascribed thereto in the Loan Agreement) that: 
  

	 	1.	The representations and warranties made by Borrower in Section 5 of the Loan Agreement and in the other Loan Documents are true, correct and complete in all
material respects on the date hereof; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further
that those representations and warranties expressly referring to a specific date shall be true, correct and complete in all material respects as of such date. 

 

	 	2.	No event or condition has occurred that would constitute an Event of Default under the Loan Agreement or any other Loan Document. 

 

	 	3.	Borrower is in compliance with the covenants and requirements contained in Sections 4, 6 and 7 of the Loan Agreement. 

 

	 	4.	All conditions referred to in Section 3 of the Loan Agreement to the making of the Initial Credit Extension to be made on or about the date hereof have been
satisfied. 

  

	 	5.	No Material Adverse Change has occurred. 

  

	 	6.	The variance fee set forth in Section 2.4(a) shall be disbursed to the Lenders as follows: 

$95,000 to Oxford per the wire instructions below: 
 ABA#: [***] 
 Bank name: Bank of America 

Acct#: [***] 

Acct name: Oxford Finance Corporation 
 Address: 1655 Grant Street 
 Concord, CA 94520 

and, $55,000 to Bank; which amounts may be debited from any accounts maintained with Bank. 

 

	 	7.	Legal Fees and Costs through October 7, 2010 

  

				
	 DLA Piper (US)
	  	$	38,128.00
	 DLA Piper (UK)
	  	$	20,646.51
	 Total
	  	$	58,774.51

[Balance of Page Intentionally Left Blank] 

 

	[***]	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. 

 Dated as of the date first set forth above. 

 

			
	BORROWER:
	
	ZOGENIX, INC.
		
	 By
	 	 /s/ Ann D. Rhoads

			
	 Name:
	 	 Ann D. Rhoads

			
	 Title:
	 	 CFO

  

			
	AS ADMINISTRATIVE AGENT AND AS A LENDER:
	
	OXFORD FINANCE CORPORATION
		
	 By
	 	 /s/ John G. Henderson

			
	 Name:
	 	 John G. Henderson

			
	 Title:
	 	 Vice President & General Counsel

 

			
	AS A LENDER:
	
	SILICON VALLEY BANK
		
	 By
	 	 /s/ Derek R. Brunelle

			
	 Name:
	 	 Derek R. Brunelle

			
	 Title:
	 	 Team Leader

 EXHIBIT D 

Transaction Report 

 

 

  

 Zogenix, Inc. 
 GENERAL INPUT SHEET
  

									
		 		 	Report No:	  	1
	3003 Tasman Drive, Santa Clara, CA 95054	 		 	Date	  	January 0, 1900

  

								
		  	To:	  			  	
	 Company name
	  	All	  	 	Zogenix, Inc.	  	
		  		  	 	 	  	
	 Report number
	  	All	  	 	1	  	
		  		  	 	 	  	
	 Report date
	  	All	  	 	1/0/1900	  	
		  		  	 	 	  	
				
	 Gross A/R Balance (Line 7)
	  	BBC	  	$	—  	  	
		  		  	 	 	  	
	 Beg Loan Balance (Line 19)
	  	BBC	  	$	—  	  	
		  		  	 	 	  	
	 Current day’s Loan advance request
	  	BBC	  	$	—  	  	
		  		  	 	 	  	
				
	 SALES JOURNAL
	  		  			  	
	 Invoices :
	  	Sch. A	  	$	—  	  	Enter as positive
		  		  	 	 	  	
	 Credit Memos:
	  	Sch. A	  	$	—  	  	Enter as positive
		  		  	 	 	  	
	 Misc. Adj. - Sales related
	  	Sch. A	  			  	If addition, enter positive. If reduction, enter negative.
		  		  	 	 	  	
	 Check figure - Net sales journal
	  		  	$	—  	  	
		  		  	 	 	  	
				
	 CASH RECEIPTS JOURNAL
	  		  			  	
	 Credit posted to A/R
	  	Sch. B	  	$	—  	  	Enter as negative
		  		  	 	 	  	
	 Discounts & other non-cash reductions to A/R
	  	Sch. B	  	$	—  	  	Enter as positive
		  		  	 	 	  	
	 Non-A/R collections applied to Loan
	  	Sch. B	  	$	—  	  	Enter as negative
		  		  	 	 	  	
	 Total cash collected applied to Loan
	  	Sch. B	  	$	—  	  	Enter as positive
		  		  	 	 	  	
	 Check figure - Should be -0-
	  		  	$	—  	  	
		  		  	 	 	  	
				
	 OTHER ADJUSTMENTS
	  		  			  	
	 Other Adjustments - All others (Include detail)
	  	BBC	  	$	—  	  	If addition enter as positive
		  		  	 	 	  	
	 Detail separately & remit to Bank
	  		  			  	If reduction, enter as negative
	 Inventory
	  		  			  	
	 Finished Goods Inventory
	  		  	$	—  	  	Enter as positive
		  		  	 	 	  	
	 Ineligible Finished Goods Inventory
	  		  	$	—  	  	Enter as negative
		  		  	 	 	  	
				
	 RESERVES
	  		  			  	
	 Letter of Credit
	  		  	$	—  	  	Enter as positive
		  		  	 	 	  	
	 Cash Management
	  		  	$	—  	  	Enter as positive
		  		  	 	 	  	
	 Other
	  		  	$	—  	  	Enter as positive
		  		  	 	 	  	

  

					
	 svb.com
	  	General Input Sheet	  	

 

 

  

 Zogenix, Inc. 
 TRANSACTION REPORT AND LOAN REQUEST 
  

					
		  	Report No:	    	1
	3003 Tasman Drive, Santa Clara, CA 95054	  	Date	    	January 0, 1900

  

																	
		  	ACCOUNTS RECEIVABLE COLLATERAL	  		  		  			  		
	 1
	  	Beginning A/R Balance Per Previous Report (Line 7)	  		  		  			  	$	—  
		  		  		  		  		  		  			  	 	 
	 2
	  	Add: Sales for Period (Schedule A)	  		  		  			  	$	—  
		  		  		  		  		  		  			  	 	 
	 3
	  	Add: Misc. Customers	  		  		  		  		  			  	$	—  
		  		  		  		  		  		  			  	 	 
	 4
	  	Less: Credit Memos (Schedule A)	  		  		  			  	$	—  
		  		  		  		  		  		  			  	 	 
	 5
	  	Less: Cash Receipts Applied To A/R (Direct-Schedule B)	  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
		  	Less: Cash - Other (DDA, etc.)	  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
		  	Less: Cash - Lockbox	  		  		  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
	 5a
	  	Total Cash (Applied to Accounts Receivable)	  		  		  			  	$	—  
		  		  		  		  		  		  			  	 	 
	 6
	  	Adjustments: Dr. - Increase Cr. (Decrease)	  		  		  			  	$	—  
		  		  		  		  		  		  			  	 	 
	 7
	  	Ending Accounts Receivable Balance (Sum Lines 1-4a,5a,6)	  		  		  			  	$	—  
		  		  		  		  		  		  			  	 	 
	 8
	  	Deduct: Ineligible Accounts Receivable Per Aging Dated:	  	1/0/1900	  		  			  	$	 
		  		  		  		  	 	  		  			  	 	 
	 9
	  	Total Eligible Accounts Receivable	  		  		  		  			  	$	 
		  		  		  		  		  		  			  	 	 
		  	 Other
	  		  		  		  		  			  		
	 10
	  	Finished Goods Inventory	  		  		  		  		  			  	$	—  
		  		  		  		  		  		  			  	 	 
	 11
	  	Ineligible Finished Goods Inventory	  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
	 12
	  	Eligible Finished Goods Inventory	  		  		  			  	$	—  
		  		  		  		  		  		  			  	 	 
						
		  	COMPUTATION OF BORROWING AVAILABILITY	  		  		  			  		
	 13
	  	Line 9 X Advance rate	  		  		  		  		  			  	$	 
		  		  		  	 	  		  		  			  	 	 
	 14
	  	Inventory	  		  		  		  		  			  	$	—  
		  		  	 	  		  		  			  	 	 
		  	Lower of Calculated Availability or Line Limit	  		  		  		  			  	$	 
		  		  		  	 	  		  		  			  	 	 
	 15
	  	Less Reserves:	  	Other	  		  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
		  		  	Letter of Credit	  		  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
		  		  	Cash Management	  		  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
	 15a
	  	 Total of Reserves:
	  		  		  		  		  			  	$	—  
		  		  		  		  		  		  			  	 	 
	 16
	  	 Net Borrowing Availability: Before Loans (Line 10 minus Line 11a)
	  		  			  	$	                    
		  		  		  		  		  		  			  	 	 
							
		  	COMPUTATION OF LOAN	  		  		  		  			  		
	 17
	  	 Beginning Loan Balance (Line 19 of Previous Report)
	  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
	 18
	  	 Add: Monthly Interest Charge
	  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
	 19
	  	 Add: Returned Checks (NSF, Endorsement, etc.)
	  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
	 20
	  	 Add: Other: Principal Payments, Fees & Charges etc.
	  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
	 21
	  	 Less: Cash Applied To Loan - Accounts Receivable (Direct)
	  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
		  	 Less: Cash - Lockbox
	  		  		  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
		  	 Less: Cash - Incoming Wires
	  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
		  	 Less: Cash - Other (DDA, etc.)
	  		  		  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
	 22
	  	 Ending Loan Balance - Before Loan Request (Sum Lines 13-15 all items)
	  			  	$	—  
		  		  		  		  		  		  			  	 	 
	 23
	  	 Unused Borrowing Availability Before Loan Request (Line 12 minus Line 16)
	  	$	                    	  		
		  		  		  		  		  		  	 	 	  		
		  	 New Loan Request: The undersigned hereby requests a loan advance in the amount shown adjacent
hereto.
	  		
		  	 Please deposit/wire loan proceeds to my Checking A/C No.
                                        

	  			  		
	 24
	  	 At Silicon Valley Bank Office:
                                        

	  		  	Advance =	  	$	—  	  		
		  		  		  		  		  		  	 	 	  		
	 25
	  	 New Loan Balance - After Loan Advance
	  		  		  			  	$	—  
		  		  		  		  		  		  			  	 	 
	 26
	  	 Remaining Unused Borrowing Availability - After Loan Request
	  	$	 	  		
		  		  		  		  		  		  	 	 	  		

  

			
	 The above described Collateral is subject to a security interest in favor of SILICON VALLEY BANK pursuant to the terms and
conditions of a Loan & Security Agreement’s, as executed by and between SILICON VALLEY BANK and the undersigned.
  
 $                      has been deposited/wired to your account pursuant to the request set forth
above.

  

							
	 BORROWER
	  	SILICON VALLEY BANK
				
	Signature	  	  
	  	Signature	  	  

	Name	  	  
	  	Name	  	  

	Title	  	  
	  	Title	  	  

	Date	  	  
	  	Date	  	  

  

					
	 svb.com
	  	Transaction Report and Loan Request	  	

 

 

  

 Zogenix, Inc. 
 SCHEDULE A - ACCOUNTS RECEIVABLE ASSIGNED 
  

									
		 		 	Report No:	  	1
	3003 Tasman Drive, Santa Clara, CA 95054	 		 	Date	  	January 0, 1900

  

												
	Report No. 1	  		  		  		  	 	1/0/1900
						
	 Cust. #
	  	 Customer Name
	  	Invoice
Date	  	Shipping
Date	  	Invoice
Number	  	Invoice
Amount
		  		  		  		  		  		
		  		  		  		  		  		
		  	INVOICES - See attached detail	  		  		  		  	$	—  
		  		  		  		  		  		
		  		  		  		  		  		
		  	CREDIT MEMOS - See attached detail	  		  		  		  	$	—  
		  		  		  		  		  		
		  		  		  		  		  		
		  	MISC. CUSTOMERS - See attached detail	  		  		  		  	$	—  
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  		  		  		
		  		  		  	Net Sales
Assignment	  		  	$	—  

  

									
	Company Name                         
       Zogenix, Inc.	  		  	Silicon Valley Bank
	 Signature
	  	  
	  		  	Signature	  	  

	 Name
	  	 0
	  		  	Name	  	  

	 Title
	  	 0
	  		  	Title	  	  

	 Date
	  	 0-Jan-00
	  		  	Date	  	  

 

					
	svb.com	  	Schedule A	  	

 

 

  

 Zogenix, Inc. 
 SCHEDULE B - ACCOUNTS RECEIVABLE COLLECTION REPORT 
  

									
		 		 	Report No:	  	1
	3003 Tasman Drive, Santa Clara, CA 95054	 		 	Date	  	January 0, 1900

  

																								
		  	Report No. 1	  	  
	 Date of Remittance: 1/0/1900
	  		
										
	 Date
Received
	  	Customer No.	  	 Customer Name
	  	Invoice
Number	  	Original
Invoice Amt.	  	Actual Funds	  	Discount/DM	  	Amt. Credited to A/R	  	Non-A/R Collections	  	Coll.
Source
		  		  		  		  		  	 	—  	  	 	—  	  	 	—  	  	 	—  	  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  			  			  			  			  		
		  		  		  		  		  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
	Totals:	  		  		  		  		  	$	—  	  	$	—  	  	$	—  	  	$	—  	  	$	—  
		  		  		  		  		  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
		  		  		  		  	                          
(Trans Rpt Ln 21)                   (Trans Rpt Ln 5-5a)

 

									
	Company Name                         
       Zogenix, Inc.	  		  	Silicon Valley Bank
	Signature	  	  
	  		  	Signature	  	  

	Name	  	 0
	  		  	Name	  	  

	Title	  	 0
	  		  	Title	  	  

	Date	  	 0-Jan-00
	  		  	Date	  	  

 

					
	 svb.com
	  	Schedule B	  	

 

 

  

 Zogenix, Inc. 
 INELIGIBLE CALCULATION 
  

											
		  		  		  		 	Report No:	 	1
	3003 Tasman Drive, Santa Clara, CA 95054	  		 	Date	 	January 0, 1900

  

								
	 As of
	 		  	5/31/2010	  		
				
		 	f	  	Intercompany / Affiliate / Employee	  	$	—  
		 		  		  	 	 
		 	a	  	90 Days Passed Invoice Date	  	$	—  
		 		  		  	 	 
		 	g	  	Credit Balances over 90 Days	  	$	—  
		 		  		  	 	 
		 	b	  	Balance of 50% over 90 Day Accounts (Cross-Age or Current Affected)	  	$	—  
		 		  		  	 	 
		 	c	  	Foreign Account Debtor Accounts	  	$	—  
		 		  		  	 	 
		 	d	  	Foreign Invoiced and/or Collected Accounts	  	$	—  
		 		  		  	 	 
		 	e	  	Contra / Customer Deposit Accounts	  	$	—  
		 		  		  	 	 
		 	u	  	Concentration Limits	  	$	123,253.22
		 		  		  	 	 
		 	h	  	U.S. Government Accounts	  	$	—  
		 		  		  	 	 
		 	i	  	Promotion or Demo Accounts; Guaranteed Sale or Consignment Sale Accounts	  	$	—  
		 		  		  	 	 
		 	j	  	Accounts with Memo or Pre-Billings;	  	$	—  
		 		  		  	 	 
		 	k	  	Contract Accounts; Accounts with Progress / Milestone Billings	  	$	—  
		 		  		  	 	 
		 	l	  	Accounts for Retainage Billings	  	$	—  
		 		  		  	 	 
		 	m	  	Trust / Bonded Accounts	  	$	—  
		 		  		  	 	 
		 	n	  	Bill and Hold Accounts	  	$	—  
		 		  		  	 	 
		 	o	  	Unbilled Accounts	  	$	—  
		 		  		  	 	 
		 	p	  	Non-Trade Accounts (If not already deducted above)	  	$	—  
		 		  		  	 	 
		 	q	  	Accounts with Extended Term Invoices (Net 90+)	  	$	—  
		 		  		  	 	 
		 	r	  	Chargebacks Accounts / Debit Memos	  	$	—  
		 		  		  	 	 
		 		  	Product Returns/Exchanges	  	$	—  
		 		  		  	 	 
		 	s	  	Disputed Accounts; Insolvent Account Debtor Accounts	  	$	—  
		 		  		  	 	 
		 	t	  	Deferred Revenue / Other (Please explain on next page)	  	$	—  
		 		  		  	 	 
				
		 		  	Total Ineligible Accounts: (to BBC)	  	$	123,253.22
		 		  		  	 	 

  

					
	 svb.com
	  	Ineligible Calculation	  	

 EXHIBIT E 

FORMS OF SECURED PROMISSORY NOTE 

 SECOND AMENDED AND RESTATED SECURED PROMISSORY NOTE 

 

			
	 $18,000,000
	  	Dated: October 8, 2010

FOR VALUE RECEIVED, the undersigned, ZOGENIX, INC., a Delaware corporation (“Borrower”), HEREBY PROMISES TO PAY to the order of
OXFORD FINANCE CORPORATION (“Lender”) the principal amount of Eighteen Million Dollars ($18,000,000) or such lesser amount as shall equal the outstanding principal balance of the Growth Capital Advance made to Borrower by Lender pursuant
to the Loan Agreement (defined below), and to pay all other amounts due with respect to the Growth Capital Advance on the dates and in the amounts set forth in the Loan Agreement. (Capitalized terms, unless defined in this Note, shall have the
meaning given such capitalized term in the Loan Agreement.) 
 Interest on the principal amount of this Note from the date of
this Note shall accrue at the per annum rate set forth in the Loan Agreement, based on a 360-day year of twelve 30-day months or, if applicable, the Default Rate. Borrower shall make payments of accrued interest only on the outstanding principal
amount of the Growth Capital Advance on the first day of each month, commencing August 1, 2010, through and including the date immediately prior to the Growth Capital Amortization Date. Commencing on the Growth Capital Amortization Date, and
continuing on the first day each of each month thereafter, Borrower shall make to Lender thirty (30) equal payments of principal and accrued interest on the then outstanding principal amount in the amount of Six Hundred Ninety Seven Thousand
Nine Hundred Seventy Five Dollars and 63/100 ($697,975.63). Any and all remaining principal and interest shall be due and payable on the Maturity Date. 
 Principal, interest and all other amounts due with respect to the Growth Capital Advance, is payable in lawful money of the United States of America to Lender as set forth in the Loan Agreement. The
principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note.

 This Note is one of the Notes referred to in, and is entitled to the benefits of, the Second Amended and Restated Loan and
Security Agreement, dated as of October 8, 2010, to which Borrower and Lender are parties (the “Loan Agreement”). The Loan Agreement, among other things, (a) provides for the making of secured Growth Capital Advance to Borrower,
and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events. 
 This
Note may not be prepaid except as provided in the Loan Agreement. This Note and the obligation of Borrower to repay the unpaid principal amount of the Growth Capital Advance, interest on the Growth Capital Advance and all other amounts due Lenders
under the Loan Agreement is secured under the Loan Agreement. 
 Presentment for payment, demand, notice of protest and all
other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived. 
 Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lenders in the enforcement or attempt to enforce any of
Borrower’s obligations hereunder not performed when due. This Note shall be governed by, and construed and interpreted in accordance with, the laws of the State of California. 

Notwithstanding the foregoing, this Second Amended and Restated Secured Promissory Note completely amends and restates that certain
Secured Promissory Note dated as of July 1, 2010, which Original Note shall be deemed void and of no further force or effect upon the execution and delivery of this Note to (and receipt hereof by) Lender. 

[Remainder of page left intentionally blank; signature page follows] 

 IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed by one of its officers
thereunto duly authorized on the date hereof. 
  

			
	 ZOGENIX, INC.

		
	 By:
	 	 /s/ Ann D. Rhoads

			
		
	 Name:
	 	 Ann D. Rhoads

			
		
	 Title:
	 	 Chief Financial Officer

Second Amended and Restated Secured Promissory Note (Growth Capital Loan) 

Zogenix, Inc. – Oxford Finance Corporation 

 LOAN INTEREST RATE AND PAYMENTS OF PRINCIPAL 

 

									
	 Date
	 	 Principal

Amount
	 	 Interest Rate
	  	Scheduled
Payment Amount	  	Notation By

 AMENDED AND RESTATED SECURED PROMISSORY NOTE 

 

			
	$7,000,000	  	Dated: October 8, 2010

FOR VALUE RECEIVED, the undersigned, ZOGENIX, INC., a Delaware corporation (“Borrower”), HEREBY PROMISES TO PAY to the order of
SILICON VALLEY BANK (“Lender”) the principal amount of Seven Million Dollars ($7,000,000) or such lesser amount as shall equal the outstanding principal balance of the Growth Capital Advance made to Borrower by Lender pursuant to the Loan
Agreement (defined below), and to pay all other amounts due with respect to the Growth Capital Advance on the dates and in the amounts set forth in the Loan Agreement. (Capitalized terms, unless defined in this Note, shall have the meaning given
such capitalized term in the Loan Agreement.) 
 Interest on the principal amount of this Note from the date of this Note shall
accrue at the per annum rate set forth in the Loan Agreement, based on a 360-day year of twelve 30-day months or, if applicable, the Default Rate. Borrower shall make payments of accrued interest only on the outstanding principal amount of the
Growth Capital Advance on the first day of each month, commencing August 1, 2010, through and including the date immediately prior to the Growth Capital Amortization Date. Commencing on the Growth Capital Amortization Date, and continuing on
the first day each of each month thereafter, Borrower shall make to Lender thirty (30) equal payments of principal and accrued interest on the then outstanding principal amount in the amount of Two Hundred Seventy One Thousand Four Hundred
Thirty Four Dollars and 97/100 ($271,434.97). Any and all remaining principal and interest shall be due and payable on the Maturity Date. 
 Principal, interest and all other amounts due with respect to the Growth Capital Advance, are payable in lawful money of the United States of America to Lender as set forth in the Loan Agreement. The
principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note.

 This Note is one of the Notes referred to in, and is entitled to the benefits of, the Second Amended and Restated Loan and
Security Agreement, dated as of October 8, 2010, to which Borrower and Lender are parties (the “Loan Agreement”). The Loan Agreement, among other things, (a) provides for the making of secured Growth Capital Advance to Borrower,
and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events. 
 This
Note may not be prepaid except as provided in the Loan Agreement. This Note and the obligation of Borrower to repay the unpaid principal amount of the Growth Capital Advance, interest on the Growth Capital Advance and all other amounts due Lenders
under the Loan Agreement is secured under the Loan Agreement. 
 Presentment for payment, demand, notice of protest and all
other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived. 
 Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lenders in the enforcement or attempt to enforce any of
Borrower’s obligations hereunder not performed when due. This Note shall be governed by, and construed and interpreted in accordance with, the laws of the State of California. 

Notwithstanding the foregoing, this Amended and Restated Secured Promissory Note completely amends and restates that certain Secured
Promissory Note dated as of July 1, 2010, which Original Note shall be deemed void and of no further force or effect upon the execution and delivery of this Note to (and receipt hereof by) Lender. 

[Remainder of page left intentionally blank; signature page follows] 

 IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed by one of its officers
thereunto duly authorized on the date hereof. 
  

			
	 ZOGENIX, INC.

		
	By:	 	 /s/ Ann D. Rhoads 

			
		
	Name:	 	 Ann D. Rhoads

			
		
	Title:	 	 Chief Financial Officer

Amended and Restated Secured Promissory Note (Growth Capital Loan) 
 Zogenix, Inc. – Silicon Valley Bank 
  

 LOAN INTEREST RATE AND PAYMENTS OF PRINCIPAL 

 

									
	 Date
	 	 Principal

Amount
	 	 Interest Rate
	  	Scheduled
Payment Amount	  	Notation By

 AMENDED AND RESTATED SECURED PROMISSORY NOTE 

 

					
	$2,000,000	  	Dated: October 8, 2010

 FOR VALUE RECEIVED, the undersigned, ZOGENIX, INC., a Delaware corporation (“Borrower”), HEREBY PROMISES TO PAY to the order of OXFORD FINANCE CORPORATION (“Lender”) the principal
amount of Two Million Dollars ($2,000,000) or such lesser amount as shall equal the outstanding principal balance of the Revolving Advances made to Borrower by Lender pursuant to the Loan Agreement (defined below), and to pay all other amounts due
with respect to the Revolving Advances on the dates and in the amounts set forth in the Loan Agreement. (Capitalized terms, unless defined in this Note, shall have the meaning given such capitalized term in the Loan Agreement.) 

Principal, interest and all other amounts due with respect to the Revolving Advances, is payable in lawful money of the United States of
America to Lender as set forth in the Loan Agreement. The principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer hereof, endorsed on
the grid attached hereto which is part of this Note. 
 This Note is one of the Notes referred to in, and is entitled to the
benefits of, the Second Amended and Restated Loan and Security Agreement, dated as of October 8, 2010, to which Borrower and Lender are parties (the “Loan Agreement”). The Loan Agreement, among other things, (a) provides for the
making of secured Revolving Advances to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events. 
 This Note may not be prepaid except as provided in the Loan Agreement. This Note and the obligation of Borrower to repay the unpaid principal amount of the Revolving Advances, interest on the Revolving
Advances and all other amounts due Lenders under the Loan Agreement is secured under the Loan Agreement. 
 Presentment for
payment, demand, notice of protest and all other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived. 

Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred
by Lenders in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due. This Note shall be governed by, and construed and interpreted in accordance with, the laws of the State of California.

 Notwithstanding the foregoing, this Amended and Restated Secured Promissory Note completely amends and restates that certain
Secured Promissory Note dated as of July 1, 2010, which Original Note shall be deemed void and of no further force or effect upon the execution and delivery of this Note to (and receipt hereof by) Lender. 

[Remainder of page left intentionally blank; signature page follows] 

 IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed by one of its officers
thereunto duly authorized on the date hereof. 
  

			
	 ZOGENIX, INC.

		
	 By:
	 	 /s/ Ann D. Rhoads

			
		
	 Name:
	 	 Ann D. Rhoads

			
		
	 Title:
	 	 Chief Financial Officer

Amended and Restated Secured Promissory Note (Revolving Line) 
 Zogenix, Inc. – Oxford Finance Corporation 

 LOAN INTEREST RATE AND PAYMENTS OF PRINCIPAL 

 

									
	 Date
	 	 Principal

Amount
	 	 Interest Rate
	  	Scheduled
Payment Amount	  	Notation By

 AMENDED AND RESTATED SECURED PROMISSORY NOTE 

 

			
	$8,000,000	  	Dated: October 8, 2010

FOR VALUE RECEIVED, the undersigned, ZOGENIX, INC., a Delaware corporation (“Borrower”), HEREBY PROMISES TO PAY to the order of
SILICON VALLEY BANK (“Lender”) the principal amount of Eight Million Dollars ($8,000,000) or such lesser amount as shall equal the outstanding principal balance of the Revolving Advances made to Borrower by Lender pursuant to the Loan
Agreement (defined below), and to pay all other amounts due with respect to the Revolving Advances on the dates and in the amounts set forth in the Loan Agreement. (Capitalized terms, unless defined in this Note, shall have the meaning given such
capitalized term in the Loan Agreement.) 
 Principal, interest and all other amounts due with respect to the Revolving
Advances, are payable in lawful money of the United States of America to Lender as set forth in the Loan Agreement. The principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be
recorded by Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note. 
 This
Note is one of the Notes referred to in, and is entitled to the benefits of, the Second Amended and Restated Loan and Security Agreement, dated as of October 8, 2010, to which Borrower and Lender are parties (the “Loan Agreement”).
The Loan Agreement, among other things, (a) provides for the making of secured Revolving Advances to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events. 

This Note may not be prepaid except as provided in the Loan Agreement. This Note and the obligation of Borrower to repay the unpaid
principal amount of the Revolving Advances, interest on the Revolving Advances and all other amounts due Lenders under the Loan Agreement is secured under the Loan Agreement. 
 Presentment for payment, demand, notice of protest and all other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived.

 Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and
costs, incurred by Lenders in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due. This Note shall be governed by, and construed and interpreted in accordance with, the laws of the State of
California. 
 Notwithstanding the foregoing, this Amended and Restated Secured Promissory Note completely amends and restates
that certain Secured Promissory Note dated as of July 1, 2010, which Original Note shall be deemed void and of no further force or effect upon the execution and delivery of this Note to (and receipt hereof by) Lender. 

[Remainder of page left intentionally blank; signature page follows] 

 IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed by one of its officers
thereunto duly authorized on the date hereof. 
  

			
	 ZOGENIX, INC.

		
	 By:
	 	 /s/ Ann D. Rhoads

			
		
	 Name:
	 	 Ann D. Rhoads

			
		
	 Title:
	 	 Chief Financial Officer

Amended and Restated Secured Promissory Note (Revolving Line) 
 Zogenix, Inc. – Silicon Valley Bank 

 LOAN INTEREST RATE AND PAYMENTS OF PRINCIPAL 

 

									
	 Date
	 	 Principal

Amount
	 	 Interest Rate
	  	Scheduled
Payment Amount	  	Notation By

 EXHIBIT F 
 BORROWING RESOLUTIONS 

 CORPORATE BORROWING CERTIFICATE 

							
	BORROWER:	  	ZOGENIX, INC.	  	DATE:	 	October 8, 2010
	LENDERS:	  	Silicon Valley Bank (“Bank”) and Oxford Finance Corporation (collectively, “Lenders”)	 	

 I hereby certify as follows, as of the date set forth above: 

1. I am the Secretary, Assistant Secretary or other officer of Borrower. My title is as set forth below. 

2. Borrower’s exact legal name is set forth above. Borrower is a corporation existing under the laws of the State of Delaware. 

3. Attached hereto are true, correct and complete copies of Borrower’s Certificate of Incorporation (including amendments), as filed with the
Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 1 above. Such Certificate of Incorporation have not been amended, annulled, rescinded, revoked or supplemented, and remain in full force and effect as of the
date hereof. 
 4. The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such
directors (or pursuant to a unanimous written consent or other authorized corporate action). Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and
Lenders may rely on them until each Lender receives written notice of revocation from Borrower. 

RESOLVED, that any one of the following officers or employees of Borrower, whose names, titles
and signatures are below, may act on behalf of Borrower: 
  

											
	 Name
	 	  	  	 Title
	  	  	 	 Signature
	  	 Authorized to
Add or Remove
Signatories

						
	 Roger L. Hawley
	 		  	 Chief Executive Officer
	  		 	/s/ Roger L. Hawley	  	 ̈
						
	 Ann Rhoads
	 		  	 Chief Financial Officer
	  		 	/s/ Ann Rhoads	  	 ̈
						
	 	 		  	  
	  		 	 	  	 ̈
						
	 	 		  	  
	  		 	 	  	 ̈

 RESOLVED FURTHER, that any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals
to and from the above list of persons authorized to act on behalf of Borrower. 
 RESOLVED
FURTHER, that such individuals may, on behalf of Borrower: 
 Borrow Money. Borrow money from Lenders.

 Execute Loan Documents. Execute any loan documents any Lender requires. 

Grant Security. Grant Lenders a security interest in any of Borrower’s assets. 

Negotiate Items. Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has
an interest and receive cash or otherwise use the proceeds. 
 Letters of Credit. Apply for letters of credit from Bank.

 Foreign Exchange Contracts. Execute spot or forward foreign exchange contracts. 

Issue Warrants. Issue warrants for Borrower’s capital stock. 

Further Acts. Designate other individuals to request advances, pay fees and costs and execute other documents or agreements
(including documents or agreement that waive Borrowers right to a jury trial) they believe to be necessary to effectuate such resolutions. 

 RESOLVED FURTHER, that all acts authorized by the above
resolutions and any prior acts relating thereto are ratified. 
 5. The persons listed above are Borrower’s officers or employees with
their titles and signatures shown next to their names. 
  

			
	By:	 	 /s/ Ann D.
Rhoads

			
	 Name:
	 	 Ann D.
Rhoads

			
	Title:	 	 Chief Financial Officer

*** If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions set
forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 
 I, the Chief Executive Officer of Borrower, hereby certify as to paragraphs 1 through 5 above, as of the date set forth above. 
             [print title] 
  

			
	By:	 	 /s/ Roger L.
Hawley

			
	Name:	 	 Roger L.
Hawley

			
	Title:	 	 Chief Executive Officer

 EXHIBIT G 
 (Master Loan and Security Agreement by and between General Electric Capital Corporation 
 and Borrower, dated as of March 5, 2007) 

 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 
 MASTER
LOAN AND SECURITY AGREEMENT 
 THIS MASTER LOAN AND SECURITY AGREEMENT, dated as of March 5, 2007, (this
“Agreement”), between General Electric Capital Corporation (together with its successors and assigns, if any, “Secured Party”) and ZOGENIX, INC. (“Debtor”). Secured Party has an office at 83 Wooster
Heights Road, Danbury, CT 06810. Debtor is a corporation organized and existing under the laws of the State of Delaware (the “State”). Debtor’s mailing address and chief place of business is 12760 High Bluff Drive, Suite 130,
San Diego, CA 92130. 
  

	1.	LOANS, TERMS OF PAYMENT AND CONDITIONS PRECEDENT. 

  

	 	(a)	The Loan and Terms of Payment 

 (i) The Loan. Subject to the terms and conditions of this Agreement, Secured Party hereby agrees to make one or more term loans (each, a “Credit Extension”) to Debtor in the
aggregate principal amount not to exceed TEN MILLION DOLLARS and NO/100 ($10,000,000.00) (the “Term Loan Commitment”), which Term Loan Commitment shall terminate on December 21, 2007 (the “Term Loan Commitment
Termination Date”), after which the Secured Party shall have no further obligation to make any additional Credit Extensions; provided, however, (x) on or after a date that is 30 days prior to the Term Loan Commitment
Termination Date, Debtor may request that the Term Loan Commitment Termination Date be extended for an additional six (6) month period, in which case, if such extension is granted, the Term Loan Commitment shall terminate on June 21, 2008
(the “Extended Commitment Termination Date”), and (y) on or after a date that is 30 days prior to the Extended Commitment Termination Date, Debtor may request that the Extended Commitment Termination Date be extended for an
additional six (6) month period, in which case, if granted, the Term Loan Commitment shall terminate on December 21, 2008. In the case of clauses (x) and (y) above, such extensions shall be granted by the Secured Party in its
reasonable discretion. Each Credit Extension hereunder shall be evidenced by a Note (as defined below), which Notes are deemed incorporated into and made a part of this Agreement by this reference. 

(ii) Borrowing Mechanics. When Debtor desires a Credit Extension, Debtor will notify Secured Party by facsimile or electronic mail
(or by telephone, provided that such telephonic notice shall be promptly confirmed in writing). Each Credit Extension shall be in an amount greater than or equal to $250,000 or such lesser amount as may be agreed to by Secured Party in its sole
discretion. Secured Party shall make Credit Extensions for costs associated with the purchase of the equipment listed on Schedule 1 attached hereto and incorporated herein or other equipment identified by Debtor from time to time by wire
transfer to such account as specified by Debtor at such time as Debtor has complied to the satisfaction of the Secured Party with the conditions precedent set forth in Section 1(b) below. 

(iii) Repayment. Debtor unconditionally promises to pay Secured Party the aggregate unpaid principal amount of each Credit
Extension, together with interest on the unpaid principal amount of such Credit Extensions from the date of such Credit Extension until repaid at a rate per annum (on the basis of the actual number of days elapsed over a year of 360 days) at a fixed
rate equal to the Treasury Rate (as defined below) and as set forth in the respective promissory note, the form of which is attached hereto as Exhibit A (as each may be amended, modified, increased, restated or replaced from time to time,
collectively, the “Notes” and each a “Note”); provided, however, after the occurrence and during the continuance of an Event of Default (as defined below), at the option of the Secured Party, such rate
shall be equal to the default rate set forth in each Note. For each Credit Extension, Debtor shall make monthly payments of principal and accrued interest in the amounts provided by Secured Party and set forth in the respective Note. Once a Credit
Extension is prepaid, it cannot be reborrowed. Each Note shall have a term of forty-eight (48) months. 

 “Treasury Rate” means a rate per annum equal to the
Treasury Index plus five and
 43/100 percent (5.43%). 

“Treasury Index” means the greater of (i) four and  48/100 percent (4.48%) and (ii) the Treasury Constant
Maturities Rate, as published by the United States Federal Reserve in Statistical Release H.15(519) entitled “Selected Interest Rates” for a term equal to the term of the Note evidencing such Credit Extension (and if
there is no Treasury Constant Maturities Rate published for such term, the rate resulting from the interpolation between the Treasury Constant Maturities Rate published for the next shorter term and the next longer term), two (2) days
prior to the funding of such Credit Extension, including the initial Credit Extension. If any such date is not a business day, then the quote shall be obtained on the business day immediately preceding such date. If the
United States Treasury (a) quotes more than one such rate, then the highest of such quotes shall apply, or (b) ceases to quote such rate, then the Treasury Index shall be determined from such substitute financial reporting service or
source as the Secured Party in its reasonable discretion shall determine. 
 (iv) Prepayment. Debtor may
voluntarily prepay, in full, the outstanding amount of any Credit Extension subject to the prepayment premium set forth in the respective Note. 
  

	 	(b)	Conditions of Credit Extensions 

 (i) Conditions Precedent to Initial Credit Extension. On or before the initial Credit Extension Debtor shall deliver, or ensure delivery of, the following to Secured Party: 

(A) a counterpart of this Agreement; 
 (B) a Note evidencing the initial Credit Extension; 
 (C) the Security Transfer
Agreement, dated as of even date herewith, between Debtor and Secured Party (as it may be amended, restated, supplemented or otherwise modified from time to time, the “German Security Agreement”); 

(D) the Chattel Mortgage, dated as of even date herewith, between Debtor and Secured Party (as it may be amended, restated, supplemented
or otherwise modified from time to time, the “UK Security Agreement”); 
 (E) the Warrant to Purchase 200,000
Shares of Series A Preferred Stock, dated March 5, 2007, made by Debtor in favor of Secured Party (as it may be amended, restated, supplemented or otherwise modified from time to time, the “Warrant”); 

(F) a certificate of the Secretary of Debtor, the form of which is attached hereto as Exhibit B (the “Secretary’s
Certificate”), providing verification of incumbency and attaching Debtor’s board resolutions approving the transactions contemplated by this Agreement and the other Debt Documents and Debtor’s governing documents; 

 

 2 

 (G) collateral assignments, as Secured Party shall request in its reasonable discretion;

 (H) certificates of insurance evidencing the insurance coverage required pursuant to Section 5 below;

 (I) current UCC lien, judgment, bankruptcy and tax lien search results demonstrating that there are no other security
interests or liens on the Collateral, other than Permitted Liens (as defined below), as Secured Party shall request in its reasonable discretion; 
 (J) a certificate of good standing of Debtor as of a date acceptable to Secured Party from the jurisdiction of Debtor’s organization; 

(K) the Subordination and Waiver Agreement among MGlas AG, Debtor and Secured Party, the Deed of Subordination and Waiver among Patheon
UK Limited, the Debtor and the Secured Party, the Deed of Subordination and Waiver among Bespak Europe Limited, the Debtor and the Secured Party, and the Deed of Subordination and Waiver among Dawson Shanahan Limited, the Debtor and the Secured
Party, each dated on or about the date hereof (as each may be amended, restated, supplemented or otherwise modified from time to time, collectively, the “Initial Landlord Consents”); 

(L) legal opinions of counsel for Debtor located in the United States, England and Germany, each in form and substance reasonably
satisfactory to Secured Party; 
 (M) one or more schedules of equipment and personal property related thereto listing in
detail sufficient to specifically identify the Collateral and its location (as each may be amended, restated, supplemented or otherwise modified from time to time the “Collateral Schedules”), which Collateral Schedules shall be
annexed to and made a part hereof, the UK Security Agreement and/or the German Security Agreement and the respective Initial Landlord Consents, as applicable; 
 (N) UCC financing statements (and to the extent any such Collateral is to be located in a country other than the United States, such other documents, forms and schedules necessary to perfect Secured
Party’s interest in such other jurisdiction in the Collateral) in the correct form for filing in the necessary filing office; and 
 (O) all other documents, agreements, opinions, filings and instruments as Secured Party may reasonably deem necessary or appropriate to effectuate the intent and purpose of this Agreement (together with
this Agreement, Note, the German Security Agreement, the UK Security Agreement, the Warrant, the Initial Landlord Consents, Landlord Consents, the Collateral Schedules and the Secretary’s Certificate, as each may be amended, restated,
supplemented or otherwise modified from time to time, collectively, the “Debt Documents”). 
 (ii)
Conditions Precedent to Subsequent Credit Extensions. Upon each subsequent Credit Extension, Debtor shall deliver, or ensure delivery of, the following to Secured Party: 

(A) a certificate by an officer of Debtor confirming that (1) all representations and warranties in Section 3 below
shall be true as of the date of such Credit Extension, (2) no Event of Default or any other event, which with the giving of notice or the passage of time, or both, would constitute an Event of Default (such event, a “Default”)
has occurred and is continuing or will result from the making of any Credit Extension and (3) there shall not have occurred one or more events, acts, conditions or occurrences of whatever nature, whether singly or in conjunction with any other
event or events, act or acts, condition or conditions, occurrence or occurrences, whether or not related, which gives rise to a material adverse change in, or a material adverse effect upon, any of (I) the condition (financial or otherwise),
operations, business, prospects or properties of Debtor, (II) the rights and remedies of Secured Party under any Debt Document, or the ability of Debtor to perform any of its obligations under any Debt Document, (III) the legality, validity or
enforceability of any Debt Document, or (IV) the existence, perfection or priority of any security interest granted in any Debt Document or the value of any Collateral (a “Material Adverse Change”); 

 

 3 

 (B) amendment, restatement or other modification to, or redelivery or supplemental delivery
of, the items set forth in the following sections to the extent circumstances have changed since the initial Credit Extension: Sections 1(b)(i)(C), (D), (E), (F), (G), (H), (I), (J), (M), (N) and (O); 

(C) a Note evidencing such Credit Extension; 
 (D) a landlord consent and waiver or similar document in favor of Secured Party executed by Debtor, the Secured Party and landlord or contract manufacturer, as the case may be, for each third party
location where Collateral is located, that is not covered by the Initial Landlord Consents, or amendments, restatements, supplements or other modifications to any Initial Landlord Consent to identify such new equipment if not already identified
therein, as the case may be, each satisfactory to Secured Party in its sole discretion (as each may be amended, restated, supplemented or otherwise modified from time to time, collectively, the “Landlord Consents”); 

(E) if Collateral is located in a jurisdiction other than England, Germany or the United States, a security agreement or similar
document pursuant to which the Debtor grants in favor of the Secured Party a security interest in and to, and a lien upon, the Collateral located in such jurisdiction, which document shall be governed and construed by the laws of such jurisdiction;

 (F) evidence satisfactory to Secured Party in its sole discretion of payment in full of the purchase price of new equipment
that is to become Collateral and the related soft expenses directly related to the purchase of such equipment including leasehold improvements, software, taxes and freight costs (collectively, “Soft Costs”) and evidence that at
least 80% of such purchase price is attributable to the actual hard cost of such equipment and the remaining 20% or less is attributable to the related Soft Costs; and 
 (G) a responsible officer of the Debtor certifies in writing to the Secured Party that such new equipment is to be used in the ordinary course of the Debtor’s business and has been delivered and
installed and is fully operable, all to the satisfaction of the Debtor. 
  

	 	(c)	Fees and Deposits 

 As an
inducement to Secured Party to make the Credit Extensions hereunder, Debtor has paid to Secured Party a good faith deposit equal to one percent (1%) of the amount of the Term Loan Commitment (the “Commitment Fee”). Debtor and
Secured Party agree that the one-half of the Commitment Fee (an amount equal to $50,000.00) has been credited to the account of the Secured Party as a fully earned, non-refundable up-front fee and that the remaining portion of the Commitment Fee
shall be applied to the initial payment of each such Credit Extension (including the initial advance) as follows: (i) an amount equal to (A) the amount of such Credit Extension (B) divided by the Term Loan Commitment and
(C) multiplied by $50,000, shall be applied to Debtor’s first scheduled payment of such Credit Extension and (ii) any amount of the Commitment Fee not applied on or before the Term Loan Commitment Termination Date shall be retained by
Secured Party as a non-utilization fee. 
  

 4 

	2.	CREATION OF SECURITY INTEREST. 

 Debtor grants to Secured Party, its successors and assigns, a security interest in and against all of the right, title and interest of Debtor in and to property listed on any Collateral Schedule now or in
the future signed by Debtor and in and against all additions, attachments, accessories and accessions to such property, all substitutions, replacements or exchanges therefor, and all insurance and/or other proceeds thereof (all such property is
individually and collectively called the “Collateral”). This security interest is given to secure the prompt payment and performance, whether at the stated maturity, by acceleration or otherwise, of all and any debts, monies,
obligations and liabilities, of any kind whatsoever, now or in the future due or owing by Debtor to Secured Party in whatever currency denominated, whether actually or contingently, alone or jointly with any other person, as principal or surety, and
whether on any current or other account or otherwise including, without limitation, any such debts, monies, obligations and liabilities of Debtor to Secured Party under or in respect of the Debt Documents any other document executed in connection
with or pursuant to the foregoing, and together with all interest, commissions, fees and legal and other costs charges and expenses which Secured Party may charge Debtor or incur in relation to Debtor or this Agreement or the Collateral on a full
indemnity basis, and any renewals, extensions and modifications of such debts, monies, obligations and liabilities (collectively, the “Obligations”). 
  

	3.	REPRESENTATIONS, WARRANTIES AND COVENANTS OF DEBTOR. 

 Debtor represents and warrants, as of the date of this Agreement and as of the date of each Collateral Schedule, and covenants for the duration of this Agreement that: 

(a) Debtor’s exact legal name is as set forth in the preamble of this Agreement and Debtor is, and will remain, duly organized,
existing and in good standing under the laws of the State set forth in the preamble of this Agreement, has its chief executive offices at the location specified in the preamble, and is, and will remain, duly qualified and licensed in every
jurisdiction wherever necessary to carry on its business and operations; 
 (b) Debtor has adequate power and capacity to enter
into, and to perform its obligations under each and every Debt Document; 
 (c) This Agreement and the other Debt Documents have
been duly authorized, executed and delivered by Debtor and constitute legal, valid and binding agreements enforceable in accordance with their terms, except to the extent that the enforcement of remedies may be limited under applicable bankruptcy
and insolvency laws; 
  

 5 

 (d) No approval, consent or withholding of objections is required from any governmental
authority or instrumentality with respect to the entry into, or performance by Debtor of, any of the Debt Documents, except any already obtained; 
 (e) The entry into, and performance by, Debtor of the Debt Documents will not (i) violate any of the organizational documents of Debtor or any judgment, order, law or regulation applicable to Debtor,
or (ii) result in any breach of or constitute a default under any contract to which Debtor is a party, or result in the creation of any lien, claim or encumbrance on any of Debtor’s property (except for liens in favor of Secured Party)
pursuant to any indenture, mortgage, deed of trust, bank loan, credit agreement, or other agreement or instrument to which Debtor is a party; 
 (f) There are no suits or proceedings pending in court or before any commission, board or other administrative agency against or affecting Debtor which could reasonably be expected to, in the aggregate,
have a material adverse effect on Debtor, its business or operations, or its ability to perform its obligations under the Debt Documents, nor does Debtor have reason to believe that any such suits or proceedings are threatened; 

(g) All financial statements delivered to Secured Party in connection with the Obligations have been prepared in accordance with
generally accepted accounting principles, and since the date of the most recent financial statement, there has been no material adverse change in Debtor’s financial condition; 

(h) The Collateral is not, and will not be, used by Debtor for personal, family or household purposes; 

(i) The Collateral is, and will remain, in good condition and repair, ordinary wear and tear and damage by casualty excepted, and Debtor
will not be negligent in its care and use; 
 (j) Debtor is, and will remain, the sole and lawful owner of the Collateral, and
has the sole right and lawful authority to grant the security interest described in this Agreement, the German Security Agreement and the UK Security Agreement; 
 (k) The Collateral is, and will remain, free and clear of all mortgages, charges, liens, claims and encumbrances of any kind whatsoever, except for (i) liens in favor of Secured Party,
(ii) liens for taxes not yet due or for taxes being contested in good faith and which do not involve, in the judgment of Secured Party, any risk of the sale, forfeiture or loss of any of the Collateral and with respect to which adequate
reserves have been set aside for the payment thereof in accordance with GAAP, and (iii) inchoate materialmen’s, mechanic’s, repairmen’s and similar liens arising by operation of law in the normal course of business for amounts
which are not delinquent (all of such liens are called “Permitted Liens”); and 
 (l) Debtor is and will remain
in full compliance with all laws and regulations applicable to it including, without limitation, (i) ensuring that no person who owns a controlling interest in or otherwise controls Debtor is or shall be (Y) listed on the Specially
Designated Nationals and Blocked Person List maintained by the Office of Foreign Assets Control (“OFAC”), Department of the Treasury, and/or any other similar lists maintained by OFAC pursuant to any authorizing statute, Executive
Order or regulation or (Z) a person designated under Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23, 2001), any related enabling legislation or any other similar Executive Orders, and
(ii) compliance with all applicable Bank Secrecy Act (“BSA”) laws, regulations and government guidance on BSA compliance and on the prevention and detection of money laundering violations. 

 

 6 

	4.	COLLATERAL. 

 (a) Debtor
shall not move the Collateral from its current location, except that Secured Party shall have the right to possess (i) any chattel paper or instrument that constitutes a part of the Collateral, and (ii) any other Collateral in which
Secured Party’s security interest may be perfected only by possession. Secured Party may inspect any of the Collateral during normal business hours after giving Debtor reasonable prior notice and otherwise complying with the provisions of any
estoppel, consent or similar agreement between Secured Party and any third parties pertaining to the applicable Collateral to be inspected. If Secured Party asks, Debtor will promptly notify Secured Party in writing of the location of any
Collateral. 
 (b) Debtor shall, or shall cause other parties to, (i) use the Collateral only in its trade or business,
(ii) maintain all of the Collateral in good operating order and repair, normal wear and tear excepted, (iii) use and maintain the Collateral only in compliance with manufacturers recommendations and all applicable laws, and (iv) keep
all of the Collateral free and clear of all liens, claims and encumbrances (except for Permitted Liens). 
 (c) Secured Party
does not authorize and Debtor agrees it shall not (i) part with possession of any of the Collateral (except to Secured Party or for maintenance and repair), (ii) remove any of the Collateral from the country in which it is located, or
(iii) sell, rent, lease, mortgage, license, grant a security interest in or otherwise transfer or encumber (except for Permitted Liens) any of the Collateral. 
 (d) Debtor shall pay promptly, or cause to be promptly paid, when due all taxes, license fees, assessments and public and private charges levied or assessed on any of the Collateral, on its use, or on
this Agreement or any of the other Debt Documents. At its option, Secured Party may discharge taxes, liens, security interests or other encumbrances at any time levied or placed on the Collateral and may pay for the maintenance, insurance and
preservation of the Collateral and effect compliance with the terms of this Agreement or any of the other Debt Documents. Debtor agrees to reimburse Secured Party, on demand, all costs and expenses incurred by Secured Party in connection with such
payment or performance and agrees that such reimbursement obligation shall be part of the Obligations. 
 (e) Debtor shall, at
all times, keep accurate and complete records of the Collateral, and Secured Party shall have the right to inspect and make copies of all of Debtor’s books and records relating to the Collateral during normal business hours, after giving Debtor
reasonable prior notice. 
 (f) Debtor agrees and acknowledges that any third person who may at any time possess all or any
portion of the Collateral shall be deemed to hold, and shall hold, the Collateral as the agent of, and as pledge holder for, Secured Party. Secured Party may at any time give notice to any third person described in the preceding sentence that such
third person is holding the Collateral as the agent of, and as pledge holder for, Secured Party. 
  

 7 

	5.	INSURANCE. 

 (a) Debtor
shall at all times bear the entire risk of any loss, theft, damage to, or destruction of, any of the Collateral from any cause whatsoever. 
 (b) Debtor agrees to keep the Collateral insured against loss or damage by fire and extended coverage perils, theft, burglary, and for any or all Collateral which are vehicles, for risk of loss by
collision, and if requested by Secured Party, against such other risks as Secured Party may reasonably require. The insurance coverage shall be in an amount no less than the full replacement value of the Collateral, and deductible amounts, insurers
and policies shall be acceptable to Secured Party. Debtor shall deliver to Secured Party policies or certificates of insurance evidencing such coverage. Each policy shall name Secured Party as additional insured and Secured Party’s loss payee,
shall provide for coverage to Secured Party regardless of the breach by Debtor of any warranty or representation made therein, shall not be subject to co-insurance, and shall provide that coverage may not be canceled or altered by the insurer except
upon thirty (30) days prior written notice to Secured Party. Debtor hereby irrevocably authorizes and instructs any insurer (to whom this authority and instruction may be disclosed) to disclose all relevant information to Secured Party and
appoints Secured Party as its attorney-in-fact to make proof of loss, claim for insurance and adjustments with insurers, and to receive payment of and execute or endorse all documents, checks or drafts in connection with insurance payments. Secured
Party shall not act as Debtor’s attorney-in-fact unless an Event of Default shall have occurred and is continuing. Proceeds of insurance shall be applied, at the option of Secured Party, to repair or replace the Collateral or to reduce any of
the Obligations. To the extent such proceeds of insurance are applied to reduce any of the Obligations, such payment shall not be subject to the prepayment premium set forth in the Notes. 

 

	6.	REPORTS. 

 (a) Debtor
shall promptly notify Secured Party of (i) any change in the name of Debtor, (ii) any change in the state of its incorporation, organization or registration, (iii) any relocation of its chief executive offices, (iv) any
relocation of any of the Collateral, (v) any of the Collateral being lost, stolen, missing, destroyed, materially damaged or worn out, or (vi) any lien, claim or encumbrance other than Permitted Liens attaching to or being made against any
of the Collateral. 
 (b) Debtor will deliver to Secured Party financial statements as follows. If Debtor is a privately held
company, then Debtor agrees to provide monthly financial statements, certified by Debtor’s president or chief financial officer including a balance sheet, statement of operations and cash flow statement within 30 days of each month end and its
complete audited annual financial statements, certified by a recognized firm of certified public accountants, within 120 days of fiscal year end or at such time as Debtor’s Board of Directors receives the audit. If Debtor is a publicly held
company, then Debtor agrees to provide quarterly unaudited statements and annual audited statements, certified by a recognized firm of certified public accountants, within 10 days after the statements are provided to the Securities and Exchange
Commission (“SEC”). All such statements are to be prepared using generally accepted accounting principles (“GAAP”) and, if Debtor is a publicly held company, are to be in compliance with SEC requirements.

  

 8 

	7.	FURTHER ASSURANCES. 

 (a)
Debtor shall, upon request of Secured Party, furnish to Secured Party such further information, execute and deliver to Secured Party such documents and instruments (including, without limitation, Uniform Commercial Code financing statements) and
shall do such other acts and things as Secured Party may at any time reasonably request relating to the perfection or protection of the security interest created by this Agreement or for the purpose of carrying out the intent of this Agreement.
Without limiting the foregoing, Debtor shall cooperate and do all acts deemed necessary or advisable by Secured Party to continue in Secured Party a perfected first security interest in the Collateral, and shall use its best efforts to obtain and
furnish to Secured Party any subordinations, releases, landlord waivers, lessor waivers, mortgagee waivers, or control agreements, and similar documents as may be from time to time reasonably requested by, and in form and substance reasonably
satisfactory to, Secured Party; provided, however, in the event of any sale of the premises in which any Collateral is located by the contract manufacturer or landlord party to the Initial Landlord Consent, Debtor shall obtain and
furnish to Secured Party any subordinations, releases, landlord waivers, lessor waivers, mortgagee waivers, or control agreements, or similar documents as may be reasonably requested by, and in form and substance reasonably satisfactory to, Secured
Party; provided, further, that the foregoing shall not apply, and Debtor shall not be required to obtain any such subordinations, releases, landlord waivers, lessor waivers, mortgagee waivers, control agreements or similar documents,
if following such sale (i) the party to the Initial Landlord Consent pertaining to such premises remains in possession and control of that portion of the premises where the respective Collateral is located, and (ii) each provision of the
Initial Landlord Consent remains enforceable against such party to the same extent that such Initial Landlord Consent was enforceable immediately prior to such sale. 
 (b) Debtor authorizes Secured Party to file a financing statement and amendments thereto describing the Collateral and containing any other information required by the applicable Uniform Commercial Code.
Debtor irrevocably grants to Secured Party the power, exercisable by Secured Party only while an Event of Default has occurred and is continuing, to sign Debtor’s name and generally to act on behalf of Debtor to execute and file applications
for title, transfers of title, financing statements, notices of lien and other documents pertaining to any or all of the Collateral; this power is coupled with Secured Party’s interest in the Collateral. Debtor shall, if any certificate of
title be required or permitted by law for any of the Collateral, obtain and promptly deliver to Secured Party such certificate showing the lien of this Agreement with respect to the Collateral. Debtor ratifies its prior authorization for Secured
Party to file financing statements and amendments thereto describing the Collateral and containing any other information required by the Uniform Commercial Code if filed prior to the date hereof. 

(c) Debtor shall indemnify and defend Secured Party, its successors and assigns, and their respective directors, officers and employees,
from and against all claims, actions and suits (including, without limitation, related attorneys’ fees) of any kind whatsoever arising, directly or indirectly, in connection with any of the Collateral, this Agreement, any other Debt Document,
and the transactions contemplated hereby or thereby, except for claims, actions or suits arising from the gross negligence or willful misconduct of Secured Party or its successors or assigns and their respective directors, officers and employees as
determined by final judgment of a court of competent jurisdiction. 
  

 9 

	8.	DEFAULT AND REMEDIES. 

(a) The occurrence of any one or more of the following events shall constitute an “Event of Default” under this Agreement and
each of the other Debt Documents: 
 (i) Debtor breaches its obligation to pay when due any installment or other amount due or
coming due under any of the Debt Documents and fails to cure the breach within ten (10) days; 
 (ii) Debtor, without the
prior written consent of Secured Party, attempts to or does relocate, move, sell, rent, lease, license, mortgage, grant a security interest in, or otherwise transfer or encumber (except for Permitted Liens) any of the Collateral; 

(iii) Debtor breaches any of its insurance obligations under Section 5; 

(iv) Debtor breaches any of its other obligations under any of the Debt Documents and fails to cure that breach within thirty
(30) days after written notice from Secured Party; 
 (v) Any warranty, representation or statement made by Debtor in any
of the Debt Documents or otherwise in connection with any of the Obligations shall be false or misleading in any material respect as of the date made; 
 (vi) Any of the Collateral is subjected to attachment, execution, levy, seizure or confiscation in any legal proceeding or otherwise, or if any legal or administrative proceeding is commenced against
Debtor or any of the Collateral, which in the good faith judgment of Secured Party subjects any of the Collateral to a material risk of attachment, execution, levy, seizure or confiscation and no bond is posted or protective order obtained to negate
such risk; 
 (vii) Debtor breaches or is in default under any other agreement between Debtor and Secured Party; 

(viii) Debtor or any guarantor or other obligor for any of the Obligations (collectively “Guarantor”) dissolves,
terminates its existence, becomes insolvent or ceases to do business as a going concern; 
 (ix) If Debtor or any Guarantor is a
natural person, Debtor or any such Guarantor dies or becomes incompetent; 
 (x) A receiver is appointed for all or of any part
of the property of Debtor or any Guarantor, or Debtor or any Guarantor makes any assignment for the benefit of creditors; 

(xi) Debtor or any Guarantor files a petition under any bankruptcy, insolvency or similar law, or any such petition is filed against
Debtor or any Guarantor and is not dismissed within forty-five (45) days; 
  

 10 

 (xii) Debtor’s improper filing of an amendment or termination statement relating to a
filed financing statement describing the Collateral; 
 (xiii) Any Material Adverse Change has occurred, as determined solely by
Secured Party; 
 (xiv) Any Guarantor revokes or attempts to revoke its guaranty of any of the Obligations or fails to observe
or perform any covenant, condition or agreement to be performed under any guaranty or other related document to which it is a party; 
 (xv) Debtor defaults under any other material obligation for (A) borrowed money, (B) the deferred purchase price of property or (C) payments due under any lease agreement; or 

(xvi) At any time during the term of this Agreement Debtor experiences a change of control such that any person or entity acquires either
more than 50% of the voting stock of Debtor or all or substantially all of Debtor’s assets, in either case, without Secured Party’s prior written consent. 
 (b) Upon the occurrence and during the continuance of an Event of Default, Secured Party, at its option, may declare any or all of the Obligations to be immediately due and payable, without demand or
notice to Debtor or any Guarantor. The accelerated obligations and liabilities shall bear interest (both before and after any judgment) until paid in full at the lower of eighteen percent (18%) per annum or the maximum rate not prohibited by
applicable law. 
 (c) Upon the occurrence and during the continuance of an Event of Default, Secured Party shall have all of
the rights and remedies of a Secured Party under the Uniform Commercial Code, and under any other applicable law. Without limiting the foregoing, Secured Party shall have the right to (i) notify any account debtor of Debtor or any obligor on
any instrument which constitutes part of the Collateral to make payment to Secured Party, (ii) with or without legal process, enter any premises where the Collateral may be and take possession of and remove the Collateral from the premises or
store it on the premises (provided, however, that any such action by Secured Party shall be carried out in a manner that complies with the provisions of any estoppel, consent or similar agreement between Secured Party and any third
parties pertaining to the Collateral), (iii) sell the Collateral at public or private sale, in whole or in part, and have the right to bid and purchase at said sale, or (iv) lease or otherwise dispose of all or part of the Collateral,
applying proceeds from such disposition to the Obligations. If requested by Secured Party, Debtor shall promptly assemble the Collateral and make it available to Secured Party at a place to be designated by Secured Party which is reasonably
convenient to both parties. Secured Party may also render any or all of the Collateral unusable at Debtor’s premises and may dispose of such Collateral on such premises without liability for rent or costs. Any notice that Secured Party is
required to give to Debtor under the Uniform Commercial Code of the time and place of any public sale or the time after which any private sale or other intended disposition of the Collateral is to be made shall be deemed to constitute reasonable
notice if such notice is given to the last known address of Debtor at least five (5) days prior to such action. 
 (d)
Proceeds from any sale or lease or other disposition shall be applied: first, to all costs of repossession, storage, and disposition including without limitation attorneys’, appraisers’, and auctioneers’ fees; second, to discharge the
Obligations; third, to discharge any other obligation or indebtedness of Debtor to Secured Party, whether as obligor, endorser, guarantor, surety or indemnitor; fourth, to expenses incurred in paying or settling liens and claims against the
Collateral; and lastly, to Debtor, if there exists any surplus. Debtor shall remain fully liable for any deficiency. 
  

 11 

 (e) Debtor agrees to pay all reasonable attorneys’ fees and other fees, costs and
expenses incurred by Secured Party (including, without limitation, the allocated cost of in-house legal counsel) in connection with the enforcement, assertion, defense or preservation of Secured Party’s rights and remedies under this Agreement,
or if prohibited by law, such lesser sum as may be permitted. Debtor further agrees that such fees and costs shall be part of the Obligations. 
 (f) Secured Party’s rights and remedies under this Agreement or otherwise arising are cumulative and may be exercised singularly or concurrently. Neither the failure nor any delay on the part of
Secured Party to exercise any right, power or privilege under this Agreement shall operate as a waiver, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise of that or any other right,
power or privilege. SECURED PARTY SHALL NOT BE DEEMED TO HAVE WAIVED ANY OF ITS RIGHTS UNDER THIS AGREEMENT OR UNDER ANY OTHER AGREEMENT, INSTRUMENT OR PAPER SIGNED BY DEBTOR UNLESS SUCH WAIVER IS EXPRESSED IN WRITING AND SIGNED BY SECURED PARTY. A
waiver on any one occasion shall not be construed as a bar to or waiver of any right or remedy on any future occasion. 
 (g)
DEBTOR AND SECURED PARTY UNCONDITIONALLY WAIVE THEIR RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY OF THE OTHER DEBT DOCUMENTS, ANY OF THE OBLIGATIONS SECURED HEREBY, ANY DEALINGS BETWEEN
DEBTOR AND SECURED PARTY RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN DEBTOR AND SECURED PARTY. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING
OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT. THIS WAIVER IS IRREVOCABLE. THIS WAIVER MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING. THE WAIVER ALSO SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT, ANY OTHER DEBT DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 

FOR THE PURPOSE OF ANY ENFORCEMENT BY SECURED PARTY OF ANY OR ALL OF ITS RIGHTS UNDER THIS AGREEMENT IN THE UNITED STATES, ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO ANY DEBT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, DEBTOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. THE PARTIES HERETO (AND, TO THE EXTENT SET FORTH IN ANY
OTHER DEBT DOCUMENT, EACH OTHER PARTY) HEREBY IRREVOCABLY WAIVE ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT ANY OF THEM MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH
ACTION OR PROCEEDING IN SUCH JURISDICTIONS. 
  

 12 

 EACH DEBTOR (AND, TO THE EXTENT SET FORTH IN ANY OTHER DEBT DOCUMENT, EACH OTHER PARTY)
HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND OTHER DOCUMENTS AND OTHER SERVICE OF PROCESS OF ANY KIND AND CONSENTS TO SUCH SERVICE IN ANY SUIT, ACTION OR PROCEEDING BROUGHT IN THE UNITED STATES OF
AMERICA WITH RESPECT TO OR OTHERWISE ARISING OUT OF OR IN CONNECTION WITH ANY DEBT DOCUMENT BY ANY MEANS PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, INCLUDING BY THE MAILING THEREOF (BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID) TO THE ADDRESS
OF THE DEBTOR SPECIFIED IN PREAMBLE HERETO (AND SHALL BE EFFECTIVE WHEN SUCH MAILING SHALL BE EFFECTIVE, AS PROVIDED THEREIN). EACH DEBTOR (AND, TO THE EXTENT SET FORTH IN ANY OTHER DEBT DOCUMENT, EACH OTHER PARTY) AGREES THAT A FINAL JUDGMENT IN
ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. 
 FOR THE PURPOSE OF ANY ENFORCEMENT BY SECURED PARTY OF ANY OR ALL OF ITS RIGHTS UNDER THIS AGREEMENT, (i) IN THE UNITED KINGDOM DEBTOR HEREBY UNCONDITIONALLY AND IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF THE ENGLISH COURTS AND HEREBY APPOINTS LAW DEBENTURE CORPORATE SERVICES LIMITED WHOSE ADDRESS IS FIFTH FLOOR, 100 WOOD STREET, LONDON, EC2V 7EX AS ITS AGENT FOR SERVICE OF ANY LEGAL PROCEEDINGS IN THE ENGLISH COURTS AND
(ii) IN GERMANY, DEBTOR HEREBY UNCONDITIONALLY AND IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE GERMAN COURTS AND HEREBY APPOINTS MR. TIM SCHWARZBURG, NEUHAUS MASSENKEIL ZELLER & PARTNER, SCHLOßSTRAßE 1,
56068 KOBLENZS ITS AGENT FOR SERVICE OF ANY LEGAL PROCEEDINGS IN THE GERMAN COURTS. DEBTOR WILL MAINTAIN AN AGENT FOR SERVICE OF PROCESS IN EACH OF ENGLAND AND GERMANY. 

 

	9.	MISCELLANEOUS. 

 (a) This
Agreement, any Note and/or any of the other Debt Documents may be assigned, in whole or in part, by Secured Party without notice to Debtor, and Debtor agrees not to assert against any such assignee, or assignee’s assigns, any defense, set-off,
recoupment claim or counterclaim which Debtor has or may at any time have against Secured Party for any reason whatsoever. Debtor agrees that if Debtor receives written notice of an assignment from Secured Party, Debtor will pay all amounts
payable under any assigned Debt Documents to such assignee or as instructed by Secured Party. Debtor also agrees to confirm in writing receipt of the notice of assignment as may be reasonably requested by Secured Party or assignee. 

 

 13 

 (b) All notices to be given in connection with this Agreement shall be in writing, shall be
addressed to the parties at their respective addresses set forth in this Agreement (unless and until a different address may be specified in a written notice to the other party and, with respect to any notice given to Secured Party, with a copy to
Hogan & Hartson LLP, 555 Thirteenth Street, N.W. Washington, D.C. 20004, attention Deborah K. Staudinger), and shall be deemed given (i) on the date of receipt if delivered in hand or by facsimile transmission, (ii) on the next
business day after being sent by express mail, and (iii) on the fourth business day after being sent by regular, registered or certified mail. As used herein, the term “business day” shall mean and include any day other than
Saturdays, Sundays, or other days on which commercial banks in New York, New York are required or authorized to be closed. 

(c) Debtor agrees to pay all reasonable attorneys’ fees and all other fees, costs and expenses incurred by Secured Party (including,
without limitation, the allocated cost of in-house legal counsel) in connection with the preparation, negotiation and closing of the transactions contemplated in this Agreement and all related documents and schedules and in connection with the
continued administration thereof, including, without limitation, any amendments, modifications, consents or waivers thereof and in connection with the protection, monitoring or preservation of the Collateral. Debtor further agrees that such fees and
costs shall part of the Obligations. 
 (d) Secured Party may correct patent errors and fill in all blanks in this Agreement or
in any Collateral Schedule consistent with the agreement of the parties. 
 (e) Time is of the essence of this Agreement. This
Agreement shall be binding, jointly and severally, upon all parties described as the “Debtor” and their respective heirs, executors, representatives, successors and assigns, and shall inure to the benefit of Secured Party, its successors
and assigns. 
 (f) This Agreement, its Collateral Schedules and any additional security interest given by Debtor to Secured
Party under security agreements and other documents and agreements related thereto with respect to the Collateral located abroad, and its Collateral Schedules constitute the entire agreement between the parties with respect to the subject matter of
this Agreement and supersede all prior understandings (whether written, verbal or implied) with respect to such subject matter. THIS AGREEMENT AND ITS COLLATERAL SCHEDULES SHALL NOT BE CHANGED OR TERMINATED ORALLY OR BY COURSE OF CONDUCT, BUT ONLY
BY A WRITING SIGNED BY BOTH PARTIES. Section headings contained in this Agreement have been included for convenience only, and shall not affect the construction or interpretation of this Agreement. 

(g) This Agreement shall continue in full force and effect until all of the Obligations has been indefeasibly paid in full to Secured
Party or its assignee. The surrender, upon payment or otherwise, of any Note or any of the other documents evidencing any of the Obligations shall not affect the right of Secured Party to retain the Collateral for such other Obligations as may then
exist or as it may be reasonably contemplated will exist in the future. This Agreement shall automatically be reinstated if Secured Party is ever required to return or restore the payment of all or any portion of the Obligations (all as though such
payment had never been made). 
 (h) Debtor authorizes Secured Party to use its name, logo and/or trademark without notice to or
consent by Debtor, in connection with certain promotional materials that Secured Party may disseminate to the public. The promotional materials may include, but are not limited to, brochures, video tape, internet website, press releases, advertising
in newspaper and/or other periodicals, lucites, and any other materials relating the fact that Secured Party has a financing relationship with Debtor and such materials may be developed, disseminated and used without Debtor’s review. Nothing
herein obligates Secured Party to use Debtor’s name, logo and/or trademark, in any promotional materials of Secured Party. 
  

 14 

 (i) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL IN ALL
RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF
THE LOCATION OF THE COLLATERAL. 
 (j) Secured Party shall have no obligation to marshal any assets in favor of Debtor, or
against or in payment of any obligations owed to Secured Party by Debtor. 
  

 15 

 IN WITNESS WHEREOF, Debtor and Secured Party, intending to be legally bound hereby, have duly
executed this Agreement in one or more counterparts, each of which shall be deemed to be an original, as of the day and year first aforesaid. 
  

									
	SECURED PARTY:	 		 	DEBTOR:
			
	General Electric Capital Corporation	 		 	Zogenix, Inc.
					
	By:	 	 /s/ Diane Earle
	 		 	By:	 	 /s/ Roger L. Hawley

					
	Name:	 	 Diane Earle
	 		 	Name:	 	 Roger L. Hawley

					
	Title:	 	 Duly Authorized Signatory
	 		 	Title:	 	 CEO

 

 S-1 

 Exhibit A 

Form of Note 
  

			
	 $
                    
	  	[DATE]

 FOR VALUE RECEIVED,
Zogenix, Inc., a Delaware corporation located at the address stated below (“Maker”) promises to pay to the order of General Electric Capital Corporation or any subsequent holder hereof (each, a
“Payee”) at its office located at 83 Wooster Heights Road, Danbury, CT 06810 or at such other place as Payee may designate by written notice to Maker, the principal sum of
             DOLLARS ($            ), with interest on the unpaid principal balance, from the date hereof
through and including the dates of payment, at a fixed interest rate of              percent (    %) per annum (the “Contract
Rate”) in installments consisting of [(i) FORTY SEVEN (47) consecutive monthly installments of principal and interest (each, a “Periodic Installment”) and (ii) a final installment which shall be in the amount of
the total outstanding and unpaid principal, accrued interest and any and all amounts due hereunder and under the other Debt Documents (as defined below)], all as set forth on Schedule 1, attached hereto. The first Periodic Installment shall
be due and payable on             , and the subsequent Periodic Installments and the final installment shall be due and payable on the same day of each succeeding period
(each, a “Payment Date”). Such installments have been calculated on the basis of a 360 day year of twelve 30-day months. Each payment may, at the option of Payee, be calculated and applied on an assumption that such payment would be
made on its due date. 
 All payments shall be applied: first, to interest due and unpaid hereunder and under the other Debt Documents;
second, to all other amounts due and unpaid hereunder and under the other Debt Documents, and then to principal due hereunder and under the other Debt Documents. The acceptance by Payee of any payment which is less than payment in full of all
amounts due and owing at such time shall not constitute a waiver of Payee’s right to receive payment in full at such time or at any prior or subsequent time. The payment of any Periodic Installment prior to its due date shall result in a
corresponding increase in the portion of the Periodic Installment credited to the remaining unpaid principal balance. 
 All amounts due
hereunder and under the other Debt Documents are payable in the lawful currency of the United States of America. Maker hereby expressly authorizes Payee to insert the date value is actually given in the blank space on the face hereof and on all
related documents pertaining hereto. 
 This Note is one of the “Notes” as defined in that certain Master Loan and Security Agreement,
dated as of March 5, 2007, between Maker and Payee (as it may be amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) and may be further secured by security agreements, chattel
mortgages, pledge agreements or like instruments. Capitalized terms used, but not otherwise defined herein shall have the meaning given such terms in the Loan Agreement. 

 Time is of the essence hereof, If Payee does not receive from Maker payment in full of any Periodic
Installment or any other sum due under this Note or any other Debt Document is not received within ten (10) days after its due date, Maker agrees to pay a late fee equal to five percent (5%) on such late Periodic Installment or other sum,
but not exceeding any lawful maximum. Such late fee will be immediately due and payable, and is in addition to any other costs, fees and expenses that Maker may owe as a result of such late payment. Additionally, if (i) Maker fails to make
payment of any amount due hereunder within ten (10) days after the same becomes due and payable; or (ii) Maker is in default under, or fails to perform under any term or condition contained in any Debt Document, in each case beyond all
applicable notice and cure periods, then (x) the entire principal sum remaining unpaid, together with all accrued interest thereon and any other sum payable under this Note or any other Debt Document, at the election of Payee, shall immediately
become due and payable, with interest thereon at the lesser of eighteen percent (18%) per annum or the highest rate not prohibited by applicable law from the date of such accelerated maturity until paid (both before and after any judgment)
and/or (y) Payee may enforce its rights under any or all Debt Documents. The application of such 18% interest rate shall not be interpreted or deemed to extend any cure period set forth in this Note or any other Debt Document, cure any default
or otherwise limit Payee’s right or remedies hereunder or under any Debt Document. 
 The Maker may prepay in full, but not in part, its
entire indebtedness hereunder upon payment of the entire indebtedness, interest costs and fees due and owing hereunder plus an additional sum as a premium equal to the following percentages of the outstanding principal balance for the indicated
period: 
  

			
	 Period
	  	Prepayment Premium
	 On or before the first annual

anniversary of this Note
	  	4%
	 After the first anniversary

but prior to the second

annual anniversary
	  	3%
	 After the second anniversary

but prior to the third annual

anniversary
	  	2%
	 After the third anniversary

but prior to the fourth annual

anniversary
	  	1%
	 Thereafter
	  	0%

 It is the intention of the parties hereto
to comply with the applicable usury laws; accordingly, it is agreed that, notwithstanding any provision to the contrary in this Note or any other Debt Document, in no event shall this Note or any other Debt Document require the payment or permit the
collection of interest in excess of the maximum amount permitted by applicable law. If any such excess interest is contracted for, charged or received under this Note or any other Debt Document, or if all of the principal balance shall be prepaid,
so that under any of such circumstances the amount of interest contracted for, charged or received under this Note or any other Debt Document on the principal balance shall exceed the maximum amount of interest permitted by applicable law, then in
such event: (a) the provisions of this paragraph shall govern and control, (b) neither Maker nor any other person or entity now or hereafter liable for the payment hereof shall be obligated to pay the amount of such interest to the extent
that it is in excess of the maximum amount of interest permitted by applicable law, (c) any such excess which may have been collected shall be either applied as a credit against the then unpaid principal balance or refunded to Maker, at the
option of Payee, and (d) the effective rate of interest shall be automatically reduced to the maximum lawful contract rate allowed under applicable law as now or hereafter construed by the courts having jurisdiction thereof. It is further
agreed that without limitation of the foregoing, all calculations of the rate of interest contracted for, charged or received under this Note or any Debt Document which are made for the purpose of determining whether such rate exceeds the maximum
lawful contract rate, shall be made, to the extent permitted by applicable law, by amortizing, prorating, allocating and spreading in equal parts during the period of the full stated term of the indebtedness evidenced hereby, all interest at any
time contracted for, charged or received from Maker or otherwise by Payee in connection with such indebtedness; provided, however, that if any applicable state law is amended or the law of the United States of America preempts any applicable state
law, so that it becomes lawful for Payee to receive a greater interest per annum rate than is presently allowed, Maker agrees that, on the effective date of such amendment or preemption, as the case may be, the lawful maximum hereunder shall be
increased to the maximum interest per annum rate allowed by the amended state law or the law of the United States of America. 

 Maker hereby consents to any and all extensions of time, renewals, waivers or modifications of, and all
substitutions or releases of, security or of any party primarily or secondarily liable on this Note or any other Debt Document or any term and provision of either, which may be made, granted or consented to by Payee, and agrees that suit may be
brought and maintained against Maker and/or any and all sureties, endorsers, guarantors or any others who may at any time become liable for payments and performance under this Note and any other Debt Documents (each such person, other than Maker, an
“Obligor”), at the election of Payee without joinder of any other as a party thereto, and that Payee shall not be required first to foreclose, proceed against, or exhaust any security hereof in order to enforce payment of this Note. Maker
hereby waives presentment, demand for payment, notice of nonpayment, protest, notice of protest, notice of dishonor, and all other notices in connection herewith, as well as filing of suit (if permitted by law) and diligence in collecting this Note
or enforcing any of the security hereof, and agrees to pay (if permitted by law) all expenses incurred in collection, including Payee’s actual attorneys’ fees. 
 THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 

MAKER AND PAYEE UNCONDITIONALLY WAIVE THEIR RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS NOTE, ANY OF THE
OTHER DEBT DOCUMENTS, ANY OF THE OBLIGATIONS SECURED HEREBY, ANY DEALINGS BETWEEN MAKER AND PAYEE RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN MAKER AND
PAYEE. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT. THIS WAIVER IS IRREVOCABLE. THIS WAIVER MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING. THE WAIVER ALSO SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS NOTE, ANY OTHER DEBT DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR NOTES RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. THIS NOTE MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL
BY TILE COURT. 

 FOR THE PURPOSE OF ANY ENFORCEMENT BY PAYEE OF ANY OR ALL OF ITS RIGHTS UNDER THIS NOTE IN THE UNITED
STATES, ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO ANY DEBT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW
YORK AND, BY EXECUTION AND DELIVERY OF THIS NOTE, MAKER HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. THE PARTIES HERETO (AND, TO THE EXTENT SET FORTH
IN ANY OTHER DEBT DOCUMENT, EACH OTHER PARTY) HEREBY IRREVOCABLY WAIVE ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT ANY OF THEM MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY
SUCH ACTION OR PROCEEDING IN SUCH JURISDICTIONS. 
 EACH MAKER (AND, TO THE EXTENT SET FORTH IN ANY OTHER DEBT DOCUMENT, EACH OTHER PARTY)
HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND OTHER DOCUMENTS AND OTHER SERVICE OF PROCESS OF ANY KIND AND CONSENTS TO SUCH SERVICE IN ANY SUIT, ACTION OR PROCEEDING BROUGHT IN THE UNITED STATES OF
AMERICA WITH RESPECT TO OR OTHERWISE ARISING OUT OF OR IN CONNECTION WITH ANY DEBT DOCUMENT BY ANY MEANS PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, INCLUDING BY THE MAILING THEREOF (BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID) TO THE ADDRESS
OF THE MAKER SPECIFIED IN PREAMBLE HERETO (AND SHALL BE EFFECTIVE WHEN SUCH MAILING SHALL BE EFFECTIVE, AS PROVIDED THEREIN). EACH MAKER (AND, TO THE EXTENT SET FORTH IN ANY OTHER DEBT DOCUMENT, EACH OTHER PARTY) AGREES THAT A FINAL JUDGMENT IN ANY
SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON TILE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. 

 This Note and the other Debt Documents constitute the entire agreement of Maker and Payee with respect to
the subject matter hereof and supersede all prior understandings, agreements and representations, express or implied. 
 No variation or
modification of this Note, or any waiver of any of its provisions or conditions, shall be valid unless in writing and signed by an authorized representative of Maker and Payee. Any such waiver, consent, modification or change shall be effective only
in the specific instance and for the specific purpose given. 
 Any provision in this Note or any of the other Debt Documents which is in
conflict with any statute, law or applicable rule shall be deemed omitted, modified or altered to conform thereto. 
 Payment Authorization

 Payee is hereby directed and authorized by Maker to advance and/or apply the proceeds of the loan as evidenced by this Note to the
following parties in the stipulated amounts as set forth below: 
  

				
	 Company Name
	  	Amount
	 Maker
	  	$	             
	 Legal Fees
	  	$	            
	 Total
	  	$	            

 

	*	Funds from your Commitment Fee have been applied as follows: $              towards balance of
interim interest due             . 

 Any provision in
this Note or any of the other Debt Documents which is in conflict with any statute, law or applicable rule shall be deemed omitted, modified or altered to conform thereto. 

 Exhibit B 

Form of Secretary’s Certificate 
 Reference is made to the Master Loan and Security Agreement, dated as of the date hereof, between [Customer Name] (the “Agreement”), a [corporation/limited liability company/limited
liability partnership/limited partnership] organized and existing under the laws of the State of [            ] (the “Debtor”) and General Electric Capital
Corporation (the “Secured Party”). Capitalized terms used but not defined herein are used with the meanings assigned to such terms in the Agreement. 
 I,
                                         
                   , do hereby certify that: 

(i) I am the duly elected, qualified and acting [Assistant] Secretary of Debtor; 
 (ii) attached hereto as Exhibit A is a true, complete and correct copies of Debtor’s [Certificate/Articles of Incorporation or Articles of Organization/Certificate of Formation] and the
[Bylaws/LLC Agreement/Partnership Agreement] (collectively, the “Governing Documents”), each of which is in full force and effect on and as of the date hereof; 
 (iii) each of the following named individuals is a duly elected or appointed, qualified and acting officer of Debtor who holds the offices set opposite such individual’s name, and the signature
written opposite the name and title of such officer is such officer’s genuine signature: 
  

					
	 Name
	  	 Title
	  	 Signature

			
		  		  	  

			
		  		  	  

 (iv) attached hereto as Exhibit B are true, complete and correct copies of resolutions adopted by the Board of Directors/Members of Debtor (the “Board”) authorizing the execution,
delivery and performance of the Debt Documents to which Debtor is a party, which resolutions were duly adopted by the Board on [DATE] and all such resolutions are in full force and effect on the date hereof in the form in which adopted without
amendment, modification, rescission or revocation; 

 (iv) the execution and delivery of the Debt Documents is not prohibited by or in any manner restricted by
the terms of (i) Debtor’s Governing Documents, (ii) any loan agreement, indenture or contract to which Debtor is a party or under which it is bound or (iii) federal or state statute, rule, regulation or court order applicable to
Debtor; 
 (v) the foregoing authority shall remain in full force and effect, and Secured Party shall be entitled to rely upon same, until
written notice of the modification, rescission or revocation of same, in whole or in part, has been delivered to Secured Party, but no such modification, rescission or revocation shall, in any event, be effective with respect to any documents
executed or actions taken in reliance upon the foregoing authority before said written notice is delivered to Secured Party; and 
 (vi) there
are no actions, suits, proceedings or investigations pending or threatened against or affecting Debtor before any court, federal, state, provincial, municipal or other governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, or any basis therefor, which involves the possibility of any judgment or liability not covered in full by insurance which could result in any material adverse effect, or materially impair the right or ability of Debtor to carry
on its operations substantially as now conducted or anticipated to be conducted in the future, or which questions the validity of the Debt Documents, or the other documents required thereby or any action to be taken to be taken pursuant to any of
the foregoing. 
 IN WITNESS WHEREOF, I have hereunto set my hand as of the first date written above 

 

									
	  
	 		 		 	
	Name:	 	  
	 	Title:	 	[Assistant] Secretary

 [Following signature
block required if signatory above will be signing Debt Documents] 
 The undersigned does hereby certify on behalf of Debtor
that he is the duly elected or appointed, qualified and acting [TITLE] of Debtor and that [NAME FROM ABOVE] is the duly elected or appointed, qualified and acting [Assistant] Secretary of Debtor, and that the signature set forth immediately above is
his genuine signature. 
  

									
	  
	 		 		 	
	Name:	 	  
	 	Title:	 	
		 	  
	 		 		 	

 Schedule 1 

Equipment 
 [***] 
  

	***	Twelve (12) pages have been omitted pursuant to request for special treatment.General Release of Claims

 Exhibit 10.26 
 GENERAL RELEASE OF CLAIMS 
 This General Release of
Claims (“Release”) is entered into as of this 13th day of August, 2010, between Jennifer D. Haldeman (“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
May 7, 2008 (the “Employment Agreement”); 
 WHEREAS, the Parties agree that Executive is entitled to
certain severance benefits under the Employment Agreement, subject to Executive’s execution of this Release; and 

WHEREAS, the Company and Executive now wish to fully and finally resolve all matters between them. 

NOW, THEREFORE, in consideration of, and subject to, the severance benefits payable to Executive described in Section 2(d) below,
the adequacy of which is hereby acknowledged by Executive, and which Executive acknowledges that she would not otherwise be entitled to receive, Executive and the Company hereby agree as follows: 

1. Effective Date; Termination of Employment. 
 (a) Effective Date. This Release shall become effective upon the occurrence of both of the following events: (i) execution of the Release by the Parties; and (ii) expiration of the
revocation period applicable under Section 3(d) below without any party hereto having given notice of revocation. The date of the last to occur of the foregoing events shall be referred to in this Release as the “Effective
Date.” Until and unless both of the foregoing events occur, this Release shall be null and void. Executive understands that Executive will not be given any severance benefits under this Release unless the Effective Date occurs on or before
the date that is sixty (60) days following the Termination Date (as defined below). 
 (b) Termination of Employment
Status. Executive’s employment by the Company terminated effective as of July 26, 2010 (the “Termination Date”). Executive hereby irrevocably resigns from her position as Chief Commercial Officer (and any other
titles or officer positions she may hold) of the Company (and any of its affiliates and subsidiaries) effective as of the Termination Date. Executive shall execute any additional documentation necessary to effectuate such resignations.
Executive’s personnel file at the Company will reflect that Executive voluntarily resigned for personal reasons. Notwithstanding the foregoing, the Company shall not oppose Executive’s claim for unemployment benefits. Executive’s
“separation from service” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), shall be the Termination Date. 

(c) Surrender of Company Property. 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. 

 2. Compensation. 

(a) Compensation Through Termination Date. On the Termination Date, the Company issued Executive her final paycheck, reflecting
(a) her earned but unpaid base salary at the annualized rate of $255,000 per year through the Termination Date, and (b) all accrued, unused paid time off due Executive through the Termination Date. Subject to Section 2(d) below,
Executive acknowledges and agrees that with her final check, Executive received all monies, bonuses, commissions, expense reimbursements, paid time off, or other compensation she earned or was due during her employment by the Company. 

(b) Expense Reimbursements. The Company, within thirty (30) days after the Termination Date, will reimburse Executive for any
and all reasonable and necessary business expenses incurred by Executive in connection with the performance of her job duties prior to the Termination Date, which expenses shall be submitted to the Company with supporting receipts and/or
documentation no later than thirty (30) days after the Termination Date. 
 (c) Benefits. Subject to
Section 2(d)(ii) below, Executive’s entitlement to benefits from the Company, and eligibility to participate in the Company’s benefit plans, shall cease on the Termination Date, except to the extent Executive elects to and is eligible
to receive continued healthcare coverage pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), for herself and any covered dependents, at her sole expense in accordance with
the provisions of COBRA. 
 (d) Severance. In exchange for Executive’s agreement to be bound by the terms of this
Release, including, but not limited to, the release of claims in Section 3, Executive shall be entitled to receive the following, which shall be the exclusive severance benefits to which Executive is entitled, unless Executive has materially
breached the provisions of this Release, in which case the last sentence of Section 4 shall apply: 
 (i) A cash payment
equal to $255,000, representing Executive’s annual base salary as in effect immediately prior to the Termination Date, payable in a lump sum via wire transfer to Executive within ten (10) days following the Effective Date; 

(ii) For the period beginning on the Termination Date and ending on the date which is twelve (12) full months following the
Termination Date (or, if earlier, the date on which the applicable continuation period under COBRA expires) (the “COBRA Coverage Period”), the Company shall reimburse Executive for that portion of the monthly premium Executive is
required to pay for continuation coverage pursuant to COBRA for Executive and her eligible dependents who were covered under the Company’s health plans as of the Termination Date which is equal to the amount the Company was paying toward
Executive’s health insurance coverage (including for eligible dependents) immediately prior to the Termination Date (or in the event of a change in health insurance plans available, the amount the Company would pay toward
comparable coverage for an active employee). Executive shall remain responsible for paying that portion of the COBRA premium that is equal to the difference between the full COBRA premium minus the amount reimbursed by the
Company. Except for the foregoing, Executive shall be solely responsible for all matters relating to her continuation of coverage pursuant to COBRA, including, without limitation, her election of such coverage and her timely payment of her
portion of any COBRA premiums. Following the COBRA Coverage Period, the Executive will then be responsible for paying the full cost of continuation coverage under COBRA for the Executive and her eligible dependents should the Executive elect to
continue coverage after such period; 
  

 2 

 (iii) On the Effective Date, the vesting and/or exercisability of each of Executive’s
outstanding Stock Awards (as defined below) shall be automatically accelerated as to the number of options or shares of such Stock Awards that would have vested over the twelve (12) month period following the Termination Date had Executive
remained continuously employed by the Company during such period. In addition, in the event of a Change in Control (as defined in the Employment Agreement) on or before October 26, 2010, the vesting and/or exercisability of all of
Executive’s Stock Awards shall be automatically accelerated in full on the date of the Change in Control. Following the Termination Date, Executive’s vested Stock Awards (including any shares accelerated on the Effective Date and/or upon a
Change in Control) shall be exercisable by Executive (or Executive’s legal guardian or legal representative) until July 26, 2011. Except as modified above, Executive’s Stock Awards shall continue to be governed by the terms and
conditions of the Stock Award agreements and the Company’s equity plan pursuant to which such Stock Awards were granted. For purposes of this Release, “Stock Awards” means all stock options, stock appreciation rights,
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; and 

(iv) Notwithstanding anything to the contrary in this Section 2(d), in the event of a Change in Control occurs on or before
September 26, 2010, Executive shall be entitled to receive, in addition to the severance benefits described in clauses (i), (ii) and (iii) above, an amount equal to $52,085, representing Executive’s “Bonus” (as
defined in the Employment Agreement) calculated as of the Termination Date, which amount shall be payable in a lump sum within ten (10) days following the later of (A) Effective Date and (B) the date of the Change in Control.

 3. General Release of Claims by Executive. 
 (a) Executive, on behalf of herself and 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 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, 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,
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. 

 

 3 

 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 benefits under any benefit plan maintained by the Company. 

(b) EXECUTIVE ACKNOWLEDGES THAT 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.” 

 

 4 

 BEING AWARE OF SAID CODE SECTION, EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS SHE MAY HAVE
THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. 
 (c) Executive acknowledges that
this Release was presented to her on the date indicated above and that Executive is entitled to have twenty-one (21) days’ time in which to consider it. Executive further acknowledges that the Company has advised her that she is waiving
her rights under the ADEA, and that Executive should consult with an attorney of 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) 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 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 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. 

4. Confirmation of Continuing Obligations. Executive hereby expressly reaffirms her obligations under Section 5 of the
Employment Agreement, a copy of which is attached to this Agreement as Exhibit A and incorporated herein by reference, and under the Company’s standard employee proprietary information and inventions agreement (the “Employee
Proprietary Information and Inventions Agreement”) a copy of which is attached to this Agreement as Exhibit B and incorporated herein by reference, and agrees that such obligations shall survive the Termination Date and any
termination of her services to the Company. The Company shall be entitled to cease all severance payments to Executive in the event of her material breach of this Section 4. 

 

 5 

 5. Nondisparagement; Confidentiality. Executive agrees that she shall not
disparage or otherwise communicate negative statements or opinions about the Company, its Board members, officers, employees, shareholders or agents; provided, however, that Executive shall not be prohibited from making such statements or opinions
to her immediate family so long as such statements or opinions are not likely to be harmful to the Company, its Board members, officers, employees, shareholders or agents or its or their businesses, business reputations, or personal
reputations. The Company agrees that neither its Board members nor officers shall disparage or otherwise communicate negative statements or opinions about Executive. Except as may be required by law, neither Executive, nor any member of
Executive’s family, nor anyone else acting by, through, under or in concert with Executive will disclose to any individual or entity (other than Executive’s legal or tax advisors) the terms of this Agreement. Nothing in this
Section 5 shall prohibit Executive from testifying in any legal proceeding in which her testimony is compelled by law or court order and no breach of this provision shall occur due to any accurate, legally compelled testimony. 

6. Indemnification Agreement. The Company hereby reaffirms its obligations under that certain Indemnification Agreement, dated
October 9, 2006, between the Company and Executive attached hereto as Exhibit C (the “Indemnification Agreement”). The Company’s obligations under the Indemnification Agreement shall survive Executive’s
termination of employment by or service to the Company. 
 7. Agreed-Upon Statement; Employment References. Any inquiries
regarding Executive from prospective employers shall be forwarded to the Chief Executive Officer, who shall confirm that Executive resigned from the Company for personal reasons. Except as required by law or court order, the Company shall not make
any additional or inconsistent internal or public statements regarding Executive’s resignation. 
 8. Litigation
Cooperation. Executive agrees to provide reasonable assistance to the Company (including the board of directors and any committees thereof) and its counsel and accountants in any financial audits or internal investigation involving securities,
financial, accounting, or other matters, and in its defense of, or other participation in, any administrative, judicial, or other proceeding arising from any charge, complaint or other action which has been or may be filed relating to the period
during which Executive was employed by the Company. The Company agrees to reimburse Executive for her reasonable expenses incurred in connection with such cooperation within thirty (30) days after receipt of an invoice from Executive setting
forth in reasonable detail such expenses. Notwithstanding the foregoing, the Company shall have no obligation by virtue of this Section 8 to pay Executive for time spent by Executive in any pending or future litigation or arbitration where
Executive is a co-defendant or party to the arbitration or litigation or with respect to which Executive requests indemnification pursuant to Section 6. 
  

 6 

 9. 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 JAMS Employment Arbitration Rules and
Procedures (the “Rules”), 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 JAMS 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; provided, 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 Termination Date. Other costs of the
arbitration, including the cost of any record or transcripts of the arbitration, JAMS administrative fees, the fee of the arbitrator, and all other fees and costs, shall be borne by the Company. This Section 9 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 Release or relating to Executive’s employment; provided, however, that neither this Release 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. 

10. Assignment; Assumption by Successor. The rights of the Company under this Release 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 shall require any 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 Release 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. Unless expressly provided otherwise, “Company” as used herein shall mean the Company as defined in this Release and any successor to its business and/or assets as aforesaid. 

11. Survival. The covenants, agreements, representations and warranties contained in or made in this Release, the Employee
Proprietary Information and Inventions Agreement, the Indemnification Agreement and Section 5 of the Employment Agreement, shall survive any termination of Executive’s services or any termination of this Release. 

12. 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.

  

 7 

 13. Interpretation; Construction. The headings set forth in this Release are for
convenience only and shall not be used in interpreting this Release. 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. 
 14. 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. 
 15.
Entire Agreement; Amendment. This Release, the Employee Proprietary Information and Inventions Agreement, the Indemnification Agreement and Executive’s Stock Award agreements and the Company’s equity plan pursuant to which such
Stock Awards were granted 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. Except as provided in Section 4 hereof with respect to Section 5 of the Employment Agreement, the Employment Agreement shall be superseded entirely by this Release and the Employment Agreement shall be terminated and be of no
further force or effect. 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. 
 16. 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. 
 17. Section 409A of the
Code. This Release 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 2(d)(i) and (iv) 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 Release shall be interpreted in accordance with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder. 

 

 8 

 18. Taxes. All compensation payable to Executive under this Release shall be subject
to such deductions as the Company is from time to time required to make pursuant to law, governmental regulation or order. Executive acknowledges that the payments and benefits provided in this Release may have tax ramifications to her. The Company
has provided no tax or other advice to Executive on such matters and Executive is free to consult with an accountant, legal counsel, or other tax advisor regarding the tax consequences she may face. 

19. RIGHT TO ADVICE OF COUNSEL. EXECUTIVE ACKNOWLEDGES THAT SHE HAS THE RIGHT, AND IS ENCOURAGED, TO CONSULT WITH HER LAWYER; BY
HER SIGNATURE BELOW, EXECUTIVE ACKNOWLEDGES THAT SHE HAS CONSULTED, OR HAS ELECTED NOT TO CONSULT, WITH HER LAWYER CONCERNING THIS RELEASE. 
 (Signature Page Follows) 
  

 9 

 IN WITNESS WHEREOF, and intending to be legally bound, the Parties have executed the
foregoing Release. 
  

									
	EXECUTIVE	  		  	ZOGENIX, INC.
				
	 /s/ Jennifer D. Haldeman
	  		  	By:	 	 /s/ Roger Hawley

	Print Name: Jennifer D. Haldeman	  		  	Print Name: Roger Hawley
	Date:	 	 August 13, 2010
	  		  	Title: Chief Executive Officer
		 		  		  	Date:	 	 August 13, 2010

 

 10 

 EXHIBIT A 
 EMPLOYMENT AGREEMENT 
 [Attached] 

 

 EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into by and between Zogenix, Inc., a Delaware corporation (the
“Company”), and Jennifer D. Haldeman (“Executive”), and shall be effective as of May 7, 2008 (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; provided that, to the extent Executive has not received any bonus prior to the date of his or her termination of employment due to the fact that his or her employment commenced during the fiscal year in which his or her
termination of employment occurs, his or her “Bonus” for purposes of Section 4 shall be equal to his or her target bonus for the fiscal year in which such termination occurs (calculated by reference to the target bonus level in effect
on the date of termination) multiplied by the corporate performance achievement percentage approved by the Board or its designee with respect to the payment of executive bonuses for the preceding fiscal year, which Bonus shall be
annualized. For purposes of determining Executive’s “Bonus,” (i) 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,” and (ii) to the extent Executive was not employed for an entire fiscal year, the bonus received by Executive for such fiscal year shall be
annualized for purposes of the preceding calculation. 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 
  

 13 

 (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. 
  

 14 

 (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. 
 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.

  

 15 

 (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 Chief Commercial 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 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 $255,000 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 

 

 16 

 
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, (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 2(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. 
  

 17 

 (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 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

  

 18 

 
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 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; 
  

 19 

 (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 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. 

 

 20 

 (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-five (55) 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 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 
  

 21 

 
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 (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 

 

 22 

 
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 
 (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. 

 

 23 

 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. 
 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. 

 

 24 

 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, October 6, 2006, 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 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. 
  

 25 

 (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. 
 (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

  

 26 

 
(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 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. 
 (iv) As provided in Internal Revenue Service Notice 2007-86,
notwithstanding any other provision of this Agreement, with respect to an election or amendment to change a time and form of payment under this Agreement that is subject to Section 409A made on or after January 1, 2008 and on or before
December 31, 2008, the election or amendment may apply only to amounts that would not otherwise be payable in 2008 and may not cause an amount to be paid in 2008 that would not otherwise be payable in 2008. 

(Signature Page Follows) 
  

 27 

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

			
	ZOGENIX, INC.
		
	By:	 	 /s/ Roger Hawley

	Name:	 	Roger Hawley
	Title:	 	Chief Executive Officer
	
	EXECUTIVE
	
	 /s/ Jennifer D. Haldeman

	Jennifer D. Haldeman

SIGNATURE PAGE TO EMPLOYMENT AGREEMENT 
  

 28 

 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             
(“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 May 7, 2008 (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, 
  

 29 

 
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.” 

 

 30 

 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-five (55) 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. 
  

 31 

 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) 
  

 32 

 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: _________________________________________	 		 		 	Print Name: ____________________________________
				
		 		 		 	Title: _________________________________________

 EXHIBIT B 
 COMPANY CONFIDENTIALITY AND PROPRIETARY RIGHTS AGREEMENT 
 [Attached]

  

 

 

 PROPRIETARY INFORMATION 
 AND INVENTIONS AGREEMENT 
 In consideration of my employment or continued
employment by Zogenix (the “Company”), and the compensation now and hereafter paid to me, I hereby agree as follows: 

1. RECOGNITION OF COMPANY’S RIGHTS; NONDISCLOSURE. At all times during the term of my employment and thereafter, I will hold in
strictest confidence and will not disclose, use, lecture upon or publish any of the Company’s Proprietary Information (defined below), except as such disclosure, use or publication may be required in connection with my work for the Company, or
unless an officer of the Company expressly authorizes such in writing. I hereby assign to the Company any rights I may have or acquire in such Proprietary Information and recognize that all Proprietary Information shall be the sole property of the
Company and its assigns and the Company and its assigns shall be the sole owner of all trade secret rights, patent rights, copyrights, mask work rights and all other rights throughout the world (collectively, “Proprietary Rights”) in
connection therewith. 
 The term “Proprietary Information” shall mean trade secrets, confidential knowledge, data or
any other proprietary information of the Company. By way of illustration but not limitation, “Proprietary Information” includes (a) trade secrets, inventions, mask works, ideas, processes, formulas, source and object codes, data,
programs, other works of authorship, know-how, improvements, discoveries, developments, designs and techniques (hereinafter collectively referred to as “Inventions”); and (b) information regarding plans for research, development, new
products, marketing and selling, business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers; and information regarding the skills and compensation of other employees of the Company. 

2. THIRD PARTY INFORMATION. I understand, in addition, that the Company has received and in the future will receive from third parties
confidential or proprietary information (“Third Party Information”) subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the term of my
employment and thereafter, I will hold Third Party Information in the strictest confidence and will not disclose (to anyone other than Company personnel who need to know such information in connection with their work for the Company) or use, except
in connection with my work for the Company, Third Party Information unless expressly authorized by an officer of the Company in writing. 
 3. ASSIGNMENT OF INVENTIONS. 
 1 ASSIGNMENT. I hereby assign to the Company all my
right, title and interest in and to any and all Inventions (and all Proprietary Rights with respect thereto) whether or not patentable or registrable under copyright or similar statutes, made or conceived or reduced to practice or learned by me,
either alone or jointly with others, during the period of my employment with the Company which are related to or useful in the business of the Company or result from tasks assigned to me by the Company or result from the use of premises leased,
owned or contracted for by the Company. Inventions assigned to or as directed by the Company by this paragraph 3 are hereinafter referred to as “Company Inventions.” I recognize that this Agreement does not require assignment of any
invention which qualifies fully for protection under Section 2870 of the California Labor Code (hereinafter “Section 2870”), which provides as follows: 
 (a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an
invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: 

(1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or
demonstrably anticipated research or development of the employer; or 
 (2) Result from any work performed by the employee for
the employer. 
 (b) To the extent a provision in an employment agreement purports to require an employee to assign an
invention otherwise excluded from being required to be assigned under subdivision (i), the provision is against the public policy of this state and is unenforceable. 

 2 GOVERNMENT. I also assign to or as directed by the Company all my right, title and
interest in and to any and all Inventions, full title to which is required to be in the United States by a contract between the Company and the United States or any of its agencies. 

3 WORKS FOR HIRE. I acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the
scope of my employment and which are protectable by copyright are “works made for hire,” as that term is defined in the United States Copyright Act (17 U.S.C., Section 101). 

4. ENFORCEMENT OF PROPRIETARY RIGHTS. I will assist the Company in every proper way to obtain and from time to time enforce United States
and foreign Proprietary Rights relating to Company Inventions in any and all countries. To that end I will execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably
request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof. In addition, I will execute, verify and deliver assignments of such Proprietary Rights to the Company or
its designee. My obligation to assist the Company with respect to Proprietary Rights relating to such Company Inventions in any and all countries shall continue beyond the termination of my employment, but the Company shall compensate me at a
reasonable rate after my termination for the time actually spent by me at the Company’s request on such assistance. 
 In
the event the Company is unable for any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions specified in the preceding paragraph, I hereby irrevocably designate and appoint the Company and
its duly authorized officers and agents as my agent and attorney in fact, which appointment is coupled with an interest, to act for and in my behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to
further the purposes of the preceding paragraph with the same legal force and effect as if executed by me. I hereby waive and quitclaim to the Company any and all claims, of any nature whatsoever, which I now or may hereafter have for infringement
of any Proprietary Rights assigned hereunder to the Company. 
 5. OBLIGATION TO KEEP COMPANY INFORMED. During the period of my
employment and for six (6) months after termination of my employment with the Company, I will promptly disclose to the Company fully and in writing all Inventions authored, conceived or reduced to practice by me, either alone or jointly with
others. In addition, I will promptly disclose to the Company all patent applications filed by me or on my behalf within a year after termination of employment. At the time of each such disclosure, I will advise the Company in writing of any
Inventions that I believe fully qualify for protection under Section 2870; and I will at that time provide to the Company in writing all evidence necessary to substantiate that belief. The Company will keep in confidence and will not disclose
to third parties without my consent any proprietary information disclosed in writing to the Company pursuant to this Agreement relating to Inventions that qualify fully for protection under the provisions of Section 2870. I will preserve the
confidentiality of any Invention that does not fully qualify for protection under Section 2870. 
 I agree to keep and
maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that may be required by the Company) of all Proprietary Information developed by me and all Inventions made by me during the period of my
employment at the Company, which records shall be available to and remain the sole property of the Company at all times. 
 6.
PRIOR INVENTIONS. Inventions, if any, patented or unpatented, which I made prior to the commencement of my employment with the Company are excluded from the scope of this Agreement. To preclude any possible uncertainty, I have set forth on Exhibit A
attached hereto a complete list of all Inventions that I have, alone or jointly with others, conceived, developed or reduced to practice or caused to be conceived, developed or reduced to practice prior to the commencement of my employment with the
Company, that I consider to be my property or the property of third parties and that I wish to have excluded from the scope of this Agreement. If disclosure of any such Invention on Exhibit A would cause me to violate any prior confidentiality
agreement, I understand that I am not to list such Inventions in Exhibit A but am to inform the Company that all such Inventions have not been listed for that reason. 
 7. ADDITIONAL ACTIVITIES. I agree that during the period of my employment by the Company I will not, without the Company’s express written consent, engage in any employment or business activity other
than for the Company. I agree further that for the period of my employment by the Company and for one (1) year after the date of termination of my employment by the Company I will not (i) induce any employee of the Company to leave the
employ of the Company or (ii) solicit the business of any client or customer of the Company (other than on behalf of the Company). 
 8. NO IMPROPER USE OF MATERIALS. During my employment by the Company I will not improperly use or disclose any confidential information or trade secrets, if any, of any former employer or any other person
to whom I have an obligation of confidentiality, and I will not bring onto the premises of the Company any unpublished documents or any property belonging to any former employer or any other person to whom I have an obligation of

 
confidentiality unless consented to in writing by that former employer or person. I will use in the performance of my duties only information which is generally known and used by persons with
training and experience comparable to my own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company. 

9. NO CONFLICTING OBLIGATION. I represent that my performance of all the terms of this Agreement and as an employee of the Company does
not and will not breach any agreement to keep in confidence information acquired by me in confidence or in trust prior to my employment by the Company. I have not entered into, and I agree I will not enter into, any agreement either written or oral
in conflict herewith. 
 10. RETURN OF COMPANY DOCUMENTS. When I leave the employ of the Company, I will deliver to the Company
any and all drawings, notes, memoranda, specifications, devices, formulas, and documents, together with all copies thereof, and any other material containing or disclosing any Company Inventions, Third Party Information or Proprietary Information of
the Company. I further agree that any property situated on the Company’s premises and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time
with or without notice. Prior to leaving, I will cooperate with the Company in completing and signing the Company’s termination statement for technical and management personnel. 

11. LEGAL AND EQUITABLE REMEDIES. Because my services are personal and unique and because I may have access to and become acquainted with
the Proprietary Information of the Company, the Company shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights
and remedies that the Company may have for a breach of this Agreement. 
 12. NOTICES. Any notices required or permitted
hereunder shall be given to the appropriate party at the address specified below or at such other address as the party shall specify in writing. Such notice shall be deemed given upon personal delivery to the appropriate address or if sent by
certified or registered mail, three days after the date of mailing. 
 13. GENERAL PROVISIONS. 

1 GOVERNING LAW. This Agreement shall be governed by the laws of the State of California as those laws are applied to contracts entered
into and to be performed entirely in California by California residents. 
 2 ENTIRE AGREEMENT. This Agreement is the final,
complete and exclusive agreement of the parties with respect to the subject matter hereof and supersedes and merges all prior discussions between us. No modification of or amendment to this Agreement, nor any waiver of any rights under this
Agreement, will be effective unless in writing and signed by the party to be charged. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement. As used in this Agreement, the
period of my employment includes any time during which I may be retained by the Company as a consultant. 
 3 SEVERABILITY. If
one or more of the provisions in this Agreement are deemed unenforceable by law, then such provision will be deemed stricken from this Agreement and the remaining provisions will continue in full force and effect. 

4 SUCCESSORS AND ASSIGNS. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and
will be for the benefit of the Company, its successors, and its assigns. 
 5 SURVIVAL. The provisions of this Agreement shall
survive the termination of my employment and the assignment of this Agreement by the Company to any successor in interest or other assignee. 
 6 EMPLOYMENT. I agree and understand that nothing in this Agreement shall confer any right with respect to continuation of employment by the Company, nor shall it interfere in any way with my right or the
Company’s right to terminate my employment at any time, with or without cause. 
 7 WAIVER. No waiver by the Company of any
breach of this Agreement shall be a waiver of any preceding or succeeding breach. No waiver by the Company of any right under this Agreement shall be construed as a waiver of any other right. The Company shall not be required to give notice to
enforce strict adherence to all terms of this Agreement. 
 This Agreement shall be effective as of the first day of my
employment with the Company, namely: October 9, 2006. 

 I UNDERSTAND THAT THIS AGREEMENT AFFECTS MY RIGHTS TO INVENTIONS I MAKE DURING MY
EMPLOYMENT, AND RESTRICTS MY RIGHT TO DISCLOSE OR USE THE COMPANY’S CONFIDENTIAL INFORMATION DURING OR SUBSEQUENT TO MY EMPLOYMENT. 
 I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS. I HAVE COMPLETELY FILLED OUT EXHIBIT A TO THIS AGREEMENT. 
 Dated: 8/31/2007 
  

							
	/s/ J.D. Haldeman	 		 	
		 	Signature	 		 	
			
		 	 J.D. Haldeman
	 	
		 	Name of Employee	 		 	

 ACCEPTED AND AGREED TO: 
 Zogenix 
 By: /s/ Roger Hawley 
 Name: Roger Hawley 
 Title: Chief Executive Officer 

 EXHIBIT A 
  

					
	Zogenix	 		 	Zogenix
	5858 Horton St., Ste 455	 		 	12671 High Bluff Drive, Suite 200
	Emeryville, CA 94608	 		 	San Diego, CA 92130

 To Whom It May Concern: 

14. The following is a complete list of all inventions or improvements relevant to the subject matter of my employment by Zogenix (the
“Company”) that have been made or conceived or first reduced to practice by me alone or jointly with others prior to my engagement by the Company: 
 x     No inventions or improvements. 
 / /     See below: 

											
						
		 		 		 	  
	 		  	
						
		 		 		 	  
	 		  	
						
		 		 		 	  
	 		  	
						
		 		 		 	  
	 		  	

 / /     Due to confidentiality agreements with prior employer, I
cannot disclose certain inventions that would otherwise be included on the above-described list. 
 /
/     Additional sheets attached. 
 15. I propose to bring to my employment the following devices,
materials and documents of a former employer or other person to whom I have an obligation of confidentiality that are not generally available to the public, which materials and documents may be used in my employment pursuant to the express written
authorization of my former employer or such other person (a copy of which is attached hereto): 
 x     No material. 
 1. 

/ /     See below: 

											
						
		 		 		 	  
	 		  	
						
		 		 		 	  
	 		  	
						
		 		 		 	  
	 		  	
						
		 		 		 	  
	 		  	

 / /     Additional sheets attached. 

Date:    8/31        , 2007 

 

											
		 		 		 	Very truly yours,	 		  	
						
		 		 		 	 /s/ J.D. Haldeman
	 		  	
		 		 		 	Employee	 		  	

 EXHIBIT C 
 INDEMNIFICATION AGREEMENT 
 [Attached] 

 

 ZOGENIX, INC. 
 INDEMNIFICATION AGREEMENT 
 THIS
INDEMNIFICATION AGREEMENT (“Agreement”) is made as of October 9, 2006 by and between ZOGENIX, INC., a Delaware corporation (the
“Company”), and Jennifer D. Haldeman (“Indemnitee”). 

RECITALS 
 WHEREAS, highly competent persons have become more reluctant to serve corporations as directors, officers or in other capacities unless they are provided with adequate protection through insurance or
adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation; 
 WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an
ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United
States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time,
directors, officers and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought
only against the Company or business enterprise itself. The certificate of incorporation and bylaws of the Company require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to
the General Corporation Law of the State of Delaware (“DGCL”). The certificate of incorporation, bylaws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby
contemplate that contracts may be entered into between the Company and members of the Board, officers and other persons with respect to indemnification; 
 WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons; 

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best
interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future; 
 WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by
applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; 
 WHEREAS, this Agreement is a supplement to and in furtherance of the certificate of incorporation and bylaws of the Company and any resolutions adopted pursuant thereto and shall not be deemed a
substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and 
 WHEREAS, Indemnitee does not regard
the protection available under the Company’s certificate of incorporation, bylaws and insurance as adequate in the present circumstances, and may not be willing 

 
to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on
additional service for or on behalf of the Company on the condition that he or she be so indemnified. 
 NOW, THEREFORE, in
consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows: 
 1. SERVICES TO THE COMPANY. Indemnitee will serve or continue to serve as an officer, director or key employee of the Company for so long
as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation. 
 2.
DEFINITIONS. As used in this Agreement: 
 (a) “Beneficial Owner” shall have the
meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a
merger of the Company with another entity. 
 (b) A “Change in Control” shall be deemed to occur upon
the earliest to occur after the date of this Agreement of any of the following events: 
 (i) Acquisition of
Stock by Third Party. Any Person (as defined below) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 50.1% or more of the combined voting power of the Company’s then outstanding
securities; 
 (ii) Change in Board of Directors. During any period of two (2) consecutive years (not
including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the
Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still
in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board; 

(iii) Corporate Transactions. The effective date of a merger or consolidation of the Company with any other entity,
other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than 50.1% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board
of directors or other governing body of such surviving entity; or 
 (iv) Liquidation. The approval by the
stockholders of the Company of a complete liquidation of the Company or an agreement or series of agreements for the sale or disposition by the Company of all or substantially all of the Company’s assets. 

(c) “Corporate Status” describes the status of a person who is or was a director, officer, trustee, general
partner, managing member, fiduciary, employee or agent of the Company or of any other Enterprise (as defined below) which such person is or was serving at the request of the Company. 
  

 42 

 (d) “Disinterested Director” means a director of the Company who is
not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee. 
 (e)
“Enterprise” shall mean the Company and any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of
the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent. 
 (f)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (g)
“Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges,
postage, delivery service fees and all other disbursements or expenses of the type customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise
participating in, a Proceeding. Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including, without limitation, the premium, security for and other costs relating to any cost bond,
supersedeas bond or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee. 

(h) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of
corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this
Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages
arising out of or relating to this Agreement or its engagement pursuant hereto. 
 (i) “Person” shall
have the meaning set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan
of the Company and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company. 

(j) The term “Proceeding” shall include any threatened, pending or completed action, suit, arbitration, alternate
dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or
investigative nature, in which Indemnitee was, is or will be involved as a party or otherwise by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action taken (or failure to act) by him or her or of
any action (or failure to act) on his or her part while acting as a director or officer of the Company, or by reason of the fact that he or she is or was serving at the request of the Company as a director, officer, trustee, general partner,
managing member, fiduciary, employee or agent of any other Enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement or advancement of expenses can be
provided under this Agreement. 
  

 43 

 (k) References to “other enterprise” shall include employee benefit
plans; references to “fines” shall include any excise tax assessed with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any service as a
director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in
good faith and in a manner he or she reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the
Company” as referred to in this Agreement. 
 3. INDEMNITY IN
THIRD-PARTY PROCEEDINGS. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant (as
a witness or otherwise) in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments, fines,
penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably
incurred by Indemnitee or on his or her behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of
the Company and, in the case of a criminal proceeding, he or she had no reasonable cause to believe that his or her conduct was unlawful. 
 4. INDEMNITY IN PROCEEDINGS BY OR IN THE RIGHT OF
THE COMPANY. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant (as a witness or otherwise) in
any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on his or her behalf in
connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company. No indemnification for Expenses
shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that any court in which the Proceeding was
brought or the Delaware Court of Chancery shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification. 

5. INDEMNIFICATION FOR EXPENSES OF A PARTY
WHO IS WHOLLY OR PARTLY SUCCESSFUL. Notwithstanding any other provisions of this Agreement, to the extent that Indemnitee is a party to (or a participant
in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or her
in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify
Indemnitee against all Expenses actually and reasonably incurred by him or her or on his or her behalf in connection with each successfully resolved claim, issue or matter. If Indemnitee is not wholly successful in such Proceeding, the Company also
shall indemnify Indemnitee against all Expenses reasonably incurred in connection with a claim, issue or matter related to any claim, issue or matter on which Indemnitee was successful. For purposes of this Section and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 

 

 44 

 6. INDEMNIFICATION FOR EXPENSES
OF A WITNESS. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a
party, he shall be indemnified against all Expenses actually and reasonably incurred by him or her or on his or her behalf in connection therewith. 
  

	7.	ADDITIONAL INDEMNIFICATION. 

 (a) Notwithstanding any limitation in Sections 3, 4 or 5, the Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee is a party to or threatened to be made a party to any
Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee in connection with the Proceeding. No indemnity shall be made under this
Section 7(a) on account of Indemnitee’s conduct which constitutes a breach of Indemnitee’s duty of loyalty to the Company or its stockholders or is an act or omission not in good faith or which involves intentional misconduct or a
knowing violation of the law. 
 (b) For purposes of Section 7(a), the meaning of the phrase “to the fullest
extent permitted by law” shall include, but not be limited to: 
 (i) the fullest extent permitted by the provision
of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL; and 
 (ii) the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its
officers and directors. 
 8. EXCLUSIONS. Notwithstanding any other provision in this Agreement, the
Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee: 

(a) for which payment has actually been received by or on behalf of Indemnitee under any insurance policy or other indemnity provision,
except with respect to any excess beyond the amount actually received under any insurance policy or other indemnity provision; 

(b) for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within
the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law; or 
 (c)
except as otherwise provided in Sections 13(d)-(f) hereof, prior to a Change in Control, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding)
initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board of Directors of the Company authorized the Proceeding (or any part of any Proceeding) prior to its initiation or
(ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law. 
  

 45 

 9. ADVANCES OF EXPENSES;
DEFENSE OF CLAIM. 
 (a) Notwithstanding any provision of this Agreement to the
contrary, the Company shall advance the expenses incurred by Indemnitee in connection with any Proceeding within ten (10) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether
prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability to repay the expenses and without regard to Indemnitee’s ultimate
entitlement to indemnification under the other provisions of this Agreement. Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and
forwarding statements to the Company to support the advances claimed. Indemnitee shall qualify for advances solely upon the execution and delivery to the Company of an undertaking providing that Indemnitee undertakes to repay the advance to the
extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company. This Section 9(a) shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 8. 

(b) The Company will be entitled to participate in the Proceeding at its own expense. 

(c) The Company shall not settle any action, claim or Proceeding (in whole or in part) which would impose any Expense, judgment, fine,
penalty or limitation on Indemnitee without Indemnitee’s prior written consent. 
 10. PROCEDURE
FOR NOTIFICATION AND APPLICATION FOR INDEMNIFICATION. 
 (a) Within sixty (60) days after the actual receipt by Indemnitee of notice that he or she is a party to or a participant (as a witness or otherwise) in any Proceeding, Indemnitee shall submit to the
Company a written notice identifying the Proceeding. The omission by Indemnitee to notify the Company will not relieve the Company from any liability which it may have to Indemnitee (i) otherwise than under this Agreement and (ii) under
this Agreement only to the extent the Company can establish that such omission to notify resulted in actual prejudice to the Company. 
 (b) Indemnitee shall thereafter deliver to the Company a written application to indemnify Indemnitee in accordance with this Agreement. Such application(s) may be delivered from time to time and at such
time(s) as Indemnitee deems appropriate in his or her sole discretion. Following such a written application for indemnification by Indemnitee, Indemnitee’s entitlement to indemnification shall be determined in accordance with Section 11(a)
of this Agreement. 
 11. PROCEDURE UPON APPLICATION FOR
INDEMNIFICATION. 
 (a) Upon written request by Indemnitee for indemnification pursuant to
Section 10(b), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case: (i) by a majority vote of the Disinterested Directors, even though less than a quorum
of the Board; or (ii) if so requested by Indemnitee, in his or her sole discretion, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee. If it is so determined that Indemnitee is entitled
to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall reasonably cooperate with the person, persons or entity making such determination with respect to Indemnitee’s
entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available
to Indemnitee and reasonably necessary to such determination. Any costs or expenses 
  

 47 

 
(including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company
(irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. 
 (b) In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 11(a) hereof, the Independent Counsel shall be selected as provided in
this Section 11(b). If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board of Directors, and the Company shall give written notice to Indemnitee advising him of the identity of the Independent
Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board of Directors, in which event the preceding sentence
shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within 10 days after such written notice
of selection shall have been received, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent
Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and
timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn
or a court of competent jurisdiction has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 10(b) hereof, no Independent Counsel shall
have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction (the “Court”) for resolution of any objection which shall have been made by the Company or Indemnitee to
the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Court or by such other person as the Court shall designate, and the person with respect to whom all objections are so
resolved or the person so appointed shall act as Independent Counsel under Section 11(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 13(a) of this Agreement, Independent Counsel shall be
discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing). 
 (c) The Company agrees to pay the reasonable fees of Independent Counsel and to fully indemnify such Independent Counsel against any and all Expenses, claims, liabilities and damages arising out of or
relating to this Agreement or its engagement pursuant hereto. 
 12. PRESUMPTIONS AND
EFFECT OF CERTAIN PROCEEDINGS. 
 (a) In making a
determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request
for indemnification in accordance with Section 10(b) of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to
that presumption. Neither the failure of the Company (including by the Board or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances
because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by the Board or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that Indemnitee has not met the applicable standard of conduct. 
  

 47 

 (b) If the person, persons or entity empowered or selected under Section 11 of this
Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to
indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period shall be extended for a
reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating
of documentation and/or information relating thereto. 
 (c) The termination of any Proceeding or of any claim, issue or matter
therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to
indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that
Indemnitee had reasonable cause to believe that his or her conduct was unlawful. 
 (d) For purposes of any determination of
good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of
the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert
selected by the Enterprise. The provisions of this Section 12(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed or found to have met the applicable standard of conduct set
forth in this Agreement. 
 (e) The knowledge and/or actions, or failure to act, of any other director, trustee, partner,
managing member, fiduciary, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. 

13. REMEDIES OF INDEMNITEE. 

(a) In the event that (i) a determination is made pursuant to Section 11 of this Agreement that Indemnitee is not entitled to
indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to
Section 11(a) of this Agreement within the time period specified in Section 12(b) of this Agreement, (iv) payment of indemnification is not made pursuant to Section 5, 6, 7 or the last sentence of Section 11(a) of this
Agreement within ten (10) days after receipt by the Company of a written request therefor or (v) payment of indemnification pursuant to Section 3 or Section 4 of this Agreement is not made within ten (10) days after a
determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication by a court of his or her entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his or
her option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The Company shall not oppose Indemnitee’s right to seek any such
adjudication or award in arbitration. 
  

 48 

 (b) In the event that a determination shall have been made pursuant to Section 11(a) of
this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a de novo trial, or arbitration, on the merits
and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 13 the Company shall have the burden of proving Indemnitee is not entitled to
indemnification or advancement of Expenses, as the case may be, and the Company may not refer to or introduce into evidence any determination pursuant to Section 11(a) of this Agreement adverse to Indemnitee for any purpose. If Indemnitee
commences a judicial proceeding or arbitration pursuant to this Section 13, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 9 until a final determination is made with respect to
Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). 
 (c) If a
determination shall have been made pursuant to Section 11(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this
Section 13, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification or
(ii) a prohibition of such indemnification under applicable law. 
 (d) In the event that Indemnitee, pursuant to this
Section 13, seeks a judicial adjudication of or an award in arbitration to enforce his or her rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified
by the Company against, any and all Expenses actually and reasonably incurred by him or her in such judicial adjudication or arbitration. If it shall be determined in said judicial adjudication or arbitration that Indemnitee is entitled to receive
part but not all of the indemnification or advancement of Expenses sought, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company against, any and all Expenses reasonably incurred by Indemnitee in
connection with such judicial adjudication or arbitration. 
 (e) The Company shall be precluded from asserting in any judicial
proceeding or arbitration commenced pursuant to this Section 13 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company
is bound by all the provisions of this Agreement. 
 (f) The Company shall indemnify Indemnitee to the fullest extent permitted
by law against all Expenses and, if requested by Indemnitee, shall (within ten (10) days after the Company’s receipt of such written request) advance such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any
judicial proceeding or arbitration brought by Indemnitee for (i) indemnification or advances of Expenses by the Company under this Agreement or any other agreement or provision of the Company’s certificate of incorporation or bylaws now or
hereafter in effect or (ii) recovery or advances under any insurance policy maintained by any person for the benefit of Indemnitee, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advance or
insurance recovery, as the case may be. 
  

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 14. NON-EXCLUSIVITY; SURVIVAL
OF RIGHTS; INSURANCE; SUBROGATION. 
 (a) The rights of
indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s certificate of
incorporation, the Company’s bylaws, any agreement, a vote of stockholders, a resolution of directors or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee
under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision, permits
greater indemnification or advancement of Expenses than would be afforded currently under the Company’s bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so
afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or
hereafter existing at law, in equity or otherwise. The assertion or employment of any right or remedy hereunder or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. 

(b) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers,
trustees, partners, managing members, fiduciaries, employees or agents of the Company or of any other Enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or
their terms to the maximum extent of the coverage available for any such director, trustee, partner, managing member, fiduciary, officer, employee or agent under such policy or policies. If, at the time the Company receives notice from any source of
a Proceeding as to which Indemnitee is a party or a participant (as a witness or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance
with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance
with the terms of such policies. 
 (c) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring
suit to enforce such rights. 
 (d) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise. 

(e) The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the
Company as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other Enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such
Enterprise. 
 15. DURATION OF AGREEMENT. This Agreement shall continue
until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company or as a director, officer, trustee, partner, managing member, fiduciary, employee
or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which Indemnitee served at the request of the Company; or (b) one (1) year after the final

  

 50 

 
termination of any Proceeding (including any rights of appeal thereto) then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of
any Proceeding commenced by Indemnitee pursuant to Section 13 of this Agreement relating thereto (including any rights of appeal of any Section 13 Proceeding). 
 16. SEVERABILITY. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality
and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid,
illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby. 

 

	17.	ENFORCEMENT AND BINDING EFFECT. 

(a) The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in
order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company. 

(b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes
all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof. 
 (c) The indemnification and advancement of expenses provided by or granted pursuant to this Agreement shall apply to Indemnitee’s service as an officer, director or key employee of the Company prior
to the date of this Agreement. 
 (d) The indemnification and advancement of expenses provided by or granted pursuant to this
Agreement shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person. 

18. MODIFICATION AND WAIVER. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute
a continuing waiver. 
 19. NOTICE BY INDEMNITEE. Indemnitee agrees promptly
to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses
covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise. 

20. NOTICES. All notices, requests, demands and other communications under this Agreement shall be in writing and
shall be deemed to have been duly given (a) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed or (b) if 
 mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed: 

 

 51 

 (a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or
such other address as Indemnitee shall provide in writing to the Company. 
  

	(b)	If to the Company to: 

 Zogenix,
Inc. 
 11682 El Camino Real, Suite 320 

San Diego, California 92130 
 Attn: Secretary

 or to any other address as may have been furnished to Indemnitee in writing by the Company. 

21. CONTRIBUTION. To the fullest extent permissible under applicable law, if the indemnification provided for in
this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to
be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to
reflect: (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving rise to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers,
employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s). 
 22. APPLICABLE
LAW AND CONSENT TO JURISDICTION. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of
the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 13(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally
(i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state or
federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this
Agreement, (iii) appoint, to the extent such party is not a resident of the State of Delaware, irrevocably Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808, as its agent in the State of Delaware as such
party’s agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware, (iv) waive any
objection to the laying of venue of any such action or proceeding in the Delaware Court and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper
or inconvenient forum. 
 23. IDENTICAL COUNTERPARTS. This Agreement may be executed in one
or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs
to be produced to evidence the existence of this Agreement. 
  

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 24. MISCELLANEOUS. Use of the masculine pronoun shall be deemed to
include usage of the feminine pronoun where appropriate. The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction
thereof. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK] 
  

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 IN WITNESS WHEREOF, the
parties have caused this INDEMNIFICATION AGREEMENT to be signed as of the day and year first above written. 
  

									
	 ZOGENIX, INC.,
 a Delaware corporation
	 		 		 	INDEMNITEE:
					
	By:	 	 /s/ Roger Hawley
	 		 		 	/s/ Jennifer D. Haldeman
	Name:	 	      Roger Hawley	 		 		 	 Jennifer D. Haldeman
	Title:	 	      Chief Executive Officer	 		 		 	

  

 54

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