Document:

Settlement and License Agreement by and among Somaxon Pharmaceuticals

 EXHIBIT 10.1 
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT. 
 SETTLEMENT AND LICENSE AGREEMENT 

This SETTLEMENT AND LICENSE AGREEMENT (this “Agreement”) is hereby entered into on July 17, 2012 (the “Execution
Date”) by and among Somaxon Pharmaceuticals, Inc., a corporation organized and existing under the laws of the State of Delaware (“Somaxon”), ProCom One, Inc., a corporation organized and existing under the laws of the State
of Texas (“ProCom”), (Somaxon and ProCom are collectively “Plaintiffs”), Mylan Inc. a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, and Mylan Pharmaceuticals Inc., a
corporation organized and existing under the laws of the State of West Virginia (Mylan Inc. and Mylan Pharmaceuticals Inc. are collectively “Mylan” or “Defendants”; each Plaintiff and each Defendant is a
“Party”). 
 RECITALS 

WHEREAS, Somaxon is the holder of New Drug Application (“NDA”) No. 22-036, which was approved by the United
States Food and Drug Administration (“FDA”) for the manufacture and sale of (a) a 3 mg doxepin hydrochloride product, and (b) a 6 mg doxepin hydrochloride product, in each of cases (a)-(b), that is marketed and sold by
Somaxon in the Licensed Territory (as defined below), under the trade name SILENOR®; 

WHEREAS, the formulation and dosing of the Silenor Products (as defined below) are covered by certain claims of the Licensed Patents (as defined below);

 WHEREAS, ProCom owns one of the Licensed Patents and Somaxon is the exclusive licensee of that Licensed Patent in the Licensed Territory;

 WHEREAS, the Licensed Patents are listed in the Orange Book (as defined below) for each of the strengths of the Silenor Products approved by
the FDA under the Somaxon NDA (as defined below); 
 WHEREAS, pursuant to 21 U.S.C. § 355(j), Mylan Pharmaceuticals Inc. filed Abbreviated
New Drug Application (“ANDA”) No. 202-337 with respect to a 3 mg doxepin hydrochloride product and a 6 mg doxepin hydrochloride product, and such ANDA is currently pending before the FDA; 

WHEREAS, Plaintiffs initiated an action against Mylan in the United States District Court for the District of Delaware (the “District
Court”) under 35 U.S.C. § 271(e) alleging infringement of the Licensed Patents, in a case captioned Somaxon Pharmaceuticals, Inc. and ProCom One, Inc. v. Actavis Elizabeth et al., Civil Action No. 1:10-cv-01100-RGA/MPT (D.
Del.) (the “Litigation”); 

 WHEREAS, Mylan has asserted certain affirmative defenses and counterclaims in the Litigation; 

WHEREAS, the Parties have agreed to resolve their disputes relating to the Litigation through this Agreement, in order to avoid further litigation and
the attendant risk, associated fees, costs and expenses thereof; 
 WHEREAS, as a result of this Agreement, there will be an opportunity for
pro-competitive generic competition for doxepin hydrochloride products for human use, which competition otherwise may not have existed until the expiration of the Licensed Patents and any applicable period of exclusivity; 

WHEREAS, contemporaneously with the execution of this Agreement, the Parties have entered into a Manufacturing Services Agreement, pursuant to which
Mylan will supply the Silenor Products to Somaxon (the “Supply Agreement”) in accordance with purchase orders issued by Somaxon; and 
 WHEREAS, pursuant to this Agreement, Mylan shall be granted (a) rights to commercialize an authorized generic version of the Silenor Product and to manufacture such authorized generic, (b) to
manufacture the Silenor Product in accordance with the Supply Agreement and (c) to commercialize a generic version of the Silenor Product pursuant to Mylan Pharmaceutical Inc.’s ANDA; 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the sufficiency and receipt of which are hereby acknowledged, the Parties
hereto, intending to be legally bound hereby, agree as follows: 
 1. DEFINITIONS 

1.1 “Affiliate” means, with respect to an entity, any other entity that controls, is controlled by, or is under common
control with such first entity, where “control” means (a) in the case of corporate entities, direct or indirect ownership of more than fifty percent (50%) of the stock or shares having the right to vote for the election of
directors, and (b) in the case of non-corporate entities, direct or indirect ownership of more than fifty percent (50%) of the equity interest with the power to direct the management and policies of such non-corporate entities. 

1.2 “AG License Period” means the period of time commencing on the License Date and ending upon the earlier of
(a) *** thereafter (the “AG License Initial Period”) unless extended by Mylan for one additional *** period (“AG License Renewal Period”) by providing Plaintiffs at least *** prior written notice before the end
of the AG License Initial Period and (b) the Trigger Date. 
 1.3 “Authorized Generic Product” means a
Generic Product that is manufactured, used, sold, offered for sale or distributed pursuant to the Somaxon NDA, but that is not marketed under the Trademark. 
 1.4 “Business Day” means a day on which the banks in the State of Delaware are permitted to be open. 

  

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respect to the omitted portions. 

 1.5 “Commercially Reasonable Efforts” means with respect to the efforts to
be expended by a Party with respect to any objective, such reasonable, diligent and good faith efforts and resources, consistent with applicable laws, as such Party would normally use to accomplish a similar objective under similar circumstances.
For the avoidance of doubt, the efforts of Somaxon’s commercialization partner(s) or sublicensee(s) for the Silenor Product shall be considered Somaxon’s efforts for the purpose of this definition. 

1.6 “Cost of Goods Sold” or “COGS” means the direct costs, which are reasonable and necessary, incurred in
manufacturing the Mylan Authorized Generic Product for sale in the Licensed Territory, and indirect costs that can be allocable to the Mylan Authorized Generic Product, in accordance with GAAP. For the avoidance of doubt, COGS as calculated for the
purposes of this Agreement shall be consistent with COGS as calculated for and included in Mylan’s financial statements contained in its periodic reports with the U.S. Securities and Exchange Commission. 

1.7 “Covenant Patents” means any United States patent, other than the Licensed Patents, owned by, licensed to or
otherwise controlled by Plaintiffs or any of their Affiliates that, but for a license, would be infringed by the use, manufacture, sale, offer for sale, or importation of any Mylan Generic Product or any Mylan Authorized Generic Product. 

1.8 “Ex-US Covenant Patents” means any *** patent owned by, licensed to or otherwise controlled by Plaintiffs or any of
their Affiliates that, but for a license, would be infringed by the use or manufacture of any Mylan Generic Product or any Mylan Authorized Generic Product. With the consent of Plaintiffs (such consent not to be unreasonably withheld or delayed),
Ex-US Covenant Patents shall include other ex-US countries and patents identified by Mylan in writing to Plaintiffs, in the event Mylan intends to conduct manufacturing activities in other ex-US countries. 

1.9 “Final Decision” means a decision of a court from which no further appeal has been or can be taken, excluding any
petition for a writ of certiorari or other proceedings before the United States Supreme Court. 
 1.10 “GAAP”
means generally accepted accounting principles as applied in the United States and consistent with general industry practice. 

1.11 “Generic Equivalent” means, on a dosage strength-by-strength basis, a pharmaceutical doxepin hydrochloride product
that is AB-rated to the equivalent dosage strength Silenor Product and has received FDA approval for marketing in the Licensed Territory pursuant to an ANDA as a generic equivalent to such Silenor Product and referencing the Silenor NDA. 

1.12 “Generic Product” means each of the following: (a) a 3 mg doxepin hydrochloride product, and (b) a 6 mg
doxepin hydrochloride product, in each of cases (a)-(b), that is an AB-rated generic version of the corresponding Silenor Product. 
 1.13 “Gross Margin” means, on a dosage strength-by-dosage strength basis with respect to the Mylan Authorized Generic Product in a quarterly period, the remainder, if any, that results
from subtracting from Net Sales in the Licensed Territory of such Mylan Authorized Generic Product the COGS applicable to such Net Sales under GAAP. 

  

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respect to the omitted portions. 

 1.14 “License Date” means, on a dosage strength-by-strength basis, the
earlier of: 
 (a) January 1, 2020; 
 (b) the date on which an equivalent dosage strength Generic Equivalent is first commercially sold in the Licensed Territory by a Third Party (other than (a) any Person acting in concert with or under
license from Mylan or its Affiliates or (b) any Person that is a transferee of any rights in, to or under the Mylan ANDA) pursuant to an ANDA referencing the Somaxon NDA, either (i) under a license or covenant not to sue granted to such
Third Party by Plaintiffs or their Affiliates; (ii) without authorization by Plaintiffs or their Affiliates; or (iii) because there is a Final Decision holding all of the asserted and adjudicated claims of the Licensed Patents invalid or
unenforceable or not infringed. 
 (c) the date that is *** after the end of any calendar quarter (the “Applicable
Quarter”) with respect to which (i) the U.S. total prescription volume for the equivalent dosage strength Silenor Product (as reported by IMS’ National Prescription Audit) (the “Quarterly TRx Volume”) in such calendar
quarter is at least *** lower than *** and (ii) the Quarterly TRx Volume in the immediately preceding calendar quarter (the “Trigger Quarter”) was at least *** lower than *** (with Mylan sending the relevant data to Plaintiffs,
subject to confirmation in writing by Plaintiffs, which confirmation shall be provided within seven (7) business days after receipt by Plaintiffs of such data from Mylan); provided that (A) in no event shall the License become effective
under this Section 1.14(c) any earlier than *** after the end of the calendar quarter ended ***, (B) if the Trigger Quarter is the fourth calendar quarter of any calendar year, then the first calendar quarter of the subsequent calendar
year shall be the Applicable Quarter for purposes of this Section 1.14(c), with the ***, and (C) if the Quarterly TRx Volume for the first quarter of any calendar year is at least *** lower than ***, then the first calendar quarter of such
calendar year shall be deemed to be a Trigger Quarter, the second calendar quarter of such calendar year shall be the Applicable Quarter (with the Quarterly TRX Volume for such quarter being compared to the ***), and the *** for such calendar year
shall be the Quarterly TRx Volume for such Applicable Quarter.
 ***. 
 ***. 
 Notwithstanding anything to the contrary contained herein, this clause (c) shall not
apply if such drop in TRx volume is due to events beyond Somaxon’s sole control (including but not limited to ***). During the 14 business-day period referenced above, Mylan and Somaxon will discuss in good faith the calculation of the
trigger percentages and the causes of the declines in TRx volume, including whether such causes were within Somaxon’s sole control. 

  

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respect to the omitted portions. 

 1.15 “Licensed Patents” means: 

(a) U.S. Patent No. 6,211,229 (“the ‘229 patent”), and 

(b) U.S. Patent No. 7,915,307 (“the ‘307 patent”); 
 together with all reissues, reexaminations, continuations, continuations-in-part, divisionals, and patent and regulatory extensions of any of the aforementioned patents. 

1.16 “Licensed Territory” means the United States of America, and its territories, districts and possessions, including
the Commonwealth of Puerto Rico. 
 1.17 “Mylan ANDA” means ***, or any other ANDA owned or controlled by Mylan
or its Affiliates, in each case directed to oral tablet prescription products containing as their sole active ingredient either 3 mg or 6 mg of doxepin hydrochloride, including all supplements and amendments thereto that are necessary to obtain
and/or maintain FDA approval. 
 1.18 “Mylan Authorized Generic Product” means an Authorized Generic Product
that is manufactured, used, sold, offered for sale or distributed by Mylan. 
 1.19 “Mylan Generic Product”
means any 3 mg and/or 6 mg oral tablet generic prescription product containing as its sole active ingredient doxepin hydrochloride, that is manufactured or marketed under the Mylan ANDA. In the event ***, Somaxon and Mylan shall reasonably and in
good faith negotiate a license to those product(s), under similar terms to those contained in this Agreement, expressly including the Admissions provided under Section 4 herein and the License and Related Rights provided under Section 5
herein. 
 1.20 “Mylan Manufacturing License Date” means the effective date of the Supply Agreement.

 1.21 “Net Sales” means, on a dosage strength-by-strength basis, the gross amounts invoiced on sales of any
Mylan Generic Product or Mylan Authorized Generic Product, as applicable, by Mylan or any of its Affiliates to a Third Party purchaser, less customary returns, allowances, rebates, chargebacks, and cash, volume and other customary discounts, to the
extent such returns, allowances, rebates, chargebacks, and cash, volume and other customary discounts are actually given, as well as sales, excise or similar taxes (excluding income taxes) directly related to the Mylan Generic Product or Mylan
Authorized Generic Product and included in the invoice to the Third Party purchaser, and in the case of any such returns, allowances, rebates, chargebacks, discounts or taxes, to the extent included within Net Sales of Mylan or its Affiliate in
accordance with GAAP. For the avoidance of doubt, Net Sales as calculated for the purposes of this Agreement shall be consistent with Net Sales as calculated for and included in Mylan’s financial statements contained in its periodic reports
with the U.S. Securities and Exchange Commission. 
 1.22 “Orange Book” means the publication titled
“Approved Drug Products with Therapeutic Equivalence Evaluations,” in electronic or hard copy form, maintained by the FDA, including all supplements thereto. 

  

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respect to the omitted portions. 

 1.23 “Person” means any individual, partnership, association, corporation,
limited liability company, trust, governmental authority or other legal person or entity. 
 1.24
“Pre-Marketing” means engaging in outreach to potential purchasers to inform them that Mylan or its respective Affiliates will be offering to sell and selling the Mylan Authorized Generic Product and/or Mylan Generic Products for
distribution in the Licensed Territory on or after the License Date (including, for example, ***. 
 1.25 “Royalty
Period” means, on a dosage strength-by-strength basis the period beginning on the applicable License Date and ending when every claim in the Licensed Patents has expired or been held unenforceable or invalid pursuant to a Final Decision.

 1.26 “Silenor Product” means 3 mg or 6 mg doxepin hydrochloride tablets marketed and sold pursuant to the
Somaxon NDA under the Trademark. 
 1.27 “Somaxon NDA” means NDA No. 22-036, including all supplements and
amendments thereto. 
 1.28 “Third Party” means a Person other than the Parties or any of their Affiliates.

 1.29 “Trademark” means the trademark SILENOR®. 
 1.30 “Trigger Date” means ***after the date that Mylan notifies Somaxon in writing that it desires to (a) terminate its licenses under Sections 5.1(a), 5.1(b), 5.2(a) and 5.2(b) with
respect to the Mylan Authorized Generic Product and (b) receive the licenses granted under Sections 5.1(c) and 5.2(c) and (d). 
 2.
DISMISSAL AND RELATED FILINGS 
 2.1 Termination of Litigation. 

(a) On or before the third (3rd) Business Day after the Execution Date, Plaintiffs and Defendants shall file with the District Court a stipulated
consent judgment and joint motion to dismiss the Litigation, substantially in the form attached as Exhibit A (the “Consent Judgment and Dismissal”), with each Party to bear its own fees and costs. 

(b) The date on which the Consent Judgment and Dismissal is entered by the District Court shall be the “Effective
Date”. The provisions of Sections 1, 2, 8, 9, and 12 of this Agreement shall become effective upon the Execution Date, while the remaining provisions of this Agreement shall become effective upon the Effective Date. 

  

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 (c) On the Execution Date, and ***, Plaintiffs shall make *** payments of ***, by wire
transfer to an account designated by Defendants, in recognition of the savings inuring to Plaintiffs in terms of the avoidance of costs, expenditure of time and resources, and disruption and burden associated with prosecuting the Litigation;
provided that such payments will cease once Somaxon has paid to Mylan a total of *** under this Section 2.1(c). Except as set forth above, Plaintiffs and Defendants each will bear its own costs and legal fees associated with the Litigation and
the negotiation and preparation of this Agreement. 
 2.2 FTC/DOJ Filings. 

(a) Within ten (10) days following the Execution Date, the Parties shall file with the U.S. Federal Trade Commission, Bureau of
Competition (“FTC”) and the Antitrust Division of the U.S. Department of Justice (“DOJ”) this Agreement and any notifications to be filed pursuant to Title XI of the Medicare Prescription Drug Improvement and
Modernization Act (Subtitle B–Federal Trade Commission Review) and any other applicable law. The Parties shall make additional timely filings as required by law. 
 (b) The Parties shall use all Commercially Reasonable Efforts to coordinate the foregoing filings and any responses thereto, to make such filings promptly and in good faith and to respond promptly and in
good faith to any requests for additional information made by either of such agencies, and to coordinate any necessary or desirable joint presentations. Each Party reserves the right to communicate with the FTC or DOJ regarding such filings as it
believes appropriate. Each Party shall keep the other Party reasonably informed of such communications and unless required by applicable law shall not disclose any confidential information of the other Party without such other Party’s consent,
which will not be unreasonably withheld or delayed. 
 3. RELEASE OF CLAIMS 

3.1 In settlement of the Litigation, and in consideration of the releases, representations, warranties and covenants contained in this
Agreement, as of the Effective Date, each Party and its respective parents, subsidiaries and Affiliates, on behalf of themselves and their respective predecessors, successors, administrators, attorneys, assigns, agents, officers, employees,
shareholders, directors, representatives and all other Persons claiming by, through and under them, do fully, finally and forever release, relinquish, acquit and discharge the other Party and each of its respective parents, subsidiaries, Affiliates,
attorneys, agents, shareholders, directors, officers, employees, representatives, customers, importers, manufacturers, distributors, suppliers, marketing partners, insurers, predecessors, successors and assigns, on behalf of themselves and their
respective predecessors, successors, administrators, attorneys, assigns, agents, officers, employees, shareholders, directors, representatives (collectively, the “Releasees”), from any and all claims, demands, damages, liabilities,
obligations, and causes of action accruing prior to the Effective Date (including costs, expenses and attorneys’ fees), that were or could have been filed in the Litigation, whether known or unknown, to the extent arising out of, related to, or
in connection with: (a) the Litigation, (b) the Mylan ANDA or its filing, or (c) the Mylan Generic Products. 

  

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 3.2 Each Party hereby expressly waives any and all provisions, rights and benefits conferred
by §1542 of the California Civil Code, or by any law of the United States or principle of common law that is similar, comparable or equivalent to §1542 of the California Civil Code, with respect to the matters released in this
Section 3. §1542 of the California Civil Code 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 TO HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 

3.3 Each Party represents, warrants and covenants that it had not, prior to the Effective Date, assigned or transferred, and will not
assign or otherwise transfer, to any Person any matters released by such Party as set forth in this Section 3 (except that the foregoing shall not prohibit an assignment of this Agreement pursuant to Section 12.3), and such Party agrees to
indemnify and hold harmless the other Party and its Releasees from and against all such released matters arising from any such alleged or actual assignment or transfer. 
 3.4 For the sake of clarity, this Section 3 shall not prevent or impair the right of a Party to bring a proceeding in court or any other forum for a breach of this Agreement or the Supply Agreement,
or any representation, warranty or covenant herein or therein. 
 4. ADMISSIONS 

4.1 Mylan, on behalf of itself and its Affiliates, acknowledges and agrees that all asserted claims of the Licensed Patents: ***. For the
avoidance of doubt, nothing herein applies to any future Mylan product or ANDA ***. 
 4.2 Mylan, on behalf of itself and its
Affiliates, and in respect to *** agrees not to ***. Mylan also agrees, on behalf of itself and its Affiliates, and in respect to ***. Nothing herein will prevent Mylan and its Affiliates from responding to subpoenas from courts or administrative
agencies. In addition, for the avoidance of doubt, nothing herein shall preclude Mylan from ***. Should Mylan enter into any agreement with a Third Party to ***, such agreement shall ***. 

  

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 5. LICENSE AND RELATED RIGHTS 

5.1 Mylan Commercialization Licenses. Plaintiff hereby grants to Mylan: 

(a) during the AG License Initial Period, a semi-exclusive, non-transferable (except in connection with an assignment of this Agreement
pursuant to Section 12.3), royalty-bearing and non-sublicensable license under the Licensed Patents, to offer for sale and sell the Mylan Authorized Generic Product in the Licensed Territory to Mylan’s distributors and customers in the
Licensed Territory for ultimate resale by such distributors and customers to consumers for use in the Licensed Territory; ***. 

(b) during the AG License Renewal Period, a non-exclusive, non-transferable (except in connection with an assignment of this Agreement
pursuant to Section 12.3), royalty-bearing and non-sublicensable license under the Licensed Patents, to offer for sale and sell the Mylan Authorized Generic Product in the Licensed Territory to Mylan’s distributors and customers in the
Licensed Territory for ultimate resale by such distributors and customers to consumers for use in the Licensed Territory; and 

(c) commencing on the Trigger Date, a non-exclusive, non-transferable (except in connection with an assignment of this Agreement
pursuant to Section 12.3), royalty-bearing and non-sublicensable license under the Licensed Patents, to offer for sale and sell the Mylan Generic Product in the Licensed Territory to Mylan’s distributors and customers in the Licensed
Territory for ultimate resale by such distributors and customers to consumers for use in the Licensed Territory. 
 5.2 Mylan
Manufacturing and Pre-Marketing Licenses. Plaintiff hereby grants to Mylan: 
 (a) Beginning *** before, and during the AG
License Period, a non-exclusive, non-transferable (except in connection with an assignment of this Agreement pursuant to Section 12.3), royalty-bearing and non-sublicensable license under the Licensed Patents, to make and have made the Mylan
Authorized Generic Product in the Licensed Territory for the sole purpose of Mylan offering for sale, marketing and selling Mylan Authorized Generic Products in the Licensed Territory in accordance with the license grants set forth in Sections
5.1(a) and (b); 
 (b) Beginning *** before the AG License Period, a non-exclusive, non-transferable (except in connection with
an assignment of this Agreement pursuant to Section 12.3), royalty-bearing and non-sublicensable license under the Licensed Patents, to engage in Pre-Marketing of the Mylan Authorized Generic Product in the Licensed Territory for the sole
purpose of Mylan offering for sale, marketing and selling Mylan Authorized Generic Products in the Licensed Territory in accordance with the license grants set forth in Sections 5.1(a) and (b); 

(c) Commencing *** before the expiration of the AG License Period (and consistent with Section 5.4(c)), a non-exclusive,
non-transferable (except in connection with an assignment of this Agreement pursuant to Section 12.3), royalty-bearing and non-sublicensable license under the Licensed Patents, to make and have made the Mylan Generic Product in the

  

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Licensed Territory for the sole purpose of Mylan offering for sale, marketing and selling Mylan Generic Products in the Licensed Territory in accordance with the license grant set forth in
Section 5.1(c); 
 (d) Beginning as of the dates specified in Section 5.4(c) with respect to each activity specified
therein, a non-exclusive, non-transferable (except in connection with an assignment of this Agreement pursuant to Section 12.3), royalty-bearing and non-sublicensable license under the Licensed Patents, to engage in Pre-Marketing of the Mylan
Generic Product in the Licensed Territory for the sole purpose of Mylan offering for sale, marketing and selling Mylan Generic Products in the Licensed Territory in accordance with the license grants set forth in Section 5.1(c); 

(e) commencing on the Mylan Manufacturing License Date and ending upon the expiration or earlier termination of the Supply Agreement, a
non-exclusive, non-transferable (except in connection with an assignment of this Agreement pursuant to Section 12.3), royalty-bearing and non-sublicensable license under the Licensed Patents, to make and have made the Silenor Products in the
Licensed Territory for the sole purpose of supplying Silenor Products to Somaxon and its Affiliates in accordance with the Supply Agreement. 
 5.3 Covenants to Mylan. 
 (a) In connection with making, having made,
using, selling, offering to sell or importing the Mylan Generic Products in or for the Licensed Territory in accordance with this Agreement, Plaintiffs (and their respective Affiliates) will not sue, nor authorize, consent, join, support or
encourage any Third Party to sue, Mylan (or its Affiliates), or its (or their) customers, suppliers, manufacturers and marketing partners and distributors for infringement of the Covenant Patents. ***. 

(b) In connection with making, using, selling, offering to sell or importing the Mylan Authorized Generic Products in the Licensed
Territory in accordance with this Agreement, Plaintiffs (and their respective Affiliates) will not sue, nor authorize, consent, join, support or encourage any Third Party to sue, Mylan (or its Affiliates), or its (or their) customers, suppliers, and
distributors for infringement of the Covenant Patents. ***. 
 (c) In connection with the use or manufacture of any Mylan
Generic Product or any Mylan Authorized Generic Product for the sole purpose of Mylan offering for sale, marketing and selling Mylan Authorized Generic Products or Mylan Generic Products in the Licensed Territory in accordance with the license
grants set forth herein, Plaintiffs (and their respective Affiliates) will not sue, nor authorize, consent, join, support or encourage any Third Party to sue, Mylan (or its Affiliates), or its (or their) customers, suppliers, manufacturers and
marketing partners and distributors for infringement of the ex-US Covenant Patents. 
 (d) Plaintiffs shall not, and shall not
cause or encourage any Affiliate or Third Party to, initiate or otherwise undertake any activity against the Mylan ANDA or the Mylan Generic Products to: (i) ***, or (ii) ***, unless Plaintiffs undertake such activity defined in subparts
(i) or (ii) for health, safety or efficacy reasons, pursuant to court order, or as otherwise requested by FDA or required by law. Mylan agrees that ***. 

  

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 (e) Plaintiffs shall not, and shall not cause or encourage any Affiliate or Third Party to:
***, unless Plaintiffs undertake such activity for health, safety or efficacy reasons, pursuant to court order, or as otherwise requested by FDA or required by law. 
 (f) Plaintiffs shall provide Mylan with written notice of the ***. Plaintiffs shall provide such written notice to Mylan within *** of ***. 

(g) Plaintiffs agree to ***. At Mylan’s request, Plaintiffs shall ***. 

5.4 Covenant to Plaintiffs. 
 (a) In return for Plaintiff’s grant of the license and other rights and covenants in Sections 5.1, 5.2 and 5.3, Mylan, on behalf of itself and its Affiliates, agrees not to***, except as permitted
herein. 
 (b) Mylan shall maintain the Mylan ANDA throughout the term of this Agreement. Mylan shall not ***. 

(c) During the AG License Period Mylan shall not engage in the marketing or selling of Mylan Generic Products. Notwithstanding the
foregoing, Mylan may engage in Pre-Marketing during the AG License Period, provided that: (i) Mylan may not *** more than *** in advance of the expiration of the AG License Period; (ii) Mylan may not *** more than *** in advance of the
expiration of the AG License Period; and (iii) Mylan may not *** in the Licensed Territory more than *** in advance of the expiration of the AG License Period. 
 (d) Section 5.4(a) notwithstanding, in the event all the asserted claims of the Licensed Patents have expired or have been held unenforceable or invalid pursuant to a Final Decision, nothing in this
Agreement shall prevent Mylan from immediately launching the Mylan Generic Products. 
 5.5 Rights and Obligations of
Affiliates. Notwithstanding the non-sublicensable nature of the licenses granted under Section 5.1 and 5.2, Mylan may sublicense any of such licenses to one or more of its Affiliates, in each case upon the prior written consent of Somaxon,
such consent not to be unreasonably withheld or delayed, provided, however, that Mylan shall remain responsible for the performance by its Affiliates and shall cause its Affiliates to comply with the provisions of this Agreement in connection with
such performance. Mylan hereby expressly waives any requirement that Somaxon exhaust any right, power or remedy, or proceed against an Affiliate, for any obligation or performance hereunder prior to proceeding directly against Mylan. 

5.6 Acknowledgement. Mylan acknowledges that, notwithstanding the definition of the License Date, Mylan may not be able to legally
exploit the license and other rights granted pursuant to Sections 5.1 and 5.2 with respect to the Mylan Generic Products for various reasons, including lack of regulatory approval for the Mylan ANDA by the FDA. 

  

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 5.7 Retained Rights. Except for the license and other rights granted pursuant to this
Agreement, all other rights to any intellectual property or regulatory exclusivities or approvals held by Plaintiffs or any of their Affiliates are hereby retained by Plaintiff and their Affiliates. For the sake of clarity, this Agreement does not
grant to Mylan or its Affiliates any right to use any corporate names, logos or trademarks (including the Trademark) of any Plaintiff or any of their Affiliates inside or outside the Licensed Territory. 

6. ROYALTY PAYMENTS 
 6.1
With respect to each calendar quarter (or part thereof) during the Royalty Period, on a dosage strength-by-strength basis, Mylan shall pay Plaintiff a royalty of *** with respect to sales of Mylan Authorized Generic Products made during such
calendar quarter. Such payments shall be made within thirty (30) days after the end of each calendar quarter of the Royalty Period. 
 6.2 With respect to each calendar quarter (or part thereof) during the Royalty Period, on a dosage strength-by-strength basis, Mylan shall pay Plaintiff a royalty of *** made during such calendar quarter.
Such payments shall be made within thirty (30) days after the end of each calendar quarter of the Royalty Period. This royalty obligation shall expire on ***. 
 6.3 Within thirty (30) days after the end of each calendar quarter for which royalties are payable by Mylan under Section 6.1, Mylan shall submit to Plaintiff a report, providing in reasonable
detail an accounting of all Net Sales and Gross Margin by Mylan and its Affiliates, including in each case, an accounting of all unit sales of the Mylan Generic Products and Mylan Authorized Generic Products, as applicable, a calculation of the
deductions from gross invoice price to reach Net Sales, the calculation of the applicable royalties due under Section 6.1 and a detailed explanation and calculation of any Withholding Taxes levied pursuant to Section 7.3. Mylan shall, at
the time Mylan submits the report, pay to Plaintiff all amounts due under Section 6.1, as indicated in the applicable report. 
 7.
PAYMENT TERMS 
 7.1 Any payments due pursuant to Sections 6.1 and 6.2 shall be made by wire transfer to an account specified
by Plaintiffs in writing. 
 7.2 Any amounts not paid when due under this Agreement shall be subject to interest at the rate of
the lesser of ***. 
 7.3 Mylan shall be responsible for, and may withhold from payments made to Plaintiffs under this
Agreement, any taxes required to be withheld by Mylan under applicable law. Accordingly, if any such taxes are levied on such payments due hereunder (“Withholding Taxes”), Mylan shall (a) deduct the Withholding Taxes from the
payment amount, (b) pay all applicable Withholding Taxes to the proper taxing authority, and (c) send evidence of the obligation together with proof of tax payment to Plaintiffs within *** following such tax payment. 

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

 7.4 Mylan shall maintain its, and its Affiliates’, distributors’, marketing
partners’ and agents’ books and records with respect to the Net Sales and Gross Margin for a period of *** after the calendar year to which they relate. Plaintiffs shall have the right to audit such books and records on reasonable advance
notice to Mylan by an authorized independent auditor selected by Plaintiffs (except one as to which Mylan has a reasonable objection), subject to a non-use and nondisclosure agreement reasonably acceptable to Mylan, no more than once per calendar
year. If Mylan has underpaid any amounts hereunder, Mylan shall pay the relevant amount within *** after receipt of the auditor’s report, along with interest as described in Section 7.2. The audit shall be at Plaintiffs’ cost and
expense, unless the underpayment exceeds *** of the amount owed with respect to any calendar year, in which case Mylan shall promptly reimburse such costs and expenses. 
 8. CONFIDENTIALITY 
 8.1 Each of the Parties shall keep the terms of the
Agreement and the underlying settlement confidential, using at least the level of care it uses for its own proprietary information (but no less than reasonable care), and shall not disclose to any Third Party (other than (a) such Party’s
financial advisors, legal advisors, and insurers, and (b) parties and their counsel in litigation or anticipated litigation with Plaintiffs over any of the Licensed Patents solely for purposes of disclosing, in connection with settlement
negotiations, those provisions herein addressing the relevant License Date, in each such case subject to appropriate confidentiality protections), except as provided below or as required by law (including disclosures required by the FTC and/or the
DOJ). 
 8.2 No Party shall issue or make any public announcement, press release, or other public disclosure regarding this
Agreement, the Supply Agreement or the subject matter or terms of the settlement, except as required by law or the rules of a stock exchange on which the securities of the disclosing Party are listed. In the event a Party is, in the opinion of its
counsel, required to make a public disclosure by law or the rules of a stock exchange on which its securities are listed, such Party shall, if permitted by law, submit the proposed disclosure in writing to the other Party a reasonable period prior
to disclosure, and such Party shall provide any such comments promptly, but in any case within *** after its receipt of such disclosure. Notwithstanding this Section 8.2, the Parties hereby acknowledge and agree that (a) either Party may
issue their respective press release attached as Exhibit B, and (b) each Party shall have the right to disclose this Agreement, the Supply Agreement or the subject matter or terms of the settlement to its attorneys, accountants and other
professional advisors who have a need to know such information and are under an obligation to keep such information confidential. 
 8.3 Notwithstanding Sections 8.1 and 8.2, Mylan may communicate with the FDA on a confidential basis prior to the applicable License Date concerning the approval of the Mylan ANDA, and the licenses and
waivers provided for herein. 

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

 8.4 Mylan acknowledges that (a) Plaintiffs are currently engaged in ANDA-related patent
litigations with various Third Parties concerning the Licensed Patents and may become engaged in future patent litigation concerning infringement of the Licensed Patents and (b) such Third Parties may request a copy of this Agreement in
connection with discovery. 
 9. REPRESENTATIONS AND WARRANTIES 
 9.1 Mutual Representations and Warranties. Each Party represents and warrants to the other Party that, as of the Execution Date: 

(a) it has the corporate power and authority to enter into this Agreement and to perform its obligations and bind its Affiliates to
perform their obligations hereunder, and that the person(s) executing this Agreement on behalf of such Party are authorized to do so; 
 (b) the execution and delivery of this Agreement and the performance of the transactions contemplated hereunder have been duly authorized by all necessary corporate actions of such Party and its
Affiliates; 
 (c) this Agreement has been duly executed and delivered by it and is a binding obligation of it, enforceable
against it and its Affiliates in accordance with its terms; and 
 (d) the execution and delivery of this Agreement and the
performance by such Party or its Affiliates of any of its obligations hereunder do not and will not conflict with (i) any judgment of any court or governmental body applicable to such Party or its Affiliates or its respective properties,
(ii) any other agreements to which it or its Affiliates may be a party, or (iii) to such Party’s knowledge, any statute, decree, order, rule or regulation of any court or governmental agency or body applicable to such Party, its
Affiliates or their respective properties. 
 9.2 Additional Plaintiff Representations and Warranties. 

(a) Plaintiffs represent and warrant to Mylan that they have the authority to grant rights under the Licensed Patents upon the terms set
forth in this Agreement. 
 (b) Plaintiffs represent and warrant that, as of the Execution Date, they have not ***. Plaintiffs
further represent and warrant that in the event that Plaintiffs ***, then Plaintiffs shall notify Mylan of ***, and shall ***; provided that if ***. The parties agree that the *** referenced in the preceding two sentences refers to ***. 

9.3 Disclaimer of Warranties. Except for those warranties set forth in Sections 3.3, 9.1 and 9.2, no Party makes any warranty,
written, oral, express or implied, with respect to this Agreement. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT HEREBY ARE DISCLAIMED BY BOTH
PARTIES. 

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

 10. INDEMNITIES. 
 10.1 Indemnity by Defendants. Defendants will, jointly and severally, indemnify and hold harmless Plaintiffs, their respective Affiliates and their or their respective Affiliates’ officers,
directors, employees and agents from and against any loss, damage, liability or expense in connection with any and all actions, suits, claims, demands or prosecutions that may be brought or instituted against Plaintiffs or such other indemnitees by
Third Parties (including governmental authorities) to the extent based on or relating to (a) any breach by a Defendant of this Agreement; or (b) the manufacture, sale or offering to sell of any Mylan Generic Product, including any claim
for personal injury, property damage, compensatory damages or punitive damages, with the exception of any failure to warn claims based on or relating to the label, to the extent that the label for the Mylan Generic Product is required by applicable
law to match the label for the Silenor Product. 
 10.2 Indemnity by Plaintiffs. Plaintiffs will, jointly and severally,
indemnify and hold harmless Defendants, their respective Affiliates and their or their respective Affiliates’ officers, directors, employees and agents from and against any loss, damage, liability or expense in connection with any and all
actions, suits, claims, demands, or prosecutions that may be brought or instituted against Defendants or such other indemnitees by Third Parties (including governmental authorities) to the extent based on or relating to (a) any breach by a
Plaintiff of this Agreement; or (b) the manufacture (other than the manufacture by Mylan under the Supply Agreement or the manufacture by Mylan or any of its Affiliates (or its or their subcontractors) of the Mylan Authorized Generic Product),
sale or offering to sell of the Silenor Product or any Authorized Generic Product other than the Mylan Authorized Generic Product, including any claim for personal injury, property damage, compensatory damages or punitive damages. 

10.3 Indemnification Procedures. A Person seeking indemnification under this Agreement shall provide prompt written notice to the
indemnifying Party (and, in any event, within five (5) Business Days) of the assertion of any claim against such Party as to which indemnity is to be requested hereunder; provided, however, that any delay or failure to provide
such notice shall not relieve the indemnifying Party of its indemnity obligations unless, and solely to the extent that, such delay or failure to notify materially prejudices the indemnifying Party’s ability to defend such claims. The
indemnifying Party shall have sole control over, and shall assume all expenses with respect to, the defense, settlement, adjustment or compromise of any claim as to which this Section 10 requires it to indemnify the other, provided that:
(a) the indemnified Person may, if it so desires, employ counsel at its own expense to participate and assist in the handling of such claim; and (b) the indemnifying Party shall obtain the prior written approval of the indemnified Person,
which shall not be unreasonably withheld, before entering into any settlement, adjustment or compromise of such claim or ceasing to defend against such claim if doing so would: (i) impose an injunction and/or any financial obligations upon the
indemnified Person; or (ii) result in an admission of wrongdoing by the indemnified Person. 

 11. BREACH OF THE AGREEMENT 
 11.1 Each Party acknowledges and agrees that the restrictions and other terms and conditions set forth in this Agreement regarding the manufacture, having manufactured, use, sale, offer for sale or
importation of Mylan Generic Products and Mylan Authorized Generic Products by Mylan are reasonable and necessary to protect the respective legitimate interests of Plaintiffs, and that, in the event of a material breach or threatened material breach
of those restrictions or other terms or conditions of this Agreement by any Defendant, any Plaintiff shall have the right to seek from any court of competent jurisdiction injunctive relief, whether temporary, preliminary, or permanent, or specific
performance, which rights shall be cumulative and in addition to any other rights or remedies to which such Plaintiff may be entitled in law or equity. 
 11.2 Nothing in this Agreement is intended, or shall be construed, to limit the Parties’ rights to equitable relief or any other remedy for a breach of any provision of this Agreement. 

12. GENERAL PROVISIONS 

12.1 Entire Agreement. This Agreement (which includes Exhibits A and B attached hereto) and the Supply Agreement constitute
the final, complete and exclusive statement of the terms of the agreement among the Parties pertaining to the subject matter covered herein and therein and the settlement of the Litigation between the Parties and supersedes all prior and
contemporaneous understandings or agreements of the Parties. No Party has been induced to enter into this Agreement by, nor is any Party relying on, any representation or warranty outside those expressly set forth in this Agreement 

12.2 Governing Law and Dispute Resolution. This Agreement shall be governed, interpreted and construed in accordance with the laws
of the State of Delaware, without giving effect to choice of law principles. Any judicial proceedings related to disputes arising from or in connection with this Agreement shall be initiated exclusively in the District Court (or should there be no
subject matter jurisdiction, then in another court of competent jurisdiction in Delaware), which shall be deemed to be the appropriate forum to hear the dispute. 
 12.3 Assignment. No Party will assign this Agreement or any part hereof or any interest herein (whether by operation of law or otherwise) to any Person without the written approval of the other
Party; provided, however, that any Party may assign this Agreement without such consent *** (a) to any Affiliate of such assigning Party (for as long as such assignee remains an Affiliate of such Party); or (b) to any
successor entity in the case of its merger, consolidation or change in control, or a sale of all or substantially all of its assets related to this Agreement. No assignment will be valid unless the permitted assignee assumes all obligations of its
assignor under this Agreement. No assignment will relieve any assigning Party of responsibility for the performance of its obligations hereunder. Any purported assignment in violation of this Section 12.3 will be void. 

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

 12.4 Severability. Except as otherwise expressly provided herein, if any provision of
this Agreement or the application thereof will, to any extent, be held to be invalid or unenforceable, then (a) the remainder of this Agreement, or the application of such provision to circumstances other than those as to which it is held
invalid or unenforceable, will not be affected thereby and each provision of this Agreement will be valid and enforceable to the fullest extent permitted by applicable law, and (b) the Parties covenant and agree to renegotiate any such
provision in good faith in order to provide a reasonably acceptable alternative to such provision, it being the intent of the Parties that the basic purposes of this Agreement are to be effectuated. 

12.5 Independent Contractors. No Party shall be deemed to be an agent, joint venturer or partner of the other. 

12.6 Amendments. No amendment, modification or supplement of any provisions of this Agreement shall be valid or effective unless
made in writing and signed by a duly authorized officer of each Party. 
 12.7 Waiver. None of the provisions of this
Agreement will be considered waived by any Party unless such waiver is agreed to, in writing, by authorized agents of such Party. The failure of a Party to insist upon strict conformance to any of the terms and conditions hereof, or failure or delay
to exercise any rights provided herein or by law will not be deemed a waiver of any rights of any Party. 
 12.8 Counterparts
and Facsimile Signatures. This Agreement may be executed simultaneously in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures provided by facsimile
transmission or in AdobeTM Portable Document Format (PDF) sent by electronic mail shall be deemed to be original signatures. 
 12.9 Construction. 
 (a) This Agreement has been jointly negotiated and
drafted by the Parties through their respective counsel and no provision shall be construed or interpreted for or against any of the Parties on the basis that such provision, or any other provision, or the Agreement as a whole, was purportedly
drafted by a particular Party. 
 (b) The word “including” or any variation thereof means “including without
limitation” or any variation thereof and shall not be construed to limit any general statement which it follows to the specific or similar items or matters immediately following it. 

(c) The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement. 
 12.10 Inurement. This Agreement shall be binding upon and inure solely to the
benefit of the Parties, their successors and permitted assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person(s) (other than the Releasees under Section 3.1 and the indemnitees under
Sections 10.1 and 10.2) any rights, benefits, or remedies of any nature whatsoever under or by reason of this Agreement. 

 12.11 Notices. Any notice required or permitted to be given or sent under this
Agreement shall be in writing and hand delivered or sent by express delivery service or certified or registered mail, postage prepaid, to the receiving Party at the addresses indicated below. 

 

			
	If to Plaintiffs, to:	  	Somaxon Pharmaceuticals, Inc.
		  	10935 Vista Sorrento Parkway, Suite 250
		  	San Diego, CA 92130
		  	Attn: General Counsel
		
		  	And
		
		  	ProCom One, Inc.
		  	100 E. San Antonio, Ste 201
		  	San Marcos TX 78666
		  	Attn: President
	
	with copies to (which shall not constitute notice hereunder):
		
		  	Wilmer Cutler Pickering Hale and Dorr LLP
		  	60 State Street
		  	Boston, MA 02109
		  	Attn: David Manspeizer
		
	If to Mylan, to:	  	Mylan Inc.
		  	1500 Corporate Drive
		  	Suite 400
		  	Canonsburg, PA 15317
		  	Attn: General Counsel
		
		  	Mylan Pharmaceuticals Inc.
		  	781 Chestnut Ridge Road
		  	Morgantown, WV 26505
		  	Attn: Legal Department
	
	with copies to (which shall not constitute notice hereunder):
		
		  	Rakoczy Molino Mazzochi Siwik LLP
		  	6 West Hubbard Street, Suite 500
		  	Chicago, Illinois 60654
		  	Attn: William A. Rakoczy

 Any such notice shall be deemed to be effective on delivery, if delivery is confirmed by the delivery
service. A Party may change its address by giving the other Parties written notice, delivered in accordance with this Section 12.11. 
 SIGNATURES FOLLOW ON NEXT PAGE 

 IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed by its duly authorized
representative as of the day and year first above written. 
  

					
	SOMAXON PHARMACEUTICALS, INC.	 		 	MYLAN INC.
			
	By: /s/ Richard W. Pascoe	 		 	By: /s/ Ryan M. Debski
			
	Name: Richard W. Pascoe	 		 	Name: Ryan M. Debski
			
	Title: President and CEO	 		 	Title: VP & General Counsel, NA
			
	PROCOM ONE, INC.	 		 	MYLAN PHARMACEUTICALS INC.
			
	By: /s/ Terrell A. Cobb	 		 	By: /s/ Anthony R. Mauro
			
	Name: Terrell A. Cobb	 		 	Name: Anthony R. Mauro
			
	Title: President	 		 	Title: President NA & MPI

  
 4 

 EXHIBIT A 

IN THE UNITED STATES DISTRICT COURT 
 FOR THE DISTRICT OF DELAWARE 
  

					
	 	 		 	
		 	)	 	
	 SOMAXON PHARMACEUTICALS, INC.
 and PROCOM ONE, INC.,
	 	)	 	
	 	)	 	
		 	)	 	
	 Plaintiffs,
	 	)	 	No. 10-cv-1100 (RGA) (MPT)
		 	)	 	(Consolidated)
	 v.
	 	)	 	
		 	)	 	
	ACTAVIS ELIZABETH LLC, et al.,	 	)	 	
		 	)	 	
	 Defendants and
 Counterclaim-Plaintiffs.
	 	)	 	
	 	)	 	
	 	 	)	 	

 CONSENT JUDGMENT AND DISMISSAL ORDER 

The Court, upon the consent and request of Plaintiffs Somaxon Pharmaceuticals, Inc. and ProCom One, Inc. (collectively,
“Plaintiffs”) and Defendants Mylan Inc. and Mylan Pharmaceuticals Inc. (collectively, “Mylan”), hereby Finds: 
 1. Plaintiffs have charged Mylan with infringement of U.S. Patent Nos. 6,211,229 (the “’229 patent”) and 7,915,307 (the “’307 patent”) in connection with Mylan’s
submission to the U.S. Food and Drug Administration (“FDA”) of Abbreviated New Drug Application (“ANDA”) No. 202-337 seeking approval to engage in the commercial manufacture, use, and/or sale of a 3 mg doxepin hydrochloride
product and a 6 mg doxepin hydrochloride product (collectively, the “Mylan ANDA Products”); 
 2. Mylan has asserted
certain affirmative defenses and counterclaims in the Litigation; 
 3. The Parties have agreed to resolve their disputes
relating to the Litigation through a Settlement and License Agreement entered into between the parties, dated July     , 2012 (the “Agreement”), in order to avoid further litigation and the attendant risk, associated
fees, costs and expenses thereof; and 
 4. As a result of the Agreement, there will be an opportunity for pro-competitive
generic competition for doxepin hydrochloride products for human use, which competition otherwise may not have existed until the expiration of the Licensed Patents and any applicable period of exclusivity. 

  
 5 

 ORDER 

Accordingly, pursuant to and upon the consent and request of the Parties, IT IS HEREBY ORDERED, ADJUDGED AND DECREED
THAT: 
 a) The parties’ claims, counterclaims, and defenses with respect to the ’229 and ’307 patents are
hereby dismissed without prejudice; 
 b) Mylan, its officers, agents, servants, employees and attorneys, and those persons in
active concert or participation with them who receive actual notice of this Order by personal service or otherwise, are hereby enjoined from manufacturing, using, offering to sell and selling within the United States, and importing into the United
States, the Mylan ANDA Products during the life of the ’229 and ’307 patents, including any extensions and pediatric exclusivities, except to the extent permitted by the Settlement and License Agreement, and any subsidiary agreements,
entered into between the parties, dated July     , 2012. 
 c) This Order shall finally resolve the
Litigation between the Parties, and the Parties each expressly waive any right to appeal or otherwise move for relief from this Order; 
 d) This Court retains jurisdiction over the Parties for purposes of enforcing this Order; 
 e) Each Party shall bear its own fees and costs in connection with the Litigation, including attorney fees; 
  

			
	[        ]	  	[        ]
		
	Attorneys for Plaintiffs Somaxon Pharmaceuticals, Inc. and ProCom One, Inc.	  	Attorneys for Defendants Mylan Inc. and Mylan Pharmaceuticals Inc.
		
	Dated:     , 2012	  	

  

					
	 SO ORDERED:
	 		 	
			
	 This      day of             , 2012.
	 		 	
		 		 	  

		 		 	HON. [        ]
		 		 	UNITED STATES DISTRICT JUDGE

  
 6 

 EXHIBIT B 
 PRESS RELEASES 

  
 7 

					
	

	  	DRAFT
		  	Contacts:	  	Tran Nguyen / CFO
		  		  	Somaxon Pharmaceuticals, Inc.
		  		  	(858) 876-6500
			
		  		  	Rob Whetstone/Matt Sheldon
		  		  	PondelWilkinson, Inc.
		  		  	(310) 279-5963

 [TITLE] 
 SAN DIEGO, CA–July     , 2012–Somaxon Pharmaceuticals, Inc. (Nasdaq: SOMX), a specialty pharmaceutical company, today announced that it has entered into a settlement
arrangement with Mylan Inc. and its subsidiary, Mylan Pharmaceuticals, Inc. to resolve pending patent litigation involving Silenor® 3 mg and 6 mg tablets. 
 The settlement agreement with Mylan grants Mylan the exclusive right to begin selling an authorized generic version of Silenor (i.e., a generic version sold under Somaxon’s New Drug Application) on
January 1, 2020, or earlier under certain circumstances. Mylan’s right to sell such an authorized generic product could extend for a period of as long as 360 days, and after such period Mylan will have the non-exclusive right to sell a
generic version of Silenor under its Abbreviated New Drug Application. In connection with the settlement agreement, the parties also entered into a supply agreement under which Mylan has agreed to supply the company with commercial quantities of
Silenor 3 mg and 6 mg tablets. The settlement agreement will become effective upon the entry by the U.S. District Court for the District of Delaware of an order dismissing the litigation with respect to Mylan. 

[Management quote] 
 [Company description, Safe
Harbor Statement] 
 # # # 

							
	FOR IMMEDIATE RELEASE	  	CONTACTS:	  	Nina Devlin (Media)	  	
		  		  	724.514.1968	  	
		  		  	Kris King (Investors)	  	
		  		  	724.514.1813	  	

 Mylan Announces Settlement Agreement in Litigation Relating to its Generic Silenor® 

PITTSBURGH–July     , 2012–Mylan Inc. (Nasdaq: MYL)today announced that it andits subsidiary, Mylan Pharmaceuticals Inc.,
have entered into a settlement agreement with Somaxon Pharmaceutical, Inc. that will resolve the parties’ patent litigation in connection with Mylan Pharmaceuticals’ Abbreviated New Drug Application (ANDA) for Doxepin Hydrochloride
Tablets, 3 mg and 6 mg, which is the generic version of Somaxon’s Silenor®, indicated for the treatment of insomnia characterized by difficulty with sleep maintenance. 
 According to the terms of the settlement agreement, Mylan has the exclusive right to sell an authorized generic version of Silenor®in the U.S. and its territories for 180 days beginning on
January 1, 2020. In certain limited circumstances, Somaxon’s license to Mylan would become effective prior to January 1, 2020. Mylan’s right to sell the authorized generic product could extend for as long as 360 days, and after
such period Mylan will have the right to sell a generic version of Silenor® under its own ANDA. Pursuant to the agreement, the pending litigation will be dismissed. Additionally, Mylan entered into an agreement to manufacture and supply
Silenor® finished product to Somaxon. 
 Other details of the settlement are confidential, and the agreements are subject to review by the
Federal Trade Commission and the U.S. Department of Justice. 
 This press release includes statements that constitute “forward-looking
statements,” including with regard to the settlement of the litigation and sales of the product. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Because such statements
inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to:
any legal or regulatory challenges to the settlement; strategies by competitors or other third parties to delay or prevent product introductions; risks inherent in legal and regulatory processes; and the other risks detailed in the company’s
periodic filings with the Securities and Exchange Commission. The company undertakes no obligation to update these statements for revisions or changes after the date of this release. 
 Mylan is a global pharmaceutical company committed to setting new standards in health care. Working together around the world to provide 7 billion people access to high quality medicine, we innovate to
satisfy unmet needs; make reliability and service a habit, do what’s right, not what’s easy and impact the future through passionate global leadership. We offer a growing portfolio of more than 1,100 generic pharmaceuticals and several
brand medications. In addition, we offer a wide range of antiretroviral therapies, upon which approximately one-third of HIV/AIDS patients in developing countries depend. We 

  

							
	1500 Corporate Drive, Canonsburg, PA 15317	  	P: 724.514.1800	  	F: 724.514.1870	  	Mylan.com

 

 
  

 
also operate one of the largest active pharmaceutical ingredient manufacturers and currently market products in approximately 150 countries and territories. Our workforce of more than 18,000
people is dedicated to improving the customer experience and increasing pharmaceutical access to consumers around the world. But don’t take our word for it. See for yourself. See inside. mylan.comManufacturing Services Agreement between Somaxon Pharmaceuticals

 EXHIBIT 10.2 
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT. 
 MANUFACTURING SERVICES AGREEMENT 

THIS MANUFACTURING SERVICES AGREEMENT (the “Agreement”) made as of the 17th day of July 2012 (the “Effective Date”).

 B E T W E E N: 

MYLAN PHARMACEUTICALS INC., 
 a corporation existing under the laws of West Virginia, 
 (hereinafter referred to
as “Mylan”), 
 - and - 
 SOMAXON PHARMACEUTICALS, INC., 
 a corporation existing under the laws of
Delaware, 
 (hereinafter referred to as the “Somaxon”). 

THIS AGREEMENT WITNESSES THAT in consideration of the rights conferred and the obligations assumed herein, and for other good and
valuable consideration (the receipt and sufficiency of which are acknowledged by each party), and intending to be legally bound the parties agree as follows: 
 ARTICLE 1. 
 INTERPRETATION 

1.1 Definitions. 

The following terms shall, unless the context otherwise requires, have the respective meanings set out below and grammatical variations
of such terms shall have corresponding meanings: 
 “Act” means the Federal Food, Drug, and Cosmetic Act,
together with any regulation promulgated thereunder, including without limitation cGMPs, in each case as amended from time to time; 
 “Active Materials” means the materials listed on Schedule D hereto; 
 “Adverse Experience” shall mean any side effect, injury, toxicity, sensitivity reaction, unexpected incidence, untoward medical occurrence or other adverse event or experience associated
with the use of the Products, including, but not limited to, a “serious adverse event” within the meaning of 21 C.F.R. § 314.80(a), as amended from time to time; 

 “Affiliate” means: 

 

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

 

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

 

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

 

	 	(d)	For the purposes of this definition, “control” means the ownership of shares carrying at least a majority of the votes in respect of the election of the
directors of a corporation; 

 “Agreement” shall have the meaning ascribed thereto in the
preamble; 
 “Applicable Laws” means all Laws to the extent applicable to the subject matter of, or the
performance by the parties of their respective obligations under, this Agreement, including, but not limited to, (i) with respect to Mylan, the Act and any other Laws of all jurisdictions where the Products are manufactured and packaged, and
(ii) with respect to Somaxon, the Laws of all jurisdictions where the Products are distributed and marketed; 

“Annual Report” means the annual report as described in 21 CFR, Section 314.81(b)(2); 

“Annual Product Review Report” means the annual product review report as described in 21 CFR, Section 211.180(e);

 “Authority” means any governmental or regulatory authority, department, body or agency or any court,
tribunal, bureau, commission or other similar body, whether federal, state, provincial, county or municipal, including, but not limited to, the FDA; 
 “Business Day” means a day other than a Saturday, Sunday or a day that is a statutory holiday in the State of West Virginia or the State of California; 

“cGMPs” means current good manufacturing practices as described in Parts 210 and 211 of Title 21 of the United
States’ Code of Federal Regulations, together with the latest FDA guidance documents pertaining to manufacturing and quality control practice, all as updated, amended and revised from time to time, including, but not limited to, the FDA’s
Guidance for Industry, Manufacturing, Processing or Holding Active Pharmaceutical Ingredients; 
 “CMC”
shall have the meaning ascribed thereto in Section 7.9(d); 

 “Certificate of Analysis” means the certificate of analysis confirming the
identity, strength, quality and purity of each batch of finished Product to which it pertains; 
 “Components”
means, collectively, all raw materials and ingredients (including Packaging components, labels, product inserts and other labeling for the Products), required to be used in order to produce the Products in accordance with the Specifications,
including the Active Materials; 
 “Confidential Information” shall have the meaning ascribed thereto in
Section 11.1; 
 “Deficiency Notice” shall have the meaning ascribed thereto in Section 6.1(a);

 “Disclosing Party” shall have the meaning ascribed thereto in Section 11.1; 

“FCA” means free carrier, as that term is defined in INCOTERMS 2010 published by the International Chamber of Commerce;

 “FDA” means the United States government agency known as the United States Food and Drug Administration, and
any successor thereto; 
 “Firm Orders” has the meaning specified in Section 5.1(b); 

“Force Majeure Event” shall have the meaning ascribed thereto in Section 13.7; 

“Indemnitor” shall have the meaning ascribed thereto in Section 10.4(a); 

“Indemnitee” shall have the meaning ascribed thereto in Section 10.4(a); 

“Index” means Producer Price Index, Industry: Pharmaceutical Preparations, Series ID: pcu325412325412, as published by
the U.S. Department of Labor, Bureau of Labor Statistics. 
 “Initial Term” shall have the meaning ascribed
thereto in Section 8.1; 
 “Intellectual Property” includes, without limitation, rights in patents, patent
applications, formulae, trade-marks, trade-mark applications, trade-names, Inventions, copyright and industrial designs; 

 “Invention” means information relating to any invention, innovation,
improvement, development, discovery, computer program, device, trade secret, method, know-how, process, technique or the like, whether or not written or otherwise fixed in any form or medium, regardless of the media on which it is contained and
whether or not patentable or copyrightable; 
 “Inventory” means all inventories of Components and
work-in-process produced or held by Mylan or its Affiliates in connection with the manufacture and packaging of the Products, including, but not limited to, the Active Materials; 

“Laws” means all laws, statutes, ordinances, regulations, rules, by-laws, judgments, decrees or orders of any Authority,
including, but not limited to, the Act and cGMPs; 
 “Manufacturing Services” means the manufacturing, quality
control, quality assurance, labeling, packaging and related activities of Mylan, as contemplated in this Agreement, required to produce Products from Active Materials and Components in compliance with the Specifications; for the avoidance of doubt,
the Manufacturing Services will include Packaging and all services of personnel of Mylan, its Affiliates and its agents required to secure FDA approval of Mylan’s performance of the foregoing services; 

“Manufacturing Site” ***; 
 “Minimum Run Quantity” means the minimum number of tablets of a Product to be produced during the same cycle of manufacturing as set forth in Schedule C hereto; 

“Mylan” shall have the meaning ascribed thereto in the preamble; 

“Mylan Manufacturing Process” shall have the meaning ascribed thereto in Section 7.8; 

“NDA” shall have the meaning ascribed thereto in Section 7.9(d); 

“Packaging” shall mean the physical and operational services necessary for the packaging of the Products in bottles and
labeling the Products, in each case pursuant to the Specifications. 
 “Products” means the products listed on
Schedule A hereto; 
 “Product Quality Complaint” is defined as any complaint that questions the purity,
identity, potency or quality of the Product, its packaging, or labeling, or any complaint that concerns any incident that causes the Product or its labeling to be mistaken for, or applied to, another article or any bacteriological contamination, or
any significant chemical, physical, or other change or deterioration in the distributed Product, or any failure of one or more distributed batches of the Product to meet the Specifications therefor. 

  
 ***Certain information on
this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 “Quality Agreement” means the agreement to be entered into between the
parties hereto pursuant to Section 2.1(b) setting out the quality assurance standards to be applicable to the Manufacturing Services provided by Mylan, to attached hereto as Schedule F once it is completed; 

“Recall” shall have the meaning ascribed thereto in Section 6.2(a); 

“Receiving Party” shall have the meaning ascribed thereto in Section 11.1; 

“Settlement Agreement” means the Settlement and License Agreement by and among Somaxon, ProCom One, Inc., Mylan Inc. and
Mylan Pharmaceuticals, Inc. dated as of July     , 2012; 
 “Somaxon” shall have the meaning
ascribed thereto in the preamble; 
 “Specifications” means the file, for each Product, which is provided by
Somaxon to Mylan in accordance with the procedures listed in Schedule B hereto and which contains documents relating to such Product, including, without limitation: 
  

	 	(a)	specifications for Active Materials and Components; 

  

	 	(b)	manufacturing specifications, directions and processes; 

  

	 	(c)	storage requirements; 

  

	 	(d)	all environmental, health and safety information relating to the Product including material safety data sheets; 

 

	 	(e)	the finished Product specifications, packaging specifications and shipping requirements for each Product, including, but not limited to, any requirements set forth in
the applicable regulatory filings made with the FDA or other Authority (e.g., the NDA); 

 all as updated, amended
and revised from time to time by Somaxon in accordance with the terms of this Agreement; 
 “Territory” shall
mean the United States and its commonwealths, territories and possessions, including the Commonwealth of Puerto Rico; 

“Third Party Rights” means the Intellectual Property of any third party; 

“Year” means a calendar year, except that the first “Year” of this Agreement shall be deemed to be the period
from the Effective Date up to and including December 31, 2012; 

 1.2 Currency. 
 Unless otherwise indicated, all monetary amounts are expressed in this Agreement in the lawful currency of the United States of America. 
 1.3 Sections and Headings. 
 The division of this Agreement into
Articles, Sections, subsections and Schedules and the insertion of headings are for convenience of reference only and shall not affect the interpretation of this Agreement. Unless otherwise indicated, any reference in this Agreement to a Section or
Schedule refers to the specified Section or Schedule to this Agreement. In this Agreement, the terms “this Agreement”, “hereof”, “herein”, “hereunder” and similar expressions refer
to this Agreement and not to any particular part, Section, Schedule or the provision hereof. 
 1.4 Singular Terms. 

Except as otherwise expressly provided herein or unless the context otherwise requires, all references to the singular shall include the
plural and vice versa. 
 1.5 Schedules. 
 The following Schedules are attached to, incorporated in and form part of this Agreement: 
  

					
	Schedule A	 	-	 	Products
	Schedule B	 	-	 	Procedure for Shipment & Acceptance of Product Specifications
	Schedule C	 	-	 	Minimum Run Quantity & Fees
	Schedule D	 	-	 	Active Materials
	Schedule E	 	-	 	Batch Numbering & Expiration Dates
	Schedule F	 	-	 	Quality Agreement

 ARTICLE 2. 
 MANUFACTURING SERVICES 
 2.1 Manufacturing Services. 

During the term of this Agreement, Mylan shall manufacture and supply, in accordance with the provisions of this Agreement, all
quantities of the Products ordered from Mylan by Somaxon consistent with Article 5, and shall provide such Manufacturing Services for the Territory for the fees specified in Schedule C. In providing the Manufacturing Services, Somaxon and Mylan
agree that: 
  

	 	(a)	Conversion of Active Materials and Components. Mylan shall convert Active Materials and Components into Products. 

	 	(b)	Requirements. Somaxon shall purchase from Mylan under this Agreement, beginning as soon as all applicable approvals under Applicable Laws have been secured,
including FDA approval of Mylan providing the Manufacturing Services, and ending on ***, at least *** of its requirements of Products in the United States. As of *** (or such later date that all applicable approvals under Applicable Laws have been
secured, including FDA approval of Mylan providing the Manufacturing Services), Somaxon shall purchase from Mylan under this Agreement at least *** of its annual requirements of Products in the United States. For purposes of this
Section 2.1(b), requirements for Products shall be calculated based on the total number of tablets supplied, regardless of the number of tablets per bottle. Notwithstanding the foregoing, Somaxon’s obligations under this
Section 2.1(b) shall terminate immediately upon ***. 

  

	 	(c)	Quality Control and Quality Assurance. Within *** after the Effective Date, Mylan and Somaxon shall execute a Quality Agreement in connection with this Agreement
(the “Quality Agreement”) which addresses the management of the quality elements related to Products. In the event of any conflict between the terms of this Agreement and the Quality Agreement, this Agreement shall prevail. Mylan shall
perform the quality control and quality assurance testing specified in the Quality Agreement. Each time Mylan ships Products to Somaxon, it shall provide Somaxon with a Certificate of Analysis that sets out the test results for each batch of
Products, and that certifies that such batch has been evaluated by Mylan’s Quality Control/Quality Assurance department and that the Products comply with the Specifications. 

 

	 	(d)	Components. Mylan shall purchase the Components in sufficient quantities and at such times as may be necessary to perform the Manufacturing Services. Mylan shall
test and release all Components at Mylan’s expense and as specified by the Specifications. Mylan shall maintain sufficient inventories of Components (including Active Materials) as are required to supply volumes in monthly Firm Orders plus ***
taking into account the lead times for such Components. Mylan may procure Components from its suppliers, provided that all Components so obtained meet the Specifications therefor. 

  
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	 	(e)	Packaging. Mylan shall package the Products with labels, product inserts and other packaging as set out in the Specifications, including by Packaging the
Products when requested by Somaxon in Firm Orders. Mylan may use labels, product inserts, bottles and other packaging procured by Mylan from its suppliers in connection with the Packaging of the Products, provided that the Packaging meets the
Specifications therefor. Somaxon shall be responsible for any costs of artwork development. In addition, Mylan shall make arrangements for and implement the imprinting of batch numbers and expiration dates for each Product shipped. Such batch
numbers and expiration dates shall be affixed on the Products and on the shipping carton of each Product as outlined in the Specifications and as required by cGMPs. The system used by Mylan for batch numbering and expiration dates is detailed in
Schedule E hereto. Somaxon may, in its sole discretion, make changes to labels, product inserts and other packaging for the Products (“Packaging Obsolescence”), which changes shall be submitted by Somaxon to all applicable Authorities and
other third parties responsible for the approval of the Products. Somaxon shall be responsible for the cost of Packaging Obsolescence when changes occur for any reason, whether made at Somaxon’s discretion or as required by any applicable
Authorities. 

  

	 	(f)	Storage. Until finished Products are shipped, Mylan shall store all such Products identifiably distinct from any other raw material and finished or filled
product stocks and shall comply with all storage requirements set forth in the Specifications and all Applicable Laws, including, but not limited to, cGMPs. Mylan shall assume responsibility for any loss or damage to such finished Product while
stored by Mylan. 

  

	 	(g)	Facility. Mylan will manufacture, test, perform quality control and package the Product at the Manufacturing Site. Mylan shall not manufacture, test, perform
quality control or package any Product in any other facility without first obtaining Somaxon’s prior written consent. 

  

	 	(h)	Product Rejection. Prior to packaging any bulk finished Product, Mylan shall test each batch of bulk finished Product for compliance with the finished Product
Specifications (excluding packaging-related specifications). In the event any nonconforming Product is observed in connection with such testing procedures, Mylan shall promptly suspend the packaging of the applicable batch, notify Somaxon in
writing, and consult with Somaxon with respect to available alternatives. 

 2.2 Standard of Performance.

 Mylan shall use commercially reasonable efforts to provide the Manufacturing Services in accordance with the
Specifications, cGMPs and Applicable Laws. 

 2.3 Right of First Refusal for Additional Products. 

During the Initial Term, in the event that Somaxon intends to commercialize in the United States a branded pharmaceutical product
containing doxepin as the sole active pharmaceutical ingredient that is not the Product, including any over the counter pharmaceutical product containing doxepin as the sole active pharmaceutical ingredient, (each such product, an
“Additional Product”), prior to entering into any agreement with any third party manufacturer for the manufacture of commercial quantities of such Additional Product (a “Third Party Manufacturer”), Somaxon ***.
Mylan shall have a period of *** after its receipt of such Additional Product Notice (the “Notification Period”) within which to notify Somaxon that ***. If Mylan so notifies Somaxon within such Notification Period, Somaxon shall
negotiate with Mylan for a period of *** (the “Negotiation Period”) to ***. In the event that (a) Mylan notifies Somaxon in writing within the Notification Period that ***, (b) Mylan fails to respond to Somaxon by ***, or
(c) after good faith negotiation during the Negotiation Period ***, then Somaxon shall have no further obligation to Mylan with respect to the applicable Additional Product and ***. 

ARTICLE 3. 

PAYMENT OBLIGATIONS 

3.1 Payment. 

Pursuant to the terms of this Agreement, Somaxon shall pay Mylan for the provision of the Manufacturing Services according to the fees
specified in Schedule C hereto (such fees being subject to adjustment in accordance with the terms hereof). 
 ARTICLE 4.

 ADJUSTMENT OF FEES 
 4.1 Fee Basis. 
 The initial fees for the Manufacturing Services
listed in Schedule C are intended by the parties to be fixed through ***, subject to the adjustments hereafter set forth. Somaxon acknowledges that the fees for Manufacturing Services in respect of Products are based upon the Minimum Run Quantity
per Product specified in Schedule C and are subject to change if the specified Minimum Run Quantity is amended by the parties in writing. For greater certainty, if Mylan and Somaxon agree that the Minimum Run Quantity in respect of a Product shall
be increased or decreased and, as a result of such increase or decrease, Mylan’s fees for services relating to such Product decrease or increase on a per unit basis, then if such revised Minimum Run Quantity is not otherwise contemplated in
Schedule C, the fee for Manufacturing Services in respect of such Product shall be increased or decreased by an amount sufficient to pass on to Somaxon the cost savings or to absorb, but not exceed, such increased costs, as the case may be.

  
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 4.2 Price Adjustments. 

The fees for the Manufacturing Services provided pursuant to the terms of this Agreement will be adjusted *** beginning in ***. In
connection therewith, Mylan shall deliver to Somaxon by not later than *** beginning in *** a revised Schedule C and such budgetary pricing information or other documentation (including the percentage increase in the Index and adjusted Component
costs) reasonably sufficient to detail the fee adjustment in accordance with subsections (a) and (b) below. Mylan will reasonably discuss the fee adjustments with Somaxon in good faith, and the parties will agree upon any required
amendments to such revised Schedule C. Such revised Schedule C and the fees therein shall be effective with respect to any Products delivered after the end of the then current Year (including any changes mutually agreed upon by the parties as a
result of such discussion). The fee adjustments will be made as follows: 
  

	 	(a)	There will be adjustments to the fees for actual increases or decreases in relevant labor costs directly related to the Manufacturing Services, provided that
(A) any percentage increase in the fees under this sub-section (i) will not exceed ***, and (B) any percentage decrease in the Price under this sub-section (i) will not exceed ***, and 

 

	 	(b)	There will be adjustments to the fees to pass on actual increases or decreases in the direct costs of Components. Such adjustments will be ***.

 4.3 Adjustments Due to Technical Changes. 

Amendments to the Specifications or the Quality Agreement requested by Somaxon will only be implemented following a technical and cost
review by Mylan and are subject to Somaxon and Mylan reaching agreement as to revisions, if any, to the fees specified in Schedule C necessitated by any such amendment. If Somaxon accepts a proposed fee change based on such a requested amendment,
the fee change shall become effective only with respect to those orders of Products that are manufactured in accordance with the amended Specifications or Quality Agreement. 
 4.4 Capital Expenditures for Manufacturing Services Equipment. 

Somaxon has provided to Mylan the Description of Manufacturing Process and Process Control from the NDA for the Products (as part of the
Specifications), which includes a list of equipment necessary or reasonably useful for providing the Manufacturing Services for the Product. Mylan agrees that it has all of the equipment listed therein and is ableto use such equipment in providing
Manufacturing Services hereunder. In the event that any additional equipment is deemed necessary to provide the Manufacturing Services (a) by Mylan in its reasonable discretion, and Somaxon in its reasonable discretion agrees that such
equipment is necessary, or (b) deemed necessary by Somaxon, in its reasonable discretion, then in either such case such equipment shall be provided by or purchased by Somaxon, or purchased on Somaxon’s behalf by Mylan (and Mylan shall be
reimbursed by Somaxon for such purchases), and shall be owned by Somaxon and used solely from for the Product hereunder or products otherwise 

  
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manufactured by Mylan for Somaxon at no additional cost to Somaxon. In the event that Mylan deems any additional equipment to be necessary to provide the Manufacturing Services and Somaxon in its
reasonable discretion does not agree with such determination, the parties will discuss the matter in good faith to reach a mutually agreeable resolution. 
 ARTICLE 5. 
 ORDERS, SHIPMENT, INVOICING, PAYMENT 

5.1 Orders and Forecasts. 
  

	 	(a)	Rolling Forecasts. Beginning *** after the execution of this Agreement, Somaxon shall provide Mylan with a written, non-binding forecast of the volume of
Products that Somaxon then anticipates will be required to be produced, Packaged and delivered to Somaxon under this Agreement during each month of the *** thereafter (each such forecast, a “*** Forecast”). For the first such ***
Forecast, the amounts specified for delivery during *** shall constitute a binding purchase order for such *** Forecast, and for each subsequent *** Forecast, the amounts specified for delivery during *** shall constitute a binding purchase order
for such *** Forecast. Such *** Forecast will be updated by Somaxon *** on or before the ***. The most recent *** Forecast shall supersede all previous forecasts. 

 

	 	(b)	Firm Orders. On or before ***, Somaxon shall issue written orders in accordance with the then current *** Forecast (“Firm Orders”) for the
Products to be produced, Packaged and delivered to Somaxon under this Agreement, with the delivery date for such monthly orders to be not less than *** from the first day of the calendar month immediately following the date that the Firm Order is
submitted. Such Firm Orders submitted to Mylan shall specify Somaxon’s purchase order number, quantities by Product type, Packaged Products by bottle type, monthly delivery schedule and any other elements necessary to ensure the timely
production and shipment of the Products. The quantities of Products ordered in such Firm Orders shall be firm and binding on Somaxon and shall not be subject to reduction by Somaxon. Firm Orders submitted by Somaxon pursuant to this Section 5.1
must be accepted by Mylan and shall be automatically firm and binding on Mylan if they are not more than *** of the amounts set forth in the most recent *** Forecast for the delivery period specified in the Firm Order (on a Product-by-Product and
bottle-type-by-bottle-type basis). Mylan will use commercially reasonable efforts to manufacture Product in excess of *** of the amounts in the most recent *** Forecast for the delivery period specified in the Firm Order. Firm Orders not rejected by
Mylan within *** of receipt by Mylan shall be deemed to have been accepted by Mylan. 

 5.2 Minimum Orders.

 Somaxon may only order Products in multiples of the Minimum Run Quantities set out in Schedule C. 

  
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 5.3 Shipments. 

 

	 	(a)	Shipments of Products shall be made FCA the Manufacturing Site unless otherwise mutually agreed in writing, and Mylan shall make deliveries to Somaxon or its designee
no more than *** before or *** after the delivery dates specified by the accepted Firm Order. Risk of loss or of damage to Products shall remain with Mylan until Products are loaded onto the carrier’s vehicle by Mylan for shipment at the
shipping point at which time risk of loss or damage shall transfer to Somaxon. Mylan shall, in accordance with Somaxon’s instructions and as agent for Somaxon, (i) arrange for shipping, including preparing and executing a packing list, so
that the Products will be delivered to the delivery address on the delivery date set forth in the applicable Firm Order, with such shipping to be paid by Somaxon and (ii) at Somaxon’s risk and expense, obtain any export license or other
official authorization necessary to export the Products, including all customs formalities. Somaxon shall arrange for insurance and shall select the freight carrier used by Mylan to ship Products. Mylan shall notify Somaxon in writing at the time of
shipment as to the quantity of Product shipped, the anticipated delivery date and confirmation of the carrier. If any order is delayed and is not likely to be delivered to the carrier as set forth in this Section 5.3(a), Mylan shall promptly
notify Somaxon and Somaxon may reasonably direct Mylan to ship such order by expedited means of transportation as designated by Somaxon, at Mylan’s expense, unless such delay is due to reasons beyond Mylan’s reasonable control and under
such circumstances beyond Mylan’s reasonable control, the expense shall be equally shared by Mylan and Somaxon. In all cases, Products shall be transported in accordance with the Specifications and Applicable Laws, including, but not limited
to, cGMPs. 

  

	 	(b)	If Mylan, for any reason, including, without limitation, a Force Majeure Event, fails to supply the requisite quantities of Products within *** after the date of
delivery in an accepted Firm Order in the case of circumstances beyond the control of Mylan, or within *** after the date of delivery in an accepted Firm Order in any other case, then (i) Somaxon may cover such quantities under the applicable
Firm Order through an alternate supplier, with such covered amount of the applicable Firm Order to be cancelled, and any such purchases from such alternate supplier will not be deemed to be purchases from a supplier other than Mylan for the purposes
of calculating Somaxon’s purchase requirements under Section 2.1(b), and (ii) Somaxon’s purchase requirements under Section 2.1(b) will be suspended until Mylan regains its ability to resume supplying hereunder, evidenced by
the delivery by Mylan of (A) written notice thereof, together with (B) a Certificate of Analysis showing conformity with the Specifications and Applicable Laws, including cGMPs, of a batch of normal commercial size that is manufactured
after Mylan’s most recent failure to meet its delivery deadlines hereunder; provided that Somaxon may purchase all quantities already ordered and confirmed by its alternate supplier, and for the avoidance of doubt such quantities will not be
deemed to be purchases from a supplier other than Mylan for the purposes of calculating Somaxon’s purchase requirements under Section 2.1(b). Nothing in this Section 5.1(b) shall be construed to limit the rights and remedies available
to Somaxon at law or in equity. 

  
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 5.4 Invoices and Payment. 

 

	 	(a)	Invoices. Invoices for Products that are shipped to Somaxon shall be sent by fax or email to such fax number or email address as may be provided by Somaxon in
writing from time to time, but not earlier than the date of shipment of the corresponding Products. Mylan shall also submit to Somaxon, with each shipment of Products, a duplicate copy of the invoice covering such shipment. Each such invoice shall,
to the extent applicable, identify Somaxon purchase order number, Product numbers, names and quantities, unit price, freight charges and the total amount to be remitted by Somaxon. 

 

	 	(b)	Payment. Somaxon shall pay undisputed amounts of all invoices within ***of the date of confirmed facsimile or email transmission of the invoice. Invoices not
paid within *** after the receipt date of the invoice that are not the subject of a dispute as contemplated by Section 5.4(c) will be subject to interest on such unpaid amount at an annual rate equal to the lower of the *** or the highest rate
allowed by applicable law. 

  

	 	(c)	Disputed Amounts. In the event that Somaxon disputes any amounts under any invoice for Products, such dispute shall be resolved in accordance with
Section 6.1 (with respect to non-conformance of Products) or otherwise under Article 12. Pending resolution of such dispute, Somaxon shall be obligated to pay any amounts under such invoice that are not in dispute. Upon resolution of any such
dispute in favor of Mylan, Somaxon shall pay all remaining amounts owing under such invoice within the later occurrence of ***. 

 ARTICLE 6. 
 PRODUCT CLAIMS; RECALLS; ADVERSE EVENTS 

6.1 Product Claims. 
  

	 	(a)	 Product Claims. Somaxon has the right to reject and return, at the expense of Mylan, all or any portion of any shipment of Products that
deviates from the Specifications or Applicable Laws, including cGMPs, without invalidating any remainder of such shipment. Somaxon or its designated agent shall inspect the Products manufactured by Mylan upon receipt of such Products from the
freight carrier used by Mylan to ship the Products and the related Certificate(s) of Analysis and shall give Mylan written notice (a “Deficiency Notice”) of all claims for Products that deviate from the Specifications or Applicable
Laws, including cGMPs, within *** after such receipt of such Products and related Certificate(s) of Analysis (or, in the case of any defects not reasonably susceptible to discovery upon such receipt of the Product, within *** after discovery thereof
by Somaxon). Should Somaxon fail to provide Mylan with the Deficiency Notice within the applicable *** period, then the delivery shall be deemed to have been accepted by 

  
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Somaxon on the *** after delivery or discovery, as applicable. Except as set out in Section 6.2, Mylan shall have no liability for any deviations for which Somaxon has failed to provide
notice within the applicable *** period. 

  

	 	(b)	Determination of Deficiency. Upon receipt of a Deficiency Notice, Mylan shall have *** to advise Somaxon by notice in writing that it disagrees with the contents
of such Deficiency Notice. If Somaxon and Mylan fail to agree within *** after Mylan’s notice to Somaxon as to whether any Products identified in the Deficiency Notice deviate from the Specifications or Applicable Laws, including cGMPs, then
the parties shall mutually select an independent laboratory within five days from the parties’ failure to agree, which independent laboratory shall evaluate if the Products deviate from the Specifications or Applicable Laws, including cGMPs.
The parties shall cause the independent laboratory to conduct its evaluation as promptly as practicable, and in any event within *** from the date of selection of the laboratory. Such evaluation shall be binding on the parties, and if such
evaluation certifies that any Products deviate from the Specifications or Applicable Laws, including cGMPs, Somaxon may reject those Products in the manner contemplated in this Section 6.1. If such evaluation does not so certify in respect of
any such Products, then Somaxon shall be deemed to have accepted delivery of such Products on the date the evaluation is delivered by the independent laboratory to the parties. The expenses of such testing shall be borne by Mylan if the
non-conformity with the Specifications or Applicable Laws, including cGMPs, is confirmed by the independent laboratory, and otherwise by Somaxon. 

  

	 	(c)	Mylan Responsibility. If Somaxon rejects Products under this Section 6.1 due to the Products deviating from the Specifications or Applicable Laws, including
cGMPs, Mylan will, at Somaxon’s election, either: (i) credit Somaxon’s account for Mylan’s invoice price to Somaxon for such defective Products (but if Somaxon has already paid for such defective Products, Mylan shall at
Somaxon’s election, either refund the invoice price for such defective Products within *** of Somaxon’s rejection of the non-conforming Products or offset such amount against other amounts due to Mylan hereunder); or (ii) use
commercially reasonable efforts to replace such Products with conforming Products within *** of Somaxon’s rejection of the non-conforming Products without Somaxon being liable for payment therefor under Section 3.1, provided that Somaxon
had previously paid Mylan in full for the non-conforming Products. Notwithstanding the foregoing, Mylan shall use at least the same level of effort to replace such non-conforming Products and perform the related Manufacturing Services as
Mylan’s effort for the manufacturing, quality control, quality assurance, packaging and related activities for any other customer at the Manufacturing Site. Nothing in this Section 6.1 shall be construed to limit the rights and remedies
available to Somaxon at law or in equity. 

  

	 	(d)	 Shortages. If a shipment of Products contains less than the quantity specified in the corresponding Firm Order (the “Shortage
Amount”), Somaxon shall notify 

  
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Mylan promptly upon such discovery and, in any event, not later than *** after receipt of the shipment from the freight carrier selected by Somaxon to ship the Products. Upon receipt of
Somaxon’s written request, Mylan shall use commercially reasonable efforts to manufacture and ship the Shortage Amount within *** after such notification. Notwithstanding the foregoing, Mylan shall use at least the same level of effort to
manufacture and ship the Shortage Amount and perform the related Manufacturing Services as Mylan’s effort for the manufacturing, quality control, quality assurance, packaging and related activities for any other customer with respect to the
Manufacturing Site. In the event that the Shortage Amount is less than a validated batch size as set forth in Schedule C, then Mylan shall manufacture the next highest validated batch size of the Product (“Shortage Batch”) and
package the Shortage Batch, including the Shortage Amount, in accord with Somaxon’s written instructions. Nothing in this Section 6.1 shall be construed to limit the rights and remedies available to Somaxon at law or in equity.

 6.2 Product Recalls and Returns. 
  

	 	(a)	Records and Notice. Mylan and Somaxon shall each maintain such records as may be necessary to permit a Recall of any Products delivered to Somaxon or customers
of Somaxon. Each party shall promptly notify the other by telephone (to be confirmed in writing) of any information which might affect the marketability, safety or effectiveness of the Products and/or which might result in the Recall or seizure of
the Products. Upon receiving any such notice or upon any such discovery, each party shall cease and desist from further shipments of such Products in its possession or control until a decision has been made whether a Recall or some other corrective
action is necessary. The decision to initiate a Recall or to take some other corrective action, if any, shall be made and implemented by Somaxon. “Recall” shall mean any action (i) by Somaxon to recover title to or possession
of quantities of the Products sold or shipped to third parties (including, without limitation, the voluntary withdrawal of Products from the market); or (ii) by any regulatory authorities to detain or destroy any of the Products. Recall shall
also include any action by either party to refrain from selling or shipping quantities of the Products to third parties which would have been subject to a Recall if sold or shipped. 

 

	 	(b)	Recalls. In the event (i) any Authority issues a directive, order or, following the issuance of a safety warning or alert with respect to a Product, a
written request that any Product be Recalled, (ii) a court of competent jurisdiction orders such a Recall, or (iii) Somaxon determines that any Product should be Recalled or that a “dear doctor” letter is required relating the
restrictions on the use of any Product, Mylan will co-operate, at Somaxon’s sole expense (subject to Section 6.2(d)), as reasonably requested by Somaxon, having regard to all Applicable Laws. 

 

	 	(c)	Product Returns. Somaxon shall have the responsibility for handling customer returns of the Products. Mylan shall provide Somaxon with such assistance, at
Somaxon’s sole expense (subject to Section 6.2(d)), as Somaxon may reasonably request to handle such returns. 

  
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	 	(d)	Mylan’s Responsibility. To the extent that a Recall or return solely results from, or solely arises out of, a failure by Mylan to perform the Manufacturing
Services in accordance with the Specifications or Applicable Laws, including cGMPs, Mylan shall be responsible for the documented out-of-pocket expenses of such Recall or return and shall promptly, at Somaxon’s election, either: (i) refund
the invoice price for such Recalled or returned Products; (ii) offset such amount against other amounts due to Mylan hereunder; or (iii) use its commercially reasonable efforts to replace such Recalled or returned Products with conforming
Products within *** of Somaxon’s election under this Section 6.2(d) without Somaxon being liable for payment therefor under Section 3.1, provided that Somaxon had previously paid Mylan in full for the Products subject to such Recall.
Notwithstanding the foregoing, Mylan shall use at least the same level of effort to replace such Recalled or returned Products and perform the related Manufacturing Services as Mylan’s effort for the manufacturing, quality control, quality
assurance, packaging and related activities for any other customer at the Manufacturing Site. In all other circumstances, Recalls, returns or other corrective actions shall be made at Somaxon’s sole cost and expense. Notwithstanding the
foregoing, if a failure by Mylan to perform the Manufacturing Services in accordance with the Specifications or Applicable Laws, including cGMPs, has contributed to a Recall or return but was not the sole cause of such Recall or return, Mylan and
Somaxon will share the documented out-of-pocket expenses and the cost of replacement Products in proportion to each party’s contribution to the problem. 

 6.3 Disposition of Defective or Recalled Products. 
 Somaxon shall
not dispose of any damaged, defective, returned or Recalled Products in relation to which it intends to assert a claim against Mylan unless it has given Mylan *** notice of its intention to do so, and Mylan has not, in turn, instructed Somaxon to
return such Products to Mylan. Mylan shall bear the cost of shipping, storage and disposition with respect to any damaged, defective, returned or Recalled Products in relation to which it bears responsibility under Section 6.1 or 6.2 hereof,
and shall promptly reimburse Somaxon for any such costs which may be incurred directly by Somaxon. In all other circumstances, Somaxon shall bear the cost of disposition with respect to any damaged, defective, returned or Recalled Products.
Notwithstanding the foregoing, Somaxon shall have the right at all times to retain a reasonable sample of such Products for its own archival purposes. 
 6.4 Customer Questions and Complaints. 
 Somaxon shall have the sole
responsibility for responding to Product Quality Complaints, subject to Mylan’s obligation of cooperation as set forth in the Quality Agreement. Product Quality Complaints received by Mylan from Somaxon’s customers shall be referred to
Somaxon as set forth in the Quality Agreement. Except to the extent required by Applicable Laws, Mylan shall not make any statement to any Third Party that could reasonably be construed as an admission of fault on Somaxon’s part or a promise
that Somaxon will compensate anyone with respect to any Product Quality Complaint. 

  
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 6.5 Adverse Event Reporting. 

Except as otherwise set forth in the Quality Agreement, Mylan shall notify Somaxon promptly and not later than*** after it becomes aware
of any Adverse Experience associated with the use of the Products, whether or not determined to be attributable to the Products, and whether or not deemed to be serious or non-serious. Such information shall be sent to Somaxon as set forth in the
Quality Agreement. Except to the extent required by Applicable Laws, Mylan shall not make any statement to any Third Party that could reasonably be construed as an admission of fault on Somaxon’s part or a promise that Somaxon will compensate
anyone with respect to any Adverse Experience. 
 ARTICLE 7. 

CO-OPERATION 
 7.1
Quarterly Review. 
 Each party shall forthwith upon execution of this Agreement appoint one of its employees to be a
relationship manager responsible for liaison between the parties. The relationship managers shall meet not less than quarterly to review the current status of the business relationship and manage any issues that have arisen. 

  
 ***Certain information on
this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 7.2 Communication with Governmental Agencies. 

Somaxon shall be primarily responsible for communicating with any Authority regarding such Products, including, but not limited to, the
FDA and any other Authority responsible for granting regulatory approval for the Products; provided, however, that if in the opinion of Mylan’s counsel, Mylan must communicate with an Authority to comply with the terms of this Agreement or the
requirements of any Applicable Laws, it may do so. Unless, in the reasonable opinion of its counsel, there is a legal prohibition against doing so, each party shall permit the other party to accompany and take part in any communications with any
Authority relating specifically to the subject matter of this Agreement, and to receive copies of all such communications from any Authority relating specifically to the subject matter of this Agreement. 

7.3 Records and Accounting by Mylan. 
 Mylan shall keep records of the manufacture, testing and shipping of the Products, Active Materials and Components and retain samples of such Products, Active Materials and Components as are necessary to
comply with all Applicable Laws, including, but not limited to, cGMPs and other manufacturing regulatory requirements applicable to Mylan, the Manufacturing Site, the Products, the Active Materials and/or the Components, as well as to assist with
resolving Product complaints and other similar investigations. Copies of such records and samples shall be retained for a period of one year following the date of Product expiry, or longer if required by Applicable Laws, after which Mylan may
destroy such records or samples; provided that Mylan has first given Somaxon 60 days notice of its intention to do so and Somaxon has not, in turn, instructed Mylan to ship such records or samples to Somaxon at Somaxon’s expense. 

7.4 Somaxon’s Inspection of Reports and Records. 
 At its own expense, Somaxon may inspect Mylan reports and records solely relating to Manufacturing Services provided under this Agreement during normal business hours and with reasonable advance notice,
provided a Mylan representative is present during any such inspection. For greater certainty, the right of access provided in this Section 7.4 shall not include a right to access or inspect Mylan’s financial records. 

7.5 Somaxon’s Access to Manufacturing Site. 
 Mylan shall provide Somaxon with reasonable access at mutually agreeable times to its Manufacturing Site or any other facilities in which the Products are manufactured, Packaged, stored, handled or
shipped in order to permit Somaxon’s verification of Mylan’s compliance with this Agreement and with all Applicable Laws. For greater certainty, the right of access provided in this Section 7.5 shall not include a right to access or
inspect Mylan’s financial records. 

 7.6 Government Inspection. 

Mylan shall make its internal practices, books and records relating to the manufacture of the Products available and allow access to all
facilities used for manufacturing the Products to the FDA and any other Authority having jurisdiction over the manufacture of the Products for the purposes of determining Mylan’s compliance with Applicable Laws, including, but not limited to,
cGMPs. Mylan shall advise Somaxon by telephone and facsimile within one Business Day of any proposed or announced visit, audit or inspection, and as soon as possible (but in any case within two Business Days) after any unannounced visit, audit or
inspection, by the FDA or any other Authority relating to the Products. Mylan shall provide Somaxon with a reasonable description in writing of each such visit or inspection promptly (but in no event later than five days) thereafter, and with copies
of any Authority-issued inspection observation reports (including, without limitation, FDA Form 483s and equivalent forms from other regulatory bodies) and Authority correspondence, purged of confidential information that is unrelated to the
Products. Mylan and Somaxon will cooperate in resolving any concerns with any Authority, and Somaxon may review a reasonable time in advance of their submission to the applicable Authority Mylan’s responses to any such reports and
communications, and Mylan shall in its reasonable discretion incorporate into such responses any comments received from Somaxon. Mylan will also inform Somaxon of any action taken by any Authority against Mylan or any of its officers or employees
which may be reasonably expected to adversely affect the Products or Mylan’s ability to supply the Products hereunder within two Business Days after the action is taken. 
 7.7 Reports. 
 Mylan will supply on an annual basis all Product data
in its control, including release test results, complaint test results and all investigations (in manufacturing, testing and storage), that Somaxon reasonably requires in order to complete any filing under any applicable regulatory regime, including
any Annual Report that Somaxon is required to file with the FDA. At Somaxon’s request Mylan shall provide a copy of the Annual Product Review Report to Somaxon at no additional cost. Any additional report requested by Somaxon beyond the scope
of cGMPs and customary FDA requirements shall be subject to an additional fee to be agreed upon between Mylan and Somaxon. 
 7.8 Mylan
Manufacturing Process. Mylan, at its expense, shall be permitted to ***; provided, that Somaxon will have no obligation to ***. 

7.9 Validation and FDA Filings 
  

	 	(a)	 Validation; Technology Transfer. Mylan will at its expense validate all applicable processes, methods, equipment, utilities, facilities and
computers used in the manufacture, packaging, storage, testing and release of Products and will create a process specification, in each case in conformance with the Specifications and all Applicable Laws, including, but not limited to, cGMPs. Upon
request, Mylan shall provide to Somaxon a copy of the results of Product specific validation when such results are available. Somaxon shall reasonably cooperate with Mylan in the qualification of Mylan’s Manufacturing Site and will provide such

  
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technology transfer assistance as Mylan may reasonably request to assure a smooth, efficient and timely transfer of any technology related to the Products reasonably required by Mylan to
effectuate such Manufacturing Site qualification and to validate and manufacture the Products. In furtherance of the technology transfer, Somaxon shall make its employees and other internal resources reasonably available to Mylan and provide copies
of all technology, documents, data and other information constituting manufacturing know-how or otherwise necessary for regulatory qualification of Mylan’s manufacturing process. With respect to all documents, data and other information
provided in connection with the technology transfer, Somaxon shall be responsible for the cost of providing a single copy thereof, however, Somaxon shall have no obligation to reformat or otherwise alter or modify any such electronic materials.

  

	 	(b)	FDA Filings. Somaxon shall have the sole responsibility for filing all documents with the FDA and taking any other actions that may be required for the receipt
of FDA approval for the commercial manufacture of all of the Products by Mylan. Somaxon, in consultation with Mylan, will amend or supplement the NDA to provide for the inclusion of the Manufacturing Site as an authorized manufacturing site for the
Products thereunder, subject to good faith efforts and cooperation. Mylan shall assist Somaxon, to the extent consistent with Mylan’s obligations under this Agreement, including, but not limited to, the obligations under clause (a) of this
Section 7.9 above, to obtain FDA approval for the commercial manufacture of all Products by Mylan as quickly as reasonably possible. Copies of all relevant CMC (as hereinafter defined) submissions and any related FDA correspondence are to be
promptly provided to Mylan by Somaxon. 

  

	 	(c)	Verification of Data. At least *** prior to filing any documents with the FDA that incorporate data generated by Mylan, Somaxon shall provide Mylan with a copy
of the documents incorporating such data so as to give Mylan the opportunity to verify the accuracy and regulatory validity of such documents as they relate to the Mylan generated data. 

 

	 	(d)	Verification of CMC. At least *** prior to filing with the FDA any amendment to the Chemistry and Manufacturing Controls (“CMC”) section of
Somaxon’s New Drug Application (“NDA”) filing relating to Mylan’s manufacturing of the Products, Somaxon shall provide Mylan with a copy of the CMC section as well as any supporting documents which have been relied upon to
prepare the CMC portion so as to permit Mylan to verify that the CMC portion accurately describes the work that Mylan has performed and the manufacturing processes that Mylan will perform pursuant to this Agreement. Notwithstanding the foregoing,
Somaxon may omit from the materials provided to Mylan any CMC section and supporting documents which have been previously provided by Mylan to Somaxon and which have not been modified or edited by Somaxon. 

 

	 	(e)	 Comments. Within *** of Mylan’s receipt from Somaxon of any documents under paragraphs (c) and (d) above, Mylan shall provide any
comments it may 

  
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have on such documents in writing to Somaxon, including any alleged inaccuracies or deficiencies, and representatives of the parties shall cooperate in good faith with one another over the
following *** period to address the comments and revise the materials accordingly. 

  

	 	(f)	Deficiencies. In the event the representatives of the parties fail to agree upon the resolution of any alleged inaccuracies or deficiencies within such ***
period, the program directors or equivalent executives of each of Mylan and Somaxon shall meet as promptly as possible to discuss and attempt to resolve the dispute. If the program directors or equivalent executive are unable to resolve the dispute
(or otherwise fail to meet) within the following *** period, then the parties will submit the dispute to an independent scientific mediator mutually selected by the parties. None of such mediator candidates may have been previously employed or
otherwise received compensation from either Somaxon or Mylan except pursuant to any earlier dispute between Somaxon and Mylan. The selected mediator shall hold any proceedings deemed necessary and make his or her findings within *** of his or her
selection. The findings of the mediator shall be conclusive and binding upon the parties for purposes of any subsequent submissions to the Authority and the parties shall thereafter cooperate with one another in connection with any inspection by the
FDA that may follow. All out-of-pocket costs relating to the dispute resolution process, including the mediator’s fees and expenses, shall be borne solely by the unsuccessful party or as otherwise determined by the mediator.

  
 ***Certain information on
this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 7.10 Out-of-Scope Services. In the event that Somaxon requests Mylan to perform any
services that are not Manufacturing Services and are not otherwise contemplated under this Agreement, including but not limited to any changes to the Specifications that are required by Applicable Law (including any requirement of the FDA) and
ongoing stability testing of the Products by Mylan (“Out-of-Scope Services”), and Mylan in its sole discretion is able to provide such Out-of-Scope Services to Somaxon, Mylan will within *** after such request provide Somaxon with a
non-binding quote for its fees for such Out-of-Scope Services, which fees shall ***. To the extent that Somaxon thereafter authorizes Mylan to proceed with such Out-of-Scope Services, Mylan will perform such Out-of-Scope Services and Somaxon will
pay to Mylan as fees for such Out-of-Scope Services ***. Mylan will provide to Somaxon, upon Somaxon’s request, ***. In the event that Somaxon or Mylan estimates that*** such party will promptly notify the other party of such fact, the parties
will discuss the situation in good faith and Mylan will cease such Out-of-Scope Services promptly upon any request by Somaxon, provided that Somaxon shall remain liable for all Out-of-Scope Services performed prior to such request and any
non-cancelable contracts and other obligations (after reasonable efforts by Mylan to cancel such contracts or other obligations) entered into by Mylan in connection with the performance of such Out-of-Scope Services. 

ARTICLE 8. 

TERM AND TERMINATION 

8.1 Initial Term. 

This Agreement shall become effective as of the date of execution hereof by both parties and shall continue until the date that is ten
years from the Effective Date (the “Initial Term”), unless terminated earlier by one of the parties in accordance herewith. This Agreement shall automatically continue after the Initial Term for successive terms of 24 months each
unless either party gives written notice to the other party of its intention to terminate this Agreement at least 18 months prior to the end of the then current term. 
 8.2 Termination for Cause. 
  

	 	(a)	Either party at its sole option may terminate this Agreement upon written notice (i) in circumstances where the other party has failed to remedy a material breach
of any of its representations, warranties or other obligations under this Agreement within 60 days following receipt of a written notice of said breach that expressly states that it is a notice under this Section 8.2(a), (ii) in the event
of a material breach of the Settlement Agreement by the other party, or (iii) pursuant to Section 13.7. 

  
 ***Certain information on
this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

	 	(b)	Either party at its sole option may immediately terminate this Agreement upon written notice, but without prior advance notice, to the other party in the event that:
(i) the other party is declared insolvent or bankrupt by a court of competent jurisdiction; (ii) a voluntary petition of bankruptcy is filed in any court of competent jurisdiction by such other party; or (iii) this Agreement is
assigned by such other party for the benefit of creditors. 

  

	 	(c)	Somaxon may terminate this Agreement as to any Product upon 30 days’ prior written notice in the event that (i) any Authority takes any action, or raises any
objection, that prevents Somaxon from importing, exporting, purchasing or selling such Product, or (ii) the AG License Period (as defined in the Settlement Agreement) has commenced. 

 

	 	(d)	Mylan may terminate this Agreement upon one hundred thirty five (135) days’ prior written notice at any time after the License Date (as defined in the
Settlement Agreement). 

 8.3 Product Discontinuation. 

Somaxon shall provide at least ninety (90) days’ advance notice if it intends to no longer order a Product due to that
Product’s discontinuance in the market. 
 8.4 Obligations on Termination. 

If this Agreement expires or is terminated in whole or in part for any reason, then (in addition to any other remedies either party may
have in the event of default by the other party): 
  

	 	(a)	Mylan shall cease the manufacture and packaging of Products and shall terminate any unfilled orders with third parties that Mylan may have previously submitted with
respect to Active Materials and Components to the extent such orders may be terminated or revoked; 

  

	 	(b)	Somaxon shall take delivery of and pay for all undelivered Products that are manufactured and/or Packaged pursuant to a Firm Order, at the price in effect at the time
the Firm Order was placed; provided that no such payment shall be due from Somaxon if this Agreement is terminated by Somaxon pursuant to Section 8.2(a), including, but not limited to, termination for Mylan’s failure to provide
Manufacturing Services in respect of such undelivered Products in accordance with the Specifications and Applicable Laws, including cGMPs, or if this Agreement is terminated by Somaxon pursuant to Section 8.2(b); 

 

	 	(c)	 Somaxon shall purchase, at Mylan’s out-of-pocket costs (without mark-up or surcharge), the Inventory applicable to the Products which was
purchased, produced or maintained by Mylan in contemplation of filling Firm Orders or in accordance with Section 5.1(b) prior to notice of termination being given; provided that no such payment shall be due from Somaxon if this Agreement is

	 	
terminated by Somaxon pursuant to Section 8.2(a), including, but not limited to, termination for Mylan’s failure to provide Manufacturing Services in accordance with the Specifications
and Applicable Laws, including cGMPs, or if this Agreement is terminated by Somaxon pursuant to Section 8.2(b); 

  

	 	(d)	if this Agreement is terminated by Somaxon pursuant to Section 8.2(a), including, but not limited to, termination for Mylan’s failure to provide Manufacturing
Services in accordance with the Specifications and Applicable Laws, including cGMPs, or if this Agreement is terminated by Somaxon pursuant to Section 8.2(b), Somaxon shall have the option but not the obligation to take title to, possession of,
all of any (i) undelivered Products and (ii) Inventory, including, but not limited to Active Materials and/or Components, in each case only after Somaxon has made any payment(s) which may be required, and Mylan shall cooperate with Somaxon
in the surrender, delivery and transfer of such items as promptly as is commercially reasonable, with any shipping and related expenses to be borne by Mylan; 

 

	 	(e)	if this Agreement is terminated for any reason other than by Somaxon pursuant to Sections 8.2(a) or 8.2(b), Somaxon shall have the obligation to take title to,
possession of, all of any (i) undelivered Products and (ii) Inventory, including, but not limited to Active Materials and/or Components, in each case only after Somaxon has made any payment(s) which may be required, and Mylan shall
cooperate with Somaxon in the surrender, delivery and transfer of such items as promptly as is commercially reasonable, with any shipping and related expenses to be borne by Somaxon; and 

 

	 	(f)	upon the request of Somaxon, and at Somaxon’s sole expense (unless this Agreement is terminated by Somaxon pursuant to Section 8.2(a), in which case it shall
be at Mylan’s expense), Mylan shall provide such assistance as is reasonably necessary to assist Somaxon in transferring the manufacture of the Product to another facility. 

 Any termination or expiration of this Agreement shall not prejudice any other remedies that the parties may have under this Agreement. For greater certainty, termination of this Agreement for any reason
shall not affect the obligations and responsibilities of the parties pursuant to Article 1, Article 8, Article 9, Article 10, Article 11, Article 12 and Article 13, and Sections 6.2, 6.3, 6.4, 6.5, 7.3, 7.4, 7.6, and 7.7, together with all other
provisions of this Agreement that are required to survive to give effect to Section 8.4 with respect to Manufacturing Services for pending Firm Orders and payment therefore, all of which survive any termination. 

ARTICLE 9. 

REPRESENTATIONS, WARRANTIES AND COVENANTS 
 9.1 Each Party. 
 Each party covenants, represents and warrants
that: 
  

	 	(a)	it has the full right and authority to enter into this Agreement, and that it is not aware of any impediment that would inhibit its ability to perform its obligations
hereunder; 

	 	(b)	this Agreement has been duly executed and delivered by, and is a legal and valid obligation binding upon such party, subject to the effects of bankruptcy, insolvency,
or other laws of general application affecting the enforcement of creditor rights and judicial principles affecting the availability of specific performance and general principles of equity, whether enforceability is considered a proceeding at law
or equity; and 

  

	 	(c)	the entry into, the execution and delivery of, and the carrying out and other performance of its obligations under this Agreement by such party (i) does not
conflict with, or contravene or constitute any default under, any agreement, instrument or understanding, oral or written, to which it is a party, including, but not limited to, its certificate of incorporation or by-laws, and (b) does not
violate Applicable Laws or any judgment, injunction, order or decree of any Authority having jurisdiction over it. 

 9.2
Somaxon Warranties. 
 Somaxon covenants, represents and warrants that: 

 

	 	(a)	the Specifications for each of the Products are its or its Affiliate’s property and that Somaxon may lawfully disclose the Specifications to Mylan;

  

	 	(b)	to the knowledge of Somaxon, the provision of the Manufacturing Services by Mylan in respect of any Product pursuant to this Agreement or use or other disposition of
any Product by Mylan as may be required to perform its obligations under this Agreement does not and will not infringe any Third Party Rights; 

  

	 	(c)	the Specifications for all Products conform to all Applicable Laws, including, without limitation, cGMPs; and 

 

	 	(d)	the Products, if labeled and manufactured in accordance with the Specifications and in compliance with Applicable Laws, including, without limitation cGMPs, may be
lawfully sold and distributed in every jurisdiction in which Somaxon markets such Products. 

 9.3 Mylan Warranties. 

Mylan covenants, represents and warrants that: 
  

	 	(a)	it shall perform the Manufacturing Services in accordance with the Specifications and all Applicable Laws, including cGMPs; 

 

	 	(b)	it has and will maintain throughout the term of this Agreement, the expertise, with respect to personnel and equipment, to fulfill the obligations established
hereunder, and has obtained all requisite material licenses, authorizations and approvals required by all Authorities to manufacture the Products; 

  

	 	(c)	the Manufacturing Site, all other facilities, all equipment and all personnel to be employed by Mylan in rendering the Manufacturing Services are currently, and will be
at the time each batch of Products is produced, qualified in accordance with all Applicable Laws, including, but not limited to, cGMPs; 

  

	 	(d)	there are no pending or uncorrected citations or adverse conditions noted in any inspection of the Manufacturing Site or any other facilities to be employed by Mylan in
rendering the Manufacturing Services which would cause the Products to be misbranded or adulterated within the meaning of the Act, including, but not limited to, all cGMPs; 

 

	 	(e)	to the knowledge of Mylan, the Manufacturing Services and the contributions of Mylan to the manufacture of the finished Product in accordance with this Agreement do not
and will not infringe any Third Party Rights; 

  

	 	(f)	all employees, consultants, subcontractors and agents performing services for Mylan hereunder have assigned, or will assign, in writing to Mylan all of their right,
title and interest in, to and under any and all Inventions directly relating to the Product; 

  

	 	(g)	all Product manufactured and supplied to Somaxon under this Agreement shall not be adulterated or misbranded within the meaning of the Act or other Applicable Laws as
of the time that the finished Product is transferred to the carrier at Mylan’s shipping point; and 

  

	 	(h)	all Products manufactured and supplied to Somaxon under this Agreement shall have the minimum shelf life specified for such Product in the Specifications and shall be
shipped to Somaxon not more than *** after the date of their manufacture). 

  
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this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 9.4 Debarred Persons. 

Mylan covenants that it will not in the performance of its obligations under this Agreement use the services of any person debarred or
suspended under 21 U.S.C. §335(a) or (b). Mylan represents that it does not currently have, and covenants that it will not hire, as an officer or an employee any person who has been convicted of a felony under the laws of the United States for
conduct relating to the regulation of any drug product under the Act. 
 9.5 Permits. 

 

	 	(a)	Somaxon shall be solely responsible for obtaining or maintaining, on a timely basis, any permits or other regulatory approvals in respect of the Products or the
Specifications, including, without limitation, all marketing and post-marketing approvals. 

  

	 	(b)	Mylan shall be solely responsible for obtaining and maintaining all permits, site licenses or other regulatory approvals for the manufacture of Products. In carrying
out its obligations under this Agreement, Mylan shall comply with all applicable environmental and health and safety Laws (current or as amended or added), and shall be solely responsible for determining how to comply with same in carrying out these
obligations. Notwithstanding the foregoing, nothing provided to Mylan by Somaxon, by way of materials, specifications, processing information or otherwise, is meant to diminish Mylan’s responsibility for such compliance. Mylan shall promptly
notify Somaxon of any circumstances, including the receipt of any notice, warning, citation, finding, report or service of process or the occurrence of any release, spill, upset, or discharge of hazardous substances (as may be defined under
Applicable Laws) relating to Mylan’s compliance with this Section 9.5(b) and which relates to the manufacture of the Products. 

 9.6 Compliance with Laws. 
 Each party, in connection with its
performance under this Agreement, shall comply with all Applicable Laws. 
 9.7 No Other Warranty. 

NEITHER PARTY MAKES ANY WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, BY FACT OR LAW, OTHER THAN THOSE EXPRESSLY SET FORTH IN
THIS AGREEMENT. MYLAN MAKES NO WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR WARRANTY OF MERCHANTABILITY WITH RESPECT TO THE PRODUCTS. 

 ARTICLE 10. 
 REMEDIES AND INDEMNITIES 
 10.1 Limitation of Liability. 

UNDER NO CIRCUMSTANCES WHATSOEVER SHALL EITHER PARTY BE LIABLE TO THE OTHER IN CONTRACT, TORT, NEGLIGENCE, BREACH OF STATUTORY DUTY OR
OTHERWISE FOR ANY DIRECT OR INDIRECT LOSS OF PROFITS, OF PRODUCTION, OF ANTICIPATED SAVINGS, OF BUSINESS OR GOODWILL OR FOR ANY LIABILITY, DAMAGE, COSTS OR EXPENSE OF ANY KIND INCURRED BY THE OTHER PARTY OF A SPECIAL, INCIDENTIAL, INDIRECT OR
CONSEQUENTIAL NATURE. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, THE LIMITATIONS AND EXCLUSIONS OF LIABILITY CONTAINED IN THE PRECEDING SENTENCE SHALL NOT APPLY WITH RESPECT INDEMNIFICATION OBLIGATIONS UNDER SECTIONS 10.2
AND 10.3, BREACHES OF ARTICLE 11, OR CLAIMS OF INTELLECTUAL PROPERTY INFRINGEMENT BETWEEN THE PARTIES. 
 10.2 Mylan. 

Mylan agrees to defend, indemnify and hold Somaxon, its agents, employees, officers, directors, Affiliates and representatives harmless
against any and all losses, damages, costs, claims, demands, judgments and liability to, from and in favor of third parties resulting from or relating to (a) a failure by Mylan to provide the Manufacturing Services in accordance with the
Specifications, cGMPs, or Applicable Laws, (b) the grossly negligent acts or omissions or willful misconduct of Mylan, or (c) any other breach of this Agreement by Mylan, including, without limitation, any representation, warranty or
covenant contained herein, except to the extent that any such losses, damages, costs, claims, demands, judgments and liability are due to the negligence or wrongful act(s) of, or breach of this Agreement by, Somaxon, its agents, employees, officers,
directors, Affiliates or representatives. 
 10.3 Somaxon. 

Somaxon agrees to defend, indemnify and hold Mylan, its agents, employees, officers, directors, Affiliates and representatives harmless
against any and all losses, damages, costs, claims, demands, judgments and liability to, from and in favor of third parties resulting from or relating to (a) the grossly negligent acts or omissions or willful misconduct of Somaxon, or
(b) any breach of this Agreement by Somaxon, including, without limitation, any representation, warranty or covenant contained herein, except to the extent that any such losses, damages, costs, claims, demands, judgments and liability are due
to the negligence or wrongful act(s) of, or breach of this Agreement by, Mylan, its agents, employees, officers, directors, Affiliates or representatives. 
 10.4 Indemnification Procedure. 
 Each indemnified party (the
“Indemnitee”) agrees to give the indemnifying party (the “Indemnitor”) prompt written notice of any claims or discovery of fact upon which the 

 
Indemnitee intends to base a request for indemnification (“Claims”). Notwithstanding the foregoing, the failure to give timely notice to the Indemnitor shall not release the
Indemnitor from any liability to the Indemnitee to the extent the Indemnitor is not materially prejudiced thereby. The Indemnitor shall have sole control over, and shall assume all expenses with respect to, the defense, settlement, adjustment or
compromise of any Claim as to which this Section 10 requires it to indemnify the other, provided that: (a) the Indemnitee may, if it so desires, employ counsel at its own expense to participate and assist in the handling of such
Claim; and (b) the Indemnitor shall obtain the prior written approval of the Indemnitee, which shall not be unreasonably withheld, before entering into any settlement, adjustment or compromise of such claim or ceasing to defend against such
Claim. 
 ARTICLE 11. 
 CONFIDENTIALITY 
 11.1 Confidentiality. 

The parties agree that, for the term of this Agreement and for seven years thereafter (other than for trade secrets, for which the
confidentiality obligations set forth herein shall last as long as trade secret law shall allow), all non-public, proprietary or “confidential” disclosures, know-how, data, and technical, financial and other information of any nature
whatsoever (collectively, “Confidential Information”), disclosed or submitted, either orally or in writing (including, without limitation, by electronic means) or through observation, by one party (the “Disclosing Party”) to the
other party (the “Receiving Party”) hereunder, including, without limitation, the terms of this Agreement, shall be received and maintained by the Receiving Party in strict confidence, shall not be used for any purpose other than the
purposes expressly contemplated by this Agreement, and shall not be disclosed to any third party (including, without limitation, in connection with any publications, presentations or other disclosures). Notwithstanding the foregoing, (a) either
party may disclose on a need-to-know basis the existence of this Agreement and the terms hereof to any bona fide potential acquirers, corporate partners, investors or financial advisors, provided that any such potential acquirer, corporate partner,
investor or financial advisor is bound by confidentiality and non-use restrictions relating to the Confidential Information of the other party that are at least as stringent as those contained herein; (b) Somaxon may disclose that Mylan is a
supplier to Somaxon with respect to the Product; (c) Mylan may disclose the fact that Somaxon is a client of Mylan but shall not disclose any other information relating to any product for which Mylan provides services to Somaxon. The Receiving
Party will promptly notify the Disclosing Party upon discovery of any unauthorized use or disclosure of the Disclosing Party’s Confidential Information. Confidential Information belongs to and shall remain the property of the Disclosing Party.

 11.2 Exceptions. 
 The provisions of Section 11.1 shall not apply to any information of the Disclosing Party which can be shown by competent evidence by the Receiving Party: 

 

	 	(a)	to have been known to or in the possession of the Receiving Party prior to the date of its actual receipt from the Disclosing Party as evidenced by the Receiving
Party’s written records; 

	 	(b)	to be or to have become readily available to the public other than through any act or omission of any party in breach of any confidentiality obligations owed to the
Disclosing Party; 

  

	 	(c)	to have been disclosed to the Receiving Party, other than under an obligation of confidentiality, by a third party which had no obligation to the Disclosing Party not
to disclose such information to others; or 

  

	 	(d)	to have been independently developed by the Receiving Party without use of or reference or access to the Disclosing Party’s Confidential Information as evidenced
by the Receiving Party’s written records. 

 11.3 Authorized Disclosure. 

The Receiving Party may disclose the Disclosing Party’s Confidential Information hereunder solely to the extent (a) approved by
the Disclosing Party; or (b) the Receiving Party is legally required to disclose such Confidential Information; provided, however, that prior to any such required disclosure, the Receiving Party will, except where not possible, give reasonable
advance written notice to the Disclosing Party of such disclosure so that the Disclosing Party may seek a protective order and or other appropriate remedy or waive compliance with the confidentiality provisions of this Article 11 and will use good
faith efforts to secure confidential treatment of such Confidential Information required to be disclosed. In the event that a party makes a disclosure of Confidential Information deemed necessary under applicable federal or state securities laws or
any rule or regulation of a nationally recognized securities exchange, the party shall use good faith efforts to obtain confidential treatment for the disclosure to the extent available. The party making such a disclosure shall provide the other
party with reasonable advance written notice of its intent to make such a disclosure and shall provide the other party the opportunity to comment on any confidential treatment requested prior to the submission. 

 11.4 Return of Confidential Information. 

The Receiving Party shall keep the Disclosing Party’s Confidential Information in appropriately secure locations. Upon the
expiration or termination of this Agreement or at any time upon the Disclosing Party’s request, the Receiving Party shall destroy or return to the Disclosing Party, at the Disclosing Party’s written request, all Confidential Information
belonging to the Disclosing Party possessed by the Receiving Party, or its officers, directors, employees, agents and consultants; provided, however, that a Receiving Party may retain any Confidential Information contained in computer records or
files that have been created pursuant to the Receiving Party’s automatic archiving and back-up procedures, the removal of which is not technically reasonable, and one (1) copy of the Disclosing Party’s Confidential Information in an
appropriately secure location, which by Applicable Laws it must retain, for so long as such Applicable Laws require such retention but thereafter shall dispose of such retained Confidential Information in accordance with Applicable Laws or this
Section 11.4. 
 11.5 Equitable Relief. 
 The Receiving Party agrees that, due to the unique nature of the Confidential Information, the unauthorized disclosure or use of the Confidential Information of the Disclosing Party may cause irreparable
harm and significant injury to the Disclosing Party, the extent of which may be difficult to ascertain and for which there may be no adequate remedy at law. Accordingly, the Receiving Party agrees that the Disclosing Party, in addition to any other
available remedies, shall have the right to seek an immediate injunction and other equitable relief enjoining any breach or threatened breach of this Agreement. The Receiving Party shall notify the Disclosing Party in writing immediately upon the
Receiving Party’s becoming aware of any such breach or threatened breach. 
 ARTICLE 12. 

DISPUTE RESOLUTION 

12.1 Disputes. 

In the event of any dispute arising out of or in connection with this Agreement (other than a dispute determined in accordance with
Sections 6.1(b) or 7.9(f)), the parties shall first try to solve it amicably. In this regard, any party may send a notice of dispute to the other, and each party shall appoint, within *** from receipt of such notice of dispute, a single
representative having full power and authority to solve the dispute. The representatives so designated shall meet as necessary in order to solve such dispute. If these representatives fail to solve the matter within one month from their appointment,
or if a party fails to appoint a representative within the *** period set forth above, such dispute shall immediately be referred to the Chief Operating Officer or Senior Vice President, Operations (or such other officer of comparable authority as
they may designate) of each party who will meet and discuss as necessary in order to try to solve the dispute amicably. Should the parties fail to reach a resolution under this Section 12.1, their dispute may thereafter be referred to a court
of competent jurisdiction in the State of Delaware. 

  
 ***Certain information on
this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 ARTICLE 13. 
 MISCELLANEOUS 
 13.1 Inventions. 

 

	 	(a)	For the term of this Agreement, Somaxon hereby grants to Mylan a non-exclusive, royalty-free, non-transferable, non-sublicensable license of Somaxon’s Intellectual
Property that relates to the Product solely to perform the Manufacturing Services. 

  

	 	(b)	All Intellectual Property generated or derived solely by Mylan in the course of performing the Manufacturing Services shall, in each case to the extent determined to by
Applicable Laws relating to inventorship, authorship, and/or ownership relating to rights in and to such Intellectual Property, be the exclusive property of Mylan (the “Intellectual Property Rights”). Mylan hereby grants to Somaxon,
a perpetual, paid-up, non-exclusive, royalty-free, transferable and sublicensable license of Mylan’s Intellectual Property Rights, related solely to Somaxon’s Product, to have manufactured the Products and to use, import, export, offer to
sell, and sell the same. 

  

	 	(c)	Each party shall be solely responsible for the costs of filing, prosecution and maintenance of patents and patent applications on its own Inventions.

 13.2 Intellectual Property. 
 Subject to Section 13.1, all Intellectual Property of Somaxon shall be owned by Somaxon and all Intellectual Property of Mylan shall be owned by Mylan. Somaxon and Mylan hereby acknowledge that
neither party has, nor shall it acquire, any interest in any of the other party’s Intellectual Property unless otherwise expressly agreed to in writing. Each party agrees not to use any Intellectual Property of the other party, except as
specifically authorized by the other party or as required for the performance of its obligations under this Agreement. 
 13.3 Independent
Contractors. 
 The parties are independent contractors and this Agreement shall not be construed to create between
Mylan and Somaxon any other relationship such as, by way of example only, that of employer-employee, principal agent, joint-venturer, co-partners or any similar relationship, the existence of which is expressly denied by the parties hereto, and
nothing in this Agreement shall be construed to give either party the power or authority to act for, bind, or commit the other party. 
 13.4
Trademarks. 
 Somaxon and Mylan hereby acknowledge that neither party has, nor shall it acquire, any interest in any
of the other party’s trademarks or trade names unless otherwise 

 
expressly agreed to in writing. Each party agrees not to use any trademark or trade name of the other party, except as specifically authorized by the other party or as required for the
performance of its obligations under this Agreement, including without limitation the right to include Somaxon’s trademarks or trade names on any Product or any Components thereof purchased or manufactured by Mylan for Somaxon hereunder.

 13.5 No Waiver. 
 Either party’s failure to require the other party to comply with any provision of this Agreement shall not be deemed a waiver of such provision or any other provision of this Agreement. No waiver
shall be effective unless made in writing and signed by the waiving party. 
 13.6 Assignment. 

 

	 	(a)	Mylan may not assign this Agreement or any of its rights or obligations hereunder except with the written consent of Somaxon, such consent not to be unreasonably
withheld; provided, however, that Mylan may arrange for subcontractors to perform specific testing services arising under this Agreement without the consent of Somaxon; provided, further, that Mylan shall provide advance notice of the name and
function of any such subcontractor and shall ensure such subcontractor’s adherence to the terms of this Agreement, including, but not limited to, the obligations of confidentiality set forth in Article 11. 

 

	 	(b)	Somaxon may not assign this Agreement or any of its rights or obligations hereunder, except with the written consent of Mylan, such consent not to be unreasonably
withheld; provided, however that Somaxon may assign its rights or obligations under this Agreement to any entity or person that acquires all or substantially all of Somaxon’s interest relating to this Agreement or to whom it licenses
substantial rights to the Products, in each case in any one or more transactions in any form. 

  

	 	(c)	Notwithstanding the foregoing provisions of this Section 13.6, either party may assign this Agreement to any of its Affiliates or to a successor to, purchaser or
licensee of all or substantially all of its business, provided that such assignee agrees in writing to be bound hereunder. For purposes of the foregoing, the phrase “all or substantially all of its business” shall mean, with respect to
Somaxon, the business of Somaxon relating to the Product and not necessarily any other products to which Somaxon may have rights. 

 13.7 Force Majeure. 
 Neither party shall be liable for the failure to perform its obligations under this Agreement, except any obligation to pay any undisputed amounts then due, if such failure is occasioned by a cause or
contingency beyond such party’s reasonable control, including, but not limited to, the following if such cause or contingency beyond such party’s reasonable control: strikes or other labor disturbances, lockouts, riots, quarantines,
communicable disease outbreaks, wars, acts of terrorism, fires, floods, storms, lack of or inability to obtain fuel, power or components, or compliance with any order or regulation of any Authority acting within color of right (a “Force
Majeure Event”). A party claiming a right to excused performance under this Section 13.7 shall promptly notify the other party in writing of the extent of its inability to perform, which notice shall specify the occurrence beyond its
reasonable control that prevents such performance. Notwithstanding the foregoing, if a Force Majeure Event prevents a party’s performance under this Agreement for an aggregate of ***, the other party may terminate this Agreement upon written
notice to the non-performing party. 
 13.8 Notices. 
 Any notice, approval, instruction or other written communication required or permitted hereunder shall be sufficient if made or given to the other party by personal delivery, by telecopier or facsimile
communication or by sending the same by first class mail, postage prepaid to the mailing address, or telecopier or facsimile number set forth below: 
 If to Somaxon: 
 Somaxon Pharmaceuticals, Inc. 

10935 Vista Sorrento Parkway, Suite 250 
 San Diego, CA 92130 
 Attention: Senior Vice President and General Counsel

 Telecopier No.: 858-509-1761 
 If to Mylan: 
 Mylan Pharmaceuticals Inc. 

781 Chestnut Ridge Road 
 Morgantown, WV 26505 
 Attention: Senior Vice President, North America Operations

 Telecopier No.: 304-598-5419 
 with copy to: 
 Mylan Inc. 

1500 Corporate Drive 
 Canonsburg, PA 15317 
 Attention: Senior Vice President and Global General Counsel
– Legal Operations 
 Facsimile No.: (724) 514-1878 

  
 ***Certain information on
this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 or to such other addresses or telecopier or facsimile numbers provided to the other party in accordance with
the terms of this Section 13.8. Notices or written communications made or given by personal delivery or by telecopier or facsimile shall be deemed to have been sufficiently made or given when sent (receipt acknowledged), or if mailed, five days
after being deposited in the United States or Canadian mail, postage prepaid or upon receipt, whichever is sooner. 
 13.9
Severability. 
 If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid,
illegal or unenforceable in any respect, such determination shall not impair or affect the validity, legality or enforceability of the remaining provisions hereof, and each provision is hereby declared to be separate, severable and distinct.

 13.10 Entire Agreement. 
 This Agreement, together with the Quality Agreement and the Settlement Agreement, constitutes the full, complete, final and integrated agreement between the parties hereto relating to the subject matter
hereof and supersedes all previous written or oral negotiations, commitments, agreements, transactions or understandings with respect to the subject matter hereof. Any modification, amendment or supplement to this Agreement must be in writing and
signed by authorized representatives of both parties. 
 13.11 Other Terms. 

The parties agree that no terms, provisions or conditions of any purchase order or other business form or written authorization used by
Somaxon or Mylan will have any effect on the rights, duties or obligations of the parties under or otherwise modify this Agreement, regardless of any failure of Somaxon or Mylan to object to such terms, provisions, or conditions unless such document
specifically refers to this Agreement and is signed by both parties. 
 13.12 No Third Party Benefit or Right. 

For greater certainty, nothing in this Agreement shall confer or be construed as conferring on any third party any benefit or the right
to enforce any express or implied term of this Agreement. 
 13.13 Execution in Counterparts. 

This Agreement may be executed in two counterparts, by original or facsimile signature, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. 

 13.14 Governing Law. 
 This Agreement shall be construed and enforced under the laws of the State of Delaware, without regard to the United Nations Convention on Contracts for the International Sale of Goods and without giving
effect to any choice of laws rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Delaware, to the rights and duties of the parties. 

[REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]

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

			
	MYLAN PHARMACEUTICALS INC.
		
	by	 	/s/ Anthony R. Mauro
	
	its President NA & MPI
	
	SOMAXON PHARMACEUTICALS, INC.
		
	By	 	/s/ Richard W. Pascoe
	
	its President and CEO

 SCHEDULE A 

PRODUCTS 
 Doxepin
3 mg and 6 mg tablets, Packaged and supplied in accordance with the Specifications for commercial sale in the United States. 

 SCHEDULE B 

PROCEDURE FOR SHIPMENT AND 
 ACCEPTANCE OF PRODUCT SPECIFICATIONS 
 Prior to the commencement of commercial
manufacturing of Product under this Agreement Somaxon shall provide Mylan with originally executed copies of the FDA approved Specifications. If the Specifications provided are subsequently amended, then Somaxon shall provide Mylan with revised and
originally executed copies of such revised Specifications. Upon acceptance of the revised Specifications, Mylan shall provide Somaxon with a signed and dated receipt evidencing such acceptance of the revised Specifications by Mylan. 

 SCHEDULE C 

MINIMUM RUN QUANTITY AND FEES 
  

							
	 Dosage Strength
	  	Bottle Size	 	Minimum Run Quantities	 	Transfer Cost / Fees
	 Doxepin 3mg tablet
	  	***	 	***	 	***
	 Doxepin 3mg tablet
	  	***	 	***	 	***
	 Doxepin 6mg tablet
	  	***	 	***	 	***
	 Doxepin 6mg tablet
	  	***	 	***	 	***

  
 ***Certain information on
this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 SCHEDULE D 

ACTIVE MATERIALS 
  

					
	 Active Material
	  	Supplier	 
	 Doxepin HCI
	  	 	*	** 

  
 ***Certain information on
this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 SCHEDULE E 

BATCH NUMBERING AND EXPIRATION DATES 
 Each batch of Product manufactured by Mylan will bear a unique packaging lot number using the Mylan batch numbering system. This number will appear on the Product label and on the batch documentation.

 Mylan will calculate the expiration date for each batch of Product by adding the expiration period, supplied by Somaxon to the date of
manufacture of each batch. The expiration date will appear on the Product label. 

 SCHEDULE F 

QUALITY AGREEMENT 
 [To be attached when completed]

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