Document:

exv10w1

Exhibit 10.1

The Company has redacted certain confidential information in this agreement in reliance upon
its confidential treatment request that it will file with the Securities and Exchange Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934. In this agreement, we indicate
each redaction by use of asterisk *.

FIRST

AMENDMENT

to the

GAS PURCHASE AGREEMENT

between

WILLIAMS PRODUCTION RMT COMPANY LLC

and

RILEY NATURAL GAS COMPANY

and

PETROLEUM DEVELOPMENT CORPORATION

     This First Amendment (“Amendment”) to the Gas Purchase Agreement dated June 1, 2006 by and
between WILLIAMS PRODUCTION RMT COMPANY LLC, formerly known as WILLIAMS PRODUCTION RMT COMPANY
(“Buyer”) and RILEY NATURAL GAS COMPANY (“Riley”) and PETROLEUM DEVELOPMENT CORPORATION (“PDC”)
(the “Agreement”) is made and entered into effective as of the 1st day of June, 2011
(the “Effective Date of this Amendment”). PDC together with Riley, collectively, “Seller,” and
Seller together with Buyer, may be referred to herein as the “Parties,” and individually, a
“Party”. All initially capitalized terms used herein, but not defined herein, shall have the
respective meanings given to such terms in the Agreement.

RECITALS

     WHEREAS, Buyer and Seller are Parties to the Agreement concerning the purchase and commitment
of Seller’s Gas; and

     WHEREAS, Buyer and Seller desire to amend the Agreement as stated below.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this
Amendment, the Parties agree that the Agreement will be amended as follows:

AGREEMENT

	 	1.	 	Seller’s Commitment. Section 1.1 shall be deleted in its entirety and replaced
with the following:
	 
	 	 	 	Seller commits to Buyer to sell and deliver to Buyer, on a Firm basis, Seller’s present
and future right, title, and interest in the Gas Volume Committed to this Agreement and
outlined on Exhibit F, that Seller delivers to the Receipt Point(s) from the
Area of Interest (“Seller’s Gas”) described on Exhibit B, subject to the terms
of this Agreement.

	 
	 	2.	 	Area of Interest. Seller’s Area of Interest shall be as described on Exhibit
B, attached hereto and made a part hereof.
	 
	 	3.	 	Buyer’s Treating Service. Section 1.6 shall be deleted in its entirety and
replaced with the following:
	 
	 	 	 	Seller’s Gas at the Receipt Point(s) may have a CO2 content that exceeds the
most restrictive quality specification for CO2 content required from time to
time by the Interconnecting Pipeline(s). Buyer shall Treat Seller’s Gas to reduce its
CO2 content to no more than two percent (2.00%) by volume at the Delivery
Point(s), provided the CO2 content of Seller’s Gas does not exceed four
percent (4.00%) by volume at the Receipt Point(s). The fee for Treating Seller’s Gas
that does not exceed three percent (3%) CO2 by volume at the Receipt Point(s) is
incorporated into the Gathering and Processing Fee. In the event the CO2 content of
Seller’s

 

 

	 	 	 	Gas exceeds three percent (3%) by volume at the Receipt Point(s), the Excess CO2
Treating Fee as set forth in Exhibit E shall be payable from Seller to Buyer. In
no event, however, is Buyer obligated to accept deliveries of Seller’s Gas at a given
Receipt Point if the CO2 content of Seller’s Gas at that Receipt Point
exceeds four percent (4.00%) by volume. If the weighted arithmetic average quality
specification for CO2 content of the Interconnecting Pipeline(s) should ever
be reduced below two and thirty-one hundredths percent (2.31%) per Mcf, then the Parties
shall within thirty (30) Days of written notice thereof from Buyer, renegotiate, subject
to Section 1.9 of this Agreement, the Gathering and Processing Fee. If the Parties are
unable to renegotiate the Gathering and Processing Fee, then Buyer may refuse to accept
further deliveries of Seller’s Gas affected thereby or Buyer may at its option, upon
thirty (30) Days’ prior written notice to Seller, release such affected Gas from the
provisions of this Agreement. Buyer’s right to renegotiate the Gathering and Processing
Fee or, upon the failure of such renegotiation, to refuse to accept further deliveries
of Seller’s Gas affected thereby or release such affected Gas from the provisions
hereof, shall apply to each successive reduction of the most restrictive quality
specification for CO2 content of the Interconnecting Pipeline(s) that is
below two and thirty-one hundredths percent (2.31%) per Mcf.
	 
	 	4.	 	Service and Fee Description. Exhibit E shall be deleted in its entirety
and replaced with Exhibit E attached hereto and made a part hereof.
	 
	 	5.	 	Gas Volumes Committed. Exhibit F shall be deleted in its entirety and
replaced with Exhibit F attached hereto and made a part hereof.
	 
	 	6.	 	Standard Terms and Conditions. Exhibit A of the Agreement is amended to
include the following new definition:

	 	A.	 	57 Area of Interest shall mean that surface area described on Exhibit B.

     This Amendment may be executed in counterparts, each of which taken together shall constitute
one and the same instrument.

     This Amendment shall be governed by and construed and enforced in accordance with the laws of
the same jurisdiction as apply to the Agreement.

     Except as hereby amended, all terms and conditions contained in the Agreement shall remain in
full force and effect. All future references to the Agreement shall be deemed to include this
Amendment.

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment to be effective as of the
Effective Date of this Amendment.

	 	 	 
	“Buyer”	 	“Seller”
	WILLIAMS PRODUCTION RMT COMPANY LLC	 	RILEY NATURAL GAS COMPANY
	 
	 	 
	By: /s/ Neal Buck

	 	By: /s/George Courcier
	Printed Name: Neal Buck

	 	Printed Name: George Courcier
	Title: Vice President

	 	Title: Vice President
	 
	 	 
	 

	 	“Seller”

PETROLEUM DEVELOPMENT CORPORATION
	 
	 	 
	 

	 	By: /s/George Courcier
	 

	 	Printed Name: George Courcier
	 

	 	Title: Vice President

 

 

EXHIBIT B

TO FIRST AMENDMENT

TO THE GAS PURCHASE AGREEMENT

DATED AS OF JUNE 1, 2006

between

WILLIAMS PRODUCTION RMT COMPANY LLC

and

RILEY NATURAL GAS COMPANY

and

PETROLEUM DEVELOPMENT CORPORATION

AREA OF INTEREST

All of Seller’s right, title, or interest in lands and the right to produce oil and/or Gas
therefrom whether arising from fee ownership, working interest ownership, mineral ownership,
leasehold ownership, or arising from any pooling, unitization or communitization of any of the
foregoing rights in the acreage lying within the following townships in Garfield County, Colorado:

6S-97W

Section 12: S2

Section 13: NE

Section 24: ALL

Section 25: ALL

Section 36: Lot 1, Lot 2, Lot 3, Lot 4 (ada ALL)

7S-97W

Section 1: ALL

Section 2: E2E2

Section 12: N2, N2N2S2, N2N2S2N2S2

7S-96W

Section 6: S2, NE

Section 7: N2, SE

Section 13: Lot 4, Lot 10, Lot 11, Lot 12, Lot 13

Section 14: NESE, SESE

Section 24: Lot 2, Lot 3, Lot 4

Section 17: NW

Section 18: N2

6S-96W

Section 4: Part of Lot 1, Lot 5, Part of SENW, Part of SWNW, Part of NWSW, Part of NWSW, Lot 10,

Part of Lot 11, Lot 12

Section 5: Lot 1, Lot 8, Lot 9, Lot 16, Lot 17 (ada E2E2)

Section 7: ALL

Section 8: Lot 1, Lot 3, Lot 4, Lot 5, Lot 7, Lot 8, Lot 13, Lot 14, Lot 15

Section 9: Lot 10, Lot 11, Lot 12, Lot 13 (ada SW)

Section 16: Lot 13, Lot 14, NESW, SESW (ada SW)

Section 17: Lot 2, Lot 4, Lot 5, Lot 9, Lot 10, Lot 11, Lot 12, Lot 14, Lot 15, Lot 16, Lot 17 (ada W2)

 

 

EXHIBIT E

TO FIRST AMENDMENT

TO THE GAS PURCHASE AGREEMENT

DATED AS OF JUNE 1, 2006

between

WILLIAMS PRODUCTION RMT COMPANY LLC

and

RILEY NATURAL GAS COMPANY

and

PETROLEUM DEVELOPMENT CORPORATION

SERVICE AND FEE DESCRIPTION

	I.	 	For deliveries from June 1, 2006 through May 31, 2009, the Gathering and Processing Fees and
the Excess CO2 Fee will be fixed at the values actually charged in the applicable
Settlement Statements for the respective months during that period.
	 
	II.	 	For deliveries from and after June 1, 2009, the following fees will apply, subject to the
annual escalation of fees described in III. below:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	FL&U	 	FL&U	 	 	 	 
	Gathering and	 	Gathering and	 	(Low pressure	 	(High pressure	 	Low Delivery	 	Excess CO2
	Processing Fee	 	Processing Fee	 	receipt points)	 	receipt points)	 	Fee	 	Treating Fee
	$ [*] per MMBtu
Received at a Low
Pressure Receipt Point

	 	$ [*]
per MMBtu
Received at a High
Pressure Receipt
Point
	 	Actual usage
(initially [*] %)
	 	Actual usage
(initially
[*]
%)
	 	$[*]
per
Accounting Period
per Receipt Point
	 	$ [*]
per Mcf for
each 1.00%, or part
thereof, Greater
than 3.00%

	III.	 	Beginning on June 1, 2010, and annually at the beginning of each Contract Year thereafter,
Buyer shall adjust the Gathering and Processing Fees and the Excess CO2 Treating
Fee stated above by a percentage equal to the annual average percentage change, from the
preceding Contract Year, in the cumulative implicit Gross Domestic Product price deflator
(“GDPDEF”) computed and published by the U.S. Department of Commerce. Provided, however, that
the adjustment shall never result in the Gathering and Processing Fees and the Excess
CO2 Treating Fee being less than the fees stated in the table below.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	FL&U	 	FL&U	 	 	 	 
	Gathering and	 	Gathering and	 	(Low pressure	 	(High pressure	 	Low Delivery	 	Excess CO2
	Processing Fee	 	Processing Fee	 	receipt points)	 	receipt points)	 	Fee	 	Treating Fee
	$ [*] per MMBtu
Received at a Low
Pressure Receipt Point

	 	$ [*] per MMBtu
Received at a High Pressure
Receipt Point
	 	Actual usage
(initially [*] %)
	 	Actual usage
(initially
[*] %)
	 	$ [*]
per Accounting
Period per Receipt
Point
	 	$ [*]
per Mcf for
each 1.00%, or part
thereof, Greater
than 3.00%

An example of the annual average percentage change in the GDPDEF factor calculation for the
adjustment of rates is shown below:

 

 

	 	 	 	 	 

	Current Contract Year
	 	 	 	 
	That year (2nd Quarter)
	 	 	107.215	 
	That year (1st Quarter)
	 	 	107.021	 
	Prior year (4th Quarter)
	 	 	106.515	 
	Prior year (3rd Quarter)
	 	 	105.942	 
	Annual Average GDPDEF:
	 	 	106.673	 
	 
	 	 	 	 
	Preceding Contract Year
	 	 	 	 
	That year (2nd Quarter)
	 	 	106.754	 
	That year (1st Quarter)
	 	 	106.012	 
	Prior year (4th Quarter)
	 	 	105.211	 
	Prior year (3rd Quarter)
	 	 	104.262	 
	Annual Average GDPDEF:
	 	 	105.560	 
	 
	 	 	 	 
	Annual Average GDPDEF — Current Contract Year:
	 	 	106.673	 
	Annual Average GDPDEF — Preceding Contract Year:
	 	 	105.560	 
	Annual Average Percentage Change Effective for the current Contract Year:
	 	 	 	 
	106.673 / 105.560 =
	 	 	1.011	 
	Gathering and Processing Fee preceding Contract Year:
	 	$	[*]	 
	Adjusted Gathering and Processing Fee, current Contract Year;
	 	$	[*]	 

 

 

EXHIBIT F

TO FIRST AMENDMENT

TO THE GAS PURCHASE AGREEMENT

DATED AS OF JUNE 1, 2006

between

WILLIAMS PRODUCTION RMT COMPANY LLC

and

RILEY NATURAL GAS COMPANY

and

PETROLEUM DEVELOPMENT CORPORATION

GAS VOLUMES COMMITTED

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Seller's Original	 	Adjustment to Seller’s	 	Seller's Amended
	 	 	 	 	 	 	Annual Volume	 	Annual Volume	 	Annual Volume
	Contract Year	 	(in MMBtu)	 	(in MMBtu)	 	(in MMBtu)
	 	1.	 	 	June 1, 2006 — August 31, 2006

	 	 	1,978,000	 	 	no change
	 	no change

	 	1.	 	 	September 1, 2006 — May 31, 2007

	 	 	15,578,760	 	 	no change
	 	no change

	 	2.	 	 	June 1, 2007 — May 31, 2008

	 	 	22,890,878	 	 	no change
	 	no change

	 	3.	 	 	June 1, 2008 — May 31, 2009

	 	 	32,393,817	 	 	no change
	 	no change

	 	 	 	 	Sub Total: Contract Year 1-3

	 	 	72,841,455	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	4.	 	 	June 1, 2009 — May 31, 2010

	 	 	35,164,648	 	 	 	(15,164,648	)	 	 	20,000,000	 
	 	5.	 	 	June 1, 2010 — May 31, 2011

	 	 	35,415,768	 	 	 	(15,415,768	)	 	 	20,000,000	 
	 	6.	 	 	June 1, 2011 — May 31, 2012

	 	 	36,204,441	 	 	 	(16,204,441	)	 	 	20,000,000	 
	 	7.	 	 	June 1, 2012 — May 31, 2013

	 	 	36,588,969	 	 	 	(16,588,969	)	 	 	20,000,000	 
	 	8.	 	 	June 1, 2013 — May 31, 2014

	 	 	31,880,469	 	 	 	12,300,000	 	 	 	44,180,469	 
	 	9.	 	 	June 1, 2014 — May 31, 2015

	 	 	25,068,839	 	 	 	12,300,000	 	 	 	37,368,839	 
	 	10.	 	 	June 1, 2015 — May 31, 2016

	 	 	19,328,393	 	 	 	12,300,000	 	 	 	31,628,393	 
	 	11.	 	 	June 1, 2016 — May 31, 2017

	 	 	14,757,224	 	 	 	12,300,000	 	 	 	27,057,224	 
	 	12.	 	 	June 1, 2017 — May 31, 2018

	 	 	11,887,191	 	 	 	12,300,000	 	 	 	24,187,191	 
	 	13.	 	 	June 1, 2018 — May 31, 2019

	 	 	9,750,519	 	 	 	12,300,000	 	 	 	22,050,519	 
	 	14.	 	 	June 1, 2019 — May 31, 2020

	 	 	7,635,618	 	 	 	12,300,000	 	 	 	19,935,618	 
	 	15.	 	 	June 1, 2020 — May 31, 2021

	 	 	5,771,836	 	 	 	12,300,000	 	 	 	18,071,836	 
	 	 	 	 	Sub Total: Contract Year 4-15

	 	 	269,453,915	 	 	 	35,026,174	 	 	 	304,480,089exv4w1

Exhibit 4.1

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT FOR AND PURSUANT TO
THE PROVISIONS OF ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR, IN
THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES,
SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

WARRANT TO PURCHASE STOCK

	 	 	 
	Company:

	 	Somaxon Pharmaceuticals, Inc., a Delaware corporation
	 
	 	 
	Number of Shares:

	 	194,384, as may be adjusted from time to time hereafter
in accordance with the provisions of this Warrant.
	 
	 	 
	Class of Stock:

	 	Common Stock, $0.0001 par value per share
	 
	 	 
	Warrant Price:

	 	$1.543333, as may be adjusted from time to time hereafter
in accordance with the provisions of this Warrant.
	 
	 	 
	Issue Date:

	 	August 2, 2011
	 
	 	 
	Expiration Date:

	 	August 2, 2021
	 
	 	 
	Credit Facility:

	 	This Warrant is issued in connection with that certain
Loan and Security Agreement of even date herewith among
Silicon Valley Bank, Oxford Finance LLC and the Company
(the “Loan Agreement”)

THIS WARRANT CERTIFIES THAT, for good and valuable consideration, including without limitation
the mutual promises contained in the Loan Agreement, SILICON VALLEY BANK (together with any
registered holder from time to time of this Warrant or any holder of the shares issuable or issued
upon exercise of this Warrant, “Holder”) is entitled to purchase the number of fully paid and
non-assessable shares (the “Shares”) of the above-stated Class of Stock (the “Class”) of the
above-named company (the “Company”) at the above-stated Warrant Price, all as set forth above and
as adjusted pursuant to Article 2 of this Warrant, subject to the provisions and upon the terms and
conditions set forth in this Warrant.

ARTICLE 1. EXERCISE.

1.1 Method of Exercise. Holder may exercise this Warrant by delivering the original
of this Warrant together with a duly executed Notice of Exercise in substantially the form attached
as Appendix 1 to the principal office of the Company. Unless Holder is exercising the conversion
right set forth in Article 1.2, Holder shall also deliver to the Company a certified or bank check,
wire transfer of same-day funds (to an account designated by the Company), or other form of payment
acceptable to the Company for the aggregate Warrant Price for the Shares being purchased.

1.2 Conversion Right. In lieu of exercising this Warrant as specified in Article 1.1,
Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares
determined by dividing (a) the aggregate fair market value of the Shares or other securities
otherwise issuable upon exercise of this Warrant minus the aggregate Warrant Price of such Shares
by (b) the fair market value of one Share. The fair market value of the Shares shall be determined
pursuant to Article 1.3.

 

 

 

1.3 Fair Market Value. If the Class is traded in a public market, the fair market
value of a Share shall be the average closing prices of a share of common stock reported for the
three (3) business days immediately before Holder delivers this Warrant together with its Notice of
Exercise to the Company. If the Class is not traded in a public market, the Board of Directors of
the Company shall determine fair market value in its reasonable good faith judgment.

1.4 Delivery of Certificate and New Warrant. Promptly after Holder exercises or
converts this Warrant and, if applicable, the Company receives payment of the aggregate Warrant
Price, the Company shall deliver to Holder certificates for the Shares acquired and, if this
Warrant has not been fully exercised or converted and has not expired, a new Warrant representing
the Shares not so acquired.

1.5 Replacement of Warrants. On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss,
theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and
amount to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant,
the Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor.

1.6 Treatment of Warrant Upon Acquisition of Company.

1.6.1 “Acquisition”. For the purpose of this Warrant, “Acquisition” means any sale,
exclusive license, or other disposition of all or substantially all of the assets of the Company,
or any reorganization, consolidation, merger or sale of outstanding capital stock of the Company
where the holders of the Company’s outstanding voting securities before the transaction
beneficially own less than a majority of the outstanding voting securities of the surviving entity
or, if applicable, its parent entity, after the transaction.

1.6.2 Treatment of Warrant at Acquisition.

A) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition that
is not a True Asset Sale (as defined below) in which the sole consideration is cash, either (a)
Holder shall exercise its conversion or purchase right under this Warrant and such exercise will be
deemed effective immediately prior to and contingent upon the consummation of such Acquisition or
(b) if Holder elects not to exercise the Warrant, this Warrant will expire upon the consummation of
such Acquisition. The Company shall provide the Holder with written notice of its request relating
to the foregoing (together with such reasonable information as the Holder may request in connection
with such contemplated Acquisition giving rise to such notice), which is to be delivered to Holder
not less than ten (10) days prior to the closing of the proposed Acquisition.

B) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition that
is an “arms length” sale of all or substantially all of the Company’s assets (and only its assets)
to a third party that is not an Affiliate (as defined below) of the Company (a “True Asset Sale”),
either (a) Holder shall exercise its conversion or purchase right under this Warrant and such
exercise will be deemed effective immediately prior to the consummation of such Acquisition or (b)
if Holder elects not to exercise the Warrant, this Warrant will continue until the Expiration Date
if the Company continues as a going concern following the closing of any such True Asset Sale. The
Company shall provide the Holder with written notice of its request relating to the foregoing
(together with such reasonable information as the Holder may request
in connection with such contemplated Acquisition giving rise to such notice), which is to be
delivered to Holder not less than ten (10) days prior to the closing of the proposed Acquisition.

 

2

 

C) Upon the closing of any Acquisition other than those particularly described in subsections (A)
and (B) above, the successor entity shall assume the obligations of this Warrant, and this Warrant
shall be exercisable for the same securities, cash, and property as would be payable for the Shares
issuable upon exercise of the unexercised portion of this Warrant as if such Shares were
outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price
and/or number of Shares shall be adjusted accordingly.

D) Notwithstanding the foregoing provisions of this Section 1.6.2., in the event that the acquiror
in an Acquisition does not agree to assume this Warrant at and as of the closing thereof, this
Warrant, to the extent not exercised or converted on or prior to such closing, shall terminate and
be of no further force or effect as of immediately following such closing if all of the following
conditions are met: (i) the acquiror is subject to the reporting requirements of Section 13 or
Section 15(d) of the Securities Exchange Act of 1934, as amended, (ii) the class of stock or other
security of the acquiror that would be received by Holder in connection with such Acquisition were
Holder to exercise or convert this Warrant on or prior to the closing thereof is listed for trading
on a national securities exchange or approved for quotation on an automated inter-dealer quotation
system, and (iii) the value (determined as of the closing of such Acquisition in accordance with
the definitive agreements therefor) of the acquiror stock and/or other securities that would be
received by Holder in respect of each Share were Holder to exercise or convert this Warrant on or
prior to the closing of such Acquisition is equal to or greater than three (3) times the
then-effective Warrant Price.

As used in this Section 1.6, “Affiliate” shall mean any person or entity that owns or
controls directly or indirectly ten percent (10%) or more of the stock of Company, any person or
entity that controls or is controlled by or is under common control with such persons or entities,
and each of such person’s or entity’s officers, directors, joint venturers or partners, as
applicable.

ARTICLE 2. ADJUSTMENTS TO THE SHARES.

2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on the
outstanding shares of the Class payable in common stock or other securities, then upon exercise of
this Warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total
number and kind of securities to which Holder would have been entitled had Holder owned the Shares
of record as of the date the dividend occurred. If the Company subdivides the outstanding shares
of the Class by reclassification or otherwise into a greater number of shares, the number of Shares
purchasable hereunder shall be proportionately increased and the Warrant Price shall be
proportionately decreased. If the outstanding shares of the Class are combined or consolidated, by
reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be
proportionately increased and the number of Shares shall be proportionately decreased.

 

3

 

2.2 Reclassification, Exchange, Combinations or Substitution. Upon any
reclassification, exchange, substitution, or other event that results in a change of the number
and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall
be entitled to receive, upon exercise or conversion of this Warrant, the number and kind of
securities and property that Holder would have received for the Shares if this Warrant had been
exercised immediately before such reclassification, exchange, substitution, or other event, and the
Warrant Price shall be adjusted proportionately. The Company or its successor shall
promptly issue to Holder an amendment to this Warrant setting forth the number and kind of
such new securities or other property issuable upon exercise or conversion of this Warrant as a
result of such reclassification, exchange, substitution or other event that results in a change of
the number and/or class of securities issuable upon exercise or conversion of this Warrant. The
amendment to this Warrant shall provide for adjustments which shall be as nearly equivalent as may
be practicable to the adjustments provided for in this Article 2 including, without limitation,
adjustments to the Warrant Price and to the number of securities or property issuable upon exercise
of the new Warrant. The provisions of this Article 2.2 shall similarly apply to successive
reclassifications, exchanges, substitutions, or other events.

2.3 [Intentionally Omitted].

2.4 No Impairment. The Company shall not, by amendment of its Certificate of
Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution,
issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed under this Warrant by the Company,
but shall at all times in good faith assist in carrying out of all the provisions of this Article 2
and in taking all such action as may be necessary or appropriate to protect Holder’s rights under
this Article against impairment; provided, however, that notwithstanding the foregoing, nothing in
this Section 2.4 shall restrict or impair the Company’s right to effect changes to the rights,
preferences, and privileges associated with the Shares with the requisite consent of the
stockholders as may be required to amend the Certificate of Incorporation from time to time so long
as such amendment affects the rights, preferences, and privileges granted to Holder associated with
the Shares in the same manner as the other holders of outstanding shares of the Class.

2.5 Fractional Shares. No fractional Shares shall be issuable upon exercise or
conversion of the Warrant and the number of Shares to be issued shall be rounded down to the
nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the
Warrant, the Company shall eliminate such fractional share interest by paying Holder the amount
computed by multiplying the fractional interest by the fair market value of a full Share.

2.6 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, Class
and/or number of Shares, the Company shall promptly notify Holder in writing, and, at the Company’s
expense, promptly compute such adjustment, and furnish Holder with a certificate of its Chief
Financial Officer setting forth such adjustment and the facts upon which such adjustment is based.
The Company shall, upon written request, furnish Holder a certificate setting forth the Warrant
Price, Class and number of Shares in effect upon the date thereof and the series of adjustments
leading to such Warrant Price, Class and number of Shares.

ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

3.1 Representations and Warranties. The Company represents and warrants to, and
agrees with, the Holder as follows:

(a) All Shares which may be issued upon the exercise of the purchase right represented by this
Warrant shall, upon issuance, be duly authorized, validly issued, fully paid and non-assessable,
and free of any liens and encumbrances except for restrictions on transfer provided for herein or
under applicable federal and state securities laws.

 

4

 

3.2 Notice of Certain Events. If the Company proposes at any time (a) to declare any
dividend or distribution upon the outstanding shares of the same class and series as the Shares,
whether in cash, property, stock, or other securities and whether or not a regular cash dividend;
(b) to offer for subscription or sale pro rata to the holders of the outstanding shares of the same
class and series as the Shares any additional shares of any class or series of the Company’s stock;
(c) to effect any reclassification, reorganization or recapitalization of the outstanding shares of
the Class; or (d) to effect an Acquisition or to liquidate, dissolve or wind up, then, in
connection with each such event, the Company shall give Holder notice thereof at the same time and
in the same manner as the Company notifies the holders of the outstanding shares of the Class
thereof. Company will also provide information requested by Holder reasonably necessary to enable
the Holder to comply with the Holder’s accounting or reporting requirements, subject to Holder
being bound by customary confidentiality obligations.

3.3 No Shareholder Rights. Except as provided in this Warrant, Holder will not have
any rights as a shareholder of the Company until the exercise of this Warrant.

ARTICLE 4. REPRESENTATIONS, WARRANTIES OF THE HOLDER.

The Holder represents and warrants to the Company as follows:

4.1 Purchase for Own Account. This Warrant and the securities to be acquired upon
exercise of this Warrant by Holder will be acquired for investment for Holder’s account, not as a
nominee or agent, and not with a view to the public resale or distribution within the meaning of
the Act. Holder also represents that it has not been formed for the specific purpose of acquiring
this Warrant or the Shares.

4.2 Disclosure of Information. Holder has received or has had full access to all the
information it considers necessary or appropriate to make an informed investment decision with
respect to the acquisition of this Warrant and its underlying securities. Holder further has had
an opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of the offering of this Warrant and its underlying securities and to obtain additional
information (to the extent the Company possessed such information or could acquire it without
unreasonable effort or expense) necessary to verify any information furnished to Holder or to which
Holder has access.

4.3 Investment Experience. Holder understands that the purchase of this Warrant and
its underlying securities involves substantial risk. Holder has experience as an investor in
securities of companies in the development stage and acknowledges that Holder can bear the economic
risk of such Holder’s investment in this Warrant and its underlying securities and has such
knowledge and experience in financial or business matters that Holder is capable of evaluating the
merits and risks of its investment in this Warrant and its underlying securities and/or has a
preexisting personal or business relationship with the Company and certain of its officers,
directors or controlling persons of a nature and duration that enables Holder to be aware of the
character, business acumen and financial circumstances of such persons.

4.4 Accredited Investor Status. Holder is an “accredited investor” within the meaning
of Regulation D promulgated under the Act.

4.5 The Act. Holder understands that this Warrant and the Shares issuable upon
exercise or conversion hereof have not been registered under the Act in reliance upon a specific
exemption therefrom, which exemption depends upon, among other things, the bona
fide nature of the Holder’s investment intent as expressed herein. Holder understands that
this Warrant and the Shares issued upon any exercise or conversion hereof must be held indefinitely
unless subsequently registered under the Act and qualified under applicable state securities laws,
or unless exemption from such registration and qualification are otherwise available.

 

5

 

ARTICLE 5. MISCELLANEOUS.

5.1 Term: This Warrant is exercisable in whole or in part at any time and from time
to time on or before the Expiration Date.

5.2 Legends. This Warrant and the Shares (and the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
SECURITIES LAWS OF ANY STATE AND, EXCEPT FOR AND PURSUANT TO THE
PROVISIONS OF ARTICLE 5 OF THAT CERTAIN WARRANT TO PURCHASE STOCK
ISSUED BY THE COMPANY TO SILICON VALLEY BANK DATED AS OF AUGUST 2,
2011 MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND
APPLICABLE STATE SECURITIES LAWS OR, IN THE OPINION OF LEGAL COUNSEL
IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE
SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS
EXEMPT FROM REGISTRATION.

5.3 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable
upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion
of the Shares, if any) may not be transferred or assigned in whole or in part without compliance
with applicable federal and state securities laws by the transferor and the transferee (including,
without limitation, the delivery of investment representation letters and legal opinions reasonably
satisfactory to the Company, as reasonably requested by the Company). The Company shall not
require Silicon Valley Bank (“Bank”) to provide an opinion of counsel if the transfer is to Bank’s
parent company, SVB Financial Group (formerly Silicon Valley Bancshares), or any other affiliate of
Bank. Additionally, the Company shall also not require an opinion of counsel if there is no
material question as to the availability of current information as referenced in Rule 144(c),
Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling
broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of
Holder’s notice of proposed sale.

5.4 Transfer Procedure. After receipt by Holder of the executed Warrant, Bank will
transfer all of this Warrant to Holder’s parent company, SVB Financial Group, by execution of an
Assignment substantially in the form of Appendix 2. Subject to the provisions of Article 5.3 and
upon providing Company with written notice, SVB Financial Group and any subsequent Holder may
transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the
securities issuable directly or indirectly, upon conversion of the Shares, if
any) to any transferee, provided, however, in connection with any such transfer, SVB Financial
Group or any subsequent Holder will give the Company notice of the portion of the Warrant being
transferred with the name, address and taxpayer identification number of the transferee and Holder
will surrender this Warrant to the Company for reissuance to the transferee(s) (and Holder if
applicable). The Company may refuse to transfer this Warrant or the Shares to any person who
directly competes with the Company (as determined by Holder), unless, in either case, the stock of
the Company is publicly traded. Any transferee shall take this Warrant subject to all provisions
and restrictions contained herein.

 

6

 

5.5 Notices. All notices and other communications from the Company to the Holder, or
vice versa, shall be deemed delivered and effective when given personally or mailed by first-class
registered or certified mail, postage prepaid, at such address, as may have been furnished to the
Company or the Holder, as the case may (or on the first business day after transmission by
facsimile) be, in writing by the Company or such Holder from time to time. Effective upon receipt
of the fully executed Warrant and the initial transfer described in Article 5.4 above, all notices
to the Holder shall be addressed as follows until the Company receives notice of a change of
address in connection with a transfer or otherwise:

SVB Financial Group

Attn: Treasury Department

3003 Tasman Drive, HA 200

Santa Clara, CA 95054

Telephone: 408-654-7400

Facsimile: 408-496-2405

Notice to the Company shall be addressed as follows until the Holder receives notice of a
change in address:

Somaxon Pharmaceuticals, Inc.

Attn: Tran Nguyen, Chief Financial Officer

3570 Carmel Mountain Road, Suite 100

San Diego, CA 92130

Telephone: (858) 480-0402

Facsimile: (858) 509-1761

with copies to:

Somaxon Pharmaceuticals, Inc.

Attn: Matthew W. Onaitis, General Counsel

3570 Carmel Mountain Road, Suite 100

San Diego, California 92130

Fax: (858) 509-1761

Latham & Watkins LLP

Attn: Cheston J. Larson, Esq.

12636 High Bluff Drive, Suite 400

San Diego, California 92130

Fax: (858) 523-5450

 

7

 

5.6 Waiver. This Warrant and any term hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which enforcement of such
change, waiver, discharge or termination is sought.

5.7 Attorney’s Fees. In the event of any dispute between the parties concerning the
terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to
collect from the other party all costs incurred in such dispute, including reasonable attorneys’
fees.

5.8 Automatic Conversion upon Expiration. In the event that, upon the Expiration
Date, the fair market value of one Share (or other security issuable upon the exercise hereof) as
determined in accordance with Section 1.3 above is greater than the Warrant Price in effect on such
date, then this Warrant shall automatically be deemed on and as of such date to be converted
pursuant to Section 1.2 above as to all Shares (or such other securities) for which it shall not
previously have been exercised or converted, and the Company shall promptly deliver a certificate
representing the Shares (or such other securities) issued upon such conversion to Holder.

5.9 Counterparts. This Warrant may be executed in counterparts, all of which together
shall constitute one and the same agreement.

[Remainder of page left blank intentionally]

 

8

 

5.10 Governing Law. This Warrant shall be governed by and construed in accordance
with the laws of the State of California, without giving effect to its principles regarding
conflicts of law.

	 	 	 	 	 
	“COMPANY”	 	 
	 
	 	 	 	 
	SOMAXON PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Matthew W. Onaitis
 

Matthew W. Onaitis
	 	 
	 

	 	(Print)	 	 
	Title:

	 	Senior Vice President, General Counsel and Secretary	 	 
	 
	 	 	 	 
	“HOLDER”	 	 
	 
	 	 	 	 
	SILICON VALLEY BANK	 	 
	 
	 	 	 	 
	By:
	 	/s/ Kevin Wallace	 	 
	 

	 	 

	 	 
	Name:
	 	Kevin Wallace	 	 
	 

	 	 

(Print)
	 	 
	Title:
	 	Relationship Manager	 	 

Silicon Valley Bank

Warrant

 

 

 

APPENDIX 1

NOTICE OF EXERCISE

1. Holder elects to purchase                      shares of the Common Stock of SOMAXON
PHARMACEUTICALS, INC. pursuant to the terms of the attached Warrant, and tenders payment of the
purchase price of the shares in full.

[or]

1. Holder elects to convert the attached Warrant into Shares/cash [strike one] in the manner
specified in the Warrant. This conversion is exercised for                                          of the Shares
covered by the Warrant.

[Strike paragraph that does not apply.]

2. Please issue a certificate or certificates representing the shares in the name specified
below:

	 	 	 	 	 
	 

	 	 

Holders Name
	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

(Address)
	 	 

3. By its execution below and for the benefit of the Company, Holder hereby restates each of
the representations and warranties in Article 4 of the Warrant as the date hereof.

	 	 	 	 	 	 	 
	 

	 	HOLDER:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	(Date):	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

 

APPENDIX 2

ASSIGNMENT

For value received, Silicon Valley Bank hereby sells, assigns and transfers unto

	 	 	 	 	 
	 

	 	Name:
	 	SVB Financial Group
	 

	 	Address:
	 	3003 Tasman Drive (HA-200)
	 

	 	 	 	Santa Clara, CA 95054
	 
	 	 	 	 
	 

	 	Tax ID:
	 	91-1962278

that certain Warrant to Purchase Stock issued by SOMAXON PHARMACEUTICALS, INC. (the “Company”), on
August 2, 2011 (the “Warrant”) together with all rights, title and interest therein.

	 	 	 	 	 	 	 
	 	 	SILICON VALLEY BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Date:                                        

By its execution below, and for the benefit of the Company, SVB Financial Group makes each of the
representations and warranties set forth in Article 4 of the Warrant and agrees to all other
provisions of the Warrant as of the date hereof.

	 	 	 	 	 	 	 
	 	 	SVB FINANCIAL GROUP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:

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