Document:

Strategic Redistribution Center and Core Distribution Agreement

 Exhibit 10.23 

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 CDA+SRC 

McKesson Corporation 

Strategic Redistribution Center and Core Distribution Agreement 

This Strategic Redistribution Center and Core Distribution Agreement (“Agreement”) is entered into between McKesson Corporation
(“McKesson”), a pharmaceutical distributor, and Zogenix, Inc. (“Manufacturer”), a pharmaceutical manufacturer. 
 McKesson
performs certain Core Services (as hereinafter defined) in connection with the distribution of pharmaceutical products manufactured by manufacturers. The parties now wish to define more precisely the amount and manner of the consideration to be
received by McKesson from Manufacturer for its performance of the Core Services. 
 Now, therefore, McKesson and Manufacturer agree as follows:

  

	 	I.	Obligations of McKesson 

  

	 	a.	McKesson agrees to provide the following core distribution services to the extent customarily performed by a full-range pharmaceutical distributor consistent with then
current industry practices (“Core Services”): 

  

	 	i.	Strategic Redistribution Center (“SRC”) – single destination shipping location in Aurora, Colorado. McKesson utilizes the SRC to reroute products to its
local distribution centers and/or customer warehouses utilizing state-of-the-art technology; 

  

	 	ii.	Efficient Inventory Levels – maintenance of efficient inventory levels to reflect true customer demand and maintain high customer service levels;

  

	 	iii.	Enhanced Reporting Package – electronic transmissions of 852 and 867 data via the Electronic Data Interchange (“EDI”), including levels and aggregate
sales out by Distribution Center (“DC”). All data metrics available in the 852 and 867 data sets are listed in Attachment A; 

  

	 	iv.	Returns Processing – receiving and reselling saleable returned product from customers and returning un-saleable product to the Manufacturer;

  

	 	v.	Contract Pricing Administration – updating price changes to existing contracts and adding new customer contracts in a timely manner; 

 

	 	vi.	Chargeback Processing – accurate and timely processing of customer chargebacks due to contract pricing between the customer and Manufacturer.

  

	 	b.	Services that are not Core Services (“Value Added Services”) are not included in this Agreement and shall be priced individually and separate from this
Agreement 

  

	 	II.	Obligations of Manufacturer 

  

	 	a.	Manufacturer agrees to replenish McKesson’s inventory orders in a timely and efficient manner. Manufacturer will utilize purchase order numbers provided by
McKesson when placing orders on behalf of McKesson. 

 COPYRIGHT © 2008
MCKESSON CORPORATION. ALL RIGHTS RESERVED. 

THIS DOCUMENT IS PROPRIETARY AND CONFIDENTIAL.

  

 1 

	 	b.	Manufacturer desires to deliver products to the SRC in lieu of making separate deliveries to each distribution center in McKesson’s distribution center network;

  

	 	c.	All products shall be delivered F.O.B. McKesson Strategic Redistribution Center in Aurora, CO freight and insurance prepaid; 

 

	 	d.	Manufacturer will use commercially reasonable efforts to ensure that McKesson’s inventory replenishment is operational, except for any scheduled down time needed
to maintain effective operations and/or when interruptions are necessary or caused by conditions outside of Manufacturer’s control. 

  

	 	e.	In consideration of the Core Services to be provided pursuant to this Agreement, Manufacturer will pay a fee to McKesson determined in accordance with Attachment
B. 

  

	 	III.	Additional Terms and Conditions 

  

	 	a.	Payment calculations are all based on gross branded pharmaceutical purchases by McKesson. 

 

	 	b.	In the event Manufacturer acquires pharmaceutical products after date on which this Agreement becomes effective from a third party (“Seller”) and Seller was
paying McKesson a fee for service with respect to the distribution of such products, Manufacturer agrees, to extent permitted by law, to pay McKesson a fee for service within the same amount and manner as paid by Seller for the period following such
acquisition until March 31st. After such period, such products will be subject to fee for service payments as set forth in this agreement. 

Manufacturer agrees, as part of such acquisition, to obtain the consent from Seller for disclosure by McKesson to Manufacturer of the
information necessary for purposes of complying with the foregoing paragraph. 
  

	 	IV.	Confidentiality and Disclosure 

This Agreement and all information which is provided by each party to the other party pursuant to this Agreement are confidential. Each
party agrees to maintain all such information confidential, and except as may be required by law or order of any court or governmental agency, not to disclose to any third party any such information unless such party shall obtain a written release
from the other party. Each party further agrees to limit access to such information to only those of its officers and employees who reasonably need to know such information. Manufacturer acknowledges that information generated, compiled or stored by
McKesson reflecting the purchase and resale of its products to customers does not constitute the confidential information of Manufacturer. 
  

	 	V.	Effective Date 

  

	 	a.	This Agreement shall become effective as of December 28, 2010 and shall remain in effect until terminated in accordance with Section b., below.

  
 COPYRIGHT © 2008
MCKESSON CORPORATION. ALL RIGHTS RESERVED. 

THIS DOCUMENT IS PROPRIETARY AND CONFIDENTIAL.

  

 2 

 CDA+SRC 
  

	 	b.	Either party may terminate this Agreement with or without cause at any time on [***] days prior written notice to the other party. 

 

	 	VI.	General 

  

	 	a.	This Agreement is in addition to and shall not supersede any existing agreement in effect between McKesson and Manufacturer, including but not limited to the McKesson
Buying Terms Form or McKesson Supplier Terms and Conditions entered into between the parties. 

  

	 	b.	This Agreement will be governed by and construed in accordance with the laws of California, without regard to or application of conflict of law, rules or principles.

  

	 	c.	In no event shall either party be liable to the other party under this Agreement for any special, consequential, incidental or indirect damages, however caused, on any
theory of liability and whether or not either party has been advised of the possibility of such damages. 

  

	 	d.	The parties to this Agreement are independent contractors. Accordingly, this Agreement does not constitute a partnership or other joint venture between the parties and
neither party shall be deemed to be an agent or representative of the other. 

  

	 	e.	The failure of either party to enforce at any time or for any period of time any one or more of the provisions hereof shall not be construed to be a waiver of such
provisions or of the right of such party thereafter to enforce each such provision. 

  

	 	f.	Except for the obligation to pay money, neither party will be liable to the other party for any failure or delay in performance caused by reasons beyond such
party’s reasonable control, including but not limited to acts of God, war, riot, acts of terrorism, fire, shortage of materials or transportation, strikes or acts of civil or military authorities, provided such party gives prompt written notice
thereof to the other party. 

  

	 	g.	In the event Manufacturer requires services (i.e. distribution, pharmacy, marketing or logistics) that McKesson Specialty can provide, McKesson Specialty will be given
the opportunity to bid on providing these services to Manufacturer at the time they may be put out for bid, along with any other competitor(s) that Manufacturer may so choose. 

 

	 	h.	This agreement may not be assigned by either party without the prior written consent of the other party. Notwithstanding the foregoing, McKesson may assign its rights
and obligations hereunder without the consent of Manufacturer to a subsidiary or affiliate or to an entity which purchases all or substantially all of McKesson’s stock or assets or acquires control of McKesson, whether by merger, acquisition,
or to a financial institution in connection with the grant of security interest herein. Notwithstanding the foregoing, Manufacturer may assign its rights and obligations hereunder without the consent of McKesson to a subsidiary or affiliate or to an
entity which purchases all or substantially all of Manufacturer’s stock or assets or acquires control of Manufacturer, whether by merger, acquisition, or to a financial institution in connection with the grant of security interest herein.

 [Remainder of Page Intentionally Left Blank] 

 

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

  
 COPYRIGHT
© 2008 MCKESSON CORPORATION. ALL RIGHTS RESERVED. 

THIS DOCUMENT IS PROPRIETARY AND CONFIDENTIAL.

  

 3 

 IN WITNESS WHEREOF the parties have caused this Agreement to be duly executed as of the date and year
written below and the persons signing warrant that they are duly authorized to sign for and on behalf of the respective parties. This Agreement shall be deemed accepted by McKesson only upon execution by a duly authorized representative of McKesson.

  

							
	For Zogenix, Inc.:	 	For McKesson Corporation:
				
	By:	 	 /s/ Roger Hawley
	 	By:	 	 /s/ Mark Q. Miller

				
	Name:	 	Roger Hawley	 	Name:	 	Mark Miller
		 	 (Print or Type)
	 		 	 (Print or Type)

				
	Title:	 	CEO	 	Title:	 	VP, Procurement Services
				
	Date:	 	December 28, 2009	 	Date:	 	2-1-10
		 	 /s/ David Nassif, CFO
	 		 	

 [Signature Page to the Strategic Redistribution Center and Core Distribution Agreement]

  
 COPYRIGHT © 2008
MCKESSON CORPORATION. ALL RIGHTS RESERVED. 

THIS DOCUMENT IS PROPRIETARY AND CONFIDENTIAL.

  

 4 

 Attachment A 

852 / 867 DATA 
  

	1.	Testing Electronic Transmissions 

  

	 	•	 	 852 and 867 data cannot be sent until the EDI transmission has been tested and certified by the Manufacturer’s EDI data team.

  

	2.	Data Frequency 

  

	 	•	 	 852 data can be sent only in one frequency - daily, weekly, or monthly. It cannot be sent in a combination of frequencies (i.e. daily and
monthly). 

  

	 	•	 	 867 data can be sent only in one frequency - daily, weekly, or monthly. It cannot be sent in a combination of frequencies (i.e. daily and
monthly). 

  

	 	•	 	 852 and 867 can be sent in different frequencies from each other – i.e. 852 can be sent weekly and 867 can be sent monthly.

  

	3.	Substitute Data 

  

	 	•	 	 Substitute inventory or sales data can be provided only if a Manufacturer is not EDI compliant or has not contracted with a third party data
processor 

  

	 	•	 	 A NISR report can be substituted for the 852 

  

	 	•	 	 A Sales Tracing report can be substituted for the 867 

 

	 	•	 	 Relative to 852 and 867, the NISR and Sales Tracing reports respectively are not as robust, may not provide the same level of detail, and are only
available in weekly or monthly frequencies (not available daily). 

  

	4.	McKesson will not provide any back history sales data. 

  

	5.	Transmissions through AS2, a secure Internet transmission protocol, will incur no additional incremental fee. Transmissions through a VAN (Value Added Network) are
subject to an additional incremental fee. 

 Please select the data report type and then select the frequency (choose only
one). The default selection is Weekly if no choice is indicated. 
 Inventory Data (Choose only one and then select frequency for your
choice) 
  

	 ̈	852 Inventory Data via EDI transmission 

  

					
	  ̈       Monthly
	  	  ̈       Weekly
	  	 x       Daily

 

	 ̈	NISR (used as a substitute for 852 only if not EDI compliant) 

 

					
	  ̈       Monthly
	  	  ̈       Weekly
	  	

 Sales Data (Choose only one and then select frequency for your choice) 

 

	 ̈	867 Sales Data via EDI transmission 

  

					
	  ̈       Monthly
	  	 x       Weekly
	  	  ̈       Daily

 

	 ̈	Sales Tracing (used as a substitute for 867 only if not EDI compliant) 

 

					
	  ̈       Monthly
	  	  ̈       Weekly
	  	

 Please complete contact information to begin testing and certification process 

 

			
	MANUFACTURER EDI CONTACT	  	MCKESSON EDI CONTACT
	Name: Dayna Bauman	  	Name: Dennis Lim
	Phone #: 615 - 715 - 6755	  	Phone #: 415-983-9320
	Email: dbauman@zogenix.com	  	Email: dennis.lim@mckesson.com

  

COPYRIGHT © 2008 MCKESSON CORPORATION. ALL
RIGHTS RESERVED. 
 THIS DOCUMENT IS
PROPRIETARY AND CONFIDENTIAL. 
  

 i 

 The following pages are listings and definitions of the available fields for the 852s and 867s. Please
note that due to system constraints, no additional fields are available and these fields and qualifiers are not negotiable. 

Data Fields and Definitions 

852s (Limited to fields listed below) 
  

					
	Data Range Start	  	Start date of the data	  	
			
	Data Range End	  	End date of the data	  	
			
	DC DEA Number	  	Distribution Center Drug Enforcement Administration number	  	
			
	NDC	  	National Drug Code – if available	  	
			
	UPC	  	Universal Product Code – if available	  	
			
	Econo	  	McKesson Item Number – if available	  	
			
	Status	  	Active SKU codes are: A, G, M, N, and W; the rest are inactive	  	
			
		  		  	Qualifiers
			
	Total Orders	  	Quantity ordered – sales + omits	  	QX
			
	Sales Quantity	  	 Aggregate of sales including:
  

•     customer end sales

 
 •     dock to
dock sales
  

•     drop ship sales

 
 •     repacked
sales
  
 Note: Transfers out of the Memphis Regional Distribution Center or
other DCs are not considered sales and therefore are not included here.
	  	QS
			
	Lost Sales Quantity	  	Unfiltered omitted units	  	QO
			
	Saleable On-hand	  	 Actual quantity currently stocked in the warehouse available for sale

 
 Note: Pending customer orders not filled are not subtracted out (see QC –
Committed quantity)
	  	QA
			
	Ending Saleable On-hand	  	Same as saleable on-hand	  	QE
			
	Unsaleable On-hand	  	On-hand in the reclamation center (a.k.a. morgue) – this is not considered as on-hand for ordering purposes	  	TS

  

COPYRIGHT © 2008 MCKESSON CORPORATION. ALL
RIGHTS RESERVED. 
 THIS DOCUMENT IS
PROPRIETARY AND CONFIDENTIAL. 
  

 ii 

					
	Total On-order	  	Total on-order quantity, including orders placed to the manufacturer, transfers from the Memphis Regional Distribution Center, the Denver Strategic Redistribution Center, and
transfers from other DCs	  	QP
			
	Manufacturer On-order	  	On-order quantity from manufacturer	  	Q1
			
	DC to DC In-transit	  	Transfer on-order from McKesson DC to another McKesson DC (inter-DC transfers)	  	QM
			
	RxPak/Specialty On-order	  	On-order quantity from McKesson RxPak & McKesson Specialty divisions	  	QL
			
	Quantity Received	  	Receipt quantities	  	QR
			
	Inventory Adjustments	  	Adjustments to inventory not included in sales, transfers, or receipts	  	QT
			
	SKU Weekly Forecast	  	 SKU weekly customer demand forecast
  

Note: For the Regional Distribution Center (8194), forecasts are derived by adding the forecasts from all forward DCs plus the forecasts for the
RDC’s sales to warehouse customers. It is important to note that the buying system does not use this specific number for calculating order quantities.
	  	QD
			
	SKU Four Week Forecast	  	Weekly forecast times four (QD x 4)	  	QF
			
	 Order Projections

13 weeks out
	  	Based on current information, projected unit order quantities (to the vendor) by week for 13 weeks. (First instance = one week out, second instance = two weeks out,
etc.)	  	OQ
			
	Lines Sold	  	Unfiltered lines sold, no adjustments	  	WQ
			
	Lines Lost	  	Lines Lost is defined as Lines Ordered – Lines Sold	  	LS
			
	Inter-DC Transfers Out	  	Quantity transferred out	  	QW
			
	Inter-DC Transfers In	  	Quantity transferred received	  	QZ
			
	 SKU Quantity Returned

into Inventory
	  	Saleable customer returns	  	Q2
			
	 SKU Quantity Returned

to Morgue
	  	Unsaleable customer returns	  	Q3
			
	SKU Reserved Quantity	  	Additional quantity maintained in the buying system, typically used for new business and holiday builds	  	QH
			
	SKU Committed Quantity	  	Customer orders to be filled	  	QC
			
	Customer End Sales	  	Regular sales to customers through McKesson DCs (does not include transfers to McKesson distribution centers)	  	RE
			
	Dock-to-dock Sales	  	Dock-to-dock sales	  	QI
			
	Drop Ship Sales	  	Drop ship sales	  	OF
			
	SRC Sales	  	Sales by the Strategic Redistribution Center (SRC) to outside customers (does not include transfers to McKesson distribution centers)	  	QK

  

COPYRIGHT © 2008 MCKESSON CORPORATION. ALL
RIGHTS RESERVED. 
 THIS DOCUMENT IS
PROPRIETARY AND CONFIDENTIAL. 
  

 iii 

					
	Repacked Sales	  	Repack (RxPak) finished goods sales	  	OP
			
	SKU Standard Deviation	  	SKU customer forecast standard deviation percent	  	PA
			
	Planned Inventory Qty	  	Planned inventory quantity buy, typically manually calculated special quantities	  	QN
			
	SKU Reorder Point	  	Buying system reorder point	  	PO
			
	SKU Lead Time	  	Buying system SKU lead time	  	BS
			
	 SKU Lead Time

Variability
	  	Lead time standard deviation percent	  	MS

  

COPYRIGHT © 2008 MCKESSON CORPORATION. ALL
RIGHTS RESERVED. 
 THIS DOCUMENT IS
PROPRIETARY AND CONFIDENTIAL. 
  

 iv 

 867s (Limited to fields listed below) 

 

			
	Processing Date	  	Date file is created
		
	Data Range Start	  	Start date of the data
		
	Data Range End	  	End date of the data
		
	Transaction Date	  	Transaction date
		
	Invoice#	  	Invoice number
		
	Invoice Date	  	Invoice date
		
	Contract Number	  	Contract number if contract sale
		
	Manufacturer DEA#	  	Manufacturer Drug Enforcement Administration number – for Class II as well as III-V vendor numbers
		
	Manufacturer Name	  	Manufacturer name
		
	DC DEA#	  	Distribution Center Drug Enforcement Administration number
		
	DC Name	  	DC name
		
	NDC	  	National Drug Code – if available
		
	UPC	  	Universal Product Code – if available
		
	Econo	  	McKesson Item Number – if available
		
	UOM	  	Selling unit of measure
		
	Cost	  	Wholesale acquisition cost (WAC)
		
	 Quantity Purchased

(or transferred)
	  	 Quantity filled – includes:
  

•     customer end sales

 
 •     dock to
dock sales
  

•     drop ship sales

 
 •     repacked
sales
  

•     transfers

 
 See Sales Type Codes to distinguish the transaction

 
 COPYRIGHT © 2008
MCKESSON CORPORATION. ALL RIGHTS RESERVED. 

THIS DOCUMENT IS PROPRIETARY AND CONFIDENTIAL.

  

 v 

			
	Sales Type Code	  	 1 = Customer end sales
  

2 = Dock to dock
  

3 = Drop ship
  

4 = Rx Pak
  

5 = Returns, saleable
  

6 = Returns, unsaleable
  

7 = Inter-DC transfers; regular transfers out
  

8 = Inter-DC transfers; transfer cancellations

		
	Customer Returns	  	Saleable and unsaleable returns
		
	Customer Name	  	 Customer name
  

For blocked customer, the name will be “Blocked Per Customer”

		
	Customer DEA#	  	 Customer Drug Enforcement Administration number
  

For blocked customer, the DEA# will not be sent

		
	Customer Address	  	 Customer street address
  

For blocked customer, the address will not be sent

		
	City	  	 Customer city
  

For blocked customer, the city will not be sent

		
	State	  	 Customer state
  

For blocked customer, the state will not be sent

		
	Zip	  	 Customer zip
  

For blocked customer, only the first 3 digits of the zip code will be populated

Note: McKesson will not provide any customer information where it violates the customer contract with McKesson. 

*        *        * 

ENHANCED REPORTING PACKAGE ELECTION 

Service Level Report 
  

	 ̈	Yes 

	 ̈	No 

 Un-saleable Product Report
(provided only if a Manufacturer is not EDI compliant or has not contracted with a third party data processor) 
  

	 ̈	Yes 

	 ̈	No 

  

COPYRIGHT © 2008 MCKESSON CORPORATION. ALL
RIGHTS RESERVED. 
 THIS DOCUMENT IS
PROPRIETARY AND CONFIDENTIAL. 
  

 vi 

 Attachment B 

STRATEGIC REDISTRIBUTION CENTER AND CORE DISTRIBUTION AGREEMENT 

FEE SCHEDULE 
  

	1.	In consideration of the Core Services to be provided pursuant to this Agreement, including SRC services, Manufacturer shall provide a total fee of [***]

  

	 	A.	For the SRC services performed hereunder, Manufacturer shall pay to McKesson a fee equal to [***] [***]; and 

 

	 	B.	For the Core Services (other than the SRC services) performed hereunder, Manufacturer shall pay to McKesson a fee equal to [***]. 

 

	 	C.	If in the [***] Zogenix does not hit the volume goal of [***] with McKesson the Core Services fee will increase an additional [***] to a total of [***].

  

	2.	In further consideration of the Core Services to be provided pursuant to this Agreement [***]. 

 

	3.	All fees will be invoiced monthly with [***] day payment terms from the date of the invoice. 

 

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

  
 COPYRIGHT
© 2008 MCKESSON CORPORATION. ALL RIGHTS RESERVED. 

THIS DOCUMENT IS PROPRIETARY AND CONFIDENTIAL.

  

 iGeneral Release of Claims

 Exhibit 10.24 

GENERAL RELEASE OF CLAIMS 

This General Release of Claims (“Release”) is entered into as of this
26th day of February, 2010, between David W. Nassif, J.D.
(“Executive”), and Zogenix, Inc., a Delaware corporation (the “Company”) (collectively referred to herein as the “Parties”). 

WHEREAS, Executive and the Company are parties to that certain Employment Agreement dated as of May 7, 2008 (the “Employment
Agreement”); 
 WHEREAS, the Parties agree that Executive is entitled to certain severance benefits under the
Employment Agreement, subject to Executive’s execution of this Release; and 
 WHEREAS, the Company and Executive now wish
to fully and finally to resolve all matters between them. 
 NOW, THEREFORE, in consideration of, and subject to, the severance
benefits payable to Executive described in Section 2(d) below, the adequacy of which is hereby acknowledged by Executive, and which Executive acknowledges that he would not otherwise be entitled to receive, Executive and the Company hereby
agree as follows: 
 1. Effective Date; Termination of Employment. 

(a) Effective Date. This Release shall become effective upon the occurrence of both of the following events: (i) execution of
the Release by the Parties; and (ii) expiration of the revocation period applicable under Section 3(c) below without any party hereto having given notice of revocation. The date of the last to occur of the foregoing events shall be
referred to in this Release as the “Effective Date.” Until and unless both of the foregoing events occur, this Release shall be null and void. Executive understands that Executive will not be given any severance benefits under this
Release unless the Effective Date occurs on or before the date that is sixty (60) days following the Termination Date (as defined below). 

(b) Termination of Employment Status. Executive’s employment by the Company shall terminate effective as of February 26,
2010 (the “Termination Date”). Executive hereby irrevocably resigns from his position as Executive Vice President, Chief Financial Officer, Secretary and Treasurer (and any other titles or officer positions he may hold) of
the Company (and any of its affiliates and subsidiaries) effective as of the Termination Date. Executive shall execute any additional documentation necessary to effectuate such resignations. Executive’s personnel file at the Company will
reflect that Executive voluntarily resigned for personal reasons. Notwithstanding the foregoing, the Company shall not oppose Executive’s claim for unemployment benefits on the grounds that he resigned. Executive’s “separation from
service” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), shall be the Termination Date. 

(c) Surrender of Company Property. Executive shall immediately surrender to the Company all lists, books and records of, or in
connection with, the Company’s business, and all other property belonging to the Company, it being distinctly understood that all such lists, books and records, and other documents, are the property of the Company. 

 2. Compensation. 

(a) Compensation Through Termination Date. On the Termination Date, the Company shall issue Executive his final paycheck,
reflecting (a) his earned but unpaid base salary at the annualized rate of $260,000 per year through the Termination Date ($10,833.33 gross), and (b) all accrued, unused paid time off due Executive through the Termination Date ($30,000
gross). Subject to Section 2(d) below, Executive acknowledges and agrees that with his final check, Executive will have received all monies, bonuses, commissions, expense reimbursement, paid time off, or other compensation he earned or was due
during his employment by the Company. 
 (b) Expense Reimbursements. The Company, within thirty (30) days after the
Termination Date, will reimburse Executive for any and all reasonable and necessary business expenses incurred by Executive in connection with the performance of his job duties prior to the Termination Date, which expenses shall be submitted to the
Company with supporting receipts and/or documentation no later than thirty (30) days after the Termination Date. 
 (c)
Benefits. Subject to Section 2(d)(ii) below, Executive’s entitlement to benefits from the Company, and eligibility to participate in the Company’s benefit plans, shall cease on the Termination Date, except to the extent
Executive elects to and is eligible to receive continued healthcare coverage pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), for himself and any covered dependents, at
his sole expense in accordance with the provisions of COBRA. 
 (d) Severance. In exchange for Executive’s agreement
to be bound by the terms of this Release, including, but not limited to, the release of claims in Section 3, Executive shall be entitled to receive the following, which shall be the exclusive severance benefits to which Executive is entitled,
unless Executive has materially breached the provisions of this Release, in which case the last sentence of Section 4 shall apply: 

(i) A cash payment equal to $260,000, representing Executive’s annual base salary as in effect immediately prior to the Termination
Date, payable in a lump sum within ten (10) days following the Effective Date; 
 (ii) For the period beginning on the
Termination Date and ending on the date which is twelve (12) full months following the Termination Date (or, if earlier, the date on which the applicable continuation period under COBRA expires), the Company shall pay the monthly premium
Executive would be required to pay for continuation coverage pursuant to COBRA for Executive and his eligible dependents who were covered under the Company’s health plans as of the Termination Date such that Executive’s premiums are the
same as for active employees. Executive shall be solely responsible for all matters relating to his continuation of coverage pursuant to COBRA, including, without limitation, his election of such coverage and his timely payment of the employee
portion of any COBRA premiums. Following the COBRA Coverage Period, the Executive will then be responsible for paying the full cost of continuation coverage under COBRA for the Executive and his eligible dependents should the Executive elect to
continue coverage after such period; 
  

 2 

 (iii) On the Effective Date, the vesting and/or exercisability of each of Executive’s
outstanding Stock Awards (as defined below) shall be automatically accelerated as to the number of Stock Awards that would vest over the twelve (12) month period following the Termination Date had Executive remained continuously employed by the
Company during such period. In addition, in the event of a Change of Control (as defined in the Employment Agreement) on or before May 26, 2010, the vesting and/or exercisability of all of Executive’s Stock Awards shall be automatically
accelerated on the date of the Change of Control. Following the Termination Date, Executive’s vested Stock Awards shall be exercisable by Executive in accordance with the terms of the Company equity plan(s) and stock award agreements pursuant
to which they were granted; provided, however, that in the event of a Change of Control on or before May 26, 2010, any portion of those Stock Awards granted to Executive on or after May 7, 2008 that become exercisable on the
date of such Change pursuant to the second sentence of this Section 2(d)(iii) may be exercised by Executive (or Executive’s legal guardian or legal representative) until the date that is three (3) months after the date of the Change
in Control; provided, further, that in no event shall any Stock Award remain exercisable beyond the original outside expiration date of such Stock Award. Except as modified above, Executive’s Stock Awards shall continue to be
governed by the terms and conditions of the Stock Award agreements and the Company’s equity plan pursuant to which such Stock Awards were granted. For purposes of this Release, “Stock Awards” means all stock options, stock
appreciation rights, restricted stock and such other awards granted pursuant to the Company’s stock option and equity incentive award plans or agreements and any shares of stock issued upon exercise thereof; and 

(iv) Notwithstanding anything to the contrary in this Section 2(d), in the event of a Change in Control occurs on or before
May 26, 2010, Executive shall be entitled to receive, in addition to the severance benefits described in clauses (i), (ii) and (iii) above, an amount equal to $47,504, representing Executive’s “Bonus” (as defined
in the Employment Agreement) calculated as of the Termination Date, which amount shall be payable in a lump sum within ten (10) days following the later of (A) Effective Date and (B) the date of the Change in Control. 

 

 3 

 3. General Release of Claims by Executive. 

(a) Executive, on behalf of himself and his executors, heirs, administrators, representatives and assigns, hereby agrees to release and
forever discharge the Company and all predecessors, successors and their respective parent corporations, affiliates, related, and/or subsidiary entities, and all of their past and present investors, directors, shareholders, officers, general or
limited partners, employees, attorneys, agents and representatives, and the employee benefit plans in which Executive is or has been a participant by virtue of his employment with or service to the Company (collectively, the “Company
Releasees”), from any and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation,
responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected (collectively, “Claims”),
which Executive has or may have had against such entities based on any events or circumstances arising or occurring on or prior to the date hereof or on or prior to the date hereof, arising directly or indirectly out of, relating to, or in any other
way involving in any manner whatsoever Executive’s employment by or service to the Company or the termination thereof, including any and all claims arising under federal, state, or local laws relating to employment, including without limitation
claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation, or liability in tort, and claims of any kind that may be brought in any court or administrative agency including, without limitation, claims
under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. Section 2000, et seq.; the Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C.
§ 701 et seq.; the Civil Rights Act of 1866, and the Civil Rights Act of 1991; 42 U.S.C. Section 1981, et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. Section 621, et seq. (the “ADEA”);
the Equal Pay Act, as amended, 29 U.S.C. Section 206(d); regulations of the Office of Federal Contract Compliance, 41 C.F.R. Section 60, et seq.; the Family and Medical Leave Act, as amended, 29 U.S.C. § 2601
et seq.; the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; and the California Fair Employment and Housing Act,
California Government Code Section 12940, et seq. 
 Notwithstanding the generality of the foregoing, Executive does not
release the following claims: 
 (i) Claims for unemployment compensation or any state disability insurance benefits pursuant
to the terms of applicable state law; 
 (ii) Claims for workers’ compensation insurance benefits under the terms of any
worker’s compensation insurance policy or fund of the Company; 
 (iii) Claims pursuant to the terms and conditions of the
federal law known as COBRA; 
 (iv) Claims for indemnity under the bylaws of the Company, as provided for by California law or
under any applicable insurance policy with respect to Executive’s liability as an employee, director or officer of the Company; 

(v) Claims based on any right Executive may have to enforce the Company’s executory obligations under the Agreement; and

 (vi) Claims Executive may have to vested benefits under any benefit plan maintained by the Company. 

 

 4 

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

BEING AWARE OF SAID CODE SECTION, EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER
STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. 
 (c) Executive acknowledges that this Release was presented to him on the
date indicated above and that Executive is entitled to have twenty-one (21) days’ time in which to consider it. Executive further acknowledges that the Company has advised him that he is waiving his rights under the ADEA, and that
Executive should consult with an attorney of his choice before signing this Release, and Executive has had sufficient time to consider the terms of this Release. Executive represents and acknowledges that if Executive executes this Release before
twenty-one (21) days have elapsed, Executive does so knowingly, voluntarily, and upon the advice and with the approval of Executive’s legal counsel (if any), and that Executive voluntarily waives any remaining consideration period.

 (d) Executive understands that after executing this Release, Executive has the right to revoke it within seven (7) days
after his execution of it. Executive understands that this Release will not become effective and enforceable unless the seven (7) day revocation period passes and Executive does not revoke the Release in writing. Executive understands that this
Release may not be revoked after the seven (7) day revocation period has passed. Executive also understands that any revocation of this Release must be made in writing and delivered to the Company at its principal place of business within the
seven (7) day period. 
 (e) Executive understands that this Release shall become effective,
irrevocable, and binding upon Executive on the eighth
(8th) day after his execution of it, so long as
Executive has not revoked it within the time period and in the manner specified in clause (d) above. 
 4. Confirmation
of Continuing Obligations. Executive hereby expressly reaffirms his obligations under Section 5 of the Employment Agreement, a copy of which is attached to this Agreement as Exhibit A and incorporated herein by reference, and under
the Company’s standard employee proprietary information and inventions agreement (the “Employee Proprietary Information and Inventions Agreement”) a copy of which is attached to this Agreement as Exhibit B and
incorporated herein by reference, and agrees that such obligations shall survive the Termination Date and any termination of his services to the Company. The Company shall be entitled to cease all severance payments to Executive in the event of his
material breach of this Section 4. 
  

 5 

 5. Nondisparagement; Confidentiality. Executive agrees that neither he nor anyone
acting by, through, under or in concert with him shall disparage or otherwise communicate negative statements or opinions about the Company, its Board members, officers, employees or business. The Company agrees that neither its Board members nor
officers shall disparage or otherwise communicate negative statements or opinions about Executive. Except as may be required by law, neither Executive, nor any member of Executive’s family, nor anyone else acting by, through, under or in
concert with Executive will disclose to any individual or entity (other than Executive’s legal or tax advisors) the terms of this Agreement. Nothing in this Section 5 shall prohibit Executive from testifying in any legal proceeding in
which his testimony is compelled by law or court order and no breach of this provision shall occur due to any accurate, legally compelled testimony. 

6. Indemnification Agreement. The Company hereby reaffirms its obligations under that certain Indemnification Agreement, dated
May 16, 2007, between the Company and Executive attached hereto as Exhibit C (the “Indemnification Agreement”). The Company’s obligations under the Indemnification Agreement shall survive Executive’s
termination of employment by or service to the Company. 
 7. Agreed-Upon Statement; Employment References. Any inquiries
regarding Executive from prospective employers shall be forwarded to the Chairman of the Board, who shall confirm that Executive resigned from the Company for personal reasons. Except as required by law or court order, the Company shall not make any
additional or inconsistent internal or public statements regarding Executive’s resignation. 
 8. Litigation
Cooperation. Executive agrees to provide reasonable assistance to the Company (including the board of directors and any committees thereof) and its counsel and accountants in any financial audits or internal investigation involving securities,
financial, accounting, or other matters, and in its defense of, or other participation in, any administrative, judicial, or other proceeding arising from any charge, complaint or other action which has been or may be filed relating to the period
during which Executive was employed by the Company. The Company agrees to reimburse Executive for his reasonable expenses incurred in connection with such cooperation within thirty (30) days after receipt of an invoice from Executive setting
forth in reasonable detail such expenses. Notwithstanding the foregoing, the Company shall have no obligation by virtue of this Section 8 to pay Executive for time spent by Executive in any pending or future litigation or arbitration where
Executive is a co-defendant or party to the arbitration or litigation or with respect to which Executive requests indemnification pursuant to Section 6. 
  

 6 

 9. Arbitration. Any dispute, claim or controversy based on,
arising out of or relating to Executive’s employment or this Agreement shall be settled by final and binding arbitration in San Diego, California, before a single neutral arbitrator in accordance with the JAMS Employment Arbitration Rules and
Procedures (the “Rules”), and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction. Arbitration may be compelled pursuant to the California Arbitration Act (Code of Civil Procedure
§§ 1280 et seq.). If the parties are unable to agree upon an arbitrator, one shall be appointed by JAMS in accordance with its Rules. Each party shall pay the fees of its own attorneys, the expenses of its witnesses and all
other expenses connected with presenting its case; however, Executive and the Company agree that, to the extent permitted by law, the arbitrator may, in his or her discretion, award reasonable attorneys’ fees to the prevailing party;
provided, further, that the prevailing party shall be reimbursed for such fees, costs and expenses within forty-five (45) days following any such award, but in no event later than the last day of the Executive’s taxable year
following the taxable year in which the fees, costs and expenses were incurred; provided, further, that the parties’ obligations pursuant to this sentence shall terminate on the tenth
(10th) anniversary of the Termination Date. Other
costs of the arbitration, including the cost of any record or transcripts of the arbitration, JAMS administrative fees, the fee of the arbitrator, and all other fees and costs, shall be borne by the Company. This Section 9 is intended to be the
exclusive method for resolving any and all claims by the parties against each other for payment of damages under this Agreement or relating to Executive’s employment; provided, however, that neither this Agreement nor the
submission to arbitration shall limit the parties’ right to seek provisional relief, including without limitation injunctive relief, in any court of competent jurisdiction pursuant to California Code of Civil Procedure § 1281.8 or any
similar statute of an applicable jurisdiction. Seeking any such relief shall not be deemed to be a waiver of such party’s right to compel arbitration. Both Executive and the Company expressly waive their right to a jury trial. 

10. Assignment; Assumption by Successor. The rights of the Company under this Agreement may, without the consent of Executive, be
assigned by the Company, in its sole and unfettered discretion, to any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of the
assets or business of the Company. The Company shall require any successor (whether direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and to agree to
perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place; provided, however, that no such assumption shall relieve the Company of its
obligations hereunder. Unless expressly provided otherwise, “Company” as used herein shall mean the Company as defined in this Agreement and any successor to its business and/or assets as aforesaid. 

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

12. Severability. In the event any provision of this Release is found to be unenforceable by an arbitrator or court of competent
jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by
law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.

  

 7 

 13. Interpretation; Construction. The headings set forth in this Release are for
convenience only and shall not be used in interpreting this Agreement. This Release has been drafted by legal counsel representing the Company, but Executive has participated in the negotiation of its terms. Furthermore, Executive acknowledges that
Executive has had an opportunity to review and revise the Release and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party
shall not be employed in the interpretation of this Release. Either party’s failure to enforce any provision of this Release shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing
each and every other provision of this Release. 
 14. Governing Law and Venue. This Release will be governed by and
construed in accordance with the laws of the United States of America and the State of California applicable to contracts made and to be performed wholly within such State, and without regard to the conflicts of laws principles thereof. Any suit
brought hereon shall be brought in the state or federal courts sitting in San Diego County, California, the Parties hereby waiving any claim or defense that such forum is not convenient or proper. Each party hereby agrees that any such court shall
have in personam jurisdiction over it and consents to service of process in any manner authorized by California law. 
 15.
Entire Agreement; Amendment. This Release, the Employee Proprietary Information and Inventions Agreement, the Indemnification Agreement and Executive’s Stock Award agreements and the Company’s equity plan pursuant to which such
Stock Awards were granted constitute the entire agreement of the Parties in respect of the subject matter contained herein and therein and supersede all prior or simultaneous representations, discussions, negotiations and agreements, whether written
or oral. Except as provided in Section 4 hereof with respect to Section 5 of the Employment Agreement, the Employment Agreement shall be superseded entirely by this Release and the Employment Agreement shall be terminated and be of no
further force or effect. This Release may be amended or modified only with the written consent of Executive and an authorized representative of the Company. No oral waiver, amendment or modification will be effective under any circumstances
whatsoever. 
 16. Counterparts. This Release may be executed in multiple counterparts, each of which shall be deemed to
be an original but all of which together shall constitute one and the same instrument. 
 17. Section 409A of the
Code. This Agreement is not intended to provide for any deferral of compensation subject to Section 409A of the Code, and, accordingly, the severance payments payable under Sections 4(b) and 4(c) shall be paid no later than the later
of: (a) the fifteenth (15th) day of the third month following Executive’s first taxable year in which such severance benefit is no longer subject to a substantial risk of forfeiture, and (b) the fifteenth (15th) day of the
third month following first taxable year of the Company in which such severance benefit is no longer subject to substantial risk of forfeiture, as determined in accordance with Code Section 409A and any Treasury Regulations and other guidance
issued thereunder. To the extent applicable, this Agreement shall be interpreted in accordance with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder. 

 

 8 

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

19. RIGHT TO ADVICE OF COUNSEL. EXECUTIVE ACKNOWLEDGES THAT HE HAS THE RIGHT, AND IS ENCOURAGED, TO CONSULT WITH HIS LAWYER; BY
HIS SIGNATURE BELOW, EXECUTIVE ACKNOWLEDGES THAT HE HAS CONSULTED, OR HAS ELECTED NOT TO CONSULT, WITH HIS LAWYER CONCERNING THIS AGREEMENT. 

(Signature Page Follows) 
  

 9 

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

									
	EXECUTIVE	  		 	ZOGENIX, INC.
				
	  
	  		 	By:	 	  

	Print Name: David W. Nassif, J.D.	  		 	Print Name: Roger Hawley
	Date:	 	  
	  		 	Title:	 	Chief Executive Officer
		 		  		 	Date:	 	  

  

 10 

 EXHIBIT A 

EMPLOYMENT AGREEMENT 

[Attached] 
  

 11 

 EXHIBIT B 

COMPANY CONFIDENTIALITY AND PROPRIETARY RIGHTS AGREEMENT 

[Attached] 
  

 12 

 EXHIBIT C 

INDEMNIFICATION AGREEMENT 

[Attached] 
  

 13

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