Document:

exv10w88

Exhibit 10.88

AMENDED AND RESTATED QUALCOMM INCORPORATED

2001 EMPLOYEE STOCK PURCHASE PLAN

Originally Effective February 27, 2001

Amended and Restated Effective November 12, 2007

Includes First Amendment Adopted on February 11, 2009

Amended and Restated Effective April 26, 2010

 

 

     SECTION 1 Establishment, Purpose and Term of Plan.

          1.1 Establishment. The Qualcomm Incorporated 2001 Employee Stock Purchase Plan, which
was originally established as of February 27, 2001, is hereby amended and restated by the Committee
as of April 26, 2010.

          1.2 Purpose. The purpose of the Plan is to advance the interests of the Company and
its stockholders by providing an incentive to attract, retain and reward Eligible Employees of the
Participating Company Group and by motivating such persons to contribute to the growth and
profitability of the Participating Company Group. The Plan provides such Eligible Employees with
an opportunity to acquire a proprietary interest in the Company through the purchase of Stock. The
Company intends that the Plan qualify as an “employee stock purchase plan” under Section 423 of the
Code (including any amendments or replacements of such section), and the Plan shall be so
construed, although the Company makes no undertaking nor representation to maintain such
qualification. In addition, this Plan document authorizes the grant of rights to purchase Stock
under a Non-423(b) Plan which do not qualify under Section 423(b) of the Code, pursuant to rules,
procedures or sub-plans adopted by the Board or Committee designed to achieve tax, securities law
or other Company compliance objectives in particular locations outside the United States.

          1.3 Term of Plan. The Plan shall continue in effect until the earlier of its
termination by the Board or the date on which all of the shares of Stock available for issuance
under the Plan have been issued.

     SECTION 2 Definitions and Construction.

          2.1 Definitions. Any term not expressly defined in the Plan but defined for purposes
of Section 423 of the Code shall have the same definition herein for purposes of the Code Section
423(b) Plan. Whenever used herein, the following terms shall have their respective meanings set
forth below:

               (a) “Board” means the Board of Directors of the Company. If one or more Committees have been
appointed by the Board to administer the Plan, “Board” also means such Committee(s).

               (b) “Code” means the U.S. Internal Revenue Code of 1986, as amended, and any applicable
regulations promulgated thereunder.

               (c) “Code Section 423(b) Plan” means an employee stock purchase plan which is designed to meet
the requirements set forth in Section 423(b) of the Code. The provisions of the Code Section
423(b) Plan shall be construed, administered and enforced in accordance with Section 423(b) of the
Code.

               (d) “Committee” means the Compensation Committee or other committee of the Board duly
appointed to administer the Plan and having such powers as shall be specified by the Board. Unless
the powers of the Committee have been specifically limited, the

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Committee shall have all of the powers of the Board granted herein, including, without
limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan
and any applicable limitations imposed by law. To the extent determined by the Board or the
Compensation Committee, the term “Committee” shall also mean such officers of the Company as the
Board or Compensation Committee shall specify.

               (e) “Company” means Qualcomm Incorporated, a Delaware corporation, or any Successor.

               (f) “Compensation” means, with respect to any Offering Period, all salary, wages (including
amounts elected to be deferred by the employee, that would otherwise have been paid, under any cash
or deferred arrangement established by the Company) and overtime pay, but excluding commissions,
bonuses, payments under the 2-for-1 vacation program, profit sharing, the cost of employee benefits
paid for by the Company, education or tuition reimbursements, imputed income arising under any
Company group insurance or benefit program, traveling expenses, business and moving expense
reimbursements, income received in connection with stock options, contributions made by the Company
under any employee benefit plan, and similar items of compensation. Compensation shall also
include payments while on a leave of absence during which participation continues pursuant to
Section 2.1(g) to such extent as may be provided by the Company’s leave policy.

               (g) “Eligible Employee” means an Employee who meets the requirements set forth in Section 5
for eligibility to participate in the Plan. Eligible Employee shall also mean any other employee
of a Participating Company to the extent that local law requires participation in the Plan to be
extended to such employee.

               (h) “Employee” means a person treated as an employee of a Participating Company for purposes
of Section 423 of the Code. A Participant shall be deemed to have ceased to be an Employee either
upon an actual termination of employment or upon the corporation employing the Participant ceasing
to be a Participating Company. For purposes of the Plan, an individual shall not be deemed to have
ceased to be an Employee while on any military leave or other leave of absence approved by the
Company of three (3) months or less. If an individual’s leave of absence exceeds three (3) months,
the individual shall be deemed to have ceased to be an Employee on the first day immediately
following such three-month period unless the individual’s right to reemployment with the
Participating Company Group is guaranteed either by statute or by contract.

               
(i) “Fair Market Value” means, as of any date:

                    (i) If the Stock is listed on any established stock exchange or traded on the Nasdaq Global
Select Market or the Nasdaq Global Market, the Fair Market Value of a share of Stock shall be the
closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on
such exchange or market (or if the stock is traded on more than one exchange or market, the
exchange or market with the greatest volume of trading in the Stock) on the day of determination,
in any case as reported in The Wall Street Journal or such other source as the Board deems
reliable. In the absence of such markets for the Stock, the Fair Market Value shall be determined
in good faith by the Board.

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                    (ii) For purposes of this Plan, if the date as of which the Fair Market Value is to be
determined is not a market trading day, then solely for the purpose of determining Fair Market
Value such date shall be: (A) in the case of the Offering Date, the first market trading day
following the Offering Date; (B) in the case of the Purchase Date, the last market trading day
prior to the Purchase Date.

               (j) “Non-423(b) Plan” means an employee stock purchase plan which does not meet the
requirements set forth in Section 423(b) of the Code, as amended.

               (k) “Offering” means an offering of Stock as provided in Section 6.

               (l) “Offering Date” means, for any Offering, the first day of the Offering Period.

               (m) “Offering Period” means a period established in accordance with Section 6.

               (n) “Parent Corporation” means any present or future “parent corporation” of the Company, as
defined in Section 424(e) of the Code.

               (o) “Participant” means an Eligible Employee who has become a participant in an Offering
Period in accordance with Section 7 and remains a participant in accordance with the Plan.

               (p) “Participating Company” means the Company and any Parent Corporation or Subsidiary
Corporation. The Board or Committee may determine that some or all employees of any Participating
Company shall participate in the Non-423(b) Plan.

               (q) “Participating Company Group” means, at any point in time, the Company and all other
corporations collectively which are then Participating Companies.

               (r) “Plan” shall mean the Amended and Restated Qualcomm Incorporated 2001 Employee Stock
Purchase Plan, as amended from time to time, which includes a Code Section 423(b) Plan and a
Non-423(b) Plan component.

               (s) “Purchase Date” means, for any Offering, the last day of the Offering Period; provided,
however, that the Board in its discretion may establish one or more additional Purchase Dates
during any Offering Period.

               (t) “Purchase Price” means the price at which a share of Stock may be purchased under the
Plan, as determined in accordance with Section 9.

               (u) “Purchase Right” means an option granted to a Participant pursuant to the Plan to purchase
such shares of Stock as provided in Section 8, which the Participant may or may not exercise during
the Offering Period in which such option is outstanding. Such option arises from the right of a
Participant to withdraw any accumulated payroll deductions of the Participant not previously
applied to the purchase of Stock under the Plan and to terminate

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participation in the Plan during an Offering Period, in accordance with such rules and
procedures as may be established by Board.

               (v) “Spinoff Transaction” means a transaction in which the voting stock of an entity in the
Participating Company Group is distributed to the stockholders of a parent corporation as defined
by Section 424(e) of the Code, of such entity.

               (w) “Stock” means the common stock of the Company, as adjusted from time to time in accordance
with Section 4.2.

               (x) “Subscription Agreement” means an agreement in such form as specified by the Company which
is delivered in written form or by communicating with the Company in such other manner as the
Company may authorize, stating an Employee’s election to participate in the Plan and authorizing
payroll deductions under the Plan from the Employee’s Compensation.

               (y) “Subscription Date” means the Offering Date of an Offering Period, or such earlier date as
the Company shall establish.

               (z) “Subsidiary Corporation” means any present or future “subsidiary corporation” of the
Company, as defined in Section 424(f) of the Code.

               (aa) “Successor” means a corporation into or with which the Company is merged or consolidated
or which acquires all or substantially all of the assets of the Company and which is designated by
the Board as a Successor for purposes of the Plan.

          2.2 Construction. Captions and titles contained herein are for convenience only and
shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise
indicated by the context, the singular shall include the plural and the plural shall include the
singular. Use of the term “or” is not intended to be exclusive, unless the context clearly
requires otherwise.

     SECTION 3 Administration.

          3.1 Administration by the Board. The Plan shall be administered by the Board and its
designees. Subject to the provisions of the Plan, the Board shall determine all of the relevant
terms and conditions of Purchase Rights; provided, however, that all Participants granted Purchase
Rights pursuant to an Offering under the Code Section 423(b) Plan shall have the same rights and
privileges within the meaning of Section 423(b)(5) of the Code in such Offering. All expenses
incurred in connection with the administration of the Plan shall be paid by the Company.

          3.2 Authority of Officers. Any officer of the Company shall have the authority to act
on behalf of the Company with respect to any matter, right, obligation, determination or election
that is the responsibility of or that is allocated to the Company herein, provided that the officer
has actual authority with respect to such matter, right, obligation, determination or election.
Any decision or determination of the Company made by an officer having actual authority with
respect thereto, shall be final, binding and conclusive on the Participating

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Company Group, any Participant, and all persons having an interest in the Plan, or any
Purchase Right granted hereunder, unless such officer’s decision or determination is arbitrary or
capricious, fraudulent, or made in bad faith.

          3.3 Policies and Procedures Established by the Company. The Company may, from time to
time, consistent with the Plan and, for purposes of the Code Section 423(b) Plan, the requirements
of Section 423 of the Code, establish, interpret change or terminate such rules, guidelines,
policies, procedures, limitations, or adjustments as deemed advisable by the Company, in its
discretion, for the proper administration of the Plan, including, without limitation, (a) a minimum
payroll deduction amount required for participation in an Offering, (b) a limitation on the
frequency or number of changes permitted in the rate of payroll deduction during an Offering, (c)
an exchange ratio applicable to amounts withheld in a currency other than United States dollars,
(d) a payroll deduction greater than or less than the amount designated by a Participant in order
to adjust for the Company’s delay or mistake in processing a Subscription Agreement or in otherwise
effecting a Participant’s election under the Plan or, for purposes of the Code Section 423(b) Plan,
as advisable to comply with the requirements of Section 423 of the Code, and (e) determination of
the date and manner by which the Fair Market Value of a share of Stock is determined for purposes
of administration of the Plan.

The Board’s determination of the construction and interpretation of any provision of the Plan, and
any actions taken, and any decisions or determinations made pursuant to the terms of the Plan,
shall be final, binding and conclusive on the Participating Company Group, any Participant, and any
person having an interest in the Plan or any Purchase Right granted hereunder unless the Board’s
action, decision or determination is arbitrary or capricious, fraudulent, or made in bad faith.

          3.4 Indemnification. In addition to such other rights of indemnification as they may
have as members of the Board or officers or Employees of the Participating Company Group, members
of the Board and any officers or Employees of the Participating Company Group to whom authority to
act for the Board or the Company is delegated shall be indemnified by the Company against all
reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection
with the defense of any action, suit or proceeding, or in connection with any appeal therein, to
which they or any of them may be a party by reason of any action taken or failure to act under or
in connection with the Plan, or any right granted hereunder, and against all amounts paid by them
in settlement thereof (provided such settlement is approved by independent legal counsel selected
by the Company) or paid by them in satisfaction of a judgment in any such action, suit or
proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or
proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in
duties; provided, however, that within sixty (60) days after the institution of such action, suit
or proceeding, such person shall offer to the Company, in writing, the opportunity at its own
expense to handle and defend the same and to retain complete control over the litigation and/or
settlement of such suit, action or proceeding.

     SECTION
4 Shares Subject to Plan.1

          4.1 Maximum Number of Shares Issuable. Subject to adjustment as provided in Section
4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be
46,709,466; provided, however that no more than an aggregate of 46,309,466

 

			
	1	 	The amendment of the Amended and Restated Qualcomm Incorporated 2001 Employee Stock Purchase
Plan (the “Plan”) to increase the maximum number of shares issuable under the Plan
by 22,000,000 to 46,709,466 is subject to stockholder approval pursuant to Section
21 of the Plan. As a result, such amendment will not take effect until such approval is received,
which is expected to be at the next annual stockholders’ meeting.

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shares of Stock may be issued under the Code Section 423(b) Plan. The maximum aggregate
number of shares of Stock available under the Code Section 423(b) Plan and the Non-423(b) Plan
shall consist of authorized but unissued or reacquired shares of Stock, or any combination thereof.
If an outstanding Purchase Right for any reason expires or is terminated or canceled, the shares
of Stock allocable to the unexercised portion of that Purchase Right shall again be available for
issuance under the Plan; provided, however, that any such shares of Stock allocable to a Purchase
Right that has expired, terminated or been canceled under the Non-423(b) Plan shall only be
available again for issuance under the Non-423(b) Plan.

          4.2 Adjustments for Changes in Capital Structure. In the event of any stock dividend,
stock split, reverse stock split, recapitalization, combination, reclassification or similar change
in the capital structure of the Company, or in the event of any merger (including a merger effected
for the purpose of changing the Company’s domicile), sale of assets or other reorganization in
which the Company is a party, appropriate adjustments shall be made in the number and class of
shares subject to the Plan, each Purchase Right, and in the Purchase Price. If a majority of the
shares of the same class as the shares subject to outstanding Purchase Rights are exchanged for,
converted into, or otherwise become (whether or not pursuant to an Ownership Change Event) shares
of another corporation (the “New Shares”), the Board may unilaterally amend the outstanding
Purchase Rights to provide that such Purchase Rights are exercisable for New Shares. In the event
of any such amendment, the number of shares subject to, and the Purchase Price of, the outstanding
Purchase Rights shall be adjusted in a fair and equitable manner, as determined by the Board, in
its discretion. Notwithstanding the foregoing, any fractional share resulting from an adjustment
pursuant to this Section 4.2 shall be rounded down to the nearest whole number, and in no event may
the Purchase Price be decreased to an amount less than the par value, if any, of the stock subject
to the Purchase Right.

     SECTION 5 Eligibility.

          5.1 Employees Eligible to Participate. Except as otherwise provided in this Section
5, an Employee shall be eligible to participate in an Offering if such Employee, as of the Offering
Date, is employed by the Company or any other Participating Company designated by the Board as a
corporation whose Employees may participate in the Offering. However, unless otherwise required
under applicable local law, an Employee may not be eligible to participate in an Offering if the
Employee, as of the Offering Date, either: (a) is customarily employed by the Participating
Company Group for twenty (20) hours or less per week, (b) is customarily employed by the
Participating Company Group for not more than five (5) months in any calendar year or (c) has not
completed thirty (30) days of service with a Participating Company, or such other service
requirement, up to a maximum of two (2) years, which the Board may require. Employees of a
Participating Company designated to participate in the Non-423(b) Plan are eligible to participate
in the Non-423(b) Plan only if they are selected to participate by the Board or Committee, which
selection shall be in the sole discretion of the Board or Committee. Notwithstanding the foregoing,
no employee of the Company or a Participating Company designated to participate in the Non-423(b)
Plan shall be eligible to participate in the Non-423(b) Plan if he or she is an officer or director
of the Company subject to the requirements of Section 16 of the U.S. Securities Exchange Act of
1934, as amended (the “Exchange Act”) with respect to the Company’s securities.

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          5.2 Exclusion of Certain Stockholders. Notwithstanding any provision of the Plan to
the contrary, no Employee shall be treated as an Eligible Employee and granted a Purchase Right
under the Plan if, immediately after such grant, the Employee would own or hold options to purchase
stock of the Company or of any Parent Corporation or Subsidiary Corporation possessing five percent
(5%) or more of the total combined voting power or value of all classes of stock of such
corporation, as determined in accordance with Section 423(b)(3) of the Code. For purposes of this
Section 5.2, the attribution rules of Section 424(d) of the Code shall apply in determining the
stock ownership of such Employee.

          5.3 Determination by Company. The Company shall determine in good faith and in the
exercise of its discretion whether an individual has become or has ceased to be an Employee or an
Eligible Employee and the effective date of such individual’s attainment or termination of such
status, as the case may be. For purposes of an individual’s eligibility to participate in or other
rights, if any, under the Plan as of the time of the Company’s determination, all such
determinations by the Company shall be final, binding and conclusive, unless the Company’s
determination is arbitrary or capricious, fraudulent, or made in bad faith notwithstanding that the
Company or any court of law or governmental agency subsequently makes a contrary determination.

     SECTION 6 Offerings.

          The Plan shall be implemented by sequential Offerings of approximately six (6) months duration
or such other duration as the Board shall determine (an “Offering Period”). Offering Periods shall
be established by the Board, in its sole and absolute discretion, and such Offering Periods may
have different durations or different commencing or ending dates; provided, however, that no
Offering Period may have a duration exceeding twenty-seven (27) months.

     SECTION 7 Participation in the Plan.

          7.1 Initial Participation. An Eligible Employee may become a Participant in an
Offering Period by delivering a properly completed Subscription Agreement, in accordance with such
rules and procedures as may be specified by the Company. An Eligible Employee who does not deliver
a properly completed Subscription Agreement to the Company in the required time period shall not
participate in the Plan for that Offering Period. Furthermore, the Eligible Employee may not
participate in a subsequent Offering Period unless a properly completed Subscription Agreement is
delivered to the Company on or before the Subscription Date for such subsequent Offering Period.

          7.2 Continued Participation. A Participant shall automatically participate in the
next Offering Period commencing immediately after the Purchase Date of each Offering Period in
which the Participant participates provided that the Participant remains an Eligible Employee on
the Offering Date of the new Offering Period and has not either (a) withdrawn from the Plan
pursuant to Section 12.1 or (b) terminated employment as provided in Section 13. A Participant who
may automatically participate in a subsequent Offering Period, as provided in this Section, is not
required to deliver any additional Subscription Agreement for the subsequent Offering Period in
order to continue participation in the Plan. However, a Participant may deliver a new

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Subscription Agreement for a subsequent Offering Period in accordance with the procedures set
forth in Section 7.1 if the Participant desires to change any of the elections contained in the
Participant’s then effective Subscription Agreement.

     SECTION 8 Right to Purchase Shares.

          8.1 Grant of Purchase Right.
—

               (a) Except as set forth below (or as otherwise specified by the Board prior to the Offering
Date), on the Offering Date of each Offering Period, each Participant in that Offering Period shall
be granted automatically a Purchase Right consisting of an option to purchase that number of whole
shares of Stock determined by dividing Twelve Thousand Five Hundred Dollars ($12,500) by the Fair
Market Value of a share of Stock on such Offering Date. In connection with any Offering made under
this Plan, the Board or the Committee may specify a maximum number of shares of Stock which may be
purchased by any employee as well as a maximum aggregate number of shares of Stock which may be
purchased by all eligible employees pursuant to such Offering. In addition, in connection with any
Offering which contains more than one Purchase Date, the Board or the Committee may specify a
maximum aggregate number of shares which may be purchased by all eligible employees on any given
Purchase Date under the Offering.

               (b) If the aggregate purchase of shares of Stock upon exercise of rights granted under the
Offering would exceed any such maximum aggregate number, the Board or the Committee shall make a
pro rata allocation of the shares of Stock available in as nearly a uniform manner as shall be
practicable and as it shall deem to be equitable. No Purchase Right shall be granted on an
Offering Date to any person who is not, on such Offering Date, an Eligible Employee.

          8.2 Substitution of Rights. The grant of rights under an Offering may be done to
carry out the substitution of rights under the Plan for pre-existing rights granted under another
employee stock purchase plan, if such substitution is pursuant to a transaction described in
Section 424(a) of the Code (or any successor provision thereto) and the characteristics of such
substitute rights conform to the requirements of Section 424(a) of the Code (or any successor
provision thereto) and will not cause the disqualification of the Code Section 423(b) Plan under
Section 423 of the Code. Notwithstanding the other terms of the Plan, such substitute rights shall
have the same characteristics as the characteristics associated with such pre-existing rights,
including, but not limited to, the following:

               (a) the date on which such pre-existing right was granted shall be the “Offering Date” of such
substitute right for purposes of determining the date of grant of the substitute right;

               (b) the Offering for such substitute right shall begin on its Offering Date and end coincident
on the applicable Purchase Date, but no later than the end of the offering (as determined under the
terms of such offering) under which the pre-existing right was granted.

          8.3 Pro Rata Adjustment of Purchase Right. If the Board establishes an Offering
Period of any duration other than six months, then any limitation on the number of shares of

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Stock subject to each Purchase Right granted on the Offering Date of such Offering Period set
forth in Section 8.1(a) shall be prorated based upon the ratio which the number of months in such
Offering Period bears to six (6).

          8.4 Calendar Year Purchase Limitation. Notwithstanding any provision of the Plan to
the contrary, no Participant shall be granted a Purchase Right which permits his or her right to
purchase shares of Stock under the Plan to accrue at a rate which, when aggregated with such
Participant’s rights to purchase shares under all other employee stock purchase plans of a
Participating Company intended to meet the requirements of Section 423 of the Code, exceeds
Twenty-Five Thousand Dollars ($25,000) in Fair Market Value (or such other limit, if any, as may be
imposed by the Code) for each calendar year in which such Purchase Right is outstanding at any
time. For purposes of the preceding sentence, the Fair Market Value of shares purchased during a
given Offering Period shall be determined as of the Offering Date for such Offering Period. The
limitation described in this Section shall be applied in conformance with applicable regulations
under Section 423(b)(8) of the Code.

     SECTION 9 Purchase Price.

          The Purchase Price for an Offering Period shall be eighty-five percent (85%) of the lesser of
(a) the Fair Market Value of a share of Stock on the Offering Date of the Offering Period, or (b)
the Fair Market Value of a share of Stock on the Purchase Date. Notwithstanding the foregoing, the
Board, in its sole discretion, may establish the Purchase Price at which each share of Stock may be
acquired in an Offering Period upon the exercise of all or any portion of a Purchase Right;
provided, however, that the Purchase Price shall not be less than eighty-five percent (85%) of the
lesser of (a) the Fair Market Value of a share of Stock on the Offering Date of the Offering Period
or (b) the Fair Market Value of a share of Stock on the Purchase Date.

     SECTION 10 Accumulation of Purchase Price Through Payroll Deduction.

          Shares of Stock acquired pursuant to the exercise of all or any portion of a Purchase Right
may be paid for only by means of payroll deductions from the Participant’s Compensation accumulated
during the Offering Period for which such Purchase Right was granted, and, if a payroll deduction
is not permitted under a statute, regulation, rule of a jurisdiction, or is not administratively
feasible, such other payments as may be approved by the Company, subject to the following:

          10.1 Amount of Payroll Deductions. Except as otherwise provided herein, the amount to
be deducted under the Plan from a Participant’s Compensation on each payday during an Offering
Period shall be determined by the Participant’s Subscription Agreement. The Subscription Agreement
shall set forth the percentage of the Participant’s Compensation to be deducted on each payday
during an Offering Period in whole percentages, up to fifteen percent (15%). The Board may change
the foregoing limits on payroll deductions effective as of any Offering Date.

          10.2 Commencement of Payroll Deductions. Payroll deductions shall commence on the
first payday following the Offering Date and shall continue through the last

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payday prior to the end of the Offering Period unless sooner altered or terminated as provided
herein.

          10.3 Election to Change or Stop Payroll Deductions. During an Offering Period, to the
extent provided for in the Offering, a Participant may elect to decrease the rate of, or to stop,
deductions from his or her Compensation by delivering to the Company an amended Subscription
Agreement, in such form and manner as specified by the Company, authorizing such change on or
before the Change Notice Date, as defined below. A Participant who elects, effective following the
first payday of an Offering Period, to decrease the rate of his or her payroll deductions to zero
percent (0%) shall nevertheless remain a Participant in the current Offering Period unless such
Participant withdraws from the Plan as provided in Section 12.1. The “Change Notice Date” shall be
the day established in accordance with procedures established by the Company.

          10.4 Company’s Holding of Deductions. All payroll deductions from a Participant’s
Compensation shall be deposited with the general funds of the Company, and to the extent permitted
by applicable law, may be used by the Company for any corporate purpose. No interest will accrue
on the payroll deductions from a Participant under this Plan, except as otherwise required by
applicable law. If such interest is required, all accrued interest will not be used to purchase
additional shares of Stock on a Purchase Date, and such accrued interest shall be refunded to the
Participant following such Purchase Date (or, if applicable, the Participant’s withdrawal from the
Plan pursuant to Section 12.1 or termination of employment or eligibility as described in Section
13).

          10.5 Voluntary Withdrawal of Deductions. A Participant may withdraw payroll
deductions credited to the Plan and not previously applied toward the purchase of Stock only as
provided in Section 12.1.

          10.6 Contributions Under Non-423(b) Plan. In the sole discretion of the Board or
Committee and if specified in the terms of the Offering, a Participant at a Participating Company
designated to participate in the Non-423(b) Plan may make additional payments into his or her
account, provided that such Participant has not had the maximum amount withheld during the Offering
pursuant to Section 10.1 above.

     SECTION 11 Purchase of Shares.

          11.1 Exercise of Purchase Right. On each Purchase Date, each Participant’s
accumulated payroll deductions and other additional payments specifically permitted by the Plan
(without any increase for interest), will be applied to the purchase of whole shares of Stock, up
to the maximum number of shares permitted pursuant to the terms of the Plan and the applicable
Offering, at the Purchase Price for such Offering. No fractional shares shall be issued upon the
exercise of Purchase Rights granted under the Plan. The amount, if any, of each Participant’s
accumulated payroll deductions remaining after the purchase of shares on the Purchase Date of an
Offering shall be refunded in full to the Participant after such Purchase Date.

          11.2 Pro Rata Allocation of Shares. If the number of shares of Stock which might be
purchased by all Participants in the Plan on a Purchase Date exceeds the number of

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shares of Stock available in the Plan as provided in Section 4.1, the Company shall make a pro
rata allocation of the remaining shares in as uniform a manner as practicable and as the Company
determines to be equitable. Any fractional share resulting from such pro rata allocation to any
Participant shall be disregarded.

          11.3 Delivery of Shares. As soon as practicable after each Purchase Date, the Company
shall arrange the delivery to each Participant of the shares acquired by the Participant on such
Purchase Date; provided that the Company may deliver such shares to a broker designated by the
Company that will hold such shares for the benefit of the Participant. Shares to be delivered to a
Participant under the Plan shall be registered, or held in an account, in the name of the
Participant, or, if requested by the Participant, such other name or names as the Company may
permit under rules established for the operation and administration of the Plan.

          11.4 Tax Withholding. At the time a Participant’s Purchase Right is exercised, in
whole or in part, or at the time a Participant disposes of some or all of the shares of Stock he or
she acquires under the Plan, the Participant shall make adequate provision for the federal, state,
local and foreign tax withholding obligations, if any, of the Participating Company Group which
arise upon exercise of the Purchase Right or upon such disposition of shares, respectively. The
Participating Company Group may, but shall not be obligated to, withhold from the Participant’s
compensation the amount necessary to meet such withholding obligations.

          11.5 Expiration of Purchase Right. A Purchase Right shall expire immediately upon the
end of the Offering Period to the extent it exceeds the number of shares of Stock which are
purchased with a Participant’s accumulated payroll deductions or other permitted contribution
during any Offering Period.

          11.6 Provision of Reports and Stockholder Information to Participants. Each
Participant who has exercised all or part of his or her Purchase Right shall receive, as soon as
practicable after the Purchase Date, a report of such Participant’s account setting forth the total
payroll deductions accumulated prior to such exercise, the number of shares of Stock purchased, the
Purchase Price for such shares, the date of purchase and the cash balance, if any, remaining
immediately after such purchase that is to be refunded. The report required by this Section may be
delivered in such form and by such means, including by electronic transmission, as the Company may
determine. In addition, each Participant shall be given access to information concerning the
Company equivalent to that information provided generally to the Company’s common stockholders.

     SECTION 12 Withdrawal from Plan.

          12.1 Voluntary Withdrawal from the Plan. A Participant may withdraw from the Plan by
signing and delivering to the Company’s designated office a written notice of withdrawal on a form
provided by the Company for this purpose or by communicating with the Company in such other manner
as the Company may authorize. A Participant who voluntarily withdraws from the Plan is prohibited
from resuming participation in the Plan in the same Offering from which he or she withdrew, but may
participate in any subsequent Offering by again satisfying the requirements of Section 5 and
Section 7.1. The Company may impose, from time to time, a requirement that the notice of
withdrawal from the Plan be on file with the

12

 

Company’s designated office for a reasonable period prior to the effectiveness of the
Participant’s withdrawal.

          12.2 Return of Payroll Deductions. Upon a Participant’s voluntary withdrawal from the
Plan pursuant to Section 12.1, the Participant’s accumulated payroll deductions which have not been
applied toward the purchase of shares shall be refunded to the Participant as soon as practicable
after the withdrawal (and except as otherwise provided in Section 10.4, without the payment of any
interest), and the Participant’s participation in the Plan shall terminate. Such accumulated
payroll deductions to be refunded in accordance with this Section may not be applied to any other
Offering under the Plan.

     SECTION 13 Termination of Employment.

          13.1 General. Upon a Participant’s ceasing, prior to a Purchase Date, to be an
Employee of the Participating Company Group for any reason, the Participant’s participation in the
Plan shall terminate immediately, except as otherwise provided in Section 2.1(g) and Section 13.3.

          13.2 Return of Payroll Deductions. Upon termination of participation, the terminated
Participant’s accumulated payroll deductions which have not been applied toward the purchase of
shares shall, as soon as practicable, be returned to the Participant or, in the case of the
Participant’s death, to the Participant’s legal representative, and all of the Participant’s rights
under the Plan shall terminate. Except as otherwise provided in Section 10.4, interest shall not
be paid on sums returned pursuant to this Section 13. A Participant whose participation has been
so terminated may again become eligible to participate in future Offerings under the Plan by
satisfying the requirements of Section 5 and Section 7.1.

          13.3 Continued Participation upon Release of Claims. Upon a Participant’s ceasing,
prior to a Purchase Date, to be an Employee of the Participating Company Group for any reason, the
Participant’s participation in the Plan shall continue, subject to the Participant’s execution of a
general release of claims satisfactory to the Company, for an additional three (3) months;
provided, however, this Section shall not apply in the event of the Participant’s death, a Spinoff
Transaction, or to any Participant on a leave of absence governed by Section 2.1(g).

     SECTION 14 Change in Control.

          14.1 Definitions.

               (a) An “Ownership Change Event” shall be deemed to have occurred if any of the following
occurs with respect to the Company: (i) the direct or indirect sale or exchange in a single or
series of related transactions by the stockholders of the Company of more than fifty percent (50%)
of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party;
(iii) the sale, exchange, or transfer of all or substantially all, as determined by the Board in
its sole discretion, of the assets of the Company; or (iv) a liquidation or dissolution of the
Company.

               (b) A “Change in Control” shall mean an Ownership Change Event or a series of related
Ownership Change Events (collectively, a “Transaction”) wherein the

13

 

stockholders of the Company immediately before the Transaction do not retain immediately after
the Transaction, in substantially the same proportions as their ownership of shares of the
Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership
of more than fifty percent (50%) of the total combined voting power of the outstanding voting
securities of the Company or, in the case of a Transaction described in Section 14.1(a)(iii), the
corporation or other business entity to which the assets of the Company were transferred (the
“Transferee”), as the case may be. The Board shall determine in its sole discretion whether
multiple sales or exchanges of the voting securities of the Company or multiple Ownership Change
Events are related. Notwithstanding the preceding sentence, a Change in Control shall not include
any Transaction in which the voting stock of an entity in the Participating Company Group is
distributed to the stockholders of a parent corporation, as defined in Section 424(e) of the Code,
of such entity. Any Ownership Change Event resulting from an underwritten public offering of the
Company’s Stock or the stock of any Participating Company shall not be deemed a Change in Control
for any purpose hereunder.

          14.2 Effect of Change in Control on Purchase Rights. In the event of a Change in
Control, the surviving, continuing, successor, or purchasing corporation or parent corporation
thereof, as the case may be (the “Acquiring Corporation”), may assume the Company’s rights and
obligations under the Plan. If the Acquiring Corporation elects not to assume the Company’s rights
and obligations under outstanding Purchase Rights, the Purchase Date of the then current Offering
Period shall be accelerated to a date before the date of the Change in Control specified by the
Board, but the number of shares of Stock subject to outstanding Purchase Rights shall not be
adjusted, provided, however, that the Purchase Date with respect to Purchase Rights granted
pursuant to a Non-423(b) Plan shall be accelerated as contemplated by the foregoing sentence only
to the extent the event constituting the Change in Control qualifies as a “change in ownership” or
“change in effective control” of the Company or a “change in ownership of a substantial portion of
the assets” of the Company, as these concepts are defined in U.S. Treas. Reg. § 1.409A-3(i)(5) or
successor provisions. All Purchase Rights which are neither assumed by the Acquiring Corporation
in connection with the Change in Control nor exercised as of the date of the Change in Control
shall terminate and cease to be outstanding effective as of the date of the Change in Control.

     SECTION 15 Nontransferability of Purchase Rights.

          Neither payroll deductions nor a Participant’s Purchase Right may be assigned, transferred,
pledged or otherwise disposed of in any manner other than as provided by the Plan or by will or the
laws of descent and distribution. Any such attempted assignment, transfer, pledge or other
disposition shall be without effect, except that the Company may treat such act as an election to
withdraw from the Plan as provided in Section 12.1. A Purchase Right shall be exercisable during
the lifetime of the Participant only by the Participant.

     SECTION 16 Compliance with Securities Law and Other Applicable Requirements.

          The issuance of shares under the Plan shall be subject to compliance with all applicable
requirements of federal, state and foreign law with respect to such securities. A Purchase Right
may not be exercised if the issuance of shares upon such exercise would constitute a violation of
any applicable federal, state or foreign securities laws or other law or

14

 

regulations or the requirements of any securities exchange or market system upon which the
Stock may then be listed. In addition, no Purchase Right may be exercised unless (a) a
registration statement under the U.S. Securities Act of 1933, as amended, shall at the time of
exercise of the Purchase Right be in effect with respect to the shares issuable upon exercise of
the Purchase Right, or (b) in the opinion of legal counsel to the Company, the shares issuable upon
exercise of the Purchase Right may be issued in accordance with the terms of an applicable
exemption from the registration requirements of said Act. The inability of the Company to obtain
from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal
counsel to be necessary to the lawful issuance and sale of any shares under the Plan shall relieve
the Company of any liability in respect of the failure to issue or sell such shares as to which
such requisite authority shall not have been obtained. Anything in the foregoing to the contrary
notwithstanding, Purchase Rights granted under a Non-423(b) Plan may be suspended, delayed or
otherwise deferred for any of the reasons contemplated in this Section 16 only to the extent such
suspension, delay or deferral is permitted under U.S. Treas. Reg. §§ 1.409A-2(b)(7),
1.409A-1(b)(4)(ii) or successor provisions, or as otherwise permitted under Section 409A of the
Code. As a condition to the exercise of a Purchase Right, the Company may require the Participant
to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any
applicable law or regulation, and to make any representation or warranty with respect thereto as
may be requested by the Company.

     SECTION 17 Rules for Foreign Jurisdictions.

          17.1 Compliance with Foreign Law. The Board or Committee may adopt rules or
procedures relating to the operation and administration of the Plan to accommodate the specific
requirements of local laws and procedures. Without limiting the generality of the foregoing, the
Board or Committee is specifically authorized to adopt rules and procedures regarding handling of
payroll deductions, payment of interest, conversion of local currency, payroll tax, withholding
procedures and handling of stock certificates which vary with local requirements.

          17.2 Non-423(b) Plan Component. The Board or Committee may also adopt rules,
procedures or sub-plans applicable to particular Participating Companies or locations, which
sub-plans may be designed to be outside the scope of Code Section 423. The rules of such sub-plans
may take precedence over other provisions of this Plan, with the exception of Section 4.1, but
unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern
the operation of such sub-plan. To the extent inconsistent with the requirements of Section 423,
such sub-plan shall be considered part of the Non-423(b) Plan, and rights granted thereunder shall
not be considered to comply with Code Section 423.

     SECTION 18 Rights as a Stockholder and Employee.

          A Participant shall have no rights as a stockholder by virtue of the Participant’s
participation in the Plan until the date of the issuance of shares purchased pursuant to the
exercise of the Participant’s Purchase Right (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made
for dividends, distributions or other rights for which the record date is prior to the date such
share is issued, except as provided in Section 4.2. Nothing herein shall confer upon a

15

 

Participant any right to continue in the employ of the Participating Company Group or
interfere in any way with any right of the Participating Company Group to terminate the
Participant’s employment at any time.

     SECTION 19 Distribution on Death.

          If a Participant dies, the Company shall deliver any shares or cash credited to the
Participant to the Participant’s legal representative.

     SECTION 20 Notices.

          All notices or other communications by a Participant to the Company under or in connection
with the Plan shall be deemed to have been duly given when received in the form specified by the
Company at the location, or by the person, designated by the Company for the receipt thereof.

     SECTION 21 Amendment or Termination of the Plan.

          The Board may at any time amend or terminate the Plan, except that (a) such termination shall
not affect Purchase Rights previously granted under the Plan, except as permitted under the Plan,
and (b) no amendment may adversely affect a Purchase Right previously granted under the Plan
(except to the extent permitted by the Plan or as may be necessary to qualify the Code Section
423(b) Plan as an employee stock purchase plan pursuant to Section 423 of the Code or to obtain
qualification or registration of the shares of Stock under applicable federal, state or foreign
securities laws). In addition, an amendment to the Plan must be approved by the stockholders of
the Company within twelve (12) months of the adoption of such amendment if such amendment would
increase the maximum aggregate number of shares of Stock that may be issued under the Plan (except
by operation of the provisions of Section 4.1 or Section 4.2) or would change the definition of the
corporations that may be designated by the Board as Participating Companies.

	 	 	SECTION 22 Code Section 409A.

          The Code Section 423(b) Plan is exempt from the application of Section 409A. The Non-423(b)
Plan is intended to comply and shall be administered in a manner that is intended to comply with
Section 409A of the Code and shall be construed and interpreted in accordance with such intent. To
the extent a Purchase Right or the vesting, payment, settlement or deferral thereof is subject to
Section 409A of the Code, the Purchase Right shall be granted, paid, exercised, settled or deferred
in a manner that will comply with Section 409A of the Code, including the final regulations and
other guidance issued with respect thereto, except as otherwise determined by the Committee. Any
provision of the Non-423(b) Plan that would cause the grant of a Purchase Right or the payment,
settlement or deferral thereof to fail to satisfy Section 409A of the Code shall be amended to
comply with Section 409A of the Code on a timely basis, which amendment may be made on a
retroactive basis, in accordance with the final regulations and guidance issued under Section 409A
of the Code. Notwithstanding the foregoing, the Company shall have no liability to a Participant
or any other party if the Purchase Right that is intended to be exempt from, or compliant with
Section 409A of the Code is not so exempt or compliant or for any action taken by the Committee
with respect thereto.

16Exhibit 10.1

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.

Publicis Touchpoint Solutions, Inc.

2000 Lenox Drive, Suite 100

Lawrenceville, NJ 08648

Tel: 609-219-0081

Fax: 609-219-9188

PROFESSIONAL DETAILING SERVICES AGREEMENT

PROFESSIONAL DETAILING SERVICES AGREEMENT, dated as of July 14, 2010, between PUBLICIS
TOUCHPOINT SOLUTIONS, INC. (“Publicis”), a New Jersey corporation with offices at 2000 Lenox Drive,
Suite 100, Lawrenceville, New Jersey 08648 and SOMAXON PHARMACEUTICALS, INC. (“Client”), a
Delaware corporation with offices at 3570 Carmel Mountain Road, Suite 100, San Diego, CA 92130.

Background

A. Client develops, distributes and sells prescription pharmaceutical products;

B. Publicis assists pharmaceutical and healthcare companies in promoting and selling their
over-the-counter and/or prescription pharmaceutical Products by making Calls on Target Prescribers
to explain to, and discus with, Target Prescribers the Products, their approved uses, their
contraindications and other information regarding the Products (such communications with Target
Prescribers are referred to in this Agreement as “Detailing”); and

C. Client desires that Publicis engage in the Detailing of certain Client Products in the
Territory to the extent agreed by them from time to time.

In consideration of the premises and the mutual agreements of the parties in this Agreement,
the parties, intending to be legally bound, agree as follows:

1. Definitions. In this Agreement, the following terms shall have the following meanings,
except where the context otherwise requires:

“Call” means an interactive face-to-face discussion between a Representative and a
Target Prescriber during which discussion the Representative provides Client-specified information
regarding the Product and may offer samples of the Product and use Product Promotional Materials in
accordance with this Agreement.

“Detailing” has the meaning set forth in paragraph B above.

“Product” means any prescription pharmaceutical product of Client that is made subject
to this Agreement by the signing of a Supplement in accordance with this Agreement.

 

 

 

“Product Promotional Materials” means Client-provided written, printed, graphic and/or
other tangible materials relating to the Product and intended for use by Representatives during
Calls.

“Program” means a program of Detailing to be conducted by the Representatives with
respect to a particular Product or Products pursuant to this Agreement.

“Representative” means a person employed by Publicis to conduct Detailing activities
in connection with a Program.

“Supplement” means a supplemental agreement to this Agreement, signed on behalf of
Client and Publicis (which may be in substantially the form of Exhibit A to this Agreement or any
other form determined to be appropriate by both parties) that contains the specific terms of one or
more individual Program(s), including, but not limited to (a) the Product or Products covered; (b)
the Territory; (c) the number, timing of hiring and qualifications of Representatives to be
assigned to the Program(s) and the number and types of Calls to be made; (d) the Target
Prescribers; (e) applicable Training Programs; (f) the duration of the Program; and (g) the
compensation and expenses payable and reimbursable to Publicis.

“Target Prescriber” means a primary care physician (i.e., internist, family
practitioner or general practitioner) or specialist physician or para-professional designated in a
Supplement by Client (or otherwise specified by Client as set forth in any Supplement) with respect
to a Program.

“Territory” means the geographical area or areas designated by Client in a Supplement
with respect to a Program.

“Training Program” means a program conducted by Client, with the assistance of
Publicis, for training the Representatives and field managers with respect to a particular Product
and/or Program.

2. Scope of Activities

(A) This Agreement contains the general agreements between the parties that will apply to and
govern the individual Programs conducted from time to time by the parties. For each such
individual Program, the parties will, in their discretion, enter into a Supplement containing the
specific information, terms and conditions relating to that Program. Any such Supplement shall be
governed by the provisions of this Agreement, except to the extent that such Supplement modifies or
conflicts with a provision of this Agreement. In the event that a provision of this Agreement is in
conflict with any information in a Supplement, the information in the Supplement shall be
controlling. In the event that a provision of this Agreement is modified, all other provisions of
this Agreement shall remain in full force as written.

(B) With respect to each Program, Publicis shall (i) engage in Detailing of each applicable
Product in the applicable Territory as provided in the Supplement, and (ii) maintain a sales force
of Representatives to Detail the Product in accordance with the applicable Supplement.

 

2

 

(C) During the term of each Program, the parties shall be responsible for the following
respective duties and obligations to the extent applicable in connection with each Program:

(i) Publicis will recruit and hire the agreed number of Representatives as provided in a
Supplement in accordance with the specifications and qualifications included in the Supplement,
whose exclusive activities shall be to Detail the Product for that Program in the Territory.
Publicis shall not hire a Representative for any Program without the prior approval of Client.
Publicis will notify Client within one (1) business day of any new vacancy in its team of
Representatives during the term of any Program, and Publicis will use commercially reasonable best
efforts to fill any vacancy within 20 business days after such notice (unless Client instructs
Publicis not to fill such vacancy within such timeframe).

(ii) Publicis will not (A) hire any Representatives for any Program hereunder that are subject
to legal restrictions, as determined by Publicis’ background check investigation process, that
would prevent their ability to Detail Products in accordance with this Agreement and the
applicable Supplement, or (B) utilize the services in connection with any Program of any employee,
consultant, contractor or agent that has been (i) disqualified or debarred by the FDA or any other
regulatory body having jurisdiction of the manufacturing, sale or marketing of Products or (ii)
excluded from Federal health care programs. Further, Publicis shall use its commercially reasonable
efforts to ensure that Representatives are not subject to any non-competition obligations that
would prevent their ability to Detail Products in accordance with this Agreement and the applicable
Supplement.

(iii) Publicis shall maintain records of all completed Calls. Upon Client’s reasonable
request, Publicis management representatives shall consult from time to time with Client as to the
progress of each Program. Unless otherwise provided in a Supplement, Client will provide or
approve the Territory and Target Prescriber list at or prior to the time a Supplement for a Program
is executed. Within the first 90 days of the Program, Publicis may, in its discretion, recommend
to Client changes and or updates to the Territory alignment and Target Prescriber list.

(iv) Publicis shall provide additional Publicis management and supervisory personnel to
coordinate and support the activities of the Representatives as Publicis determines to be
appropriate to accomplish Publicis’ responsibilities under each Program. The number and type of
Publicis management and supervisory personnel may be further defined in the Supplement.

(v) Publicis will procure the computer equipment, as defined in each Supplement, on behalf of
Client. Publicis or its agents will be responsible for the configuration, deployment and
maintenance of all hardware and software systems and other equipment specified in the applicable
Supplement to be used by its field personnel. Client shall bear the full costs of the support
listed in the preceding sentence or described in a Supplement and shall reimburse Publicis as
further outlined in a Supplement. Publicis will be responsible for making commercially reasonable
efforts to ensure that such systems and equipment are compatible and synchronized with Client’s
systems, as applicable. Publicis shall procure fleet automobiles on behalf of Somaxon under a two
year lease agreement. All costs related to the fleet automobile lease, including without
limitation, maintenance and insurance, will be paid for by Client on a pass thru basis as further
defined in a Supplement.

(vi) As the employer of the Representatives, Publicis shall have responsibility for their
direction and control. Publicis agrees that the Representatives and other Publicis personnel will
cooperate fully with Client and its district managers in their monitoring of the Program and will
accept sales and marketing direction from Client. Client’s employees shall be entitled to ride
with the Representatives and to attend and participate in any Call. Client shall be entitled to
give coaching-related feedback directly to any Representative regarding his or her performance. Subject to sub clause (vii), below, if Client desires to provide formal
corrective or disciplinary action or establish corrective or disciplinary procedures for a
Representative, Client and Publicis shall agree upon such action or procedure, provided that only
Publicis shall discuss and implement such action or procedure with a Representative.

 

3

 

(vii) Publicis shall promptly remove from any Program any Representative or field manager upon
Client’s lawful request or as required by Publicis’ own policies or any applicable federal or state
laws or regulations, provided that the request for removal is not based on sex, race, creed, color,
national origin, or any other protected status. Publicis will use its commercially reasonable best
efforts to fill any such vacancy within 20 business days after such notice (unless Client instructs
Publicis not to fill such vacancy within such timeframe).

(viii) In connection with the Detailing of the Products, Publicis shall use only Product
Promotional Materials provided by Client, in each case only in strict compliance with Client’s
instructions relating to each item of Product Promotional Materials. Publicis shall immediately
cease the use of any Product Promotional Materials when instructed to do so in writing by Client.
Publicis shall use the Product Promotional Materials only for the purposes of this Agreement.
Representatives shall make no claims, statements or representations regarding Products other than
those expressly authorized by Client.

(ix) Client shall provide to Publicis with respect to each Program, at Client’s expense,
Product Promotional Materials in sufficient quantities to enable the Representatives to Detail the
Product. The shipment of all Product Promotional Materials shall be at Client’s expense, and the
storage of Product Promotional Materials by Publicis personnel shall be at Client’s expense, or as
outlined in a Supplement. Publicis personnel shall not rent storage facilities for the Product
Promotional Materials without the prior consent of Client.

(x) Client shall have sole discretion regarding the content of all Product Promotional
Materials, and all copyright and other intellectual property rights in the Product Promotional
Materials shall remain vested in Client. Publicis shall not develop, create or use any other
promotional materials or literature in connection with the Programs or the Products.

(xi) Publicis shall neither add, delete or modify any claims, including, but not limited to,
efficacy or safety claims nor make any changes (including, but not limited to, underlining or
adding notes) in the Product Promotional Materials. Publicis shall not make any disparaging,
untrue or misleading statements or comments about Client or its competitors or the products or
employees of any of them. Publicis shall Detail the Products in accordance with all applicable
laws, rules regulations and professional guidelines, including, but not limited to, any applicable
provisions of the Federal Food, Drug and Cosmetic Act, the American Medical Association Gifts to
Physicians from Industry Guidelines, the Prescription Drug Marketing Act (“PDMA”), the
Medicare-Medicaid Anti-Fraud and Abuse Amendments, the PhRMA Code on Interactions with Healthcare
Professionals, the False Claims Act, the Medicare and Medicaid Patient Protection Act of 1987, as
amended, all applicable laws or regulations relating to the protection of the privacy of
personally-identifiable data (“Data Protection Laws”), all Department of Health and Human Services
OIG Guidance applicable to any of the foregoing, and all applicable state law requirements
(collectively, the “Applicable Requirements”).

 

4

 

(xii) Publicis will timely and accurately collect such information that Client reasonably
requests relating to Calls, Details and the Program (the “Data”) and as permitted within Publicis sales force automation tool, including all data required to
facilitate Client’s compliance with applicable state law reporting requirements and other
Applicable Requirements, and Publicis will maintain such Data and share such Data with Client in
accordance with Client’s specifications. The Data and Client’s specifications with regards to such
Data will be specified in the applicable Supplement or will otherwise be mutually agreed by the
parties.

(D) Client shall make available to Publicis, at Client’s expense, a reasonable number of
Client’s sales training and marketing personnel to assist and consult with Publicis’ product and
sales management teams regarding the Detailing of the Products from time to time, except as
otherwise provided in a Supplement.

(E) Client shall be solely responsible for accepting and fulfilling purchase orders, billing
and returns with respect to the Products and for establishing the terms and conditions of the sale
of the Products, including, but not limited to, the price at which Products will be sold, whether
the Products shall be subject to any discounts, and the distribution of the Products.

(F) Client shall make reasonably available to Publicis, at Client’s expense, relevant market
share performance data relative to each Program.

(G) Client shall, at Client’s expense, provide to Publicis Target Prescriber lists, including
applicable state license numbers and state license expiration dates, no later than at the time of
signing of a Supplement, except as otherwise provided in a Supplement.

3. Compensation

(A) In consideration of Publicis’ services under this Agreement, Client shall (i) pay Publicis
the compensation set forth in each Supplement, and (ii) pay, or reimburse Publicis for, such
expenses as are set forth on each Supplement, in each case at the time or times required by such
Supplement. Unless otherwise provided in this Agreement or a Supplement, Publicis’ services and
expenses will be invoiced to Client monthly.

(B) Client shall be in default under this Agreement if it shall fail to make any payment to
Publicis that is not subject to good faith dispute by Client within 30 days after Client’s receipt
of the invoice, unless another due date is provided in this Agreement or a Supplement, with the
remainder payable as soon as practicable after such dispute is resolved. In addition to all other
remedies Publicis may have, all undisputed past due payments will be subject to a late charge of 11/2
% per month or such lower rate as is permitted by applicable law.

4. Representations, Warranties and Agreements

(A) Publicis represents and warrants to Client that (i) Publicis has the power and authority
to enter into and perform its obligations under this Agreement; (ii) Publicis is subject to no
restrictions that would impair its ability to perform its obligations under this Agreement; (iii)
Publicis has or will obtain the requisite personnel, facilities, equipment, expertise, and skill to
perform its obligations under this Agreement, and (iv) in performing its obligations hereunder,
Publicis and its employees and agents will not violate or infringe upon the intellectual property
or other rights of third parties, including, but not limited to, property, contractual, employment,
confidentiality, trademark, trade secret, copyright, patent, proprietary information, and
non-disclosure rights. In performing their services, Publicis personnel shall comply under all circumstances with the more stringent of (a) all applicable Detailing policies of Client to
the extent that such policies are made known to Publicis in writing or (b) all applicable internal
policies of Publicis.

 

5

 

(B) During the term of a Program, (i) Publicis’ Representatives and field managers engaged in
the performance of services under this Agreement shall be exclusively assigned to the Products, and
(ii) Publicis will not reassign Representatives to other manufacturer’s products without prior
consultation with Client, unless Client requests their removal from Client’s Program.

(C) Nothing in this Agreement shall be deemed to authorize Publicis to act for, represent, or
bind Client other than as specifically provided by this Agreement.

(D) Client represents and warrants to Publicis that: (i) Client has the power and authority to
enter into and perform its obligations under this Agreement; (ii) Client is subject to no
restrictions that would impair its ability to perform its obligations under this Agreement, and
(iii) in performing its obligations hereunder, Client and its employees and agents will not violate
or infringe upon the intellectual property or other rights of third parties, including, but not
limited to, property, contractual, employment, confidentiality, trademark, trade secret, copyright,
patent, proprietary information, and non-disclosure rights. Client shall comply with all
Applicable Requirements in structuring and implementing Detailing Programs and performing its
obligations under this Agreement.

5. Status of Publicis and the Representatives

(A) Publicis is being retained and shall perform under this Agreement strictly as an
independent contractor. Employees and Representatives of Publicis performing services under this
Agreement shall not be employees of Client for any purpose. Neither party to this Agreement shall
have responsibility for the hiring, termination, compensation, benefits or other conditions of
employment of the other party’s employees.

(B) Publicis employees and Representatives are not eligible to participate in any pension
plans, profit sharing plans, insurance plans or other employee benefit plans offered by Client to
its employees. Client shall not be responsible for, and will not maintain or procure any workers’
compensation or unemployment compensation insurance for or on behalf of Publicis’ employees or
Representatives. Publicis shall be solely responsible for paying all salaries, wages, benefits and
other compensation to its employees in connection with the performance of Publicis’ services under
this Agreement, and for all taxes and other charges levied by any governmental agency on, or
because of, services provided by Publicis under this Agreement. Publicis shall be solely
responsible for any personal injury or property damage caused by Publicis or its employees or
agents in the course of carrying out any duties under this Agreement.

 

6

 

6. Training

(A) Prior to the start of Detailing (or, with respect to a Representative that joins a Program
after Detailing has begun, prior to the date that such Representative begins Detailing), Client,
with the assistance of Publicis, shall conduct the appropriate number and type of Training Programs
required to educate Representatives and field managers about the Product(s) that are the subject of
the Program and compliance with Applicable Requirements, unless otherwise specified in a
Supplement. Client shall provide all training materials for the Training Programs. Training Programs shall include appropriate “at home” study materials for indoctrination prior
to the start of each formal Training Program. Further training will be conducted on at least an
annual basis or, if more frequently, on an as-needed basis at Client’s expense.

(B) Except as otherwise provided in this Agreement or a Supplement, Client shall pay for all
expenses associated with Training Programs.

(C) Publicis, at its expense unless otherwise provided in a Supplement, shall provide training
of each Representative (i) on all applicable Publicis processes, procedures and systems (including
hardware and software systems) to allow such Representative to perform all required activities
hereunder, and (ii) as required per Publicis’ internal policies and procedures (which will include,
at least annually, training on compliance with Applicable Requirements).

7. Samples

(A) At Client’s option and expense, Client shall provide samples of the Products to Publicis
for distribution to the Representatives. Client shall determine the quantity and types of samples
to be provided to Publicis and the method of distribution of the samples to Target Prescribers.
The shipment of samples shall be at Client’s expense, and the storage of samples by Publicis field
personnel shall be at Client’s expense, or as outlined in a Supplement. Publicis personnel shall
not rent storage facilities for samples without the prior consent of Client. Each Representative
shall store the samples in accordance with the PDMA (if applicable) and any requirements specific
to the Product(s) that are made known to Publicis in writing at the time a Supplement with respect
to such Product(s) is signed.

(B) Publicis shall maintain written procedures for compliance with the PDMA and cause all
Representatives to comply with the more stringent of (i) all applicable requirements of the PDMA,
(ii) all applicable requirements of Publicis’ policies relating thereto, or (iii) all applicable
policies of Client relating to sampling to the extent that such policies are made known to Publicis
in writing. Client shall be permitted to review Publicis’ procedures for the distribution of
samples and sample activity forms to ensure compliance with the PDMA. Publicis shall notify
Client promptly upon learning that any sample shipped by Client to Publicis has been lost or has
not been received as scheduled or has otherwise not been handled in accordance with the PDMA.

8. Communications: Monitoring the Program

A) During the term of a Program, Publicis shall communicate to Client’s Medical Information
Department, or such third party that Client specifies to Publicis in writing from time to time, of
comments, requests and inquiries of healthcare providers relating to the Products that are not
covered by Product labeling, of which Publicis becomes aware. All responses to such comments,
requests or inquiries from healthcare providers shall be handled solely by Client. Publicis shall
provide reasonable assistance to Client, at Client’s expense, to the extent deemed necessary by
Client to fully respond to such communications.

B) During the term of a Program, all responses to requests or inquiries of government agencies
and filings with regulatory bodies concerning the Products or any Program shall be the sole
responsibility of Client. Publicis shall reasonably assist Client with respect to such requests,
inquiries or filings to the extent deemed necessary by Client, including by providing all
information and documentation reasonably requested by Client in connection therewith as soon as is
reasonably practicable. The foregoing cooperation by Publicis shall be at Client’s expense, subject to Section 11 and except to the extent that Publicis is obligated to provide
indemnification relating to such situation pursuant to Section 14.

 

7

 

C) During the term of this Agreement, Publicis shall promptly notify Client of any information
Publicis receives regarding any threatened or pending action by any third party, regulatory agency
or other government authority which may affect the Products or any Program, including but not
limited to any litigation or governmental investigation. To the extent permitted by law, Publicis
will provide Client with copies of all documents received by Publicis relating to any of the
foregoing. Publicis shall, at the request of Client, reasonably cooperate with Client in taking
appropriate action. In no event shall Publicis itself respond to any such third party, regulatory
agency or other government authority action without the prior written consent of Client unless
compelled to do so by law. To the extent permitted by law (including but not limited to all
relevant Data Protection Laws), copies of all documents to be provided to such third party,
regulatory agency or government authority will be provided to Client in advance, if practicable, or
otherwise as soon as is reasonably practicable after delivery to such third party, regulatory
agency or government authority. The foregoing cooperation by Publicis shall be at Client’s
expense, subject to Section 11 and except to the extent that Publicis is obligated to provide
indemnification relating to such situation pursuant to Section 14.

D) Publicis will promptly notify Client in the event that it becomes aware of any diversion,
adulteration, misbranding or violations of any Applicable Requirements concerning the Products or
any Program.

E) Client shall have the right upon reasonable notice to Publicis to audit Publicis’ records
for the purpose of verifying that the Calls, Detailing and other services provided hereunder were
and are being conducted in compliance with all Applicable Requirements and that amounts charged to
Client are consistent with this Agreement and the applicable Supplement. Such audit activities
shall be at Client’s expense unless such audit reveals that Client has been overcharged by more
than 5% for any applicable period of one fiscal quarter or more, in which case the costs of such
audit shall be reimbursed by Publicis. Any dispute arising under or relating to any such audit (or
any of the parties’ rights and obligations under this Agreement) that cannot be resolved in the
course of reasonable discussions between the parties will be referred to Client’s Chief Commercial
Officer and Publicis’ General Manager, Publicis Selling Solutions division, for resolution. In the
event these two representatives of the parties are unable to resolve such dispute within thirty
(30) days of such dispute being referred to them, the parties may resort to any remedies available
to them to resolve the dispute.

9. Insurance

A) Publicis shall maintain insurance coverage as follows:

(i) Workers’ compensation insurance with statutory limits of liability and employer’s
liability insurance with a limit of $1,000,000.

(ii) Commercial general liability insurance, including products, completed operations and
contractual liability coverage with a combined single limit of $1,000,000 per occurrence and
$2,000,000 aggregate, with such policies naming Somaxon as an additional insured with respect to
such commercial general liability and products liability coverage.

 

8

 

(iii) Automobile liability insurance with a combined single limit of $1,000,000.

(iv) Umbrella/excess liability insurance in the amount of $5,000,000 per occurrence and
aggregate providing coverage over and above the limits afforded under the commercial general and
automobile liability policies required hereunder.

(v) Professional liability insurance covering the errors and omissions of Publicis’ employees
providing professional or technical services of not less than $2,500,000 per occurrence and
aggregate.

B) Client will maintain full product liability insurance in respect of claims by third parties
for death or personal injury arising out of the use of the Products, such insurance to be in form
and amounts customary and accepted in the U.S. pharmaceutical industry relating to products such as
the Products.

C) Upon request, each party shall provide to the other party evidence of compliance with the
insurance requirements of this Section.

10. Adverse Reaction Reporting; Product Complaints

A) To the extent that Publicis field personnel or a Representative becomes aware of any
information relating to the use of any Product that may constitute an Adverse Event (as such term
is defined in 21 CFR 310.305 and 21 CFR 314.80, or any replacements therefore), Publicis shall
collect and report such information to Client’s Global Safety Surveillance Department or such third
party that Client specifies to Publicis in writing from time to time, within one (1) business day
after becoming aware of such information. Publicis shall provide such information in accordance
with all applicable laws and regulations, including 21 CFR 310.305, 21 CFR 314.80 and 21 CFR
600.80. As between Client and Publicis, Client will be solely responsible for reporting Adverse
Events for Products to the FDA and any other applicable regulatory authority in accordance with all
applicable laws and regulations. Except to the extent required by applicable law or regulations,
Publicis shall not make any statement or give any opinion to any Target Prescriber or any third
party that could reasonably be construed as an admission of fault on Client’s part or a promise
that Client will compensate anyone with respect to any Adverse Event.

B) Publicis shall notify Client’s Medical Information department, or such other third party
that Client specifies to Publicis in writing from time to time, of any Product complaint within two
(2) business days of Publicis becoming aware of such Product complaint. Publicis shall cooperate
in good faith with Client to investigate any Product complaint and any suspected or actual failure
of Product that results in a recall, withdrawal or field correction; provided, however, that all
decisions made with respect to the handling of any such situation shall be in Client’s reasonable
discretion; and, provided further, that such cooperation shall be at Client’s expense, subject to
Section 11 and except to the extent that Publicis is obligated to provide indemnification relating
to such situation pursuant to Section 14. Except to the extent required by applicable law,
Publicis shall not make any statement or give any opinion to any Target Prescriber or any third
party that could reasonably be construed as an admission of fault on Client’s part or a promise
that Client will compensate anyone with respect to any Product complaint.

 

9

 

11. Return/Recalls

A) During the term of this Agreement, Publicis will direct any inquiries or requests relating
to the return of any products to Client, or such other third party that Client specifies to
Publicis in writing from time to time, and in no event shall Publicis provide any information
contrary to Client’s Returned Goods Policy in effect from time to time and made available to
Publicis in writing. Any Products returned to Publicis shall be shipped to Client’s designated
third party logistics facility, with any reasonable or pre-authorized shipping or other documented
direct costs to be paid by Client (subject in each case to Publicis’ compliance with the preceding
sentence).

B) To the extent permitted or required by any Applicable Requirement, as between the parties
any decision to recall, withdraw, conduct a field correction or cease distribution of any Product
as a result of a violation of any Applicable Requirement, or because the Product presents a
possible safety risk or otherwise, shall be made by Client. Client will notify Publicis of all
such actions relating to any Product initiated by Client or required by the FDA or any other
applicable regulatory body so as to enable Publicis to provide Client with such assistance in
connection with such action as may reasonably be requested by Client. In the event that such
action is required by the FDA or any other applicable regulatory body, or if any such action is
deemed advisable by Client in its sole discretion, such action shall be implemented and
administered in a manner which is appropriate and reasonable under the circumstances and in
conformity with any requests or orders of the applicable regulatory body, as well as accepted trade
practices and all Applicable Requirements. The costs and expenses in connection with such action
shall be paid by Client, except in the event of a government-ordered recall or withdrawal of a
Product or a recall or withdrawal that Somaxon determines in good faith (after consultation with
appropriate counsel) is required to be conducted to comply with an Applicable Requirement, and then
only to the extent that Client clearly demonstrates that such ordered or required recall or
withdrawal of a Product was directly caused by Publicis’ negligent or intentional wrongful act or
omission, in which case the direct documented cost and expenses of such Product recall or
withdrawal will be shared in proportion to each party’s contribution to the problem, as evidenced
by clear and convincing evidence. Notwithstanding the foregoing, in no event shall Publicis’
maximum obligation related to the physical costs of recalling or withdrawing such ordered or
required recall or withdrawal of a Product exceed One Million Dollars ($1,000,000). Client shall
handle exclusively the organization and implementation of all such actions relating to Products.
During the Term and for a period of three (3) years after termination or expiration of this Service
Agreement, Publicis will maintain such information as will be reasonably required by Client to
effect a Product recall, withdrawal or field correction.

12. Confidentiality; Intellectual Property Rights.

A) In connection with this Agreement, Publicis and Client shall hold in confidence all
information received from the other party relating to the other party or its business, the Program,
Target Prescribers, or the Products that would reasonably be understood from notice or legends, the
nature of such information or the circumstances of the information’s disclosure to be confidential
to the disclosing party (“Confidential Information”). The receiving party shall maintain the
confidentiality of the Confidential Information of the disclosing party with the same degree of
care and diligence with respect to confidentiality as such party affords to its own similar
confidential information, but under no circumstances less than reasonable care and diligence. The
receiving party shall not use or disclose such Confidential Information of the disclosing party for
any purpose other than those contemplated by this Agreement without the prior written consent of
the disclosing party. Confidential Information may include, but is not limited to, information
concerning the disclosing party’s research or development efforts, trade secrets, computer
software, proprietary methodologies and processes, recipes or formulas, product or marketing plans,

 

10

 

vendor or customer relationships, finances, business operations or
affairs and any information of third parties that the disclosing party maintains in confidence, and
all tangible embodiments of such information. The foregoing confidentiality and non-use
restrictions shall not apply with respect to information that (a) the receiving party can prove was
known to the receiving party or its employees prior to its disclosure by the disclosing party, (b)
was obtained by the receiving party from a third party that the receiving party reasonably believed
had no obligation not to disclose such information, (c) was made available to the public or was
accessible to the public through no fault of the receiving party or its employees, or (d) is
required to be disclosed by law or judicial process. If the receiving party is required by law or
judicial process to disclose any such Confidential Information, the receiving party shall first
notify the disclosing party in writing and shall permit the disclosing party to contest the
disclosure of such Confidential Information at the disclosing party’s expense. The receiving party
shall cooperate fully with the disclosing party in order to limit such disclosure to the extent
legally permissible. The confidentiality and non-use covenants of this Section 12(A) shall remain
in effect during the term of this Agreement and for a period of five (5) years following the
expiration or termination thereof. Publicis shall cause its Representatives (and any other
employees or agents performing services hereunder) to enter into confidentiality agreements with
Publicis having terms and conditions that are at least as stringent as the terms of this Agreement
relating to confidentiality and non-use of Client’s Confidential Information, and Publicis shall be
responsible and liable for any breach of such terms and conditions by its Representatives or other
employees or agents.

B) All information and documentation relating to the Calls, Detailing, the Products or the
Program provided by or on behalf of Client (including but not limited to all Product Promotional
Materials and all Data) (collectively, “Client Information”) shall remain the exclusive property of
Client. No license or other rights to such Client Information is granted or implied hereby,
including any license or right to create derivative works with respect to such Client Information.
Notwithstanding anything to the contrary contained herein, all data, information and inventions
generated or derived by Publicis employees, consultants, professional advisors, agents or
representatives in the performance of services hereunder, and any improvements, derivative works or
other intellectual property derived from such data, information and inventions (collectively with
such data, information and inventions, “Client Property”) shall be and remain the exclusive
property of Client, and Publicis agrees to (and to cause its officers, employees, directors,
consultants, professional advisors, agents and representatives to) (i) promptly notify Client of
any of the foregoing, (ii) assign its rights in all such data, information, inventions,
improvements, derivative works and/or other intellectual property (including any related patents)
to Client and (iii) execute all documents reasonably deemed necessary by Client for purposes of
procuring such rights. Notwithstanding the foregoing, Client acknowledges that prior to, during
and after the date of this Agreement Publicis possesses or will possess certain inventions,
processes, know-how, trade secrets, improvements, and other assets, including but not limited to
procedures and techniques, procedure manuals, personnel data, financial information, computer
technical expertise and software, which have been independently developed by Publicis outside the
scope of this Agreement or which relate to its business or operations generally and not
specifically to Client’s Products (collectively “Publicis Property”). Client and Publicis agree
that, notwithstanding anything to the contrary contained herein, (i) any Publicis Property which is
used by Publicis prior to or during the term of this Agreement is the sole and exclusive property
of Publicis, and (ii) any improvements to Publicis Property developed during the term of this
Agreement shall be the sole and exclusive property of Publicis. For the avoidance of doubt,
Publicis Property does not include Client Property.

 

11

 

13. Term and Termination 

A) This Agreement and the Supplements shall continue in effect until terminated by either
party in accordance with this Section.

B) This Agreement and the Supplements shall terminate automatically upon the filing or
institution of bankruptcy, reorganization, liquidation or receivership proceedings by or against
Publicis or Client.

(i) Client may terminate this Agreement and any or all Supplements for any reason on at least
90 days’ written notice to Publicis; provided however, that Client shall be obligated to pay
Publicis for (i) all program costs through the end of the 90 day termination notice period and (ii)
if such termination is effective prior to the first anniversary of the hiring date of the
Representatives in an applicable Supplement, a termination fee equal
to *** of the
remaining total Program cost as defined in the such Supplement.

(ii) If one party commits a material breach of its obligations under this Agreement, the other
party may terminate this Agreement and any or all Supplements upon written notice to the other
party if the breaching party fails to cure such breach within 30 days of written notice of the
breach.

(iii) If a change in applicable law renders performance of a material obligation of this
Agreement unlawful, the parties shall use their best efforts to negotiate an alternative
arrangement. If such arrangement is not agreed to within 30 days, either party may immediately
terminate this Agreement on written notice to the other party.

(iv) If this Agreement is terminated pursuant to this Article 13, at Client’s request, the
parties shall discuss in good faith an appropriate phaseout of Publicis’s Detailing activities.

(v) The termination of this Agreement by Client under subclause (i) above or by Publicis under
subclause (ii) above shall not affect Client’s obligation to pay any amount owed to Publicis under
this Agreement, including costs due from Publicis to third parties relating to Programs that are
not cancellable through reasonable diligence and, if the termination is made by Publicis under
subclause (ii) above, severance costs relating to the termination of Representatives (which
severance costs shall not exceed 2 weeks of base salary if the termination is effective prior to
the first anniversary of the effective date of the applicable Supplement, or 3 weeks of base salary
if the termination is effective after such first anniversary). The termination of this Agreement
shall not affect any rights or obligations of either party under this Agreement which are intended
by the parties to survive such termination, including, but not limited to, those rights and
obligations in Sections 3, 5, 8, 9, 12, 14, 16 and 17.

(vi) Within ten business days following the termination of this Agreement or any Program,
Publicis shall return to Client, at Client’s expense if such termination is by Client under
subclause (i) above or by Publicis under subclause (ii) above (but otherwise at Publicis’ expense),
all applicable Confidential Information, Product Promotional Materials, Product samples, marketing
plans, forms, territory lists, reports and any and all other tangible items provided to Publicis by
Client or generated by Publicis pursuant to this Agreement, and Publicis shall destroy any computer files or images containing any of the foregoing, other than
documents that Publicis is required to keep by law or for tax reasons.

 

	 	 	 
	***	 	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

 

14. Indemnification

A) Publicis shall indemnify and hold harmless Client and its officers, directors and employees
from and against all claims, liabilities, damages and expenses (including but not limited to
reasonable attorneys’ fees and disbursements and court costs and any reasonable attorneys’ fees and
disbursements and court costs incurred in establishing liability under and enforcing this
indemnity) (collectively, “Losses”) arising out of or resulting from (a) the breach of this
Agreement by Publicis or any of its officers, directors, employees, agents or contractors, (b) the
negligence, recklessness, willful misconduct or violation of law by Publicis or any of its
officers, directors, employees, agents or contractors, or (c) any acts or omissions outside the
scope of the services to be provided by Publicis hereunder, except in each case to the extent such
Losses are required to be indemnified by Client pursuant to Section 14(B) below.

B) Client shall be responsible for the accuracy and completeness of all information and
materials concerning the Products and its competitors’ products that are furnished to Publicis or
its Representatives or to Target Prescribers, and shall indemnify Publicis against Losses related
to such information and materials except to the extent Publicis or its employees or agents do not
use such information and materials in strict compliance with the instructions provided by Somaxon
in accordance therewith. Client represents that any information and materials provided by it to
Publicis as part of sales training or for use in Detailing with Target Prescribers have been (or
will be) subjected to Client’s regular scientific, legal and regulatory review process and comply
(or will comply) with all Applicable Requirements. prior to public dissemination and shall
indemnify Publicis against Losses related to such information and materials except to the extent
Publicis or its employees or agents do not use such information and materials in strict compliance
with the instructions provided by Somaxon in accordance therewith. Further, Client shall indemnify
and hold harmless Publicis and its officers, directors and employees from and against all Losses
arising out of or resulting from (i) the breach of this Agreement by Client or any of its officers,
directors, employees, agents or contractors, (ii) the negligence, recklessness, willful misconduct
or violation of law by Client or any of its officers, directors, employees, agents or contractors,
or (ii) any personal injury, death, malpractice, product liability or other claims arising from the
promotion, sales, use or misuse of the Products or otherwise relating in any manner to the
Products, except in each case to the extent such Losses are required to be indemnified by Publicis
pursuant to Section 14(A) above.

C) If there arises any claim for which a party to this Agreement may seek indemnification
under this Section, such party shall promptly give notice to the other party of any such claim and
shall not take any material step in the conduct of any legal proceeding before consulting the
indemnifying party; provided, however, that failure to give notice shall not limit or otherwise
reduce the indemnity provided for in this Agreement except to the extent that failure to give
notice materially prejudices the rights of the indemnifying party. The indemnifying party will
then have the right, at its expense and with counsel of its choice, to defend, contest, or
otherwise protect against any such action. The indemnified party will also have the right, but not
the obligation, to participate, at its own expense in the defense thereof with counsel of its
choice. The indemnified party shall cooperate to the extent reasonably necessary to assist the
indemnifying party in defending, contesting or otherwise protesting against such action, provided
that the reasonable cost in doing so will be paid by the indemnifying party. If the indemnifying
party fails within thirty (30) days after receipt of notice to notify the indemnified party of its
intent to defend, or to defend, contest or otherwise protect against such an action or fails to diligently continue to provide the defense after undertaking to do so, the indemnified party
will have the right upon ten (10) days prior written notice to the indemnifying party to defend,
settle and satisfy any such action and recover the costs of the same from the indemnifying party.
The indemnifying party will not settle any such case without with prior written consent of the
indemnified party and such consent shall not be unreasonably withheld, conditioned or delayed.

 

13

 

D) The indemnity of obligations set forth in this Section 14 shall survive the expiration or
termination of this Agreement or any Program.

E) EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT, Publicis MAKES NO REPRESENTATIONS OR
WARRANTIES TO CLIENT, EITHER EXPRESS OR IMPLIED, INCLUDING MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE. EXCEPT WITH RESPECT TO (I) CLAIMS FOR INDEMNIFICATION UNDER THIS SECTION 14
RELATING TO ACTIONS BROUGHT BY THIRD PARTIES (INCLUDING INVESTIGATIONS OR CLAIMS BROUGHT BY
GOVERNMENTAL OR REGULATORY AUTHORITIES) OR (II) BREACHES OF SECTION 12(A), IN NO EVENT SHALL EITHER
PARTY BE LIABLE TO THE OTHER PARTY OR ANY OTHER PERSON OR ENTITY FOR DIRECT, INDIRECT, PUNITIVE,
INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION,
ANY LOST REVENUES OR PROFITS, EVEN IF SUCH OTHER PARTY HAS BEEN SPECIFICALLY ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.

15. Force Majeure. Neither party shall be liable or deemed in default under this Agreement
for any delay or failure to perform (other than the failure to make any required payment when due)
resulting from any cause beyond that party’s reasonable control; provided, however, that if such
cause continues for more than ninety (90) consecutive days, the other party hereto may elect to
terminate this Agreement with no additional liability or cost.

16. Notices. Any notice given by a party to the other party under this Agreement shall be
in writing and shall be given (a) by personal delivery, with receipt acknowledged, or (b) by
prepaid certified or registered mail, return receipt requested, or (c) by prepaid recognized next
business day delivery service, to the following address:

If
to Publicis:

Publicis Touchpoint Solutions, Inc.

2000 Lenox Drive

Suite 100

Lawrenceville, NJ 08648

Attn: Al Pavucek, CFO

If
to Client:

Somaxon Pharmaceuticals, Inc.

3570 Carmel Mountain Road

Suite 100

San Diego, CA 92130

Attn: General Counsel

Either party may, by notice given to the other party in accordance with this Section, change the
address to which notices shall be given under this Agreement. Notices shall be effective upon
receipt.

 

14

 

17. Miscellaneous

A) This Agreement (i) constitutes the entire agreement between the parties relating to its
subject matter and merges and supersedes and terminates all prior written and oral agreements, and
all contemporaneous oral agreements, between the parties relating to its subject matter (except
applicable Supplements), and (ii) may not be amended except by a writing signed by the party
against which such amendment is sought to be enforced. Except where the context otherwise
requires, references to this Agreement shall include all Supplements.

B) This Agreement may not be assigned or transferred by any party without the prior written
consent of the other party; provided, however, that Publicis reserves the right to utilize the
services of its affiliated companies in its performance of services under this Agreement, subject
to the prior written consent of Client and to such affiliate agreeing in writing to be subject to
all of the rights and obligations of Publicis hereunder; and provided, further, that either party
may assign its rights or obligations under this Agreement to any entity or person that acquires all
or substantially all of its assets; or in connection with an internal reorganization or merger,
provided, however, that Publicis’ right to so assign this Agreement is permitted only if the same
Publicis personnel providing services to Client hereunder prior to such reorganization will
continue to provide such services to Client after such internal reorganization, merger or sale; or
to a Purchaser’s interest relating to this Agreement or to whom it licenses substantial rights to
the Product, in each case in any one or more transactions in any form.

C) This Agreement (i) shall be governed by, and construed in accordance with, the laws of the
State of New York, without regard to conflict of laws principles applied in the State of New York,
and (ii) shall be binding upon, and inure to the benefit of, the parties and their respective
successors and permitted assigns.

D) In the event that any provision of this Agreement is finally held by a court of competent
jurisdiction to be invalid or unenforceable, the remaining provisions of this Agreement shall
nevertheless continue to be valid and enforceable as though the invalid or unenforceable provision
had not been included.

E) The headings of the Sections of this Agreement are for convenience of reference only, are
not part of this Agreement and shall not be used in its interpretation.

F) Any public disclosure with respect to this Agreement shall be at such time and in such
manner as Client and Publicis shall mutually agree, provided that neither party shall be prevented
from making such public disclosures as such party’s legal obligations may require.

G) Except as otherwise provided in a Supplement, during the term of this Agreement and for a
period of one year thereafter, neither party to this Agreement, nor any contract sales organization
or other third party acting on behalf of a party, shall directly or indirectly (i) solicit, induce
or encourage any Representative or employee of the other party to terminate his or her employment
with such party, or (ii) hire any such Representative or employee.

 

15

 

H) No failure or delay on the part of either party in exercising any right, power or remedy
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such
right, power or remedy preclude any other or further exercise thereof or exercise of any, other
right, power or remedy under this Agreement. No waiver of any provision of this Agreement shall be
effective unless such waiver shall be in writing and signed by the party giving such waiver. The
remedies provided in this Agreement are cumulative and not exclusive of any other remedies provided
by law.

	 	 	 	 	 	 	 	 	 
	PUBLICIS TOUCHPOINT
SOLUTIONS, INC.	 	SOMAXON PHARMACEUTICALS, INC.
	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Karen L. Kelly
 

Name: Karen L. Kelly

Title: SVP Finance, Contracting & Pricing

Date: 7/14/10
	 	By:
	 	/s/ Richard W. Pascoe
 

Name: Richard W. Pascoe

Title: President and Chief Executive Officer

Date: 7/14/2010
	 	 

 

16

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