Document:

Supply and Sublicense Agreement,dated as of January 22, 2008

 Exhibit 10.13 
 EXECUTION COPY 
 SUPPLY AND SUBLICENSE AGREEMENT 
 This Supply and Sublicense Agreement (hereinafter referred to as this
“Agreement”), effective as of the 22nd day of January, 2008 (the “Effective Date”), is made by and
between Transcept Pharmaceuticals, Inc., a Delaware corporation with its principal offices at 1003 W. Cutting Blvd., Suite 110, Pt. Richmond, California 94804 (hereinafter referred to as “Purchaser”), and Mikart, Inc., a
Georgia corporation with its principal offices at 1750 Chattahoochee Ave, Atlanta, GA 30318 (hereinafter referred to as “Supplier”). Purchaser and Supplier are sometimes referred to herein individually as a
“Party” or collectively as the “Parties”. 
 WHEREAS, Purchaser entered into that certain supply
agreement dated July 23, 2007 with SPI Pharma, Inc., a Delaware corporation with its principal offices at 321 Cherry Lane, New Castle, Delaware 19720 (hereinafter referred to as “SPI”) under which SPI agreed to supply
quantities of the Product (as defined below) purchased by Purchaser on the terms and conditions described therein (such agreement, the “SPI Supply Agreement”); 
 WHEREAS, the SPI Supply Agreement provided for the transfer of SPI proprietary technology covering the manufacture of Product to Purchaser and a license
to Purchaser under such SPI proprietary technology to allow Purchaser, with the approval of SPI, to transfer such technology to Supplier and to grant a sublicense under such technology to Supplier solely for the purpose of enabling Supplier to act
as a secondary source manufacturer of the Product for Purchaser for use in the Finished Product (as defined below); 
 WHEREAS, Supplier,
Purchaser and SPI entered into that certain confidentiality agreement dated October 12, 2007 (the “Confidentiality Agreement”) under which SPI provided its approval of Purchaser’s transfer and sublicense of SPI’s
proprietary Product technology to Supplier under the terms and conditions set forth therein (with such terms including restrictions on Supplier’s use and disclosure of SPI’s proprietary Product technology) for the purpose of enabling
Supplier to manufacture Product for Purchaser for use in the Finished Product as Purchasers secondary source manufacturer; and 
 WHEREAS,
Supplier and Purchaser desire to enter into an agreement setting forth the terms and conditions of Supplier’s manufacture and supply of the Product for Purchaser as Purchaser’s secondary source manufacturer and granting Supplier a
sublicense of the SPI proprietary technology rights necessary to enable Supplier to manufacture and supply such Product for Purchaser. 
 NOW, THEREFORE, in consideration of the covenants, conditions and obligations expressed herein, and intending to be legally bound thereby, the Parties hereto agree as follows: 
  

	1.	DEFINITIONS 

 Terms defined in the preamble of this
Agreement have the meanings set forth therein, and the following terms have the meanings set forth below. 
  

  
 Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 “Affiliate” means, with respect to an entity, any company or other entity which directly
or indirectly controls or is controlled by or is under common control with that entity. An entity shall be regarded as in control of another entity for purposes of this definition if it owns or controls fifty percent (50%) or more of the shares
of the subject entity entitled to vote in the election of directors (or, in the case of an entity that is not a corporation, for the election of the corresponding managing authority). 
 “API” means the active pharmaceutical ingredient zolpidem and/or any isomers, crystals, hydrates, anhydrates, solvates, salt forms, free
acids or bases, complexes, or polymorphs thereof. 
 “Applicable Laws” means all laws, ordinances, rules and regulations of
any governmental or regulatory authority that apply to the Product, Supplier’s manufacture and supply of the Product, or this Agreement, including without limitation (i) all applicable federal, state and local laws and regulations;
(ii) the U.S. Federal Food, Drug and Cosmetic Act (“FDCA”), (iii) regulations and guidelines of the FDA and other Regulatory Agencies, and ICH guidelines and (iv) GMP, and if applicable, current Good Laboratory
Practices and current Good Clinical Practices promulgated by the FDA and other Regulatory Agencies. 
 “Buffered Soda
Technology” means the [***]. 
 “Facility” means Supplier’s GMP manufacturing facility located in 2090
Marietta Blvd., Atlanta, GA 303018. 
 “FDA” means the United States Food and Drug Administration, or any successor agency
thereto. 
 “Finished Product” means a product comprising a Product together with the API, and which may include [***].

 “GMP” means current good manufacturing practice and standards as provided for (and as amended from time to time) in the
Current Good Manufacturing Practice Regulations of the U.S. Code of Federal Regulations Title 21 (Parts 11, 210, 211, 820), the FDA Guidance for Industry Q7A ICH Good Manufacturing Practice for Active Pharmaceutical Ingredients and the IPEC (The
International Pharmaceutical Excipients Council) Good Manufacturing Practices Guide for Bulk Pharmaceutical Excipients. 
 “Licensed
Agreement IP” means the Agreement IP (as defined in Section 4.1 of the SPI Supply Agreement) that is licensed by SPI to Purchaser under Section 8.1 of the SPI Supply Agreement and sublicensable by Purchaser under the terms of the
SPI Supply Agreement. 
 “Manufacture” and “Manufacturing” means, along with other forms of the word, the
development, manufacturing, quality testing, handling, packaging, storage and/or disposal of: (i) the Product and (ii) the raw materials and components used in connection with the preparation of the Product. 
 “Product” means Buffered Soda as described in the Specifications, to be manufactured and supplied by Supplier as Purchaser’s
secondary source manufacturer. 
  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 “Patents” shall mean any of the following, whether existing now or in the future
anywhere in the world: (i) any issued patent, including without limitation inventor’s certificates, utility model, substitutions, supplemental protection certificates, extensions, confirmations, reissues, re-examination, renewal or any
like governmental grant for protection of inventions; and (ii) any pending application for any of the foregoing, including without limitation any continuation, divisional, substitution, additions, continuations-in-part, provisional and
converted provisional applications. 
 “Regulatory Agency” means any governmental regulatory authority involved in
regulating any aspect of the conduct, development, manufacture, market approval, sale, distribution, packaging or use of the Product and/or Finished Product, including the FDA and the European Medicines Evaluation Agency
(“EMEA”). 
 “Regulatory Approval” means a required consent, license, approval or other
authorization of a Regulatory Agency having authority over the manufacture, use, storage, import, export, clinical testing, transport, marketing, sale or distribution of the Product and/or Finished Product, as applicable, in all or any portion of
the Territory. 
 “Specifications” means the specifications for the Product that are attached hereto as Exhibit B, as such
may be amended by Purchaser from time to time by the provision of at least thirty (30) day’s prior written notice to Supplier. 
 “SPI Product Manufacturing IP” means, in each case to the extent licensed by SPI to Purchaser under Section 8.1 of the SPI Supply Agreement and sublicensable by Purchaser under the terms of the SPI Supply Agreement:
(i) the SPI Product Manufacturing Technology; and (ii) any and all Patents controlled by SPI or any of its Affiliates that claim the Manufacturing, use (including administration), sale or importation of the Buffered Soda Technology or that
are otherwise necessary or useful for the Manufacture of Product as permitted by the SPI Supply Agreement. 
 “SPI Product
Manufacturing Technology” means, with respect to the Buffered Soda Technology supplied by SPI to Purchaser under the SPI Supply Agreement, to the extent in writing, created in the ordinary course of SPI’s business and controlled by
SPI: (i) descriptions of compositions (including raw materials used), raw material SPIs, incoming raw material specifications and methods, production processes and equipment used; (ii) quality control specifications and methods;
(iii) Master Batch Records (MBRs), storage requirements, process validation protocols and results; and (iv) all information contained in SPI’s Drug Master File (DMF) for the Product and all other SPI know-how relating to the
Manufacture of the Buffered Soda Technology. 
 “Term” has the meaning given in Section 8.1 of this Agreement.  

 “Territory” means [***]. 
  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

	2.	PURCHASE AND SALE OF PRODUCT 

 2.1 Supply of
Product. During the Term of this Agreement, Supplier agrees to supply to Purchaser the Product ordered by Purchaser under the terms of this Agreement in the quantities ordered hereunder. Purchaser may purchase Product hereunder through its
designees (e.g. Purchaser’s contract manufacturers and/or pharmaceutical development partners), and Supplier agrees to supply Product to such designees pursuant to the terms of this Agreement. 
 2.2 Quantity. The quantity of Product Supplier is obligated to supply hereunder and Purchaser is obligated to purchase hereunder for each calendar
quarter shall be as set forth in Article 5 hereof. 
 2.3 Orders. Orders shall be documented by written or electronic purchase order
form submitted to Supplier at least [***] prior to requested delivery, and will provide for shipment in accordance with reasonable delivery schedules and lead times as may be agreed upon from time to time by Supplier and Purchaser so long as the
maximum lead time shall not exceed [***] unless otherwise agreed to by the Parties. Notwithstanding anything to the contrary set forth in this Agreement, Purchaser acknowledges and agrees that each order hereunder shall be for [***] of the Product,
with a batch being approximately equal to [***] of the Product. 
 2.4 Packaging. Product shall be shipped packaged in containers in
accordance with the applicable Specifications or as otherwise agreed by the Parties in writing. Each such container will be individually labeled with a description of its contents, including the manufacturer lot number and quantity of Product, date
of manufacture and expiration date. 
 2.5 Product Plan. Supplier and Purchaser acknowledge and agree that the Product Technical
Transfer Proposal (the “Product Plan”) attached hereto as Exhibit C and incorporated herein by this reference forms an integral part of and a supplement to this Agreement. The steps described in the Product Plan shall be
performed by Supplier in accordance with the terms and conditions of the Product Plan. Purchaser agrees to pay to Supplier the fees described in the Product Plan with respect to such steps in accordance with the payment schedule set forth in the
Product Plan, and the Parties acknowledge that Purchaser has already made the first payment of [***] due under the Product Plan. In the event of a conflict between the terms of the body of this Agreement and the Product Plan, the terms of the body
of this Agreement shall control. 
  

	3.	PRICE OF PRODUCT; DELIVERY 

 3.1 Purchase
Price. The purchase price for Product shall be as set forth in Exhibit A. 
 3.2 Purchase Price Adjustments. Supplier shall have
the right to increase the purchase price for the Product [***]. In the event that Supplier increases the 

  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 
price charged for the Product pursuant to the preceding sentence in a given Contract Year and after the effective date of such increase Supplier’s cost
of raw materials or components for manufacturing or packaging the Product (such costs, “Materials Costs”) further increases by more than [***] during such Contract Year, Supplier shall have the right, by providing at least [***]
prior written notice to Purchaser, to further increase the price in such year by a percentage amount equal to the amount of such Materials Cost increase that exceeds the [***] increase in Materials Costs; provided, that (i) Supplier shall
provide Purchaser with documented evidence of any such further cost increases and shall use its reasonable efforts to prevent any such further cost increases from occurring; and (ii) the price of Product shall not be increased to reflect
increases in Supplier’s Total Product Costs to the extent such increases have already been incorporated into the Product price pursuant to this sentence. As used in this Section 3.2, “Contract Year” shall mean a [***]
period during the term of this Agreement, with the first Contract Year commencing on the Effective Date and subsequent Contract Years commencing on each anniversary of the Effective Date. 
 3.3 Delivery. Supplier shall deliver the quantities of Product ordered by Purchaser on the dates specified in Purchaser’s purchase orders
submitted in accordance with Section 2.3 above. All Product shipments shall be delivered FOB (UCC) Supplier’s shipping point at the Facility. The carrier shall be selected by agreement between Purchaser and Supplier, except that if no such
agreement is reached, Purchaser shall select the carrier. All Product delivered hereunder shall be suitably packed for shipment by Supplier in accordance with good commercial practice with respect to protection of such Product during transportation
and marked for shipment to Purchaser’s specified receiving point. 
  

	4.	LICENSE 

 4.1 Purchaser hereby grants to Supplier a
non-exclusive, worldwide sublicense under the SPI Product Manufacturing IP and Licensed Agreement IP, solely to Manufacture Product for Purchaser and its designees (i.e. Purchaser’s contract manufacturers and/or pharmaceutical development
partners) for use in Finished Products (the “Product Manufacturing Sublicense”). 
 4.2 Supplier: (i) agrees that its
practice of the Product Manufacturing Sublicense shall be subject to the terms and restrictions of this Agreement and the terms and restrictions of the Confidentiality Agreement, including without limitation Supplier’s adherence to the terms
and conditions of Section 2.1 of the Confidentiality Agreement; and (ii) agrees to abide by all terms of the Confidentiality Agreement in its performance of its obligations under this Agreement. 
  

	5.	FORECASTS AND FIRM ORDERS 

 5.1 Forecasts. Upon the execution of this Agreement by the Parties, and by [***] of each year of the Term (excluding [***] of the Term, unless this Agreement is extended by the mutual written consent of the
Parties), the Purchaser shall provide Supplier with an estimated non-binding forecast of its requirements for the Product for the following calendar year. In addition, the Purchaser shall by the end of each calendar quarter provide a rolling
forecast on a quarterly basis of its requirements for the Product for the following four calendar quarters (“Q1”, “Q2”, “Q3” and “Q4”). 
  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 5.2 Firm Orders. 
 5.2.1 The forecast given by Purchaser for Ql shall constitute a firm order (“Firm Order”) for the Product for Ql and
Purchaser shall be obligated to purchase, and Supplier shall be obligated to supply, such quantities of Product pursuant to one or more purchase orders submitted to Supplier during Ql, in each case within the applicable ranges specified in
Section 5.2.2 below. 
 5.2.2 It is understood and agreed that the forecasted quantities of Product for Q2, Q3 and Q4
shall not be binding upon Purchaser in any respect, and Purchaser shall not be liable with respect to its good faith efforts to provide such non-binding forecasts. Notwithstanding the foregoing, the Firm Order for the then current Ql may not be for
an amount less than [***] of the immediately preceding forecast for each such calendar quarter and Supplier shall not be obligated to supply more than [***] of such forecasted amount, in each case unless otherwise agreed by the Parties in writing;
provided, however, that Supplier shall use diligent efforts to fill the amounts of any Firm Order exceeding the [***] cap described above. 
 5.3 Minimum Purchase Obligation. Notwithstanding anything to the contrary set forth in this Agreement, during the twenty-four (24) month period following the date of first commercial sale by Purchaser or its designee of Finished
Product during the Term, Purchaser shall be obligated to order and purchase from Supplier at least two (2) batches (a total of approximately Four Hundred Twenty kilograms (420kg) of the Product, with at least one (1) batch of Product to be
purchased during the first twelve (12) month period following such date of first commercial sale (the “Minimum Purchase Obligation”). In the event Purchaser fails to meet its Minimum Purchase Obligation set forth in this
Section 5.3 in any relevant period for any reason other than a breach of this Agreement by Supplier or a force majeure event, Purchaser shall pay to Supplier an amount equal to the quantity of Product by which Purchaser failed to meet its
Minimum Purchase Obligation for such period multiplied by the then current price for such Product. It is understood that, except for Purchaser’s obligation to purchase Firm Order amounts as described in Section 5.2 and its Minimum Purchase
Obligation under this Section 5.3, Purchaser is under no obligation to purchase amounts of Product from Supplier. 
  

	6.	QUALITY 

 6.1 Specifications. The Supplier
agrees that the Product supplied hereunder shall conform to the Specifications applicable to the Product and shall be manufactured at the Facility in accordance with Applicable Laws, including GMP manufacturing and record keeping procedures.

 6.2 Quality Control. Prior to each shipment of Product, Supplier shall perform quality control testing procedures and inspections
to verify that the Product to be shipped conforms fully to the applicable Specifications. Each shipment of Product shall be accompanied by a certificate of analysis in a form acceptable to Purchaser and describing all current requirements of the
Specifications, results of tests performed certifying that the Product supplied has been manufactured, controlled and released at the Facility in accordance with the Specifications and Applicable Laws. 
  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 6.3 Changes to the Specifications. As between the Parties, Purchaser shall have the sole right to
modify the Specifications with respect to the Product. All modifications shall be provided to Supplier in writing at least [***] prior to the effective date of such changes, shall be signed by an authorized representative of Purchaser and Supplier,
and shall be effective for purchase orders for Product placed after the effective date of the changes. If the modifications result in a change in Supplier’s manufacturing costs, the Parties shall negotiate in good faith to agree upon an
appropriate adjustment to the price of the Product under this Agreement commensurate with the change in Supplier’s manufacturing costs. If the modifications result in a delay in delivery, the Parties will negotiate a reasonable extension of the
affected lead times. 
 6.4 Batch Records; Samples. Supplier shall maintain batch records sufficient to trace the history of each
batch, and representative samples from each batch of Product manufactured hereunder, for record keeping, stability testing, and other regulatory purposes, including as may be required by the Specifications or Applicable Laws, for a minimum of [***]
following Supplier’s manufacture of such batch, after which Supplier may make arrangements for confidential disposition, unless Purchaser provides prior written request for longer retention of such records or samples. Alternatively, Purchaser
shall have the option of having such records and samples delivered to Purchaser or its designee. Upon the request of Purchaser and so long as Supplier is required to maintain such records, Supplier shall provide Purchaser reasonable access to and
copies of such records. 
 6.5 Rejected Product. Acceptance by Purchaser of Product delivered by Supplier shall be subject to
inspection and applicable testing by Purchaser or its designee. If on such inspection or testing Purchaser or its designee discovers that any Product fails to conform with the Specifications therefor or otherwise fails to conform to the warranties
given by Supplier in Article 11 below, Purchaser or such designee shall notify Supplier in writing within [***] days of receipt of the Product, and shall provide Supplier with the specific reasons as to why such Product is defective as well as all
reasonably necessary supporting documentation. Purchaser may, at the time of such notice, if timely, reject such Product. Notwithstanding the preceding portions of this section, if within [***] of being notified by Purchaser of its rejection of any
Product, Supplier reasonably disagrees that such Product was properly rejected, Supplier shall notify Purchaser in writing of such fact and the reasons therefor, but if Supplier fails to so notify Purchaser within such [***], the Product in question
will conclusively be deemed to have been properly rejected. After receipt of such notice from Supplier, Purchaser and Supplier will attempt amicably to settle the dispute concerning any allegedly defective Product but if they are unable to do so
within [***] after the date of any Supplier notice, the parties will jointly select a third party expert to make a final determination as to whether or not the Product in question was defective and therefore properly rejected, such determination to
be binding on both Parties. The fees and expenses of such third party expert will be paid by the Party whose determination was in error as to whether or not Product was defective and therefore properly rejected. Upon request from Supplier, Purchaser
shall return or dispose of the rejected Product in accordance with Supplier’s reasonable instructions and at Supplier’s expense, provided that such instructions comply with all Applicable Laws. Supplier shall use its commercially
reasonable efforts to replace rejected Product within the shortest possible time after Suppliers receipt of rejection notice thereof from Purchaser or notice from the third party expert that such Product was defective, as applicable In the event all
or part of a shipment of Product is rejected prior to Purchaser’s payment therefor, Purchaser may withhold such payment until receipt of replacement Product that conform with the Specifications therefor and to the warranties given by Supplier
in Article 11 below. 
  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 6.6 Latent Defects. In the event either Party becomes aware of any defect in any batch of Product
that is not discoverable upon a reasonable inspection or incoming quality assurance testing as set forth in the Specifications, it shall immediately notify the other Party in writing (identifying the batches involved), and the rejection provisions
of Section 6.5 above shall apply. In the case of latent defects, notification to Supplier by Purchaser must occur within thirty (30) days after Purchaser becomes aware or reasonably should have become aware that any Product is defective.

 6.7 Audits. Purchaser shall have the right to conduct, upon reasonable notice and at its own expense, a periodic (limited to one
audit per year) site and quality audit of the portion of the Facility used to manufacture and/or supply the Product hereunder during normal business hours, including Supplier’s documentation relevant to assure ongoing GMP compliance and
compliance with Applicable Laws and this Agreement. In addition, Purchaser shall be entitled to review Supplier’s standard operating procedures applicable to its manufacture and supply of the Product hereunder, including with respect to quality
control. 
 6.8 Recalls. Any recalls of Purchaser’s finished product incorporating Product shall be the sole responsibility of
Purchaser, provided, however, that if Supplier reasonably believes a recall may be necessary with respect to any Product provided under this Agreement, Supplier shall immediately notify Purchaser in writing. Notwithstanding the foregoing, if a
recall of Purchaser’s product incorporating Product arises out of or results from: (i) the negligence or willful misconduct of Supplier or (ii) a material breach by Supplier of this Agreement (including a breach of any of the
representations or warranties in Article 11), Supplier shall bear all the costs and expenses of such recall. 
  

	7.	INVOICING AND PAYMENT 

 7.1 Invoices;
Payment. Supplier shall submit an invoice to Purchaser upon shipment of Product ordered by Purchaser under this Agreement. All invoices will be sent to the address specified in the applicable purchase order, and each invoice will state the
aggregate and unit price for Product in a given shipment, plus any insurance, taxes, or other costs incident to the purchase or shipment initially paid by Supplier but to be borne by Purchaser under this Agreement pursuant to Section 7.2 below.
All invoices for Product purchased by Purchaser shall be paid thirty (30) days upon receipt by Purchaser of the applicable invoice. 
 7.2 Insurance, Taxes and Other Costs. If any tax is due with respect to the sale of Product under this Agreement, Purchaser will have the sole responsibility to pay that tax and Supplier will have the sole responsibility to collect
that tax from Purchaser and remit that tax to the applicable authorities. In addition, any charges for insurance or other costs imposed by third parties incident to the purchase or shipment of Product hereunder shall be the sole responsibility of,
and shall be paid by, Purchaser. For clarity, and without limiting Purchaser’s obligation in the foregoing sentence for costs or charges arising from the purchase or shipment of Product hereunder, it is understood that any costs or charges
arising from the manufacture or storage of Product by Supplier shall be borne by Supplier. 
  

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 7.3 Currency. All amounts payable by Purchaser hereunder will be made in United States Dollars.

  

	8.	TERM AND TERMINATION; SUPPLY FAILURE 

 8.1 Term of Agreement. Unless earlier terminated as described below, this Agreement shall be
effective as of the Effective Date and shall remain in effect until the earlier of (i) the tenth (10th) anniversary of the first commercial
sale of a Finished Product by Purchaser or its designee and (ii) the thirteenth (13th) anniversary of the Effective Date (the
“Term”). 
 8.2 Termination. 
 8.2.1 This Agreement may be terminated by either Party upon [***] prior written notice to the other Party, in the event of a breach of
this Agreement by such other Party, which breach is not cured within such [***] period, provided, however, if during such [***] period, the allegedly breaching Party disputes that it has materially breached this Agreement, then the other Party shall
not have the right to terminate this Agreement until it has been finally determined in accordance with Section 13.8 below that the allegedly breaching Party has materially breached this Agreement, and such Party fails to comply herewith within
[***] thereafter. Purchaser agrees that, in the event that it delegates one or more of its responsibilities hereunder to a third party pursuant to Section 2.1, 4.1, 6.4 or 6.5, unless otherwise agreed to in writing by the Parties, Purchaser
shall remain fully responsible for the performance of such responsibilities. 
 8.2.2 This Agreement may be terminated by
Purchaser upon [***] prior written notice to Supplier in the event that Supplier does not successfully complete all work under the Product Plan by the one (1) year anniversary of the Effective Date for any reason other than a breach of this
Agreement or the Product Plan by Purchaser. 
 8.2.3 This Agreement may
be terminated by Purchaser without cause at any time following the second (2nd) anniversary of the date of first commercial sale of Finished Product
by Purchaser or its designee, provided that Purchaser shall provide to Supplier at least ninety (90) days prior written notice of such termination and shall pay to Supplier a termination fee equal to [***] (the “Early Termination
Fee”). For clarity, in the event that Purchaser terminates this Agreement pursuant to this Section 8.2.3, in addition to paying the Early Termination Fee, Purchaser shall still be obligated to purchase the Minimum Purchase Obligation
(or remaining portion thereof, as calculated pursuant to Section 5.3) that is due at the time of such termination. 
 8.2.4 Pursuant to Section 5.3.2 of the Confidentiality Agreement, the Parties acknowledge that: (i) termination of this Agreement shall trigger automatic termination of the Confidentiality Agreement as of the date of termination
of this Agreement; and (ii) termination of the Confidentiality Agreement shall trigger automatic termination of this Agreement as of the date of termination of the Confidentiality Agreement. 
  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 8.3 Effect of Termination. 
 8.3.1 Termination or expiration of this Agreement shall not relieve a Party from any liability that, at the time of such termination or
expiration, has already accrued to the other Party. Upon expiration or termination of this Agreement: Supplier shall, as promptly as practicable (a) cease all work with respect to the Product, and (b) turn over to Purchaser all Purchaser
Confidential Information and Information (as defined in Section 3.1 of the Confidentiality Agreement) (whether in written, electronic or other tangible form, including all embodiments thereof) which are then in Supplier’s possession or control.

 8.3.2 The provisions of Articles 1, 7 and 9-13, and Sections 6.4, 6.5, 6.6, 6.8 and 8.3 of this Agreement shall survive the
expiration or termination of this Agreement for any reason. 
 8.4 Supply Failure. 
 (a) Should Supplier not be able to supply at least [***] of the quantities of Product ordered by Purchaser pursuant to purchase orders in
accordance with Section 5.2 for any [***] period within [***] of the dates specified in such purchase orders in compliance with this Agreement for any reason, then such event shall be deemed a “Supply Failure.” Notwithstanding
the foregoing, such event shall not be deemed a Supply Failure if such event is caused by a force majeure event (as described in Section 13.6), provided that (i) Supplier notifies Purchaser immediately upon the occurrence of such force
majeure event, and (ii) such force majeure event lasts no longer than [***]. 
 (b) In the event of a Supply Failure,
Purchaser’s obligation under Section 5.3 to purchase the Minimum Purchase Obligation of Product from Supplier shall terminate, subject to the terms of Section 8.4(c) below. 
 (c) In the event that a Supply Failure occurs and such Supply Failure is the first Supply Failure to occur during the Term of this
Agreement, at the written request of Supplier, if Supplier has taken the necessary steps to ensure that a Supply Failure will not re-occur, the Parties shall discuss in good faith reinstating Purchaser’s obligation under Section 5.3 to
purchase the Minimum Purchase Obligation from Supplier. If the Parties mutually agree in good faith that Supplier has remedied the Supply Failure and has taken all steps necessary to ensure that a Supply Failure will not re-occur, Purchaser’s
obligation under Section 5.3 to purchase the Minimum Purchase Obligation from Supplier shall be reinstated, effective [***] following the date of such agreement (such effective date of reinstatement, the “Minimum Purchase Obligation
Re-instatement Date”); provided, however, that, (i) for the [***] period (as described in Section 5.3) that Purchaser’s obligation to purchase the Minimum Purchase Obligation is re-instated, the Minimum Purchase
Obligation shall be pro-rated for the time remaining in such [***] period following the Minimum Purchase Obligation Re-instatement Date; and (ii) Purchaser’s obligation to purchase the Minimum Purchase Obligation under Section 5.3
shall be subject to, and modified to the extent necessary to comply with, any obligations incurred by Purchaser between the date of the Supply Failure and the date that the Parties agreed that the Minimum Purchase Obligation should be re-instated.

  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 This Section 8.4 shall in no way limit any of Purchaser’s legal, equitable or other remedies for
Supplier’s breach of its obligations to supply Product to Purchaser under Article 2. 
  

	9.	CONFIDENTIAL INFORMATION 

 9.1 Confidential
Information. The Parties may from time to time disclose to each other Confidential Information. “Confidential Information” means any information disclosed by one Party to the other Party that, if disclosed in tangible form, is
marked “confidential” or with other similar designation to indicate its confidential or proprietary nature or, if disclosed orally, is indicated orally to be confidential or proprietary by the Party disclosing the information at the time
of the disclosure and is confirmed in writing as confidential or proprietary by the disclosing Party within forty-five (45) days after such disclosure. For avoidance of doubt, all data and information regarding the Product provided by Supplier
to Purchaser shall be deemed the Confidential Information of Purchaser. Notwithstanding the foregoing or anything herein to the contrary, Confidential Information shall not include any information that, in each case as demonstrated by written
documentation; (a) was already known to the receiving Party, other than under an obligation of confidentiality, at the time of disclosure; (b) was generally available to the public or otherwise part of the public domain at the time of its
disclosure to the receiving Party; (c) became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the receiving Party in breach of this Agreement; or
(d) was subsequently lawfully disclosed to the receiving Party by a person other than the disclosing Party. 
 9.2 Confidentiality. During the Term and until the seventh (7th) anniversary of any termination or
expiration of the Agreement, each Party shall hold and maintain in strict confidence all Confidential Information of the other Party. Without limiting the foregoing, neither Party shall use or disclose the Confidential Information of the other
Party, except as otherwise permitted by this Agreement or as may be necessary or useful to exercise its rights or perform its obligations under this Agreement. Subject to Section 9.4 below, nothing contained in this Article 9 of this Agreement
shall prevent either Party from disclosing any Confidential Information of the other Party to the extent reasonable necessary in prosecuting or defending litigation, complying with applicable governmental laws, regulations, such as SEC regulations,
or court order or otherwise submitting information to tax or other governmental authorities, in submissions to Regulatory Agencies, or as a part of patent applications filed on inventions made under this Agreement; provided that if a Party is
required by law to make any such disclosure, other than pursuant to a confidentiality agreement, it will give reasonable advance notice to the other Party of such disclosure and, save to the extent inappropriate in the case of patent applications or
the like, will use its reasonable efforts to secure confidential treatment of such information. 
 9.3 Confidential Terms. Each Party
shall treat the terms and exhibits of this Agreement as the Confidential Information of the other Party. Notwithstanding anything to the contrary, however, each Party may disclose the terms and exhibits of this Agreement (a) to advisors, actual
or potential investors, acquisition partners and others on a need to know basis under circumstances that reasonably ensure the confidentiality thereof, or (b) as required by securities or other applicable laws or regulations, such as SEC
regulations. 
  

 -11- 

 9.4 Primacy of the Confidentiality Agreement. Notwithstanding anything to the contrary in this
Article 9, the terms of the Confidentiality Agreement shall govern Supplier’s obligations with respect to any information or data disclosed to Supplier hereunder that constitutes Information (as defined in Section 3.1 of the
Confidentiality Agreement) in the event of a conflict between such terms and the terms of Sections 9.1-9.3 of this Agreement. 
  

	10.	REGULATORY MATTERS 

 10.1 Product. Supplier
shall maintain with the FDA a valid DMF for the Product that is in compliance with applicable FDA requirements, and Purchaser shall have the right to reference such DMF in its drug applications for the Finished Product. Supplier shall ensure that
such DMF contains all material written and other information relating to the manufacture of Product in Supplier’s possession or control that is necessary for Purchaser to apply for, obtain and thereafter maintain Regulatory Approvals for the
Finished Product in the Territory, including without limitation information relating to that portion of the Facility used in the manufacture of Product, process, methodology or components used in the manufacture of Product or other such information
required to be submitted to Regulatory Agencies (collectively “Product Regulatory Information”). In the event Regulatory Agencies do not accept Purchaser’s reference to Supplier’s DMF or otherwise require
additional Product Regulatory Information for Purchaser to obtain and/or maintain Regulatory Approvals, Supplier agrees to provide all such required Product Regulatory Information to such Regulatory Agencies in the format required by such Regulatory
Agencies and as soon as reasonably practicable but in any case within thirty (30) days after receipt of notification thereof from Purchaser or the applicable Regulatory Agency, as the case may be. Supplier agrees to: (i) promptly inform
Purchaser when any “pertinent” changes (as described by the FDA in Part VII.A. of its Guideline for Drug Master Files and as required in 21 CFR 314. 420(c)) to current Product manufacturing practices and/or procedures are made and to
provide updated information to Purchaser from time to time; (ii) promptly provide Purchaser, as requested, with all available Product Regulatory Information; and (iii) to cooperate with Purchaser with respect to all reporting obligations
relevant to the Product under Applicable Laws. 
 10.2 Finished Product. The Purchaser shall be responsible for obtaining and
maintaining all Regulatory Approvals with respect to the Finished Product in the Territory other than those Regulatory Approvals relating to the Product and Supplier’s manufacture thereof, if any, which shall be the responsibility of Supplier.
Supplier shall cooperate and provide reasonable assistance to Purchaser in connection with Purchaser’s obtainment and maintenance of Regulatory Approvals for Finished Product. 
 10.3 Regulatory Actions. Supplier shall permit the FDA and other Regulatory Agencies to conduct inspections of the Facility as they may request,
including pre-approval inspections and any related matters, in each case which is related to the Product or Supplier’s manufacture thereof, and shall cooperate with such Regulatory Agencies with respect to such inspections and related matters.
Supplier shall give Purchaser prior written notice, to the extent practicable, of any such inspections specifically related to the Product, and keep Purchaser informed about the results and conclusions of such regulatory inspections, including
actions taken by Supplier to remedy conditions cited in the inspections. In addition, Supplier shall permit Purchaser or its representative to be present at such inspections if requested by Supplier. 

  

 -12- 

 
Supplier will provide Purchaser with copies of any written inspection reports issued by the Regulatory Agency and all correspondence between Supplier and the
Regulatory Agency, including, but not limited to, FDA Form 483, Notice of Observation, and all related correspondence, in each case relating to the Product or general manufacturing concerns (i.e., facility compliance or the like). Redacted copies
will be provided by the Supplier in situations where the Supplier reasonably determines that there are confidentiality concerns and such redacted information is not reasonably related to the Product or Finished Product, provided that Supplier shall
not redact any information that would reasonably be expected to affect the regulatory status of the Product or Supplier’s manufacture thereof. Similarly, Supplier agrees to promptly notify and provide Purchaser copies of any request, directive
or other communication of the FDA or other Regulatory Agency relating to the Product, and to cooperate with Purchaser in responding to such requests, directives and communications. 
  

	11.	REPRESENTATIONS AND WARRANTIES 

 11.1
General. Each Party represents and warrants that: (a) it has full power to enter into this Agreement and to grant to the other Party the rights granted to such other Party under this Agreement and (b) it has obtained all necessary
corporate approvals to enter into and execute the Agreement. 
 11.2 Product Warranties. Supplier represents and warrants that:

 11.2.1 All Product supplied hereunder shall comply with the applicable Specifications and, if applicable, shall conform
with the information shown on the certificate of analysis provided for the particular shipment pursuant to Section 6.2 above; 
 11.2.2 The Facility, the manufacturing and supply activities contemplated herein, and all Product supplied hereunder shall comply with all Applicable Laws. Without limiting the foregoing, at the time of shipment to Purchaser, none of the
Product shall be adulterated or misbranded within the meaning of the FDCA, as amended and in effect at the time of shipment. 
 11.2.3 Title to all Product provided to Purchaser under this Agreement shall pass as provided in this Agreement, free and clear of any security interest, lien, or other encumbrance. 
 11.3 Personnel. Supplier represents and warrants to Purchaser that neither Supplier nor any of its employees have been “debarred” by the
FDA, or subject to a similar sanction from another Regulatory Agency, nor have debarment proceedings against Supplier or any of its employees been commenced. Supplier will promptly notify Purchaser in writing if any such proceedings have commenced
or if Supplier or any of its employees are debarred by the FDA or other Regulatory Agencies. 
 11.4 Disclaimer. EXCEPT AS PROVIDED IN
THIS ARTICLE 11, NEITHER PARTY MAKES ANY WARRANTIES OR CONDITIONS (EXPRESS, IMPLIED, STATUTORY OR OTHERWISE) WITH RESPECT TO THE SUBJECT MATTER HEREOF AND EACH PARTY EXPRESSLY DISCLAIMS ANY SUCH ADDITIONAL WARRANTIES INCLUDING, BUT NOT LIMITED TO,
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, EVEN IF THAT PURPOSE IS KNOWN TO SUCH PARTY. 
  

 -13- 

	12.	INDEMNIFICATION 

 12.1 Indemnity by Supplier.
Supplier agrees to indemnify, protect, defend and hold harmless Purchaser, its directors, officers, employees, successors and assigns from and against any claims, damages, liability, harm, loss, costs, penalties, lawsuits, threats of lawsuit or
other governmental action, including reasonable attorney’s fees, arising out of any claim, complaint, suit, proceeding, or cause of action brought or claimed by any third party which arise out of: (i) Supplier’s breach of this
Agreement or of any warranty or representation made by Supplier to Purchaser under this Agreement; or (ii) the negligent or intentionally wrongful acts or omissions of Supplier. 
 12.2 Indemnity by Purchaser. Purchaser agrees to indemnify, protect, defend and hold harmless Supplier, its directors, officers, employees,
successors and assigns from and against any claims, damages, liability, harm, loss, costs, penalties, lawsuits, threats of lawsuit, recalls or other governmental action, including reasonable attorney’s fees, arising out of any claim, complaint,
suit, proceeding, or cause of action brought or claimed by any third-party which (i) arise out of Purchaser’s breach of this Agreement or of any warranty or representation made to Supplier under this Agreement; or (ii) result from the
manufacture, sale, marketing, use or distribution by Purchaser (or its designee) of Finished Product (to the extent not attributable to any Product), including without limitation the negligent or intentionally wrongful acts or omissions of Purchaser
(or its designee); except in each case to the extent that Supplier is obligated to indemnify, protect and defend Purchaser for such claims under Section 12.1 above. 
 12.3 Indemnification Procedure. A Party that intends to claim indemnification (“Indemnitee”) under this Article 12 shall promptly notify the indemnifying Party (“Indemnitor”)
in writing of any third party claim, suit, or proceeding included within the indemnification described in this Article 12 (each a “Claim”) with respect to which the Indemnitee intends to claim such indemnification, and the
Indemnitor shall have sole control of the defense and settlement of the Claim; provided that the Indemnitor shall not enter into any settlement that admits the fault of Indemnitee without the prior written consent of Indemnitee, such consent not to
be unreasonably withheld. The Indemnitee shall have the right to participate, at its own expense, with counsel of its own choosing in the defense or settlement of the Claim. The indemnification obligations under this Article 12 shall not apply to
amounts paid in settlement of any Claim if such settlement is effected without the consent of the Indemnitor. The Indemnitee and its employees, at the Indemnitor’s request and expense, shall provide full information and reasonable assistance to
Indemnitor and its legal representatives with respect to Claims. 
 12.4 Limitation of Liability. EXCEPT TO THE EXTENT SUCH PARTY MAY
BE REQUIRED TO INDEMNIFY THE OTHER PARTY UNDER THIS ARTICLE 12 OR IN THE CASE OF WILLFUL BREACH OF THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES TO THE OTHER PARTY OR ANY
OTHER PERSON (INCLUDING DAMAGES FOR LOSS OF BUSINESS PROFITS) ARISING FROM OR RELATING TO ANY CLAIM MADE UNDER THIS AGREEMENT. 
  

 -14- 

	13.	MISCELLANEOUS 

 13.1 Entire Agreement;
Amendment. This Agreement, including all Exhibits hereto, sets forth the entire agreement and understanding between the Parties and supersedes all previous agreements, promises, representations, understandings and negotiations, whether written
or oral, between the Parties with respect to the subject matter hereof; provided, however, that this Agreement shall not supersede the Confidentiality Agreement, and in the case of a conflict between the terms of this Agreement and the terms of the
Confidentiality Agreement, the terms of the Confidentiality Agreement shall govern. None of the terms of this Agreement shall be amended or modified except in writing signed by the Parties hereto. 
 13.2 Assignment. Neither Party may assign or transfer any of its rights under this Agreement or delegate any of its obligations or duties under
this Agreement without the prior written consent of the other Party. Notwithstanding the foregoing: 
 13.2.1 Purchaser may
assign or transfer any of its rights or delegate any of its obligations or duties under this Agreement, to a successor by way of merger, consolidation or the acquisition of substantially all of its business and assets relating hereto; provided that
such assignee assumes in writing Purchaser’s obligations under this Agreement and agrees to be bound by the terms and conditions hereof. 
 13.2.2 Supplier may not assign or transfer any of its rights or delegate any of its obligations or duties under this Agreement, except that Supplier may assign this Agreement to a successor by way of merger,
consolidation or the acquisition of substantially all of its business and assets relating hereto, provided that such assignment of this Agreement by Supplier is together with a valid assignment by Supplier of the Confidentiality Agreement to
such successor (i.e. Supplier’s assignment of the Confidentiality Agreement to such successor is permitted by the terms of the Confidentiality Agreement), and such successor assumes in writing Supplier’s obligations under this Agreement
and agrees to be bound by the terms and conditions hereof and thereof. 
 13.3 Severability. If and solely to the extent that any
provision of this Agreement shall be invalid or unenforceable, or shall, if kept effective in this Agreement, render this entire Agreement to be invalid or unenforceable, such offending provision shall be of no effect and shall not affect the
validity of the remainder of this Agreement or any of its provisions; provided, however, the Parties shall use their respective reasonable efforts to renegotiate the unenforceable provisions to best accomplish the original intentions of the Parties
with respect to such provisions. 
 13.4 Waivers. Any waiver of the terms and conditions hereof must be explicitly in writing. A
waiver by any Party of any term or condition of this Agreement in any one instance shall not be deemed or construed to be a waiver of such term or condition for any similar instance in the future or of any subsequent breach hereof. All rights,
remedies, undertakings, obligations and agreements contained in this Agreement shall be cumulative and none of them shall be a limitation of any other remedy, right, undertaking, obligation or agreement. 
  

 -15- 

 13.5 Further Documents. Each Party hereto agrees to execute such further documents and take such
further steps as the other Parties reasonably determine may be necessary or desirable to effectuate the purposes of this Agreement. 
 13.6
Force Majeure. No Party shall be liable for failure to perform or delay in performing obligations set forth in this Agreement, and no Party shall be deemed in breach or default of its obligations, if, to the extent and for so long as, such
failure, delay, breach or default is due to natural disasters or causes beyond the reasonable control of such Party. Availability or allocation of raw materials or labor shall not constitute a force majeure event. Any Party desiring to invoke the
protection of force majeure hereunder shall promptly notify the other Party of such desire and shall use reasonable efforts to resume performance of its obligations. 
 13.7 Governing Law. This Agreement is deemed to have been entered into in the State of Delaware, and, subject to the dispute resolution procedure outlined in Section 13.8 below, its interpretation,
construction, and the remedies for its enforcement or breach shall be governed by, and are to be applied pursuant to and in accordance with, the laws of the State of Delaware, without reference to conflict of laws principles and excluding the 1980
U.N. Convention on Contracts for the International Sale of Goods. 
 13.8 Disputes. In the event of any dispute or claim arising out
of or in connection with this Agreement, or the performance, breach or termination thereof, either Supplier or Purchaser may, by written notice to the other Party, have such dispute referred to the Chief Executive Officers (or equivalent) of
Supplier and Purchaser, for attempted resolution by good faith negotiations within thirty (30) days after such notice is received by such other Party. If the Parties are unable to resolve such dispute within such thirty (30) day period,
such dispute shall be finally settled by binding arbitration by Judicial Arbitration and Mediation Services, Inc. (JAMS) under its rules of arbitration, by three (3) arbitrators appointed in accordance with said rules, unless the Parties to the
dispute have agreed to have only one (1) arbitrator. The decision and/or award rendered by the arbitrator(s) shall be written, final and non-appealable, and judgment on such decision and/or award may be entered in any court of competent
jurisdiction. The arbitral proceedings and all pleadings and evidence shall be in the English language. Any evidence originally in a language other than English shall be submitted with a certified English translation accompanied by an original or
true copy thereof. In the event such dispute is referred to arbitration by Supplier, the place of arbitration shall be San Francisco, California, and in the event such dispute is referred to arbitration by Purchaser, the place of arbitration shall
be Atlanta, Georgia. The costs of any arbitration, including administrative fees and fees of the arbitrator(s), shall be shared equally by the Parties to the dispute, unless otherwise determined by the arbitrator(s). Each Party shall bear the cost
of its own attorneys, and expert fees. The Parties agree that, any provision of applicable law notwithstanding, they will not request, and the arbitrator shall have no authority to award, punitive or exemplary damages against any Party.
Notwithstanding the foregoing, a Party may at any time seek injunctive or other equitable relief for any breach or alleged breach by the other Party of this Agreement. 
  

 -16- 

 13.9 Subcontracting. Supplier shall not subcontract any of its obligations hereunder (including
its obligations under the Product Plan) to another entity without Purchaser’s prior written approval. In any case, Supplier shall remain completely responsible for all services or other obligations that are subcontracted. All subcontractors
hereunder shall be bound by the terms and conditions herein, with respect to the subcontracted services or obligations, as if named together with Supplier. 
 13.10 Notices. Any notice, consent or approval permitted or required under this Agreement shall be in writing sent by registered or certified airmail (postage prepaid), overnight courier or by facsimile (with
such facsimile to be promptly confirmed by registered or certified airmail, postage prepaid) and addressed as follows: 
  

			
	 If to Supplier:
	  	Mikart, Inc.
		  	1750 Chattahoochee Ave
		  	Atlanta, GA 30318
		  	Attention: Miguel I. Arteche, Chairman & CEO
		  	Fax No.: 404-350-0432
		
	 If to Purchaser:
	  	Transcept Pharmaceuticals, Inc.
		  	1003 W. Cutting Blvd., Suite 110
		  	Pt. Richmond, CA 94804
		  	Attention: Glenn A. Oclassen Sr., CEO
		  	Fax No.: 510-215-3535

 All notices shall be deemed to be effective on the business day after delivery of such notice to the overnight
courier, the day such notice is received by addressee via registered or certified mail, or the day on which such notice is sent by facsimile. In case any Party changes its address at which notices are to be received, written notice of such change
shall be given as soon as practicable to the other Party. 
 13.11 Forms. The Parties recognize that, during the term of this
Agreement, a purchase order form, purchase order acknowledgment form or similar routine document (collectively, “Forms”) may be used to implement or administer provisions of this Agreement. Therefore, the Parties agree that
the terms of this Agreement shall prevail in the event of any conflict between this Agreement and the printed provisions of such Forms, or typed provisions of Forms that add to, vary, modify or are in conflict with the provisions of this Agreement.

 13.12 Implied Obligations. This Agreement sets forth all of the rights and obligations of the Parties with respect to the subject
matter hereof. 
 13.13 Headings. Headings in this Agreement are included for ease of reference only and shall have no legal effect
and shall not be used in any way to construe or interpret this Agreement. 
 13.14 Relationship of the Parties. The relationship
hereby established between Purchaser and Supplier is solely that of independent contractors; this Agreement shall not create an agency, partnership, joint venture or employer/employee relationship, and nothing hereunder shall be deemed to authorize
either Party to act for, represent or bind the other except as expressly provided in this Agreement. 
  

 -17- 

 13.15 Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall constitute an original and all of which together shall constitute a single instrument. 
 IN WITNESS WHEREOF, the Parties hereto have
caused this Agreement to be executed as of the Effective Date by their duly authorized officers. 
  

													
	TRANSCEPT PHARMACEUTICALS, INC.	 	MIKART, INC.
					
	By:	 	/s/ Glenn A. Oclassen	 		 	By:	 	/s/ Miguel I. Arteche
		 	Name:	 	Glenn A. Oclassen	 		 		 	Name:	 	Miguel I. Arteche
		 	Title:	 	President and CEO	 		 		 	Title:	 	Chairman & CEO
					
		 	/s/ Thomas Soloway	 		 		 	
		 	Thomas Soloway, CFO	 		 		 		 	

  

 -18- 

 EXHIBIT A 
 PRODUCT PRICING 
 Product Name: Buffered Soda  
 Price: 
 The price of Product shall be determined as follows:

  

					
	 Aggregate Kilograms Product Purchased in a Given Calendar Year
	  	Price per Kilogram of
Product	 
	 [***]
	  	$	[	***]
	 [***]
	  	$	[	***]
	 [***]
	  	$	[	***]

 Provided, however, that, except as provided in Section 3.2, in no case shall the price of Product be greater
than $[***] per batch, with a batch being approximately equal to [***] of Product. 
  

 19 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 EXHIBIT B 
 PRODUCT SPECIFICATIONS 
 Product Name: Buffered Soda  
 Specifications: 
 CERTIFICATE OF ANALYSIS

 [***] 
 Buffered Soda 
  

			
	Date of Mfg:	  	October 2006
	Retest Date:	  	April 2006
	Expiration Date:	  	October 2007
	Lot No.: [***]	  	

  

							
	 Analysis
	  	Method	  	Results	  	 Specifications

				
		  		  		  	[***]

  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 EXHIBIT C 
 PRODUCT PLAN 
 [To be attached] 

 QUOTE # 1107VLH 
          Revision 2          
 

 
 Product Technical Transfer Proposal 
 Date: December 20, 2007 

	Customer:  	Transcept Pharmaceuticals, Inc. 

   1003 W. Cutting Blvd., Suite 110 
   Pt. Richmond, CA 94804 
 Contact: Dennie Dyer 
 Phone: 510-215-3580 
 Fax: 510-215-3535 
 Email: ddyer@transcept.com 
 Project Description: 
 This proposal covers the technology transfer
for analytical methodology and manufacturing processes for [***] (“Buffered Soda”) that Mikart, Inc., located at 1750 Chattahoochee Ave, Atlanta, GA 30318, will undertake for Transcept. Under this proposal, Mikart will also create and
provide to Transcept a Drug Master File (DMF) for the Buffered Soda in a form reasonable acceptable to Transcept and will file such DMF in accordance with Transcept’s instructions following Transcept’s review and written acceptance of such
DMF. 
 Background: Transcept Pharmaceuticals, Inc. wishes to qualify Mikart as the manufacturer of Buffered Soda, [***]. 
 Mikart, Inc. will evaluate the manufacturing process and perform all necessary work required to transfer the manufacturing process and test methods for Buffered Soda to
Mikart’s GMP manufacturing facility located in 2090 Marietta Blvd., Atlanta, GA 30318. Documentation required for the filing will be prepared by Mikart as well. A detailed list of activities begins on page 3 (sections A – D). 

A minimum of one feasibility batch of Buffered Soda will be required to be produced by Mikart. Additionally, the DMF package will require Mikart to produce three
exhibit/registration batches which will be used for stability studies in support of the submission. Batch sizes will be determined by Mikart and Transcept. Mikart will prepare and file the DMF in CTD format. All FDA and ICH guidance documents are
applicable. 
 The material will be packaged in bulk and entered into the stability program at Mikart, Inc. [***] 

  

 Page 1 of 7 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 QUOTE # 1107VLH 
          Revision 2          
 Mikart acknowledges that the Buffered Soda technology being transferred to Mikart hereunder is subject to that certain Confidentiality Agreement between Transcept, Mikart and SPI Pharma, Inc. dated October 12, 2007 (the
“Confidential Disclosure Agreement”), including the restricted use and non-disclosure provisions thereof. In the event of a conflict between the terms of this proposal and the terms of the Confidential Disclosure Agreement with respect to
the Buffered Soda technology, the terms of the Confidential Disclosure Agreement shall govern. The parties agree that their performance of their obligations under this proposal shall be governed by Delaware law, without regard to conflicts of law
provisions. 
  

 Page 2 of 7 

 QUOTE # 1107VLH 
 Revision 2         
 Notes: 
  

	 	1.	In order to address annual volumes, batch sizes, etc., the customer and Mikart agree to have a signed Manufacturing and Supply Agreement in place no later than the completion of
Section A (Process Evaluation and Transfer of Analytical Methods). 

  

	 	2.	Suggested batch sizes may need to be adjusted based upon equipment capabilities. 

  

	 	3.	This proposal covers only the technical transfer and DMF preparation and filing, and does not include commercial manufacturing, process validation or commercial stability.

  

	 	4.	Mikart will purchase the necessary laboratory equipment (autotitrator), which will be billed under a separate invoice, subject to item 4 of the Payment Schedule.

  

	 	5.	This proposal is based on information provided thus far, and is subject to change pending additional and more detailed instructions regarding the DMF filing, provided that any
material changes to the activities of Payment Schedule of this proposal will require the written agreement of the parties prior to the initiation of such changes. 

  

	 	6.	Mikart represents and warrants to Transcept that neither Mikart nor any of its employees have been “debarred” by the FDA, or subject to a similar sanction from another
regulatory agency, nor have debarment proceedings against Mikart or any of its employees been commenced. Mikart will promptly notify Transcept in writing if any such proceedings have commenced or if Mikart or any of its employees are debarred by the
FDA or other regulatory agencies. 

  

	 	7.	Mikart agrees to perform all activities described herein in accordance with all applicable laws and regulations (including, without limitation, the US Federal Food, Drug and
Cosmetic Act, GMP and the rules and guidelines of the FDA and ICH), and agrees to perform such activities in a diligent and timely manner. 

  

	 	8.	Each party (the “Indemnitor”) agrees to indemnify the other (the “indemnitee”) for third party claims brought against the Indemnitee as a result of the
indemnitor’s negligence or breach of its obligations hereunder; provided that (i) the Indemnitee promptly provides notice of such third party claims to the Indemnitor and reasonably cooperates with the Indemnitor with respect to such
claims, and (ii) the Indemnitor has sole control of the defense and settlement of such claims (provided that the Indemnitor shall not settle any such claim in such a manner that admits the Indemnitee’s fault without the Indemnitees prior
written consent, such consent not to be unreasonably withheld). 

  

 Page 3 of 7 

 QUOTE # 1107VLH 
 Revision 2         
 Product Technical Transfer Proposal

  

							
	A.	  	Process Evaluation and Transfer of Analytical Methods	  	[***]
		  		  	 [***]
	  	
	B.	  	Feasibility Batch and Tech Transfer to Mfg and QC	  	[***]
		  		  	 [***]
	  	
	C.	  	Exhibit / Registration Batch Manufacturing, Bulk Packaging and Stability Studies	  	[***]
		  		  	 [***]
	  	
	D.	  	Document Preparation of Drug Master File	  	[***]
		  		  	 [***]
	  	
		  		  	Total for Transfer and Manufacturing:	  	[***]

  

 Page 4 of 7 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 QUOTE # 1107VLH 
 Revision 2         
 Payment Schedule 
 [***], will be invoiced upon completion of the following milestones: 
  

			
	 A.     Acceptance of this proposal:
	  	[***]
	 B.     Completion of manufacturing and Trancept’s acceptance of three (3) exhibit batches, including C of
A’s:
	  	[***]
	 C.     Filing of the Drug Master File (DMF) accepted By Trancept:
	  	[***]

 Payments for miscellaneous Items: 
  

	 	1.	The raw material will be supplied by [***]. Any dedicated tooling used for development and exhibit batches will be billed at cost. 

  

	 	2.	Project specific supplies, such as reference drugs, analytical standards, columns and/or reagents, will be billed at cost. A copy of the purchase invoice may be provided, upon
request, along with the request for payment. 

  

	 	3.	Any necessary outside services, such as contract testing or consultation, will be billed at cost. Written customer authorization will be obtained prior to consultations.

  

	 	4.	Notwithstanding anything in this Agreement to the contrary, Transcept will not be responsible for any charges for miscellaneous items (or any other charges not described in parts
A-C of the Payment Schedule) that exceed [***] in a given month unless Mikart had obtained Transcept’s written authorization prior to incurring such charges. 

 Payment Terms: Net 30 days from date of receipt of invoice 
  

 Page 6 of 7 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 QUOTE # 1107VLH 
 Revision 2         
 Project Timeline 
 Specific dates and milestone lead-times will be established and agreed to by the parties after formal acceptance of this quote by both parties. Mikart will forward a
preliminary timeline for review shortly after the project is authorized. Subsequent conferences will be held to establish definitive dates for the project’s timeline. 
 Project Authorization 
 The parties below hereby agree to undertake their obligation under this proposal and to be
bound by the terms hereof: 
  

									
	Transcept Pharmaceuticals, Inc.	 		 	Mikart, Inc.
					
	By:	 	/s/ Illegible	 		 	By:	 	/s/ Illegible
	Title:	 	CFO	 		 	Title:	 	CEO
	Date:	 	12/19/07	 		 	Date:	 	2/1/08
					
		 	/s/ Illegible	 		 		 	
		 	Illegible	 		 		 	

 THIS QUOTATION IS VALID FOR 90 DAYS 
  

					
	1750 Chattahoochee Avenue, Atlanta, GA 30318	 	 Phone (404) 351-4510
	 	 Fax (404) 350-0432

  

 Page 7 of 7Manufacturing and Supply Agreement,dated as of April 21, 2008

 Exhibit 10.14 
 MANUFACTURING AND SUPPLY AGREEMENT 
 THIS MANUFACTURING AND SUPPLY AGREEMENT (this
“Agreement”) is made and entered into this 21st day of August 2008 (the “Effective Date”) by and between MIKART, INC. (“Mikart”) and TRANSCEPT PHARMACEUTICALS, INC.
(“Transcept”). Mikart is a Georgia corporation with its principal place of business at 1750 Chattahoochee Avenue, Atlanta, Georgia 30318. Transcept is a Delaware corporation with its principal place of business at 1003 W. Cutting
Boulevard, Suite 110, Pt. Richmond, California 94804. 
 BACKGROUND 
 A. Subject to the terms and conditions contained in this Agreement, Transcept desires to qualify and engage Mikart to manufacture Products (as defined
below) for commercial sale by Transcept and/or its designees; and 
 B. Mikart desires to accept such appointment and to perform certain
qualification services to enable it to manufacture Products for Transcept and, following Mikart’s successful qualification as a manufacturer of Products, to manufacture and supply such Products to Transcept or its designee for commercial sale.

 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants, agreements and promises contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Mikart and Transcept hereby agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 Capitalized words, terms and phrases, which are not otherwise defined herein, shall have the following respective meanings: 
 1.1 “Applicable Laws” shall mean all laws, ordinances, rules and regulations of any governmental or regulatory authority in the Territory (as such Territory may be expanded pursuant to
Section 2.9 below) that apply to the Qualification Services, the Products or this Agreement, including without limitation (a) all applicable federal, state and local laws and regulations; (b) the U.S. Federal Food, Drug and Cosmetic
Act (“FDCA”), (c) regulations and guidelines of the FDA and other Regulatory Agencies, and ICH guidelines and (d) GMP, and if applicable, current Good Laboratory Practices and current Good Clinical Practices promulgated by
the FDA and other Regulatory Agencies. 
 1.2 “Batch” shall mean: (i) in the case of Product containing 3.5 mg
of Zolpidem Tartrate, the quantity of 1,500,000 tablets of such Product, or (ii) in the case of Product containing 1.75 mg of Zolpidem Tartrate, the quantity of 500,000 tablets of such Product, or (iii) such other quantity of a Product
that may be mutually agreed to in writing by the Parties. 
  

  
 Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 1.3 “Confidential Information” shall mean the proprietary and confidential data
or information of a party hereto which is of tangible or intangible value to such party, is not generally known by or available to the competitors of such party (including, without exclusion, the contents of this Agreement) and which is disclosed in
writing, orally or in other form to the other party. For avoidance of doubt, all information transferred to Mikart pursuant to Section 2.1 below and all Product Information (as defined below) shall be deemed the Confidential Information of
Transcept. Notwithstanding the foregoing, Confidential Information shall not include information which: (i) at the time of disclosure to the receiving party is in the public domain or thereafter enters the public domain through no wrongful act
or omission of the receiving party; (ii) is already known by the receiving party at the time of disclosure by the disclosing party and such information is not otherwise subject to confidentiality obligations of the receiving party (provided
that this exception (ii) shall not apply to Product Information); or (iii) is made available to the receiving party at the time of or following the disclosing party’s disclosure thereof by a third party who, to the receiving
party’s reasonable knowledge, may disclose such information to the receiving party without violation of any confidentiality obligation. 
 1.4 “Contract Year” shall mean a twelve (12) consecutive month period during the Term of this Agreement, and the first Contract Year shall commence as of the Commencement Date and subsequent Contract Years shall
commence on each anniversary of the Commencement Date. 
 1.5 “Commencement Date” shall mean the first day, following
full FDA qualification and approval of Mikart and the Facility as a commercial manufacturer of Products, that a Product is manufactured and shipped by Mikart to Transcept (or its designee) for commercial distribution by Transcept or its designee.

 1.6 “Facility” shall mean Mikart’s GMP manufacturing facility located at 2090 Marietta Blvd., Atlanta, GA
30318. 
 1.7 “FDA” shall mean the United States Food and Drug Administration or any successor agency thereof.

 1.8 “GMP” shall mean current good manufacturing practice and standards as provided for (and as amended from time
to time) in the Current Good Manufacturing Practice Regulations of the U.S. Code of Federal Regulations Title 21 (21 CFR §§ 210 and 211) in relation to the production of biopharmaceutical products, as interpreted by the ICH Harmonized
Tripartite Guideline, any U.S. or other applicable laws, regulations or respective guidance documents subsequently established by a governmental or regulatory authority in the Territory, and any arrangements, additions or clarifications agreed from
time to time between the parties. 
  

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 1.9 “Humidity Control System” means [***]. 
 1.10 “Product(s)” shall mean the 1.75 mg or 3.5 mg Zolpidem Tartrate product(s) to be manufactured and supplied by Mikart
hereunder, as further described in Exhibit A. 
 1.11 “Product Information” means any deliverables, data,
reports or other information generated by Mikart in the course of its performance of this Agreement (including in the course of the Qualification Services), including but not limited to Product IP (as defined in Section 11.1 below). 

1.12 “Regulatory Agency” shall mean any governmental regulatory authority involved in regulating any aspect of the
Qualification Services or the development, manufacture, market approval, sale, distribution, packaging or use of the Products in the Territory (as such Territory may be expanded pursuant to Section 2.9) including the FDA. 
 1.13 “Specifications” shall mean the specifications for the manufacturing, bulk packaging and bulk labeling of each Product that
are set forth on Exhibit A attached hereto and that may be mutually agreed to in writing by Mikart and Transcept, in each case which are incorporated herein by reference, as the same may be modified pursuant to Section 2.5 below. In
addition, the Specifications shall in all cases include compliance with all Applicable Laws and the Quality Agreement (as defined in Section 2.3(a) below). 
 1.14 “Territory” shall mean the [***]. 
 ARTICLE 2 
 TESTING AND MANUFACTURE 
 2.1
Qualification Services. 
 (a) Promptly following Mikart’s full installation and qualification of the Humidity Control System
and Transcept’s payment to Mikart of the total [***] therefor as described in Sections 2.10(a) and 2.10(b) below, the parties will cooperate in the transfer of certain Product manufacturing processes and test methods to Mikart, and Mikart will
evaluate such manufacturing processes and test methods and perform all necessary work required for such transfer to enable Mikart to successfully manufacture Product for Transcept for commercial supply, as described in more detail in Exhibit
C (such services to be performed by Mikart, the “Qualification Services”). Notwithstanding anything to the contrary in this Agreement, the Parties acknowledge and agree that, as soon as possible following the Effective Date
hereof, Mikart will provide to Transcept a written supplement to the Qualification Services that will contain a reasonable description of additional services (including, without limitation, dissolution 

  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 
testing) that will be necessary with respect to the successful manufacture of the Product, together with a list of Mikart’s standard rates for the
performance of such additional services. If such services and rates are acceptable to Transcept, Transcept agrees to pay Mikart for such additional services at Mikart’s standard rates therefor and Mikart agrees to perform such services in
accordance with the terms of this Agreement, and such services shall be considered Qualification Services for purposes of this Agreement. For the avoidance of doubt, if the Parties are unable to agree upon such services and rates following
reasonable, good faith negotiations, then neither Party shall be in breach, or deemed to be in breach, of this Agreement. 
 (b) Transcept
and Mikart acknowledge that Mikart must validate [***] of each strength of Product (1.75 mg or 3.50 mg tablet) prior to selling such Product to Transcept (each, a “Validation”) for a total of [***]. Accordingly, as part of the
Qualification Services, Mikart agrees to perform the Validation activities described in Exhibit C. After Mikart successfully completes each Validation, Transcept shall be obligated to purchase each of the [***] so validated in accordance with
the terms of this Agreement, provided that such Batches comply with the Specifications and the terms of this Agreement. The Parties acknowledge and agree that the Validation for each strength of the Product may occur at different times or during
different calendar years of the Term. It is understood that, for each strength of Product, Transcept shall only be obligated to purchase the [***] Validation Batches that were successfully manufactured consecutively by Mikart in accordance with
the Specifications and the terms of this Agreement, and Transcept shall not be required to purchase any other Validation Batches (even Validation Batches successfully manufactured by Mikart). In the event that Mikart does not perform the activities
described in the Validation Protocol (as defined in Section 2.11(c) below) as a result of Mikart’s negligence or failure to comply with Applicable Laws, the Specifications or the instructions of the Validation Protocol, Mikart agrees to
re-perform such activities [***] to Transcept. In the event that the Validation Batches manufactured in accordance with procedures of the Validation Protocol, Applicable Laws and the Specifications fail to meet the applicable statistical criteria,
the Parties agree to negotiate in good faith regarding financial responsibility for any additional Validation work required to be performed as a result thereof. All Batches purchased by Transcept shall apply towards, and shall fully satisfy,
Transcept’s Minimum Purchase Requirement (as defined in Section 3.5) for such Product for the applicable number of Contract Years (or portion thereof), and Transcept shall have the right to sell such Batches commercially. Mikart shall
maintain Stability Testing (as defined below) and Validation data for such Batches at its Facility or at such other location as agreed to by Transcept and Mikart in accordance with Applicable Laws. All of Mikart’s costs incurred in connection
with the Validation and the storage of data related thereto shall be as set forth in Exhibit C and shall be payable in accordance with the payment schedule included in Schedule C-3 of Exhibit C (the “Qualification Services Payment
Schedule”). All of Mikart’s costs incurred in connection with the Stability Testing and the storage of data for such Batches shall be periodically billed to and paid by Transcept in accordance with the Qualification Services Payment
Schedule. 
 (c) Mikart agrees to perform the Qualification Services, develop and perform the Validation Protocol and to deliver to Transcept
the completed deliverables described in Exhibit C, all in accordance with Exhibit C, this Agreement, Transcept’s written instructions and Applicable Laws. As used in this Section 2.1, “Validation Protocol”
shall mean a document 

  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 
developed by Mikart and approved by Transcept which shall: (i) describe the manufacturing process, (ii) describe objective and measurable criteria
for control of the manufacturing process, (iii) define the length and duration of the validation, and (iv) describe the equipment used in the manufacturing process. 
 2.2 Limited Warranties. Mikart hereby represents and warrants to Transcept that the Products manufactured and sold to Transcept hereunder
(including the Validation Batches) shall conform to the Specifications (including, without limitation, the terms of the Quality Agreement (as defined in Section 2.3(a) below)) and shall be free of all defects in materials and workmanship.
Mikart represents and warrants that: (i) all Products, when manufactured and picked up for delivery from Mikart’s Facility, shall comply with all Applicable Laws; and (ii) Mikart’s performance of all activities under this
Agreement (including the Qualification Services) shall comply with all Applicable Laws. Without limiting the foregoing, at the time of shipment to Transcept, none of the Product shall be adulterated or misbranded within the meaning of the FDCA, as
amended and in effect at the time of shipment. Mikart further represents and warrants that: (x) all Product shall be manufactured and stored at the Facility and that the Facility shall, during the Term, comply with Applicable Law; and
(y) title to all Products and deliverables provided to Transcept under this Agreement shall pass as provided in this Agreement, free and clear of any security interest, lien, or other encumbrance. Mikart represents and warrants to Transcept
that neither Mikart nor any of its employees have been “debarred” by the FDA, or subject to a similar sanction from another Regulatory Agency, nor have debarment proceedings against Mikart or any of its employees been commenced. Mikart
will promptly notify Transcept in writing if any such proceedings have commenced or if Mikart or any of its employees are debarred by the FDA or other Regulatory Agencies. EXCEPT AS SET FORTH IN THIS SECTION 2.2 AND SECTION 8.1 HEREOF, NEITHER
PARTY MAKES ANY OTHER REPRESENTATIONS OR WARRANTIES (EXPRESS, IMPLIED, STATUTORY OR OTHERWISE) WITH RESPECT TO THE SUBJECT MATTER HEREOF AND EACH PARTY SPECIFICALLY DISCLAIMS ALL SUCH OTHER REPRESENTATIONS AND WARRANTIES, INCLUDING, WITHOUT
LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 
 2.3 Quality Control.

 (a) Mikart will perform quality control testing on each Product in accordance with normal industry standards to determine whether such
Product conforms to the Specifications. Contemporaneously with each shipment of Products hereunder, Mikart will provide Transcept with a certificate of analysis with respect to such Product in a form reasonably acceptable to Transcept and describing
all current requirements of the Specifications, results of tests performed certifying that the Product supplied has been manufactured, controlled and released at the Facility in accordance with the Specifications and Applicable Laws. Mikart will
perform, at Transcept’s expense, any and all other testing relating to the Products which is reasonably requested by Transcept, and will promptly provide Transcept with the results thereof. The parties acknowledge that they will negotiate and
enter into a commercially reasonable quality agreement with respect to the manufacture, testing, storage, release, quality assurance and supply of Products by Mikart hereunder, which shall be attached hereto as Exhibit E (the “Quality
Agreement”). 
  

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 (b) In addition, Mikart shall be responsible for conducting an ongoing stability program as required by
Applicable Law (and, in the case of the Validation Batches, as described in Exhibit C) (“Stability Testing”). Mikart’s performance of Stability Testing for the Validation Batches shall be payable by Transcept pursuant to
the Qualification Services Payment Schedule. Mikart’s performance of Stability Testing for all other Batches of Product shall be payable by Transcept pursuant to Schedule C-2 and the Quality Services Payment Schedule. 
 (c) Mikart will, upon the reasonable request of Transcept, assay any Product returned to Transcept by a third party purchaser. Transcept shall reimburse
Mikart for the costs of any such assay unless the results thereof reveal a patent or latent defect caused by a deviation by Mikart from the Specifications or breach by Mikart of the limited warranties contained in Section 2.2 hereof (a
“Product Defect”). 
 (d) In the event that any Batch of any Product manufactured by Mikart pursuant to this Agreement is
subject to a recall, Transcept, at its expense, shall conduct the recall, except that Mikart shall reimburse Transcept for the costs thereof to the extent such recall results from Mikart’s non-compliance with the Specifications, the Quality
Agreement or Applicable Laws, or Mikart’s breach of its representations and warranties under Section 2.2 or Article 8. 
 (e) Each
party hereto shall promptly notify the other of any recall of any Product which has been directed by it or by any Regulatory Agency in the Territory for any reason whatsoever. Such notice shall identify the reason for the recall and all relevant
details thereof. 
 2.4 Packaging Materials. Mikart shall order from time to time, at Transcept’s request and expense,
labels and other bulk packaging materials required for the bulk packaging of the Products as described in the Specifications and Transcept’s written communications to Mikart (“Product Packaging”) in sufficient quantities to
permit the bulk packaging of the Products scheduled for delivery pursuant to Purchase Orders placed in accordance with Section 3.3 hereof. Mikart shall not be responsible for the content of any packaging, including labels and any other
packaging materials, to the extent that such packaging is consistent with the Specifications and such content shall be the sole responsibility of Transcept. 
 2.5 Changes to the Specifications. As between the parties, Transcept shall have the sole right to modify the Product Specifications. All modifications shall be in writing and shall be signed by an
authorized representative of Transcept and Mikart, and shall be effective for Purchase Orders for Product placed after the effective date of the changes. If the modifications result in a material change in Mikart’s manufacturing costs, the
parties shall agree upon an appropriate adjustment to the price of the Product under this Agreement. If the modifications result in a delay in delivery, the parties will negotiate a reasonable extension of the affected lead times, provided that
Mikart shall use diligent efforts to mitigate such delay. Notwithstanding 

  

 -6- 

 
anything to the contrary set forth in this Section 2.5, changes to material and component Specifications and/or procedures that are required to comply
with official or compendial revisions or directives of any Regulatory Agency will be made and implemented by Mikart on or before the published or stated effective date for such changes, and will require neither advance notice to nor approval by
Transcept; provided, however, that Mikart will notify Transcept in writing of any changes related to the Active Materials (as defined in Section 2.11 hereof), and Mikart will include all changes described in this Section 2.5 in the
documentation provided to Transcept for inclusion in the annual report for the Product. Should such changes require advance notice to or approval by any Regulatory Agency, Mikart shall also notify Transcept promptly in writing after identification
of such changes, and Mikart will provide support to Transcept in order to effect such changes by the published or stated effective date therefor. 
 2.6 Batch Records; Samples. Mikart shall maintain batch records sufficient to trace the history of each Batch, and representative samples from each Batch of Product manufactured hereunder, for record keeping, stability
testing, and other regulatory purposes, including as may be required by the Specifications or Applicable Laws. Such records and samples shall be maintained for a minimum of [***] after which time Mikart may make arrangements for the confidential
disposition of the same, unless Transcept provides a prior written request for longer retention of such records or samples. Alternatively, Transcept shall have the option of having such records and samples delivered to Transcept or its designee.
Upon the request of Transcept, Mikart shall provide Transcept reasonable access to and copies of such records and samples. 
 2.7
Records. Mikart shall maintain laboratory notebooks and all technical, scientific, and other manufacturing-related records in sufficient detail and (as appropriate, in good scientific manner) which shall reflect work done and results
achieved in the course of performing activities under this Agreement, including all data in the form required by Applicable Law. Such records shall be kept for a period of [***] after completion or termination of the activity or such longer period
as Applicable Laws may require. 
 2.8 Inspections. Upon reasonable prior written notice given by Transcept to Mikart, but not
more frequently than [***] during each [***] period following the Effective Date hereof, Mikart shall permit Transcept or its representatives to inspect and audit, during Mikart’s business hours, the performance of the activities hereunder
(including the Qualification Services), the facilities used, and documentation relevant to ensure Mikart’s ongoing GMP compliance, including those documents kept under Sections 2.6 and 2.7 above, in order to determine Mikart’s compliance
with Applicable Laws and this Agreement. In addition, Transcept shall be entitled to review Mikart’s standard operating procedures applicable to the Qualification Services during such audits. 
 2.9 [***] 

  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 [***] 
 2.10 Humidity Control System. 
 (a) Promptly following the Effective Date and before the [***] thereof, Mikart shall
purchase, install, qualify and maintain a Humidity Control System (which shall be owned by Mikart) in pharmaceutical manufacturing room [***] of the Facility (the “Blending Room”) to enable it to manufacture Products under
appropriate relative humidity conditions of [***]. Thereafter and during the Term, Mikart shall maintain and ensure the full function of such Humidity Control System for the Blending Room. Subject to Section 2.10(c) below, Mikart shall only use
the Blending Room for the manufacture of Product(s) for Transcept or its designees. 
 (b) In consideration for Mikart’s performance of
the activities and assumption of the obligations described in Section 2.10(a), Transcept shall pay to Mikart a fee of [***] as detailed in Exhibit F, payable as follows: (i) [***] payable by Transcept upon execution of the Agreement by
both parties; (ii) [***] payable by Transcept on or before the date that is [***] following the execution of this Agreement by both parties; (iii) [***] payable by Transcept on or before the date that is [***] following the execution of
this Agreement by both parties; (iv) [***] payable by Transcept on or before the date that is [***] following the execution of this Agreement by both parties; and (v) [***] payable by Transcept upon both (x) Mikart’s installation
and qualification of the Humidity Control System in the Blending Room and completion of the Qualification Services and (y) Transcept’s reasonable satisfaction that the Blending Room maintains the appropriate humidity and other conditions
for the manufacture of Product in accordance with the Specifications. 
 (c) If Mikart wishes to use the Blending Room containing the
Humidity Control System for other customers during the Term and such use is not reasonably likely to result in a Supply Failure (as defined in Section 6.4(a) below) or to otherwise interfere with Mikart’s obligations to Transcept
hereunder, and such use is to manufacture products for customers whose products require the use of the Humidity Control System, the parties will negotiate in good faith an arrangement in which Mikart reimburses Transcept for its use of such room in
the form of a credit or payment of [***] for each batch of third party product produced in such room, until Mikart has reimbursed to Transcept the mutually agreed-upon, estimated value of the Humidity Control System (taking into account the Humidity
Control System’s remaining useful life at the time and other relevant factors); provided, however, that no such reimbursement shall be required for the [***] of product [***] that Mikart makes for each of its customers. After Mikart has
reimbursed Transcept such estimated 

  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 
value of the Humidity Control System, Mikart shall be free to use the Blending Room containing such Humidity Control System for its other customers whose
products require the use of the Humidity Control System, provided that such use is not reasonably likely to result in a Supply Failure or to otherwise interfere with Mikart’s obligations to Transcept hereunder. For the avoidance of doubt, the
parties acknowledge and agree that Mikart shall be free to use the Blending Room, without any payment to Transcept, for any products that do not require the use of the Humidity Control System. 
 (d) In the event that Transcept’s primary supplier of Products fails (in Transcept’s reasonable judgment) to supply Product to Transcept and
thereafter Transcept provides to Mikart forecasts for Product above the Minimum Purchase Requirement (as defined in Section 3.5 below) and provides a written request to Mikart to upgrade an additional room at Mikart’s Facility with a
Humidity Control System, Mikart agrees to use its commercially reasonable efforts to upgrade such additional room as soon as possible and shall assume the obligations described in Section 2.10(a) above with respect to the installation,
qualification and maintenance of such Humidity Control System. The price payable by Transcept for such upgrade and use of such room shall be Mikart’s estimated cost to install such system, such cost to be mutually agreed upon by Mikart and
Transcept and to be paid as follows: (i) [***] of such cost shall be paid by Transcept to Mikart upon mutual agreement of such estimated cost by Mikart and Transcept, as described above; (ii) [***] of such cost shall be paid by Transcept
to Mikart on or before the date that is [***] following such mutual agreement; (iii) [***] of such cost shall be paid by Transcept Mikart on or before the date that is [***] following such mutual agreement; (iv) [***] of such cost
shall be paid by Transcept to Mikart on or before the date that is [***] following such mutual agreement; and (ii) the remaining [***] of such cost shall be paid by Transcept to Mikart upon both (x) Mikart’s installation and
qualification of the Humidity Control System and (y) Transcept’s reasonable satisfaction that such upgraded room maintains the appropriate humidity and other conditions for the manufacture of Product in accordance with the Specifications.
Such room shall only be used for Transcept’s Product(s), subject to Mikart’s ability to reimburse Transcept for the use of such room for its other customers whose products require the use of the Humidity Control System, under the same
terms described in Section 2.10(c) above. 
 2.11 Active Materials Supply and Use. 
 (a) Transcept or its designee shall supply to Mikart sufficient quantities of the Zolpidem Tartrate active ingredient (the “Active
Materials”) for Mikart to perform the Qualification Services and to manufacture and supply Products ordered by Transcept hereunder, such shipments of Active Materials to be made to Mikart DDP (Incoterms 2000). Transcept or its designee
shall supply the quantity of Active Materials necessary to meet Transcept’s forecasted requirements for the Products pursuant to Section 3.2 hereof, and mutually agreed upon by Mikart and Transcept. Upon shipment of each shipment Batch of
Product hereunder, Transcept shall receive a credit from Mikart for the value of the Active Materials contained in such Batch, such value to be based upon the purchase price paid by Transcept for such Active 

  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 
Materials (as evidenced by the invoices received by Transcept for such Active Materials), which shall be credited against amounts owed for Product hereunder.
As of the Effective Date, the purchase price paid by Transcept for Active Materials is [***]. Upon any expiration or termination of this Agreement, Mikart shall return to Transcept, at Transcept’s reasonable expense, any Active Materials that
have not been used in the manufacture of Products hereunder. 
 (b) Mikart shall use and store all Active Materials solely at the Facility
and solely as necessary to perform the Qualification Services and manufacture Product ordered hereunder, in each case in accordance with Transcept’s reasonable instructions, the Quality Agreement and Applicable Laws. 
 (c) Upon Mikart’s receipt of Active Materials, Mikart shall conduct a reasonable inspection and release testing of such Active Materials in
accordance with mutually agreed procedures. Mikart shall promptly conduct chemical identity testing for all Active Materials received at the Facility, as applicable. Further, Mikart shall conduct full release testing of all Active Materials received
at the Facility, as applicable, not later than [***], after the date of receipt in accordance with the procedures and using the analytical testing methodologies set forth in Exhibit D and the Quality Agreement. Mikart shall promptly (and in any
event within [***] following completion of applicable testing) notify Transcept in writing of any failure of the Active Materials to conform to the: specifications therefor, and any other problem it may identify with the Active Materials detected
during the inspection and testing process. Mikart shall ensure that the Active Materials do not become subject to any lien or other security interest. The parties acknowledge and agree that title to all Active Materials shall at all times belong to
and remain in Transcept. All Active Materials in Mikart’s possession shall be subject to disposition by Transcept upon expiration or termination of this Agreement, and in either such event, Mikart shall deliver the Active Materials to Transcept
or its designee, at Transcept’s expense. 
 (d) Commencing on the Effective Date, Mikart shall monitor on a calendar year basis the
inventory of the Active Materials held by Mikart and shall provide Transcept, within [***] following the last day of the applicable calendar year, with an inventory report of the Active Materials held by Mikart. In addition, within [***] after the
end of each Contract Year, Mikart shall provide to Transcept a reconciliation report evaluating on hand Active Materials against Active Materials received by Mikart less withdrawals for analysis, retention samples, other samples (FDA/DEA), Active
Materials for R&D use and Active Materials needed to meet Batch requirements. Such evaluation will be done separately for each lot of Active Materials received by Mikart. Once a lot is depleted, the non-recoverable Active Materials are
calculated and evaluated against Specifications. Transcept acknowledges and agrees that Mikart’s reconciliation specifications for controlled substances are [***] of the amount received. 
 2.12 Buffered Soda Supply. Without limiting any of Mikart’s obligations under the Buffered Soda Supply and Sublicense Agreement
between the parties dated January 22, 2008 and subject to Mikart’s fulfillment of its obligations thereunder, it is understood that Transcept (or its designee) shall supply Mikart with the quantities of buffered soda reasonably necessary
for Mikart’s manufacture of Products hereunder. 
  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 ARTICLE 3 
 ORDERS AND SALES 
 3.1 Product Supply. Subject to the terms and conditions of
this Agreement, Mikart shall supply to Transcept all quantities of the Products ordered by Transcept or its designee(s) under this Agreement pursuant to Purchase Orders placed by Transcept or such designee(s) in accordance with Section 3.3
below. Transcept agrees that, in the event that it delegates one or more of its responsibilities hereunder to a third party pursuant to this Section 3.1 or any similar provision hereunder involving a designee of Transcept, unless otherwise
agreed to in writing by the parties, Transcept shall remain fully responsible for the performance of such responsibilities. 
 3.2
Forecasts. Commencing upon full FDA qualification and approval of Mikart and the Facility as a commercial manufacturer of Products and thereafter throughout the Term, at least [***] prior to the commencement of each calendar quarter,
Transcept shall provide Mikart with a non-binding, rolling twelve (12) month forecast of its requirements for each Product. 
 3.3
Purchase Orders. Transcept shall place its orders for each Product no later than [***] prior to the requested delivery date using separately numbered, written purchase orders (each, a “Purchase Order”). Each Purchase
Order must be for [***] All packaging sizes shall be a size mutually agreed to by the parties. Purchase Orders shall be transmitted to Mikart via U.S. mail, private courier, or facsimile transmission. Each Purchase Order shall include complete and
accurate information with respect to quantity, packaging size, shipment dates, shipment method and delivery destination. Mikart and Transcept shall work together in good faith to schedule orders and deliveries of each Product in a manner which is
reasonably acceptable to both parties, and Mikart shall promptly notify Transcept upon its receipt of any Purchase Order containing delivery dates which need to be rescheduled. Notwithstanding the foregoing, Mikart shall deliver all quantities of
Product ordered under each Purchaser Order within [***] of the date of Mikart’s receipt of such Purchaser Order unless otherwise agreed to by the Parties. ANY ADDITIONAL OR INCONSISTENT TERMS OR CONDITIONS OF ANY PURCHASE ORDER, ACKNOWLEDGMENT
OR SIMILAR STANDARDIZED FORM GIVEN OR RECEIVED PURSUANT TO THIS AGREEMENT WILL HAVE NO EFFECT AND SUCH TERMS AND CONDITIONS ARE HEREBY EXCLUDED. 
 3.4 Packaging. Product shall be shipped packaged in containers in accordance with the applicable Specifications or as otherwise agreed by the Parties in writing. Each such container will be individually labeled with a
description of its contents, including the manufacturer lot number, quantity of Product, date of manufacture and expiration date. 
  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 3.5 Minimum Purchase. Commencing on the first Contract Year following full FDA
qualification and approval of Mikart and the Facility as a commercial manufacturer of Products and during each Contract Year of the Term (including any Renewal terms thereof) thereafter, Transcept shall purchase from Mikart, on a take-or-pay basis,
a minimum total of three (3) Batches of Product (the “Minimum Purchase Requirement”). 
 ARTICLE 4 
 PRICES AND TERMS OF PAYMENT 
 4.1 Price. 
 (a) The price to be paid by Transcept for the Qualification Services shall be as set forth in the
Qualification Services Payment Schedule contained in Exhibit C. 
 (b) The price to be paid by Transcept for each Product to Mikart
during the first Contract Year shall be as set forth on Exhibit B. 
 4.2 Price Adjustments. Mikart shall have the right
to increase the price charged for each Product pursuant to Section 4.1(b) hereof one time at the end of each Contract Year for the following Contract Year to reflect any percentage increase [***] at that time (“Total Product
Costs”); provided, however, that (i) in the event Mikart increases any such price in any Contract Year, and (ii) after the effective date thereof but before the end of such Contract Year Mikart’s cost of raw materials or
components for manufacturing such Product (“Materials Cost”) increases by more than [***], Mikart shall have the right, by providing at least [***] prior written notice to Transcept, to again increase the price charged for such Product in
such Contract Year by a percentage amount equal to the portion of such percentage increase in Materials Cost that is in excess of [***]; provided further, that (a) Mikart shall provide Transcept with documented evidence of any such
Material Cost increases and shall use its commercially reasonable efforts to prevent any such cost increases from occurring, and (b) the price of Product shall not be increased to reflect increases in Mikart’s Total Product Costs to the
extent such increases have already been incorporated into the Product price as Materials Cost increases. It is further understood that the price for Product hereunder includes the purchase price paid by Transcept to third parties for those Active
Materials that are actually included in the composition of such Product. Accordingly, in the event of an increase or decrease in the price of such Active Materials, as evidenced by the written invoices received by Transcept for such purchased Active
Materials, the Price for the applicable Product shall be adjusted accordingly. As of the Effective Date, the price paid by Transcept for Active Materials is [***]. 
 4.3 Payment Terms. Mikart shall invoice Transcept for the Qualification Services in accordance with the Qualification Services Payment Schedule and for the price of the Products sold at the time of
shipment. Transcept shall pay such invoices for the Qualification Services within thirty (30) days after its receipt thereof and shall pay such invoices for Product within thirty (30) days after its receipt thereof. All invoices for
Qualification Services shall be sent to 

  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 
the Transcept address specified in this Agreement and shall contain a reasonable itemized description of the services performed and the associated charges.
All invoices for Product will be sent to the address specified in the applicable Purchase Order, and each invoice will state the aggregate and unit price for Product in a given shipment, plus any costs incident to the purchase or shipment initially
paid by Mikart but to be borne by Transcept under this Agreement. 
 4.4 Taxes. If any tax is due with respect to the sale of
Product under this Agreement, Transcept will have the sole responsibility to pay that tax and Mikart will have the sole responsibility to collect that tax from Transcept and remit that tax to the applicable authorities. In addition, any charges for
insurance or other costs imposed by third parties incident to the purchase or shipment of Product hereunder shall be the sole responsibility of, and shall be paid by, Transcept. For clarity, and without limiting Transcept’s obligation in the
foregoing sentence for costs or charges arising from the purchase or shipment of Product hereunder, it is understood that any costs or charges arising from the manufacture or storage of Product by Mikart shall be borne by Mikart. 
 4.5 Currency. All amounts payable by Transcept hereunder will be made in United States Dollars. Unless otherwise set forth, all amounts
specified in any Purchase Order shall be deemed specified in United States Dollars. 
 ARTICLE 5 
 SHIPPING DEFECTS, RETURNS 
 5.1 Shipping. Mikart will ship all Products ordered hereunder to Transcept f.o.b. (UCC) Mikart’s Facility, at which point the risk of loss for such Product will pass to Transcept. Mikart shall ship Products to the
location designated by Transcept on such Product’s respective Purchase Order. The parties agree that the method and route of shipment are at Mikart’s discretion unless Transcept furnishes Mikart explicit instructions with such
Product’s respective Purchase Order; provided that, such location is authorized to receive and store such Product under Applicable Law. Transcept agrees to pay all costs of shipping and any costs of freight insurance obtained by
Mikart at the request of Transcept. Mikart agrees to provide reasonable support to assist Transcept in pursuing any claims it may have against carriers relating to the shipment of the Products. All Product delivered hereunder shall be suitably
packed for shipment by Mikart in accordance with good commercial practice with respect to protection of such Product during transportation and marked for shipment to Transcept’s specified receiving point. 
 5.2 Notification of Defects. Acceptance by Transcept of Product delivered by Mikart shall be subject to inspection and applicable testing
by Transcept or its designee. Transcept shall notify Mikart in writing as soon as practicable, but in any event (i) within [***] after delivery to Transcept of any non-conforming Product containing obvious defects discoverable without affecting
the integrity of such Product’s packaging and (ii) within [***] of the earlier of discovery by Transcept or receipt of notification by Transcept from a third party of any latent defects. Transcept shall be responsible for its costs to
inspect such Product, unless such inspection reveals a Product Defect (as defined in Section 2.3(c)). If upon inspection or testing 

  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 
of Product in accordance with this Section 5.2, Transcept or its designee discovers a Product Defect, Transcept or such designee may reject such
Product, which rejection will be accomplished by giving written notice to Mikart. Such written notice shall include specific reasons and sufficient details regarding why Transcept, or its designee, considers such Product to be defective. 

5.3 Returns. At Mikart’s expense, Mikart shall accept for return and replacement any Product containing a Product Defect for which
proper notice has been given in accordance with Section 5.2, provided that Transcept returns such rejected Product in accordance with Mikart’s reasonable instructions. All returns of Product with obvious defects shall be in the original
manufactured condition, to the extent the preservation of such condition would be practicable given the nature of the testing or inspection reasonably necessary to confirm the existence of such defects. Mikart will pay reasonable return freight and
shipping charges for returned Product containing a Product Defect, and shall assume the risk of loss in transit associated with such returns. Mikart shall use its commercially reasonable efforts to replace rejected Product within the shortest
possible time after Mikart’s receipt of notice thereof. In the event all or part of a shipment of Product is rejected prior to Transcept’s payment therefor, Transcept may withhold such payment until receipt of replacement Products that
conform with the Specifications therefor and to the warranties given by Mikart in Section 2.2 and Article 8. 
 5.4 Disputed
Returns. The parties shall use their reasonable efforts to resolve any dispute that may arise pursuant to Sections 5.2 and 5.3. If the parties fail to agree, within [***] of Transcept providing notice of rejection, whether any delivery of
the Product supplied by Mikart to Transcept contains a Product Defect, the dispute shall be determined by an independent laboratory/expert mutually selected by the parties and the decision of such independent laboratory/expert shall be final and
binding on the parties with respect to whether the Product in question contains a Product Defect. In the event that the independent laboratory/expert decides that the Product in question does not contain a Product Defect, such Product shall be
deemed accepted by Transcept. In the event that the independent laboratory/expert decides that the Product in question contains a Product Defect, Mikart shall use its commercially reasonable efforts to replace such Product within the shortest
possible time after Mikart’s receipt of notice regarding the independent laboratory/expert’s decision. For purposes of clarity, only disputes between the parties regarding conformance of the Product as expressly described in this
Section 5.4 above shall be resolved by an independent laboratory/expert, and all other disputes between the parties shall be governed by the provisions of Article 12 below. The independent laboratory/expert’s fees and the prevailing
party’s reasonable out-of-pocket costs incurred in connection with the independent laboratory/expert’s decision shall be borne by the party against whom the independent laboratory/expert’s decision is given. 
 ARTICLE 6 
 TERM AND TERMINATION;
SUPPLY FAILURE; FORCE MAJEURE 
 6.1 Term. Unless earlier
terminated in accordance with the provisions hereof, the initial term (the “Initial Term”) of this Agreement shall commence on the Effective Date and all thereafter continue until the tenth (10th) anniversary of the Commencement Date. Following the Initial Term, this Agreement shall automatically renew for additional, successive 

  

 -14- 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 
three (3) year renewal terms (each, a “Renewal Term” and each consecutive [***] therein a Contract Year) unless either party delivers to the
other party a written notice of it selection not to renew at least eighteen (18) months, prior to the end of the Initial Term or the then current Renewal Term, as the case may be. The “Term” of this Agreement shall be the period
beginning on the Effective Date hereof and ending on the last day of the final Contract Year. 
 6.2 Termination. Either party
may terminate this Agreement on written notice to the other party, effective immediately if: 
 (a) the other party commits a material breach
of any of its obligations hereunder which is not cured within [***] of written notice from the other party specifying the breach; or 
 (b)
the other party is dissolved or liquidated, files or has filed against it a petition under any bankruptcy or insolvency law and such petition isn’t withdrawn or dismissed within [***] after filing, makes an assignment to the benefit of its
creditors, or has a receiver appointed for all or substantially all of its property and such property is not released within [***] after it is seized. 
 In
addition to the termination rights granted in parts (a) and (b) of this Section 6.2 above, Transcept may terminate this Agreement immediately upon written notice to Mikart: (i) in the event that Mikart and/or the Facility do not
to receive full FDA qualification and approval as a commercial manufacturer of Products on or prior to [***]: or (ii) in the event of a second occurrence of a Supply Failure (as defined in Section 6.4 below). Such rights of termination in
this Section 6.2 and in Section 6.3 below shall be in addition to any other remedy the non-defaulting party may have at law, in equity or under this Agreement due to the other party’s breach of is obligations hereunder. 
 6.3 Post-Termination. 
 (a)
Upon termination of this Agreement by Mikart pursuant to Section 6.2 Transcept shall purchase from Mikart (at the most recent applicable price hereunder therefor) Mikart’s remaining inventory of each Product, such amount not to exceed the
forecasted requirements for such Product, pursuant to Section 3.2 hereof, for the [***] immediately following such termination (for clarity, provided that such Product must conform to the Specifications and all Applicable Laws and subject to
Transcept’s right to reject such Products pursuant to Section 5.2). In the event of a termination of this Agreement by Transcept pursuant to Section 6.2, Transcept shall not be responsible for any amounts payable by Transcept to
Mikart under Section 2.10 that have not become due as of the date of such termination. In the event of a termination of this Agreement by Mikart pursuant to Section 6.2(a) or (b), Transcept shall immediately pay to Mikart any unpaid
amounts related to Mikart’s installation of the Humidity Control System(s) pursuant to Sections 2.10(b) and 2.10(d) hereof. 
 (b) Upon
any termination or expiration of this Agreement, Mikart shall reasonably cooperate with Transcept and assist in the transfer to Transcept of all legal and 

  

 -15- 

 
technical documents concerning Products, including copies of documents such as master batch records, validation reports, stability reports and relevant
manufacturer authorizations, and existing retention samples, and all such other documents and materials as may be reasonably necessary or useful for Transcept to source Products from other qualified third parties. Mikart shall retain and maintain
all original documents and retention samples as necessary to comply with Applicable Law. 
 (c) Termination or expiration of this Agreement
shall not relieve a party from any liability that, at the time of such termination or expiration, has already accrued to the other party. Upon any expiration or termination of this Agreement: Mikart shall, as promptly as practicable (i) cease
all work on the Qualification Services, and (ii) turn over to Transcept all deliverables, Transcept Confidential Information and Product IP (whether in written, electronic or other tangible form, including all embodiments thereof) which are
then in Mikart’s possession or control, except that Mikart may retain any documentation required to comply with Applicable Law. 
 (d)
The provisions of Articles 1, 5 and 7-14 and Sections 2.2, 2.3(d), 2.3(e), 2.6-2.8, 2.11(b)-(f), 4.3-4.5 and 6.3 of this Agreement shall survive the termination or expiration of this Agreement for any reason. 
 6.4 Supply Failure. 
 (a)
Should Mikart not be able to supply at least [***] of the quantities of Product ordered by Transcept pursuant to Purchase Orders in accordance with Section 3.3 for any ([***] period within [***] of the dates specified in such Purchase Orders in
compliance with this Agreement for any reason (including due to a force majeure event), then such event shall be deemed a “Supply Failure.” Notwithstanding the foregoing, such event shall not be deemed a Supply Failure if such event
is caused by a force majeure event (as described in Section 6.5), provided that (i) Mikart notifies Transcept immediately upon the occurrence of such force majeure event, and (ii) such force majeure event lasts no longer than [***].

 (b) In the event of a Supply Failure, Transcept’s obligation under Section 3.5 to purchase the Minimum Purchase Requirement of
Product from Mikart shall terminate, subject to the terms of Section 6.4(c) below. 
 (c) In the event that a Supply Failure occurs and
such Supply Failure is the first Supply Failure to occur during the Term of this Agreement, at the written request of Mikart, if Mikart has taken the necessary steps to ensure that a Supply Failure will not re-occur, the Parties shall discuss in
good faith reinstating Transcept’s obligation under Section 3.5 to purchase the Minimum Purchase Requirement from Mikart. If the Parties mutually agree in good faith that Mikart has remedied the Supply Failure and has taken all steps
necessary to ensure that a Supply Failure will not re-occur, Transcept’s obligation under Section 3.5 to purchase the Minimum Purchase Commitment from Mikart shall be reinstated, effective [***] following the date of such agreement (such
effective date of reinstatement, the “Minimum Purchase Requirement Re-instatement Date”); provided, however, that, (i) for the Contract Year 

  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 
that Transcept’s obligation to purchase the Minimum Purchase Requirement is re-instated, the Minimum Purchase Requirement shall be pro-rated for the
time remaining in such Contract Year following the Minimum Purchase Requirement Re-instatement Date; and (ii) Transcept’s obligation to purchase the Minimum Purchase Requirement under Section 3.5 shall be subject to, and modified to
the extent necessary to comply with, any obligations incurred by Transcept between the date of the Supply Failure and the date that the Parties agreed that the Minimum Purchase Requirement should be re-instated. 
 (d) This Section 6.4 shall in no way limit any of Transcept’s legal, equitable or other remedies for Mikart’s breach of its obligations to
supply Product to Transcept under Article 3. 
 6.5 Force Majeure. The failure of either of the parties hereto to perform any
obligation under this Agreement solely by reason of acts of God, acts of government, riots, wars, strikes, accidents in transportation or other causes beyond its control shall not be deemed to be a breach of this Agreement; provided,
however, that the party so prevented from complying herewith shall continue to take all actions within its power, including payment of outstanding invoices, to comply as fully as possible herewith; provided, further, that no
event of force majeure shall in any way affect the parties’ termination rights in Section 6.2 hereof. Availability or allocation of raw materials or labor that is within the reasonable control of a party shall not constitute a force
majeure event. Any party desiring to invoke the protection of force majeure hereunder shall promptly notify the other party of such desire and shall use reasonable efforts to resume performance of its obligations. 
 ARTICLE 7 
 INDEMNIFICATION;
INSURANCE 
 7.1 Indemnification by Mikart. Mikart shall indemnify and agrees to defend and hold Transcept, its
directors, officers, employees, agents, successors and assigns harmless from and against any losses, claims, damages, liabilities, costs and expenses (including, without limitation, attorneys’ fees and court costs) (collectively,
“Losses”) incurred by Transcept arising from any claim, complaint, suit, proceeding, or cause of action brought against any of them by a third party (each, a “Claim”) resulting from breach of this Agreement by
Mikart (including the untruth or inaccuracy of any of its representations or warranties herein) or Mikart’s gross negligence or willful misconduct, in each case subject to the requirements set forth in Section 7.3. Notwithstanding the
foregoing, Mikart shall have no obligations under this Section 7.1 for any Losses to the extent resulting from a breach of this Agreement by Transcept (including the untruth or inaccuracy of any of its representations or warranties herein), any
failure by Transcept to provide adequate instructions or warnings regarding the proper use of any Product to any user thereof, or Transcept’s gross negligence or willful misconduct. 
 7.2 Indemnification by Transcept. Transcept shall indemnify and agrees to defend and hold Mikart, its directors, officers, employees,
agents, successors and assigns harmless from and against any Losses incurred by Mikart arising from any Claim resulting from breach of this Agreement by Transcept (including the untruth or inaccuracy of any of its representations or warranties
herein), the sale or distribution of any Product by Transcept, any failure by Transcept 

  

 -17- 

 
to provide adequate instructions or warnings regarding the proper use of any Product to any user thereof, or Transcept’s gross negligence or willful
misconduct, in each case subject to the requirements set forth in Section 7.3 below. Notwithstanding the foregoing, Transcept shall have no obligations under this Section 7.2 for any Losses to the extent resulting from a breach of this
Agreement by Mikart (including the untruth or inaccuracy of any of its representations or warranties herein) or Mikart’s gross negligence or willful misconduct. 
 7.3 Indemnification Procedure. A party that intends to claim indemnification (“Indemnitee”) under this Article 7 shall promptly notify the indemnifying party
(“Indemnitor”) in writing of any Claim included within the indemnification described in this Article 7 with respect to which the Indemnitee intends to claim such indemnification, and the Indemnitor shall have sole control of the
defense and settlement of the Claim, provided that the Indemnitor shall not enter into a defense or settlement that admits the fault of the Indemnitee without the Indemnitee’s prior written consent, such consent not to be unreasonably withheld.
The Indemnitee shall have the right to participate, at its own expense, with counsel of its own choosing in the defense or settlement of the Claim. The indemnification obligations under this Article 7 shall not apply to amounts paid in settlement of
any Claim if such settlement is effected without the consent of the Indemnitor, such consent not to be unreasonably withheld. The Indemnitee and its employees, at the Indemnitor’s request and expense, shall provide full information and
reasonable assistance to Indemnitor and its legal representatives with respect to Claims. 
 7.4 Insurance. On or prior to the
Commencement Date, each party shall maintain commercial general liability insurance, including blanket contractual liability insurance covering the obligations of that party under this Agreement through the term of this Agreement and for a period of
three (3) years thereafter, which insurance shall afford limits of not less than (i) [***] for each occurrence for personal injury or property damage liability; and (ii) [***] in the aggregate per annum with respect to product and
completed operations liability. If requested each party will provide the other with a certificate of insurance evidencing the above and showing the name of the issuing company, the policy number, the effective date, the expiration date and the
limits of liability. The insurance certificate shall further provide for a minimum of [***]’ written notice to the insured of a cancellation of, or material change in, the insurance. If a party is unable to maintain the insurance policies
required under this Agreement through no fault on the part of such party, then such party shall forthwith notify the other party in writing and the parties shall in good faith negotiate appropriate amendments to the insurance provision of this
Agreement in order to provide adequate assurances. 
 ARTICLE 8 
 WARRANTIES AND REPRESENTATIONS OF THE PARTIES 
 8.1 Additional
Representations and Warranties of Mikart. Mikart hereby additionally represents and warrants to Transcept the following: 
 (a) Mikart
is a corporation duly organized and existing in good standing under the laws of the State of Georgia; 
  

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 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 (b) There are no material adverse claims pending or, to the best of Mikart’s knowledge, threatened
against Mikart by any entity with respect to the Products; and 
 (c) Mikart has full power to enter into this Agreement and to grant to
Transcept the rights granted to it under this Agreement; has obtained all necessary corporate approvals to enter into and execute this Agreement; and is neither a party to nor otherwise bound by or subject to any agreement, understanding or other
undertaking or instrument which prohibits or prevents it or Transcept from performing its obligations under this Agreement or under which such performance would constitute a breach, default or other violation. 
 (d) To its knowledge, Mikart, by entering into and performing this Agreement, will not infringe (nor cause Transcept to infringe) the trademark,
copyright, patent or other intellectual property rights of any third party. 
 8.2 Additional Representations and Warranties of
Transcept. Transcept hereby additionally represents and warrants to Mikart the following: 
 (a) Transcept is a corporation duly
organized and existing under the laws of the State of Delaware; 
 (b) Transcept has full power to enter into this Agreement and to grant to
Transcept the rights granted to it under this Agreement; has obtained all necessary corporate approvals to enter into and execute this Agreement; and is neither a party to nor otherwise bound by or subject to any agreement, understanding or other
undertaking or instrument which prohibits or prevents it or Mikart from performing its obligations under this Agreement or under which such performance would constitute a breach, default or other violation; and 
 (c) To its knowledge, Transcept, by entering into and performing this Agreement, will not infringe (nor cause Mikart to infringe) the trademark,
copyright, patent or other intellectual property rights of any third party. 
 ARTICLE 9 
 CONFIDENTIALITY 
 9.1
Protection of Confidential Information. Each party will hold the Confidential Information of the other party in complete confidence and will not without the prior written consent of the other party, or as expressly provided for in this
Agreement, use or disclose them in whole or in part to any third party during the term of this Agreement and for a period ending seven (7) years following any expiration or termination of this Agreement. Each party will be entitled to disclose
any such Confidential Information to such of its affiliates, professional advisers, directors, managers, officers and employees who are directly concerned with this Agreement and its implementation and whose knowledge of such information is
necessary for these purposes. Each party will use its reasonable efforts to ensure that each individual to whom such a disclosure is made adheres to the terms of this undertaking as if he or she were a party hereto. 
  

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 9.2 Other Permitted Disclosures of Confidential Information. 
 (a) Each party may disclose Confidential Information to the extent such disclosure is required by law, regulations, stock exchange requirements, or court
order; provided, however, that the disclosing party shall, as soon as is commercially reasonable, give the other party prior notice of such required disclosure and reasonably cooperate with such other party in order that such other
party may seek a protective order or relief to prevent or limit the Confidential Information required to be disclosed; provided, further, that the disclosing party shall only disclose that portion of the Confidential Information that
such party is required to disclose. Nothing contained in this Article 9 of this Agreement shall prevent either party from disclosing Confidential Information to Regulatory Agencies as reasonably necessary for the approval and/or commercialization of
Products. 
 (b) Notwithstanding anything to the contrary in this Agreement, each party may disclose the terms of this Agreement (a) to
advisors, actual or potential investors, acquisition partners, licensees, and others on a need to know basis under circumstances that reasonably ensure the confidentiality thereof, or (b) as required by securities or other applicable laws or
regulations or stock exchange rules. In the event that a party makes a disclosure of the terms of this Agreement deemed necessary under applicable federal or state securities laws or any rule or regulation of a nationally recognized securities
exchange, the party shall use good faith efforts to obtain confidential treatment for the disclosure to the extent available. The party making such a disclosure shall provide the other party with reasonable advance written notice of its intent to
make such a disclosure and shall provide the other party the opportunity to comment on any confidential treatment requested prior to the submission. 
 ARTICLE 10 
 REGULATORY MATTERS 
 10.1 Regulatory Actions. Mikart shall permit the FDA and other Regulatory Agencies to conduct inspections of the Facility as they may request, including pre-approval inspections, and shall cooperate with
such Regulatory Agencies with respect to the inspections and any related matters, in each case which is related to the Product and activities conducted by Mikart hereunder. Mikart shall give Transcept prior notice, to the extent practicable, of any
such inspections, and keep Transcept informed about the results and conclusions of each regulatory inspection, including actions taken by Mikart to remedy conditions cited in the inspections. In addition, Mikart shall permit Transcept or its
representative to be present at such inspections, if requested by Mikart and necessary in support of the inspection. Mikart will provide Transcept with copies of any written inspection reports issued by the regulatory agency and all correspondence
between Mikart and the regulatory agency, including, but not limited to, FDA Form 483, Notice of Observation, and all related correspondence, in each case relating to the Product, activities performed by Mikart hereunder or general manufacturing
concerns (i.e., facility compliance or the like). Mikart shall provide redacted copies of such documents to Transcept in the event Mikart reasonably determines that there are confidentiality concerns with respect to such documents, provided that
Mikart shall not redact any information that would 

  

 -20- 

 
reasonably be expected to affect the regulatory status of the Product or Mikart’s manufacture thereof. Similarly, Mikart agrees to promptly notify and
provide Transcept copies of any request, directive or other communication of the FDA or other Regulatory Agency relating to the Product or activities conducted by Mikart hereunder, and to cooperate with Transcept in responding to such requests,
directives and communications. 
 10.2 Information. Mikart shall promptly provide Transcept as requested, at no additional
charge, with all available information in Mikart’s control necessary or useful for Transcept to apply for, obtain, and maintain regulatory approvals for the Product in any country, including without limitation information relating to the
facilities, or the process, methodology, raw materials and intermediates used in the manufacture, processing, or packaging of the Product and all information required to be submitted in the CMC section of an IND or a NDA or other regulatory filings,
or required or requested to be provided to any Regulatory Agency. In addition, Mikart shall cooperate with Transcept with respect to all reporting obligations relevant to the Product under Applicable Laws. Transcept shall provide Mikart with a copy
of relevant sections of the CMC section of an IND or a NDA or other regulatory filing (as related to chemistry, manufacturing and/or labeling) to the extent required for Mikart’s manufacture of the Product and shall also provide Mikart with
future updates thereof on an ongoing basis to the extent such updates are required for Mikart’s manufacture of the Product, in each case during the Term. Transcept further agrees to promptly notify Mikart of, and to provide Mikart with copies
of the relevant sections of any request, directive or other communication from the FDA or other Regulatory Agency having a material effect on any activities performed by Mikart hereunder. 
 ARTICLE 11 
 INTELLECTUAL PROPERTY 
 11.1 Product IP and Non-Product IP. All inventions (whether or not patentable), ideas, improvements, discoveries, modifications, processes,
technology, materials, know-how, data and information of any kind or description conceived, generated, made, or reduced to practice by Mikart, either alone or jointly with others, in connection with the performance of this Agreement (including the
performance of the Qualification Services) and specific to the Product, including all intellectual property rights therein (collectively, the “Product IP”) shall be the sole and exclusive property of Transcept. All inventions
(whether or not patentable), ideas, improvements, discoveries, modifications, processes, technology, materials, know-how, data and information of any kind or description conceived, generated, made, or reduced to practice by Mikart, either alone or
jointly with others (excluding Transcept), in connection with the performance of this Agreement (including the performance of the Qualification Services) and not specific to the Product, including all intellectual property rights therein
(collectively, the “Non-Product IP”) shall be the sole and exclusive property of Mikart. Mikart hereby assigns, and agrees to assign to Transcept all of Mikart’s right, title and interest in and to the Product IP and to execute
all applications, assignments or other instruments reasonably requested by Transcept, in order for Transcept to establish Transcept’s ownership of the Product IP and to obtain whatever protection for the Product IP. Mikart further agrees to
reasonably cooperate with Transcept in the process of securing and enforcing Transcept’s rights to the Product IP at Transcept’s request, and Transcept shall compensate Mikart for Mikart’s reasonable expenses incurred as a result
thereof. Except as expressly set forth in Section 11.2 hereof, Transcept shall 

  

 -21- 

 
not assert any claim to, or interest in, any Non-Product IP. Transcept agrees to reasonably cooperate with Mikart in the process of securing and enforcing
Mikart’s rights to the Non-Product IP at Mikart’s request, and Mikart shall compensate Transcept for Transcept’s reasonable expenses incurred as a result thereof. 
 11.2 Licenses. Transcept hereby grants to Mikart an irrevocable, perpetual, non exclusive, worldwide, royalty-free license, with the right
to grant and authorize sublicenses, to the Product IP for the purpose of performing Mikart’s obligations hereunder and for use by Mikart in manufacturing any other products that do not compete with any of Transcept’s Products. Mikart
hereby grants to Transcept an irrevocable, perpetual, non-exclusive, worldwide, royalty-free license, with the right to grant and authorize sublicenses, to the Non-Product IP for the purpose of making, using, selling, offering for sale, importing
and otherwise exploiting the Products. 
 11.3 No Conflicting Rights. With respect to (a) any Product IP assigned to
Transcept under this Article 11, and (b) any process for formulating finishing, manufacturing, analyzing, testing, validating or otherwise relating to the Product (collectively, “Delivered Technology”). Mikart will not, to its
actual knowledge, incorporate or use therein any invention, discovery, process, technology or information that is covered in whole or in part by (i) any patent application or issued patent that is owned or controlled by Mikart, but not assigned
to Transcept pursuant to this Agreement (“Mikart Background Patent Rights”), or (ii) any patent or patent application of a third party; except in each case, as specifically discussed with and approved in writing by Transcept.
In the event any Delivered Technology incorporates or requires the use of Mikart Background Patent Rights, Mikart hereby grants Transcept an irrevocable, perpetual, non exclusive, worldwide, royalty-free license, with the right to grant and
authorize sublicenses, to practice such Mikart Background Patent Rights for the purpose of making, using, selling, offering for sale, importing and otherwise exploiting the Products and/or Delivered Technology. 
 ARTICLE 12 
 ARBITRATION OF
DISPUTES 
 All disputes arising out of or in connection with the interpretation, application or enforcement of this Agreement shall
be settled by final and binding arbitration. Such arbitration shall be conducted pursuant to the commercial arbitration rules of the Judicial Arbitration and Mediation Services (JAMS) in effect at the time the arbitration is commenced by one
(1) arbitrator appointed in accordance with such rules. The location of such arbitration shall be determined as follows: in the event that such arbitration is filed for by Transcept, such arbitration shall be conducted in Atlanta, Georgia; and
in the event that such arbitration is filed for by Mikart, such arbitration shall be conducted in San Francisco, California. The decision of the arbitrator, which may include interest, shall be final and binding on the parties hereto and may be
entered and enforced in any court of competent jurisdiction by any party, and the arbitrator may grant injunctive or other relief in such dispute or controversy. The arbitration shall be pursued and brought to conclusion as rapidly as possible. The
Parties agree that, any provision of applicable law notwithstanding, they will not request and the arbitrator shall have no authority to award, punitive or exemplary damages against either Party. The costs of the arbitration, including
administrative and arbitrator’s fees, shall be shared equally by the Parties. Each Party 

  

 -22- 

 
shall bear the cost of its own attorneys’ fees and expert witness fees. Nothing in this Article 12 shall preclude either Party from seeking interim or
provisional relief in the form of a temporary restraining order, preliminary injunction, or other interim relief concerning a dispute prior to or during an arbitration pursuant to this Article 12 necessary to protect the interests of such Party.

 ARTICLE 13 
 NOTICES 
 13.1 Delivery. All notices, consents, requests and other communications hereunder shall be in
writing and shall be sent by hand delivery, by certified or registered mail (return-receipt requested), or by a recognized national overnight courier service as set forth below: 
  

			
	If to Mikart:	  	 Mikart, Inc.
 1750 Chattahoochee Avenue
 Atlanta, Georgia 30318
 Attention: Mr. Miguel I. Arteche, Chairman & CEO

 Fax No.: 404-350-0432

		
	If to Transcept:	  	 Transcept Pharmaceuticals, Inc.
 1003 W. Cutting
Blvd., Suite 110
 Pt. Richmond, CA 94804
 Attention: Mr. Glenn A.
Oclassen Sr., CEO
 Fax No.: 510-215-3535

 13.2 Effective Time. Notices delivered pursuant hereto shall be deemed given:
(i) at the time delivered, if personally delivered; (ii) at the time received, if mailed; and (iii) one (1) business day after timely delivery to the courier, if by overnight courier service. 
 13.3 Changes. Either party hereto may change the address to which notice is to be sent by written notice to the other party in accordance
with the provisions of this Article 13. 
 ARTICLE 14 
 MISCELLANEOUS 
 14.1 Severability; Non-waiver. If any provision of this
Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired, and the parties shall use their best efforts to substitute a valid, legal
and enforceable provision, which, insofar as practical, implements the purpose of this Agreement. Any waiver of the terms and conditions hereof must be explicitly in writing. The waiver by either of the parties of any breach of any provision hereof
by the other shall not be construed to be a waiver of any succeeding breach of such provision or a waiver of the provision itself. 
 14.2
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument. 
  

 -23- 

 14.3 Governing Law. This Agreement shall be governed by, and any matter or dispute arising
out of this Agreement shall be determined by, the laws of the State of Delaware, without reference to conflict of laws principles and excluding the 1980 U.N. Convention on Contracts for the International Sale of Goods. 
 14.4 Headings; Gender. “Article,” “Section” and other headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Agreement. All personal pronouns used in this Agreement shall include the other genders, whether used in the masculine, feminine or neuter gender, and the singular shall
include the plural and vice versa, whenever and as often as may be appropriate. 
 14.5 Entire Agreement. This Agreement,
together with the Exhibits hereto, represents the entire agreement of the parties with respect to its subject matter. Any and all prior discussions or agreements with respect hereto are merged into and superseded by the terms of this Agreement,
including the terms of that certain Confidentiality and Non-Disclosure Agreement between the parties dated October 25, 2006. Transcept expressly acknowledges and agrees that its exclusive right to purchase the Products from Mikart and to market
and sell the Products in the Territory, each as set forth herein, shall be governed solely by the terms of this Agreement. This Agreement may be modified or amended only in writing signed by both parties which expressly refers to this Agreement and
states an intention to modify or amend it. No such amendment or modification shall be effected by use of any Purchase Order, acknowledgment, invoice or other form of either party and in the event of conflict between the terms of this Agreement and
any such form, the terms of this Agreement shall control. In the event of a conflict between any provision contained herein and the Quality Agreement or any other Exhibit to this Agreement, the parties hereby acknowledge and agree that the
provisions of this Agreement shall control. 
 14.6 Independent Contractors. The relationship of Transcept and Mikart
established by this Agreement is that of independent contractors. Nothing in this Agreement shall be construed to create any other relationship between Transcept and Mikart. Neither party shall have any right, power, or authority to assume, create
or incur any expense, liability, or obligation, express or implied, on behalf of the other. 
 14.7 Subcontracting. Mikart
shall not subcontract any Qualification Services or any of its obligations hereunder to another entity without Transcept’s prior written approval, which shall not be unreasonably delayed. Notwithstanding the foregoing, Mikart may subcontract to
any third party without obtaining the consent of Transcept to the extent such third party is listed as an approved subcontractor under the NDA or other regulatory filing for the applicable work to be performed, and, for the first time that Mikart
subcontracts work hereunder to any such third party, Mikart shall notify Transcept of the work being subcontracted and the name of the party to which such work is subcontracted within thirty (30) days after subcontracting such work. In any
case, Mikart shall remain completely responsible for all services or other obligations that are subcontracted by Mikart. All subcontractors hereunder shall be bound by the terms and conditions herein, with respect to the subcontracted services or
obligations, as if named together with Mikart. 
  

 -24- 

 14.8 Assignment. Neither party hereto may assign this Agreement, in whole or in part,
without the prior written consent of the other party, which consent shall not be unreasonably withheld; provided, however, that Transcept may assign its rights and obligations under this Agreement, without such consent, to a successor to all or
substantially all of its business or assets relating to this Agreement (whether by sale, merger, operation of law or otherwise) that agrees in writing to be bound by the provisions of this Agreement. Any attempted assignment not in accordance
herewith shall be null and void and of no force or effect. 
 14.9 Binding Effect. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors, heirs, representatives and permitted assigns. 
 14.10
Interpretation. This Agreement was fully negotiated by both parties hereto and shall not be construed more strongly against either party hereto regardless of which party is responsible for its preparation. 
 14.11 Limitation of Liability. EXCEPT TO THE EXTENT SUCH PARTY MAY BE REQUIRED TO INDEMNIFY THE OTHER PARTY UNDER ARTICLE 7 ABOVE OR IN THE
CASE OF WILLFUL BREACH OF THIS AGREEMENT, NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY OR ANY THIRD PARTY FOR ANY SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR INCIDENTAL DAMAGES (INCLUDING LOST OR ANTICIPATED REVENUES OR PROFITS RELATING TO THE SAME),
ARISING FROM ANY CLAIM RELATING TO THIS AGREEMENT, WHETHER SUCH CLAIM IS BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, EVEN IF AN AUTHORIZED REPRESENTATIVE OF SUCH PARTY IS ADVISED OF THE POSSIBILITY OR LIKELIHOOD OF SAME.

 14.12 Further Assurances. Upon the reasonable request of the other party, each party hereto agrees to take any and all
actions necessary or appropriate to give effect to the terms set forth in this Agreement. 
 [SIGNATURES APPEAR ON FOLLOWING PAGE] 

  

 -25- 

 EXECUTION COPY 
 IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Agreement as of the Effective Date. 
  

			
	“Mikart”
	
	MIKART, INC.
		
	By:	 	 /s/ Miguel I. Arteche

		 	Miguel I. Arteche, Chairman & CEO
	
	“Transcept”
	
	TRANSCEPT PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Glenn A. Oclassen

		 	Glenn A. Oclassen, CEO, President & Director
		
		 	 /s/ Thomas Solomon

		 	Thomas Solomon, CFO

  

 -26- 

 EXHIBIT A 
 Specifications 
 Product Specifications: 
 The Product is either 1.75 mg or 3.50 mg Zolpidem Tartrate tablets, brand and generic, as requested by Transcept. 
 Specifications for Zolpidem Tartrate Lozenge 1.75 mg 
 [***] 
  

 -27- 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 Specifications for Zolpidem Tartrate Lozenge, 3.5 mg 
 [***] 
  

 -28- 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 EXHIBIT B 
 Prices 
  

			
	 Aggregate Tablets Purchased in a Given Contract Year
	  	 Price per
Thousand
Tablets

		  	

 [***] 
 [***]

  

 -29- 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 EXHIBIT C 
 Technology Transfer and Validation Services 
 Qualification Services- General 
  

	 	•	 	 The Qualification Services to be performed by Mikart will include all of the following manufacturing process and test method transfer, validation and stability
activities described in this Exhibit C. A detailed list of the Qualification Services is provided in Schedules C-1 and C-2 below. 

  

	 	•	 	 A [***] will be required. Additionally, each strength will require [***] and will be used for the stability studies in support the application.

  

	 	•	 	 As part of the Qualification Services, Mikart shall prepare the documentation required for the CMC portion of Transcept’s New Drug Application (NDA).

  

	 	•	 	 Batch sizes will be as specified herein. Mikart will prepare the Chemistry, Manufacturing and Controls (CMC) section of the Product NDA in CTD format. All FDA and
ICH guidance documents are applicable. 

  

	 	•	 	 Product will be packaged in bulk for shipment to an outside packaging facility. Sufficient packaged product will be returned to Mikart for introduction into the
stability program. 

  

	 	•	 	 The exhibit/registration batches will undergo ICH stability conditions: [***]. 

 Notes: 
  

	 	1.	Batch size may need to be adjusted based upon equipment capabilities. 

  

	 	2.	The Qualification Services do not include commercial manufacturing, provided that Mikart acknowledges that the validation Batches purchased by Transcept under Section 2.1(b) of
this Agreement are for commercial supply and shall meet all appropriate requirements as described in more detail in Section 2.1(b). 

  

 -30- 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

  
 Schedule C-1: Manufacturing Process and Test Method Transfer 
  
  

			
		  	[***]
	 A.     Process Evaluation and Transfer of Analytical Methods
 1       [***]
 2       [***]
 3       [***]
  
	  	
		  	[***]
	 B.     Manufacturing Process Transfer
  
 1       [***] 

 
 2       [***]

  
 3       [***] 
  
 4       [***]
  
 5       [***] 
  

6       [***] 
  
 7       [***] 

 
 8       [***]

	  	
		
	 C.     Document Preparation of CMC Section
 Total for Transfer and Manufacturing
	  	[***]

  

 -31- 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 Schedule C-2: Additional Charges: Process Validation and Stability Studies 
 A. Process Validation 1st three batches, per strength (excludes COGS) [***] 
  

	 	1	[***] 

  

	 	2	[***] 

  

	 	3	[***] 

  

	 	4	[***] 

  

	 	5	[***] 

 Note: Cost of Goods for first three batches is not included in
this charge. 
 B. Future Stability Costs 
 The [***] are subjected to long term CRT stability, followed by [***] thereafter. Charge will be invoiced once the analysis is completed. Cost per [***] = [***]. 
 Stability Program for [***] 
 Per strength 
  

							
	 Test Interval
	  	Packaging
Configurations
Commercial size	  	Total Samples
per Interval	  	Cost per Test
Interval
	 [***]
	  		  		  	

 C. Annual Stability Program [***] 
 In addition to the above program, [***] thereafter will undergo a [***] temperature stability program. Annual stability charges for commercial batches are dependent on
the configurations packaged in any given year, and whether existing or new configurations are utilized. [***] is added to the program on an ongoing basis as lots are packaged in existing configurations, so the program is always continuing. If new
configurations are employed, then the program begins anew as applicable for that configuration (bulk or other). All work is billed when testing is complete. [***] 
  

 -32- 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 Annual Stability Program 
 [***] 
  

							
	 Test Interval
	  	Packaging
Configurations
Commercial size	  	Total Samples
per Interval	  	Cost per Test
Interval
	 [***]
	  		  		  	

 D. Accelerated Stability Studies (including [***] 
 The [***] will be subjected to an accelerated stability program for a period of [***]. The conditions will be according to ICH specifications at [***]. These charges will
be invoiced upon completion of testing at the [***] station. 
 Schedule C-3: Payment Schedule 
 [***], each representing [***] of the charges for the Qualification Services described in Schedule C-l, will be invoiced upon completion and Transcept’s acceptance
of the following milestones: 
  

	 	1.	[***] 

  

	 	2.	[***] 

  

	 	3.	[***] 

  

 C-4 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 Payments for process validation, ongoing stability studies and miscellaneous items described in Schedule C-2 are as
follows: 
  

	 	1.	Process validation charge will be invoiced upon successful completion of process validation of the [***] (see section A of Schedule C-2) and [***]. 

  

	 	2.	Cost of Goods charges for the validation batches will be invoiced upon product shipment. 

  

	 	3.	Commercial stability costs will be invoiced at the applicable interval points once testing has been completed (see sections B and C of Schedule C-2). 

  

	 	4.	The API will be supplied by Transcept. Any dedicated change parts used for development and exhibit batches will be billed [***]. 

  

	 	5.	Project specific supplies, such as reference drugs, analytical standards, columns and/or reagents, will be billed [***]. A copy of the purchase invoice may be provided, upon
request, along with the request for payment. 

  

	 	6.	Any necessary outside services, such as contract testing or consultation, will be billed [***]. 

  

	 	7.	Costs associated with the Accelerated stability studies (see section D, validation batches) will be invoiced upon completion of the [***] study. 

 Notwithstanding anything in this Agreement to the contrary, Transcept will not be responsible for any charges not described in parts A, B and C of Schedule C-2 that
exceed [***] unless Mikart has obtained Transcept’s written authorization prior to incurring such charges. 
  

 C-5 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 EXECUTION COPY 
  
  
 Project Timeline 
  
  
 Specific dates and milestone lead-times for the Qualification Services will be established and agreed to by the parties following execution of this Agreement. Mikart will forward a preliminary timeline for review shortly after execution of
the Agreement. Subsequent conferences will be held to establish definitive dates for the project’s timeline. Notwithstanding the foregoing, Mikart shall use commercially diligent efforts to complete the Qualification Services prior to the [***]
of the Effective Date. 
  

 C-6 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 EXECUTION COPY 
 EXHIBIT D 
 Active Materials Analytical Testing Methods 
 Description 
 Zolpidem Tartrate CIV occurs as white or
almost white crystalline powder. 
 Identification 
 Responds to Identification tests A. and C. in the current European Pharmacopoeia. 
 Specifications 
 Meets the requirements of the current European Pharmacopoeia (Ph. Eur.) under Zolpidem Tartrate. In addition: 
  

			
	 [***]
	 	

 Test Methods 
 As listed in the current Ph. Eur. In addition: 
  

					
	 [***]
	 		 	

  

 D-1 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 [***] 
 Particle size distribution 
 Principle 
 The method determines [***]. 
 Equipment 
 Instrumentation: [***] 
 Measuring cell: [***]

 Experimental parameters 
 Measuring range: [***] 
 Measuring range: [***] 
 Model: [***] 
 Presentation: [***] 
 Number of sweeps: [***] 
 Speed rate of the
flow cell: [***] 
 Cleaning of the cell 
 Cleaning the cell before starting the measurements 
 [***] 
 Cleaning the cells between runs 
 [***] 
  

 D-2 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 Dilution and dispersion media 
 [***] 
 Measurement 
 Blank frequency 
 [***] 
 Blank measurement 
 [***] 

Sample measurement 
 Sample
dispersion 
 [***] 
 Start of the measurement 
 [***] 
 Data save 
 [***] 
  

 D-3 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 Report of data 
 [***] 
  

			
	Bulk Density	  	Record results from the manufacturer’s COA.
		
	Tapped Density	  	Record results from the manufacturer’s COA.

 PURCHASING 
  

			
	 Approved Manufacturer
	  	 Approved Supplier

	 Teva Pharmaceutical Industries LTD
 Teva Active Pharmaceutical Ingredient Division
 Assia Chemical Industries Ltd. – Teva Tech
Site
 Ramat Hovav
 P.O.
Box 2049, Emek Sara
 Beer Sheva, 84874
 Israel
	  	 Plantex USA
 Two University Plaza Ste. 305
 Hackensack, NJ 07601

  

			
	Purchasing:	  	Zolpidem Tartrate CIV is manufactured by Teva Pharmaceutical Industries LTD, and supplied by Plantex USA. A Certificate of Analysis is required from the manufacturer.
		
	Storage:	  	Store in an airtight container, protected from light.
		
	Recontrol:	  	12 Months from the date of manufacture as listed on the manufacturer’s certificate of analysis.

  

 D-4 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission. 

 EXHIBIT E 
 Quality Agreement 
 [To be attached] 
  

 E-1 

 EXHIBIT F 
 Cost Breakdown For Humidity Control System 
  

							
	 Company
	  	 Description of Service
	  	Cost	  	 Approximate
Timeframe

	 [***]
	  		  		  	

  

 F-1 
  

  
 [***] Confidential treatment has been requested for portions of this exhibit. These portions have been omitted from this exhibit and have been filed separately with the Securities and Exchange Commission.

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