exv10w5






EXHIBIT 10.5




AMENDED AND RESTATED SEVERANCE BENEFITS AGREEMENT




     This AMENDED AND RESTATED SEVERANCE BENEFITS AGREEMENT (the “Agreement”), is made as
of _____________, 2009 (the “Effective Date”) by and between Anthera Pharmaceuticals, Inc.
(the “Company”) and _____________(the “Executive”).



     WHEREAS, the Company and the Executive entered into that certain letter re: Severance Benefits
Agreement, dated as of _____________, 200___(the “Original Agreement”); and



     WHEREAS, the Company and the Executive desire to amend and restate, in its entirety, the
Original Agreement, effective as of the Effective Date and in accordance with the terms hereof;



     NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Executive hereby amend and restate, in its entirety, the Original
Agreement, effective as of the Effective Date, and agree as follows:



     1. “Change in Control” means the occurrence, in a single transaction or in a series of
related transactions, of any one or more of the following events:



          (a) any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the
Company representing more than fifty percent (50%) of the combined voting power of the Company’s
then outstanding securities other than by virtue of a merger, consolidation or similar transaction;





          (i) for purposes of this Agreement, “Exchange Act Person” means any natural
person, entity or “group” (within the meaning of Section 13(d) or 14(d) of the Securities
Exchange Act of 1934, as amended), except that “Exchange Act Person” shall not include (A)
the Company or any subsidiary of the Company, (B) any employee benefit plan of the Company
or any subsidiary of the Company or any trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any subsidiary of the Company, (C) an underwriter
temporarily holding securities pursuant to an offering of such securities, or (D) an entity
owned, directly or indirectly, by the stockholders of the Company in substantially the same
proportion as their ownership of stock of the Company.



          (b) there is consummated a merger, consolidation or similar transaction involving (directly or
indirectly) the Company if, immediately after the consummation of such merger, consolidation or
similar transaction, the stockholders of the Company immediately prior thereto do not own, directly
or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%)
of the combined outstanding voting power of the surviving entity in such merger, consolidation or
similar transaction or (B) more than fifty percent (50%) of the




 









 







combined outstanding voting power of the parent of the surviving Entity in such merger,
consolidation or similar transaction;




          (c) there is consummated a sale, lease, license or other disposition of all or substantially
all of the consolidated assets of the Company and its subsidiaries, other than a sale, lease,
license or other disposition of all or substantially all of the consolidated assets of the Company
and its subsidiaries to an entity, more than fifty percent (50%) of the combined voting power of
the voting securities of which are owned by stockholders of the Company in substantially the same
proportion as their ownership of the Company immediately prior to such sale, lease, license or
other disposition.




     The term Change in Control shall not include a sale of assets, merger or other transaction
effected exclusively for the purpose of changing the domicile of the Company.



     Notwithstanding the foregoing, a transaction shall not constitute a Change in Control if: (i)
its sole purpose is to change the state of the Company’s incorporation; (ii) its sole purpose is to
create a holding company that will be owned in substantially the same proportions by the persons
who held the Company’s securities immediately before such transaction; (iii) it constitutes the
Company’s initial public offering of its securities; or (iv) it is a transaction effected primarily
for the purpose of financing the Company with cash (as determined by the Board in its discretion).



     2. Termination.



          (a) If the Executive’s employment with the Company is terminated by the Company for any reason
other than for Cause or if there is a Constructive Termination, in each case, on the effective date
of a termination which is not associated with a Change in Control or on the effective date of a
Change in Control or within twelve (12) months thereafter, and if the Executive provides the
Company with a signed general release of all claims against the Company and its affiliates in a
form reasonably acceptable to the Company (the “Release”) within the 21-day period
following the date of termination of employment and the seven-day revocation period for the Release
has expired, then the Company shall provide the Executive with the following benefits:





          (i) Continuation of the Executive’s base salary for a period of twelve (12) months
following the Executive’s termination of employment, at the rate in effect immediately prior
to the Executive’s termination of employment (or, if higher, the rate in effect immediately
prior to any Change in Control), payable in accordance with standard payroll procedures
commencing on the first payroll date that occurs 30 days after the date of termination of
employment (except as otherwise provided in Section 2(d) below), less applicable
withholdings; provided that, solely for purposes of Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”), each installment payment is considered a
separate payment;




          (ii) With regard to the Executive’s outstanding options, twelve (12) months vesting of
the unvested shares to purchase the Company’s common stock and the immediate lapsing of any
vesting restrictions on any Company restricted stock awards



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that the Executive holds as of the date of such termination of employment (the
acceleration of vesting of stock options and restricted stock described in this section
shall be effective as of the date of the Executive’s termination of employment); and




          (iii) the Company shall pay the group health, dental and vision plan continuation
coverage premiums for the Executive and, if applicable, the Executive’s covered dependents
under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, for twelve
(12) months from the date of the Executive’s termination of employment, or if earlier, until
the date upon which the Executive commences employment with another employer.



          (b) For purposes of this Agreement, “Cause” shall mean (i) gross negligence or willful
misconduct by the Executive in the performance of the Executive’s duties to the Company that is not
cured within thirty (30) days of written notice thereof, where such gross negligence or willful
misconduct has resulted or is likely to result in substantial and material damage to the Company or
its subsidiaries; (ii) the Executive’s repeated unexplained or unjustified absence from the
Company; (iii) a material and willful violation by the Executive of any federal or state law; (iv)
commission by the Executive of any act of fraud with respect to the Company; or (v) the Executive’s
commission of an act of moral turpitude or conviction of or entry of a plea of nolo
contendere to a felony.




          (c) For purposes of this Agreement, “Constructive Termination” shall mean the
Executive’s resignation within 180 days of the occurrence of any one or more of the following
events without the Executive’s prior written consent, provided that the Executive has provided
written notice to the Company within ninety (90) days of the first occurrence of the event and such
event remains uncured by the Company thirty (30) days after the Executive’s delivery to the Company
of written notice thereof:





          (i) a material diminution in the Executive’s duties, responsibilities or authority;




          (ii) a material diminution of the Executive’s base compensation (other than in
connection with a general decrease in base salaries for most similarly situated employees of
the Company or a successor corporation); or




          (iii) a material change in the geographic location at which the Executive provides
services to the Company.



     3. Section 409A.



          (a) Anything in this Agreement to the contrary notwithstanding, if at the time of the
Executive’s separation from service within the meaning of Section 409A of the Code, the Company
determines that the Executive is a “specified employee” within the meaning of Section
409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes
entitled to under this Agreement on account of the Executive’s separation from service would be
considered deferred compensation subject to the 20 percent additional tax imposed pursuant to
Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code,
such payment shall not be payable and such benefit shall not be



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provided until the date that is the earlier of (A) six months and one day after the
Executive’s separation from service, or (B) the Executive’s death. If any such delayed cash
payment is otherwise payable on an installment basis, the first payment shall include a catch-up
payment covering amounts that would otherwise have been paid during the six-month period but for
the application of this provision, and the balance of the installments shall be payable in
accordance with their original schedule.




          (b) To the extent that any payment or benefit described in this Agreement constitutes
“non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such
payment or benefit is payable upon the Executive’s termination of employment, then such payments or
benefits shall be payable only upon the Executive’s “separation from service.” The determination
of whether and when a separation from service has occurred shall be made in accordance with the
presumptions set forth in Treasury Regulation Section 1.409A-1(h).




          (c) The parties intend that this Agreement will be administered in accordance with Section
409A of the Code. To the extent that any provision of this Agreement is ambiguous as to its
compliance with Section 409A of the Code, the provision shall be read in such a manner so that all
payments hereunder comply with Section 409A of the Code. The parties agree that this Agreement may
be amended, as reasonably requested by either party, and as may be necessary to fully comply with
Section 409A of the Code and all related rules and regulations in order to preserve the payments
and benefits provided hereunder without additional cost to either party.




     4. Binding Agreement. This Agreement shall inure to the benefit of and be enforceable
by the Executive and the Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive should die while any
amount would still be payable to the Executive hereunder had the Executive continued to live, all
such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Executive’s devisee, legatee or other designee or, if there is no such designee,
to the Executive’s estate.



     5. Entire Agreement. This Agreement sets forth the entire agreement of the parties
hereto in respect of the subject matter contained herein and supersedes all prior agreements,
arrangements and understandings of the parties hereto with respect to the subject matter contained
herein, including, without limitation, any prior change in control agreements.



     6. At-Will Employment. Nothing contained in this Agreement shall (a) confer upon the
Executive any right to continue in the employ of the Company, (b) constitute any contract or
agreement of employment, or (c) interfere in any way with the at-will nature of the Executive’s
employment with the Company.



     7. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by the
Executive and such officer as may be specifically designated by the Board. No waiver by either
party hereto at any time of any breach by the other party hereto of or compliance with, any
condition or provision of this Agreement to be performed by such other party shall be deemed a



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waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. The validity, interpretation, construction and performance of this Agreement
shall be governed by the laws of the State of California without regard to its conflicts of law
principles. The section headings contained in this Agreement are for convenience only, and shall
not affect the interpretation of this Agreement. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which together shall
constitute one and the same instrument. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.





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     IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by a duly
authorized representative of the Company and by the Executive, as of the Effective Date.



	 	 	 	 	 
	 	Anthera Pharmaceuticals Inc.

 	 
	 	By:  	 	 
	 
	 	 	Name:  	 	 
	 
	 	 	Title:  	 	 
	 	Executive