EX-10.69





 Exhibit 10.69 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT 

AGREEMENT BY AND BETWEEN 

HORIZON PHARMA, INC., HORIZON PHARMA USA, INC. AND 

JEFFREY W. SHERMAN, M.D. 

This Amended and Restated Employment Agreement (hereinafter referred to as the “Agreement”), dated July 27, 2010, is entered
into effective July 27, 2010 (the “Effective Date”) by and between Horizon Pharma, Inc., a Delaware corporation, and its wholly owned subsidiary, Horizon Pharma USA, Inc., a Delaware corporation, each having a principal
place of business at 1033 Skokie Boulevard, Suite 355 Northbrook, IL, 60062, (hereinafter referred to together as the “Company”) and Jeffrey W. Sherman, M.D., an individual residing at 21 Sherwood Drive, Lincolnshire, IL
60069, domiciled in the State of Illinois (hereinafter referred as to the “Executive”). This Agreement amends and supersedes in its entirety the Executive Employment Agreement entered into by and between Horizon Pharma USA,
Inc. (formerly Horizon Therapeutics, Inc.) and Executive on June 24, 2009 (the “Prior Agreement”). 

RECITALS 
 WHEREAS,
the Company is a duly organized Delaware corporation, with its principal place of business within the State of Illinois, and is in the business of developing and marketing prescription medication; and 

WHEREAS, Executive is domiciled within the State of Illinois and is highly skilled and experienced in the business of developing and
marketing health care related products and services; and 
 WHEREAS, the Company desires assurance of the continued association and
services of the Executive in order to continue to retain the Executive’s experience, skills, abilities, background and knowledge, and is willing to continue to engage the Executive’s services on the terms and conditions set forth in this
Agreement; and 
 WHEREAS, Executive desires to be in the continued employ of the Company, and is willing to accept such continued
employment on the terms and conditions set forth in this Agreement. 
 AGREEMENT 

 

	 	1.	 Employment. 



1.1 Term. The Company hereby agrees to employ the Executive, and the Executive hereby accepts employment by the Company, upon the terms
and conditions set forth in this Agreement. The Executive’s original date of hire was June 24, 2009 (the “Hire Date”). Executive’s employment shall be governed under the terms set 

  
 1 













 forth in this Agreement beginning on the Effective Date and shall continue until it is terminated pursuant
to Section 4 herein (hereinafter referred to as the “Term”). 
 1.2 Title. The Executive shall have the
title of Executive Vice President, Chief Medical Officer (hereinafter referred to as “CMO”) of the Company and shall serve in such other capacity or capacities commensurate with his position as the
President and CEO of the Company may from time to time prescribe. 
 1.3 Duties. The Executive shall do and perform all services,
acts or things necessary or advisable to manage and conduct the business of the Company and shall have the authority and responsibilities which are generally associated with the position of Executive Vice President, Research and Development and
Chief Medical Officer (CMO), including being responsible for the Company’s clinical and regulatory strategy and operations. The Executive shall report to the President and CEO. 

1.4 Policies and Practices. The employment relationship between the Parties shall be governed by this Agreement and the policies and
practices established by the Company and the Board of Directors (hereinafter referred to as the “Board”). In the event that the terms of this Agreement differ from or are in conflict with the Company’s policies or practices or the
Company’s Employee Handbook, this Agreement shall control. 
 1.5 Location. The Executive shall perform the services the
Executive is required to perform pursuant to this Agreement in the Company’s Northbrook, IL headquarters. The Company may from time to time require the Executive to travel outside the Company’s headquarters in Northbrook, IL and other
locations in connection with the Company’s business. 
  

	 	2.	 Loyalty of Executive. 



2.1 Loyalty. During the Executive’s employment by the Company, the Executive shall devote the Executive’s business energies,
interest, abilities and productive time to the proper and efficient performance of Executive’s duties under this Agreement. The Executive is permitted to serve on the board of directors of one other company, so long as the other company
does not compete with the Company.  
 2.2 Exclusive Employment. Except with the prior written consent of the Board, Executive
shall not, during the term of this Agreement, undertake or engage in any other employment, occupation or business enterprise, other than ones in which Executive is a passive investor. Executive may engage in any civic and not-for-profit activities so long as such activities do not materially interfere with the performance of his duties hereunder or present a conflict of interest with the
Company. 
 2.3 Agreement not to Participate in Company’s Competitors. During the Term of this Agreement, the Executive agrees
not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by Executive to be adverse or antagonistic to the Company, its business or prospects, 

  
 2 













 
financial or otherwise or in any company, person or entity that is, directly or indirectly, in competition with the business of the Company or any of its affiliates. 

 

	 	3.	 Compensation to Executive. 



3.1 Base Salary. The Company shall pay the Executive a base salary at the initial annualized rate of three hundred thirty-three thousand
nine hundred dollars ($333,900.00) per year, subject to standard deductions and withholdings, or such higher rate as may be determined from time to time by the Board or the compensation committee thereof (hereinafter referred to as the “Base
Salary”). Such Base Salary shall be paid in accordance with the Company’s standard payroll practice. Payments of salary installments shall be made no less frequently than once per month. Executive’s Base Salary will be reviewed
annually each December and Executive shall be eligible to receive a salary increase (but not decrease) annually in an amount to be determined by the Board or the compensation committee thereof in its sole and exclusive discretion. Once increased,
the new salary shall become the Base Salary for purposes of this Agreement and shall not be reduced without the Executive’s written consent. Any reduction in the Base Salary of the Executive, without his written consent, shall be deemed Good
Reason as set forth in and subject to Section 4.5.2 of this Agreement. 
 3.2 Discretionary Bonus. Provided the Executive meets
the conditions stated in this Section 3.2, the Executive shall be eligible for an annual discretionary bonus (hereinafter referred to as the “Bonus”) with a target amount of thirty percent (30%) of the Executive’s Base
Salary, subject to standard deductions and withholdings, based on the Board’s determination, in good faith, and based upon the Executive’s individual achievement and company performance objectives as set by the Board or the
compensation committee thereof, of whether the Executive has met such performance milestones as are established for the Executive by the Board or the compensation committee thereof, in good faith, in consultation with the Executive (hereinafter
referred to as the “Performance Milestones”). The Performance Milestones will be based on certain factors including, but not limited to, the Executive’s performance and the Company’s financial performance. The Executive’s
Bonus target will be reviewed annually and may be adjusted by the Board or the compensation committee thereof in its discretion, provided however, that the Bonus target may only be reduced upon Executive’s written consent. The Executive must be
employed on the date the Bonus is awarded to be eligible for the Bonus, subject to the termination provisions thereof. Bonuses shall be paid during the calendar year following the calendar year for which such Bonus was earned. 

3.3 Stock Options. Subject to the Company’s 2005 Stock Plan (hereinafter referred to as the “Plan”), the Executive was
granted an option to purchase one hundred ten thousand (110,000) shares of the Company’s common stock (hereinafter referred to as the “Option”) on the Executive’s Hire Date. The exercise price of the Option was the fair
market value of the Company’s Common Stock on the date of the grant, as determined by the Board based on its most recent 409(A) determination. The Option vests over a period of four years, with twenty-five percent of the Options vesting on the one-year anniversary of the Executives start date with the Company and the 

  
 3 













 
remaining Options vesting ratably monthly over the following three years. The Executive will have the right to exercise the Option with respect to unvested shares, subject to the Company’s
right to repurchase such shares on termination of the Executive’s employment by the Company for Cause or without Good Reason as defined by this Agreement at the original purchase price, with such repurchase right lapsing according to the
vesting schedule set forth above. The Option is subject to the terms of the Plan and is an incentive stock option to the maximum extent permitted by law. In the event that the terms of this Agreement differ with the Company’s policies or
practices set out in its Plan, this Agreement shall control; provided, however, that the Options will remain subject to any additional acceleration of vesting and any other terms more beneficial to Executive that may be provided in the Plan or
applicable option agreements that are not otherwise provided pursuant to this Agreement. 
 3.4 Discretionary Grants. At least one
time per year, including following any private equity financing within one year after the Hire Date, the Board shall consider, in good faith, whether to grant additional equity awards to the Executive. In February 2010, Executive was granted a stock
option under the Plan to purchase up to one hundred thirteen thousand one hundred and thirty two (113,132) shares of the Company’s Common Stock. 

3.5 Legal Review. Upon the Executive’s submission of appropriate itemized proof and verification of reasonable and customary legal
fees incurred by the Executive in obtaining legal advice associated with the review, preparation, approval, and execution of this Agreement, the Company shall pay for such legal fees subject to receipt of appropriate proof and verification of such
legal fees no later than ninety (90) days after such expenses are incurred by the Executive. The Company agrees to pay all reasonable legal fees pursuant to Section 3.5 of this Agreement within thirty (30) days of receipt an invoice
for legal services from the Executive and/or his attorneys. 
 3.6 Changes to Compensation. The Executive’s compensation
may be changed from time to time by mutual agreement of the Executive and the Company. In the event that the Executive’s base salary is materially decreased without his written consent, said decrease will be Good Reason for the Executive to
terminate the Agreement as set forth in and subject to Section 4.5.2 of this Agreement. 
 3.7 Taxes. All amounts paid under
this Agreement to the Executive by the Company will be paid less applicable tax withholdings and any other withholdings required by law or authorized by the Executive. 

3.8 Benefits. The Executive shall, in accordance with Company policy and the terms of the applicable plan documents, be eligible to
participate in benefits under any executive benefit plan or arrangement which may be in effect from time to time and made available to the Company’s executives or key management employees, provided, however, that the Executive shall be entitled
to at least four (4) weeks of paid vacation annually. 
  

	 	4.	 Termination. 



  
 4 













 4.1 Termination by the Company. The Executive’s employment with the Company may
be terminated only under the following conditions: 
 4.1.1 Termination for Death or Disability. The Executive’s employment
with the Company shall terminate effective upon the date of the Executive’s death or “Complete Disability” (as defined in Section 4.5.1), provided, however, that this Section 4.1.1 shall in no way limit the Company’s
obligations to provide such reasonable accommodations to the Executive and/or his heirs as may be required by law. 
 4.1.2 Termination
by the Company For Cause. The Company may terminate the Executive’s employment under this Agreement for “Cause” (as defined in Section 4.5.3) by delivery of written notice to the Executive specifying the Cause or Causes
relied upon for such termination, provided that such notice is delivered within two (2) months following the occurrence or discovery of any event or events constituting “Cause”. Any notice of termination given pursuant to this
Section 4.1.2 shall effect termination as of the date of the notice or such date as specified in the notice. The Executive shall have the right to appear before the full Board before any termination for Cause becomes effective and binding upon
the Executive. 
 4.1.3 Termination by the Company Without Cause. The Company may terminate the Executive’s employment under
this Agreement at any time and for any reason or no reason subject to the requirements set out in Section 4.4 of this Agreement. Such termination shall be effective on the date the Executive is so informed or as otherwise specified by the
Company, pursuant to notice requirements set forth in Section 6 of this Agreement. 
 4.2 Termination By The Executive. The
Executive may terminate his employment with the Company at any time and for any reason or no reason, including, but not limited, to the following conditions: 

4.2.1 Good Reason. The Executive may terminate his employment under this Agreement for “Good Reason” (as defined below in
Section 4.5.2) by delivery of written notice to the Company specifying the Good Reason relied upon by the Executive for such termination in accordance with the requirements of such section. 

4.2.2 Without Good Reason. The Executive may terminate the Executive’s employment hereunder for other than Good Reason upon
thirty (30) days written notice to the Company. 
 4.3 Termination by Mutual Agreement of the Parties. The Executive’s
employment pursuant to this Agreement may be terminated at any time upon a mutual agreement in writing of the Parties. Any such termination of employment shall have the consequences specified in such mutual agreement. 

  
 5 













 4.4 Compensation to Executive Upon Termination. 

4.4.1 Death or Complete Disability. If the Executive’s employment shall be terminated by death or Complete Disability as provided
in Section 4.1.1, the Company shall pay to Executive, and/or Executive’s heirs, all earned but unpaid Base Salary, any earned but unpaid discretionary bonuses for any prior period at such time as bonuses would have been paid if the
Executive remained employed, all accrued but unpaid business expenses, and all accrued but unused vacation time earned through the date of termination at the rate in effect at the time of termination (hereinafter referred to as the “Accrued
Amounts”), less standard deductions and withholdings. The Executive shall also be eligible to receive a pro-rated bonus for the year of termination, as determined by the Board or the Compensation
Committee of the Board based on actual performance and the period of the year he was employed (hereinafter referred to as the “Pro-rata Bonus”), less standard deductions and withholdings, to be paid
as a lump sum within thirty (30) days after the date of termination. 
 4.4.2 With Cause or Without Good Reason. If the
Executive’s employment shall be terminated by the Company for Cause, or if the Executive terminates employment hereunder without Good Reason, the Company shall pay the Executive’s Base Salary, accrued but unpaid business expenses and
accrued and unused vacation benefits earned through the date of termination at the rate in effect at the time of termination, less standard deductions and withholdings. 

4.4.3 Without Cause or For Good Reason. If the Company terminates the Executive’s employment without Cause or the Executive
terminates his employment for Good Reason, the Company shall pay the Accrued Amounts subject to standard deductions and withholdings, to be paid as a lump sum no later than thirty (30) days after the date of termination. In addition, subject to
the limitations stated in this Agreement and upon the Executive’s furnishing to the Company an executed waiver and release of claims (the form of which is attached hereto as Exhibit A) (the “Release”) within the applicable time period
set forth therein, but in no event later than forty-five days following termination of employment and permitting such Release to become effective in accordance with its terms (the “Release Effective Date”), and subject to Executive
entering into no later than the Release Effective Date a non-competition agreement to be effective during the Severance Period, substantially similar to Section 2.3, and continuing to abide by its terms
during the Severance Period, the Executive shall be entitled to the following benefits subject to the following terms and conditions: 

(i) continued payment of Executive’s Base Salary in effect at the time of termination for a period of up to twelve
(12) months after the date of termination (the “Severance Period”), less standard deductions and withholdings, to be paid in accordance with the Company’s standard payroll practices; subject to any delay in payment
required by Section 4.6 in connection with the Release Effective Date; 
 (ii) in the event the Executive timely elects
continued coverage under COBRA, the Company will continue to pay the same portion of Executive’s COBRA health insurance premium as the percentage of health insurance premiums that it 

  
 6 













 
paid during the Executive’s employment, including any amounts that Company paid for benefits to the qualifying family members of the Executive, up until the earlier of either (i) the
last day of the Severance Period or, (ii) the date on which the Executive begins full-time employment with another company or business entity which offers comparable health insurance coverage to the Executive; and 

(iii) Notwithstanding anything to the contrary set forth herein, the Severance Period, and the Company’s provisions of cash
severance benefits to Executive under this Section 4.4.3 shall immediately cease upon the date that Executive begins full-time employment with another company or business entity which offers base compensation to Executive of at least
ninety-five percent (95%) of Executive’s annual Base Salary amount in effect at the time of termination. Executive agrees to immediately notify the Company in writing of any such employment. 

4.4.4 Equity Award Acceleration. 

(i) In Connection With a Change in Control. In the event that the Executive’s employment is terminated without Cause or for Good
Reason within the ninety (90) days immediately preceding or during the eighteen (18) months immediately following a Change in Control of the Company (as defined in Section 4.5.4 of this Agreement), the vesting of the Option shall be
fully accelerated such that on the effective date of such termination one hundred percent (100%) of the Option and any other equity award shares granted to Executive prior to such termination shall be fully vested and immediately exercisable by
the Executive. 
 (ii) Release and Waiver. Any equity vesting acceleration pursuant to this Section 4.4.4 shall be conditioned
upon and subject to the Executive’s delivery to the Company of a fully effective Release in accordance with the terms specified by Section 4.4.3 hereof and such vesting acceleration benefit shall be in addition to the benefits provided by
Section 4.4.3 hereof. 
 4.5 Definitions. For purposes of this Agreement, the following terms shall have the following meanings:

 4.5.1 Complete Disability. “Complete Disability” shall mean the inability of the Executive to perform the
Executive’s duties under this Agreement, whether with or without reasonable accommodation, because the Executive has become permanently disabled within the meaning of any policy of disability income insurance covering employees of the Company
then in force. In the event the Company has no policy of disability income insurance covering employees of the Company in force when the Executive becomes disabled, the term “Complete Disability” shall mean the inability of the Executive
to perform the Executive’s duties under this Agreement, whether with or without reasonable accommodation, by reason of any incapacity, physical or mental, which the Board, based upon medical advice or an opinion provided by a licensed
physician, determines to have incapacitated the Executive from satisfactorily performing all of the Executive’s usual services for the Company, with or without reasonable 

  
 7 













 
accommodation, for a period of at least one hundred eighty (180) days during any twelve (12) month period that need not be consecutive. 

4.5.2 Good Reason. “Good Reason” for the Executive to terminate the Executive’s employment
hereunder shall mean the occurrence of any of the following events without the Executive’s consent: 
 (i) the relocation of
the Executive’s primary work location to a point more than fifty (50) miles from the Executive’s current work location set forth in Section 1.5 that requires a material increase in Executive’s driving distance; and 

(ii) a material reduction by the Company of the Executive’s base salary or annual target Bonus opportunity, without the written
consent of the Executive, as initially set forth herein or as the same may be increased from time to time pursuant to this Agreement. 
 Provided, however
that, such termination by the Executive shall only be deemed for Good Reason pursuant to the foregoing definition if (i) the Company is given written notice from the Executive within sixty (60) days following the first occurrence of the
condition that he considers to constitute Good Reason describing the condition and the Company fails to satisfactorily remedy such condition within thirty (30) days following such written notice, and (ii) the Executive terminates
employment within thirty (30) days following the end of the period within which the Company was entitled to remedy the condition constituting Good Reason but failed to do so. 

4.5.3 Cause. “Cause” for the Company to terminate Executive’s employment hereunder shall mean the occurrence of any of
the following events, as determined reasonably and in good faith by the Board or a committee designated by the Board: 
 (i) the
Executive’s gross negligence or failure to substantially perform his duties and responsibilities to the Company or willful violation of a Company policy; 

(ii) the Executive’s conviction of a felony or the Executive’s commission of any act of fraud, embezzlement or dishonesty
against the Company or involving moral turpitude that is likely to inflict or has inflicted injury on the business of the Company, to be determined by the sole discretion of the Company; 

(iii) the Executive’s unauthorized use or disclosure of any proprietary information or trade secrets of the Company or any other
party that the Executive owes an obligation of nondisclosure as a result of the Executive’s relationship with the Company; and 

(iv) the Executive’s breach of the obligations under this Agreement that causes injury to the business of the Company. 

  
 8 













 4.5.4 Change in Control. For purposes of this Agreement, “Change in
Control” means: (i) a sale of all or substantially all of the assets of the Company; (ii) a merger or consolidation in which the Company is not the surviving entity and in which the holders of the Company’s outstanding voting
stock immediately prior to such transaction own, immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the entity surviving such transaction or, where the surviving entity is a
wholly-owned subsidiary of another entity, the surviving entity’s parent; (iii) a reverse merger in which the Company is the surviving entity but the shares of Common Stock outstanding immediately preceding the merger are converted by
virtue of the merger into other property, whether in the form of securities of the surviving entity’s parent, cash or otherwise, and in which the holders of the Company’s outstanding voting stock immediately prior to such transaction own,
immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the Company or, where the Company is a wholly-owned subsidiary of another entity, the Company’s parent; or (iv) an
acquisition by any person, entity or group (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or subsidiary of the Company or other entity controlled by the Company) of the beneficial ownership of
securities of the Company representing at least seventy-five percent (75%) of the combined voting power entitled to vote in the election of Directors; provided, however, that nothing in this paragraph shall apply to a sale of assets, merger or
other transaction effected exclusively for the purpose of changing the domicile of the Company. 
 4.6 Application of Internal Revenue
Code Section 409A. Notwithstanding anything to the contrary set forth herein, any payments and benefits provided under this Agreement (the “Severance Benefits”) that constitute “deferred compensation”
within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”) shall
not commence in connection with Executive’s termination of employment unless and until Executive has also incurred a “separation from service” (as such term is defined in Treasury Regulation
Section 1.409A-1(h) (“Separation From Service”), unless the Company reasonably determines that such amounts may be provided to Executive without causing Executive to incur the additional 20% tax
under Section 409A. 
 It is intended that each installment of the Severance Benefits payments provided for in this Agreement is a
separate “payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i). For the avoidance of doubt, it is intended that payments of the Severance Benefits set forth in this Agreement
satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulation Sections 1.409A-1(b)(4),
1.409A-1(b)(5) and 1.409A-1(b)(9). However, if the Company (or, if applicable, the successor entity thereto) determines that the Severance Benefits constitute
“deferred compensation” under Section 409A and Executive is, on the termination of service, a “specified employee” of the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) of
the Code, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the Severance Benefit payments shall be delayed until 

  
 9 













 
the earlier to occur of: (i) the date that is six months and one day after Executive’s Separation From Service, or (ii) the date of Executive’s death (such applicable date,
the “Specified Employee Initial Payment Date”), the Company (or the successor entity thereto, as applicable) shall (A) pay to Executive a lump sum amount equal to the sum of the Severance Benefit payments that Executive would
otherwise have received through the Specified Employee Initial Payment Date if the commencement of the payment of the Severance Benefits had not been so delayed pursuant to this Section and (B) commence paying the balance of the Severance
Benefits in accordance with the applicable payment schedules set forth in this Agreement. 
 Notwithstanding anything to the contrary set
forth herein, Executive shall receive the Severance Benefits described above, if and only if Executive duly executes and returns to the Company within the applicable time period set forth therein, but in no event more than forty-five days following
Separation From Service, the Company’s standard form of release of claims in favor of the Company (attached to this Agreement as Exhibit A) and permits the release of claims contained therein to become effective in accordance with its terms.
Notwithstanding any other payment schedule set forth in this Agreement, none of the Severance Benefits will be paid or otherwise delivered prior to the effective date of the Release. Except to the extent that payments may be delayed until the
Specified Employee Initial Payment Date pursuant to the preceding paragraph, on the first regular payroll pay day following the effective date of the Release, the Company will pay Executive the Severance Benefits Executive would otherwise have
received under the Agreement on or prior to such date but for the delay in payment related to the effectiveness of the Release, with the balance of the Severance Benefits being paid as originally scheduled. 

4.7 Application of Internal Revenue Code Section 280G. If any payment or benefit Executive would receive pursuant to
a Change in Control from the Company or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to
the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment
that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local
employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive’s receipt, on an after-tax basis, of the greater economic benefit
notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall
occur in the manner that results in the greatest economic benefit for Executive. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata. 

In the event it is subsequently determined by the Internal Revenue Service that some portion of the Reduced Amount as determined pursuant to
clause (x) in the preceding paragraph is subject to the Excise Tax, Executive agrees to promptly return to 

  
 10 













 
the Company a sufficient amount of the Payment so that no portion of the Reduced Amount is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount is determined pursuant to
clause (y) in the preceding paragraph, Executive will have no obligation to return any portion of the Payment pursuant to the preceding sentence. 

Unless Executive and the Company agree on an alternative accounting firm, the accounting firm engaged by the Company for general tax
compliance purposes as of the day prior to the effective date of the Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group
effecting the Change in Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required
to be made hereunder. 
 The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the
determinations hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within fifteen (15) calendar days after the date on which Executive’s right to a Payment is triggered (if
requested at that time by you or the Company) or such other time as requested by Executive or the Company. 
 4.8 Indemnification
Agreement. The Company and the Executive have previously entered into an indemnification agreement which shall continue to govern the terms of Executive’s employment following the Effective Date, and a copy of which is attached hereto as
Exhibit B. 
 4.9 Confidential Information and Invention Assignment Agreement. The Executive has previously executed the
Company’s Confidential Information and Invention Assignment Agreement the terms of which shall continue to govern the terms of Executive’s employment following the Effective Date, and a copy of which is attached as Exhibit C. 

 

	 	5.	 Assignment and Binding Effect. 



This Agreement shall be binding upon the Executive and the Company and inure to the benefit of the Executive and the Executive’s heirs,
executors, personal representatives, assigns, administrators and legal representatives. Because of the unique and personal nature of the Executive’s duties under this Agreement, neither this Agreement nor obligations under this Agreement shall
be assignable by the Executive. This Agreement shall be binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives, provided that the Agreement may only be assigned to an acquirer of all or
substantially all of the Company’s assets. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose, “successor” means any person, firm,
corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company. 

  
 11 














	 	6.	 Notice. 



For the purposes of this Agreement, notices, demands, and all other forms of communication provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or (unless otherwise specified) mailed by registered mail, return receipt requested, postage prepaid, or by confirmed facsimile, addressed as set forth below, or to such other address
as any party may have furnished to the other in writing in accordance herewith, except that notices of address shall be effective only upon receipt, as follows: 

If to the Company: 
 Horizon
Pharma, Inc. 
 1033 Skokie Boulevard, Suite 355 

Northbrook, IL 60062 
 Attention:
Timothy P. Walbert, President & CEO 
 Fax:
224-383-3001 
 If to the Executive: 

Jeffrey W. Sherman 
 21 Sherwood
Lane 
 Lincolnshire, IL 60069 
 Any such
written notice shall be deemed given on the earlier of the date on which such notice is personally delivered or five (5) days after its deposit in the United States mail as specified above. Either Party may change its address for notices by
giving written notice to the other Party in the manner specified in this section. 
  

	 	7.	 Choice of Law. 



This Agreement shall be governed by the laws of the State of Illinois, without regard to any conflicts of law principals thereof that would
call for the application of the laws of any other jurisdiction. The Parties consent to the exclusive jurisdiction and venue of the federal court in the Northern District of Illinois, and state courts located in the state of Illinois, county of Cook.
Nothing in this Section 7 limits the rights of the Parties to seek appeal of a decision of an Illinois court outside of Illinois that has proper jurisdiction over the decision of a court sitting in Illinois. 

 

	 	8.	 Integration. 



This Agreement, including Exhibit A, Exhibit B, Exhibit C and the Plan and applicable stock option agreements contains the complete, final and
exclusive agreement of the Parties relating to the terms and conditions of the Executive’s employment and the termination of Executive’s employment, and supersedes all prior and contemporaneous oral and written employment agreements or
arrangements between the Parties. 

  
 12 














	 	9.	 Amendment. 



This Agreement cannot be amended or modified except by a written agreement signed by the Executive and the Company. 

 

	 	10.	 Waiver. 



No term, covenant or condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent of the Party
against whom the wavier is claimed, and any waiver or any such term, covenant, condition or breach shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other term, covenant, condition or breach. 

 

	 	11.	 Severability. 



The finding by a court of competent jurisdiction of the unenforceability, invalidity or illegality of any provision of this Agreement shall not
render any other provision of this Agreement unenforceable, invalid or illegal. Such court shall have the authority to modify or replace the invalid or unenforceable term or provision with a valid and enforceable term or provision, which most
accurately represents the Parties’ intention with respect to the invalid, unenforceable, or illegal term or provision. 
  

	 	12.	 Interpretation; Construction. 



The headings set forth in this Agreement are for convenience of reference only and shall not be used in interpreting this Agreement. This
Agreement has been drafted and negotiated by legal counsel representing the Company and the Executive. The Parties acknowledge that each Party and its counsel has reviewed and revised, or had an opportunity to review and revise, this Agreement, and
any rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 
  

	 	13.	 Execution by Facsimile Signatures and in Counterparts. 



The parties agree that facsimile signatures shall have the same force and effect as original signatures. This Agreement may be executed in one
or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 

  
 13 













 IN WITNESS WHEREFORE, the parties have signed this Agreement on the date first
written above. 
  

	
	COMPANY:
	
	HORIZON PHARMA, INC.
	HORIZON PHARMA USA, INC.
	
	By:
	
	Title: President and CEO
	
	Print Name: Timothy P. Walbert
	
	 /s/ Timothy P. Walbert

	Signature:
	
	            As authorized agent of the Company
	
	  

	Date
	
	EXECUTIVE:
	
	JEFFREY W. SHERMAN, M.D.
	
	 /s/ Jeffrey W. Sherman

	Jeffrey W. Sherman, M.D., individually
	
	  

	Date


  
 14 













 EXHIBIT A 

RELEASE AND WAIVER OF CLAIMS 
 In
consideration of the payments and other benefits set forth in Section                      of the Amended and Restated Employment Agreement dated
            , 2010, (the “Employment Agreement”), to which this form is attached, I, Jeffrey W. Sherman, M.D., hereby furnish Horizon Pharma, Inc. and Horizon Pharma USA,
Inc. (together the “Company”), with the following release and waiver (“Release and Waiver”). 
 In
exchange for the consideration provided to me by the Employment Agreement that I am not otherwise entitled to receive, I hereby generally and completely release the Company and its directors, officers, employees, shareholders, partners, agents,
attorneys, predecessors, successors, parent and subsidiary entities, insurers, Affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts,
conduct, or omissions occurring relating to my employment or the termination thereof prior to my signing this Release and Waiver. This general release includes, but is not limited to: (1) all claims arising out of or in any way related to my
employment with the Company or the termination of that employment; (2) all claims related to my compensation or benefits from the Company, including, but not limited to, salary, bonuses, commissions, vacation pay, expense reimbursements,
severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all
tort claims, including, but not limited to, claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including, but not limited to, claims for
discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of
1967 (as amended) (“ADEA”), and the California Fair Employment and Housing Act (as amended). Notwithstanding the foregoing, this Release and Waiver, shall not release or waive my rights: to indemnification under the articles and
bylaws of the Company or applicable law, including without limitations, California Labor Code Sections 2800 and 2802; to payments under Sections
                     of the Employment Agreement; under any provision of the Employment Agreement that survives the termination of that agreement;
under the California Workers’ Compensation Act; under any option, restricted share or other agreement concerning any equity interest in the Company; as a shareholder of the Company or any other right that is not waivable under applicable law.

 I also acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general
release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”
I hereby expressly waive and relinquish all rights and 

  
 15 













 benefits under that section and any law of any jurisdiction of similar effect with respect to any claims I
may have against the Company. 
 I acknowledge that, among other rights, I am waiving and releasing any rights I may have under ADEA, that
this Release and Waiver is knowing and voluntary, and that the consideration given for this Release and Waiver is in addition to anything of value to which I was already entitled as an executive of the Company. If I am 40 years of age or older upon
execution of this Release and Waiver, I further acknowledge that I have been advised, as required by the Older Workers Benefit Protection Act, that: (a) the release and waiver granted herein does not relate to claims under the ADEA which may
arise after this Release and Waiver is executed; (b) I should consult with an attorney prior to executing this Release and Waiver; and (c) I have twenty-one (21) days from the date of
termination of my employment with the Company in which to consider this Release and Waiver (although I may choose voluntarily to execute this Release and Waiver earlier); (d) I have seven (7) days following the execution of this Release
and Waiver to revoke my consent to this Release and Waiver; and (e) this Release and Waiver shall not be effective until the seven (7) day revocation period has expired unexercised. If I am less than 40 years of age upon execution of this
Release and Waiver, I acknowledge that I have the right to consult with an attorney prior to executing this Release and Waiver (although I may choose voluntarily not to do so); and (c) I have five (5) days from the date of termination of
my employment with the Company in which to consider this Release and Waiver (although I may choose voluntarily to execute this Release and Waiver earlier). 

I acknowledge my continuing obligations under my Confidential Information and Inventions Agreement dated
            , 2009. Pursuant to the Confidential Information and Inventions Agreement I understand that among other things, I must not use or disclose any confidential or proprietary
information of the Company and I must immediately return all Company property and documents (including all embodiments of proprietary information) and all copies thereof in my possession or control. I understand and agree that my right to the
payments and other benefits I am receiving in exchange for my agreement to the terms of this Release and Waiver is contingent upon my continued compliance with my Confidential Information and Inventions Agreement. 

This Release and Waiver, including my Confidential Information and Inventions Agreement dated
            , 2009, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on
any promise or representation by the Company that is not expressly stated herein. This Release and Waiver may only be modified by a writing signed by both me and a duly authorized officer of the Company. 

 

			
	 Date:
	 	
		
	 By:
	 	
	
	 Jeffrey W. Sherman, M.D.



  
 16 













 HORIZON PHARMA, INC. 

FIRST AMENDMENT TO 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT 

This First Amendment to Amended and Restated Executive Employment Agreement (this “Amendment”), amending that certain
Amended and Restated Executive Employment Agreement (the “Employment Agreement”), dated July 27, 2010, by and among Horizon Pharma, Inc., a Delaware corporation, and its wholly owned subsidiary, Horizon Pharma USA, Inc.,
a Delaware corporation (hereinafter referred to together as the “Company”), and Jeffrey W. Sherman, M.D. (the “Executive”), is entered into as of January 16, 2014 by and among the Company and the
Executive. Capitalized terms used herein which are not defined herein shall have the definition ascribed to them in the Employment Agreement. 

RECITALS 

WHEREAS, the Company and the Executive have previously entered into the Employment Agreement; 

WHEREAS, Section 9 of the Employment Agreement provides that the Employment Agreement may be amended
with the written agreement of the Company and the Executive; and 
 WHEREAS, the Company and the
Executive desire to amend the Employment Agreement as set forth herein. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing and the promises and covenants contained
herein and in the Employment Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows: 

1. Section 4.4.3 of the Employment Agreement. Section 4.4.3 of the Employment Agreement is hereby amended and
restated in its entirety to read as follows: 
 “4.4.3 Without Cause or For Good Reason. 

(i) Not in Connection With a Change in Control. If the Company terminates the Executive’s employment without Cause
or the Executive terminates his employment for Good Reason, and Section 4.4.3(ii) below does not apply, the Company shall pay the Accrued Amounts subject to standard deductions and withholdings, to be paid as a lump sum no later than thirty
(30) days after the date of termination. In addition, subject to the limitations stated in this Agreement and upon the Executive’s furnishing to the Company an executed waiver and release of claims (the form of which is attached hereto as
Exhibit A) (the “Release”) within the applicable time period set forth therein, but in no event later than forty-five days following termination of employment and 

  
 1 













 permitting such Release to become effective in accordance with its terms (the
“Release Effective Date”), and subject to Executive entering into no later than the Release Effective Date a non-competition agreement to be effective during the Severance Period (as
defined below), substantially similar to Section 2.3, and continuing to abide by its terms during the Severance Period, the Executive shall be entitled to the following benefits subject to the following terms and conditions: 

(a) continued payment of Executive’s Base Salary in effect at the time of termination will be paid for a period of
up to twelve (12) months after the date of termination (the “Severance Period”), less standard deductions and withholdings, to be paid in accordance with the Company’s standard payroll practices; subject to any
delay in payment required by Section 4.6 in connection with the Release Effective Date; 
 (b) in the event the
Executive timely elects continued coverage under COBRA, the Company will continue to pay the same portion of Executive’s COBRA health insurance premium as the percentage of health insurance premiums that it paid during the Executive’s
employment, including any amounts that Company paid for benefits to the qualifying family members of the Executive, following the date of termination up until the earlier of either (i) the last day of the Severance Period or, (ii) the date
on which the Executive begins full-time employment with another company or business entity which offers comparable health insurance coverage to the Executive (such period, the “COBRA Payment Period”). Notwithstanding the
foregoing, if the Company determines, in its sole discretion, that the Company cannot provide the COBRA premium benefits without potentially incurring financial costs or penalties under applicable law (including, without limitation,
Section 2716 of the Public Health Service Act), the Company shall in lieu thereof pay Executive a taxable cash amount, which payment shall be made regardless of whether the Executive or his qualifying family members elect COBRA continuation
coverage (the “Health Care Benefit Payment”). The Health Care Benefit Payment shall be paid in monthly or bi-weekly installments on the same schedule that the COBRA premiums would
otherwise have been paid to the insurer. The Health Care Benefit Payment shall be equal to the amount that the Company otherwise would have paid for COBRA insurance premiums (which amount shall be calculated based on the premium for the first month
of coverage), and shall be paid until the expiration of the COBRA Payment Period; and 
 (c) notwithstanding anything
to the contrary set forth herein, the Severance Period, and the Company’s provisions of cash severance benefits to Executive under Section 4.4.3(i)(a) shall immediately cease upon the date that Executive begins full-time employment with
another company or business entity which offers base compensation to Executive of at least ninety-five percent (95%) of Executive’s Base Salary amount in effect at the time of termination. Executive agrees to immediately notify the Company
in writing of any such employment. 

  
 2 













 (ii) In Connection With a Change in Control. If the Company (or its
successor) terminates the Executive’s employment without Cause or the Executive terminates his employment for Good Reason within the period commencing ninety (90) days immediately prior to a Change in Control of the Company and ending
eighteen (18) months immediately following a Change in Control of the Company (as defined in Section 4.5.4 of this Agreement), the Executive shall receive the Accrued Amounts subject to standard deductions and withholdings, to be paid as a
lump sum no later than thirty (30) days after the date of termination. In addition, subject to the limitations stated in this Agreement and upon the Executive’s furnishing to the Company (or its successor) an executed Release within the
applicable time period set forth therein, but in no event later than forty-five days following termination of employment and permitting such Release to become effective in accordance with its terms, and subject to Executive entering into no later
than the Release Effective Date a non-competition agreement to be effective during the Severance Period, substantially similar to Section 2.3, and continuing to abide by its terms during the Severance
Period, then in lieu of (and not additional to) the benefits provided pursuant to Section 4.4.3(i) above, the Executive shall be entitled to the following benefits subject to the following terms and conditions: 

(a) continued payment of Executive’s Base Salary in effect at the time of termination will be paid during the
Severance Period, less standard deductions and withholdings, to be paid in accordance with the Company’s standard payroll practices; subject to any delay in payment required by Section 4.6 in connection with the Release Effective Date;

 (b) Executive’s target Bonus in effect at the time of termination, or if none, the last target Bonus in effect
for Executive, less standard deductions and withholdings, to be paid in a lump sum within ten (10) days following the later of (i) the Release Effective Date, or (ii) the effective date of the Change in Control; 

(c) in the event the Executive timely elects continued coverage under COBRA, the Company will continue to pay the same
portion of Executive’s COBRA health insurance premium as the percentage of health insurance premiums that it paid during the Executive’s employment, including any amounts that Company paid for benefits to the qualifying family members of
the Executive, following the date of termination until the expiration of the COBRA Payment Period. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that the Company cannot provide the COBRA premium benefits without
potentially incurring financial costs or penalties under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof pay Executive the Health Care Benefit Payment, which
payment shall be made regardless of whether the Executive or his qualifying family members elect COBRA continuation coverage. The Health Care Benefit Payment shall be paid in monthly or bi-weekly 

  
 3 













 installments on the same schedule that the COBRA premiums would otherwise have been paid to
the insurer. The Health Care Benefit Payment shall be equal to the amount that the Company otherwise would have paid for COBRA insurance premiums (which amount shall be calculated based on the premium for the first month of coverage), and shall be
paid until the expiration of the COBRA Payment Period; and 
 (d) notwithstanding anything to the contrary set forth
herein, the Severance Period, and the Company’s provisions of cash severance benefits to Executive under Section 4.4.3(ii)(a) shall immediately cease upon the date that Executive begins full-time employment with another company or business
entity which offers base compensation to Executive of at least ninety-five percent (95%) of Executive’s Base Salary amount in effect at the time of termination. Executive agrees to immediately notify the Company in writing of any such
employment. 
 (iii) No Duplication of Benefits. For the avoidance of doubt, in no event will Executive be entitled to
benefits under Section 4.4.3(i) and Section 4.4.3(ii). If Executive commences to receive benefits under Section 4.4.3(i) due to a qualifying termination prior to a Change in Control and thereafter becomes entitled to benefits under
Section 4.4.3(ii), any benefits previously provided to Executive under Section 4.4.3(i) shall offset the benefits to be provided to Executive under Section 4.4.3(ii) and shall be deemed to have been provided to Executive pursuant to
Section 4.4.3(ii).” 
 2. Effect of Amendment. Except as expressly modified by this Amendment, the Employment Agreement
shall remain unmodified and in full force and effect. 
 3. Governing Law. This Amendment shall be governed by the laws of the State
of Illinois, without regard to any conflicts of law principals thereof that would call for the application of the laws of any other jurisdiction. 

4. Counterparts. This Amendment may be executed via facsimile or electronic (i.e., PDF) transmission and in any number of counterparts,
each of which shall be deemed an original, but all of which together shall constitute one instrument. 
 [Remainder of Page Intentionally
Left Blank] 

  
 4 













 IN WITNESS WHEREOF, the
parties have executed this First Amendment to Amended and Restated Executive Employment Agreement as of the date first written above. 
  

			
	COMPANY:
	
	HORIZON PHARMA, INC.
	HORIZON PHARMA USA, INC.
		
	By:	 	 /s/ Robert J. De Vaere

	Name:	 	Robert J. De Vaere
	Title:	 	Executive VP, CFO
	
	EXECUTIVE:
	
	 /s/ Jeffrey W. Sherman, M.D.

	JEFFREY W. SHERMAN, M.D.













 HORIZON PHARMA, INC. 

SECOND AMENDMENT TO 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT 

This Second Amendment to Amended and Restated Executive Employment Agreement (this “Amendment”), amending that
certain Amended and Restated Executive Employment Agreement dated July 27, 2010 as amended January 16, 2014 (the “Employment Agreement”), by and among Horizon Pharma, Inc., a Delaware corporation, and its wholly
owned subsidiary, Horizon Pharma USA, Inc., a Delaware corporation (hereinafter referred to together as the “Company”), and Jeffrey W. Sherman, M.D. (the “Executive”), is entered into as of May 4,
2017 by and among the Company and the Executive. Capitalized terms used herein which are not defined herein shall have the definition ascribed to them in the Employment Agreement. 

RECITALS 

WHEREAS, the Company and the Executive have previously entered into the Employment Agreement; 

WHEREAS, Section 9 of the Employment Agreement provides that the Employment Agreement may be amended
with the written agreement of the Company and the Executive; and 
 WHEREAS, the Company and the
Executive desire to amend the Employment Agreement as set forth herein. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing and the promises and covenants contained
herein and in the Employment Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows: 

1. Section 4.4.3 of the Employment Agreement. Section 4.4.3 of the Employment Agreement is hereby amended and
restated in its entirety to read as follows: 
 “4.4.3 Without Cause or For Good Reason.  

(i) Not in Connection With a Change in Control. If the Company terminates the Executive’s employment without Cause
or the Executive terminates his employment for Good Reason, and Section 4.4.3(ii) below does not apply, the Company shall pay the Accrued Amounts subject to standard deductions and withholdings, to be paid as a lump sum no later than thirty
(30) days after the date of termination. In addition, subject to the limitations stated in this Agreement and upon the Executive’s furnishing to the Company an executed waiver and release of claims (the form of which is attached hereto as


  
 1 













 
Exhibit A) (the “Release”) within the applicable time period set forth therein, but in no event later than forty-five days following termination of employment and
permitting such Release to become effective in accordance with its terms (the “Release Effective Date”), and subject to Executive entering into no later than the Release Effective Date a
non-competition agreement to be effective during the Severance Period (as defined below), substantially similar to Section 2.3, and continuing to abide by its terms during the Severance Period, the
Executive shall be entitled to the following benefits subject to the following terms and conditions: 
 (a) the
equivalent of the Executive’s Base Salary in effect at the time of termination will continue to be paid for a period of up to twelve (12) months following the date of termination (hereinafter referred to as the “Non Change
in Control Severance Period”), less standard deductions and withholdings, to be paid during the Non Change in Control Severance Period according to the Company’s regular payroll practices, subject to any delay in payment required
by Section 4.6 in connection with the Release Effective Date; 
 (b) in the event the Executive timely elects
continued coverage under COBRA, the Company will continue to pay the same portion of Executive’s COBRA health insurance premium as the percentage of health insurance premiums that it paid during the Executive’s employment, including any
amounts that Company paid for benefits to the qualifying family members of the Executive, following the date of termination up until the earlier of either (i) the last day of the Non Change in Control Severance Period or, (ii) the date on
which the Executive begins full-time employment with another company or business entity which offers comparable health insurance coverage to the Executive (such period, the “Non Change in Control COBRA Payment Period”).
Notwithstanding the foregoing, if the Company determines, in its sole discretion, that the Company cannot provide the COBRA premium benefits without potentially incurring financial costs or penalties under applicable law (including, without
limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof pay Executive a taxable cash amount, which payment shall be made regardless of whether the Executive or his qualifying family members elect COBRA
continuation coverage (the “Health Care Benefit Payment”). The Health Care Benefit Payment shall be paid in monthly or bi-weekly installments on the same schedule that the COBRA
premiums would otherwise have been paid to the insurer. The Health Care Benefit Payment shall be equal to the amount that the Company otherwise would have paid for COBRA insurance premiums (which amount shall be calculated based on the premium for
the first month of coverage), and shall be paid until the expiration of the Non Change in Control COBRA Payment Period; and 

(c) notwithstanding anything to the contrary set forth herein, the Non Change in Control Severance Period, and the
Company’s 

  
 2 













 provisions of cash severance benefits to Executive under Section 4.4.3(i)(a) shall
immediately cease upon the date that Executive begins full-time employment with another company or business entity which offers base compensation to Executive of at least ninety-five percent (95%) of Executive’s Base Salary amount in effect at
the time of termination. Executive agrees to immediately notify the Company in writing of any such employment. 
 (ii)
In Connection With a Change in Control. If the Company (or its successor) terminates the Executive’s employment without Cause or the Executive terminates his employment for Good Reason within the period commencing three (3) months
immediately prior to a Change in Control of the Company and ending eighteen (18) months immediately following a Change in Control of the Company (as defined in Section 4.5.4 of this Agreement), the Executive shall receive the Accrued
Amounts subject to standard deductions and withholdings, to be paid as a lump sum no later than thirty (30) days after the date of termination. In addition, subject to the limitations stated in this Agreement and upon the Executive’s
furnishing to the Company (or its successor) an executed Release within the applicable time period set forth therein, but in no event later than forty-five days following termination of employment and permitting such Release to become effective in
accordance with its terms, and subject to Executive entering into no later than the Release Effective Date a non-competition agreement to be effective during the Severance Period, substantially similar to
Section 2.3, and continuing to abide by its terms during the Severance Period, then in lieu of (and not additional to) the benefits provided pursuant to Section 4.4.3(i) above, the Executive shall be entitled to the following benefits
subject to the following terms and conditions: 
 (a) the equivalent of the Executive’s Base Salary in effect at
the time of termination will continue to be paid for a period of up to eighteen (18) months following the date of termination (hereinafter referred to as the “Change in Control Severance Period”), less standard
deductions and withholdings, to be paid during the Change in Control Severance Period according to the Company’s regular payroll practices, subject to any delay in payment required by Section 4.6 in connection with the Release Effective
Date; 
 (b) one and half (1.5) times Executive’s target Bonus in effect at the time of termination, or if none,
one and half (1.5) times the last target Bonus in effect for Executive, less standard deductions and withholdings, to be paid in a lump sum within ten (10) days following the later of (i) the Release Effective Date, or (ii) the
effective date of the Change in Control; and 
 (c) in the event the Executive timely elects continued coverage under
COBRA, the Company will continue to pay the same portion of Executive’s COBRA health insurance premium as the percentage of health insurance premiums that it paid during the Executive’s employment, including 

 

  
 3 













 any amounts that Company paid for benefits to the qualifying family members of the
Executive, following the date of termination until the expiration of the Change in Control Severance Period. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that the Company cannot provide the COBRA premium benefits
without potentially incurring financial costs or penalties under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof pay Executive the Health Care Benefit Payment,
which payment shall be made regardless of whether the Executive or his qualifying family members elect COBRA continuation coverage. The Health Care Benefit Payment shall be paid in monthly or bi-weekly
installments on the same schedule that the COBRA premiums would otherwise have been paid to the insurer. The Health Care Benefit Payment shall be equal to the amount that the Company otherwise would have paid for COBRA insurance premiums (which
amount shall be calculated based on the premium for the first month of coverage), and shall be paid until the expiration of the Change in Control Severance Period; and 

(d) notwithstanding anything to the contrary set forth herein, the Change in Control Severance Period, and the
Company’s provisions of cash severance benefits to Executive under Section 4.4.3(ii)(a) shall immediately cease upon the date that Executive begins full-time employment with another company or business entity which offers base compensation
to Executive of at least ninety-five percent (95%) of Executive’s Base Salary amount in effect at the time of termination. Executive agrees to immediately notify the Company in writing of any such employment. 

(iii) No Duplication of Benefits. For the avoidance of doubt, in no event will Executive be entitled to benefits
under Section 4.4.3(i) and Section 4.4.3(ii). If Executive commences to receive benefits under Section 4.4.3(i) due to a qualifying termination prior to a Change in Control and thereafter becomes entitled to benefits under
Section 4.4.3(ii), any benefits previously provided to Executive under Section 4.4.3(i) shall offset the benefits to be provided to Executive under Section 4.4.3(ii) and shall be deemed to have been provided to Executive pursuant to
Section 4.4.3(ii).” 
 2. Section 4.4.4 of the Employment Agreement. Section 4.4.4 of the
Employment Agreement is hereby amended and restated in its entirety to read as follows: 
 “4.4.4 Equity Award
Acceleration. 
 (i) Not in Connection With a Change in Control. In the event that the Executive’s employment
is terminated without Cause or for Good Reason and Section 4.4.4 (ii) below does not apply, the vesting of any equity awards granted to Executive that vest solely subject to Executive’s continued 

  
 4 













 services to the Company (the “Time-Based Vesting Equity Awards”)
shall be deemed vested and immediately exercisable (if applicable) by the Executive with respect to such number of shares as determined in accordance with their applicable vesting schedules as if Executive had provided an additional twelve
(12) months of services as of the date of termination. Treatment of any performance based vesting equity awards granted to Executive will in all cases be governed solely by the terms of the equity award plan or agreement under which they were
granted and will not be eligible to accelerate vesting pursuant to the foregoing provision. 
 (ii) In Connection
With a Change in Control. In the event that the Executive’s employment is terminated without Cause or for Good Reason within the three (3) months immediately preceding or during the eighteen (18) months immediately following a
Change in Control of the Company (as defined in Section 4.5.4 of this Agreement), the vesting of any Time-Based Vesting Equity Awards granted to Executive shall be fully accelerated such that on the effective date of such termination one
hundred percent (100%) of any Time-Based Vesting Equity Awards granted to Executive prior to such termination shall be fully vested and immediately exercisable (if applicable) by the Executive. Treatment of any performance based vesting equity
awards granted to Executive will in all cases be governed solely by the terms of the equity award plan or agreement under which they were granted and will not be eligible to accelerate vesting pursuant to the foregoing provision. 

(iii) Release and Waiver. Any equity vesting acceleration pursuant to this Section 4.4.4 shall be
conditioned upon and subject to the Executive’s delivery to the Company of a fully effective Release in accordance with the terms specified by Section 4.4.3 hereof and such vesting acceleration benefit shall be in addition to the benefits
provided by Section 4.4.3 hereof.” 
 3. Effect of Amendment. Except as expressly modified by this Amendment, the
Employment Agreement shall remain unmodified and in full force and effect. 
 4. Governing Law. This Amendment shall be governed by
the laws of the State of Illinois, without regard to any conflicts of law principals thereof that would call for the application of the laws of any other jurisdiction. 

5. Counterparts. This Amendment may be executed via facsimile or electronic (i.e., PDF) transmission and in any number of counterparts,
each of which shall be deemed an original, but all of which together shall constitute one instrument. 
 [Remainder of Page Intentionally
Left Blank] 

  
 5 













 IN WITNESS WHEREOF, the
parties have executed this Second Amendment to Amended and Restated Executive Employment Agreement as of the date first written above. 
  

			
	COMPANY:
	
	 HORIZON PHARMA, INC.

HORIZON PHARMA USA, INC.

		
	By:	 	 /s/ Timothy P. Walbert

	TIMOTHY P. WALBERT, CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER
	
	EXECUTIVE:
	
	 /s/ Jeffrey W. Sherman

	JEFFREY W. SHERMAN, M.D.