Document:

sbbp_Ex10_9

		
			Exhibit 10.9
		

		
			amended and restated EMPLOYMENT AGREEMENT
		

		
			THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is made by and between Cortendo AB, a Swedish limited liability company (the “Company”), and Ruth Thieroff-Ekerdt (“Executive”) as of November 2, 2015.
		

		
			W I T N E S S E T H:
		

		
			WHEREAS,  the Company and Executive entered into an employment agreement dated December 15, 2014 (the “Effective Date”) (such agreement, the “Prior Agreement”);
		

		
			WHEREAS, the Company desires to continue to retain the services of Executive as set forth in this Agreement, and Executive desires to serve the Company in such capacity, subject to the terms and conditions of this Agreement; and
		

		
			WHEREAS, the Company and Executive intend for this Agreement to replace the Prior Agreement except as otherwise set forth herein. 
		

		
			NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations contained herein, Company and Executive agree as follows:
		

		
			ARTICLE I
		

		
			EMPLOYMENT AND DUTIES
		

		
			Section 1.01Employment and Term.  Executive shall be employed by the Company for the period commencing on the Effective Date and expiring on the third anniversary of the Effective Date, unless sooner terminated as set forth in this Agreement (the “Term”); provided, however, that the Term shall thereafter be automatically extended for additional one-year periods unless, at least ninety (90) days prior to expiration of the Term, either (a) the Company gives notice to Executive not to extend the Term or (b) Executive gives notice to the Company not to extend the Term.
		

		
			Section 1.02Position and Duties.  Executive shall serve as Chief Medical Officer of the Company, or in such other positions as the parties may agree.  Executive shall have the duties and responsibilities customarily associated with such position and will perform such other duties as reasonably directed by the Chief Executive Officer of the Company (the “CEO”) consistent with such position(s).
		

		
			Section 1.03Scope.  Executive will devote substantially all of her business time, attention, skills and efforts to the performance of her duties.  Executive acknowledges that her duties and responsibilities require Executive’s full-time business efforts and agrees to not engage in any other business activity or interests which materially interfere or conflict with the performance of Executive’s duties.  Notwithstanding the foregoing, Executive may (a) serve on corporate, civic or charitable boards or committees of entities that do not compete with the Company, with the approval of the CEO, (b) deliver a reasonable number of lectures or fulfill 
		

		
			
		

		 

 

		
			speaking engagements, with the approval of the CEO, or (c) manage personal investments, so long as such activities do not significantly interfere with the performance of Executive’s duties.
		

		
			ARTICLE II
		

		
			COMPENSATION AND BENEFITS
		

		
			Section 2.01Base Salary.  During the Term, the Company will pay Executive a base salary (the “Base Salary”) at an initial rate of $365,000 per year in accordance with the Company’s standard payroll practices.  The Base Salary will be reviewed at least annually by the Board of Directors of the Company (the “Board”) or a committee thereof and may be adjusted (in which case such adjusted amount shall be the “Base Salary”).  
		

		
			Section 2.02Annual Incentive.  During Executive’s employment with the Company, and as determined by the Board in its sole discretion, Executive shall be eligible for an annual cash incentive (the “Annual Incentive”) with a target of 40% of Base Salary (such percentage, the “Target Annual Incentive”). The Annual Incentive shall be based on the achievement of predetermined performance goals as determined annually by the CEO and the Board, which shall be provided to the Executive in writing no later than thirty (30) days following the beginning of the year to which they relate.  The actual Annual Incentive earned in any particular year may be greater or lower than the Target Annual Incentive, depending on the level of achievement of the applicable performance goals and the discretion of the Board.  The Annual Incentive shall be paid to Executive as soon as practicable, but in no event later than the date that is two-and-one-half months following the end of the taxable year (of Executive, or the Company, whichever is later) in which such incentive is earned.  
		

		
			Section 2.03Long Term Incentive Plans.  Executive shall be eligible to receive grants under the Company’s long term incentive plans (including stock option, restricted stock and other equity compensation plans and any other long-term incentive plans) at the discretion of the CEO and the Board.  
		

		
			Section 2.04Business and Entertainment Expenses. Subject to the Company’s standard policies and procedures for expense reimbursement as applied to its executive employees generally, the Company shall reimburse Executive for, or pay on behalf of Executive, reasonable out-of-pocket business expenses incurred by Executive on behalf of the Company.
		

		
			Section 2.05Other Company Benefits.  Executive shall be entitled to participate in all employee benefit plans, practices and programs maintained by the Company and made available to its similarly situated executives, including the Company’s paid time-off policy.  Executive shall also be entitled to paid time-off for all holidays in the U.S. in accordance with the applicable Company policy.
		

		
			
		

		 

		

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			ARTICLE III
		

		
			TERMINATION
		

		
			Section 3.01General.    The Company may terminate Executive’s employment for any reason or no reason, and Executive may terminate his employment for any reason or no reason, in either case subject only to the terms of this Agreement.  For purposes of this Agreement, the following terms have the following meanings:
		

		
			(a)“Accrued Obligations” shall mean: (i) Executive’s earned but unpaid Base Salary through the Termination Date; (ii) payment of any annual, long-term, or other incentive award which relates to a completed fiscal year or performance period, as applicable, and is payable (but not yet paid) on or before the Termination Date; (iii) a lump-sum payment in respect of accrued but unused vacation days at Executive’s per-business-day Base Salary rate in effect as of the Termination Date; and (iv) any unpaid expense or other reimbursements due pursuant to Section 2.04 hereof.
		

		
			(b)“Cause” shall mean (i) Executive’s conviction of, or plea of guilty or nolo contendere to, any felony or any crime involving theft, embezzlement, dishonesty or moral turpitude; (ii) any act by Executive constituting willful misconduct, deliberate malfeasance, dishonesty, unethical conduct or gross negligence in the performance of his duties; (iii) Executive’s willful and continued failure to perform any of the duties of his position (which has not been cured within thirty (30) days following the first written notice from the Company describing such failure in reasonable detail); or (iv) any material breach (which has not been cured within thirty (30) days following the first written notice from the Company describing such breach in reasonable detail) by Executive of this Agreement or any other agreement between Executive and the Company or any of its affiliates.
		

		
			(c)“Change in Control”  shall mean the occurrence of any of the following:
		

		
			(i)any person or group of persons becomes the beneficial 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 (a “Majority of the Securities”); provided that if the person or group of persons is already deemed to own more than 50% of the total fair market value or total voting power, then the acquisition of additional stock by such person or group of persons shall not constitute an additional Change in Control;
		

		
			(ii)the stockholders of the Company approve a plan of complete liquidation of the Company;
		

		
			(iii)the sale or disposition of all or substantially all of the Company’s assets;
		

		
			(iv)a merger, consolidation or reorganization of the Company with or involving any other entity, other than a merger, consolidation or reorganization that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted 
		

		
			
		

		
			

		 

		

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into voting securities of the surviving entity) at least a 50% of the combined voting power of the Company (or such surviving entity) outstanding immediately after such merger, consolidation or reorganization owned in approximately the same proportion of such ownership by each of the prior shareholders as prior to the transaction.
		

		
			(v)Notwithstanding the foregoing, the following acquisitions shall not constitute a Change in Control: (A) an acquisition by the Company or entity controlled by the Company, or (B) an acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company.
		

		
			(d)“Disability” shall mean Executive’s becoming incapacitated for a period of at least one hundred eighty (180) days by accident, sickness or other circumstance that renders Executive mentally or physically incapable of performing the material duties and services required of Executive hereunder on a full-time basis during such period.  A termination of Executive’s employment due to a Disability shall be effective only if the party terminating Executive’s employment first gives at least fifteen (15) days’ written notice of such termination to the other party.
		

		
			(e)“Good Reason” shall mean, without Executive’s express written consent, the occurrence of any one or more of the following: (i) a material diminution by the Company of Executive’s Base Salary, other than any diminution that is also applicable in a substantially similar manner and proportion to the other senior executives of the Company; (ii) the assignment to Executive of duties or responsibilities which are materially inconsistent with Executive’s position; (iii) a change in the principal location at which Executive performs his duties for the Company to a new location that is more than fifty (50) miles from the prior location; or (iv) an action or inaction that constitutes a material breach of this Agreement by the Company.  
		

		
			A termination of employment by Executive for Good Reason shall be effectuated by giving the Company written notice (“Notice of Termination for Good Reason”), not later than thirty (30) days following the occurrence of the circumstance that constitutes Good Reason, setting forth in reasonable detail the specific conduct of the Company that constitutes Good Reason and the specific provision(s) of this Agreement on which Executive relied.  The Company shall be entitled, during the forty-five (45) day period following receipt of a Notice of Termination for Good Reason, to cure the circumstances that gave rise to Good Reason, provided that the Company shall be entitled to waive its right to cure or reduce the cure period by delivery of written notice to that effect to Executive (such forty-five (45) day or shorter period, the “Cure Period”).  If, during the Cure Period, such circumstance is remedied, Executive will not be permitted to terminate employment for Good Reason as a result of such circumstance.  If, at the end of the Cure Period, the circumstance that constitutes Good Reason has not been remedied, Executive will be entitled to terminate employment for Good Reason during the thirty (30) day period that follows the end of the Cure Period.  If Executive does not terminate employment during such thirty (30) day period, Executive will not be permitted to terminate employment for Good Reason as a result of such event.  
		

		
			(f)“Pro-Rata Annual Incentive” shall mean an amount equal to (i) the Annual Incentive that Executive would have been entitled to receive for the calendar year that includes the Termination Date if his employment hereunder had continued (as determined by the Board 
		

		
			
		

		 

		

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			based upon the actual achievement of the applicable performance goals), multiplied by (ii) a fraction, the numerator of which is the number of days he was employed hereunder during such year and the denominator of which is the number of days in such year.
		

		
			(g)“Termination Date” shall mean the date on which Executive’s employment hereunder terminates (which, in the case of a notice of non-renewal of the Term in accordance with Article I hereof, shall mean the date on which the Term expires, provided that Executive’s employment is terminated on such date due to the non-renewal of the Term).
		

		
			Section 3.02Termination Without Cause or by Executive With Good Reason.  If the Company terminates Executive’s employment without Cause, or Executive terminates for Good Reason, the Term shall expire on the Termination Date and Executive shall be entitled to: (a) the Accrued Obligations; (b) an amount equal to the sum of (i) twelve (12) months of the annual Base Salary as in effect immediately prior to the Termination Date and (ii) the Target Annual Incentive, paid in equal installments on the normal payroll cycle over the twelve (12) month period that begins on the sixtieth (60th) day following the Termination Date; (c) the Pro-Rata Annual Incentive, payable in a cash lump sum to Executive on the date Company pays its annual incentive compensation bonuses for the year that includes the Termination Date if Executive’s employment continued; and (d) medical, dental benefits provided by the Company to Executive and Executive’s spouse and dependents (in each case, as provided in any applicable plan) at least equal to the levels of benefits provided to other similarly situated active employees of the Company and its subsidiaries until the earlier of (i) the one-year anniversary of the Termination Date or (ii) the date that Executive becomes covered under a subsequent employer’s medical and dental plans.
		

		
			Section 3.03Termination Due to Non-Renewal of the Term by the Company. If Executive’s employment is terminated due to the non-renewal of the Term by the Company pursuant to Section 1.01, Executive shall be entitled to: (a) the Accrued Obligations; (b) an amount equal to the sum of (i) six (6) months of the annual Base Salary as in effect immediately prior to the Termination Date and (ii) one-half of the Target Annual Incentive, paid in equal installments on the normal payroll cycle over the six (6) month period that begins on the sixtieth (60th) day following the Termination Date; (c) the Pro-Rata Annual Incentive, payable in a cash lump sum to Executive on the date Company pays its annual incentive compensation bonuses for the year that includes the Termination Date if Executive’s employment had continued; and (d) medical, dental benefits provided by the Company to Executive and Executive’s spouse and dependents (in each case, as provided in any applicable plan) at least equal to the levels of benefits provided to other similarly situated active employees of the Company and its subsidiaries until the earlier of (i) the six-month anniversary of the Termination Date or (ii) the date that Executive becomes covered under a subsequent employer’s medical and dental plans. 
		

		
			Section 3.04Termination Without Cause, by Executive With Good Reason, or Due to Non-Renewal of the Term by the Company following a Change in Control of the Company.  If the Company terminates Executive’s employment without Cause, Executive terminates for Good Reason, or Executive’s employment is terminated due to the non-renewal of the Term by the Company pursuant to Section 1.01, in any case, within twenty four (24) months following the occurrence of Change in Control, the Term shall expire on the Termination Date and, in lieu of the benefits set forth in Section 3.02 or 3.03, Executive shall be entitled to: (a) the 
		

		
			
		

		 

		

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			Accrued Obligations; (b) an amount equal to the sum of (i) eighteen (18) months of the annual Base Salary as in effect immediately prior to the Termination Date and (ii) the Target Annual Incentive, paid in equal installments on the normal payroll cycle over the eighteen (18) month period that begins on the sixtieth (60th) day following the Termination Date; (c) the Pro-Rata Annual Incentive, payable in a cash lump sum to Executive on the date Company pays its annual incentive compensation bonuses for the year that includes the Termination Date if Executive’s employment continued; (d) medical, dental benefits provided by the Company to Executive and Executive’s spouse and dependents (in each case, as provided in any applicable plan) at least equal to the levels of benefits provided to other similarly situated active employees of the Company and its subsidiaries until the earlier of (i) the one-year anniversary of the Termination Date or (ii) the date that Executive becomes covered under a subsequent employer’s medical and dental plans; and (e) the acceleration of vesting of all unvested equity or equity-based awards held by Executive as of the Termination Date.
		

		
			Section 3.05Other Terminations.  If Executive’s employment hereunder is terminated (a) by Executive without Good Reason; (b) by the Company for Cause; (c) due to non-renewal of the Term by Executive; or (d) due to Executive’s death or Executive’s Disability, the Term shall expire as of the Termination Date and Executive and/or Executive’s estate or beneficiaries shall be entitled to the Accrued Obligations.    
		

		
			Section 3.06Release.  Executive’s entitlement to the payments (other than the Accrued Obligations) and benefits described in this Article III is expressly contingent upon Executive providing the Company with a signed release that is attached hereto as Attachment A (the “Release”).  To be effective, such Release must be delivered by Executive to the Company no later than 45 days following the Termination Date and must not be revoked during the seven (7) days following such delivery.  If such Release is not executed in a timely manner or is revoked, all such payments and benefits shall immediately cease and Executive shall be required to repay to the Company any such payments that have already been paid to Executive.
		

		
			ARTICLE IV
		

		
			RESTRICTIVE COVENANTS
		

		
			Section 4.01Confidentiality.  
		

		
			(a)Company Information.  Executive agrees at all times during the Term of this Agreement and thereafter, to hold in strictest confidence, and not to use, except in connection with the performance of Executive's duties, and not to disclose to any person or entity without written authorization of the Company, any Confidential Information of the Company.  As used herein, “Confidential Information” means any Company proprietary or confidential information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, customer lists and customers, markets, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, marketing, distribution and sales methods and systems, sales and profit figures, finances and other business information disclosed to Executive by the Company, either directly or indirectly in writing, orally or by drawings or inspection of documents or other tangible property. 
		

		
			
		

		 

		

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			However, Confidential Information does not include any of the foregoing items which has become publicly known and made generally available through no wrongful act of Executive.
		

		
			(b)Executive-Restricted Information.  Executive agrees that during the Term of this Agreement Executive will not improperly use or disclose any proprietary or confidential information or trade secrets of any person or entity with whom Executive has an agreement or duty to keep such information or secrets confidential.
		

		
			(c)Third Party Information.  Executive recognizes that the Company has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company's part to maintain the confidentiality of such information and to use it only for certain limited purposes.  Executive agrees at all times during the Term of this Agreement and thereafter, to hold in strictest confidence, and not to use, except in connection with the performance of Executive's duties, and not to disclose to any person or entity, or to use it except as necessary in performing Executive’s duties, consistent with the Company's agreement with such third party. 
		

		
			Section 4.02Non-Competition.  
		

		
			(a)Executive acknowledges that, during the Term, Executive has had access to information concerning the Company’s critical business strategies, engineering and technology development plans, competitive analyses, organizational structure. Accordingly, in consideration of the compensation provided under this Agreement, Executive agrees that during the Term and for the one (1) year period thereafter, Executive will not directly or indirectly, own, manage, operate, control (including indirectly through a debt or equity investment), provide services to, or be employed by, any person or entity engaged in any business that is (i) located in or provides services or products to a region in which the Company does business, and (ii) competitive with the business activities of the Company as they existed during the period that Executive provided services to the Company.
		

		
			(b)Executive acknowledges that the restrictions contained under this Section 4.02 are reasonable and necessary to protect the legitimate interests of the Company, that the Company would not have executed this Agreement in the absence of such restrictions, and that any violation of any provision of this paragraph will result in irreparable injury to the Company.  In the event the provisions under this Section 4.02 shall ever be deemed to exceed the time, scope or geographic limitations permitted by applicable laws, then such provisions shall be reformed to the maximum time, scope or geographic limitations, as the case may be, permitted by applicable laws.
		

		
			Section 4.03Injunctive Relief.  Executive agrees that it is impossible to measure in money the damages which will accrue to the Company by reason of a failure by Executive to perform any of Executive’s obligations under this Article IV.  Accordingly, if Company or any of its affiliates institutes any action or proceeding to enforce its rights under this Article IV, to the extent permitted by applicable law, Executive hereby waives the claim or defense that the Company or its affiliates has an adequate remedy at law, and Executive shall not claim that any such remedy at law exists.
		

		
			
		

		 

		

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			ARTICLE V
		

		
			MISCELLANEOUS
		

		
			Section 5.01Withholding.  The Company shall withhold all applicable federal, state and local taxes, social security and workers’ compensation contributions and other amounts as may be required by law with respect to compensation payable to Executive. 
		

		
			Section 5.02Modification of Payments.  
		

		
			(a)In the event it shall be determined that any payment, right or distribution by the Company or any other person or entity to or for the benefit of Executive pursuant to the terms of this Agreement or otherwise, in connection with, or arising out of, his employment with the Company or a change in ownership or effective control of the Company or a substantial portion of its assets (a “Payment”) is a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) on account of the aggregate value of the Payments due to Executive being equal to or greater than three times the “base amount,” as defined in Section 280G(b)(3) of the Code, (the “Parachute Threshold”) so that Executive would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”) and the net after-tax benefit that Executive would receive by reducing the Payments to the Parachute Threshold is greater than the net after-tax benefit Executive would receive if the full amount of the Payments were paid to Executive, then the Payments payable to Executive shall be reduced (but not below zero) so that the Payments due to Executive do not exceed the amount of the Parachute Threshold, reducing first any Payments under Section 3.02(b) hereof.
		

		
			(b)The Company hereby agrees that, for purposes of determining whether any payment and benefits set forth in Section 3.04 above would be subject to the Excise Tax, the non-compete set forth in in Section 4.02 above shall be treated as an agreement for the performance of personal services.  The Company hereby agrees to indemnify, defend, and hold harmless Executive from and against any adverse impact, tax, penalty, or excise tax resulting from the Company or accountant’s attribution of a value to the non-compete set forth in in Section 4.02 above that is less than the total compensation amount that would be disclosed under Item 402(c) of Securities and Exchange Commission Regulation S-K if Executive had been a “named executive officer” of the Company in the year prior to year of the event that triggers the Excise Tax, to the extent the use of such lesser amount results in a larger Excise Tax than Executive would have been subject to had the Company or accountant attributed a value to the non-compete set forth in in Section 4.02 above that is at least equal to the total compensation amount disclosed under Item 402(c) of Securities and Exchange Commission Regulation S-K for such year. 
		

		
			Section 5.03Section 409A.  
		

		
			(a)Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payment of the benefits set forth herein either shall either be exempt from the requirements of Section 409A of the Code (“Section 409A”) or shall comply with the requirements of such provision.  
		

		
			
		

		 

		

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			(b)Notwithstanding any provision of this Agreement to the contrary, if Executive is a “specified employee” within the meaning of Section 409A, any payments or arrangements due upon a termination of Executive’s employment under any arrangement that constitutes a “nonqualified deferral of compensation” within the meaning of Section 409A and which do not otherwise qualify under the exemptions under Treas. Regs. Section 1.409A-1 (including without limitation, the short-term deferral exemption or the permitted payments under Treas. Regs. Section 1.409A-1(b)(9)(iii)(A)), shall be delayed and paid or provided, without interest, on the earlier of (i) the date which is six (6) months after Executive’s “separation from service” (as such term is defined in Section 409A and the regulations and other published guidance thereunder) for any reason other than death, and (ii) the date of Executive’s death.  
		

		
			(c)After any Termination Date, Executive shall have no duties or responsibilities that are inconsistent with having a “separation from service” within the meaning of Section 409A and, notwithstanding anything in the Agreement to the contrary, distributions upon termination of employment of nonqualified deferred compensation may only be made upon a “separation from service” as determined under Section 409A and such date shall be the Termination Date for purposes of this Agreement.  Each payment under this Agreement or otherwise shall be treated as a separate payment for purposes of Section 409A.  In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement which constitutes a “nonqualified deferral of compensation” within the meaning of Section 409A and to the extent an amount is payable within a time period, the time during which such amount is paid shall be in the discretion of the Company.   
		

		
			Section 5.04Merger Clause.  Effective as of the date hereof, this Agreement contains the complete, full, and exclusive understanding of Executive and the Company as to its subject matter and shall, on such date, and supersede any prior employment agreement between Executive and the Company (and its affiliates), including the Prior Agreement. Any amendments to this Agreement shall be effective and binding on Executive and the Company only if any such amendments are in writing and signed by both Parties.
		

		
			Section 5.05Assignment.  
		

		
			(a)This Agreement is personal to Executive and, without the prior written consent of the Company, shall not be assigned by Executive otherwise than by will or the laws of descent and distribution, and any assignment in violation of this Agreement shall be void.
		

		
			(b)Notwithstanding the foregoing Section 5.05(a), this Agreement and all rights of Executive hereunder shall inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If Executive should die while any amounts would still be payable to him or her hereunder if he or she had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee or other designee or, should there be no such designee, to Executive’s estate.
		

		
			(c)The Company may assign this Agreement to any affiliate or subsidiary of the Company without the consent of Executive and shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the 
		

		
			
		

		 

		

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			business or assets of the Company (a “Successor”) to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would have been required to perform it if no such succession had taken place.  As used in this Agreement, (i) the term “Company” shall mean the Company as hereinbefore defined and any Successor and any permitted assignee to which this Agreement is assigned and (ii) the term “Board” shall mean the Board as hereinbefore defined and the board of directors or equivalent governing body of any Successor and any permitted assignee to which this Agreement is assigned.
		

		
			Section 5.06Dispute Resolution.  Except for any proceeding brought pursuant to Section 5.05 above, the parties agree that any dispute arising out of or relating to this Agreement or the formation, breach, termination or validity thereof, will be settled by binding arbitration by a panel of three arbitrators in accordance with the commercial arbitration rules of the American Arbitration Association.  The arbitration proceedings will be located in Philadelphia, Pennsylvania.  The arbitrators are not empowered to award damages in excess of compensatory damages and each party irrevocably waives any damages in excess of compensatory damages.  Judgment upon any arbitration award may be entered into any court having jurisdiction thereof and the parties consent to the jurisdiction of any court of competent jurisdiction located in the Eastern District of Pennsylvania.
		

		
			Section 5.07GOVERNING LAW.  THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN THE COMMONWEALTH OF PENNSYLVANIA, INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT IN ALL RESPECT SHALL BE GOVERNED BY THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICTS OF LAW.
		

		
			Section 5.08Amendment; No Waiver.  No provision of this Agreement may be amended, modified, waived or discharged except by a written document signed by Executive and duly authorized officer of the Company.  The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered as a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.  No failure or delay by any party in exercising any right or power hereunder will operate as a waiver thereof, nor will any single or partial exercise of any other right or power.  No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by any party, which are not set forth expressly in this Agreement.
		

		
			Section 5.09Severability.  If any term or provision of this Agreement is invalid, illegal or incapable of being enforced by any applicable law or public policy, all other conditions and provisions of this Agreement shall nonetheless remain in full force and effect so long as the economic and legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any party.  Upon any such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.
		

		
			
		

		 

		

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			Section 5.10Survival.  The rights and obligations of the parties under the provisions of this Agreement that relate to post-termination obligations shall survive and remain binding and enforceable, notwithstanding the expiration of the term of this Agreement, the termination of Executive’s employment with the Company for any reason or any settlement of the financial rights and obligations arising from Executive’s employment hereunder, to the extent necessary to preserve the intended benefits of such provisions.
		

		
			Section 5.11Notices.  All notices and other communications required or permitted by this Agreement will be made in writing and all such notices and communications will be deemed to have been duly given when delivered or (unless otherwise specified) mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed, if to the Company, at its principal office, and if to Executive, at Executive’s last address on file with the Company.  Either party may change such address from time to time by notice to the other.
		

		
			Section 5.12Headings and References.  The headings of this Agreement are inserted for convenience only and neither constitute a part of this Agreement nor affect in any way the meaning or interpretation of this Agreement.  When a reference in this Agreement is made to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated.
		

		
			Section 5.13Counterparts.  This Agreement may be executed in one or more counterparts (including via facsimile), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.
		

		
			[signature page follows]
		

		
			
		

		
			

		 

		

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IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date first written above.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						CORTENDO AB

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: ______________________________

				
	
					
						 

					
					
						Name: Matthew Pauls

				
	
					
						 

					
					
						Title: Managing Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						EXECUTIVE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						_________________________________

				
	
					
						 

					
					
						Ruth Thieroff-Ekerdt

				

		
			 
		

		
			
		

		
			

		 

		

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ATTACHMENT A
		

		
			GENERAL RELEASE
		

		
			1.Ruth Thieroff-Ekerdt (“Executive”), for and in consideration of the commitments of Cortendo AB (the “Company”) as set forth in Article III of the Amended and Restated Employment Agreement dated as of November 2, 2015 (the “Employment Agreement”), and intending to be legally bound, does hereby REMISE, RELEASE AND FOREVER DISCHARGE the Company and its present and former divisions, subsidiaries, parents, predecessor and successor corporations, officers, directors, and their respective successors, predecessors, assigns, heirs, executors, and administrators (collectively, “Releasees”) from all causes of action, suits, debts, claims and demands whatsoever in law or in equity, which Executive ever had, now has, or hereafter may have, whether known or unknown, or which Executive’s heirs, executors, or administrators may have, by reason of any matter, cause or thing whatsoever, up to the date of Executive’s execution of this General Release, particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to Executive’s employment relationship with the Company and Releasees, the terms and conditions of that relationship, and the termination of that relationship, including, but not limited to, any claims arising under any applicable Company employee benefit plan(s), the Age Discrimination in Employment Act, the Older Workers’ Benefit Protection Act, Title VII of The Civil Rights Act of 1964, the Civil Rights Act of 1991, Sections 1981 through 1988 of Title 42 of the United States Code, the Americans with Disabilities Act, the Employee Retirement Income Security Act of 1974, the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act, Pennsylvania employment laws, and any other federal, state and local employment laws, as amended, and any other claims under any federal, state or local common law, statutory, or regulatory provision, now or hereafter recognized, and any claims for attorneys’ fees and costs.  This General Release is effective without regard to the legal nature of the claims raised and without regard to whether any such claims are based upon tort, equity, implied or express contract or discrimination of any sort.
		

		
			2.To the fullest extent permitted by law, and subject to the provisions of Paragraph 3 below, Executive represents and affirms that (i) Executive has not filed or caused to be filed on Executive’s behalf any claim for relief against the Company or any Releasee and, to the best of Executive’s knowledge and belief, no outstanding claims for relief have been filed or asserted against the Company or any Releasee on Executive’s behalf; and (ii) Executive has no knowledge of any improper, unethical or illegal conduct or activities that Executive has not already reported to any supervisor, manager, department head, human resources representative, agent or other representative of the Company, to any member of the Company’s legal or compliance departments, or to the ethics hotline; and (iii) Executive will not file, commence, prosecute or participate in any judicial or arbitral action or proceeding against the Company or any Releasee based upon or arising out of any act, omission, transaction, occurrence, contract, claim or event existing or occurring on or before the date of execution of this General Release.
		

		
			3.The release of claims described in Paragraph 1 of this General Release does not preclude Executive from filing a charge with the U.S. Equal Employment Opportunity Commission.  However, Executive agrees and hereby waives any and all rights to any monetary relief or other personal recovery from any such charge, including costs and attorneys’ fees.  
		

		
			4.Subject to the provisions of Paragraph 3 of this General Release, in further consideration of the commitments of the Company as described in the Employment Agreement, 
		

		
			
		

		
			

		 

		

			-  13  -

		

 

Executive agrees that Executive will not file, claim, sue or cause or permit to be filed, any civil action, suit or legal proceeding seeking equitable or monetary relief (including damages, injunctive, declaratory, monetary or other relief) for himself involving any matter released in Paragraph 1.  In the event that suit is filed in breach of this release of claims, it is expressly understood and agreed that this release of claims shall constitute a complete defense to any such suit.  In the event any Releasee is required to institute litigation to enforce the terms of this paragraph, Releasees shall be entitled to recover reasonable costs and attorneys' fees incurred in such enforcement.  Executive further agrees and covenants that should any person, organization, or other entity file, claim, sue, or cause or permit to be filed any civil action, suit or legal proceeding involving any matter occurring at any time in the past, Executive will not seek or accept personal equitable or monetary relief in such civil action, suit or legal proceeding. Nothing in this General Release shall prohibit or restrict Executive from: (i) making any disclosure of information required by law; (ii) providing information to, or testifying or otherwise assisting in any investigation or proceeding brought by any federal regulatory or law enforcement agency or legislative body, any self-regulatory organization, or the Company’s designated legal, compliance or human resources officers; or (iii) filing, testifying, participating in or otherwise assisting in a proceeding relating to an alleged violation of any federal, state or municipal law relating to fraud, or any rule or regulation of the Securities and Exchange Commission or any self-regulatory organization.
		

		
			5.Executive understands and agrees that the payments, benefits and agreements provided in the Employment Agreement are being provided to Executive in consideration for Executive’s acceptance and execution of, and in reliance upon Executive’s representations in, the Employment Agreement and this General Release, and that they are greater than the payments, benefits and agreements, if any, to which Executive would have received if Executive had not executed the Employment Agreement and this General Release.  In addition, Executive acknowledges and agrees that Executive has been paid all amounts owed to Executive as of the date of Executive’s signing of this General Release.
		

		
			6.Executive and the Company agree and acknowledge that the agreement by the Company described in the Employment Agreement, and the settlement and termination of any asserted or unasserted claims against the Releasees, are not and shall not be construed to be an admission of any violation of any federal, state or local statute or regulation, or of any duty owed by any of the Releasees to Executive.
		

		
			7.This General Release and the obligations of the parties hereunder shall be construed, interpreted and enforced in accordance with and be governed by the laws of Pennsylvania without reference to its conflicts of laws principles.
		

		
			8.Executive certifies and acknowledges as follows:
		

		
			a.that Executive has read the terms of this General Release, and that Executive understands its terms and effects, including the fact that Executive has agreed to RELEASE AND FOREVER DISCHARGE the Company and each and every one of its affiliated entities from any legal action arising out of Executive’s relationship with the Company and the termination of that relationship;
		

		
			b.that Executive has signed this Release voluntarily and knowingly in exchange for the consideration described herein and in the Employment Agreement,
		

		
			
		

		
			

		 

		

			-  14  -

		

 

which Executive acknowledges is adequate and satisfactory to Executive and to which Executive acknowledges that Executive would not otherwise be entitled;
		

		
			c.that Executive has been and is hereby advised in writing to consult with an attorney prior to signing this General Release;
		

		
			d.that Executive does not waive rights or claims that may arise after the date this General Release is executed;
		

		
			e.that the Company has provided Executive with at least 21 (twenty-one) days within which to consider this General Release, that any modifications, material or otherwise, made to this General Release have not restarted or affected in any manner the original 21 (twenty-one) day consideration period, and that Executive has signed on the date indicated below after concluding that this General Release is satisfactory to Executive;
		

		
			f.that Executive acknowledges that this General Release may be revoked by Executive within seven (7) days after Executive’s execution, and it shall not become effective until the expiration of such seven day revocation period.  If the last day of the revocation period is a Saturday, Sunday, or legal holiday in the state in which Executive resides, then the revocation period shall not expire until the next following day which is not a Saturday, Sunday, or legal holiday.  In the event of a timely revocation by Executive, this General Release and the Employment Agreement will be deemed null and void and the Company will have no obligations hereunder; and
		

		
			g.that this General Release may not be signed prior to the third calendar day before the last day of the Term of the Employment Agreement.   If this General Release is signed prior to the last day of the Term of the Employment Agreement, the Company reserves the right to have Executive ratify the General Release on or after the last day of the Term.
		

		
			
		

		
			

		 

		

			-  15  -

		

 

Intending to be legally bound hereby, Executive executed the foregoing General Release on the date indicated below.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Ruth Thieroff-Ekerdt

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Signature

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Date:

					
					
						 

				

		
			 
		

		 

		

			-  16  -EX-10.11

 Exhibit 10.11 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of the
15th day of February, 2016, by and between Recro Pharma, Inc., a Pennsylvania corporation (the “Company”), and Fred Graff, an individual (the “Executive”). 

BACKGROUND 

WHEREAS, the Company desires to employ Executive, and Executive desires to accept such employment, subject to the terms and further conditions
set forth herein. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: 

1. Employment and Duties. From and after February 15, 2016 (the “Effective Date”), the Company shall employ Executive as
Chief Commercial Officer. In such capacity, Executive shall perform all such duties as are properly assigned to him/her consistent with his/her titled position by the Company’s President (the “President”) and/or Board of Directors
(the “Board”), and shall use his/her reasonable best efforts to promote the interests of the Company, provided that at all times Executive shall have the duties and authority commensurate with the position of chief commercial officer of
companies comparable to the Company. Nothing contained herein shall preclude Executive from managing personal investments, participating in charitable, community, educational and professional activities, or, after the first anniversary of the
Effective Date and with the prior consent of the Company (which shall not be unreasonably withheld), serving on the board of directors (or comparable governing body), including any board committees, of for-profit businesses that do not compete with
the Company, provided that such activities do not materially interfere with the performance of his duties for the Company. 
 2.
Term. The term of Executive’s employment hereunder shall commence as of the Effective Date and shall continue for a period of one (1) year. From and after the initial term, this Agreement shall automatically renew for additional one
(1) year periods, unless and until either party gives the other no less than thirty (30) days’ prior written notice of his/her/its intent not to renew. 

3. Compensation. From and after the Effective Date, the Company shall pay Executive in accordance with its normal payroll practices
(but not less frequently than monthly) an annual salary at the initial rate of Three Hundred and Seventy-Five Thousand Dollars ($375,000) per year (“Base Salary”). Executive’s Base Salary shall be reviewed not less often than annually
and may be increased from time to time in the sole discretion of the President and/or the Board. The Base Salary, as in effect from time to time, may not be decreased without the prior written consent of Executive, except as part of an across the
board decrease in which the percentage decrease in Executive’s base salary is not greater than the smallest percentage decrease of any other senior executive officer. 

4. Other Benefits. 

(a) Bonuses. Executive will qualify to participate in the Company’s incentive bonus program. The Executive’s
target bonus amount (the “Target Bonus”), tied to set performance goals and measures, is 35% of Executive’s Base Salary; provided however, that the Company reserves the right to change or terminate any bonus program at any time in the
Board’s sole discretion. 

 (b) Benefits Plans. Executive shall be entitled to participate in all
health insurance, savings and retirement, and other benefit plans, if any, that are from time to time applicable to other employees of the Company. 

(c) Vacation and Personal Days. Executive shall be entitled to four (4) weeks of paid vacation time per year and
three (3) paid personal days per year, in accordance with the plans, practices, policies, and programs agreed to by the President and/or the Board. 

(d) Expense Reimbursement. Executive shall be entitled to receive reimbursement for all reasonable employment-related
expenses incurred by Executive upon the receipt by the Company of an accounting in accordance with practices, policies and procedures applicable to other employees of the Company. 

(e) Equity Grant. As soon as practical following the Effective Date, Executive will receive an Inducement Grant in the
form of an option on 91,000 shares of Company stock (the “Option”), which Option shall either be granted pursuant to, or be substantially in the form of a grant pursuant to, the Recro Pharma, Inc. 2013 Equity Incentive Plan (the
“Plan”), subject to the following: 
 (i) One forty-eighth of the Option shall vest on each monthly anniversary of
the Effective Date, provided that Executive is still employed on such date. 
 (ii) If Executive’s employment is
terminated under circumstances described in Section 10(a)(iii) within the period that ends twelve months after a Change of Control (as defined in the Plan) or in Section 10(a)(v), the Option, to the extent not already vested as a result of
the Change of Control, shall be vested in full. 
 (iii) The term of the Option shall be ten years. 

In addition to the Option, Executive shall be eligible (with such eligibility determined on the same basis as other senior
executives, in the discretion of the Board) for other grants under the Plan, or any other equity or long-term incentive plan adopted by the Company. The terms of any such grants shall be determined in the discretion of the Board. 

5. Confidential Information. 

(a) Executive agrees at all times during the term of his/her employment with the Company and thereafter, to hold in strictest
confidence, and not to use, except for the benefit of the Company, or to disclose to any person or entity (“Person”) without prior written authorization of the Company, any Confidential Information of the Company. Executive understands
that “Confidential Information” means Inventions (as defined herein) and any other information of the Company and/or its affiliates disclosed or made available to the Executive, whether before or during the term hereof, including but not
limited to financial information, technical and non-technical data, services, products, processes, operations, reports, analyses, test results, technology, samples, specifications, protocols, performance standards, formulations, compounds, know-how,
methodologies, trade secrets, trade practices, marketing plans and materials, strategies, forecasts, research, concepts, ideas, and names, addresses and any other characteristics or identifying information of the Company’s existing or potential
investors, licensors, licensees, suppliers, customers or employees. Confidential Information shall not include any information Executive can establish by competent proof is or becomes public knowledge or part of the public domain through no act or
omission of Executive. Notwithstanding the foregoing, Executive shall be permitted to disclose Confidential Information pursuant to a court order, government order or any 

  
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other legal requirement of disclosure if no suitable protective order or equivalent remedy is available, provided that Executive gives the Company written notice of such court order, government
order or legal requirement of disclosure immediately upon knowledge thereof and allows the Company a reasonable opportunity to seek to obtain a protective order or other appropriate remedy prior to such disclosure to the extent permitted by law.

 (b) Executive agrees that he/she shall not, during his/her employment with Company, improperly use or disclose any
proprietary information or trade secrets of any former employer of Executive or other Person and that Executive will not bring onto the premises of Company any unpublished documents or proprietary information belonging to any such former employer or
Person unless consented to in writing by such former employer or Person. 
 (c) Executive recognizes that Company has
received and in the future will receive from third parties certain confidential or proprietary information subject to a duty on Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.
Executive agrees to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any Person, or to use it except as necessary in carrying out his/her work for Company consistent with Company’s
agreement with such third party. 
 6. Inventions. 

(a) Executive agrees that he/she shall promptly make full written disclosure to Company, shall hold in trust for the sole right
and benefit of Company, shall assign and hereby does assign to Company, or its designee, all of Executive’s right, title, and interest in and to any and all inventions, original works of authorship, developments, concepts, improvements,
designs, discoveries, ideas, trademarks or trade secrets, whether or not patentable or registerable under copyright or similar laws, which Executive may, solely or jointly, conceive or develop or reduce to practice during the period of time
Executive is in the employ of Company that relate to the Company and/or its products (collectively referred to as “Inventions”). Executive further acknowledges that all original works of authorship which are made by Executive (solely or
jointly with others) within the scope of and during the period of his/her employment with Company and which are protectable by copyright are “works made for hire”, as that term is defined in the United States Copyright Act. Executive
understands and agrees that the decision whether or not to commercialize or market any invention developed by Executive (solely or jointly with others) is within Company’s sole discretion and for Company’s sole benefit and that no royalty
will be due to Executive as a result of Company’s efforts to commercialize or market any such invention. 
 (b)
Executive agrees to keep and maintain adequate and current written records of all Inventions made by Executive (solely or jointly with others) during the term of his/her employment with Company. The records will be in the form of notes, sketches,
drawings, and any other format that may be specified by Company. The records will be available to and remain the sole property of Company at all times. 

(c) If Company is unable because of Executive’s mental or physical incapacity or for any other reason to secure his/her
signature on any such document, then Executive hereby irrevocably designates and appoints Company and its duly authorized officers and agents as his/her agent and attorney-in-fact to act for and in Executive’s behalf and stead to execute and
file any such document and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations thereon with the same legal force and effect as if executed by Executive. 

  
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 7. Returning Company Documents. Executive agrees that, at the time of leaving the employ
of the Company, he/she shall deliver to the Company (and will not keep in his/her possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, materials, equipment, other
documents or property, or reproductions of any of the aforementioned items developed by Executive pursuant to his/her employment with the Company or otherwise belonging to the Company, its successors or assigns. 

8. Nonsolicitation and Noncompetition. 

(a) Executive agrees that during the term of his/her employment with the Company and for a period of one (1) year
immediately following the termination of Executive’s employment with Company for any reason whatsoever, whether with or without cause, (i) Executive shall not, either directly or indirectly, solicit, induce, recruit or encourage any
employees of the Company and/or its affiliates to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage or take away employees of Company and/or its affiliates, either for Executive or for any other
Person and (ii) neither the Executive, nor any firm, organization or corporation in which he is interested, shall, for any reason, directly or indirectly, persuade or attempt to persuade any investor, licensor, licensee, supplier or customer of
Company, or any potential investor, licensor, licensee, supplier or customer to which Company and/or its affiliates have made a presentation or with which Company and/or its affiliates have been having discussions, to not transact business with
Company and/or its affiliates or to transact business with the Executive or any other Person as an alternative to or in addition to Company and/or its affiliates. 

(b) Executive agrees that during the term of his/her employment with the Company and for a period of one (1) year
immediately following the termination of Executive’s employment with Company for any reason whatsoever, whether with or without cause, Executive shall not, anywhere in the world, engage, either directly or indirectly, whether as a principal or
as an agent, officer, director, employee, consultant, shareholder, partner or otherwise, alone or in association with any other Person, in any Competing Business. For purposes of this Agreement, the term “Competing Business” shall mean any
Person engaged in the development or commercialization of products that are the same or substantially similar to, or that directly compete with, those products developed, commercialized or actively in development or commercialization by the Company.

 (c) In the event that the provisions of subparagraphs (a) or (b) above should be determined by a court or other
tribunal of competent jurisdiction to exceed the time, geographic, services or product limitations permitted by the applicable law in a jurisdiction in which enforcement of this Agreement is sought, then such provisions shall be deemed reformed in
such jurisdiction to the maximum time, geographic, service or product limitations permitted by such applicable law, and the parties hereby expressly grant any court or competent jurisdiction the authority to effect such reformation. 

9. Equitable Relief. The parties confirm that a violation by Executive of the provisions of this Agreement, including but not limited
to, the restrictions in Sections through 5 through 8, will cause Company irreparable harm that cannot be remedied adequately by monetary damages. Executive agrees that, in the event of such a violation, Company shall be entitled to seek temporary,
preliminary and permanent injunctive relief to restrain any such violation (without the posting of a bond) and to an equitable accounting of all earnings, profits and other benefits arising from the breach or violation, which rights shall be
cumulative and in addition to any other rights or remedies to which Company may be entitled. Company shall be entitled to commence action for such relief in any state or federal court in the Commonwealth of Pennsylvania, and Executive waives to the
fullest extent permitted by law any objection that he/she may now or hereafter have to the jurisdiction and venue of the court in any such proceeding. In any such action, the prevailing party (once all appeals have been exhausted) shall be entitled
to recover its or his, as the case may be, reasonable attorney’s fees, out-of-pocket costs and disbursements. 

  
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 10. Termination of Employment. 

(a) Notwithstanding the provisions of Section 2 hereof, Executive’s employment shall terminate, or be subject to
termination, as follows: 
 (i) Death or Disability. In the event Executive dies, this Agreement shall terminate. If
Executive becomes entitled to long-term disability benefits under the Company’s then-current disability insurance policy(ies) applicable to Executive, the Company may, at its option, terminate Executive’s employment hereunder effective
immediately upon written notice. If the Company does not have in effect disability insurance covering Executive and/or if “disabled” is not defined therein, Executive shall be deemed disabled hereunder at such time that he/she suffers a
physical or mental disability that renders him/her unable to perform the duties of his/her employment on substantially a full-time basis, and such period of physical or mental disability continues without substantial interruption for more than one
hundred eighty (180) days. 
 (ii) By Company for Cause. The Company may, at any time, terminate
Executive’s employment hereunder for Cause. For purposes of this Agreement, the Company shall have “Cause” to terminate Executive’s employment hereunder upon (a) conduct amounting to fraud or dishonesty against the Company;
(b) the willful failure by Executive to substantially perform his/her duties hereunder or the material violation by Executive of any of the other provisions of this Agreement, which willful failure or material violation shall continue for
thirty (30) days or more following written notice to Executive; (c) Executive’s loss of any permit, license, accreditation or other authorization necessary to the Executive’s performance of his/her duties hereunder, as determined
by the Company in its sole discretion; (d) Executive’s conviction of a felony or a plea by Executive of nolo contendere to a felony; or (e) other willful conduct by Executive likely, in the reasonable judgment of the Board, to
materially adversely affect the reputation of the Company, which conduct shall continue for five (5) days or more following written notice to Executive. No act, or omission to act, shall be considered “willful” unless such act or
omission is done without a good faith belief by Executive that such act or omission is in, or not opposed to, the best interests of the Company. 

(iii) By Company for Convenience. The Company may terminate Executive’s employment hereunder at any time, without
Cause, upon no less than thirty (30) days prior written notice to Executive. 
 (iv) By Executive for
Convenience. Executive may terminate his employment hereunder at any time upon no less than thirty (30) days prior written notice to the Company. 

(v) By Executive upon a Change of Control. Executive may terminate his employment hereunder at any time during the
twelve (12) months following a Change of Control, if during such twelve-month period the Company and/or its successor (a) materially and adversely changes the status, responsibilities or perquisites of Executive and such change is not
cured within thirty (30) days following written notice by Executive to the Company, (b) reduces Executive’s Base Salary other than as permitted by Section 3 or the amount of the Target Bonus, or (c) requires Executive to be
principally based at any office or location more than fifty (50) miles from Executive’s principal office immediately prior to the Change of Control; provided, however, that the Executive shall not be entitled to resign pursuant to this
Section 10(a)(v) unless Executive notifies the Company in writing of the circumstances outlined in Section 10(a)(v)(a) through 10(a)(v)(c) within thirty (30) days after he first has notice of such circumstances, the Company fails to
cure such circumstances 

  
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within thirty (30) days after receipt of such notice, and Executives resigns his employment not later than ten (10) days after the end of such cure period. For purposes of this
Agreement, a “Change of Control” shall be deemed to have occurred upon the happening of any of the following events: (i) the consummation of a plan of dissolution or liquidation of the Company; (ii) the consummation of the sale
or disposition of all or substantially all of the assets of the Company; (iii) the consummation of a merger, consolidation or other shareholder-approved fundamental business transaction in which the Company is a participant with another entity
where the stockholders of the Company, immediately prior to the referenced transaction, will not beneficially own, immediately after the referenced transaction, shares or other equity interests entitling such stockholders to more than 50% of all
votes to which all equityholders of the surviving entity would be entitled in the election of directors; (iv) the date any entity, person or group, (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange
Act of 1934, as amended), (other than (A) the Company or any of its subsidiaries or any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its subsidiaries or (B) any person who, on the date the Plan
is effective, is the beneficial owner of outstanding securities of the Company), shall have become the beneficial owner of, or shall have obtained voting control over, more than fifty percent (50%) of the outstanding shares of the Common Stock;
or (v) the first day after the date hereof when directors are elected such that a majority of the Board shall have been members of the Board for less than twenty-four (24) months, unless the nomination for election of each new director who
was not a director at the beginning of such twenty-four (24) month period was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period. 

(b) Severance. 

(i) In the event of any termination of Executive’s employment for any reason, Executive (or his estate) shall be entitled
to (A) his Base Salary through the date of termination, (B) the value of his accrued but unused vacation and paid time off through the date of termination, (C) except in the case of termination for Cause, any bonus earned in a prior
year but not yet paid on the date of termination, (D) reimbursement of all business expenses properly incurred prior to the date of termination consistent with Company policy, and (E) any benefits, including any continuation or conversion
rights, provided under any employee benefit plan or policy of the Company (not including any severance, separation pay, or supplemental unemployment benefit plan), in accordance with the terms of such plan or policy (the “Accrued
Benefits”). 
 (ii) In the event of termination of Executive’s employment by reason of death, or Disability, the
Company shall pay or provide to Executive or Executive’s estate (A) the Accrued Benefits, (B) Executive’s Base Salary, in accordance with its normal payroll practices (but not less frequently than monthly), for a period of six
(6) months from the effective date of such termination, (C) an amount equal to Executive’s Target Bonus for the fiscal year of termination pro-rated through the date of termination (determined based on the number of days in the
calendar year that Executive is employed by the Company in such year of the effective date of termination) and paid within thirty (30) days following such termination, and (D) continued health benefits for Executive and his eligible
dependents at Company’s expense (or such portion thereof as is then funded by the Company for other employees of the Company), if applicable, for the same period. 

(iii) In the event of a nonrenewal or termination by the Company pursuant to Section 2 or Section 10(a)(iii), or if
Executive terminates this Agreement during the twelve (12) months after a Change of Control pursuant to Section 10(a)(v), the Company shall (A) pay or provide to Executive the Accrued Benefits, (B) pay Executive a pro-rata annual
bonus in respect of the fiscal year in which the effective date of termination occurs (determined based on the number of days in the calendar year that Executive is employed by the Company in such fiscal year of the effective

  
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date of termination), with such annual bonus (if any) paid at the same time it would have otherwise been paid absent Executive’s termination of employment, (C) continue to pay Executive
his/her Base Salary, in accordance with its normal payroll practices (but not less frequently than monthly), and shall continue Executive’s, and his eligible dependents’, health insurance benefits at Company’s expense (or such portion
thereof as is then funded by the Company for other employees of the Company) for a period of twelve (12) months from the effective date of such termination, and (D) provide Executive, at the Company’s expense, with senior executive
level outplacement services for a period of twelve (12) months from the date of termination, using a reputable provider selected by Executive with the Company’s consent, which shall not be unreasonably withheld, provided that such
outplacement expenses shall not exceed $25,000 in any event. 
 (iv) Except as expressly provided in this
Section 10(b), upon the termination of Executive’s employment, all payments hereunder shall cease. 
 (v) The
payments and benefits described in Section 10(b)(ii) and 10(b)(iii) are in lieu of, and not in addition to, any other severance arrangement maintained by the Company. The payments and benefits described in Section 10(b)(ii) and 10(b)(iii),
other than the Accrued Benefits, are conditioned on: (a) Executive’s (or in the case of Executive’s death, his/her estate’s) execution and delivery to the Company and the expiration of all applicable statutory revocation periods,
by the 60th day following the effective date of his/her termination of employment, of a general release of claims against the Company and its affiliates substantially in the form attached hereto as Exhibit A (the “Release”); and
(b) Executive’s continued compliance with the provisions of Sections 5, 6, 7 and 8 of this Agreement. Subject to Section 10(d) below, the payments and benefits described in Section 10(b)(ii) and 10(b)(iii) will begin to be paid
or provided as soon as administratively practicable after the Release becomes irrevocable, provided that if the 60 day period described above begins in one taxable year and ends in a second taxable year such payments or benefits shall not commence
until the second taxable year. 
 (vi) Executive shall not be required to seek or accept other employment, or otherwise to
mitigate damages, as a condition to receipt of the benefits described in Section 10(b)(ii) and 10(b)(iii), and such benefits shall not be reduced or offset by an amounts received by Executive from any other source, except to the extent
Executive’s medical coverage is discontinued by reason of his acquiring other coverage. 
 (c) The provisions of this
Agreement shall survive expiration or termination of this Agreement for any reason to the extent necessary to enable the parties to enforce their respective rights hereunder, including without limitation Sections 5, 6, 7, 8, 9, 10(b), 10(c), 10(d),
11, 12, 13, 14, 15 and 16. 
 (d) Compliance with Section 409A. Notwithstanding anything to the contrary in this
Agreement, no portion of the benefits or payments to be made under Section 10(b) hereof will be payable until Executive has a “separation from service” from the Company within the meaning of Section 409A of the Internal Revenue
Code (the “Code”). In addition, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Section 409A of the Code
to payments due to Executive upon or following his “separation from service”, then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that are
otherwise due within six months following Executive’s “separation from service” (taking into account the preceding sentence of this paragraph) will be deferred without interest and paid to Executive in a lump sum immediately following
that six month period. This paragraph should not be construed to prevent the application of Treas. Reg. § 1.409A-1(b)(9)(iii) 

  
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(or any successor provision) to amounts payable hereunder. For purposes of the application of Section 409A of the Code, each payment in a series of payments will be deemed a separate
payment. 
 11. Parachute Payment. 

(a) If any payment or benefit the Executive would receive under this Agreement or otherwise in connection with a Change in
Control, as defined herein (the “Total Payments”) 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 Total Payment shall be equal to the Reduced Amount. The “ Reduced Amount” shall be either (x) the largest portion of the Total Payment that would result in no
portion of the Total Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total of the Total 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 the Executive’s receipt, on an after-tax basis, of the greatest economic benefit notwithstanding that all or some portion of the Total Payment
may be subject to the Excise Tax. If a reduction in payments or benefits constituting Parachute Payments is necessary so that the Total Payment equals the Reduced Amount, reduction shall occur in the manner that results in the greatest economic
benefit for the Executive. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where two economically equivalent amounts are subject to reduction but payable at
different times, such amounts shall be reduced on a pro rata basis but not below zero. 
 (b) 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 the Company a sufficient
amount of the Total 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 in accordance with clause (y) in the preceding paragraph, Executive will have no
obligation to return any portion of the Total Payment pursuant to the preceding sentence. Unless Executive and the Company agree on an alternative accounting or law firm, the accounting firm then engaged by the Company for general tax compliance
purposes 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, law or consulting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting, law or consulting firm required to be made hereunder. 

(c) The Company shall use commercially reasonable efforts such that the accounting, law or consulting firm engaged to make the
determinations hereunder shall 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 Total Payment is
triggered (if requested at that time by the Executive or the Company) or such other time as requested by the Executive or the Company. 

12. Section 409A of the Code. 

(a) Notwithstanding anything herein to the contrary or otherwise, except to the extent any expense, reimbursement or in-kind
benefit provided to Executive does not constitute a “deferral of compensation” within the meaning of Section 409A of the Code, and its implementing regulations 

  
 -8- 

 
and guidance, (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive during any calendar year will not affect the amount of expenses eligible for
reimbursement or in-kind benefits provided to Executive in any other calendar year, (ii) the reimbursements for expenses for which Executive is entitled to be reimbursed shall be made on or before the last day of the calendar year following the
calendar year in which the applicable expense is incurred and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit. 

(b) Anything to the contrary herein notwithstanding, all benefits or payments provided by the Company to Executive that would
be deemed to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code are intended to comply with Section 409A of the Code. Notwithstanding anything in this Agreement to the contrary,
distributions may only be made under this Agreement upon an event and in a manner permitted by Section 409A of the Code or an applicable exemption. 

13. Notices. All notices, consents, waivers or other communications which are required or permitted hereunder will be sufficient if
given in writing and delivered personally, by overnight mail service, by fax transmission (which is confirmed) or by registered or certified mail, return receipt requested, postage prepaid, to the parties at the addresses set forth below (or to such
other addressee or address as will be set forth in a notice given in the same manner): 
  

			
	If to the Company:	  	Recro Pharma, Inc.
		  	490 Lapp Road
		  	Malvern, PA 19355, USA
		  	Attn: Gerri Henwood
		  	President
		
	If to the Executive:	  	Fred Graff
		  	540 Parrott Drive
		  	San Mateo, CA 94402

 All such notices will be deemed to have been given three business days after mailing if sent by registered or certified mail,
one business day after mailing if sent by overnight courier service, or on the date delivered or transmitted if delivered personally or sent by fax transmission. 

14. Indemnification. To the maximum extent permitted by applicable law, both during the term of this Agreement and at all times
thereafter, regardless of the reason for termination, the Company shall indemnify Executive and hold Executive harmless against any cost, fee, expense, fine or penalty (a “cost”) to which he may be subject as a result of serving as an
employee or officer of the Company or any other entity at the Company’s direction, shall advance to Executive, as incurred, the reasonable costs (including fees and disbursements of legal counsel) incurred by him in defending any judicial or
administrative proceeding, including any investigation, that may give rise to a cost, subject to Executive’s obligation to repay any such advance if it is subsequently determined that he was not entitled to indemnification, and shall provide
for Executive to be covered by its directors and officers, or any similar, insurance policy at the level applicable to its most senior active officers. 

15. Nondisparagement. Both during the term of this Agreement and at all times thereafter, regardless of the reason for termination,
Executive shall not publicly disparage the Company, and the Company shall instruct the members of the Board and its senior executives not to publicly disparage Executive. 

  
 -9- 

 16. Miscellaneous. 

(a) No provision of this Agreement may be amended unless such amendment, modification or discharge is agreed to in writing
signed by the parties hereto. 
 (b) No waiver by any party hereto of any breach of, or compliance with, any condition or
provision of this Agreement by the other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No such waiver shall be enforceable unless expressed in a written instrument
executed by the party against whom enforcement is sought. 
 (c) This Agreement constitutes the entire agreement of the
parties on the subject matter and no agreements or representations, oral or otherwise, expressed or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. In the event
of any conflict between this Agreement and any policy of the Company, the terms of this Agreement will control. 
 (d) This
Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns, and Executive and his/her heirs, executors, administrators and legal representatives. The Company may not assign its rights and obligations under
this Agreement to any person without the prior written consent of Executive, except to a successor to the Company’s business that expressly adopts and agrees to be bound by this Agreement. 

(e) This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania without
giving effect to its principles of conflicts of law. Exclusive jurisdiction for any dispute between the parties arising from or in connection with this Agreement and/or the relationship between Executive and the Company shall lie with the federal
and state courts located in the Commonwealth of Pennsylvania, and each party hereby consents to the personal jurisdiction of such courts. 

(f) This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of
which together shall constitute one and the same instrument. 
 (g) This Agreement has been jointly drafted by the respective
representatives of the Company and Executive and no party shall be considered as being responsible for such drafting for the purpose of applying any rule construing ambiguities against the drafter or otherwise. No draft of this Agreement shall be
taken into account in construing this Agreement. 
 [Execution page follows] 

  
 -10- 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above
written. 
  

			
	EXECUTIVE:
	
	 /s/ Fred Graff

	Fred Graff
	
	COMPANY:
	
	RECRO PHARMA, INC.
		
	By:	 	 /s/ Gerri Henwood

		 	Gerri Henwood, President

  
 -11- 

 Exhibit A 

[Separation and Mutual Release Agreement] 

  
 A-1 

 SEPARATION AND MUTUAL RELEASE AGREEMENT 

THIS SEPARATION AND MUTUAL RELEASE AGREEMENT (this “Release”) is made by and between Fred Graff (the
“Executive”) and Recro Pharma, Inc. (the “Company”). 
 WHEREAS, the Executive’s employment with the
Company has terminated; and 
 WHEREAS, pursuant to Section 10(b)[ii][iii] of the Employment Agreement by and between the Company and
the Executive dated as of [January     ], 2016 (the “Employment Agreement”), the Company has agreed to pay the Executive certain amounts and to provide certain benefits, subject to his execution and
non-revocation of this Release. All terms used but not defined herein shall have the meanings ascribed to such terms in the Employment Agreement. 

NOW THEREFORE, in consideration of these premises and the mutual promises contained herein, and intending to be legally bound hereby, the
parties agree as follows: 
 1. Consideration. The Executive acknowledges that: (i) the payments set forth in
Section 10(b)[ii][iii] of the Employment Agreement constitute full settlement of all his rights under the Employment Agreement, (ii) he has no entitlement under any other severance or similar arrangement maintained by the Company or any of
its affiliates, and (iii) except as otherwise provided specifically in this Release, the Company does not and will not have any other liability or obligation to the Executive by reason of the cessation of his employment. The Executive further
acknowledges that, in the absence of his execution of this Release, the payments and benefits specified in Section 10(b)[ii][iii] of the Employment Agreement would not otherwise be due to him. 

2. Mutual Release and Covenant Not to Sue. 

2.1. Mutual Release. The Executive, on his own behalf and together with his heirs, assigns, executors, agents and representatives hereby
fully and forever releases and discharges the Company its predecessors, successors (by merger or otherwise), parents, subsidiaries, affiliates and assigns, together with each and every of their present, past and future officers, directors,
shareholders, general partners, limited partners, employees and agents (in their official, individual and all other capacities), and all other persons or entities acting with, for, through or in concert with any of them (herein collectively referred
to as the “Company Releasees”) from any and all claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, controversies, debts, costs, expenses, damages, judgments, orders and
liabilities, of whatever kind or nature, direct or indirect, in law, equity or otherwise, whether known or unknown, which the Executive now has, or hereafter can, shall or may have for, upon or by reason of any act, transaction, practice, conduct,
matter, cause or thing of any kind or nature whatsoever (each, a “Claim”) arising or occurring through the Effective Date of this Release. The Company hereby fully and forever releases and discharges the Executive from any Claim
arising or occurring through the Effective Date of this Release, including, but not limited to, any Claim arising out of the Executive’s employment by the Company or the termination thereof. 

2.2. Covenant Not to Sue. The Executive expressly represents that he has not filed a lawsuit or initiated any other administrative
proceeding against the Company and that he has not assigned any claim against the Company to any other person or entity. The Company expressly represents that it has not filed a lawsuit or initiated any other administrative proceeding against the
Executive and that it has not assigned any claim against the Executive to any other person or entity. Both the Executive and Company further promise not to initiate a lawsuit or to bring any other claim against the other arising out of or in any way
related to the Executive’s employment by the Company or the termination of that employment. Notwithstanding anything in this Release to the contrary, this Release will not prevent the Executive from

  
 A-2 

 
filing a charge with the Equal Employment Opportunity Commission (or similar state agency) or participating in any investigation conducted by the Equal Employment Opportunity Commission (or
similar state agency); provided, however, that any claims by the Executive for personal relief in connection with such a charge or investigation (such as reinstatement or monetary damages) will be barred. 

2.3. Claims Not Released. Notwithstanding Section 2.1, the forgoing release of any Claim does not release the Company or the
Executive from claims : (a) to enforce this Release, (b) claims to enforce the Executive’s rights under any employee benefit plan in accordance with the terms of the applicable plan(s), or (c) for indemnification under the
Company’s By-Laws, under applicable law, or under any indemnification agreement between the Company and the Executive. Additionally, the foregoing does not release the Executive from claims the Company may have arising out of or related to:
(x) Executive’s criminal or other serious misconduct related to the Company, (y) Executive’s breach of fiduciary duty to the Company, or (z) Executive’s material breach of any agreement with the Company. 

2.4. Claims Released. The Executive understands and agrees that the claims released in Section 2.1 include, but are not limited
to: (a) any Claim based on any law, statute, or constitution or based on contract or in tort or based on common law; (b) any Claim based on or arising under any civil rights laws, labor laws, or employment laws, such as the Pennsylvania
Human Relations Act, or the civil rights laws of any other state or jurisdiction, or Title VII of the Civil Rights Act of 1964 (“Title VII”), or the federal Age Discrimination in Employment Act of 1967 (“ADEA”), or
the Americans with Disabilities Act of 1990 (“ADA”), or the Civil Rights Act of 1991, or the Worker Adjustment and Retraining Notification Act (“WARN”); (c) any Claim under any grievance or complaint procedure
of any kind; (d) any Claim based on or arising out of or related to the Executive’s recruitment by, employment with, the termination of the Executive’s employment with, the Executive’s performance of any services in any capacity
for, or any business transaction with, any or all of the Company Releasees (including, but not limited to any claim for wrongful or retaliatory discharge); (e) any Claim for a personal recovery by the Executive in connection with, or arising
from, any lawsuit or proceeding brought by any person or entity other than the Executive (including, but not limited to, any Claim brought by any administrative agency, department or commission); (f) any Claim for the Executive’s
attorneys’ fees, costs or expenses relating to this Release; and (g) any other Claim for compensation of any kind. 
 3.
Cooperation. The Executive further agrees that he will cooperate fully with the Company and its counsel with respect to any matter (including litigation, investigations, or governmental proceedings) in which the Executive was in any way
involved during his employment with the Company. The Executive shall render such cooperation in a timely manner on reasonable notice from the Company. 

4. Mutual Non-Disparagement. The Company’s officers and directors will not disparage the Executive or the Executive’s
performance or otherwise take any action which could reasonably be expected to adversely affect the Executive’s personal or professional reputation. Similarly, the Executive will not disparage the Company or any of its directors, officers,
agents or employees or otherwise take any action which could reasonably be expected to adversely affect the personal or professional reputation of the Company or any of its directors, officers, agents or employees. 

5. Permitted Conduct. Notwithstanding anything in this Release to the contrary, nothing in this Release shall prohibit or restrict the
Executive from: (a) initiating communications directly with, or responding to any inquiry from, or providing testimony before, the SEC, FINRA, any other self-regulatory organization or any other state or federal regulatory authority;
(b) making any disclosure of relevant, necessary and truthful information or documents: (i) pursuant to the Sarbanes-Oxley Act; (ii) as otherwise required by law or legal process; (iii) in connection with any charge, action,
investigation or proceeding relating to this Release; or (iv) to the Company’s Legal Department. 

  
 A-3 

 6. Restrictive Covenants. The Executive acknowledges that the restrictive covenants
contained in Sections 5, 6, 7, 8 and 9 of the Employment Agreement will survive the termination of his employment (the “Restrictive Covenants”). The Executive affirms that the Restrictive Covenants are reasonable and necessary to
protect the legitimate interests of the Company, that he received adequate consideration in exchange for agreeing to the Restrictive Covenants and that he will abide by the Restrictive Covenants. 

7. Rescission Right. The Executive expressly acknowledges and recites that: (a) he has read and understands the terms of this
Release in its entirety, (b) he has entered into this Release knowingly and voluntarily, without any duress or coercion, (c) he has been advised orally and is hereby advised in writing to consult with an attorney with respect to this
Release before signing it, (d) he was provided at least twenty-one (21) calendar days after receipt of the Release to consider its terms before signing it, and (e) he is provided seven (7) calendar days from the date of signing
to terminate and revoke this Release, in which case this Release shall be unenforceable, null and void. The Executive may revoke this Release during those seven (7) days by providing written notice of revocation to Recro Pharma, Inc., 490 Lapp
Road, Malvern, PA 19355 Attn: Chief Executive Officer. Provided that the Executive does not revoke this Release, the Release shall become effective on the eighth (8th) day following the
Executive’s execution of the Release (the “Effective Date”). 
 8. Medicare Beneficiary Representation. The
Executive warrants that, as of the date he signs this Agreement, he is not a Medicare beneficiary, is not Medicare eligible, is not within 30 months of becoming Medicare eligible, is not 65 years of age or older, is not suffering from end stage
renal failure or amyotrophic lateral sclerosis, has not received Social Security benefits for 24 months or longer, has not applied for Social Security benefits, and has not been denied Social Security disability benefits and is appealing the denial.
The Executive affirms, covenants, and warrants that he has made no claim, nor is he aware of any facts supporting any claim, against any of the Company Releasees under which any of the Company Releasees could be liable for medical expenses incurred
by the Executive before or after the execution of this Agreement. Furthermore, the Executive is aware of no medical expenses for which Medicare has paid and for which any of the Company Releasees is or could be liable. The Executive agrees and
affirms that, to the best of his knowledge, no liens of any governmental entities, including those for Medicare conditional payments, exist. The Executive acknowledges and agrees that the payment(s) made to him under this Agreement may be reported
as provided in Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007, 42 U.S.C. § 1395y(b)(8). The Executive also agrees to indemnify, defend, and hold the Company Releasees harmless from Medicare claims, liens, damages,
conditional payments, and rights to payment, if any, including attorneys’ fees. The Executive specifically waives any related claims for damages against any and all of the Company Releasees including, without limitation, a private cause of
action provided by 42 U.S.C. § 1395y(b)(3)(A). 
 9. Miscellaneous. 

9.1. Tax Withholding. All payments provided to the Executive will be subject to tax withholding in accordance with applicable law. 

9.2. No Admission of Liability. This Release is not to be construed as an admission of any violation of any federal, state or local
statute, ordinance or regulation or of any duty owed by the Company to the Executive. There have been no such violations, and the Company specifically denies any such violations. 

9.3. No Reinstatement. The Executive agrees that he will not apply for reinstatement with the Company or seek in any way to be
reinstated, re-employed or hired by the Company in the future. 

  
 A-4 

 9.4. Successors and Assigns. This Release shall inure to the benefit of and be binding
upon the Company and the Executive and their respective successors, permitted assigns, executors, administrators and heirs. The Executive may not make any assignment of this Release or any interest herein, by operation of law or otherwise. The
Company may assign this Release to any successor to all or substantially all of its assets and business by means of liquidation, dissolution, merger, consolidation, transfer of assets, or otherwise. 

9.5. Severability. Whenever possible, each provision of this Release will be interpreted in such manner as to be effective and valid
under applicable law. However, if any provision of this Release is held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision, and this Release will be reformed,
construed and enforced as though the invalid, illegal or unenforceable provision had never been herein contained. 
 9.6. Entire
Agreement; Amendments. Except as otherwise provided herein, this Release contains the entire agreement and understanding of the parties hereto relating to the subject matter hereof, and merges and supersedes all prior and contemporaneous
discussions, agreements and understandings of every nature relating to the subject matter hereof. This Release may not be changed or modified, except by an agreement in writing signed by each of the parties hereto. 

9.7. Governing Law. This Release shall be governed by, and enforced in accordance with, the laws of the Commonwealth of Pennsylvania
without regard to the application of the principles of conflicts of laws. 
 9.8. Execution Date; Counterparts and Facsimiles. This
Release may not be signed by the Executive prior to the date of Executive’s termination of employment. This Release may be executed in multiple counterparts (including by facsimile signature), each of which will be deemed to be an original, but
all of which together will constitute but one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf) or other transmission method and any counterpart so delivered shall be deemed to have been duly and
validly delivered and be valid and effective for all purposes. 
 [space intentionally left blank; signature page follows]

  
 A-5 

 IN WITNESS WHEREOF, the Company has caused this Release to be executed by its duly authorized
officer, and the Executive has executed this Release, on the date(s) below written. 
  

			
	RECRO PHARMA, INC.
		
	By:	 	
		
	Name & Title:	 	  

 
			
		
	Date:	 	  

	
	FRED GRAFF
	
	  

		
	Date:	 	  

  
 A-6

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