Document:

Exhibit 10.1

 

June 2, 2017

 

[Name]

 

Re:Tax Reimbursement Agreement

 

To [•]:

 

On April 25, 2017, AdvancePierre Foods Holdings,
Inc. (the “Company”) entered into an Agreement and Plan of Merger (the “Merger Agreement”
and the transactions contemplated by the Merger Agreement, collectively, the “Transaction”) with Tyson Foods,
Inc., a Delaware corporation (“Parent”), and DVB Merger Sub, Inc., a Delaware corporation and a wholly owned
subsidiary of Parent (“Merger Sub”). Pursuant to the Merger Agreement, Merger Sub commenced a cash tender offer
to acquire all of the outstanding shares of common stock of the Company at a price per share of $40.25 net to each seller in cash,
without interest, subject to any applicable withholding taxes. The Company has determined it is appropriate to enter into this
letter agreement (this “Agreement”) with you in the event that you become subject to any Excise Tax (as defined
below) in connection with or following the Transaction.

 

1.       Certain
Definitions. Capitalized terms not defined this Agreement shall have the meaning ascribed thereto in the Merger Agreement.
The following terms shall have the following meanings for purposes of this Agreement:

 

a.       “Accounting
Firm” shall mean PricewaterhouseCoopers LLP or such other nationally recognized certified public accounting firm chosen
by the Company.

 

b.       “Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

c.       “Excise
Tax” shall mean the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with
respect to such excise tax.

 

d.       “Parachute
Value” shall mean, with respect to a Payment, the present value as of the date of the Closing for purposes of Section
280G of the Code of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2), as
determined by the Accounting Firm for purposes of determining whether and to what extent the Excise Tax will apply to such Payment.

 

     

     

    

e.       “Payment”
shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to
or for your benefit, whether paid or payable pursuant to this Agreement or otherwise.

 

2.       Gross-up
Payment.

 

a.       If
it is determined that any Payment would be subject to any Excise Tax, then you shall be entitled to receive an additional payment
(the “Gross-up Payment”) in an amount such that, after payment by you of all taxes (and any interest or penalties
imposed with respect to such taxes), including without limitation any income, employment and other taxes (and any interest and
penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-up Payment, you retain an amount of the Gross-up
Payment equal to the Excise Tax imposed upon the Payment. The Company’s obligation to make Gross-up Payments shall not be
conditioned upon your continued employment with the Company, Parent or any of their respective Affiliates.

 

b.       Notwithstanding
anything to the contrary in this Agreement, the amount of the Gross-up Payment shall not exceed the product of (x) $12,500,000,
multiplied by (y) a fraction the numerator of which equals the aggregate amount of all Gross-up Payments payable pursuant to this
Agreement without regard to this Section 2(0), and the denominator of which equals the aggregate amount of all Gross-up Payments
(not to exceed $12,500,000) payable to employees of the Company pursuant to this Agreement and all other Tax Reimbursement Agreements
entered into on or about the date first above stated, determined without regard to any similar limitation provisions in any such
agreements (such product, the “Cap”).

 

c.       For
purposes of determining the amount of any Gross-up Payment, you will be deemed to pay federal income tax at the highest marginal
rate of federal income taxation in the calendar year in which the Gross-up Payment is to be made and state and local income taxes
at the highest marginal rate of taxation in your state and locality of residence on the date on which the Gross-up Payment is calculated,
net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.

 

3.       Determinations;
Tax Returns.

 

a.       Subject
to the provisions of Section 4, all determinations required to be made under this Section 3(a), including whether and when a Gross-up
Payment is required, the amount of such Gross-up Payment, and the assumptions to be utilized in arriving at such determination
shall be made by the Accounting Firm. The Accounting Firm shall provide detailed supporting calculations both to the Company and
you within fifteen (15) business days of the receipt of notice from you that there has been a Payment or such earlier time as is
requested by the Company. The Company shall solely bear all fees and expenses of the Accounting Firm. Any determination by the
Accounting Firm shall be binding upon you and the Company. As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the initial determination by the Accounting Firm, it is possible that some amount of Gross-up Payment will
not have been made by the Company that should have been made (an “Underpayment”), consistent with the calculations
required to be made pursuant to this Agreement. In the event the Company exhausts its remedies pursuant to Section 4 and you thereafter
are required to make a

 

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payment of any Excise Tax, you shall so notify the Company,
which will direct the Accounting Firm to determine the amount of the Underpayment that has occurred and any such Underpayment shall
be promptly paid by the Company to you or for your benefit (subject in all instances to the Cap). You and the Company shall each
provide the Accounting Firm access to and copies of any books, records and documents in your or the Company’s possession,
as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection
with the preparation and issuance of the determination contemplated by this Section 3(a).

 

b.       You
agree that any federal, state and local income or other tax returns filed by you will be prepared and filed on a basis consistent
with the determination of the Accounting Firm with respect to any Excise Tax payable by you. You agree that you will make proper
payment of the amount of any Excise Tax, and at the request of the Company, provide to the Company true and correct copies (with
any amendments) of your federal income tax return as filed with the Internal Revenue Service and corresponding state and local
tax returns, if relevant, as filed with the applicable taxing authority, and such other documents reasonably requested by the Company,
evidencing such payment. If prior to the filing of your federal income tax return, or corresponding state or local tax return,
if relevant, the Accounting Firm determines that the amount of the Gross-Up Payment should be reduced, you agree that within fifteen
(15) business days of receipt of written notice, to pay to the Company the amount of such reduction; provided the Accounting
Firm has provided to you written documentation supporting such reduction prior to your filing of such tax returns.

 

4.       Claims
by the IRS. You shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would
require the payment by the Company of the Gross-up Payment. Such notification shall be given as soon as practicable, but no later
than fifteen (15) business days after you are informed in writing of such claim. You shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid. You shall not pay such claim prior to the expiration of the
thirty (30) calendar day period following the date on which you give such notice to the Company (or such shorter period ending
on the date that any payment of taxes with respect to such claim is due). If the Company notifies you in writing prior to the expiration
of such period that the Company desires to contest such claim, you shall:

 

a.       give
the Company any information (including, without limitation, any written records or documents) reasonably requested by the Company
relating to such claim;

 

b.       take
such action in connection with contesting such claim as the Company may reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company;

 

c.       cooperate
with the Company in good faith in order effectively to contest such claim; and

 

d.       permit
the Company to participate in any proceedings relating to such claim;

 

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provided, however, that the Company shall bear
and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest,
and shall indemnify and hold you harmless, on an after-tax basis, for any Excise Tax or income, employment and other tax (including
interest and penalties) imposed as a result of such representation and payment of costs and expenses (disregarding for this purpose
the Cap). Without limitation on the foregoing provisions of this Section 4, the Company shall control all proceedings taken in
connection with such contest, and, at its sole discretion, may pursue or forgo any and all administrative appeals, proceedings,
hearings, and conferences with the applicable taxing authority in respect of such claim and may, at its sole discretion, either
pay the tax claimed to the appropriate taxing authority on your behalf and direct you to sue for a refund or to contest the claim
in any permissible manner, and you agree to prosecute such contest to a determination before any administrative tribunal, in a
court of initial jurisdiction, and in one or more appellate courts, as the Company shall determine; provided, further,
that, if the Company pays such claim and directs you to sue for a refund, the Company shall indemnify and hold you harmless, on
an after-tax basis, from any Excise Tax or income, employment or other tax (including interest or penalties) imposed with respect
to such payment or with respect to any imputed income in connection with such payment (disregarding for this purpose the Cap);
and provided, further, that any extension of the statute of limitations relating to payment of taxes for the taxable
year with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore,
the Company’s control of the contest shall be limited to issues with respect to which the Gross-up Payment would be payable
pursuant to this Agreement, and you shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

 

5.       Refunds.
If, after your receipt of a Gross-up Payment or payment by the Company of an amount on your behalf pursuant to Section 4, you become
entitled to receive any refund with respect to the Excise Tax to which such Gross-up Payment relates or with respect to such claim,
you shall (subject to the Company’s complying with the requirements of Section 4, if applicable) promptly pay to the Company
the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after payment
by the Company of an amount on your behalf pursuant to Section 4, a determination is made that you shall not be entitled to any
refund with respect to such claim and the Company does not notify you in writing of its intent to contest such denial of refund
prior to the expiration of thirty (30) calendar days after such determination, then the amount of such payment shall offset, to
the extent thereof, the amount of Gross-up Payment required to be paid.

 

6.       Payment
of the Gross-up Payment. Any Gross-up Payment, as determined pursuant to this Agreement, shall be paid by the Company to you
no earlier than ninety (90) calendar days nor later than five (5) calendar days prior to the due date of your income tax return
on which the Excise Tax is included. Notwithstanding any other provision of this Agreement, the Company may, in its sole discretion,
withhold and pay over to the Internal Revenue Service or any other applicable taxing authority, for your benefit, all or any portion
of any Gross-up Payment, and you hereby consent to such withholding.

 

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7.       Attorneys’
Fees. If any action is brought to enforce the terms of this Agreement, the prevailing party will be entitled to recover its
reasonable attorneys’ fees, costs and expenses from the other party, in addition to any other relief to which the prevailing
party may be entitled.

 

8.       Conditionality.
This Agreement is conditioned upon the consummation of the Transaction, and will become null and void, and will have no effect
whatsoever, in the event the Transaction is not consummated for any reason by the first anniversary of the date first stated above.

 

9.       Severability.
The provisions of this Agreement are severable, and if any part of it is found to be invalid or unenforceable, the other parts
shall remain fully valid and enforceable. Specifically, should a court, arbitrator, or government agency conclude that a particular
claim may not be released as a matter of law, it is the intention of the parties that the general release, the waiver of unknown
claims and the covenant not to sue above shall otherwise remain effective to release any and all other claims.

 

10.       Modification;
Counterparts; Facsimile/PDF Signatures. It is expressly agreed that this Agreement shall be binding on any acquirer of or successor
to the Company, including Parent, and may not be altered, amended, modified, or otherwise changed in any respect except by another
written agreement that specifically refers to this Agreement, executed by each of the parties to this Agreement. This Agreement
may be executed in any number of counterparts, each of which shall constitute an original and all of which together shall constitute
one and the same instrument. Execution of a facsimile or PDF copy shall have the same force and effect as execution of an original,
and a copy of a signature will be equally admissible in any legal proceeding as if an original.

 

11.       Section
409A. The Company makes no representation about the tax treatment or impact of any of the payment(s) or benefit(s) in this
Agreement. The intent of the parties is that the payment(s) and benefit(s) comply with Section 409A of the Code to the extent subject
thereto, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered in compliance
with such intent. Neither the Company nor any of its affiliates or successors (including Parent and Merger Sub), nor any of their
current or former officers, directors, employees or representatives shall have any liability to you or otherwise have any obligation
to gross-up or indemnify you or otherwise hold you harmless from any taxes or penalties you may incur with respect to Section 409A
of the Code regarding any payment(s) or benefit(s) contemplated by this Agreement.

 

12.       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard
to the choice of law principles thereof.

 

13.       Entire
Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter of this Agreement
and supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the subject
matter of this Agreement.

 

[Remainder of page intentionally left blank.]

 

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If you agree to abide by the terms outlined in this Agreement,
please sign this letter below and return it to me.

 

	 	Sincerely,
	 	 	 
	 	AdvancePierre Foods Holdings, Inc.
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	     	Linn Harson
	 	     	General Counsel

 

 

 

READ, UNDERSTOOD AND AGREED

 

		 
	Name (Sign)	 
	 	 
		 
	Name (Print)	 

 

 

	Date:  		 

 

 

 

    
[Signature Page to Tax Reimbursement Agreement]EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of the
5th day of June 2017, by and between Recro Pharma, Inc., a Pennsylvania corporation (the “Company”), and Ryan D. Lake, an individual (the “Executive”). 

BACKGROUND 

WHEREAS, the Company desires to employ the Executive, and the 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 June 5, 2017 (the “Effective Date”), the Company shall employ the Executive as
Senior Vice President of Finance and Chief Accounting Officer. In such capacity, the Executive shall perform all such duties as are assigned to him consistent with his titled position by the Company’s Chief Financial Officer (the
“CFO”) and/or Board of Directors of the Company (the “Board”), and shall use his reasonable best efforts to promote the interests of the Company. Nothing contained herein shall preclude the Executive from managing personal
investments, participating in charitable, community, educational and professional activities, or, with the prior written 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 the 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/its intent not to renew. 
 3. Compensation. From and after June 1, 2017, the Company shall pay the Executive in accordance
with its normal bi-weekly payroll practices an annual salary at the initial rate of Two-Hundred and Seventy Thousand Dollars ($270,000) per year (the “Base Salary”). The 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 Company. The Base Salary, as in effect from time to time, may not be decreased without the prior written consent of the Executive, except as part of an across the board
decrease in which the percentage decrease in the Executive’s base salary is not greater than the smallest percentage decrease of any other senior executive officer. 

4. Other Benefits. 

(a) Bonuses. 

(i) The Executive will be entitled to receive a signing bonus in the amount of Sixty-Five Thousand Dollars ($65,000) payable
in a lump sum on the first payroll date after the Effective Date, which payment shall be subject to applicable taxes and withholdings. 

 (ii) The 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 the Executive’s Base Salary; provided, however, that the Executive’s annual bonus for fiscal year
2017 will be pro-rated to reflect the time period from the Effective Date through the end of the fiscal year. Notwithstanding the foregoing, the Company reserves the right to change or terminate any bonus program at any time in the Board’s sole
discretion. 
 (b) Benefits Plans. The 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. The Executive shall be entitled to five (5) 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
Company, which shall be pro-rated for 2017 from the Effective Date through the end of the fiscal year. 
 (d) Expense
Reimbursement. The Executive shall be entitled to receive reimbursement for all reasonable employment-related expenses incurred by the 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. 

(i) On the Effective Date, and subject to approval by the Compensation Committee of the Board (the “Compensation
Committee”), the Executive will receive an inducement grant in the form of an option on 65,000 shares of the Company’s common stock (the “Option”) which shall not be granted pursuant to the Recro Pharma, Inc. Amended and Restated
Equity Incentive Plan (the “Equity Incentive Plan”). One forty-eighth of the Option shall vest on each monthly anniversary of the Effective Date, provided that the Executive is still employed on such date. The term of the Option shall be
ten years. 
 (ii) On the Effective Date, and subject to approval by the Compensation Committee, the Executive will receive
an inducement grant in the form of 10,000 time-based restricted stock units of the Company’s common stock (the “Time-Based RSUs”), which shall not be granted pursuant to the Equity Incentive Plan. The Time-Based RSUs shall vest
on an annual basis over four years. 
 (iii) 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 Equity Incentive Plan) or in Section 10(a)(v), the Option and the Time-Based RSUs, to the extent not already vested as a result of
the Change of Control, shall be vested in full. 
 (iv) The Executive shall be eligible for a regular annual option grant
(with such eligibility determined on the same basis as other senior executives, in the 

  
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discretion of the Compensation Committee) and for other grants under the Equity Incentive 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 Compensation Committee. All stock options granted to the Executive shall be incentive stock options to the fullest extent permitted by law. 

5. Confidential Information. 

(a) The Executive agrees at all times during the term of his 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. The 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 the Executive can establish by competent proof is or becomes public knowledge or part of the public domain through no act
or omission of the Executive. Notwithstanding the foregoing, the Executive shall be permitted to disclose Confidential Information pursuant to a court order, government order or any other legal requirement of disclosure if no suitable protective
order or equivalent remedy is available, provided that the 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. Further, it shall not be a violation of the Executive’s confidentiality obligations if disclosure of
confidential information (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigation a suspected
violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. 

(b) The Executive agrees that he shall not, during his employment with Company, improperly use or disclose any proprietary
information or trade secrets of any former employer of the Executive or other Person and that the Executive will not bring onto the premises of the 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) The Executive recognizes that the Company has
received and in the future will receive from third parties certain 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. The 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 work for the Company consistent with
Company’s agreement with such third party. 

  
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 6. Inventions. 

(a) The Executive agrees that he 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 the 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 the Executive may, solely or jointly, conceive or develop or reduce to practice during the period of time the
Executive is in the employ of the Company that relate to the Company and/or its products (collectively referred to as “Inventions”). The Executive further acknowledges that all original works of authorship which are made by the Executive
(solely or jointly with others) within the scope of and during the period of his employment with the Company and which are protectable by copyright are “works made for hire”, as that term is defined in the United States Copyright Act. The
Executive understands and agrees that the decision whether or not to commercialize or market any invention developed by the 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 the Executive as a result of Company’s efforts to commercialize or market any such invention. 

(b) The Executive agrees to keep and maintain adequate and current written records of all Inventions made by the Executive
(solely or jointly with others) during the term of his 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 the Company at all times. 
 (c) If the Company is unable because of the Executive’s mental or physical
incapacity or for any other reason to secure his signature on any such document, then the Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as his agent and attorney-in-fact to act for and
in the 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 the Executive. 
 7. Returning Company Documents. The Executive agrees that, at the time of leaving the
employ of the Company, he shall deliver to the Company (and will not keep in his 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 the Executive pursuant to his employment with the Company or otherwise belonging to the Company, its successors or assigns. 

8. Nonsolicitation and Noncompetition. 

(a) The Executive agrees that during the term of his employment with the Company and for a period of one (1) year
immediately following the termination of the Executive’s employment with the Company for any reason whatsoever, whether with or without cause, (i) the 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 the Company and/or its affiliates, either for the
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 

  
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Company, or any potential investor, licensor, licensee, supplier or customer to which the Company and/or its affiliates have made a presentation or with which the Company and/or its affiliates
have been having discussions, to not transact business with the Company and/or its affiliates or to transact business with the Executive or any other Person as an alternative to or in addition to the Company and/or its affiliates. 

(b) The Executive agrees that during the term of his employment with the Company and for a period of one (1) year
immediately following the termination of the Executive’s employment with the Company for any reason whatsoever, whether with or without cause, the 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 the Executive of the provisions of this Agreement,
including but not limited to, the restrictions in Sections through 5 through 8, will cause the Company irreparable harm that cannot be remedied adequately by monetary damages. The Executive agrees that, in the event of such a violation, the 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 the Company may be entitled. The Company shall be entitled to commence action for such relief in any state or federal court in the Commonwealth of
Pennsylvania, and the Executive waives to the fullest extent permitted by law any objection that he 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. 

10. Termination of Employment. 

(a) Notwithstanding the provisions of Section 2 hereof, the Executive’s employment shall terminate, or be subject to
termination, as follows: 
 (i) Death or Disability. In the event the Executive dies, this Agreement shall terminate.
If the Executive becomes entitled to long-term disability benefits under the Company’s then-current disability insurance policy(ies) applicable to the Executive, the Company may, at its option, terminate the Executive’s employment
hereunder effective immediately upon written notice. If the Company does not have in effect disability insurance covering the Executive and/or if “disabled” is not defined therein, the Executive shall be deemed disabled hereunder at such
time that he suffers a 

  
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physical or mental disability that renders him unable to perform the duties of his 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 the Executive’s employment hereunder for Cause. For purposes of this Agreement, the Company shall have “Cause” to terminate the Executive’s employment hereunder upon (a) conduct amounting
to fraud or dishonesty against the Company; (b) the willful failure by the Executive to substantially perform his duties hereunder or the material violation by the 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 the Executive; (c) the Executive’s loss of any permit, license, accreditation or other authorization necessary to the
Executive’s performance of his duties hereunder, as determined by the Company in its sole discretion; (d) the Executive’s conviction of a felony or a plea by the Executive of nolo contendere to a felony; or (e) other willful
conduct by the 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 the Executive. No act, or
omission to act, shall be considered “willful” unless such act or omission is done without a good faith belief by the 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 the 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. The 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. The 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 the Executive and such change is not
cured within thirty (30) days following written notice by the Executive to the Company, (b) reduces the Executive’s Base Salary other than as permitted by Section 3 or the amount of the Target Bonus, or (c) requires the
Executive to be principally based at any office or location more than fifty (50) miles from the 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 the 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 within thirty (30) days after receipt of such notice, and the 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 

  
 -6- 

 
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 the Executive’s employment for any reason, the 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 the Executive’s employment by reason of death or Disability,
the Company shall pay or provide to the Executive or the Executive’s estate (A) the Accrued Benefits, (B) the 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 the 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 the 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 the Executive and
his eligible dependents at the 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
the Executive terminates this Agreement during the twelve (12) months after a Change of Control pursuant to Section 10(a)(v), the 

  
 -7- 

 
Company shall (A) pay or provide to the Executive the Accrued Benefits, (B) pay the 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 the Executive is employed by the Company in such fiscal year of the effective date of termination), with such annual bonus (if any) paid at the same time it would
have otherwise been paid absent the Executive’s termination of employment, (C) continue to pay the Executive his Base Salary, in accordance with its normal payroll practices (but not less frequently than monthly), and shall continue the
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 the 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 the 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 the Executive’s employment, all
payments hereunder shall cease. 
 (v) The payments and benefits described in Sections 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 Sections 10(b)(ii) and 10(b)(iii), other than the Accrued Benefits, are conditioned on: 

i. The 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 sixtieth (60th) day following the effective date of his 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”). Subject to Section 11 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 sixty (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. 
 ii. The Executive’s continued compliance with
the provisions of Sections 5, 6, 7 and 8 of this Agreement. 
 (vi) The 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 Sections 10(b)(ii) and 10(b)(iii), and such benefits shall not be reduced or offset by an amounts received by the Executive from any other
source, except to the extent the 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 4(e), 5, 6, 7, 8, 9, 10(b), 10(c), 11, 12, 13, 14, 15 and 16. 

  
 -8- 

 11. Compliance with Section 409A. 

(a) Notwithstanding anything to the contrary in this Agreement, all benefits or payments provided by the Company to the
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 of benefits which constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code may be made under this Agreement upon an event and in a manner permitted by Section 409A
of the Code or an applicable exemption. 
 (b) 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 the Executive has a “separation from service” from the Company within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended
(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 the 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 the Executive’s “separation from service” (taking into account the preceding sentence of this paragraph) will be deferred without interest and paid to the 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) (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. 
 (c) Notwithstanding
anything to the contrary in this Agreement, except to the extent any expense, reimbursement or in-kind benefit provided to the Executive does not constitute a “deferral of compensation” within the meaning of Section 409A of the Code,
and its implementing regulations and guidance, (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to the Executive during any calendar year will not affect the amount of expenses eligible for reimbursement or
in-kind benefits provided to the Executive in any other calendar year, (ii) the reimbursements for expenses for which the 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. 

12. Parachute Payment. 

(a) If any payment or benefit the Executive would receive under this Agreement or otherwise in connection with a Change of
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

  
 -9- 

 
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, the 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, the Executive will have no obligation to return any portion of the Total Payment pursuant to the preceding
sentence. Unless the 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 of 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 the Executive and the Company within fifteen (15) calendar days after the date on which the 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. 

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

CEO

		
	 If to the Executive:
	  	 Ryan D. Lake
 Address on file.

 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. 

  
 -10- 

 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 the Executive and hold the 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 the 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 the Executive’s obligation to repay any such advance if it is subsequently determined that he was not
entitled to indemnification, and shall provide for the 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, the
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 the Executive. 

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. For the
avoidance of doubt, any prior agreements or representations made by either party which are not set forth expressly in this Agreement, including, but not limited to, the Offer Letter dated May 12, 2017, are hereby superseded. 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 the Executive and his 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 the 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 the 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. 

  
 -11- 

 (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 the 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] 

  
 -12- 

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

			
	EXECUTIVE:
	
	/s/ Ryan D. Lake
	Ryan D. Lake
	
	COMPANY:
	
	RECRO PHARMA, INC.
		
	By:	 	/s/ Gerri Henwood
		 	Gerri Henwood, President

  
 -13- 

 Exhibit A 

SEPARATION AND MUTUAL RELEASE AGREEMENT 

THIS SEPARATION AND MUTUAL RELEASE AGREEMENT (this “Release”) is made by and between Ryan D. Lake (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 June __, 2017 (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 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 

  
 A-15 

 
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. 

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. 

  
 A-16 

 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. 
 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-17 

 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:	 	 
	
	RYAN D. LAKE
		
	   
	 	   

		
	Date:	 	 

  
 A-18

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