Document:

EX-10.2

 Exhibit 10.2 

 
 

 
 February 1, 2012 
 Mr. Carlos Laber 
 1465 Cedar Place 
 Los Altos, CA 94024 
 Dear Carlos, 
 We are pleased to offer you a position with Exar Corporation as Senior Vice President, Worldwide Research and Development, reporting to Louis DiNardo, President and CEO. Your starting annual salary will
be $300,000 paid bi-weekly in accordance with Exar’s standard payroll practices. 
 You will be granted 200,000 stock options on the first
trade date of the month following your hire date. Stock options vest 25% per year over a four year period and the option price is established as the closing value of the stock on the date of the grant. You will also be granted 25,000 restricted
stock units (RSU’s) which vest 33 1/3% per year over a three year period. 
 In the event there is a Change of Control and your employment
is terminated within the first twenty four (24) months from your hire date due to said Change of Control either by Exar without Cause or by you for Good Reason, fifty percent (50%) of the options and restricted stock unit awards granted to you by
Exar and within the context of this offer letter, to the extent then outstanding and otherwise unvested, will immediately vest; provided, however, that Exar’s obligation to provide such accelerated vesting shall be contingent upon your
providing to Exar, upon or promptly following your last day of employment with Exar, a valid, executed general release agreement in a form acceptable to Exar, and such release agreement not having been revoked by you pursuant to any revocation
rights afforded by applicable law. 
 As used herein, the term “Cause” means (i) your conviction of any felony or conviction of any
crime involving moral turpitude or dishonesty; (ii) participation in a fraud or act of dishonesty against Exar; (iii) conduct by you which, based upon a good faith and reasonable factual investigation and determination by Exar, demonstrates gross
incompetence; or (iv) intentional, material violation by you of any contract between you and Exar or any statutory duty of you to Exar that is not corrected within thirty (30) days after written notice to you thereof. Physical or mental disability
shall not constitute “Cause.” 
 As used herein, the term “Good Reason” means, without your express written consent, (i) a
material diminution in your authority, duties or responsibilities or (ii) a material diminution in your base compensation, provided that any such diminution shall not constitute “Good Reason” unless both (x) you provide written notice to
Exar of the condition claimed to constitute Good Reason within ninety (90) days of the initial existence of such condition, and (y) Exar fails to remedy such condition within thirty (30) days of receiving such written notice thereof; and provided,
further, that in all events the termination of your employment with Exar shall not be treated as a termination for “Good Reason” unless such termination occurs not more than six (6) months following the initial existence of the condition
claimed to constitute “Good Reason.” 
  
 

 

 Exar Corporation has a very competitive fringe benefit package that includes a 401(k) Plan with Company
match and an Employee Stock Purchase Plan. We are excited to have you join our team and believe that your association with us will be mutually beneficial. 
 If our offer is acceptable, please sign and date in the space provided below and return one copy to me, email diane.hill@exar.com, by 5pm on Friday, February 3rd. This offer is contingent upon
satisfactory completion of a background check and your providing documentation that satisfies the requirements of the Immigration Reform and Control Act of 1986 (please refer to the enclosed notice). 

 

							
	Sincerely,	 		 	Agreed and Accepted:	 	
				
	 /s/ Diane Hill
	 		 	 /s/ Carlos Laber
	 	2/3/2012
	Diane Hill	 		 	Carlos Laber	 	Date
	Vice President	 		 		 	
	Human Resources	 		 	  
	 	
		 		 	Start DateEX-10.1

 Exhibit 10.1 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 BY AND BETWEEN 

HORIZON PHARMA, INC., HORIZON PHARMA USA, INC. AND 
 TODD N. SMITH 
 This Executive Employment Agreement (hereinafter referred
to as the “Agreement”), is entered into effective June 1, 2012 (the “Effective Date”) by and between Horizon Pharma, Inc., a Delaware corporation, and its wholly owned subsidiary, Horizon Pharma
USA, Inc., a Delaware corporation, each having a principal place of business at 520 Lake Cook Road, Suite 520, Deerfield, IL 60015 (hereinafter referred to together as the “Company”), and Todd N. Smith, an individual residing
at 31445 Reigate Lane, Green Oaks, IL 60044, domiciled in the State of Illinois (hereinafter referred to as the “Executive”). This Agreement supersedes in its entirety the Employment Offer Letter entered into by and between
Horizon Pharma USA, Inc. and the Executive on September 24, 2010 (the “Prior Agreement”). 

RECITALS 

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

AGREEMENT 
 1.
Employment. 
 1.1 Term. The Company hereby agrees to employ the Executive, and the Executive hereby accepts
employment by the Company, upon the terms and conditions set forth in this Agreement. The Executive’s original date of hire was October 1, 2010 (the “Hire Date”). The Executive’s employment shall be governed
under the terms set forth in this Agreement beginning on the Effective Date and shall continue until it is terminated pursuant to Section 4 herein (hereinafter referred to as the “Term”). 

 1.2 Title. The Executive shall have the title of Executive Vice President and Chief
Commercial Officer (hereinafter referred to as “CCO”) of the Company and shall serve in such other capacity or capacities commensurate with his position as Executive Vice President and CCO as the President and CEO of
the Company may from time to time prescribe. 
 1.3 Duties. The Executive shall do and perform all services, acts or
things necessary or advisable to manage and conduct the business of the Company and shall have the authority and responsibilities which are generally associated with the position of Executive Vice President and CCO, including being responsible for
the Company’s marketing and sales strategy and operations. The Executive shall report to the President and CEO. 
 1.4
Policies and Practices. The employment relationship between the Parties shall be governed by this Agreement and the policies and practices established by the Company and the Board of Directors (hereinafter referred to as the
“Board”). In the event that the terms of this Agreement differ from or are in conflict with the Company’s policies or practices or the Company’s Employee Handbook, this Agreement shall control. 

1.5 Location. The Executive shall perform the services the Executive is required to perform pursuant to this Agreement in the
Company’s Deerfield, IL headquarters. The Company may from time to time require the Executive to travel outside the Company’s headquarters in Deerfield, IL and other locations in connection with the Company’s business. 

2. Loyalty of Executive. 

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

2.3 Agreement not to Participate in Company’s Competitors. During the Term of this Agreement, the Executive agrees not to
acquire, assume or participate in, directly or indirectly, any position, investment or interest known by the Executive to be adverse or antagonistic to the Company, its business or prospects, financial or otherwise or in any company, person or
entity that is, directly or indirectly, in competition with the business of the Company or any of its affiliates. 

 3. Compensation to Executive. 

3.1 Base Salary. The Company shall pay the Executive a base salary at the initial annualized rate of three hundred thirty-three
thousand dollars ($333,000.00) per year, subject to standard deductions and withholdings, or such higher rate as may be determined from time to time by the Board or the compensation committee thereof (hereinafter referred to as the “Base
Salary”). Such Base Salary shall be paid in accordance with the Company’s standard payroll practice. Payments of salary installments shall be made no less frequently than once per month. The Executive’s Base Salary will be
reviewed annually each December and the Executive shall be eligible to receive a salary increase (but not decrease) annually in an amount to be determined by the Board or the compensation committee thereof in its sole and exclusive discretion. Once
increased, the new salary shall become the Base Salary for purposes of this Agreement and shall not be reduced without the Executive’s written consent. Any reduction in the Base Salary of the Executive, without his written consent, shall be
deemed Good Reason as set forth in and subject to Section 4.5.2 of this Agreement. 
 3.2 Discretionary Bonus.
Provided the Executive meets the conditions stated in this Section 3.2, the Executive shall be eligible for an annual discretionary bonus (hereinafter referred to as the “Bonus”) with a target amount of forty percent
(40%) of the Executive’s Base Salary, subject to standard deductions and withholdings, based on the Board’s determination, in good faith, and based upon the Executive’s individual achievement and company performance objectives as
set by the Board or the compensation committee thereof, of whether the Executive has met such performance milestones as are established for the Executive by the Board or the compensation committee thereof, in good faith, in consultation with the
Executive (hereinafter referred to as the “Performance Milestones”). The Performance Milestones will be based on certain factors including, but not limited to, the Executive’s performance and the Company’s financial
performance. The Executive’s Bonus target will be reviewed annually and may be adjusted by the Board or the compensation committee thereof in its discretion, provided however, that the Bonus target may only be reduced upon the Executive’s
written consent. The Executive must be employed on the date the Bonus is awarded to be eligible for the Bonus, subject to the termination provisions thereof. The Bonus shall be paid during the calendar year following the calendar year for which such
Bonus was earned. 
 3.3 [Reserved]. 
 3.4 Discretionary Grants. At least one time per year, the Board shall consider, in good faith, whether to grant additional equity awards to the Executive. 

3.5 Legal Review. Upon the Executive’s submission of appropriate itemized proof and verification of reasonable and customary
legal fees incurred by the Executive in obtaining legal advice associated with the review, preparation, approval, and execution of this Agreement, the Company shall pay for such legal fees subject to receipt of appropriate proof and verification of
such legal fees no later than ninety (90) days after such expenses are incurred by the Executive. The Company agrees to pay all reasonable legal fees pursuant to Section 3.5 of this Agreement within thirty (30) days of receipt of an
invoice for legal services from the Executive and/or his attorneys. 

 3.6 Changes to Compensation. The Executive’s compensation may be changed from
time to time by mutual agreement of the Executive and the Company. In the event that the Executive’s base salary is materially decreased without his written consent, said decrease will be Good Reason for the Executive to terminate the Agreement
as set forth in and subject to Section 4.5.2 of this Agreement. 
 3.7 Taxes. All amounts paid under this Agreement
to the Executive by the Company will be paid less applicable tax withholdings and any other withholdings required by law or authorized by the Executive. 
 3.8 Benefits. The Executive shall, in accordance with Company policy and the terms of the applicable plan documents, be eligible to participate in benefits under any executive benefit plan or
arrangement which may be in effect from time to time and made available to the Company’s executives or key management employees, provided, however, that the Executive shall be entitled to at least four (4) weeks of paid vacation annually.

 4. Termination. 
 4.1 Termination by the Company. The Executive’s employment with the Company may be terminated only under the following conditions: 

4.1.1 Termination for Death or Disability. The Executive’s employment with the Company shall terminate effective upon the
date of the Executive’s death or “Complete Disability” (as defined in Section 4.5.1), provided, however, that this Section 4.1.1 shall in no way limit the Company’s obligations to provide such reasonable accommodations
to the Executive and/or his heirs as may be required by law. 
 4.1.2 Termination by the Company For Cause. The Company
may terminate the Executive’s employment under this Agreement for “Cause” (as defined in Section 4.5.3) by delivery of written notice to the Executive specifying the Cause or Causes relied upon for such termination, provided that
such notice is delivered within two (2) months following the occurrence or discovery of any event or events constituting “Cause”. Any notice of termination given pursuant to this Section 4.1.2 shall effect termination as of the
date of the notice or such date as specified in the notice. The Executive shall have the right to appear before the full Board before any termination for Cause becomes effective and binding upon the Executive. 

4.1.3 Termination by the Company Without Cause. The Company may terminate the Executive’s employment under this Agreement at
any time and for any reason or no reason subject to the requirements set out in Section 4.4 of this Agreement. Such termination shall be effective on the date the Executive is so informed or as otherwise specified by the Company, pursuant to
notice requirements set forth in Section 6 of this Agreement. 

 4.2 Termination by the Executive. The Executive may terminate his employment with the
Company at any time and for any reason or no reason, including, but not limited, to the following conditions: 
 4.2.1 Good
Reason. The Executive may terminate his employment under this Agreement for “Good Reason” (as defined below in Section 4.5.2) by delivery of written notice to the Company specifying the Good Reason relied upon by the Executive for
such termination in accordance with the requirements of such section. 
 4.2.2 Without Good Reason. The Executive may
terminate the Executive’s employment hereunder for other than Good Reason upon thirty (30) days written notice to the Company. 
 4.3 Termination by Mutual Agreement of the Parties. The Executive’s employment pursuant to this Agreement may be terminated at any time upon a mutual agreement in writing of the Parties. Any
such termination of employment shall have the consequences specified in such mutual agreement. 
 4.4 Compensation to
Executive Upon Termination. 
 4.4.1 Death or Complete Disability. If the Executive’s employment shall be
terminated by death or Complete Disability as provided in Section 4.1.1, the Company shall pay to the Executive, and/or the Executive’s heirs, all earned but unpaid Base Salary, any earned but unpaid discretionary bonuses for any prior
period at such time as bonuses would have been paid if the Executive remained employed, all accrued but unpaid business expenses, and all accrued but unused vacation time earned through the date of termination at the rate in effect at the time of
termination (hereinafter referred to as the “Accrued Amounts”), less standard deductions and withholdings. The Executive shall also be eligible to receive a pro-rated bonus for the year of termination, as determined by the
Board or the Compensation Committee of the Board based on actual performance and the period of the year he was employed (hereinafter referred to as the “Pro-rata Bonus”), less standard deductions and withholdings, to be paid
as a lump sum within thirty (30) days after the date of termination. 
 4.4.2 With Cause or Without Good Reason.
If the Executive’s employment shall be terminated by the Company for Cause, or if the Executive terminates employment hereunder without Good Reason, the Company shall pay the Executive’s Base Salary, accrued but unpaid business
expenses and accrued and unused vacation benefits earned through the date of termination at the rate in effect at the time of termination, less standard deductions and withholdings. 

4.4.3 Without Cause or For Good Reason. If the Company terminates the Executive’s employment without Cause or the Executive
terminates his employment for Good Reason, the Company shall pay the Accrued Amounts subject to standard deductions and withholdings, to be paid as a lump sum no later than thirty (30) days after the date of termination. In addition, subject to the
limitations stated in this Agreement and upon the Executive’s furnishing to the Company an executed waiver and release of 

 
claims (the form of which is attached hereto as Exhibit A) (the “Release”) within the applicable time period set forth therein, but in no event later than forty-five days
following termination of employment and permitting such Release to become effective in accordance with its terms (the “Release Effective Date”), and subject to the Executive entering into no later than the Release Effective
Date a non-competition agreement to be effective during the Severance Period, substantially similar to Section 2.3, and continuing to abide by its terms during the Severance Period, the Executive shall be entitled to: 

(i) the equivalent of the Executive’s annual Base Salary in effect at the time of termination for a period of twelve
(12) months following the date of termination (hereinafter referred to as the “Severance Period”), less standard deductions and withholdings, to be paid during the Severance Period according to the Company’s regular
payroll practices, subject to any delay in payment required by Section 4.6 in connection with the Release Effective Date; 

(ii) in the event the Executive timely elects continued coverage under COBRA, the Company will continue to pay the same portion
of the Executive’s COBRA health insurance premium as the percentage of health insurance premiums that it paid during the Executive’s employment, including any amounts that the Company paid for benefits to the qualifying family members of
the Executive, up until the earlier of either (i) the last day of the Severance Period or, (ii) the date on which the Executive begins full-time employment with another company or business entity which offers comparable health insurance
coverage to the Executive; and 
 (iii) notwithstanding anything to the contrary set forth herein, the Severance Period,
and the Company’s provisions of cash severance benefits to the Executive under this Section 4.4.3 shall immediately cease upon the date that the Executive begins full-time employment with another company or business entity which offers
base compensation to the Executive of at least ninety-five percent (95%) of the Executive’s annual Base Salary amount in effect at the time of termination. The Executive agrees to immediately notify the Company in writing of any such
employment. 
 4.4.4 Equity Award Acceleration. 

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

 4.5 Definitions. For purposes of this Agreement, the following terms shall have the
following meanings: 
 4.5.1 Complete Disability. “Complete Disability” shall mean the inability
of the Executive to perform the Executive’s duties under this Agreement, whether with or without reasonable accommodation, because the Executive has become permanently disabled within the meaning of any policy of disability income insurance
covering employees of the Company then in force. In the event the Company has no policy of disability income insurance covering employees of the Company in force when the Executive becomes disabled, the term “Complete Disability” shall
mean the inability of the Executive to perform the Executive’s duties under this Agreement, whether with or without reasonable accommodation, by reason of any incapacity, physical or mental, which the Board, based upon medical advice or an
opinion provided by a licensed physician, determines to have incapacitated the Executive from satisfactorily performing all of the Executive’s usual services for the Company, with or without reasonable accommodation, for a period of at least
one hundred eighty (180) days during any twelve (12) month period that need not be consecutive. 
 4.5.2 Good
Reason. “Good Reason” for the Executive to terminate the Executive’s employment hereunder shall mean the occurrence of any of the following events without the Executive’s consent: 

(i) a material reduction in the Executive’s duties, authority, or responsibilities relative to the duties, authority, or
responsibilities in effect immediately prior to such reduction, including by way of example, having the same title, duties, authority and responsibilities at a subsidiary level following a Change in Control; 

(ii) the relocation of the Executive’s primary work location to a point more than fifty (50) miles from the
Executive’s current work location set forth in Section 1.5 that requires a material increase in the Executive’s one-way driving distance; and 
 (iii) a material reduction by the Company of the Executive’s base salary or annual target Bonus opportunity, without the written consent of the Executive, as initially set forth herein or as
the same may be increased from time to time pursuant to this Agreement. 
 Provided, however that, such termination by the Executive shall only
be deemed for Good Reason pursuant to the foregoing definition if (i) the Company is given written notice from the Executive within sixty (60) days following the first occurrence of the condition that he considers to constitute Good Reason
describing the condition and the Company fails to satisfactorily remedy such condition within thirty (30) days following such written notice, and (ii) the Executive terminates employment within thirty (30) days following the end of
the period within which the Company was entitled to remedy the condition constituting Good Reason but failed to do so. 

 4.5.3 Cause. “Cause” for the Company to terminate the
Executive’s employment hereunder shall mean the occurrence of any of the following events, as determined reasonably and in good faith by the Board or a committee designated by the Board: 

(i) the Executive’s gross negligence or willful failure to substantially perform his duties and responsibilities to the
Company or willful and deliberate violation of a Company policy; 
 (ii) the Executive’s conviction of a felony or
the Executive’s commission of any act of fraud, embezzlement or dishonesty against the Company or involving moral turpitude that is likely to inflict or has inflicted material injury on the business of the Company, to be determined by the sole
discretion of the Company; 
 (iii) the Executive’s unauthorized use or disclosure of any proprietary information
or trade secrets of the Company or any other party that the Executive owes an obligation of nondisclosure as a result of the Executive’s relationship with the Company; and 

(iv) the Executive’s willful and deliberate breach of the obligations under this Agreement that causes material injury to
the business of the Company. 
 4.5.4 Change in Control. For purposes of this Agreement, “Change in
Control” means: (i) a sale of all or substantially all of the assets of the Company; (ii) a merger or consolidation in which the Company is not the surviving entity and in which the holders of the Company’s outstanding
voting stock immediately prior to such transaction own, immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the entity surviving such transaction or, where the surviving entity is a
wholly-owned subsidiary of another entity, the surviving entity’s parent; (iii) a reverse merger in which the Company is the surviving entity but the shares of Common Stock outstanding immediately preceding the merger are converted by
virtue of the merger into other property, whether in the form of securities of the surviving entity’s parent, cash or otherwise, and in which the holders of the Company’s outstanding voting stock immediately prior to such transaction own,
immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the Company or, where the Company is a wholly-owned subsidiary of another entity, the Company’s parent; or (iv) an
acquisition by any person, entity or group (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or subsidiary of the Company or other entity controlled by the Company) of the beneficial ownership of
securities of the Company representing at least seventy-five percent (75%) of the combined voting power entitled to vote in the election of Directors; provided, however, that nothing in this paragraph shall apply to a sale of assets, merger or
other transaction effected exclusively for the purpose of changing the domicile of the Company. 

 4.6 Application of Internal Revenue Code Section 409A. Notwithstanding anything
to the contrary set forth herein, any payments and benefits provided under this Agreement (the “Severance Benefits”) that constitute “deferred compensation” within the meaning of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”) shall not commence in connection with
the Executive’s termination of employment unless and until the Executive has also incurred a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h)) (“Separation From
Service”), unless the Company reasonably determines that such amounts may be provided to the Executive without causing the Executive to incur the additional 20% tax under Section 409A. 

It is intended that each installment of the Severance Benefits payments provided for in this Agreement is a separate “payment”
for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i). For the avoidance of doubt, it is intended that payments of the Severance Benefits set forth in this Agreement satisfy, to the greatest extent possible, the exemptions from the
application of Section 409A provided under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, if the Company (or, if applicable, the successor entity thereto) determines that the Severance Benefits
constitute “deferred compensation” under Section 409A and the Executive is, on the termination of service, a “specified employee” of the Company or any successor entity thereto, as such term is defined in
Section 409A(a)(2)(B)(i) of the Code, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the Severance Benefit payments shall be delayed until the earlier
to occur of: (i) the date that is six months and one day after the Executive’s Separation From Service, or (ii) the date of the Executive’s death (such applicable date, the “Specified Employee Initial Payment
Date”), the Company (or the successor entity thereto, as applicable) shall (A) pay to the Executive a lump sum amount equal to the sum of the Severance Benefit payments that the Executive would otherwise have received through the
Specified Employee Initial Payment Date if the commencement of the payment of the Severance Benefits had not been so delayed pursuant to this Section and (B) commence paying the balance of the Severance Benefits in accordance with the
applicable payment schedules set forth in this Agreement. 
 Notwithstanding anything to the contrary set forth herein, the
Executive shall receive the Severance Benefits described above, if and only if the Executive duly executes and returns to the Company within the applicable time period set forth therein, but in no event more than forty-five days following Separation
From Service, the Company’s standard form of release of claims in favor of the Company (attached to this Agreement as Exhibit A) and permits the release of claims contained therein to become effective in accordance with its terms.
Notwithstanding any other payment schedule set forth in this Agreement, none of the Severance Benefits will be paid or otherwise delivered prior to the effective date of the Release. Except to the extent that payments may be delayed until the
Specified Employee Initial Payment Date pursuant to the preceding paragraph, on the first regular payroll pay day following the effective date of the Release, the Company will pay the Executive the Severance Benefits the Executive would otherwise
have received under the Agreement on or prior to such date but for the delay in payment related to the effectiveness of the Release, with the balance of the Severance Benefits being paid as originally scheduled. 

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

In the event it is subsequently determined by the Internal Revenue Service that some portion of the Reduced Amount as determined pursuant
to clause (x) in the preceding paragraph is subject to the Excise Tax, the Executive agrees to promptly return to the Company a sufficient amount of the Payment so that no portion of the Reduced Amount is subject to the Excise Tax. For the
avoidance of doubt, if the Reduced Amount is determined pursuant to clause (y) in the preceding paragraph, the Executive will have no obligation to return any portion of the Payment pursuant to the preceding sentence. 

Unless the Executive and the Company agree on an alternative accounting firm, the accounting firm engaged by the Company for general tax
compliance purposes as of the day prior to the effective date of the Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group
effecting the Change in Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required
to be made hereunder. 
 The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the
determinations hereunder to provide its calculations, together with detailed supporting documentation, to the Executive and the Company within fifteen (15) calendar days after the date on which the Executive’s right to a Payment is
triggered (if requested at that time by you or the Company) or such other time as requested by the Executive or the Company. 

4.8 Indemnification Agreement. The Company and the Executive have previously entered into an indemnification agreement
which shall continue to govern the terms of the Executive’s employment following the Effective Date, and a copy of which is attached hereto as Exhibit B. 

 4.9 Confidential Information and Invention Assignment Agreement. The Executive has
previously executed the Company’s Confidential Information and Invention Assignment Agreement the terms of which shall continue to govern the terms of the Executive’s employment following the Effective Date, and a copy of which is attached
as Exhibit C. 
 5. Assignment and Binding Effect. 
 This Agreement shall be binding upon the Executive and the Company and inure to the benefit of the Executive and the Executive’s heirs, executors, personal representatives, assigns, administrators
and legal representatives. Because of the unique and personal nature of the Executive’s duties under this Agreement, neither this Agreement nor obligations under this Agreement shall be assignable by the Executive. This Agreement shall be
binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives, provided that the Agreement may only be assigned to an acquirer of all or substantially all of the Company’s assets. Any such successor
of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at any time, whether by
purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company. 
 6.
Notice. 
 For the purposes of this Agreement, notices, demands, and all other forms of communication provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when delivered or (unless otherwise specified) mailed by registered mail, return receipt requested, postage prepaid, or by confirmed facsimile, addressed as set forth below,
or to such other address as any party may have furnished to the other in writing in accordance herewith, except that notices of address shall be effective only upon receipt, as follows: 

If to the Company: 
 Horizon Pharma, Inc. 
 520 Lake Cook Road, Suite 520 

Deerfield, IL 60015 
 Attention: Timothy P. Walbert, Chairman, President & CEO 
 Fax:
224-383-3001 
 If to the Executive: 
 Todd N. Smith 
 31445 Reigate Lane 

Green Oaks, IL 60044 

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

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

This Agreement, including Exhibit A, Exhibit B, Exhibit C and the Plan and applicable stock option agreements, contains the complete,
final and exclusive agreement of the Parties relating to the terms and conditions of the Executive’s employment and the termination of the Executive’s employment, and supersedes all prior and contemporaneous oral and written employment
agreements or arrangements between the Parties. 
 9. Amendment. 
 This Agreement cannot be amended or modified except by a written agreement signed by the Executive and the Company. 
 10. Waiver. 
 No term, covenant or condition of this Agreement or any breach
thereof shall be deemed waived, except with the written consent of the Party against whom the wavier is claimed, and any waiver or any such term, covenant, condition or breach shall not be deemed to be a waiver of any preceding or succeeding breach
of the same or any other term, covenant, condition or breach. 
 11. Severability. 

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

 12. Interpretation; Construction. 

The headings set forth in this Agreement are for convenience of reference only and shall not be used in interpreting this Agreement. This
Agreement has been drafted and negotiated by legal counsel representing the Company and the Executive. The Parties acknowledge that each Party and its counsel has reviewed and revised, or had an opportunity to review and revise, this Agreement, and
any rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 
 13. Execution by Facsimile Signatures and in Counterparts. 
 The parties
agree that facsimile signatures shall have the same force and effect as original signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the
same instrument. 

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

HORIZON PHARMA, INC. 
 HORIZON PHARMA
USA, INC. 
  

			
	By:	 	 /s/ Timothy P. Walbert

 Title: Chairman, President and CEO 
 Print Name: Timothy P. Walbert 
 Date: 6/1/12 

EXECUTIVE: 
 TODD N. SMITH

  

	
	 /s/ Todd N. Smith

 Todd N. Smith, individually 
 Date: 6/1/12 

 EXHIBIT A 

RELEASE AND WAIVER OF CLAIMS 
 In consideration of the payments and other benefits set forth in the Executive Employment Agreement effective June 1, 2012, (the “Employment Agreement”), to which this form is
attached, I, Todd N. Smith, hereby furnish Horizon Pharma, Inc. and Horizon Pharma USA, Inc. (together the “Company”), with the following release and waiver (“Release and Waiver”). 

In exchange for the consideration provided to me by the Employment Agreement that I am not otherwise entitled to receive, I hereby
generally and completely release the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, Affiliates, and assigns from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring relating to my employment or the termination thereof prior to my signing this Release and Waiver. This
general release includes, but is not limited to: (1) all claims arising out of or in any way related to my employment with the Company or the termination of that employment; (2) all claims related to my compensation or benefits from the
Company, including, but not limited to, salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including, but not limited to, claims for fraud, defamation, emotional distress, and discharge in violation of public
policy; and (5) all federal, state, and local statutory claims, including, but not limited to, claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as
amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), and the California Fair Employment and Housing Act (as amended). Notwithstanding
the foregoing, this Release and Waiver, shall not release or waive my rights: to indemnification under the articles and bylaws of the Company or applicable law, including without limitations, California Labor Code Sections 2800 and 2802; to payments
under Sections                      of the Employment Agreement; under any provision of the Employment Agreement that survives the termination of
that agreement; under the California Workers’ Compensation Act; under any option, restricted share or other agreement concerning any equity interest in the Company; as a shareholder of the Company or any other right that is not waivable under
applicable law. 
 I also acknowledge that I have read and understand Section 1542 of the California Civil Code which reads
as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her
settlement with the debtor.” I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to any claims I may have against the Company. 

 I acknowledge that, among other rights, I am waiving and releasing any rights I may have
under ADEA, that this Release and Waiver is knowing and voluntary, and that the consideration given for this Release and Waiver is in addition to anything of value to which I was already entitled as an executive of the Company. If I am 40 years of
age or older upon execution of this Release and Waiver, I further acknowledge that I have been advised, as required by the Older Workers Benefit Protection Act, that: (a) the release and waiver granted herein does not relate to claims under the
ADEA which may arise after this Release and Waiver is executed; (b) I should consult with an attorney prior to executing this Release and Waiver; and (c) I have twenty-one (21) days from the date of termination of my employment with
the Company in which to consider this Release and Waiver (although I may choose voluntarily to execute this Release and Waiver earlier); (d) I have seven (7) days following the execution of this Release and Waiver to revoke my consent to
this Release and Waiver; and (e) this Release and Waiver shall not be effective until the seven (7) day revocation period has expired unexercised. If I am less than 40 years of age upon execution of this Release and Waiver, I acknowledge
that I have the right to consult with an attorney prior to executing this Release and Waiver (although I may choose voluntarily not to do so); and (c) I have five (5) days from the date of termination of my employment with the Company in
which to consider this Release and Waiver (although I may choose voluntarily to execute this Release and Waiver earlier). 
 I
acknowledge my continuing obligations under my Confidential Information and Inventions Agreement dated September 28, 2010. Pursuant to the Confidential Information and Inventions Agreement I understand that among other things, I must not use or
disclose any confidential or proprietary information of the Company and I must immediately return all Company property and documents (including all embodiments of proprietary information) and all copies thereof in my possession or control. I
understand and agree that my right to the payments and other benefits I am receiving in exchange for my agreement to the terms of this Release and Waiver is contingent upon my continued compliance with my Confidential Information and Inventions
Agreement. 
 This Release and Waiver, including my Confidential Information and Inventions Agreement dated September 28,
2010, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated
herein. This Release and Waiver may only be modified by a writing signed by both me and a duly authorized officer of the Company. 
 Date:
6/8/2012 
  

			
	By:	 	 /s/ Todd N. Smith

		 	Todd N. Smith

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