Document:

sbbp_Ex10_21

		
			Exhibit 10.21
		

		
			STRONGBRIDGE BIOPHARMA PLC
		

		
			2017 INDUCEMENT PLAN
		

		
			The purpose of the Strongbridge Biopharma plc 2017 Inducement Plan is to assist Strongbridge Biopharma plc and its affiliates and subsidiaries in attracting valued employees by offering them a greater stake in the Company’s success and a closer identity with it, and to encourage ownership of the Company’s stock by such employees.
		

			
	
			
				 1.
			Definitions

		
			As used herein, the following definitions shall apply:
		

			
	
			
				 (a)
			“Award” means a grant of Options, Stock Awards or Restricted Stock Units under the Plan. 

			
	
			
				 (b)
			“Award Agreement” means the written agreement, instrument or document evidencing an Award. 

			
	
			
				 (c)
			“Board” means the Board of Directors of the Company.

			
	
			
				 (d)
			“Change of Control” means, after the Effective Date, any of the following events:

			
	
			
				 (i)
			Any “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act) (other than persons who are shareholders on the Effective Date) becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the voting power of the then outstanding securities of the Company; provided that a Change of Control shall not be deemed to occur as a result of a change of ownership resulting from the death of a shareholder, and a Change of Control shall not be deemed to occur as a result of a transaction in which the Company becomes a subsidiary of another corporation and in which the shareholders of the Company, immediately prior to the transaction, will beneficially own, immediately after the transaction, shares entitling such shareholders to more than 50% of all votes to which all shareholders of the parent corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote); or 

			
	
			
				 (ii)
			The consummation of (i) a merger or consolidation of the Company with another corporation where the shareholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such shareholders to more than 50% of all votes to which all shareholders of the surviving corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote); (ii) a sale or other disposition of all or substantially all of the assets of the Company; or (iii) a liquidation or dissolution of the Company.

			
	
			
				 (iii)
			Notwithstanding the foregoing, the following acquisitions shall not constitute a Change of Control: (A) an acquisition by the Company or entity controlled by the 

		 

 

	Company, or (B) an acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company.

			
	
			
				 (e)
			  “Code” means the Internal Revenue Code of 1986, as amended, and the Treasury regulations promulgated thereunder. A reference to any provision of the Code or the Treasury regulations promulgated thereunder shall include reference to any successor provision of the Code or the Treasury regulations.

			
	
			
				 (f)
			“Committee” means the committee designated by the Board to administer the Plan under Section 2. The Committee shall consist of at least two members and each member shall be a Non-Employee Director and an “independent director” within the meaning of Rule 5605(a)(3) of the Nasdaq Stock Market Equity Rules.

			
	
			
				 (g)
			“Company” means Strongbridge BioPharma plc.

			
	
			
				 (h)
			“Company Stock” means the ordinary shares of the Company, par value US$0.01 per share each.

			
	
			
				 (i)
			“Effective Date” has the meaning set forth in Section 17. 

			
	
			
				 (j)
			“Eligible Individual” means any individual who was not previously an employee or a Non-Employee Director of the Company or any of its subsidiaries (or who had a bona fide period of non-employment with the Company and its subsidiaries) who is hired by the Company or a subsidiary.

			
	
			
				 (k)
			“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder. A reference to any provision of the Exchange Act or rule promulgated under the Exchange Act shall include reference to any successor provision or rule.

			
	
			
				 (l)
			“Fair Market Value” means: (x) if the principal trading market for the Company Stock is a national securities exchange or the Nasdaq National Market, the last reported sale price thereof on the relevant date or (if there were no trades on that date) the latest preceding date upon which a sale was reported, or (y) if the Company Stock is not principally traded on such exchange or market, the mean between the last reported “bid” and “asked” prices of Company Stock on the relevant date, as reported on Nasdaq or, if not so reported, as reported by the National Daily Quotation Bureau, Inc. or as reported in a customary financial reporting service, as applicable and as the Committee determines. 

			
	
			
				 (m)
			“Grantee” means an Eligible Individual who receives an Award under the Plan.  

			
	
			
				 (n)
			“Non-Employee Director” means a member of the Board who meets the definition of a “non-employee director” under Rule 16b-3(b)(4) promulgated by the Exchange Act.

			
	
			
				 (o)
			“Option” means a right to purchase a specified number of Company Stock at a specified price awarded by the Committee as described in Section 6 of the Plan.

			
	
			
				 (p)
			  “Plan” means the Strongbridge BioPharma plc 2017 Inducement Plan.

		
			

		 

		

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				 (q)
			“Restricted Stock Unit” means the right to a payment in Company Stock or in cash, or in a combination thereof, awarded by the Committee under Section 7 of the Plan.

			
	
			
				 (r)
			“Stock Award” means the right to payment in Company Stock awarded by the Committee under Section 7 of the Plan.

			
	
			
				 2.
			Administration

			
	
			
				 (a)
			Administration and Authority.  The Plan shall be administered by the Compensation Committee. The Committee shall have the sole authority to (i) determine the Eligible Individuals to whom Awards shall be made under the Plan; (ii) determine the type, size, and terms of the Award to be made to each such Eligible Individual; (iii) determine the time when the Awards will be made and the duration of any applicable exercise or restriction period, including the criteria for exercisability and the acceleration of exercisability; (iv) amend the terms of any previously issued Award; (v) accelerate the vesting, exercisability, or lapse of any forfeiture condition with respect to an Award; and (vi) deal with any other matters arising under the Plan.

			
	
			
				 (b)
			Committee Determinations.  The Committee shall have full power and authority to administer, construe and interpret the Plan, correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award or Award Agreement, make factual determinations and adopt or amend such rules, regulations, agreements, and instruments for implementing the Plan and for the conduct of its business as it deems necessary or advisable, in its sole discretion.  The Committee’s interpretations of the Plan and all determinations made by the Committee pursuant to the powers vested in it hereunder shall be conclusive and binding on all persons having any interest in the Plan or in any Awards granted hereunder.  All powers of the Committee shall be executed in its sole discretion, in the best interest of the Company, not as a fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to similarly situated individuals.

			
	
			
				 (c)
			Limitation of Liability. To the maximum extent permitted by law, no member of the Committee shall be liable for any action taken or decision made in good faith relating to the Plan or any Award thereunder. The Committee may employ counsel, consultants, accountants, appraisers, brokers or other persons. The Committee, the Company, and the officers and directors of the Company shall be entitled to rely upon the advice, opinions or valuations of any such persons.

			
	
			
				 3.
			Awards

		
			Awards under the Plan may consist of grants of Options as described in Section 6, as Stock Awards as described in Section 7, and Restricted Stock Units as described in Section 7.  All Awards shall be subject to the terms and conditions set forth herein and to such other terms and conditions consistent with the Plan as the Committee deems appropriate and as are specified in the Award Agreement.  The Committee shall approve the form and provisions of each Award Agreement.  Awards under a particular Section of the Plan need not be uniform as among the Grantees.  
		

		
			

		 

		

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				 4.
			Shares Subject to the Plan

			
	
			
				 (a)
			Shares Authorized.  Subject to adjustment as described below, the Company Stock available for Awards under the Plan is 1,000,000 (the “Share Pool”).  The shares may be authorized but unissued shares of Company Stock or reacquired shares of Company Stock, including shares purchased by the Company on the open market for purposes of the Plan.

			
	
			
				 (b)
			Adjustments to Share Pool. The Share Pool shall be reduced, on the date of grant, by one share for each Award granted under the Plan; provided that Awards that are valued by reference to shares of Company Stock but are required to be paid in cash pursuant to their terms shall not reduce the Share Pool. If and to the extent Options terminate, expire, or are canceled, forfeited, exchanged, or surrendered without having been exercised, or if any Stock Awards or Restricted Stock Units (including restricted stock received upon the exercise of Options) are forfeited, the shares of Company Stock subject to such Awards shall again be available for Awards under the Share Pool. Notwithstanding the foregoing, the following shares of Company Stock shall not become available for issuance under the Plan: (A) shares tendered by Grantees, or withheld by the Company, as full or partial payment to the Company upon the exercise of stock options granted under the Plan; and (B) shares withheld by, or otherwise remitted to, the Company to satisfy a Grantee’s tax withholding obligations upon the lapse of restrictions on Stock Awards or the exercise of Options granted under the Plan.  

			
	
			
				 (c)
			Adjustments.  If there is any change in the number or kind of shares of Company Stock outstanding (i) by reason of a stock dividend, spinoff, recapitalization, stock split, or combination or exchange of shares; (ii) by reason of a merger, reorganization, or consolidation; (iii) by reason of a reclassification or change in par value; or (iv) by reason of any other extraordinary or unusual event affecting the outstanding Company Stock as a class without the Company’s receipt of consideration, or if the value of outstanding shares of Company Stock is substantially reduced as a result of a spinoff or the Company’s payment of an extraordinary dividend or distribution, the maximum number of shares of Company Stock available for Awards, the maximum number of shares of Company Stock that any individual participating in the Plan may be granted in any year, the number of shares covered by outstanding Awards, the kind of shares issued under the Plan, and the price per share of such Awards shall be adjusted by the Committee to reflect any increase or decrease in the number of, or change in the kind or value of, issued shares of Company Stock to preclude the enlargement or dilution of rights and benefits under such Awards; provided, however, that any fractional shares resulting from such adjustment shall be eliminated.  Any adjustments determined by the Committee shall be final, binding, and conclusive.

			
	
			
				 5.
			Eligibility for Participation

		
			Any Eligible Individual shall be eligible to participate in the Plan. The Committee shall select the Eligible Individuals to receive Awards and shall determine the number of shares of Company Stock subject to a particular Award in such manner as the Committee determines. 
		

		
			

		 

		

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				 6.
			Granting of Options

		
			The Company may grant Options to purchase shares of Company Stock to Eligible Individuals.  The following provisions are applicable to Options. 
		

			
	
			
				 (a)
			Number of Shares.  The Committee shall determine the number of shares of Company Stock that shall be subject to each Award of Options. 

			
	
			
				 (b)
			Price. The purchase price (the “Exercise Price”) of Company Stock subject to an Option shall be determined by the Board and shall be equal to or greater than the Fair Market Value of a share of Company Stock on the date the Option is granted.

			
	
			
				 (c)
			Option Term.  The Committee shall determine the term of each Option.  The term of any Option shall not exceed ten years from the date of grant. 

			
	
			
				 (d)
			Exercisability of Options.  Options shall become exercisable in accordance with such terms and conditions, consistent with the Plan, as may be determined by the Committee and specified in the Award Agreement.  The Committee may accelerate the exercisability of any or all outstanding Options at any time for any reason.  The Committee may provide in an Award Agreement that the Grantee may elect to exercise part or all of an Option before it otherwise has become exercisable.  Any shares so purchased shall be restricted shares and shall be subject to a repurchase right in favor of the Company during a specified restriction period, with the repurchase price equal to the lesser of (A) the Exercise Price, or (B) the Fair Market Value of such shares at the time of repurchase, and (C) any other restrictions determined by the Company.

			
	
			
				 (e)
			Termination of Employment, Disability, or Death.

			
	
			
				 (i)
			Except as provided below, an Option may only be exercised while the Grantee is employed by, or providing service to, the Employer (as defined below) as an Eligible Individual.  In the event that a Grantee ceases to be employed by, or provide service to, the Employer for any reason other than Disability, death, or termination for Cause, any Option which is otherwise exercisable by the Grantee shall terminate unless exercised within 90 days after the date on which the Grantee ceases to be employed by, or provide service to, the Employer (or within such other period of time as may be specified by the Committee), but in any event no later than the date of expiration of the Option term.  Except as otherwise provided by the Committee or in the Award Agreement, any of the Grantee’s Options that are not otherwise exercisable as of the date on which the Grantee ceases to be employed by, or provide service to, the Employer shall terminate as of such date.  

			
	
			
				 (ii)
			In the event the Grantee ceases to be employed by, or provide service to, the Employer on account of a termination for Cause by the Employer, any Option held by the Grantee shall terminate as of the date the Grantee ceases to be employed by, or provide service to, the Employer.  In addition, notwithstanding any other provisions of this Section 6, if the Committee determines that the Grantee has engaged in conduct that constitutes Cause at any time while the Grantee is employed by, or providing service to, the Employer or after the Grantee’s termination of employment or service, any Option held by the Grantee shall immediately terminate, and the Grantee shall automatically forfeit all shares underlying any exercised portion of an Option for which the Company has not yet delivered the share certificates, upon refund by 

		 

		

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	the Company of the Exercise Price paid by the Grantee for such shares.  Upon any exercise of an Option, the Company may withhold delivery of share certificates pending resolution of an inquiry that could lead to a finding resulting in a forfeiture.

			
	
			
				 (iii)
			In the event the Grantee ceases to be employed by, or provide service to, the Employer because the Grantee is Disabled (as defined below), any Option which is otherwise exercisable by the Grantee shall terminate unless exercised within one year after the date on which the Grantee ceases to be employed by, or provide service to, the Employer (or within such other period of time as may be specified by the Committee), but in any event no later than the date of expiration of the Option term.  Except as otherwise provided by the Committee, any of the Grantee’s Options which are not otherwise exercisable as of the date on which the Grantee ceases to be employed by, or provide service to, the Employer shall terminate as of such date.

			
	
			
				 (iv)
			If the Grantee dies while employed by, or providing service to, the Employer or within 90 days after the date on which the Grantee ceases to be employed or provide service on account of a termination specified in Section 6(e)(i) above (or within such other period of time as may be specified by the Committee), any Option that is otherwise exercisable by the Grantee shall terminate unless exercised within one year after the date on which the Grantee ceases to be employed by, or provide service to, the Employer (or within such other period of time as may be specified by the Committee), but in any event no later than the date of expiration of the Option term.  Except as otherwise provided by the Committee, any of the Grantee’s Options that are not otherwise exercisable as of the date on which the Grantee ceases to be employed by, or provide service to, the Employer shall terminate as of such date.

			
	
			
				 (v)
			For purposes of this Plan:

			
	
			
				 (A)
			The term “Employer” shall mean the Company and its parent and subsidiary corporations or other entities, as determined by the Committee.

			
	
			
				 (B)
			“Employed by, or provide service to, the Employer” shall mean employment or service as an Eligible Individual (so that, for purposes of exercising Options and satisfying conditions with respect to Stock Awards or Restricted Stock Units, a Grantee shall not be considered to have terminated employment or service until the Grantee ceases to be an Eligible Individual, unless the Committee determines otherwise.

			
	
			
				 (C)
			“Disability” shall mean a Grantee’s becoming disabled within the meaning of section 22(e)(3) of the Code, within the meaning of the Employer’s long-term disability plan applicable to the Grantee, or as otherwise determined by the Committee.

			
	
			
				 (D)
			“Cause” shall mean, except to the extent specified otherwise by the Committee or as defined in any other agreement between the Grantee and the Company, a finding by the Committee that the Grantee has  (i) been convicted of a felony or crime involving moral turpitude; (ii) disclosed trade secrets or confidential information of the Employer to persons not entitled to receive such information; (iii) breached any written noncompetition or nonsolicitation agreement between the Grantee and the Employer; or 

		 

		

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	(iv) engaged in willful and continued negligence in the performance of the duties assigned to the Grantee by the Employer, after the Grantee has received notice of and failed to cure such negligence.

			
	
			
				 (f)
			Exercise of Options.  A Grantee may exercise an Option that has become vested and exercisable, in whole or in part, by delivering a notice of exercise to the Company.  The Grantee shall pay the Exercise Price for an Option by the Committee (i) in cash; (ii) by delivering shares of Company Stock owned by the Grantee (including Company Stock acquired in connection with the exercise of an Option, subject to such restrictions as the Committee deems appropriate) and having a Fair Market Value on the date of exercise equal to the Exercise Price or by attestation (on a form prescribed by the Committee) to ownership of shares of Company Stock having a Fair Market Value on the date of exercise equal to the Exercise Price; (iii) payment through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board; or (iv) by such other method as the Committee may approve.  In addition, the Grantee may elect to settle the Option on a “net basis” by taking delivery of the number of Company Stock equal to Fair Market Value of the shares subject to any Option less the exercise price, any tax (or other governmental obligation) or other administration fees due.  The Grantee shall pay the Exercise Price and the amount of any withholding tax due (pursuant to Section 8) as specified by the Committee.

			
	
			
				 7.
			Stock Awards and Restricted Stock Units

		
			The Company may issue or transfer shares of Company Stock to an Eligible Individual under a Stock Award or Restricted Stock Unit, upon such terms as the Committee deems appropriate.  The following provisions are applicable to Stock Awards and Restricted Stock Units:
		

			
	
			
				 (a)
			General Requirements.  Shares of Company Stock issued or transferred pursuant to Stock Awards may be issued or transferred for consideration or for no consideration, and subject to restrictions or no restrictions, as determined by the Committee.  The Committee shall determine the number of shares of Company Stock subject to a Stock Award and the number of Restricted Stock Units to be granted to a Grantee, the duration of the period during which, and the conditions, if any, under which, the Stock Award and Restricted Stock Units may vest or may be forfeited to the Company and the other terms and conditions of such Awards.  The Committee may require different periods of service wiith respect to different Grantees holding different Stock Awards or Restricted Stock Units or to separate, designated portions of shares constituting Stock Awards.

			
	
			
				 (b)
			Transfer Restrictions and Legend on Stock Certificate. Stock Awards and Restricted Stock Units may not be sold, assigned, transferred, pledged or otherwise encumbered except as provided in the Plan or as may be provided in the applicable Award Agreement; provided, however, that the Committee may determine that Stock Awards and Restricted Stock Units may be transferred by the Grantee. Each certificate for Stock Awards shall contain a legend giving appropriate notice of the restrictions in the Award.  The Grantee shall be entitled to have the legend removed from the stock certificate covering the shares subject to restrictions when all restrictions on such shares have lapsed.  The Committee may determine that the Company shall not issue certificates for Stock Awards until all restrictions on such shares have lapsed, or that the Company shall retain possession of certificates for Stock Awards until all restrictions on such shares have lapsed. Upon the lapse of the restrictions applicable to a Stock Award, the Company 

		 

		

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	or other custodian, as applicable, shall deliver such certificates to the Grantee or the Grantee’s legal representative.

			
	
			
				 (c)
			Payment/Lapse of Restrictions. Each Restricted Stock Unit shall be granted with respect to one share of Company Stock or shall have a value equal to the Fair Market Value of one share of Company Stock. Restricted Stock Units shall be paid in cash, shares of Company Stock, other securities, other Awards or other property, as determined in the sole discretion of the Committee, upon the lapse of restrictions applicable thereto, or otherwise in accordance with the applicable Award Agreement. The amount payable as a result of the vesting of an Restricted Stock Unit shall be distributed as soon as practicable following the vesting date and in no event later than the fifteenth date of the third calendar month of the year following the vesting date of the Restricted Stock Unit (or as otherwise permitted under Section 409A of the Code); provided, however, that a Grantee may, if and to the extent permitted by the Committee, elect to defer payment of Restricted Stock Units in a manner permitted by Section 409A of the Code.

			
	
			
				 (d)
			Termination of Employment or Service. Except as otherwise set forth in the Award Agreement, if the Grantee ceases to be employed by, or provide service to, the Employer (as defined in Section 6(e)), any Stock Award or Restricted Stock Units held by the Grantee that are subject to the transfer restrictions set forth in Section 7(b) above at such time shall be forfeited. The Committee may, however, provide for complete or partial exceptions to this requirement as it deems appropriate.

			
	
			
				 (e)
			No Right to Vote and to Receive Dividends.  Prior to the lapse of the transfer restrictions set forth in Section 7(b) above, the Grantee shall not have the right to vote shares subject to Stock Awards or to receive any dividends or other distributions paid on such shares, subject to any restrictions deemed appropriate by the Committee.

			
	
			
				 8.
			Withholding of Taxes

			
	
			
				 (a)
			Required Withholding.  All Awards under the Plan shall be subject to applicable federal (including FICA), state, and local tax (or other governmental obligation) withholding requirements or other administration fees due.  The Employer may require that the Grantee or other person receiving or exercising Awards pay to the Employer the amount of any federal, state, or local taxes (or other governmental obligations) that the Employer is required to withhold or any administration fees due with respect to such Awards, or the Employer may deduct from other wages paid by the Employer the amount of any withholding taxes, governmental obligations or administration fees due with respect to such Awards.

			
	
			
				 (b)
			Election to Withhold Shares.  If the Board so permits, a Grantee may elect to satisfy the Employer’s income tax (or other governmental obligation) withholding requirement and any administration fees due with respect to an Award by having shares withheld up to an amount that does not exceed the Grantee’s minimum applicable withholding rate for federal (including FICA), state, and local tax (and other governmental obligation) liabilities plus any other administration fees due.  The election must be in a form and manner prescribed by the Committee and may be subject to the prior approval of the Committee.

		
			

		 

		

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				 9.
			Transferability of Awards

			
	
			
				 (a)
			Nontransferability of Awards.  Except as provided below, only the Grantee may exercise rights under an Award during the Grantee’s lifetime.  A Grantee may not transfer those rights except by will or by the laws of descent and distribution.  When a Grantee dies, the personal representative or other person entitled to succeed to the rights of the Grantee may exercise such rights.  Any such successor must furnish proof satisfactory to the Company of his or her right to receive the Award under the Grantee’s will or under the applicable laws of descent and distribution.

			
	
			
				 (b)
			Transfer of Stock Options.  Notwithstanding the foregoing, the Committee may provide, in an Award Agreement, that a Grantee may transfer Options to family members, or one or more trusts or other entities for the benefit of or owned by family members, consistent with applicable securities laws, according to such terms as the Committee may determine; provided that the Grantee receives no consideration for the transfer of an Option and the transferred Option shall continue to be subject to the same terms and conditions as were applicable to the Option immediately before the transfer.

			
	
			
				 10.
			Consequences of a Change of Control

			
	
			
				 (a)
			Assumption of Awards.  Upon a Change of Control where the Company is not the surviving corporation (or survives only as a subsidiary of another corporation), unless the Committee determines otherwise, all outstanding Awards shall be assumed by, or replaced with comparable Awards by, the surviving corporation (or a parent or subsidiary of the surviving corporation).

			
	
			
				 (b)
			Termination of Awards. Upon a Change of Control where the Company is not the surviving corporation (or survives only as a subsidiary of another corporation), in the event the surviving corporation (or a parent or subsidiary of the surviving corporation) does not assume or replace the Awards with comparable Awards, (i) the Company shall provide each Grantee with outstanding Awards written notice of such Change of Control; (ii) all outstanding Options shall automatically accelerate and become fully vested and exercisable; (iii) all outstanding Stock Awards shall become vested and deliverable in accordance with Section 7(b); and (iv) all outstanding Restricted Stock Units shall become vested and deliverable in accordance with Section 7(c). 

			
	
			
				 (c)
			Other Alternatives.  Notwithstanding the foregoing, in the event of a Change of Control, the Committee may take one or both of the following actions:  the Committee may (i) require that Grantees surrender their outstanding Options in exchange for a payment by the Company, in cash or Company Stock as determined by the Committee, in an amount equal to the amount by which the then Fair Market Value of the shares of Company Stock subject to the Grantee’s unexercised Options exceeds the Exercise Price of the Options; or (ii) after giving Grantees an opportunity to exercise their outstanding Options, terminate any or all unexercised Options at such time as the Committee deems appropriate.  Such surrender or termination shall take place as of the date of the Change of Control or such other date as the Committee may specify.

		
			

		 

		

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				 11.
			Requirements for Issuance or Transfer of Shares

			
	
			
				 (a)
			Shareholder’s Agreement.  The Committee may require that a Grantee execute a shareholder’s agreement, with such terms as the Committee deems appropriate, with respect to any Company Stock issued or distributed pursuant to the Plan.

			
	
			
				 (b)
			Limitations on Issuance or Transfer of Shares.  No Company Stock shall be issued or transferred in connection with any Award hereunder unless and until all legal requirements applicable to the issuance or transfer of such Company Stock have been complied with to the satisfaction of the Committee.  The Committee shall have the right to condition any Award made to any Grantee hereunder on such Grantee’s undertaking in writing to comply with such restrictions on his or her subsequent disposition of such shares of Company Stock as the Committee shall deem necessary or advisable, and certificates representing such shares may be legended to reflect any such restrictions.  Certificates representing shares of Company Stock issued or transferred under the Plan shall be subject to such stop-transfer orders and other restrictions as may be required by applicable laws, regulations, and interpretations, including any requirement that a legend be placed thereon.

			
	
			
				 (c)
			Lock-Up Period.  If so requested by the Company or any representative of the underwriters (the “Managing Underwriter”) in connection with any underwritten offering of securities of the Company under the Securities Act of 1933, as amended (the “Securities Act”), a Grantee (including any successor or assigns) shall not sell or otherwise transfer any shares or other securities of the Company during the 30-day period preceding and the 180-day period following the effective date of a registration statement of the Company filed under the Securities Act for such underwriting (or such shorter period as may be requested by the Managing Underwriter and agreed to by the Company) (the “Market Standoff Period”).  The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period.

			
	
			
				 12.
			Amendment and Termination of the Plan

			
	
			
				 (a)
			Amendment.  The Board may amend or terminate the Plan at any time; provided, however, that the Board shall not amend the Plan without shareholder approval if such approval is required in order to comply with the Code or other applicable laws or to comply with applicable stock exchange requirements.

			
	
			
				 (b)
			Termination of Plan.  The Plan shall terminate on the day immediately preceding the tenth anniversary of its effective date, unless the Plan is terminated earlier by the Board or is extended by the Board.

			
	
			
				 (c)
			Termination and Amendment of Outstanding Awards.  A termination or amendment of the Plan that occurs after an Award is made shall not materially impair the rights of a Grantee unless the Grantee consents or unless the Board acts under Section 20(b).  The termination of the Plan shall not impair the power and authority of the Committee with respect to an outstanding Award.  Whether or not the Plan has terminated, an outstanding Award may be terminated or amended under Section 20(b) or may be amended by agreement of the Company and the Grantee consistent with the Plan. Notwithstanding the foregoing, any such amendment or 

		 

		

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	termination shall be subject to the approval of the Company’s stockholders if such stockholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Company Stock may then be listed or quoted, in each case.

			
	
			
				 (d)
			Governing Document.  The Plan shall be the controlling document.  No other statements, representations, explanatory materials or examples, oral or written, may amend the Plan in any manner.  The Plan shall be binding upon and enforceable against the Company and its successors and assigns.

			
	
			
				 13.
			Funding of the Plan

		
			The Plan shall be unfunded.  The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any Awards under the Plan.  In no event shall interest be paid or accrued on any Award, including unpaid installments of Awards.
		

			
	
			
				 14.
			Rights of Participants

		
			Nothing in the Plan shall entitle any Eligible Individual or other person to any claim or right to be granted an Award under the Plan.  Neither the Plan nor any action taken hereunder shall be construed as giving any individual any rights to be retained by or in the employ of the Employer or any other employment rights.  
		

			
	
			
				 15.
			No Fractional Shares

		
			No fractional shares of Company Stock shall be issued or delivered pursuant to the Plan or any Award.  The Committee shall determine whether cash, other awards or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.
		

			
	
			
				 16.
			Headings

		
			Section headings are for reference only.  In the event of a conflict between a title and the content of a Section, the content of the Section shall control.
		

			
	
			
				 17.
			Effective Date of the Plan

		
			The Plan shall be effective on February 23, 2017.
		

			
	
			
				 18.
			Miscellaneous

			
	
			
				 (a)
			Awards in Connection with Corporate Transactions and Otherwise.  Nothing contained in the Plan shall be construed to (i) limit the right of the Committee to make Awards under the Plan in connection with the acquisition, by purchase, lease, merger, consolidation, or otherwise, of the business or assets of any corporation, firm or association; or (ii) limit the right of the Company to grant stock options or make other awards outside of the Plan.

		
			

		 

		

			-11-

		

 

		

			
	
			
				 (b)
			Compliance with Law.  The Plan, exercise of Options, restrictions of Stock Awards and obligations of the Company to issue or transfer shares of Company Stock under Awards shall be subject to all applicable laws and to approvals by any governmental or regulatory agency as may be required.  With respect to persons subject to section 16 of the Exchange Act, it is the intent of the Company that the Plan and all transactions under the Plan comply with all applicable provisions of Rule 16b-3 or its successors under the Exchange Act.  In addition, it is the intent of the Company that the Plan and applicable Awards under the Plan comply with the applicable provisions of section 409A of the Code.  To the extent that any legal requirement of section 16 of the Exchange Act or section 409A of the Code as set forth in the Plan ceases to be required under section 16 of the Exchange Act or section 409A of the Code, that Plan provision shall cease to apply.  The Committee may revoke any Award if it is contrary to law or modify an Award to bring it into compliance with any valid and mandatory government regulation.  The Committee may also adopt rules regarding the withholding of taxes on payments to Grantees.  The Committee may, in its sole discretion, agree to limit its authority under this Section.

			
	
			
				 (c)
			Employees Subject to Taxation Outside the United States.  With respect to Grantees who are subject to taxation in countries other than the United States, the Committee may make Awards on such terms and conditions as the Committee deems appropriate to comply with the laws of the applicable countries, and the Committee may create such procedures, addenda, and subplans and make such modifications as may be necessary or advisable to comply with such laws.

			
	
			
				 (d)
			Governing Law.  The validity, construction, interpretation, and effect of the Plan and Award Agreements issued under the Plan shall be governed and construed by and determined in accordance with the laws of the State of Delaware, without giving effect to the conflict of laws provisions thereof.

		 

		

			-12-sbbp_Ex10_9

		
			Exhibit10.9
		

		
			amended and restated EMPLOYMENT AGREEMENT
		

		
			THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is made by and between Strongbridge U.S. Inc. (the “Company”), and Fredric J. Cohen (“Executive”) as of November 23, 2016.
		

		
			W I T N E S S E T H:
		

		
			WHEREAS, Cortendo AB, an affiliate of the Company, and Executive entered into an original employment agreement dated August 5, 2015 (the “Effective Date”), which agreement was subsequently assigned to the Company (such agreement, the “Prior Agreement”);
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

			
	
			
				ARTICLE I
			 

		
			EMPLOYMENT AND DUTIES
		

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

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

			
	
			
				 Section 1.03
			Scope.  Executive will devote substantially all of his business time, attention, skills and efforts to the performance of his duties.  Executive acknowledges that his 

		 

 

	duties and responsibilities require Executive’s full-time business efforts and agrees to not engage in any other business activity or interests which materially interfere or conflict with the performance of Executive’s duties.  Notwithstanding the foregoing, Executive may (a) serve on corporate, civic or charitable boards or committees of entities that do not compete with the Company, with the approval of the CEO, (b) deliver a reasonable number of lectures or fulfill speaking engagements, with the approval of the CEO, or (c) manage personal investments, so long as such activities do not significantly interfere with the performance of Executive’s duties.

			
	
			
				ARTICLE II
			 

		
			COMPENSATION AND BENEFITS
		

			
	
			
				 Section 2.01
			Base Salary.  During the Term, the Company will pay Executive a base salary (the “Base Salary”) at an initial rate of $380,000 per year in accordance with the Company’s standard payroll practices.  The Base Salary will be reviewed at least annually by the Board of Directors of the Company (the “Board”) or a committee thereof and may be adjusted (in which case such adjusted amount shall be the “Base Salary”).  

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

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

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

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

		
			

		 

 

		

			
	
			
				ARTICLE III
			 

		
			TERMINATION
		

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

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

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

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

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

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

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

			
	
			
				 (iv)
			a merger, consolidation or reorganization of the Company with or involving any other entity, other than a merger, consolidation or reorganization that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least a 50% of the combined voting power of the Company (or such surviving entity) outstanding immediately after such merger, consolidation or reorganization owned in 

		 

 

	approximately the same proportion of such ownership by each of the prior shareholders as prior to the transaction.

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

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

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

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

			
	
			
				 (f)
			“Pro-Rata Annual Incentive” shall mean an amount equal to (i) the Annual Incentive that Executive would have been entitled to receive for the calendar year that includes the Termination Date if his employment hereunder had continued (as determined by the Board based upon the actual achievement of the applicable performance goals), multiplied by (ii) a fraction, the 

		 

 

	numerator of which is the number of days he was employed hereunder during such year and the denominator of which is the number of days in such year.

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

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

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

			
	
			
				 Section 3.04
			Termination Without Cause, by Executive With Good Reason, or Due to Non-Renewal of the Term by the Company following a Change in Control of the Company.  If the Company terminates Executive’s employment without Cause, Executive terminates for Good Reason, or Executive’s employment is terminated due to the non-renewal of the Term by the Company pursuant to Section 1.01, in any case, within twenty four (24) months following the occurrence of Change in Control, the Term shall expire on the Termination Date and, in lieu of the benefits set forth in Section 3.02 or 3.03, Executive shall be entitled to: (a) the Accrued Obligations; (b) an amount equal to the sum of (i) eighteen (18) months of the annual Base Salary as in effect immediately prior to the Termination Date and (ii) the Target Annual 

		 

 

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

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

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

			
	
			
				ARTICLE IV
			 

		
			RESTRICTIVE COVENANTS
		

			
	
			
				 Section 4.01
			Confidentiality.  

			
	
			
				 (a)
			Company Information.  Executive agrees at all times during the Term of this Agreement and thereafter, to hold in strictest confidence, and not to use, except in connection with the performance of Executive's duties, and not to disclose to any person or entity without written authorization of the Company, any Confidential Information of the Company.  As used herein, “Confidential Information” means any Company proprietary or confidential information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, customer lists and customers, markets, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, marketing, distribution and sales methods and systems, sales and profit figures, finances and other business information disclosed to Executive by the Company, either directly or indirectly in writing, orally or by drawings or inspection of documents or other tangible property.  However, Confidential Information does not include any of the foregoing items which has become publicly known and made generally available through no wrongful act of Executive.

		
			

		 

 

		

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

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

			
	
			
				 Section 4.02
			Non-Competition.  

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

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

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

		
			

		 

 

		

			
	
			
				ARTICLE V
			 

		
			MISCELLANEOUS
		

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

			
	
			
				 Section 5.02
			Modification of Payments.  

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

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

			
	
			
				 Section 5.03
			Section 409A.  

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

		
			

		 

 

		

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

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

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

			
	
			
				 Section 5.05
			Assignment.  

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

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

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

		 

 

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

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

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

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

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

		
			

		 

 

		

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

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

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

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

		
			[signature page follows]
		

		
			

		 

 

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

		
			 strongbridge u.s. Inc. 
		

		
			By: /s/ Matthew Pauls
Name: Matthew Pauls
Title: President & CEO
		

		
			 
		

		
			 
		

		
			EXECUTIVE
		

		
			 
		

		
			/s/ Fredric J. Cohen
Fredric J. Cohen

		

		
			 
		

		
			
		

		
			

		 

 

		

		
			ATTACHMENT A
		

		
			 
		

		
			GENERAL RELEASE
		

		
			 
		

			
	
			
				 1.
			Fredric J. Cohen (“Executive”), for and in consideration of the commitments of Strongbridge U.S. Inc. (the “Company”) as set forth in Article III of the Amended and Restated Employment Agreement dated as of November 23, 2016 (the “Employment Agreement”), and intending to be legally bound, does hereby REMISE, RELEASE AND FOREVER DISCHARGE the Company and its present and former divisions, subsidiaries, parents, predecessor and successor corporations, officers, directors, and their respective successors, predecessors, assigns, heirs, executors, and administrators (collectively, “Releasees”) from all causes of action, suits, debts, claims and demands whatsoever in law or in equity, which Executive ever had, now has, or hereafter may have, whether known or unknown, or which Executive’s heirs, executors, or administrators may have, by reason of any matter, cause or thing whatsoever, up to the date of Executive’s execution of this General Release, particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to Executive’s employment relationship with the Company and Releasees, the terms and conditions of that relationship, and the termination of that relationship, including, but not limited to, any claims arising under any applicable Company employee benefit plan(s), the Age Discrimination in Employment Act, the Older Workers’ Benefit Protection Act, Title VII of The Civil Rights Act of 1964, the Civil Rights Act of 1991, Sections 1981 through 1988 of Title 42 of the United States Code, the Americans with Disabilities Act, the Employee Retirement Income Security Act of 1974, the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act, Pennsylvania employment laws, and any other federal, state and local employment laws, as amended, and any other claims under any federal, state or local common law, statutory, or regulatory provision, now or hereafter recognized, and any claims for attorneys’ fees and costs.  This General Release is effective without regard to the legal nature of the claims raised and without regard to whether any such claims are based upon tort, equity, implied or express contract or discrimination of any sort.

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

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

		
			

		 

 

		

			
	
			
				 4.
			Subject to the provisions of Paragraph 3 of this General Release, in further consideration of the commitments of the Company as described in the Employment Agreement, Executive agrees that Executive will not file, claim, sue or cause or permit to be filed, any civil action, suit or legal proceeding seeking equitable or monetary relief (including damages, injunctive, declaratory, monetary or other relief) for himself involving any matter released in Paragraph 1.  In the event that suit is filed in breach of this release of claims, it is expressly understood and agreed that this release of claims shall constitute a complete defense to any such suit.  In the event any Releasee is required to institute litigation to enforce the terms of this paragraph, Releasees shall be entitled to recover reasonable costs and attorneys' fees incurred in such enforcement.  Executive further agrees and covenants that should any person, organization, or other entity file, claim, sue, or cause or permit to be filed any civil action, suit or legal proceeding involving any matter occurring at any time in the past, Executive will not seek or accept personal equitable or monetary relief in such civil action, suit or legal proceeding. Nothing in this General Release shall prohibit or restrict Executive from: (i) making any disclosure of information required by law; (ii) providing information to, or testifying or otherwise assisting in any investigation or proceeding brought by any federal regulatory or law enforcement agency or legislative body, any self-regulatory organization, or the Company’s designated legal, compliance or human resources officers; or (iii) filing, testifying, participating in or otherwise assisting in a proceeding relating to an alleged violation of any federal, state or municipal law relating to fraud, or any rule or regulation of the Securities and Exchange Commission or any self-regulatory organization.

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

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

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

			
	
			
				 8.
			Executive certifies and acknowledges as follows:

		
			 
		

			
	
			
				 a.
			

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

		
			

		 

 

		

			
	
			
				 b.
			

			
	
			
			that Executive has signed this Release voluntarily and knowingly in exchange for the consideration described herein and in the Employment Agreement, which Executive acknowledges is adequate and satisfactory to Executive and to which Executive acknowledges that Executive would not otherwise be entitled;

			
	
			
				 c.
			

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

			
	
			
				 d.
			

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

			
	
			
				 e.
			

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

			
	
			
				 f.
			

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

			
	
			
				 g.
			

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

		
			

		 

 

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

		
			 
		

		
			Fredric J. Cohen 
		

		
			 
		

		
			 
		

		
			_______________________________
		

		
			Signature
		

		
			 
		

		
			 
		

		
			Date:_______________________________

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