ALBIREO AB AND Jan Mattsson EMPLOYMENT AGREEMENT

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Exhibit 10.4

ALBIREO AB

AND

Jan Mattsson

EMPLOYMENT AGREEMENT

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APPENDICES:

Appendix 4.2 Bonus

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EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement” is entered into on 14^th February 2008

BETWEEN:

Prior to this Mattsson has been employed with AstraZeneca AB during the period 1^st February 1995 – 13^th February 2008.) The employment is valid for an indefinite term and is subject to the terms and conditions set out in the collective bargaining agreement applicable from time to time between Sveriges Ingenjörer, Sif and Ledarna applicable companies that are affiliated to The Swedish Industrial and Chemical Employers Associations.

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Mattsson will be granted stock options accounting for 1.0% of the fully diluted share capital of the company (this amounts to options over 379,430 Common shares). The options will vest over a four year period consisting of a one year cliff in year 1 followed by monthly vesting over years 2-4. The Stock Option Plan will be established following the completion of the Company’s Series B financing.

For the performance of Mattsson duties, the Company will provide such equipment that the Company decides is necessary for him to carry out his duties from time to time. Such equipment should be used for work purposes only and in accordance with Company policy applicable from time to time.

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Mattsson is currently entitled to twenty-five (25) days paid vacation per each year. Mattsson in entitled to a further five (5) days paid vacation per each year in lieu of overtime compensation. As from Mattsson’s 20^th year of service with the Company (including service with any successor of the Company under this Agreement), Mattsson shall be entitled to an additional two (2) days paid vacation per each year. Vacation pay is calculated in accordance with the applicable collective bargaining agreement and the Company policy applicable from time to time. Mattsson shall schedule his vacation in co-operation with the Company, and the Company will, to the extent reasonably practicable, comply with the requests of Mattsson. At the expiry of the employment the Company shall have the right to deduct form the final salary and accrued vacation pay any vacation that has been taken but not yet earned.

In case of absence due to sickness the provision of the Swedish Sick Pay Act (Sw. lagen om sjuklön (1991:1047)) and the applicable collective bargaining agreement shall apply.

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Mattsson shall not any time during his employment of for a period of three (3) years thereafter (or for such extended period as may be required by the Company for it to fulfil its obligations to third parties) utilise or disclose to any person or firm or company (unless required by the performance of his duties under this Agreement or by law) any information of the Company or any of its associated companies, which is and that the Company treats as confidential.

This Agreement may only be amended by an instrument in writing duly executed by the Parties.

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This Agreement shall be governed by and construed in accordance with the laws of Sweden.

This Agreement has been duly executed in two original copies, of which each of the Parties has taken one copy.

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Appendix 4.2

Bonus Arrangement

Mattsson will be eligible for a discretionary annual bonus from the Company that will be linked to the achievement of annual performance targets identified for him. Annual performance targets will be agreed between Mattsson and his reporting manager at the beginning of each bonus year. The bonus will be calculated as a percentage of Mattsson’s yearly basic salary and will be paid by the Company as a cash bonus and/or as an additional pension payment. Payment of any bonus pursuant to this bonus arrangement shall be made during the month of January the year following the bonus year during which the bonus entitlement ha accrued (the “Payment Date”).

For the year 2008, Mattsson will receive a maximum bonus corresponding to up to 27% of Mattsson’s yearly basic salary if all annual performance targets are met.

The Company and Mattsson shall agree on the allocation between cash and pension payments not less than four weeks prior to the Payment Date. The Company will pay pension premiums in accordance with the ITP 1-pension plan based on all cash bonus payments (the “ITP 1 Pension Payments”). Any bonus amounts agreed between the Company and Mattsson to be paid as an additional pension payment (not being an ITP 1 Pension Payment) shall be paid as a one-time pension premium under a pension insurance specified by Mattsson.

Any bonus payment under this bonus arrangement is conditional upon (i) Mattsson continuing to be employed by the Company on the Payment Date, and that neither the Company or Mattsson has given notice of termination of employment on or prior to the Payment Date, and (ii) that Mattsson’s performance the year during which bonus entitlement ha accrued has been to the satisfaction of the Company.

For the year 2008, the total bonus amount payable under this bonus arrangement shall be pro rated on a daily basis for the period between 1 January 2008 and the date of this Agreement. The total bonus amount payable shall accordingly be reduced by an amount corresponding to up to 27% of Mattsson’s annual basic salary, multiplied by the number of days having passed between 1 January 2008 and the date of this Agreement, and divided by 365.

The Company reserves the right to amend or cancel the bonus plan at its own discretion.

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