Document:

EX-10.11

 EXHIBIT 10.11 

VERRICA PHARMACEUTICALS INC. 

EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”) is made and entered into by and between Matthew Davidson, Ph.D.
(“Executive”), and Verrica Pharmaceuticals Inc. (the “Company”) (together referred to herein as the “Parties”), effective as of December 2, 2015 (the “Effective Date”). 

R E C I T A L S 
 A. The Company
desires to assure itself of the services of Executive by engaging Executive to perform services under the terms hereof. 
 B. Executive
desires to provide services to the Company on the terms herein provided. 
 C. Certain capitalized terms used in this Agreement are defined
in Section 12 below. 
 In consideration of the foregoing, and for other good and valuable consideration, including the respective
covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 

1. Employment. 

(a) General. The Company shall employ Executive as a full-time employee of the Company effective as of the Effective Date in the
position set forth in this Section 1, and upon the other terms and conditions herein provided. 
 (b) Position and Duties.
Executive shall have the title of Chief Executive Officer of the Company, and shall report to the Board of Directors of the Company. Executive shall also serve in such other capacity or capacities as the Company may from time to time prescribe. As a
Company employee, Executive will be expected to comply with Company policies. 
 (c) Location. Executive shall perform services for
the Company at the Company’s offices in San Carlos, California; provided, however, that the Company may from time to time require Executive to travel temporarily to other locations in connection with the Company’s business.

 (d) Exclusivity. During the term of this Agreement, Executive shall devote Executive’s entire working time, attention and
energies to the business of the Company. 

  
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 2. Compensation and Related Matters. 

(a) Base Salary. Executive’s annual base salary (“Base Salary”) as of December 1, 2015 shall be $180,000 per
year, less payroll deductions and all required withholdings, payable in accordance with the Company’s normal payroll practices. In addition, on the first payroll date following the Effective Date, the Company shall pay to Executive in a single
cash lump sum, less payroll deductions and all required withholdings, the amount of $100,000. Executive’s Base Salary shall be increased to $200,000 per year beginning January 1, 2016. In addition, the Board or a committee of the Board
shall review Executive’s Base Salary periodically and may increase Executive’s Base Salary in connection with such reviews. 
 (b)
Bonus. Beginning in 2016, Executive shall also be eligible for an annual bonus (the “Annual Bonus”) based upon the Board’s or a committee of the Board’s evaluation of the achievement of specific individual and/or
Company-wide performance goals determined in consultation with Executive at the beginning of each year. Executive’s Annual Bonus will be targeted at 35% of Base Salary as of the Effective Date. The Annual Bonus, if any, shall be payable, less
authorized deductions and required withholdings, no later than March 15th following the end of the applicable calendar year. 

(c) Vacation; Benefits. Executive shall be entitled to paid time-off and such other benefits in
accordance with Company policy for similarly situated senior management of the Company. 
 (d) Business Expenses. The Company shall
reimburse Executive for all reasonable business expenses incurred in the conduct of Executive’s duties hereunder in accordance with the Company’s expense reimbursement policies. 

3. Termination. 

(a) At-Will Employment. The Company and Executive acknowledge that Executive’s employment
is and shall continue to be “at-will,” as defined under applicable law. This means that it is not for any specified period of time and can be terminated by Executive or by the Company at any time,
with or without advance notice, and for any or no particular reason or cause. It also means that Executive’s job duties, title and responsibility and reporting level, work schedule, compensation and benefits, as well as the Company’s
personnel policies and procedures, may be changed with prospective effect, with or without notice, at any time in the sole discretion of the Company. This “at-will” nature of Executive’s
employment shall remain unchanged during Executive’s tenure as an employee and may not be changed, except in an express writing signed by Executive and a duly authorized member of the Board. If Executive’s employment terminates for any
reason, Executive shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement. 

(b) Deemed Resignation. Upon termination of Executive’s employment for any reason, Executive shall be deemed to have resigned from
all offices and directorships, if any, then held with the Company or any of its affiliates, and, at the Company’s request, Executive shall execute such documents as are necessary or desirable to effectuate such resignations. 

  
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 4. Obligations upon Termination of Employment. 

(a) Executive’s Obligations. 

(i) Confidentiality. Without limiting the At-Will Employment, Confidential Information,
Invention Assignment, And Arbitration Agreement executed by Executive as of August 9, 2013 (the “Confidential Information Agreement”), except (A) as Executive reasonably and in good faith determines to be required in the
faithful performance of Executive’s duties hereunder, (B) as required by applicable law or (C) in accordance with Section 4(a)(iii) below, while Executive is employed by the Company, and thereafter, Executive shall not directly
or indirectly disclose or make available to any person, firm, corporation, association or other entity for any reason or purpose whatsoever, any Confidential Information (as defined below). Upon termination of Executive’s employment with the
Company, all Confidential Information in Executive’s possession that is in written or other tangible form (together with all copies or duplicates thereof, including computer files) shall be returned to the Company and shall not be retained by
Executive or furnished to any third party, in any form except as provided herein; provided, however, that Executive shall not be obligated to treat as confidential, or return to the Company copies of any Confidential Information that
(i) was publicly known at the time of disclosure to Executive, (ii) becomes publicly known or available thereafter other than by any means in violation of this Agreement or any other duty owed to the Company by any person or entity, or
(iii) is lawfully disclosed to Executive by a third party other than in Executive’s capacity as an employee of the Company. For purposes of this Agreement, the term “Confidential Information” shall mean information
disclosed to Executive or known by Executive as a consequence of or through his or her relationship with the Company, about the customers, employees, business methods, public relations methods, organization, procedures or finances, including,
without limitation, information of or relating to customer lists, of the Company and its affiliates. In addition, Executive shall continue to be subject to the Confidential Information Agreement. 

(ii) Non-Solicitation. In addition to Executive’s obligations under the Confidential
Information Agreement, Executive shall not during the Executive’s employment with the Company or for a period of one (1) year following Executive’s termination of employment for any reason, either on Executive’s own account or
jointly with or as a manager, agent, officer, employee, consultant, partner, joint venturer, owner or stockholder or otherwise on behalf of any other person, firm or corporation, directly or indirectly solicit or attempt to solicit away from the
Company any of its officers or employees or offer employment to any person who is an officer or employee of the Company; provided, however, that a general advertisement to which an employee of the Company responds shall in no event be deemed
to result in a breach of this Section 4(a). Executive also agrees not to harass or disparage the Company or its employees, clients, directors or agents or divert or attempt to divert any actual or potential business of the Company. 

  
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 (iii) Response to Legal Process. Executive may respond to a lawful and valid subpoena or
other legal process but shall give the Company the earliest possible notice thereof, and shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought, and shall
assist such counsel in resisting or otherwise responding to such process. Company shall reimburse Executive costs of complying with these activities. 

(iv) Survival of Provisions. The provisions of this Section 4(a) shall survive the termination or expiration of the
Executive’s employment with the Company and shall be fully enforceable thereafter. If it is determined by a court of competent jurisdiction in any state that any restriction in this Section 4(a) is excessive in duration or scope or is
unreasonable or unenforceable under the laws of that state, it is the intention of the parties that such restriction may be modified or amended by the court to render it enforceable to the maximum extent permitted by the law of that state. 

(b) Payments of Accrued Obligations upon Termination of Employment. Upon a termination of Executive’s employment for any reason,
Executive (or Executive’s estate or legal representative, as applicable) shall be entitled to receive, within ten (10) days after the date Executive terminates employment with the Company (or such earlier date as may be required by
applicable law): (i) any portion of Executive’s Base Salary earned through Executive’s termination date not theretofore paid, (ii) any expenses owed to Executive under Section 2(d) above, (iii) any accrued but unused
vacation pay owed to Executive under the Company’s then-current vacation policy pursuant to Section 2(c) above, and (iv) any amount arising from Executive’s participation in, or benefits under, any employee benefit plans,
programs or arrangements under Section 2(c) above, which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs or arrangements. 

(c) Severance Payments upon a Covered Termination. If Executive experiences a Covered Termination, and if Executive delivers to the
Company a general release of all claims against the Company and its affiliates in a form acceptable to the Company (a “Release of Claims”) that becomes effective and irrevocable within sixty (60) days, or such shorter period of
time specified by the Company, following such Covered Termination, then in addition to any accrued obligations payable under Section 4(b) above, the Company shall provide Executive with the following: 

(i) Severance. 

(A) Executive shall be entitled to receive continued payment of his then-existing base salary, less applicable withholdings,
for the Severance Period (as defined below) in accordance with the Company’s normal payroll procedures; provided, however, that the first such payment shall be on the first regularly scheduled payroll date occurring on or after the sixtieth (60th) day following the date of the Covered Termination (such payroll date, the “First Payroll Date”), and any amounts otherwise payable prior to the First Payroll Date shall be paid on
the First Payroll Date without interest thereon. For the purposes hereof, “Severance Period” shall mean the period commencing on Executive’s Covered Termination and ending on the first anniversary of the Covered Termination or,
in the case of a Covered Termination occurring on or after a Change in Control, the first anniversary of the Covered Termination. 

  
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 (ii) Continued Healthcare. The Company shall notify Executive of any right to continue
group health plan coverage sponsored by the Company or an affiliate of the Company immediately prior to Executive’s date of termination pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”). If Executive elects to receive such continued healthcare coverage, the Company shall directly pay, or reimburse Executive for, the premium for Executive and Executive’s covered dependents, less the amount of
Executive’s monthly premium contributions for such coverage prior to termination, until the earlier of (i) the end of the month during which the Severance Period ends and (ii) the date Executive and Executive’s covered
dependents, if any, become eligible for healthcare coverage under another employer’s plan(s) (of which eligibility Executive agrees to give prompt notice to the Company) (in any case, the “COBRA Period”). Notwithstanding the
foregoing, (i) if any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A of the Code under Treasury
Regulation Section 1.409A-1(a)(5), or (ii) the Company is otherwise unable to continue to cover Executive under its group health plans without penalty under applicable law (including without
limitation, Section 2716 of the Public Health Service Act), then, in either case, an amount equal to each remaining Company subsidy shall thereafter be paid to Executive in substantially equal monthly installments over the COBRA Period (or the
remaining portion thereof). After the Company ceases to pay premiums pursuant to this Section 4(c)(ii), Executive may, if eligible, elect to continue healthcare coverage at Executive’s expense in accordance the provisions of COBRA. 

(iii) Equity Awards. Executive’s then outstanding restricted stock or other equity awards covering shares of the Company’s
common stock shall accelerate in full, provided that vesting (or lapsing of repurchase rights) with respect to shares of stock purchased by Executive pursuant to that certain Restricted Stock Purchase Agreement between Executive and the Company
dated as of August 8, 2013, as amended from time to time (the “Restricted Stock Purchase Agreement”), shall be determined in accordance with the Restricted Stock Purchase Agreement. 

(d) No Other Severance. The provisions of this Section 4 shall supersede in their entirety any severance program or other
arrangement provided by the Company. 
 (e) No Requirement to Mitigate; Survival. Executive shall not be required to mitigate the
amount of any payment provided for under this Agreement by seeking other employment or in any other manner. Notwithstanding anything to the contrary in this 

Agreement, the termination of Executive’s employment shall not impair the rights or obligations of any party. 

  
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 (f) Certain Reductions. The Company shall reduce Executive’s severance benefits under
this Agreement, in whole or in part, by any other severance benefits, pay in lieu of notice, or other similar benefits payable to Executive by the Company in connection with Executive’s termination, including but not limited to payments or
benefits pursuant to (i) any applicable legal requirement, including, without limitation, the Worker Adjustment and Retraining Notification Act, or (ii) any Company policy or practice providing for Executive to remain on the payroll
without being in active service for a limited period of time after being given notice of the termination of Executive’s employment. The benefits provided under this Agreement are intended to satisfy, to the greatest extent possible, any and all
statutory obligations that may arise out of Executive’s termination of employment. Such reductions shall be applied on a retroactive basis, with severance benefits previously paid being recharacterized as payments pursuant to the Company’s
statutory obligation. 
 5. Acceleration Upon a Change in Control. Notwithstanding anything
herein to the contrary, in the event of a Change in Control of the Company, Executive’s then outstanding restricted stock or other equity awards covering shares of the Company’s common stock shall accelerate in full immediately prior to
such Change in Control. 
 6. Limitation on Payments. 

(a) Notwithstanding anything in this Agreement to the contrary, if any payment or distribution Executive would receive pursuant to this
Agreement or otherwise (“Payment”) would (a) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (b) but
for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Company shall cause to be determined, before any amounts of the Payment are paid to Executive, which of the
following alternative forms of payment would maximize Executive’s after-tax proceeds: (i) payment in full of the entire amount of the Payment (a “Full Payment”), or (ii) payment
of only a part of the Payment so that Executive receives that largest Payment possible without being subject to the Excise Tax (a “Reduced Payment”), whichever of the foregoing amounts, taking into account the applicable federal,
state and local income taxes and the Excise Tax (all computed at the highest marginal rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction of such state and local taxes), results in Executive’s
receipt, on an after-tax basis, of the greater amount of the Payment, notwithstanding that all or some portion the Payment may be subject to the Excise Tax. 

(b) If a Reduced Payment is made pursuant to this Section 6, (i) the Payment shall be paid only to the extent permitted under the Reduced
Payment alternative, and Executive shall have no rights to any additional payments and/or benefits constituting the Payment, and (ii) reduction in payments and/or benefits will occur in the following order: (1) reduction of cash payments;
(2) cancellation of accelerated vesting of equity awards other than stock options; (3) cancellation of accelerated vesting of stock options; and (4) reduction of other benefits payable to Executive. In the event that acceleration of
compensation from Executive’s equity awards is to be reduced, such acceleration of vesting shall be canceled in the reverse order of the date of grant. 

  
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 (c) The independent registered public accounting firm engaged by the Company for general audit
purposes as of the day prior to the effective date of the Change in Control of the Company shall make all determinations required to be made under this Section 6. If the independent registered public accounting firm so engaged by the Company is
serving as accountant or auditor for the individual, group or entity effecting the Change in Control, the Company shall appoint a nationally recognized independent registered public accounting firm to make the determinations required hereunder. The
Company shall bear all expenses with respect to the determinations by such independent registered public accounting firm required to be made hereunder. 

(d) The independent registered public accounting firm engaged to make the determinations hereunder shall provide its calculations, together
with detailed supporting documentation, to the Company and Executive within 15 calendar days after the date on which Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive) or such other time as
requested by the Company or Executive. If the independent registered public accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish the
Company and Executive with an opinion reasonably acceptable to Executive that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon
the Company and Executive. 
 7. Successors. 

(a) Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation,
liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the
same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or
assets which executes and delivers the assumption agreement described in this Section 7(a) or which becomes bound by the terms of this Agreement by operation of law. 

(b) Executive’s Successors. The terms of 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. 

8. Notices. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to
have been duly given when personally delivered or one day following mailing via Federal Express or similar overnight courier service. In the case of Executive, mailed notices shall be addressed to Executive at Executive’s home address that the
Company has on file for Executive. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of the Board of Directors of the Company. 

  
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 9. Dispute Resolution. To ensure the timely and economical resolution of
disputes that arise in connection with this Agreement, Executive and the Company agree that any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance or interpretation of this Agreement,
Executive’s employment, or the termination of Executive’s employment, shall be resolved to the fullest extent permitted by law by final, binding and confidential arbitration, by a single arbitrator, in San Mateo County, California,
conducted by Judicial Arbitration and Mediation Services, Inc. (“JAMS”) under the applicable JAMS employment rules. By agreeing to this arbitration procedure, both Executive and the Company waive the right to resolve any such
dispute through a trial by jury or judge or administrative proceeding. The arbitrator shall: (i) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by
law; and (ii) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator shall be authorized to award any or all remedies that Executive or the Company
would be entitled to seek in a court of law. The Company shall pay all JAMS’ arbitration fees in excess of the amount of court fees that would be required if the dispute were decided in a court of law. Nothing in this Agreement is intended to
prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Notwithstanding the foregoing, Executive and the Company each have the right to resolve any
issue or dispute over intellectual property rights by Court action instead of arbitration. 
 10. Miscellaneous
Provisions. 
 (a) Withholdings and Offsets. The Company shall be entitled to withhold from any amounts payable under this
Agreement any federal, state, local or foreign withholding or other taxes or charges which the Company is required to withhold. The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of
withholding shall arise. If Executive is indebted to the Company at his or her termination date, the Company reserves the right to offset any severance payments under this Agreement by the amount of such indebtedness. 

(b) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by Executive and by an authorized officer of the Company (other than Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall
be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
 (c) Whole
Agreement. This Agreement and the Confidential Information Agreement represent the entire understanding of the parties hereto with respect to the subject matter hereof and supersede all prior arrangements and understandings regarding same,
including, without limitation, any vesting provisions of Executive’s equity award agreements. 

  
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 (d) Amendment. This Agreement cannot be amended or modified except by a written agreement
signed by Executive and a duly authorized officer of the Company. 
 (e) Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of California. 
 (f) 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 intention of the parties hereto with respect to the invalid or unenforceable term or provision. 

(g) 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 by legal counsel representing the Company, but Executive has been encouraged to consult with, and has consulted with, Executive’s own independent counsel and tax advisors with
respect to the terms of this Agreement. The parties hereto acknowledge that each party hereto 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. 
 (h)
Representations; Warranties. Executive represents and warrants that Executive is not restricted or prohibited, contractually or otherwise, from entering into and performing each of the terms and covenants contained in this Agreement, and that
Executive’s execution and performance of this Agreement will not violate or breach any other agreements between Executive and any other person or entity and that Executive has not engaged in any act or omission that could be reasonably expected
to result in or lead to an event constituting “Cause” for purposes of this Agreement. 
 (i) Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument. 

11. Section 409A. The intent of the parties is that the payments and benefits under this Agreement comply with or be
exempt from Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date,
(“Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. If the Company determines that any provision of this Agreement would cause
Executive to incur any additional tax or interest under Section 409A (with specificity as to the reason therefor), the Company and Executive shall take commercially reasonable efforts to reform such provision to try to comply with or be exempt
from Section 409A through good faith modifications to the minimum extent reasonably appropriate to 

  
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conform with Section 409A, provided that any such modifications shall not increase the cost or liability to the Company. To the extent that any provision hereof is modified in order
to comply with or be exempt from Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to Executive and the Company of the applicable
provision without violating the provisions of Section 409A. 
 (a) Separation from Service. Notwithstanding any provision to the
contrary in this Agreement, no amount deemed deferred compensation subject to Section 409A of the Code shall be payable pursuant to Section 4 unless Executive’s termination of employment constitutes a “separation from
service” with the Company within the meaning of Section 409A (“Separation from Service”) and, except as provided under Section 11(b) of this Agreement, any such amount shall not be paid, or in the case of
installments, commence payment, until the sixtieth (60th) day following Executive’s Separation from Service. Any installment payments that would have been made to Executive during the sixty
(60) day period immediately following Executive’s Separation from Service but for the preceding sentence shall be paid to Executive on the sixtieth (60th) day following Executive’s
Separation from Service and the remaining payments shall be made as provided in this Agreement. 
 (b) Specified Employee.
Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed at the time of his or her separation from service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent
delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of Executive’s
benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the six (6)-month period measured from the date of Executive’s Separation from Service or (ii) the date of Executive’s death. Upon the
first day of the seventh month following the date of the Executive’s separation from service, all payments deferred pursuant to this Section 11(b) shall be paid in a lump sum to Executive, and any remaining payments due under this
Agreement shall be paid as otherwise provided herein. 
 (c) Expense Reimbursements. To the extent that any reimbursements payable
pursuant to this Agreement are subject to the provisions of Section 409A, any such reimbursements payable to Executive pursuant to this Agreement shall be paid to Executive no later than December 31 of the year following the year in which
the expense was incurred, the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year, and Executive’s right to reimbursement under this Agreement will not be subject to
liquidation or exchange for another benefit. 
 (d) Installments. For purposes of Section 409A (including, without limitation,
for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), Executive’s right to receive any installment payments under this Agreement shall be treated as a right to receive a series of
separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment. 

  
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 12. Definition of Terms. The following terms referred to in this Agreement
shall have the following meanings: 
 (a) Cause. “Cause” means the occurrence of any of the following events, as
determined by the Board or a committee designated by the Board, in its sole discretion: (i) Executive’s commission of any felony or any crime involving fraud, dishonesty, or moral turpitude under the laws of the United States or any state
thereof; (ii) Executive’s attempted commission of, or participation in, a fraud or act of material dishonesty against the Company; (iii) Executive’s intentional, material violation of any contract or agreement between Executive
and the Company or of any statutory duty owed to the Company; (iv) Executive’s unauthorized use or disclosure of the Company’s confidential information or trade secrets; or (v) Executive’s gross misconduct. 

(b) Change in Control. “Change in Control” means (i) a sale, lease, exchange or other transfer in one transaction
or a series of related transactions of all or substantially all of the Company’s assets, or (ii) a merger or consolidation of the Company with or into any other corporation or other entity or person or any other transaction or a series of
related transactions, including the sale by the Company of new shares of its capital stock or a transfer of existing shares of capital stock of the Company, the result of which is that a third party that is not an affiliate of the Company or its
stockholders (or a group of third parties not affiliated with the Company or its stockholders) immediately prior to such transaction acquires or holds capital stock of the Company representing a majority of the Company’s outstanding voting
power immediately following such transaction; provided that the following events shall not constitute a “Change in Control”: (A) a transaction (other than a sale of all or substantially all of the Company’s assets) in which the
holders of the voting securities of the Company immediately prior to the merger, consolidation or other transaction hold, directly or indirectly, at least a majority of the voting securities in the successor corporation or its parent immediately
after the merger, consolidation or other transaction; (B) a sale, lease, exchange or other transaction in one transaction or a series of related transactions of all or substantially all of the Company’s assets to an affiliate of the
Company; (C) an initial public offering of any of the Company’s securities; (D) a reincorporation of the Company solely to change its jurisdiction; (E) a transaction undertaken for the primary purpose of creating a holding
company that will be owned in substantially the same proportion by the persons who held the Company’s securities immediately before such transaction; or (F) any transaction or series of transactions principally for bona fide equity
financing purposes in which cash is received by the Company or any successor or indebtedness of the Company is cancelled or converted or a combination thereof. Notwithstanding the foregoing, if a Change in Control would give rise to a payment or
settlement event with respect to any amount that constitutes “nonqualified deferred compensation,” the transaction or event constituting the Change in Control must also constitute a “change in control event” (as defined in
Treasury Regulation §1.409A-3(i)(5)) in order to give rise to the payment or settlement event for such amount, to the extent required by Section 409A of the Code. 

(c) Covered Termination. “Covered Termination” means the termination of Executive’s employment by the Company
other than for Cause or by Executive for Good Reason. 

  
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 (d) Good Reason. “Good Reason” means Executive’s resignation from
all positions he or she then holds with the Company if (i) (A) there is a material diminution in Executive’s duties or responsibilities with the Company; provided, however, that a change in title will not constitute Good
Reason; (B) there is a material reduction of Executive’s base salary; or (C) Executive is required to relocate Executive’s primary work location to a facility or location that would increase Executive’s one-way commute distance and is more than twenty-five (25) miles from Executive’s primary work location as of immediately prior to such change, (ii) Executive provides written notice outlining such
conditions, acts or omissions to the Company within thirty (30) days immediately following such material change or reduction, (iii) such material change or reduction is not remedied by the Company within thirty (30) days following the
Company’s receipt of such written notice and (iv) Executive’s resignation is effective not later than thirty (30) days after the expiration of such thirty (30) day cure period. 

(Signature page follows) 

  
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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company
by its duly authorized officer, as of the day and year set forth below. 
  

			
	VERRICA PHARMACEUTICALS INC.
		
	By:	 	 /s/ Matthew Davidson

	Name:	 	Matthew Davidson, Ph.D.
	Title:	 	CEO
		
	Date:	 	December 2, 2015

 
			
		
		 	EXECUTIVE
		
		 	 /s/ Matthew Davidson

		 	Name: Matthew Davidson, Ph.D.
		
		 	Date:   December 2, 2015

 Signature Page to Employment AgreementEX-10.12

 EXHIBIT 10.12 

SERVICES AGREEMENT 
 THIS
SERVICES AGREEMENT (this “Agreement”) is entered into as of the 2nd day of December, 2015, by and between PBM Capital Group, LLC, a Delaware limited liability company (“PBM”), and Verrica Pharmaceuticals Inc., a
Delaware corporation (the “Company”). 
 R E C I T A L S 

A. The Company is engaged in the business of developing, manufacturing, marketing and selling topical therapies for the treatment of lesional
skin diseases such as Verruca vulgaris (common warts and plantar warts) and Molluscum contagiosum (collectively, the “Business”). 

B. PBM has expertise in providing accounting and other administrative and management services related to businesses that are similar to the
Business. 
 C. The Company has retained PBM to provide certain accounting and other services for the Company under the terms and conditions
stated herein; provided, however, that the Company will control and be fully responsible for its business and facilities. 
 D. The Company
and PBM desire to set forth the terms and conditions on which such services will be provided in the future. 
 NOW, THEREFORE, on the basis
of the facts set forth above, and in consideration of the covenants, mutual promises and conditions set forth below, the parties agree as follows: 

A G R E E M E N T 
 1.
Retention of PBM. The Company hereby engages PBM to provide certain accounting and back office support services to the Company on the terms and conditions set forth herein, and PBM hereby accepts such engagement. 

2. Duties and Responsibilities of PBM. During the Term (as defined below), PBM, through its duly appointed representative or
representatives, shall provide the Company with certain strategy and business development, operations management, technical support, contract support, accounting and other services, as determined by mutual agreement of PBM and the Company from time
to time, which services shall include, without limitation, the performance of the following functions (collectively, the “Services”): 

(a) strategy and business development, including supporting the Company on pursuing partnering, financing, and regulatory planning; 

(b) operations management, including assisting in the operational execution of the Company’s strategic plan as approved by the Board of
Directors; 
 (c) technical support, including review of key technical documents and regulatory filings and planning/executing of key
development studies; 
 (d) contract negotiation and review and other corporate support; 

  
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 (e) processing purchase orders issued by the Company; 

(f) administer the payment of approved and budgeted bills and expenses by the Company; 

(g) administer the payroll of the Company, including payment of wages, salaries or commissions to all full or part-time on-site employees employed by the Company, and all amounts due for workmen’s compensation insurance, social security taxes or levies now in force or hereafter imposed with respect to any such employees or
personnel; 
 (h) maintain financial books and records for the Company; 

(i) obtain professional services on behalf of Company with respect to audit and outside accounting services and oversee the performance of such
services; 
 (j) oversee the preparation of financial statements state, local and federal tax returns to be filed by the Company; and 

(k) furnish such other services as are incidental to the foregoing or usually or customarily furnished by a financial manager. 

PBM agrees to use reasonable diligence in the exercise of the powers and duties conferred upon it in this Agreement, in the performance of the
Services.     
 3. Duties and Responsibilities of the Company. During the Term, the Company shall cooperate with
PBM and shall provide timely responses to PBM’s reasonable requests to enable PBM to perform the Services. All officers and directors of the Company shall reasonably cooperate with PBM in the fulfillment of its duties hereunder, including,
without limitation, attending (or sending representatives to attend) meetings, providing input to PBM and being available for consultation and signing documents, at PBM’s reasonable request. 

4. Management Fee. The Company shall pay a fee to PBM for the Services rendered in an amount of $5,000 per month, which fee shall be
paid on or before the last day of each calendar month in arrears. After a period of six (6) months and after every month thereafter, the Board of Directors may evaluate the Company’s utilization of Services under this Agreement and adjust
the fee, as appropriate, to reflect the utilization of Services. 
 5. Term and Termination. 

(a) Term. This Agreement shall commence on the effective date hereof and shall continue for a period of twelve (12) months, unless
terminated earlier in accordance with this Section 5 (such period, the “Initial Term”). Following the Initial Term, this Agreement shall automatically renew for successive monthly periods (each, a “Renewal
Term”) unless terminated by either Party upon notice to the other Party at least one month prior to the conclusion of the Initial Term or then-current Renewal Term. The Initial Term and any Renewal Term shall be, collectively, the
“Term.” 

  
 2 

 (b) This Agreement may be terminated by the either party with “Cause” (as defined
below) by providing written notice to the other party. If this Agreement is terminated by the Company with Cause, PBM will be entitled to receive solely that portion of the management fee set forth in Section 4 above that is accrued as of the
effective date of such termination. For purposes of this Agreement, “Cause” shall mean: (a) non-terminating party’s material breach of this Agreement, if such material breach
continues for thirty (30) days with failure to cure by non-terminating party following written notice specifying such breach by the terminating party; (b) the theft, fraud, or embezzlement by the non-terminating party of any part of the real or personal property, tangible or intangible, of the terminating party or any of its affiliates; (c) the commission of an act of fraud upon, or bad faith or willful
misconduct toward, the terminating party or any of its affiliates by the non-terminating party; or (d) the conviction of, or the entering of a guilty plea or plea of no contest by, the non-terminating party with respect to a felony involving dishonesty, theft, or fraud. 
 (c) Rights Upon
Termination. The termination of this Agreement shall not release or discharge either party from any obligation, debt or liability that shall have previously accrued and remain to be performed through the effective date of termination. 

6. Force Majeure. Notwithstanding any other provision contained herein, neither PBM nor the Company shall be deemed to be in default
under this Agreement for the failure to perform any of its obligations required pursuant to this Agreement if such failure is a result of governmental intervention, labor disputes, acts of God or any other event that is beyond the reasonable control
of the defaulting party. 
 7. Banking. All income and other funds of the Company shall be collected by the Company and maintained in
such bank account(s) as the Company shall determine from time to time in its sole discretion. All such funds shall be and shall remain the sole property of the Company. As determined by mutual agreement of PBM and the Company from time to time, PBM
may administer and process all of the payments by the Company pursuant to Section 2. PBM shall not process payment for any liability or expense that is not set forth in a budget that was approved by the Company’s Board of Directors (as
such budgets may be amended from time to time by the Board of Directors). 
 8. Indemnification. The Company shall indemnify and hold
PBM harmless from and against all claims, demands, costs, expenses, liabilities and losses (including reasonable attorneys’ and paralegals’ fees) that may result against PBM as a consequence of PBM’s performance of services under this
Agreement, except to the extent caused by PBM’s breach of this Agreement, gross negligence, violation of law or intentional misconduct. PBM shall indemnify and hold the Company harmless from and against all claims, demands, costs, expenses,
liabilities and losses (including reasonable attorneys’ and paralegals’ fees) that may result against the Company as a consequence of PBM’s breach of this Agreement, gross negligence, violation of law or intentional misconduct. 

9. Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY, OR TO ANY OTHER PERSON OR ENTITY, FOR ANY LOST
PROFITS, LOST SAVINGS, LOST DATA OR OTHER SPECIAL, INCIDENTAL, INDIRECT CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY KIND ARISING OUT OF, OR IN 

  
 3 

 
CONNECTION WITH, THIS AGREEMENT OR ANY SERVICES, WORK PRODUCT OR DELIVERABLES PROVIDED OR DELIVERED PURSUANT TO THIS AGREEMENT EVEN IF IT HAS BEEN INFORMED IN ADVANCE OF THE POSSIBILITY OF SUCH
DAMAGES. EACH PARTY’S TOTAL LIABILITY TO THE OTHER PARTY FOR ALL CLAIMS ARISING OUT OF, OR RELATING TO, THIS AGREEMENT, REGARDLESS OF THE FORM OF ACTION, SHALL BE LIMITED TO THE TOTAL PAYMENTS RECEIVED BY PBM UNDER THIS AGREEMENT. 

10. Notices. Any and all notices, designation, consents, offers, acceptances or any other communication provided herein, shall be in
writing and deemed given three (3) days after deposited in the U.S. Mail, registered or certified mail, return receipt requested, addressed, (i) in the case of PBM, to 200 Garrett Street, Suite S, Charlottesville, Virginia 22902, Attn:
Corporate Counsel, and (ii) in the case of the Company, to XXX, Attn: XXX, or in each case to such other address or addresses as may be specified in a notice given in a manner described in this section. 

11. Governing Law. This Agreement and all questions relating to its validity, interpretation, performance and enforcement shall be
governed by and construed in accordance with the laws of the State of Delaware notwithstanding any conflict or choice of laws provisions to the contrary. 

12. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective legal
representatives, successors and assigns, except that neither party shall have the right to assign this Agreement, or its rights or obligations hereunder, without the written consent of the other party hereto (which consent shall not be unreasonably
withheld, conditioned or delayed). 
 13. Miscellaneous Provisions. 

(a) Integration. This Agreement constitutes the entire Agreement between the parties and contains all of the agreements between the
parties with respect to the subject matter hereof. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the subject matter of this Agreement. 

(b) Modification. No change or modification of this Agreement shall be valid unless the same is in writing and signed by the parties
hereto. No waiver of any provision of this Agreement shall be valid unless in writing and signed by the person or party to be charged. 
 14.
Waivers. Neither the failure nor any delay on the part of any party to exercise any right, remedy, power or privilege (“Right”) under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise
of any Right preclude any other or further exercise of the same or of any other Right, nor shall any waiver of any Right with respect to any occurrence be construed as a waiver of such Right with respect to any such occurrence. No waiver shall be
effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
 15. Counterparts. This Agreement
may be executed by facsimile signature and in any number of counterparts, all of which, when taken together, shall constitute one and the same Agreement. 

  
 4 

 16. Headings. The headings in this Agreement are inserted for convenience only and are not
to be considered in the construction of the provisions hereof. 
 17. Status of Parties. In the performance of the work, duties and
obligations under this Agreement, it is mutually understood and agreed that each party is at all times acting and performing as an independent contractor with respect to the other party and that no relationship of partnership, joint venture or
employment is created by this Agreement. 
 18. No Rights or Liabilities in Third Parties. This Agreement is not intended to, nor
shall it be construed to, create any rights or liabilities in any third parties. 
 19. Severability. Whenever possible, each
provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement. 
 [Signatures appear
on following page(s).] 

  
 5 

 IN WITNESS WHEREOF, the parties hereto have caused this Services Agreement to be effective as of
the date first above written. 
  

			
	PBM:
	
	PBM CAPITAL GROUP, LLC
		
	By:	 	 /s/ Paul Manning

	Name: Paul Manning
	Title: CEO
	
	COMPANY:
	
	VERRICA PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Matthew Davidson

	Name: Matthew Davidson
	Title: President and Chief Executive Officer

 [Signature Page to PBM Services Agreement] 

 AMENDMENT TO SERVICES AGREEMENT 

This Amendment to Services Agreement (this “Amendment”), dated as of March 29, 2018, is made by and between
Verrica Pharmaceuticals Inc., a Delaware corporation (the “Company”), and PBM Capital Group, LLC, a Delaware limited liability company (“PBM”). Capitalized terms used but not otherwise defined herein
shall have the meanings given thereto in the Agreement (defined below). 
 BACKGROUND 

A. The Company and PBM entered into a Services Agreement dated as of December 2, 2015 (the “Agreement”); and 

B. The parties desire to adjust the fee set forth in the Agreement to reflect the Company’s current utilization of Services thereunder as
contemplated by Section 4 of the Agreement, and to further amend the termination section of the Agreement to allow for partial termination of Services, all as more particularly set forth below. 

AGREEMENT 
 NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained in this Amendment and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned agree as follows: 

1. Effective Date. The Company and PBM agree that the changes agreed upon in this Amendment shall be effective in all respects as of
April 1, 2018 (the “Effective Date”). 
 2. Amendment of Fee. The Company and PBM agree that, effective
as of the Effective Date, Section 4 of the Agreement shall be amended (i) to remove “$2,500 per month” in such Section and replace it with “$50,000 per month (the “Fee”)” and (ii) to replace
the lowercase term “fee” in two places in such Section following the new defined term with the capitalized term “Fee.” 

3. Amendment to Term. The Company and PBM agree that, effective as of the Effective Date, Section 5(a) of the Agreement shall be
deleted in its entirety and replaced with the following: 
 “(a) Term. The current renewal term of this Agreement shall commence
as of the Effective Date and shall continue for a period of twelve (12) months, unless terminated earlier in accordance with this Section 5 (such period, the “2018 Renewal Term”). Following the 2018 Renewal Term, this
Agreement shall automatically renew for successive monthly periods (each a “Subsequent Renewal Term”) unless terminated by either Party upon notice to the other Party at least one month prior to the conclusion of the 2018 Renewal
Term or any given Subsequent Renewal Term. The period from December 2, 2015 to the Effective Date, together with the 2018 Renewal Term and any and all Subsequent Renewal Terms shall be, collectively, the “Term.”” 

  
 1 

 4. Amendment of Termination Provisions. The Company and PBM agree that, effective as of
the Effective Date, Section 5(c) of the Agreement shall be moved to Section 5(d) of the Agreement and a new Section 5(c) shall be added as follows: 

“(c) In lieu of termination of the entire Agreement as provided elsewhere in this Section 5, the Company and PBM agree that, at any
time during the Term of this Agreement, the Company may elect to terminate (by delivery of written notice to that effect to PBM at least thirty (30) days prior to the effectiveness of any such termination), or the Parties may mutually agree to
terminate, the Company’s utilization of Services in any of the individual functional areas described below (each a “Functional Area” and any such partial termination, an “Individual Service
Termination”), and in the event of any such Individual Service Termination, the Fee for any period on and after the effectiveness of such Individual Service Termination shall be reduced by the Fee Adjustment amount set forth opposite
such Functional Area in the table below: 
  

					
	 Functional Area
	  	Fee Adjustment	 
	 Manufacturing/CMC
	  	$	5,395.83	 
	 Accounting Management
	  	$	8,833.34	 
	 Accounting Staff
	  	$	4,833.33	 
	 Human Resources
	  	$	1,041.67	 
	 Contract Administration and Legal Support
	  	$	11,500.00	 
	 Business Development / Strategic Planning
	  	$	18,395.83	 

 In the event of any Individual Service Termination, the Company and PBM agree to (i) select an effective
date for such Individual Service Termination that allows for an orderly wind down of Services in the specified Functional Area, and (ii) cooperate in all efforts to fully transition all matters relating to the terminated Functional Area from
PBM to the Company or its agent on or before the date identified as the effective date of such Individual Service Termination.” 
 5.
Amendment to Notice Address. The address for the Company set forth in Section 10 of the Agreement is hereby deleted in its entirety and replaced with the following: “10 North High Street, West Chester, PA 19380, Attn: Ted
White.” 
 6. Effect of Amendment. Except as otherwise provided herein, all of the provisions of the Agreement are hereby
ratified and confirmed and all the terms, conditions and provisions thereof remain in full force and effect. 
 [Signature Page to Follow]

  
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 IN WITNESS WHEREOF, the undersigned have executed this Amendment to Services Agreement as of the
date first set forth above. 
  

							
	COMPANY:	 		 		 	VERRICA PHARMACEUTICALS INC.
				
		 		 		 	By: /s/ Ted
White                                        
              
		 		 		 	Name: Ted White
		 		 		 	Title:   CEO
				
	PBM:	 		 		 	PBM CAPITAL GROUP, LLC
				
		 		 		 	By: /s/ Chris
Reebals                                        
         
		 		 		 	Name: Chris Reebals
		 		 		 	Title:   CFO

  
 3

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