Document:

exv10w55

Exhibit 10.55

EMPLOYMENT AGREEMENT

This Employment Agreement made effective as of September 14, 2010 (the “Effective Date”).

BETWEEN:

QLT INC., having an address of 887 Great Northern Way, Suite 101,
Vancouver, British Columbia, V5T 4T5, Canada.

(“QLT” or the “Company”)

AND:

SUZANNE MARY CADDEN

(“Ms. Cadden”)

WHEREAS:

	A.	 	QLT has offered to Ms. Cadden employment with QLT as Vice President, Regulatory Affairs.

	B.	 	QLT and Ms. Cadden wish to enter into this Agreement to set out the terms and conditions of
Ms. Cadden’s employment with QLT.

NOW THEREFORE in consideration of the increase in compensation to be paid under this Agreement by
QLT to Ms. Cadden, the promises made by each party to the other as set out in this Agreement and
other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge
and agree, QLT and Ms. Cadden agree as follows:

1. POSITION AND DUTIES

	1.1	 	Position — Effective the date QLT and Ms. Cadden mutually agree that her employment
will commence (the “Commencement Date”), QLT will employ Ms. Cadden in the position of Vice
President, Regulatory Affairs and Ms. Cadden agrees to be employed by QLT in that position,
subject to the terms and conditions of this Agreement. Ms. Cadden’s Commencement Date will be
no later than October 1, 2010.

	1.2	 	Duties, Reporting and Efforts — In the performance of her duties as Vice President,
Regulatory Affairs, Ms. Cadden will:

	 	(a)	 	Overall Responsibilities — Ms. Cadden will have overall responsibility for Regulatory
Affairs within QLT.

	 	(b)	 	Report — Report, as and when required, to the Senior Vice President, Research &
Development and Chief Medical Officer or such person appointed by the Board of Directors of
QLT (the “Board”) to act in that capacity.

					
	 	 	 	 	 
	 
	 	 
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	 	(c)	 	Best Efforts and Compliance with Policies, etc. — Use her best efforts, industry and
knowledge to carry out the duties and functions of the Vice President, Regulatory Affairs,
to comply with all of QLT’s rules, regulations, policies (including QLT’s Code of Ethics
and Code of Exemplary
Conduct) and procedures, as established from time to time and to ensure that QLT is at all
times in compliance with applicable provincial, state, federal and other governing
statutes, policies and regulations. Ms. Cadden confirms that she is not now nor has in the
past been debarred by the United States Food and Drug Administration under the Food, Drug
and Cosmetic Act or under the Generic Drug Enforcement Act and she has never been convicted
under the Food, Drug and Cosmetic Act or under the Generic Drug Enforcement Act, or under
any other federal law for conduct relating to the development or approval of a drug product
and/or relating to a drug product. In the event that Ms. Cadden is, or learns that she
will be (i) debarred under the Food, Drug and Cosmetic Act or under the Generic Drug
Enforcement Act, or (ii) convicted under the Food, Drug and Cosmetic Act or under the
Generic Drug Enforcement Act or under any other federal law for conduct relating to the
development or approval of a drug product and/or relating to a drug product, she will
immediately notify QLT in writing.

	 	(d)	 	Working Day — Devote the whole of her working day attention and energies to the
business and affairs of QLT.

2. COMPENSATION

	2.1	 	Annual Compensation — In return for her services under this Agreement, effective as
of the Commencement Date, QLT agrees to pay or otherwise provide the following total annual
compensation (in Canadian dollars) to Ms. Cadden:

	 	(a)	 	Base Salary — A base salary in the amount of CAD $265,000 in 24 equal installments
payable semi-monthly in arrears, subject to periodic annual reviews at the discretion of
QLT.

	 	(b)	 	Benefit Plans — Coverage for Ms. Cadden and her eligible dependents under any employee
benefit plans provided by/through QLT to its employees, subject to:

	 	I.	 	Each plan’s terms for eligibility,

	 	II.	 	Ms. Cadden taking the necessary steps to ensure effective enrollment or
registration under each plan, and

	 	III.	 	Customary deductions of employee contributions for the premiums of each plan.

As at the date of this Agreement, the employee benefit plans provided by/through QLT to its
employees include life insurance, accidental death and dismemberment insurance, dependent
life insurance, vision-care insurance, health insurance, dental insurance and short and long
term disability insurance. QLT and Ms. Cadden agree that employee benefit plans provided
by/through QLT to its employees may change from time to time.

	 	(c)	 	Expense Reimbursement — Reimbursement, in accordance with QLT’s Policy and Procedures
Manual (as amended from time to time), of all reasonable business expenses, including
accommodation and/or travel expenses incurred by Ms. Cadden, subject to her maintaining
proper accounts and providing documentation for these expenses upon request. Collectively,
these expenses and payments are the “Expenses”.

	 	(d)	 	Vacation — Four weeks of paid vacation per year, as may be increased from time to time
in accordance with QLT’s vacation policy for executive level employees. As per the
Company’s Policy and Procedures Manual (as amended from time to time), unless agreed to in
writing by the Company:

	 	I.	 	All vacation must be taken within the calendar year in which it is earned by
Ms. Cadden, and

	 	II.	 	Vacation entitlement will not be cumulative from calendar year to calendar
year; except that Ms. Cadden may carry forward 75 hours of vacation from the calendar
year in which it is earned to the following calendar year (but not subsequent years).

					
	 	 	 	 	 
	 
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	 	(e)	 	RRSP Contributions — Provided the conditions set out below have been satisfied, in
January or February of the year following the year in which the income is earned by Ms.
Cadden (the “Income Year”), QLT will make a contribution of up to 7% of Ms. Cadden’s annual
base salary for the Income Year to Ms. Cadden’s Registered Retired Savings Plan (“RRSP”).
The contribution to Ms. Cadden’s RRSP as set out above is subject to the following
conditions:

	 	I.	 	The maximum contribution to be made by QLT to Ms. Cadden’s RRSP is 50% of the
annual limit for Registered Retirement Savings Plans as established by Canada Revenue
Agency for the Income Year,

	 
	 	II.	 	Ms. Cadden must have contributed an equal amount into her RRSP, and

	 
	 	III.	 	Ms. Cadden is still actively employed by QLT when the matching contribution
would otherwise be made.

	 	(f)	 	Cash Incentive Compensation Plan — Participation in the Cash Incentive Compensation
Plan offered by QLT to its officers in accordance with the terms of such Plan, as amended
from time to time by the Board, at a target cash incentive compensation payment of 35% of
base salary, prorated in the first year of employment. The amount of that payment each year
will be determined at the sole discretion of the Chief Executive Officer and the Board and
is to be based the performance of Ms. Cadden and QLT relative to pre-set individual and
corporate objectives and milestones for the immediately preceding fiscal year. In order to
receive payment, Ms. Cadden must be employed by QLT at the time when the Cash Incentive
Compensation Plan is otherwise actually paid to eligible employees (which usually occurs in
February or March of the year following the calendar year in which such Cash Incentive
Compensation amount relates). The Board of Directors has the discretion to alter the cash
incentive compensation plan and payments thereunder.

	 	(g)	 	Stock Option Plan — Participation in any stock option plan offered by QLT to its
officers, in accordance with the terms of the plan in effect at the time of the stock
option offer(s).

	 	(h)	 	Relocation — QLT will reimburse Ms. Cadden for the costs of her relocation in
accordance with, and subject to, the terms described in Schedule A to this Agreement.

	 	(i)	 	Signing Stock Options — Conditional on Ms. Cadden entering into this Agreement and
commencing employment with QLT, and subject to the granting of such option by the Board of
Directors of QLT, Ms. Cadden will receive an option to purchase 40,000 common shares of
QLT. Subject to applicable laws, rules and regulations, these options will be granted at
the next regularly scheduled board meeting following
Ms. Cadden’s Commencement Date.
These options will be subject to the terms and conditions set out in QLT’s current Stock
Option Incentive Plan, have a five-year term and will vest monthly in equal installments
over three years from the grant date. The exercise price of the signing options will be
the closing price of the common shares on the Toronto Stock Exchange on the grant date.
These options will vest over three (3) years. Notwithstanding the vesting and exercise
periods, Ms. Cadden will not be entitled to exercise any rights under the stock option
agreement until she has successfully completed six months of employment with QLT and
maintained an employment record of good standing during such time.

	 	(j)	 	Signing Bonus — QLT will pay Ms. Cadden a signing bonus of $25,000, less statutory
withholdings, to be paid on the first payroll date following Ms. Cadden’s Commencement
Date. In the event of a termination of employment on Ms. Cadden’s part or by QLT for cause
(pursuant to paragraphs 3.1 and 5.1, respectively) prior to the completion of twelve (12)
months of employment from Ms. Cadden’s Commencement Date, Ms. Cadden shall be required to
reimburse QLT the full amount of the signing bonus paid to Ms. Cadden. Any amount payable
by Ms. Cadden to QLT under this
paragraph 2.1(j) shall be payable by Ms. Cadden to QLT within ten (10) days of the
termination of employment with QLT.

					
	 	 	 	 	 
	 
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3. RESIGNATION

	3.1	 	Resignation— Ms. Cadden may resign from her employment with QLT by giving QLT 60
days prior written notice (the “Resignation Notice”) of the effective date of her resignation.
On receiving a Resignation Notice, QLT may elect to provide the following payments in lieu of
notice to Ms. Cadden and require her to leave the premises forthwith:

	 	(a)	 	Base Salary — Base salary owing to Ms. Cadden for the 60-day notice period.

	 
	 	(b)	 	Benefits — Except as set out below in this subparagraph 3.1(b), for the 60-day notice
period, all employee benefit plan coverage enjoyed by Ms. Cadden and her eligible
dependents immediately prior to the date of her Resignation Notice. Ms. Cadden
acknowledges and agrees that any short and long term disability plans provided through QLT
will not be continued beyond the last day that Ms. Cadden works at QLT’s premises (the
“Last Active Day”).

	 
	 	(c)	 	Expense Reimbursement — Reimbursement (in accordance with QLT’s Policy and Procedures
Manual, as amended from time to time) of all reasonable business related expenses,
including accommodation and/or travel expenses incurred by Ms. Cadden prior to her Last
Active Day, subject to the expense reimbursement provisions set out in subparagraph 2.1(c).

	 
	 	(d)	 	Vacation Pay — Payment in respect of accrued but unpaid vacation pay owing to Ms.
Cadden as at the expiry of the 60-day notice period.

	 
	 	(e)	 	Prorated RRSP Contribution — Payment of any unpaid RRSP contribution in respect of any
calendar year preceding the calendar year in which the 60-day period expires and a prorated
contribution to Ms. Cadden’s RRSP, the pro-ration to be with respect to the portion of the
current calendar year worked by Ms. Cadden, up to and including the 60-day notice period,
and the contribution to be subject to the conditions set out in subparagraph 2.1(e), except
condition III.

	3.2	 	Others — In the event of resignation of Ms. Cadden as set out in paragraph 3.1, the
parties agree:

	 	(a)	 	No Bonus — Ms. Cadden will have no entitlement to participate in QLT’s Cash Incentive
Compensation Plan for the year in which she resigns her employment with QLT; and

	 	(b)	 	Stock Option Plan — Ms. Cadden’s participation in any stock option plan offered by QLT
to its employees will be in accordance with the terms of the plan in effect at the time of
the stock option grant(s) to Ms. Cadden and the applicable stock option agreement
applicable to such stock options.

4. RETIREMENT

	4.1	 	Retirement — Effective the date of retirement (as defined in QLT’s Policy and
Procedures Manual, as amended from time to time) of Ms. Cadden from active employment with
QLT, the parties agree that:

	 	(a)	 	This Agreement — Subject to the provisions of paragraph 10.6, both parties’ rights and
obligations under this Agreement will terminate without further notice or action by either
party.

	 	(b)	 	Stock Options — Ms. Cadden’s participation in any stock option plan offered by QLT to
its employees will be in accordance with the terms of the plan in effect at the time of the
stock option grant(s) to Ms. Cadden and the applicable stock option agreement applicable to
such stock options.

					
	 	 	 	 	 
	 
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5. TERMINATION

	5.1	 	Termination for Cause — QLT reserves the right to terminate Ms. Cadden’s employment
at any time for any reason. Should Ms. Cadden be terminated for cause, she will not be
entitled to any advance notice of termination or pay in lieu thereof.

	5.2	 	Termination Other than for Cause — QLT reserves the right to terminate Ms. Cadden’s
employment at any time without reason or cause. However, if QLT terminates Ms. Cadden’s
employment for any reason other than for cause, then, except in the case of Ms. Cadden
becoming completely disabled (which is provided for in paragraph 5.6) and subject to the
provisions set forth below, Ms. Cadden will be entitled to receive notice, pay and/or benefits
(or any combination of notice, pay and/or benefits) as more particularly set out in paragraph
5.3.

	5.3	 	Severance Notice and Pay — In the event QLT terminates Ms. Cadden’s employment as
set out in paragraph 5.2, Ms. Cadden will be entitled to:

	 	(a)	 	Notice — Advance written notice of termination (“Severance Notice”), or pay in lieu
thereof (“Severance Pay”), or any combination of Severance Notice and Severance Pay, as
more particularly set out below:

	 	I.	 	A minimum of six (6) months Severance Notice, or Severance Pay in lieu thereof,
and

	 	II.	 	One additional month’s Severance Notice, or Severance Pay in lieu thereof, for
each complete year of continuous employment with QLT,

up to a maximum total of 12 months’ Severance Notice, or Severance Pay in lieu of Severance
Notice. Ms. Cadden acknowledges and agrees that Severance Pay is in respect of base salary
only and will be made on a bi-weekly or monthly basis, at QLT’s discretion.

	 	(b)	 	Benefits — Except as set out below, for 30 days after Ms. Cadden’s Last Active Day,
all employee benefit plan coverage enjoyed by Ms. Cadden and her dependents immediately
prior to the date of termination. Thereafter, and in lieu of employee benefit plan
coverage, Ms. Cadden will receive compensation (“Benefits Compensation”) in the amount of
10% of her base salary for the balance of her Severance Notice period. Ms. Cadden
acknowledges and agrees that short and long term disability plans provided through QLT will
not be continued beyond Ms. Cadden’s Last Active Day.

	 	(c)	 	Out Placement Counseling — QLT will pay to an out placement counseling service (to be
agreed to by Ms. Cadden and QLT, each acting reasonably) a maximum of CAD $5,000 for
assistance rendered to Ms. Cadden in seeking alternative employment.

	 	(d)	 	Other Compensation — QLT will provide the following additional compensation:

	 	I.	 	QLT will reimburse (in accordance with QLT’s Policy and Procedures Manual, as
amended from time to time) Ms. Cadden for all Expenses properly and reasonably incurred
by Ms. Cadden on or prior to her Last Active Day, subject to the expense reimbursement
provisions set out in subparagraph 2.1(c).

	 	II.	 	QLT will make a payment to Ms. Cadden in respect of her accrued but unpaid
vacation pay to the date of termination of her employment with QLT.

	 	III.	 	QLT will make a prorated contribution to Ms. Cadden’s RRSP, the pro-ration to
be with respect to the portion of the current calendar year worked by Ms. Cadden and
the contribution to be subject to the conditions set out in subparagraph 2.1(e), except
condition III.

					
	 	 	 	 	 
	 
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	 	IV.	 	QLT will make a prorated payment to Ms. Cadden in respect of her entitlement to
participate in QLT’s Cash Incentive Compensation Plan, the pro-ration to be with
respect to the portion of the current calendar year worked by Ms. Cadden and the
entitlement to be at the target level Ms. Cadden would have otherwise been eligible to
receive in the current calendar year if all corporate, and, if applicable, individual
goals were met but not exceeded. If the Last Active Day precedes the date that the
amount under the Cash Incentive Compensation Plan or other incentive compensation is
otherwise actually paid to QLT’s officers for a preceding year then Ms. Cadden will
also receive a payment in respect of her entitlement to participate in QLT’s Cash
Incentive Compensation Plan and any other incentive compensation plan in place for the
preceding calendar year and the entitlement to be at the target level Ms. Cadden would
have otherwise been eligible to receive in the that calendar year if all corporate, and
individual goals were met but not exceeded.

	 	V.	 	Ms. Cadden’s participation in any stock option plan offered by QLT to its
employees will be in accordance with the terms of the plan in effect at the time of the
stock option offer(s) to Ms. Cadden.

	5.4	 	Acknowledgement and Release — Ms. Cadden acknowledges and agrees that in the event
QLT terminates Ms. Cadden’s employment as set out in paragraph 5.2, in providing:

	 	(a)	 	The Severance Notice or Severance Pay, or any combination thereof;

	 
	 	(b)	 	The Benefits Compensation;

	 
	 	(c)	 	Out placement counseling service as more particularly set out in subparagraph 5.3(c);
and

	 
	 	(d)	 	The other compensation set out in subparagraph 5.3(d);

QLT will have no further obligations, statutory or otherwise, to Ms. Cadden in respect of this
Agreement and Ms. Cadden’s employment under this Agreement.

	5.5	 	Duty to Mitigate

	 	(a)	 	Duty to Mitigate — Ms. Cadden acknowledges and agrees that if her employment is
terminated without cause as set out in paragraph 5.2, her entitlement to Severance Pay,
Benefits Compensation and other compensation as set out in paragraph 5.3 is subject to her
duty to mitigate such payments by looking for and accepting suitable alternative employment
or contract(s) for services. If Ms. Cadden obtains new employment or contract(s) for
services of four weeks or longer, Ms. Cadden agrees that she will notify QLT of this fact
in writing (the “New Employment Notice”) within five working days of such an occurrence and
in this event the following provisions apply:

I. Ms. Cadden acknowledges and agrees that her entitlement to Severance Pay and Benefits
Compensation will cease as of the date on which her new employment or contract for services
commences.

II. Within 10 working days of receipt of the New Employment Notice from Ms. Cadden, QLT
agrees that it will pay Ms. Cadden a lump sum amount equivalent to 50% of the Severance Pay
and Benefits Compensation as set out in paragraph 5.3 otherwise owing to Ms. Cadden for the
balance of the Severance Notice period.

	 	(b)	 	Waiver of Duty to Mitigate on Delivery of Release — In the event that, either on or
before the date of termination of Ms. Cadden’s employment with QLT or within 30 days after
termination of her employment, Ms. Cadden executes and delivers to QLT a release in the
form set out in Schedule B to this Agreement, the provisions of paragraph 5.5(a) shall be
deemed to not apply and Ms. Cadden shall have no duty to mitigate nor any reduction in the
Severance Pay or Benefits Compensation in
the event that she obtains alternative employment or contract(s) for service.

					
	 	 	 	 	 
	 
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	5.6	 	Termination Due to Inability to Act

	 	(a)	 	Termination — QLT may immediately terminate this Agreement by giving written notice to
Ms. Cadden if she becomes completely disabled (defined below) to the extent that she cannot
perform her duties under this Agreement either:

	 	I.	 	For a period exceeding six consecutive months, or

	 
	 	II.	 	For a period of 180 days (not necessarily consecutive) occurring during any
period of 365 consecutive days,

and no other reasonable accommodation can be reached between QLT and Ms. Cadden.
Notwithstanding the foregoing, QLT agrees that it will not terminate Ms. Cadden pursuant to
this provision unless and until Ms. Cadden has been accepted by the insurer for ongoing
long-term disability payments or, alternatively, has been ruled definitively ineligible for
such payments.

	 	(b)	 	Payments — In the event of termination of Ms. Cadden’s employment with QLT pursuant to
the provisions of this paragraph 5.6, QLT agrees to pay to Ms. Cadden Severance Pay and
Benefits Compensation as set out in paragraph 5.3 and if Ms. Cadden ceases to be completely
disabled, then the provisions of paragraph 5.3(c) (out placement counseling) will apply.

	 	(c)	 	Definition — The term “completely disabled” as used in this paragraph 5.6 will mean
the inability of Ms. Cadden to perform the essential functions of her position under this
Agreement by reason of any incapacity, physical or mental, which the Board, based upon
medical advice or an opinion provided by a licensed physician acceptable to the Board,
determines to keep Ms. Cadden from satisfactorily performing any and all essential
functions of her position for QLT during the foreseeable future.

	5.7	 	Death — Except as set out below, effective the date of death (the “Date of Death”)
of Ms. Cadden, this Agreement and both parties’ rights and obligations under this Agreement
will terminate without further notice or action by either party. Within 30 days after the
Date of Death (and the automatic concurrent termination of this Agreement), QLT will pay the
following amounts to Ms. Cadden’s estate:

	 	(a)	 	Base Salary — Base salary owing to Ms. Cadden up to her Date of Death.

	 	(b)	 	Payment in Lieu of Benefits — In lieu of employee benefit coverage for her eligible
dependents after her Date of Death, a payment in the amount of 10% of her annual base
salary in effect at her Date of Death.

	 	(c)	 	Expense Reimbursement — Reimbursement (in accordance with QLT’s Policy and Procedures
Manual, as amended from time to time) of all reasonable Expenses incurred by Ms. Cadden
prior to her Date of Death, subject to the expense reimbursement provisions set out in
subparagraph 2.1(c).

	 	(d)	 	Vacation Pay — Payment in respect of accrued but unpaid vacation pay owing to Ms.
Cadden as at her Date of Death.

	 	(e)	 	RRSP Contribution — A prorated contribution to Ms. Cadden’s RRSP, the pro-ration to be
with respect to the portion of the current calendar year worked by Ms. Cadden and the
contribution to be subject to the conditions set out in subparagraph 2.1(e), except
condition III.

	 	(f)	 	Bonus — A prorated payment to Ms. Cadden in respect of her entitlement to participate
in QLT’s Cash Incentive Compensation Plan, the pro-ration to be with respect to the portion
of the current
calendar year worked by Ms. Cadden and the entitlement to be at the target level Ms. Cadden
would have otherwise been eligible to receive in the current calendar year if all corporate,
and, if applicable, individual goals were met but not exceeded.

					
	 	 	 	 	 
	 
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After her Date of Death, Ms. Cadden’s participation and/or entitlement under any stock option
plan offered by QLT to its employees will be in accordance with the terms of the plan in effect
at the time of the stock option grant(s) to Ms. Cadden and the applicable stock option agreement
applicable to such stock options.

6. CONFLICT OF INTEREST

	6.3	 	Avoid Conflict of Interest — Except as set out below, during the term of her
employment with QLT, Ms. Cadden agrees to conduct herself at all times so as to avoid any
real or apparent conflict of interest with the activities, policies, operations and interests
of QLT. To avoid improper appearances, Ms. Cadden agrees that she will not accept any
financial compensation of any kind, nor any special discount or loan from persons,
corporations or organizations having dealings or potential dealings with QLT, either as a
customer or a supplier or a co-venturer. QLT and Ms. Cadden acknowledge and agree that from
time to time the President may consent in writing to activities by Ms. Cadden which might
otherwise appear to be a real or apparent conflict of interest.

	6.4	 	No Financial Advantage — During the term of her employment with QLT, Ms. Cadden
agrees that neither she nor any members of her immediate family will take financial advantage
of or benefit financially from information that is obtained in the course of her employment
related duties and responsibilities unless the information is generally available to the
public.

	6.5	 	Comply with Policies — During the term of her employment with QLT, Ms. Cadden agrees
to comply with all written policies issued by QLT dealing with conflicts of interest.

	6.6	 	Breach Equals Cause — Ms. Cadden acknowledges and agrees that breach by her of the
provisions of this Section 6 will be cause for immediate termination by QLT of her employment
with QLT.

7. CONFIDENTIALITY

	7.1	 	Information Held in Trust — Ms. Cadden acknowledges and agrees that all business and
trade secrets, confidential information and knowledge which Ms. Cadden acquires during her
employment with QLT relating to the business and affairs of QLT, its affiliates or
subsidiaries or to technology, systems, programs, ideas, products or services which have been
or are being developed or utilized by QLT, its affiliates or subsidiaries or in which QLT, its
affiliates or subsidiaries are or may become interested (collectively, “Confidential
Information”), will for all purposes and at all times, both during the term of Ms. Cadden’s
employment with QLT and at all times thereafter, be held by Ms. Cadden in trust and used by
Ms. Cadden only for the exclusive benefit of QLT.

	7.2	 	Non Disclosure — Ms. Cadden acknowledges and agrees that both during the term of her
employment with QLT and at all times thereafter, without the express or implied consent of
QLT, Ms. Cadden will not:

	 	(a)	 	Disclose — Disclose to any company, firm or person, other than QLT and its directors
and officers, any of the private affairs of QLT or any Confidential Information; or

	 	(b)	 	Use — Use any Confidential Information that she may acquire for her own purposes or
for any purposes, other than those of QLT.

					
	 	 	 	 	 
	 
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	7.3	 	Intellectual Property Rights

	 	(a)	 	Disclose Inventions — Ms. Cadden agrees to promptly disclose to QLT any and all ideas,
developments, designs, articles, inventions, improvements, discoveries, machines,
appliances, processes, methods, products or the like (collectively, “Inventions”) that Ms.
Cadden may invent, conceive, create, design, develop, prepare, author, produce or reduce to
practice, either solely or jointly with others, in the course of her employment with QLT.

	 	(b)	 	Inventions are QLT Property — All Inventions and all other work of Ms. Cadden in the
course of her employment with QLT will at all times and for all purposes be the property
of, and are hereby assigned by Ms. Cadden to, QLT for QLT to use, alter, vary, adapt and
exploit as it will see fit, and will be acquired or held by Ms. Cadden in a fiduciary
capacity solely for the benefit of QLT.

	 	(c)	 	Additional Requirements — Ms. Cadden agrees to:

	 	I.	 	Treat all information with respect to Inventions as Confidential Information.

	 
	 	II.	 	Keep complete and accurate records of Inventions, which records will be the
property of QLT and copies of which records will be maintained at the premises of QLT.

	 
	 	III.	 	Execute all assignments and other documents required to assign and transfer to
QLT (or such other persons as QLT may direct) all right, title and interest in and to
the Inventions and all other work of Ms. Cadden in the course of her employment with
QLT, and all writings, drawings, diagrams, photographs, pictures, plans, manuals,
software and other materials, goodwill and ideas relating thereto, including, but not
limited to, all rights to acquire in the name of QLT or its nominee(s) patents,
registration of copyrights, design patents and registrations, trade marks and other
forms of protection that may be available.

	 
	 	IV.	 	Execute all documents and do all acts reasonably requested by QLT to give
effect to this provision.

	7.4	 	Records — Ms. Cadden agrees that all records or copies of records concerning QLT’s
activities, business interests or investigations made or received by her during her employment
with QLT are and will remain the property of QLT. She further agrees to keep such records or
copies in the custody of QLT and subject to its control, and to surrender the same at the
termination of her employment or at any time during her employment at QLT’s request.

	7.5	 	No Use of Former Employer’s Materials and Information — Ms. Cadden certifies that
she has not brought to QLT and will not use while performing her employment duties for QLT any
materials or documents of any former employer which are not generally available to the public,
except if the right to use the materials or documents has been duly licensed to QLT by the
former employer. Ms. Cadden certifies, warrants, and represents that her performance of all
provisions of this Agreement will not breach any agreement or other obligation to keep in
confidence proprietary or confidential information known to her before or after the
commencement of employment with QLT. Ms. Cadden will not disclose to QLT, use in the
performance of her work for QLT, or induce QLT to use, any Inventions (as defined above),
confidential or proprietary information, or other material or documents belonging to any
previous employer or to any other party in violation of any obligation of confidentiality to
such party or in violation of such party’s proprietary rights; including without limitation
whether any products or services of such previous employer or other person actually
incorporated, used, or were designed or modified based upon such information, and even if such
information constitutes negative know-how.

					
	 	 	 	 	 
	 
	 	Page 9
	 	initials                     

 

 

 

8. POST-EMPLOYMENT RESTRICTIONS

	8.1	 	Non-Compete — Ms. Cadden agrees that, by virtue of her senior position with QLT, she
possesses and will possess strategic sensitive information concerning the business of QLT, its
affiliates and subsidiaries. As a result, and in consideration of the payments to be made by
QLT to Ms. Cadden under
this Agreement, without the prior written consent of QLT, for a period of one year following
termination of her employment with QLT for any reason (by resignation or otherwise), as measured
from her Last Active Day, Ms. Cadden will not:

	 	(a)	 	Participate in a Competitive Business — Directly or indirectly, own, manage, operate,
join, control or participate in the ownership, management, operation or control of, or be a
director or an employee of, or a consultant to, any business, firm or corporation that, as
a part of conducting its business, is in any way competitive with QLT or any of its
affiliates or subsidiaries with respect to:

	 	I.	 	the development and/or commercialization and/or marketing of pharmaceutical
products that are directly competitive with QLT’s or its subsidiaries’ then current
commercial products, Visudyne or any other products then being commercialized by or on
behalf of QLT or its affiliates or subsidiaries which individually have worldwide
annual net sales of U.S.$50 million or more in the calendar year preceding Ms. Cadden’s
Last Active Day,

	 	II.	 	the development and/or commercialization and/or marketing of light-activated
pharmaceutical products for photodynamic therapy in the treatment of ophthalmic
indications,

	 	III.	 	the development and/or commercialization and/or marketing of pharmaceutical
products for treating ophthalmic indications associated with endogenous retinyl
deficiencies in the eye, or

	 	IV.	 	the development and/or commercialization and/or marketing of pharmacuetical
products and/or devices that are or include lacrimal inserts and punctal plugs, and/or
drug-eluting lacrimal implants and drug-eluting punctal plugs, and insertion,
extraction and detection devices used in connection therewith, for the treatment or
prevention for disease, including ocular diseases,

anywhere in Canada, the United States or Europe.

	 	(b)	 	Solicit on Behalf of a Competitive Business — Directly or indirectly call upon or
solicit any QLT employee or QLT customer or known prospective customer of QLT on behalf of
any business, firm or corporation that, as part of conducting its business, is in any way
competitive with QLT with respect to:

	 	I.	 	the development and/or commercialization and/or marketing of pharmaceutical
products that are directly competitive with QLT’s or its subsidiaries’ then current
commercial products, Visudyne or any other products then being commercialized by or on
behalf of QLT or its affiliates or subsidiaries which individually have worldwide
annual net sales of U.S.$50 million or more in the calendar year preceding Ms. Cadden’s
Last Active Day,

	 	II.	 	the development and/or commercialization and/or marketing of light-activated
pharmaceutical products for photodynamic therapy in the treatment of ophthalmic
indications,

	 	III.	 	the development and/or commercialization and/or marketing of pharmaceutical
products for treating ophthalmic indications associated with endogenous retinyl
deficiencies in the eye, or

	 	IV.	 	the development and/or commercialization and/or marketing of pharmacuetical
products and/or devices that are or include lacrimal inserts and punctal plugs, and/or
drug-eluting lacrimal implants and drug-eluting punctal plugs, and insertion,
extraction and detection devices used in connection therewith, for the treatment or
prevention for disease, including ocular diseases,

anywhere in Canada, the United States or Europe.

					
	 	 	 	 	 
	 
	 	Page 10
	 	initials                     

 

 

 

	 	(c)	 	Solicit Employees — Directly or indirectly solicit any individual to leave the
employment of QLT or
any of its affiliates or subsidiaries for any reason or interfere in any other manner with
the employment relationship existing between QLT, its affiliates or subsidiaries and its
current or prospective employees.

	 	(d)	 	Solicit Customers — Directly or indirectly induce or attempt to induce any customer,
supplier, distributor, licensee or other business relation of QLT or its affiliates or
subsidiaries to cease doing business with QLT, its affiliates or subsidiaries or in any way
interfere with the existing business relationship between any such customer, supplier,
distributor, licensee or other business relation and QLT or its affiliates or subsidiaries.

	8.2	 	Minority Share Interests Allowed — The parties agree that nothing contained in
paragraph 8.1 is intended to prohibit Ms. Cadden from owning less than 5% of the issued and
outstanding stock of any company whose stock or shares are traded publicly on a recognized
exchange.

9. REMEDIES

	9.1	 	Irreparable Damage — Ms. Cadden acknowledges and agrees that:

	 	(a)	 	Breach — Any breach of any provision of this Agreement could cause irreparable damage
to QLT; and

	 	(b)	 	Consequences of Breach — In the event of a breach of any provision of this Agreement
by Ms. Cadden, QLT will have, in addition to any and all other remedies at law or in
equity, the right to an injunction, specific performance or other equitable relief to
prevent any violation by her of any of the provisions of this Agreement including, without
limitation, the provisions of Sections 7 and 8.

	9.2	 	Injunction — In the event of any dispute under Sections 7 and/or 8, Ms. Cadden
agrees that QLT will be entitled, without showing actual damages, to seek a temporary or
permanent injunction restraining her conduct, pending a determination of such dispute and that
no bond or other security will be required from QLT in connection therewith.

	9.3	 	Additional Remedies — Ms. Cadden acknowledges and agrees that the remedies of QLT
specified in this Agreement are in addition to, and not in substitution for, any other rights
and remedies of QLT at law or in equity and that all such rights and remedies are cumulative
and not alternative or exclusive of any other rights or remedies and that QLT may have
recourse to any one or more of its available rights and remedies as it will see fit.

10. GENERAL MATTERS

	10.1	 	Tax Withheld — The parties acknowledge and agree that all payments to be made by QLT
to Ms. Cadden under this Agreement will be subject to QLT’s withholding of applicable
withholding taxes.

	10.2	 	Independent Legal Advice — Ms. Cadden acknowledges that she has obtained or had the
opportunity to obtain independent legal advice with respect to this Agreement and all of its
terms and conditions.

	10.3	 	Binding Agreement — The parties agree that this Agreement will enure to the benefit
of and be binding upon each of them and their respective heirs, executors, successors and
assigns.

	10.4	 	Governing Law — The parties agree that this Agreement will be governed by and
interpreted in accordance with the laws of the Province of British Columbia and the laws of
Canada applicable to this Agreement. All disputes arising under this Agreement will be
referred to the Courts of the Province of British Columbia, which will have exclusive
jurisdiction, unless there is mutual agreement to the
contrary.

					
	 	 	 	 	 
	 
	 	Page 11
	 	initials                     

 

 

 

	10.5	 	Notice — The parties agree that any notice or other communication required to be
given under this Agreement will be in writing and will be delivered personally or by facsimile
transmission to the addresses set forth on page 1 of this Agreement to the attention of the
following persons:

	 	(a)	 	If to QLT — Attention: President and Chief Executive Officer, Fax No. (604) 707-7001,

with a copy to:

QLT Inc.

887 Great Northern Way, Suite 101

Vancouver, British Columbia

Attention: Principal Legal Officer

Fax No.: (604) 873-0816

	 	(b)	 	If to Ms. Cadden — To the address for Ms. Cadden specified on page 1 of this
Agreement;

or to such other addresses and persons as may from time to time be notified in writing by the
parties. Any notice delivered personally will be deemed to have been given and received at the
time of delivery. Any notice delivered by facsimile transmission will be deemed to have been
given and received on the next business day following the date of transmission.

10.6 Survival of Terms

	 	(a)	 	Ms. Cadden’s Obligations — Ms. Cadden acknowledges and agrees that her
representations, warranties, covenants, agreements, obligations and liabilities under any
and all of Sections 7, 8 and 10 of this Agreement will survive any termination of this
Agreement.

	 	(b)	 	Company’s Obligations — QLT acknowledges and agrees that its representations,
warranties, covenants, agreements, obligations and liabilities under any and all of
Sections 3, 4, 5 and 10 of this Agreement will survive any termination of this Agreement.

	 	(c)	 	Without Prejudice — Any termination of this Agreement will be without prejudice to any
rights and obligations of the parties arising or existing up to the effective date of such
expiration or termination, or any remedies of the parties with respect thereto.

	10.7	 	Waiver — The parties agree that any waiver of any breach or default under this
Agreement will only be effective if in writing signed by the party against whom the waiver is
sought to be enforced, and no waiver will be implied by indulgence, delay or other act,
omission or conduct. Any waiver will only apply to the specific matter waived and only in the
specific instance in which it is waived.

	10.8	 	Entire Agreement — The parties agree that the provisions contained in this Agreement
and any Stock Option Agreements entered into between QLT and Ms. Cadden constitute the entire
agreement between QLT and Ms. Cadden with respect to the subject matters hereof and thereof,
and supersede all previous communications, understandings and agreements (whether verbal or
written) between QLT and Ms. Cadden regarding the subject matters hereof and thereof. To the
extent that there is any conflict between the provisions of this Agreement and any Stock
Option Agreements, between QLT and Ms. Cadden, the following provisions will apply:

	 	(a)	 	Stock Options — If the conflict is with respect to an entitlement or obligation with
respect to stock options of QLT, the provisions of the Stock Option Agreements will govern
(unless the parties otherwise mutually agree).

	 	(b)	 	Other — In the event of any other conflict, the provisions of this Agreement will
govern (unless the parties otherwise mutually agree).

					
	 	 	 	 	 
	 
	 	Page 12
	 	initials                     

 

 

 

	10.9	 	Severability of Provisions — If any provision of this Agreement as applied to either
party or to any circumstance is adjudged by a court of competent jurisdiction to be void or
unenforceable for any reason, the invalidity of that provision will in no way affect (to the
maximum extent permissible by law):

	 	(a)	 	The application of that provision under circumstances different from those adjudicated
by the court;

	 	(b)	 	The application of any other provision of this Agreement; or

	 
	 	(c)	 	The enforceability or invalidity of this Agreement as a whole.

If any provision of this Agreement becomes or is deemed invalid, illegal or unenforceable in any
jurisdiction by reason of the scope, extent or duration of its coverage, then the provision will
be deemed amended to the extent necessary to conform to applicable law so as to be valid and
enforceable or, if the provision cannot be so amended without materially altering the intention
of the parties, then such provision will be stricken and the remainder of this Agreement will
continue in full force and effect.

	10.10	 	Captions — The parties agree that the captions appearing in this Agreement have
been inserted for reference and as a matter of convenience and in no way define, limit or
enlarge the scope or meaning of this Agreement or any provision.

	10.11	 	Amendments — Any amendment to this Agreement will only be effective if the
amendment is in writing and is signed by QLT and Ms. Cadden.

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

QLT INC.

	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Linda M. Lupini
 

LINDA M. LUPINI
	 	 	 	/s/ Suzanne Mary Cadden
 

SUZANNE MARY CADDEN
	 	 
	 

	 	Senior Vice President, Human Resources and 	 	 	 	 	 	 
	 

	 	Organizational Development	 	 	 	 	 	 

					
	 	 	 	 	 
	 
	 	Page 13
	 	initials                     

 

 

 

SCHEDULE A

RELOCATION EXPENSES

Relocation Expenses: 

	 	1.	 	Return air fares to Vancouver (tickets provided by QLT) for Ms. Cadden to find suitable
accommodation with hotel and rental of an economy car for a period of 3 to 4 days.

	 	2.	 	If required, reimbursement of up to six (6) months of interim accommodation upon
arrival in Vancouver to a maximum of $5,000 per month ($30,000 total), provided that Ms.
Cadden provides to QLT evidence satisfactory to QLT, in its sole discretion, acting
reasonably, of the monthly rental rate actually paid in the preceding month and the
contractual obligation relating thereto. QLT will assist in locating this accomodation, if
necessary. As required under the Income Tax Act, these payments must be used to provide
for temporary accommodation while Ms. Cadden is waiting to occupy her new permanent
residence, otherwise, they will be subject to the same required statutory withholdings in
Canada as base salary.

	 	3.	 	Reimbursement of real estate commission fees and reasonable legal expenses relating to
the sale of Ms. Cadden’s existing home within two years from the Commencement Date, to a
maximum of $46,200.00. These payments will be subject to the same required statutory
withholdings in Canada as base salary.

	 	4.	 	Reimbursement for reasonable legal expenses on Ms. Cadden’s purchase of a home in Metro
Vancouver within two years from the Commencement Date and subject to a maximum
reimbursement of $2,000.00.

	 	5.	 	Reimbursement of the B.C. Property Purchase Tax paid on Ms. Cadden’s residence.

	 	6.	 	Moving costs for household possessions, including one (1) automobile, and excluding
bulky items of low value. QLT will assign a corporate moving company.

	 	7.	 	Moving expenses incurred as a result of moving from Ms. Cadden’s interim accommodations
to her permanent residence in the Metro Vancouver area, to a maximum of $2,000.00. QLT
will assign a corporate moving company.

	 	8.	 	Reimbursement for the rental of an economy car for a one-month period if necessary.

	 	9.	 	One-way air fares for Ms. Cadden and her immediate family from Ms. Cadden’s present
location to Vancouver at the time of the move (or return air fare for Ms. Cadden if she
relocate to Vancouver prior to her family).

	 	10.	 	Accountable allowance: Reimbursement of up to $2,000.00 to cover other
reasonable expenses associated with Ms. Cadden’s move. The attached list “Other Allowable
Expenses” outlines those moving-related expenses which Canada Revenue Agency (CRA) allows
QLT to reimburse Ms. Cadden for without incurring a taxable benefit. Supporting receipts
will be required.

	 
	 	 	 	Non-accountable allowance: As part of Ms. Cadden’s relocation, she will likely incur
a number of incidental expenses which may not appear on the attached list (eg. cleaning
costs). QLT will reimburse Ms. Cadden for these costs up to $650.00 on a tax-free basis in
line with CRA’s accepted policy for non-accountable allowances (this is in addition to the
accountable allowance noted above). Note that QLT does not require Ms. Cadden to supply
supporting receipts for this reimbursement, however, Ms. Cadden will be required to provide
QLT with a memo certifying that she incurred at least this much in incidental costs. If Ms.
Cadden does not provide QLT with this memo, these costs will be treated as a taxable
benefit. Any additional reimbursement Ms. Cadden receives for “incidentals” that are not on
the attached list will be considered a taxable benefit.

					
	 	 	 	 	 
	 
	 	Page 14
	 	initials                     

 

 

 

OTHER ALLOWABLE EXPENSES

Previous Residence

	•	 	Disconnection charges and fees for telephone, water, space heaters, air conditioners, barbecues, automatic garage
doors, water heater and household appliances.

	 
	•	 	Premiums paid to discharge a mortgage on the former residence where the purchaser does not assume the mortgage, and
lease cancellation fees (including costs incurred to sub-lease a dwelling)

	 
	•	 	Expenses in carrying the former residence after the move in situations where, notwithstanding all reasonable efforts, a
sale of the former residence was not successfully completed. These expenses include property taxes, heat, hydro,
insurance and grounds maintenance costs.

New Residence

	•	 	Connection fees or installation costs for items where they existed at the old residence. These include telephone,
water, heating, hydro, cable TV, barbeques, water softners, water heaters, air conditioners, automatic garage openers,
space heaters, carpets, curtains, drapes, and household appliances.

	 
	•	 	Costs and fees for acquisition of new automobile licences, including provincial automobile inspection.

	 
	•	 	Costs incurred to adapt household belongings to the new location where such items were owned at the old residence,
including alterations to household furniture, piano and organ tuning, adjustments to drapes, blinds and carpets, and
plumbing/watering modifications.

	 
	•	 	Expenses incurred by the employee and spouse to locate a home at the new location, including travel/childcare expenses
and boarding of pets.

	 
	•	 	Legal costs associated with Will revisions necessitated by the move.

	 
	•	 	Long distance telephone charges in connection with the disposition of the former residence or the acquisition of the
new residence.

					
	 	 	 	 	 
	 
	 	Page 15
	 	initials                     

 

 

 

SCHEDULE B

FINAL RELEASE

IN CONSIDERATION OF the payments made to me by QLT Inc. (hereinafter called “QLT”) pursuant to
paragraph 5.3 of the employment agreement dated
                     day of                     , 20___
between the
undersigned and QLT and in consideration of the waiver by QLT of its rights under paragraph 5.5(a)
of that employment agreement, effective the date of this Release, I,                      of
                     do hereby remise, release and forever discharge QLT, having a place of business
at 887 Great Northern Way, Suite 101 in the City of Vancouver, Province of British Columbia, V5T
4T5, its officers, directors, servants, employees and agents, and their heirs, executors,
administrators, successors and assigns, as the case may be, of and from any and all manner of
actions, causes of action, suits, contracts, claims, damages, costs and expenses of any nature or
kind whatsoever, whether in law or in equity, which as against QLT or such persons as aforesaid or
any of them, I have ever had, now have, or at any time hereafter I or my personal representatives
can, shall or may have, by reason of or arising out of my employment with QLT and/or the subsequent
termination of my employment with QLT on or about                     , 20____, or in any other way
connected with my employment with QLT and more specifically, without limiting the generality of the
foregoing, any and all claims for damages for termination of my employment, constructive
termination of my employment, loss of position, loss of status, loss of future job opportunity,
loss of opportunity to enhance my reputation, the timing of the termination and the manner in which
it was effected, loss of bonuses, loss of shares and/or share options, loss of benefits, including
life insurance and short and long-term disability benefit coverage, and any other type of damages
arising from the above. Notwithstanding the foregoing, nothing in this Release will act to remise,
release or discharge QLT from obligations, if any, which QLT may have pursuant to any indemnity
agreements previously entered into between me and QLT or from any rights I may have to claim
coverage under QLT’s past, current or future director and/or officer insurance policies, in either
case with respect to existing or future claims that may be brought by third parties.

IT IS UNDERSTOOD AND AGREED that this Release includes any and all claims arising under the
Employment Standards Act, Human Rights Code, or other applicable legislation and that the
consideration provided includes any amount that I may be entitled to under such legislation.

IT IS FURTHER UNDERSTOOD AND AGREED that this Release is subject to compliance by QLT with the said
conditions as stipulated in paragraph 5.3 of the aforementioned employment agreement entered into
between the undersigned and QLT.

					
	 	 	 	 	 
	 
	 	Page 16
	 	initials                     

 

 

 

IT IS FURTHER UNDERSTOOD AND AGREED THAT QLT will withhold and remit income tax and other statutory
deductions from the aforesaid consideration and I agree to indemnify and hold harmless QLT
from any further assessments for income tax, repayment of any employment insurance benefits
received by me, or other statutory deductions which may be made under statutory authority.

IT IS FURTHER UNDERSTOOD AND AGREED that this is a compromise and is not to be construed as an
admission of liability on the part of QLT. The terms of this Release set out the entire agreement
between QLT and me with respect to the matters described herein and are intended to be contractual
and not a mere recital.

IT IS FURTHER UNDERSTOOD AND AGREED that I will keep the contents of this settlement and all
communication relating thereto confidential except to Revenue Canada or as is required to obtain
legal and tax advice, or to enforce my rights hereunder in a court of law, as is required by law.

IT IS FURTHER UNDERSTOOD AND AGREED that the consideration described herein was voluntarily
accepted by me for the purpose of making a full and final settlement of all claims described above
and that prior to agreeing to the settlement, I was advised by QLT of my right to receive
independent legal advice.

IN WITNESS WHEREOF this Release has been executed effective the                      day of                     , 20____.

	 	 	 	 	 	 	 	 	 	 	 
	SIGNED, SEALED AND DELIVERED	 	 	)	 	 	 	 	 
	By                      in the presence of:	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	(seal)

	 	 	 	 	)	 	 	 

SUZANNE CADDEN
	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	Name

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Address

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Occupation

	 	 	 	 	)	 	 	 	 	 

					
	 	 	 	 	 
	 
	 	Page 17
	 	initials                     

 

 

 

PERSONAL & CONFIDENTIAL

	 	 	 	 	 	 	 
	To:

	 	Suzanne Cadden
	 	Date:
	 	September 14, 2011
	From:

	 	Robert Butchofsky
	 	Re:
	 	Promotion

Addendum to Existing Employment Agreement

Suzanne, further to your existing Employment Agreement, it was recommended that you be promoted to
the position of Senior Vice President, Development. We are pleased to inform you that this
recommendation has now been approved, effective September 14, 2011. In this new position, you will
take on additional responsibility for research and formulations and their associated departments.

In recognition of this promotion your salary has been increased by 11.4% to $310,000.00 per annum
effective September 14, 2011. We are also pleased to advise you that effective September 14, 2011,
your eligibility for the Company’s Cash Incentive Compensation Plan has been increased from 35% to
45% of your base salary. Your increase in salary will be included in your September 30th pay
cheque.

The following “Termination of Employment” clauses will replace Section 5.3 (a) of your current
Employment Agreement:

	6.7	 	Severance Notice and Pay — In the event QLT terminates Ms. Cadden’s employment as
set out in paragraph 5.2, Ms. Cadden will be entitled to:

(a) Notice — Advance written notice of termination (“Severance Notice”), or pay in lieu
thereof (“Severance Pay”), or any combination of Severance Notice and Severance Pay of
twelve (12) months Severance Notice, or Severance Pay in lieu thereof. Ms. Cadden
acknowledges and agrees that Severance Pay is in respect of base salary only and will be
made on a bi-weekly or monthly basis, at QLT’s discretion.

All other terms and conditions of your employment will remain unchanged.

Please confirm receipt of this Addendum to your Employment Agreement by signing both copies, and
returning one copy to the Human Resources department, attention Sasha Cramp, as soon as possible.
You may keep the second copy for your personal records.

Congratulations, Suzanne! Your efforts are appreciated, and we wish you continued success with
QLT.

Acknowledged by:

	 	 	 	 	 	 	 
	/s/ Suzanne Cadden
 

Suzanne Cadden

	 	 	 	September 15, 2011
 

Date
	 	 

					
	 	 	 	 	 
	 
	 	Page 18
	 	initialsexv10w56

Exhibit 10.56

September 7, 2011

STRICTLY PERSONAL AND CONFIDENTIAL

Suzanne Cadden

Dear Suzanne:

INTRODUCTION

  A dedicated executive management team is essential to protecting and enhancing the
best interests of QLT Inc. (the “Company” or “QLT”) and its shareholders. The Company wishes to
provide its executives with compensation and benefits arrangements which would come into effect in
circumstances related to a change in control which are competitive with those of other
corporations, in order to ensure the Company receives the benefit of the full attention and
dedication of the executives at all times, and notwithstanding any threatened or pending change in
control of the Company.

The purpose of this Letter Agreement is to document the terms of the severance package to
which you as a Company executive shall be entitled if material changes in the terms of your
employment with the Company occur without your consent, or if your employment with the Company is
terminated, in connection with a change in control of the Company. Except as contemplated under
Section 2.5 of this Letter Agreement, the Letter Agreement supersedes and replaces any prior
agreements entered into between you and the Company with respect to your entitlement to severance
benefits in the event of a change of control of QLT. This letter shall not be effective unless and
until you actually commence employment with QLT.

NOW THEREFORE in consideration of $10.00, the promises made by each party to the other as set
out in this Letter Agreement and other good and valuable consideration, the receipt and sufficiency
of which each of the parties acknowledges, QLT and you agree as follows:

PART I

DEFINITIONS

1.1 Definitions. In this Letter Agreement:

	 	(a)	 	“Affiliate” has the meaning given to it in the Business Corporations Act (British
Columbia);

	 	(b)	 	“Benefit Plans” means the coverage under the Company’s group benefit plan for employees
which the Company provides to you and your eligible dependants, including all medical,
dental, life and other benefit plans but excluding short and long term disability coverage,
out-of-province medical coverage and the RRSP contribution benefit;

	 	(c)	 	“Board” means the Company’s Board of Directors;

 

 

 

	 	(d)	 	“Change of Control” means any of the following events:

	 	(i)	 	Merger. A merger, consolidation, reorganization or arrangement involving the
Company other than a merger, consolidation, reorganization or arrangement in which
stockholders of the Company immediately prior to such merger, consolidation,
reorganization or arrangement own, directly or indirectly, securities possessing at
least 65% of the total
combined voting power of the outstanding voting securities of the corporation
resulting from such merger, consolidation, reorganization or arrangement in
substantially the same proportion as their ownership of such voting securities
immediately prior to such merger, consolidation, reorganization or arrangement;

	 	(ii)	 	Tender Offer. The acquisition, directly or indirectly, by any person or related
group of persons acting jointly or in concert (other than the Company or a person that
directly or indirectly controls, is controlled by, or is under common control with, the
Company) of beneficial ownership of securities possessing more than 35% of the total
combined voting power of the Company’s outstanding securities pursuant to a tender
offer made directly to the Company’s stockholders;

	 	(iii)	 	Sale. The sale, transfer or other disposition of all or substantially all of
the assets of the Company other than a sale, transfer or other disposition to an
Affiliate of the Company or to an entity in which stockholders of the Company
immediately prior to such sale, transfer or other disposition own, directly or
indirectly, securities possessing at least 65% of the total combined voting power of
the outstanding voting securities of the purchasing entity in substantially the same
proportion as their ownership of such voting securities immediately prior to sale,
transfer or other disposition; or

	 	(iv)	 	Board Change. A change in the composition of the Board over a period of 24
consecutive months or less such that a majority of the Board members ceases to be
comprised of individuals who either have been:

	 	(A)	 	Board members continuously since the beginning of such period, or

	 
	 	(B)	 	appointed or nominated for election as Board members during
such period by at least a majority of the Board members described in subsection
(A) above who were still in office at the time the Board approved such
appointment or nomination.

	 	(e)	 	“Involuntary Termination” means any one of the following:

	 	(i)	 	the termination of your employment by the Company or the giving of written
notice to you by the Company of the intended termination of your employment, in either
case for reasons other than cause, permanent disability or death, within the 24 month
period following the occurrence of a Change of Control, or

	 	(ii)	 	your giving written notice to the Company, within 24 months after a Triggering
Event, in which you advise that a Triggering Event has occurred and tender your
resignation from employment with the Company;

	 	(f)	 	“Successor” shall mean any corporation which is the legal successor to the Company,
or which acquires substantially all of the assets of the Company, pursuant to a Change of
Control;

 

 

 

	 	(g)	 	“Triggering Event” shall mean, without your express written consent, the occurrence
of any one or more of the following circumstances after a Change of Control:

	 	(i)	 	the assignment to you of any duties which are materially inconsistent, in an
adverse respect, with your position, authority, duties or responsibilities prior to
the Change of Control, or any other action by the Company or its Successor which
results in a material diminution in such position, authority or responsibilities,
except an isolated and
inadvertent action not taken in bad faith and which is remedied by the Company or
its Successor promptly after receipt of notice thereof from you;

	 	(ii)	 	any reduction by the Company or a Successor in your base salary;

	 	(iii)	 	a reduction by the Company or a Successor of 25% or more of your annual cash
incentive compensation opportunity;

	 	(iv)	 	the Company or a Successor’s requiring you to, or notifying you that you will
be required to, relocate to or be based at, or situate one day or more per week in, a
location which is 100 kilometers or more from the location where you were based
immediately prior to the Change of Control;

	 	(v)	 	the failure by the Company or a Successor to continue, substantially as in
effect immediately prior to the Change of Control, all of the Company’s Benefit Plans,
in which you participate (or substantially equivalent successor plans, programs,
policies, practices or arrangements) or the failure by the Company or a Successor to
continue your participation therein on substantially the same basis as existed
immediately prior to the Change of Control;

	 	(vi)	 	the failure of the Company to obtain an agreement from any Successor to
assume and agree to perform this Letter Agreement, as contemplated in Section 3.5 of
this Letter Agreement, and your Employment Agreement with the Company (the “Employment
Agreement”); or

	 	(vii)	 	any purported termination by the Company or a Successor of your employment
other than for cause, permanent disability or death.

PART II

CHANGE OF CONTROL BENEFITS

2.1 Severance Payment. Upon the occurrence of an Involuntary Termination, you shall receive
a severance payment from the Company equal to the base salary and maximum RRSP contribution to
which you would have been entitled in an 18 month period (the “Severance Period”), calculated as
follows:

	 	(a)	 	the rate of base salary will be that in effect at the time of the
Involuntary Termination or as was in effect immediately prior to the occurrence of
a Triggering Event, whichever rate is greater; and

 

 

 

	 	(b)	 	a contribution to your RRSP, equal to that to which you would have been
entitled had you been employed by the Company throughout the Severance Period,
pro-rated for any period of less than a year, and subject to terms of the RRSP
contribution provisions set out in your Employment Agreement with the Company.

2.2 Other Compensation. In addition to the amounts paid under Section 2.1, upon the
occurrence of an Involuntary Termination, the Company shall:

	 	(a)	 	Expenses — reimburse you for all reasonable business related promotion,
entertainment and/or travel expenses incurred by you during the course of your
employment with the
Company, subject to the expense reimbursement provisions set out in your Employment
Agreement with the Company and the Company’s Policy and Procedures Manual, as
amended from time to time;

	 	(b)	 	Vacation — make a payment to you in respect of your accrued but unpaid
vacation pay up to and including your last day of employment with the Company;

	 	(c)	 	RRSP — make a prorated contribution to your RRSP, the pro-ration to be
with respect to the portion of the then current calendar year worked by you up to
and including the last day of your employment with the Company and subject to the
RRSP contribution provisions set out in your Employment Agreement with the
Company;

	 	(d)	 	Cash Incentive Compensation Earned Prior to Involuntary Termination —
make a payment to you in respect of your entitlement to participate in the
Company’s cash incentive compensation plan in respect of the current calendar year,
and the prior year if such payment has not yet been made, to be pro-rated with
respect to the portion of the current calendar year worked by you up to and
including your last day of employment with the Company and, in respect of the
current calendar year, shall be calculated at the maximum annual bonus entitlement
available to you under the Company’s cash incentive compensation plan at the time
of the Involuntary Termination as if 100% of your individual goals (if applicable)
and the corporate goals were met but not exceeded or the entitlement which was
available to you immediately prior to the occurrence of any prior Triggering Event,
whichever amount is greater;

	 	(e)	 	Benefits — continue to provide you and your eligible dependants with
coverage under the Company’s Benefit Plans for a period of 30 days after your last
day of employment with the Company and, at your request, for such further period
(the aggregate of which shall not exceed the Severance Period) as the insurer shall
permit (not to exceed the duration of the Severance Period), provided that the
Company’s obligation to maintain coverage for you and your eligible dependants
under this subsection will be conditional upon you and your eligible dependants
remaining in Canada. For any portion of the Severance Period during which such
coverage is not maintained (whether because you no longer reside in Canada or
decline to request such coverage beyond the initial 30-day period), the Company
shall pay to you compensation in the amount of 10% of your base salary, calculated
in accordance with Section 2.1(a) for such period;

 

 

 

	 	(f)	 	Moving Expenses — pay such moving expenses as may be reasonably
incurred by you to relocate you and your family to a new location for future
employment purposes or the location from which you traveled to Vancouver, as the
case may be, including, in the event that you are unable to sell your home in
Vancouver before you are required to pay costs of accommodation at your new
location, the costs of such accommodation until you derive proceeds from the sale
of you home in Vancouver, or six months, whichever period is longer, together with
any additional relocation reimbursement to which you may then be entitled under the
terms of your Employment Agreement with the Company, such expenses to be calculated
and paid in accordance with terms of your Employment Agreement, provided that there
is no duplication of payments pursuant to the Employment Agreement and this clause;

	 	(g)	 	Out-Placement Counselling — reimburse you for out-placement counselling
services from a qualified counsellor to be agreed to by you and the Company to a
maximum of CAD5,000 for services rendered to you in seeking alternative employment.

2.3 Timing of Payment. The amounts set out in Sections 2.1 and 2.2 shall be paid to you in
a lump sum payment within 30 days of your Involuntary Termination, except for the RRSP payments
described in Section 2.1(c) and 2.2(d), which will be payable in accordance with the terms of your
Employment Agreement in the same manner as if you were employed throughout the Severance Period.

2.4 No Duplication. The Company agrees that an Involuntary Termination by you, as defined
in subsection 1.1(e)(ii), shall constitute a termination of your employment by the Company without
cause pursuant to your Employment Agreement and any other agreement in effect between you and the
Company. In the event that the severance payment and other compensation provisions set out in
Sections 2.1 and 2.2 of this Letter Agreement and the severance payment provisions in your
Employment Agreement with the Company are both applicable, you agree that, upon the Company’s
request, you shall give written notice to the Company with respect to which agreement you wish to
be paid out under and that you shall not be entitled to severance pay under both agreements.

2.5 Options. Upon the occurrence of an Involuntary Termination, the provisions of your
Stock Option Agreement(s) with the Company shall govern all stock option issues, including, without
limitation, acceleration of vesting and the time period remaining to exercise any vested options.

2.6 Acknowledgement. In the event of an Involuntary Termination, payment by the Company of
the amounts set out in Sections 2.1 and 2.2 or, if you elect to receive severance under your
Employment Agreement payment of the amounts set out therein, in lieu of receiving a duplicative
payment hereunder, shall be in full and final satisfaction of all amounts that might otherwise be
payable by the Company to you by way of compensation for length of service, damages in lieu of
notice of termination or any other obligations arising under your employment with the Company and
the Company shall have no further obligations, statutory or otherwise, arising out of or in respect
of your employment and you shall execute a complete and general release in the form set out in
Schedule A as an express condition of your right to receive the payments and benefits referred to
in Sections 2.1 and 2.2 or under your Employment Agreement, as the case may be.

2.7 Termination for Cause, Permanent Disability or Death. For greater certainty, if your
employment is terminated for cause, permanent disability or death or you terminate your employment
other than as an Involuntary Termination, you shall not be entitled to payment of the amounts under
this Letter Agreement and the terms of your Employment Agreement with the Company shall govern.

 

 

 

2.8 Waiver of Non-Competition Covenant. Effective upon your Involuntary Termination, the
Company hereby waives any and all rights it has to insist upon compliance with or to enforce any
covenant, undertaking or agreement by you under your Employment Agreement or otherwise, pursuant to
which you have agreed not to compete with the Company in your future employment or otherwise limit
your future employment opportunities. Your obligations of confidentiality to the Company contained
in your Employment Agreement shall remain in full force and effect and are not altered by this
Letter Agreement.

2.9 Right to Waive any and all Consideration. In your discretion, upon your
written request to the Company made within 15 days of your Involuntary Termination, you may elect
to irrevocably waive your right to any of the consideration payable by the Company pursuant to this
Letter Agreement.

PART III

MISCELLANEOUS PROVISIONS

3.1 Term of Agreement. This Letter Agreement shall remain in effect for the term of your
employment with the Company and for a further six month period thereafter, unless the parties
mutually agree to an earlier termination, provided that the expiry or termination of this Letter
Agreement shall not affect the rights and obligations of the parties arising under this Letter
Agreement prior to its termination or expiry.

3.2 Legal Fees. The Company shall pay, to the full extent permitted by law, all legal fees
and expenses which you may reasonably incur as a result of any contest (regardless of the outcome
thereof) by the Company or its successors or Affiliates, you or others of the validity or
enforceability of, or liability under, any provision of this Letter Agreement or any guarantee of
performance thereof (including as a result of any contest by you about the amount of any payment
pursuant to this Letter Agreement).

3.3 Withholding Taxes. The Company may withhold from any amounts payable under this Letter
Agreement such federal, provincial, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

3.4 General Creditor Status. Except as provided by law, the benefits to which you may
become entitled under this Letter Agreement shall be paid, when due, from the general assets of the
Company. Your right (or the right of the executors or administrators of your estate) to receive
any such payments shall at all times be that of a general creditor of the Company and shall have no
priority over the claims of other general creditors of the Company.

3.5 Successors; Binding Agreement. The Company shall require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of its
business and/or assets to assume and agree to perform this Letter Agreement by express written
agreement in the same manner and to the same extent that it would be required to perform it if no
such succession had taken place. Failure of the Company to obtain such assumption and agreement
within 30 days of any such succession shall be a breach of this Letter Agreement and shall entitle
you to compensation from the Company in the same amount and on the same terms as you would be
entitled under this Letter Agreement, except that for purposes of implementing the foregoing, the
date on which any such succession becomes effective shall be deemed the date of the Involuntary
Termination.

3.6 Death. Notwithstanding anything else in this Letter Agreement, should you die after
becoming entitled to benefits under this Letter Agreement but before receipt of all benefits to
which you became entitled under this Letter Agreement, then the payment of such benefits shall be
made, on the due date or dates hereunder had you survived, to the executors or administrators of
your estate.

 

 

 

3.7 Governing Law. The provisions of this Letter Agreement shall be governed by and
interpreted in accordance with the laws of the Province of British Columbia and the laws of Canada
applicable to this Letter Agreement. All disputes arising under this Letter Agreement shall be
referred to the Courts of the Province of British Columbia, which shall have exclusive
jurisdiction, unless there is mutual agreement to the contrary.

3.8 Notice. The parties agree that any notice or other communication required to be given
under this Letter Agreement will be in writing and will be delivered personally to the addresses
set forth on page 1 of this Letter Agreement (or, in your case, to the most recent address for you
which the Company has on record), or to such other addresses and persons as may from time to time
be notified in writing by the parties.

3.9 Entire Agreement. This Letter Agreement, the Employment Agreement and any Stock Option
Agreements you have with the Company constitute the entire agreement between the Company and you
with respect to the subject matter hereof, and supersede all previous communications,
understandings and
agreements (whether verbal or written) between the Company and you regarding the subject matter
hereof. To the extent that there is any conflict between the provisions of this Letter Agreement,
the Employment Agreement and any Stock Option Agreements between you and the Company, the following
provisions shall apply:

	 	(i)	 	If the conflict is with respect to an event, entitlement or obligation in the
event of a Change of Control, the provisions of this Letter Agreement shall govern
(unless you elect to have those terms in the Employment Agreement apply).

	 	(ii)	 	If the conflict is with respect to an entitlement or obligation with respect
to stock options of the Company, the provisions of the Stock Option Agreements shall
govern (unless you and the Company otherwise mutually agree).

	 	(iii)	 	In the event of any other conflict, the provisions of the Employment
Agreement shall govern (unless you and the Company otherwise mutually agree).

3.10 Severability of Provisions. If any provision of this Letter Agreement as applied to
either party or to any circumstance should be adjudged by a court of competent jurisdiction to be
void or unenforceable for any reason, the invalidity of that provision shall in no way affect (to
the maximum extent permissible by law):

	 	(i)	 	The application of that provision under circumstances different from those
adjudicated by the court;

	 
	 	(ii)	 	The application of any other provision of this Letter Agreement; or

	 
	 	(iii)	 	The enforceability or invalidity of this Letter Agreement as a whole.

If any provision of this Letter Agreement becomes or is deemed invalid, illegal or unenforceable in
any jurisdiction by reason of the scope, extent or duration of its coverage, then the provision
shall be deemed amended to the extent necessary to conform to applicable law so as to be valid and
enforceable or, if the provision cannot be so amended without materially altering the intention of
the parties, then such provision shall be stricken and the remainder of this Letter Agreement shall
continue in full force and effect.

 

 

 

3.11 Captions. The captions appearing in this Letter Agreement have been inserted for
reference and as a matter of convenience and in no way define, limit or enlarge the scope or
meaning of this Letter Agreement or any provision.

3.12 Amendments. Any amendment to this Letter Agreement shall only be effective if the
amendment is in writing and is signed by the Company and by you.

3.13 Remedies. All rights and remedies provided pursuant to this Letter Agreement or by law
shall be cumulative, and no such right or remedy shall be exclusive of any other. A party may
pursue any one or more rights or remedies hereunder or may seek damages or specific performance in
the event of another party’s breach hereunder or may pursue any other remedy by law or equity,
whether or not stated in this Letter Agreement.

3.14 No Employment or Service Contract. Nothing in this Letter Agreement shall confer upon
you any right to continue in the employment of the Company for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the Company or you, which rights are
hereby expressly reserved by each, to terminate your employment at any time in accordance with the
terms of your Employment Agreement.

Please indicate your acceptance of the foregoing provisions of this Letter Agreement by
signing the enclosed copy of this Letter Agreement and returning it to the Company.

QLT INC.

	 	 	 	 	 
	By:

	 	/s/ Robert L. Butchofsky
 

Robert L. Butchofsky
	 	 
	 

	 	President and Chief Executive Officer	 	 

ACCEPTED AND AGREED TO this 15th day of September, 2011 by:

	 	 	 	 	 
	Signature:

	 	/s/ Suzanne Cadden
 

Suzanne Cadden
	 	 

 

 

 

SCHEDULE A

FINAL RELEASE

IN CONSIDERATION OF the payments made to me by QLT Inc. (hereinafter called “QLT”) pursuant to that
letter dated                      day of                     , 20____
from QLT to me, effective the date of this Release, I,
                     of                      do hereby remise, release and forever discharge QLT,
having a place of business at 887 Great Northern Way, Suite 101, in the City of Vancouver, Province
of British Columbia, V5T 4T5, its officers, directors, servants, employees and agents, and their
heirs, executors, administrators, successors and assigns, as the case may be, of and from any and
all manner of actions, causes of action, suits, contracts, claims, damages, costs and expenses of
any nature or kind whatsoever, whether in law or in equity, which as against QLT or such persons as
aforesaid or any of them, I have ever had, now have, or at any time hereafter I or my personal
representatives can, shall or may have, by reason of or arising out of my employment with QLT
and/or the subsequent termination of my employment with QLT on
or about                     , 20____, or
in any other way connected with my employment with QLT and more specifically, without limiting the
generality of the foregoing, any and all claims for damages for termination of my employment,
constructive termination of my employment, loss of position, loss of status, loss of future job
opportunity, loss of opportunity to enhance my reputation, the timing of the termination and the
manner in which it was effected, loss of bonuses, loss of shares and/or share options, loss of
benefits, including life insurance and short and long-term disability benefit coverage, and any
other type of damages arising from the above. Notwithstanding the foregoing, nothing in this
Release will act to remise, release or discharge QLT from obligations, if any, which QLT may have
pursuant to any indemnity agreements previously entered into between me and QLT or from any rights
I may have to claim coverage under QLT’s past, current or future director and/or officer insurance
policies, in either case with respect to existing or future claims that may be brought by third
parties.

IT IS UNDERSTOOD AND AGREED that this Release includes any and all claims arising under the
Employment Standards Act, Human Rights Code, or other applicable legislation and that the
consideration provided includes any amount that I may be entitled to under such legislation.

IT IS FURTHER UNDERSTOOD AND AGREED that this Release is subject to compliance by QLT with the said
conditions as stipulated in the aforementioned letter from QLT.

 

 

 

IT IS FURTHER UNDERSTOOD AND AGREED THAT QLT will withhold and remit income tax and other statutory
deductions from the aforesaid consideration and I agree to indemnify and hold harmless QLT from any
further assessments for income tax, repayment of any employment insurance benefits received by me,
or other statutory deductions which may be made under statutory authority.

IT IS FURTHER UNDERSTOOD AND AGREED that this is a compromise and is not to be construed as an
admission of liability on the part of QLT. The terms of this Release set out the entire agreement
between QLT and me with respect to the matters described herein and are intended to be contractual
and not a mere recital.

IT IS FURTHER UNDERSTOOD AND AGREED that I will keep the contents of this settlement and all
communication relating thereto confidential except to Revenue Canada or as is required to obtain
legal and tax advice, or to enforce my rights hereunder in a court of law, as is required by law.

IT IS FURTHER UNDERSTOOD AND AGREED that the consideration described herein was voluntarily
accepted by me for the purpose of making a full and final settlement of all claims described above
and that prior to agreeing to the settlement, I was advised by QLT of my right to receive
independent legal advice.

IN WITNESS WHEREOF this Release has been executed effective the _____
day of _____, 20_____.

	 	 	 	 	 	 	 	 	 	 	 
	SIGNED, SEALED AND DELIVERED )	 	 	 	 	 	 	 	 
	By                      in the presence of: )	 	 	 	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 

Suzanne Cadden
	 	 
	 	 	 	 	 	 	 	 	 
	Name

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Address

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Occupation

	 	 	 	 	)

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