Document:

exv10w50

 

Exhibit 10.50

October 16, 2006

Steven Halladay, Ph.D.

3260 Whipple Road

Union City, California 94587

RE: Severance Agreement

Dear Steven:

In addition to the terms and conditions of your employment with Questcor Pharmaceuticals, Inc. (the
“Company”) which are set forth in your Offer Letter dated October 13, 2006, and Change-in-Control
Agreement dated October 16, 2006, which are incorporated herein, the Company agrees to provide you
severance in the event that the following conditions are met.

In the event (1) your employment is terminated by the Company other than (a) for Cause (as defined
below) or (b) as a result of your permanent and total disability within the meaning of Section
422(c)(6) of the Internal Revenue Service Code of 1986, as amended (the “Code”), or (c) you resign
your employment upon 30 days’ prior written notice to the Company for Good Reason (as defined
below), during your first three years of employment, you will receive severance compensation
totaling Six (6) months of base salary. In the event (2) your employment is terminated by the
Company other than (a) for Cause (as defined below) or (b) as a result of your disability within
the meaning of Section 422(c)(6) of the Code, or (c) you resign your employment upon 30 days’
prior written notice to the Company for Good Reason (as defined below), after your first three
years of employment, you will receive severance compensation totaling Twelve (12) months of base
salary.

As a condition precedent to receiving severance compensation, you will be required to execute a
general release (in a form prepared by counsel for the Company) of claims against the Company and
its officers, directors, agents and shareholders. Such general release will not include rights to
vested options or claims for any compensation earned (including, without limitation, accrued
vacation), or reimbursement of expenses incurred, through the date of termination. Severance
compensation will be paid in accordance with normal payroll procedures. If you are reemployed at
any time during the severance period, all further severance compensation payments shall immediately
cease.

“Cause” will mean termination of your employment for any one or more of the following: (a) habitual
or material neglect of your assigned duties (other than by reason of disability) or intentional
refusal to perform your assigned duties (other than by reason of disability) which continues
uncured for 30 days following receipt of written notice of such

 

 

deficiency or “Cause” event from the Board of Directors, specifying in detail the scope and nature
of the deficiency or the “Cause” event; (b) an act of dishonesty intended to result in your gain or
personal enrichment; (c) personally engaging in illegal conduct which causes material harm to the
reputation of the Company or its affiliates; (d) committing a felony or gross misdemeanor directly
relating to, an act of dishonesty or fraud against, or a misappropriation of property belonging to,
the Company or its affiliates; (e) personally engaging in any act of moral turpitude that causes
material harm to the reputation of the Company; (f) intentionally breaching in any material respect
the terms of any nondisclosure agreement with the Company; or (g) commencement of employment with
another Company while an employee of the Company without the prior consent of the Board of
Directors. Any determination of “Cause” as used herein will be made only in good faith by the
Board of Directors.

“Good Reason” will mean the removal of your title of Senior Vice President, Clinical and Regulatory
Affairs without your written consent; provided, however, that Good Reason shall not exist as a
result of any reduction of your authority, duties or responsibilities so long as you retain the
title of Senior Vice President, Clinical and Regulatory Affairs of the Company.

This letter, your Offer Letter, your Change-in-Control Agreement, your stock option grant dated
October 16, 2006, and any future stock option grants, constitute the entire agreement between you
and the Company regarding the terms and conditions of your employment with the Company and
supersede any other agreement or promises made to you by anyone, whether oral or written, express
or implied.

This Agreement shall be interpreted, construed and administered in a manner that satisfies the
requirements of Sections 409A of the Code, and the Treasury Regulations there under.

Please sign and date this letter, and return it to me a soon as possible acknowledging your
understanding and acceptance of the terms and conditions set forth above.

Sincerely,

/s/ James L. Fares

	 	 	 
	James L. Fares
	 	 
	President and CEO

	 	Date: October 16, 2006

	 	 	 	 	 	 	 
	Agreed:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Steven Halladay, Ph.D.
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Steven Halladay, Ph.D.
	 	 	 	 	 	 
	Senior Vice President, Clinical and Regulatory Affairs

	 	Date:
	 	October 17, 2006exv10w51

 

Exhibit 10.51

August 1, 2006

VIA EMAIL

Eric Liebler

3260 Whipple Road

Union City, California 94587

Re: Offer of Employment

Dear Mr. Liebler:

Questcor Pharmaceuticals, Inc. (the “Company”) is pleased to offer you the position of Vice
President, Corporate Planning and Communications, on the terms described below. Should you accept
our offer of employment, your start date will be on August 1, 2006.

You will report to James Fares, Chief Executive Officer. Your office will be located at our
facility in Union City, California. It is also understood that you will at times work from an
office located at the above mailing address as well. Of course, the Company may change your
reporting responsibilities, position, duties, and work location from time to time, as it deems
necessary.

Your base compensation will be $190,000 per annum ($7,916.67 semi-monthly) less all amounts the
Company is required to hold under applicable laws. You will be a participant in the annual
employee incentive program for 2006. Your incentive bonus of up to 33% of earned base compensation
will be based on the attainment of specific milestones during each calendar year. The milestones
will be communicated to you in writing by Mr. Fares following the start of your employment and will
be updated annually as part of the performance review process. The Company will provide you with
indemnification equivalent to that provided to other senior management and pursuant to the
Company’s Directors and Officers insurance policies as in place from time to time. In addition,
as soon as administratively practicable following the start of your employment, the Company will
provide you with a change of control agreement commensurate with your position.

You will be eligible to participate in the Company’s various benefit plans including medical,
dental and vision insurance, as well as life, accidental death and disability insurance. You will
accrue a pro-rated 12 days of paid vacation per calendar year, in addition to paid regular
holidays. You will also be eligible to participate in the Company’s 401(k) Plan, Section 529
College Savings Program and Employee Stock Purchase Plan. The eligibility requirements for these
plans are explained in the Company’s Employee Handbook, and in the case of the Company’s 401(k)
Plan, in the 401(k) Plan’s summary
plan description. A copy of the Employee Handbook and the 401(k) Plan’s summary plan description
will be provided to you. Please read them carefully. Of course, to the extent

 

 

the provisions of
the various plans are inconsistent with the provisions of the Employee Handbook or summary plan
description, the plan provisions will control.

As you no doubt appreciate, as a Company employee, you will be expected to abide by Company rules
and regulations, acknowledge in writing that you have read the Company’s Employee Handbook, sign
and comply with a Proprietary Information and Inventions Agreement which prohibits unauthorized use
or disclosure of Company proprietary information and sign the Policy Against Insider Trading.

The Company’s management has in effect an employee stock option plan to recognize the talent and
skills our employees bring to the Company. Management will recommend to the Board of Directors
that, at the time you join the Company, the Company grant to you an option under the stock option
plan to purchase 320,000 shares of the Common Stock of the Company at an exercise price equal to
100% of the closing price of the Company’s Common Stock on the date prior to hire. One-fourth
(1/4th) of these options will vest after twelve (12) months of employment and thereafter
the remaining shares will vest at the rate of 1/48th of the original total grant on each
monthly anniversary of your continued employment with the Company. The option will be subject to
the terms and conditions of the Company’s 2006 Equity Incentive Award Plan and your stock option
agreement.

The Company will review your performance in accordance with the Employee Handbook, to assess your
accomplishment of milestones and goals, which the Company reasonably sets for you. The Company will
consider whether and when you should receive increases in your compensation and benefits as
described therein based on such accomplishments.

You may terminate your employment with the Company at any time and for any reason whatsoever simply
by notifying the Company. Likewise, the Company may terminate your employment at any time and for
any reason whatsoever, with or without cause or advance notice. This at-will employment
relationship cannot be changed except in writing signed by the Chief Executive Officer.

Any and all disputes connected with, relating to or arising from your employment with the Company
will be settled by final and binding arbitration in accordance with the rules of the American
Arbitration Association as presently in force. The only claims not covered by this Agreement are
claims for benefits under the unemployment insurance or workers’ compensation laws. Any such
arbitration will take place in Alameda County, California. The parties hereby incorporate into
this agreement all of the arbitration provisions of Section 1283.05 of the California Code of Civil
Procedure. The Company understands and agrees that it will bear the costs of the arbitration
filing and hearing fees and the cost of the arbitrator. Each side will bear its own attorneys’
fees, and the arbitrator will not have authority to award attorneys’ fees unless a statutory
section at issue in the dispute authorizes the award of attorneys’ fees to the prevailing party, in
which case the arbitrator has authority to make such award as permitted by the statute in question.
The arbitration shall be instead of any civil litigation; this means that you are waiving any
right to a jury trial, and that the arbitrator’s decision shall be final and binding to the fullest
extent permitted by law and enforceable by any court having jurisdiction thereof. Judgment upon
any award rendered by the arbitrators may be entered in any court having jurisdiction.

 

 

The employment terms in this letter supersede any other agreements or promises made to you by
anyone, whether oral or written, express or implied. In the event you accept this employment
offer, the terms set forth in this letter will comprise our final, complete and exclusive agreement
with respect to the subject matter of this letter. Thus, by accepting this employment offer and
signing this offer letter, you agree to be bound by its terms and conditions. As required by law,
the Company’s offer is subject to satisfactory proof of your right to work in the United States no
later than three days after your employment begins.

Please sign and date this letter, and return it to me as soon as possible. This offer terminates if
it is not signed and delivered to me by the close of business on August 2, 2006. A facsimile copy
will suffice for this purpose, so long as an original signature is delivered when you commence
employment. My confidential facsimile number is (510) 400-0710.

We look forward to your favorable reply and to a productive and enjoyable work relationship.

Sincerely,

	 	 	 
	/s/ James L. Fares
	 	 
	 

	 	 
	 
	 	 
	James L. Fares
	 	 
	President and Chief Executive Officer
	 	 

I hereby acknowledge that I have read the foregoing letter and agree to be bound by all of its
terms and conditions:

	 	 	 
	     /s/ Eric Liebler
	 	 
	 

           Eric Liebler

	 	 
	 
	 	 
	     August 2, 2006
	 	 
	 

           Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]