Document:

exv10w2

Exhibit 10.2

SETTLEMENT AGREEMENT AND RELEASE

     The parties to this Settlement Agreement and Release (the “Agreement” or the “Release”)
are Joseph P. Cooper (“Executive”) and Medicis Pharmaceutical Corporation (the “Company”).

RECITALS

     A. Executive is currently employed by the Company as its Executive Vice President,
Corporate and Product Development. Effective December 23, 2008, Executive and the Company
entered into an Employment Agreement (the “Employment Agreement”).

     B. The Company recently discussed a possible realignment of responsibilities for its
executive team, which Executive found to be unacceptable. Following additional discussions,
the Company and Executive have agreed that it is in both Company’s and Executive’s best
interests for Executive to terminate employment with the Company as of the Separation Date
(defined below).

     C. Executive and the Company each desires to resolve amicably, fully and finally all
matters between them, including, but in no way limited to, those matters relating to the
employment relationship between them and the termination of that relationship.

     NOW THEREFORE, in consideration of the recitals set forth above, which Executive and
Company acknowledge are accurate, and the mutual promises and obligations set forth below,
and other good and valuable consideration, the receipt and sufficiency of which are
expressly acknowledged, it is agreed as follows:

AGREEMENTS

     1. Separation Date. The Company and Executive agree that Executive’s employment
with the Company will terminate effective as of June 30, 2010 (the “Separation Date”). As of
the Separation Date, and without any further action on his part, Executive hereby resigns
from any and all positions or offices that Executive may hold with the Company or any
affiliate of the Company as well as with any benefit plan or other entity that Executive
holds either by appointment by the Company or due to his role as an officer of the Company.

     2. Transition. During the period beginning on the date on which this Agreement
is executed through the Separation Date, Executive agrees to fully and diligently perform
the duties assigned to him by the Company, which may differ from the duties currently
assigned to him, and to cooperate with and assist the Company in the transition of his
responsibilities to others. As part of Executive’s transition of his responsibilities to
others, Executive will diligently and promptly work on the preparation of a transition
memorandum covering such items as may be requested by the Company. During the period
beginning on the Separation Date and ending on the first anniversary of the Separation Date,
Executive also agrees, without further compensation, to make himself reasonably available
during normal business hours to respond to inquiries from representatives of the Company
regarding any matter or issue with which Executive was involved during his period of
employment with the Company.

     3. Payments and Benefits. Executive shall be entitled to receive the following
payments and benefits:

 

 

          (a) Severance Payments. Executive shall be entitled to receive three (3)
separate severance payments (the “Severance Payments”) totaling $2,900,000 and
payable in accordance with the following schedule:

	 	 	 	 	 	 	 
	Payment	 	Payment Date	 	Amount	 
	Payment 1
	 	Effective Date	 	$	1,000,000	 
	Payment 2
	 	July 1, 2011	 	$	1,000,000	 
	Payment 3
	 	January 15, 2012	 	$	900,000	 

     Payment 1 will be paid within seven (7) business days following the “Effective Date,”
which is the latest of(1) the Separation Date, (2) the expiration of the revocation period
referred to in Section 5(f) or (3) the expiration of the revocation period referred to in
the Supplemental Release attached hereto as Exhibit A, if applicable. If Executive complies
with the terms of this Agreement, Payments 2 and 3 will be made within seven (7) business
days of the dates specified above. Nevertheless, all three payments are conditioned on
Executive’s full compliance with all of the obligations contained in this Agreement,
including but not limited to the “Company Protection Provisions.” For this purpose, the
“Company Protection Provisions” are Section 9 (Non-Competition) of this Agreement and
Sections 6 (Confidentiality) and 7.1 (Non-Solicitation) of the Employment Agreement, which
survive the execution of this Agreement pursuant to Section 15. If Executive fails to honor
or satisfy the obligations imposed upon him pursuant to the Company Protection Provisions
for the maximum period set forth in the Company Protection Provisions, or if Executive
challenges such provisions and a court of competent jurisdiction reduces the temporal or
geographic scope of such provisions, Executive will relinquish any right to any payments
remaining due after the date of the violation
or the date of the filing of such challenge, as applicable. At all times, the right to
each of the three (3) Severance Payment made pursuant to this Section 3(a) shall be treated
as the right to a series of separate payments within the meaning of Treas. Reg. §
1.409A-2(b)(2)(iii). If Executive fails to sign this Agreement within the
21-day period referred to in Section 5(e) or if Executive fails to sign the Supplemental
Release attached as Exhibit A in accordance with Section 6 within the period referred to in Exhibit
A, or if Executive revokes his execution of this Agreement or the Supplemental Release within the
applicable seven (7) day revocation period, Executive shall not be entitled to receive any of the
payments provided pursuant to this Section 3(a) or any amounts due pursuant to any other provision
of this Agreement.

          (b) Acceleration of Severance Payments Due to Change in Control. If a
transaction that results in a “Change in Control” of the Company closes prior to
December 15, 2011, the Severance Payments due pursuant to Section 3(a) shall be paid
on the earlier of: (1) the dates specified in Section 3(a) or (2) within thirty (30)
days following the closing of the transaction that results in the Change in Control.
For purposes of this Agreement, “Change in Control” shall mean and refer to any
transaction or event that: (1) results in a “Change in Control” as that term is
defined in Section 5.8(b) of the Employment Agreement; and (2) that also qualifies as
a “change in control event” within the meaning of Treas. Reg. § 1.409A-3(i)(5).

          (c) Health Care Coverage. If Executive makes a timely election pursuant
to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) to continue his
benefits under a Company sponsored group health plan, the Company will reimburse
Executive for the actual cost of his COBRA coverage for a period of up to eighteen
(18) months following Executive’s “Separation from Service.” If Executive becomes
ineligible for COBRA coverage for

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any reason during such eighteen (18) month period (including but not limited to the nonpayment of
premiums) the Company’s obligation to reimburse Executive’s COBRA premiums shall cease. The
eighteen (18) month period referred to above shall run concurrently with the applicable COBRA
continuation period and shall not extend the maximum period under which Executive may receive
continued group health insurance benefits pursuant to COBRA. The liaison of the Company for COBRA
reimbursement matters shall be Lanora Contreras. Executive may not elect to receive cash or any
other allowance in lieu of any benefits provided by this Agreement. For purposes of this Agreement,
“Separation from Service” shall have the meaning set forth in Treas. Reg. § 1.409A-1(h).

          (d) No Further Obligation. The Company’s provision of the Severance
Payments and the COBRA premium reimbursements described in this Section 3 shall fully
satisfy its obligations to Executive under the terms of Executive’s Employment
Agreement. Executive shall have no further right to receive any benefits or payments
pursuant to the Employment Agreement or any other severance plan or program sponsored
by the Company. Executive’s rights to vest in any restricted stock or vest in or
exercise stock options will be determined pursuant to the provisions of the plans or
agreements pursuant to which such stock options or restricted stock were granted or
awarded to Executive and shall not be enhanced or otherwise impacted by the
provisions of this Agreement.

          (e) Gross Amounts. All amounts referred to in this Agreement are gross
amounts. The Company will deduct required and authorized withholdings.

          (f) Miscellaneous Payment Provisions. Under no circumstances may the
time or schedule of any payment made or benefit provided pursuant to this Agreement
be accelerated (except as otherwise provided in Section 3(b)) or subject to a further
deferral except as otherwise permitted or required pursuant to regulations and other
guidance issued pursuant to Section 409A of the Internal Revenue Code (the “Code”) or
applicable regulations. Executive has not been given the right to make any election
regarding the time or form of any payment due to him under this Agreement nor has
Executive been permitted to elect the taxable year of the Severance Payment.

     4. General Release.

          (a) By Executive. Executive does hereby release and forever discharge
the “Company Releasees” herein, consisting of the Company, its parent, subsidiary and
affiliate corporations, and each of their respective past and present parents,
subsidiaries, affiliates, associates, owners, members, stockholders, predecessors,
successors, assigns, employees, agents, directors, officers, partners,
representatives, lawyers, and all persons acting by, through, under, or in concert
with them, or any of them, of and from any and all manner of claims or causes of
action, in law or in equity, of any nature whatsoever, known or unknown, fixed or
contingent (hereinafter called “Claims”), that Executive now has or may hereafter
have against the Company Releasees by reason of any and all acts, omissions, events
or facts occurring or existing prior to Executive’s execution of this Release. The
Claims released hereunder include, without limitation, any alleged breach of any
express or implied agreement (including without limitation the Employment Agreement);
any alleged torts or other alleged legal restrictions relating to the Executive’s
service to the Company and the termination thereof; and any alleged violation of any
federal, state or local statute or ordinance including, without limitation, Title VII
of the Civil Rights Act of 1964, as amended; the Americans with Disabilities Act, as
amended; the Rehabilitation Act of 1973, as

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amended;
the Age Discrimination in Employment Act, as amended (“ADEA”); the Civil Rights Act of
1866, and the Civil Rights Act of 1991, as both have been amended; the Equal Pay Act, as amended;
regulations of the Office of Federal Contract Compliance; the Worker Adjustment and Retraining
Notification Act, as amended; the Family and Medical Leave Act, as amended; the Fair Labor
Standards Act of 1938, as amended; the Employee Retirement Income Security Act, as amended; the
Occupational Safety and Health Act, as amended; the Arizona Employment Protection Act, as amended;
or any other federal, state or local laws. This Release shall not apply to any of the following:
the Company’s obligations to provide Severance Payments and COBRA reimbursements under this
Agreement; to Executive’s rights to indemnification under a written agreement previously entered
into with the Company or the Articles or Bylaws of the Company or applicable law; to claims for
workers’ compensation benefits; or Executive’s vested rights under any stock option, restricted
stock, retirement or welfare benefit plan.

          (b) By Company. Company does hereby release Executive from any Claims
(as defined above) that Company now has or may hereafter have against Executive by
reason of any and all acts, omissions, events, or facts occurring or existing prior
to Company’s execution of this Release but only if and to the extent that Executive
is entitled to indemnification from Company with respect to such acts, omissions,
events, or facts pursuant to a written agreement previously entered into between
Executive and Company, the Articles or Bylaws of Company as in effect on the date of
this Agreement, or applicable law.

     5. Rights Under the Older Worker’s Benefit Protection Act. Executive agrees and
expressly acknowledges that this Release includes a waiver and release of all claims which
he has or may have under the Older Worker’s Benefit Protection Act and the ADEA. The
following terms and conditions apply to and are part of the waiver and release of the Older
Worker’s Benefit Protection Act claims and ADEA claims under this Release:

          (a) Executive acknowledges that this paragraph and this Release are written in a
manner calculated to be understood by Executive.

          (b) The waiver and release of claims under the ADEA contained in this Release
does not cover rights or claims that may arise after the date on which Executive
signs this Release.

          (c) Executive acknowledges that this Agreement provides for consideration in
exchange for this Release in addition to anything of value to which Executive is
already entitled.

          (d) Executive has been advised to consult an attorney before signing this
Release.

          (e) Executive, through his attorney, was first presented with this Release on
May 21, 2010. Executive accordingly has already had twenty-one (21) days to decide
whether or not to sign this Release. The Company has agreed to extend the period
within which Executive may decide whether or not to sign this Release through the
close of business on June 15, 2010. Executive and Company agree that the changes made
from the original version of the Release provided to Executive on May 21 do not
entitle Executive to an additional twenty-one (21) day period within which to decide
whether or not to sign this Release.

          (f) Executive has the right to revoke this Release within seven (7) days of
signing this Release. In the event this Release is revoked, Executive understands
that this Release will be null and void, and he will not be entitled to any
compensation or benefits under this

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Agreement. If Executive wishes to revoke this Release, Executive shall deliver written notice
stating his intent to revoke this Release to Jason Hanson at the offices of the Company on or
before 5:00 p.m. on the seventh (7th) day after the date on which he signs this Release. Receipt by
the Company of proper and timely notice of revocation from Executive cancels and voids this
Agreement. If Executive does not provide a timely notice of revocation, this Agreement will become
irrevocable on the calendar day immediately following expiration of the revocation period.

     6. Supplemental Release. At the request of the Company, Executive shall sign
the Supplemental Release attached hereto as Exhibit A no earlier than June 30, 2010.

     7. No Assignment. Executive represents and warrants to the Company Releasees
that there has been no assignment or other transfer of any interest in any Claim that the
Executive may have against the Company Releasees, or any of them. Executive agrees to
indemnify and hold harmless the Company Releasees from any liability, claims, demands,
damages, costs, expenses and attorneys’ fees incurred as a result of any person asserting
such assignment or transfer of any right or claims under any such assignment or transfer
from Executive.

     8. No Actions. Executive agrees that if Executive hereafter commences, joins
in, or in any manner seeks relief through any suit arising out of, based upon, or relating
to any of the Claims released hereunder or in any manner asserts against the Company
Releasees any of the Claims released hereunder, then Executive will pay to the Company
Releasees against whom such claim(s) is asserted, in addition to any other damages caused
thereby, all attorneys’ fees incurred by such Company Releasees in defending or otherwise
responding to said suit or Claim; provided, however, that Executive shall not be obligated
to pay the Company Releasees’ attorneys’ fees to the extent
such fees are attributable to claims under the ADEA or a challenge to the validity of
the release of claims under the ADEA.

     9. Non-Competition. For a period of eighteen (18) months following the
Separation Date, Executive shall not, directly or indirectly, in any County of the State of
Arizona, any of the States of the United States of America, or any country in Europe, serve
as an employee, consultant, officer, director, lender, investor, shareholder, partner,
manager or member of any person or entity, or own or act as a sole proprietor of a business,
that engages in the production of dermatological or facial aesthetic products or any
business that engages in the lines of business in which the Company is engaged on the
Separation Date (including, but not limited to, the manufacture, sale, marketing or
developing of (i) dermatological or aesthetic products (including but not limited to facial
aesthetic products), (ii) products or procedures for the reduction of fat or cellulite, or
(iii) products that may treat Urea Cycle Disorder, any other deficiencies and enzymes of the
Urea Cycle or that compete with those of UCYCLYD Pharma, Inc.) (each a “Competitor”);
provided, however, that Executive’s passive ownership of securities shall not be a violation
of this Section 9 if such securities represent:

          (a) less than one percent (1%) of the securities of a publicly traded entity
with a market capitalization greater than $500,000,000 at the time of Executive’s
investment (a “Large Publicly Traded Entity”); or

          (b) less than $500,000 and less than five percent (5%) of the securities of any
entity that is not a Large Publicly Traded Entity.

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     Executive acknowledges that these restrictions shall not prevent or unduly restrict
Executive from practicing his profession, or cause him economic hardship.

     Notwithstanding the foregoing, at the request of Executive, the Company will in good
faith consider relieving Executive of some or all of the obligations imposed upon him
pursuant to this Section 9 as it applies to a particular entity. Executive’s request shall
be in writing and shall, at a minimum, include a full description of his proposed
responsibilities. The review and release from the requirements of this Section 9 shall be
solely in the good faith discretion of the Company.

     10. Return of Company Property. Executive agrees that prior to the Separation
Date he shall make a diligent search and return to the Company all Company documents (in
electronic, paper or any other form as well as all copies thereof) and other Company
property that he has had in his possession at any time, including, but not limited to,
Company files, notes, drawings, records, business plans and forecasts, financial
information, specifications, computer-recorded information, tangible property including, but
not limited to, entry cards, identification badges and keys, cell phones, laptops and any
materials of any kind that may or may not contain or embody any proprietary or Confidential
Information of Company (as the term “Confidential Information” is defined in Section 6 of
the Employment Agreement). Any item that was paid for, or the purchase price for which was
reimbursed by, the Company shall be considered to be Company property. Executive agrees to
make a diligent search for all such Company property and to return any property not
previously returned to the Company no later than the Separation Date. Executive further
agrees to provide to the Company, within five (5) days of execution of this Agreement and
upon the Separation Date, with a computer-useable copy of any Company Confidential
Information or proprietary data, materials or information received, stored, reviewed,
prepared or transmitted on any personal computer, server, or e-mail system, to the extent
the same may be retrieved from such computers, servers and e-mail system, and, then, to
delete such Company Confidential Information or proprietary information from those
computers, servers and e-mail
systems.

     11. Cooperation in Proceedings. The Company and Executive agree that they shall
fully cooperate with each other with respect to any claim, litigation or judicial, arbitral
or investigative proceeding initiated by any private party or by any regulator, governmental
entity, or self-regulatory organization, that relates to or arises from any matter with
which Executive was involved during his employment with the Company, or that concerns any
matter of which Executive has information or knowledge (collectively, a “Proceeding”).
Executive’s duty of cooperation includes, but is not limited to: (a) meeting with the
Company’s attorneys by telephone or in person at mutually convenient times and places in
order to state truthfully Executive’s recollection of events; (b) appearing at the Company’s
request, upon reasonable notice, as a witness at depositions or trials, without the
necessity of a subpoena, in order to state truthfully Executive’s knowledge of matters at
issue; and (c) signing at the Company’s reasonable request declarations or affidavits that
truthfully state matters of which Executive has knowledge. The Company’s duty of cooperation
includes providing Executive and his counsel access to documents, information, witnesses and
the Company’s legal counsel as is reasonably necessary to litigate on behalf of Executive in
any Proceeding. If Executive’s cooperation involves meeting with attorneys, testimony, or
attendance at hearings or other proceedings, Company shall reimburse Executive for any
reasonable out-of-pocket expenses incurred in the course of performing such obligations
hereunder, and, absent an agreement pursuant to the following sentence, the Company shall
compensate Executive at the rate of $400.00 per hour for any hours in excess of eight per
month or 16 cumulatively devoted by Executive in the fulfillment of his obligations under
this

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sentence. If the obligations imposed upon Executive pursuant to this Section 11 require that
Executive devote significant, concentrated periods of time to the satisfaction of his obligations,
Company, on the request of Executive, will negotiate in good faith with Executive to reach an
agreement to provide Executive with reasonable compensation for his services. At the request of
Executive, the Company also shall consider in good faith any request from Executive to provide
Executive with legal counsel, either through the Company’s counsel or separate counsel, if
appropriate, in connection with such cooperation. Company shall indemnify Executive for any claims
alleged against Executive arising out of his acts or omissions that occurred in the course and
scope of his services to the Company in accordance with the terms of any written indemnification
agreement previously entered into between Executive and Company, or the Articles or Bylaws of
Company as in effect on the date of this Agreement, or applicable law. In addition, Executive
agrees to notify the Company’s General Counsel promptly of any requests for information or
testimony that he receives in connection with any litigation or investigation relating to the
Company’s business, and the Company agrees to notify Executive promptly of any requests for
information or testimony that it receives relating to Executive. Notwithstanding any other
provision of this Agreement, this Agreement shall not be construed or applied so as to require any
party to violate any confidentiality agreement or understanding with any third party, nor shall it
be construed or applied so as to compel any party to take any action, or omit to take any action,
requested or directed by any regulatory or law enforcement authority.

     12. No Disparagement. Executive and Company each acknowledge that following the
execution of this Agreement they will continue to be bound by the non-disparagement
provisions of Section 9.8 of the Employment Agreement.

     13. Severability. Should any provision in this Agreement be declared or
determined to be illegal or invalid, the validity of the remaining parts, terms, or
provisions shall not be affected and the illegal or invalid part, term, or provision shall
be deemed not to be a part of this Agreement.

     14. Acknowledgement. Executive acknowledges that he is herein being advised to
consult with an attorney prior to executing this Agreement. Executive represents and agrees
that he has read and fully understands all of the provisions of this Agreement, and that he
is voluntarily entering into this Agreement with a full and complete understanding of all of
its terms.

     15. Integration. Except as otherwise provided in this Agreement, this Agreement
constitutes the entire agreement between the parties, supersedes all oral negotiations and
any prior and other writings with respect to the subject matter of this Agreement and is
intended by the parties as the final, complete and exclusive statement of the terms agreed
to by them. Notwithstanding the foregoing, Executive and Company acknowledge and agree that
this Agreement does not limit, modify, amend, or supersede, in any way, their obligations to
abide by the provisions of Section 5.10 (Certain Additional Payments), Section 5.11 (Delayed
Distributions and Code Section 409A Compliance), Section 5.14 (Limited Section 409A
Payments), Section 6 (Confidentiality), Section 7.1 (Non-Solicitation), Section 8
(Arbitration Agreement), or Section 9.8 (Non-Disparagement) of the Employment Agreement or
any other provision of the Employment Agreement that, by its terms or by implication, is
intended to survive the termination of Executive’s employment with the Company. The parties
acknowledge that Section 9 of this Agreement amends, restates and replaces Section 7.2
(Non-Competition) of the Employment Agreement. Nothing in this Agreement is intended to
modify in any way any rights Executive may have to indemnification pursuant to a written
agreement previously entered into with the Company or the Articles or Bylaws of the Company
as in effect on the date of this Agreement, or applicable

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law or any vested rights Executive may have pursuant to any stock option, restricted stock,
retirement or welfare benefit plan. Those provisions shall continue in full force and effect in
accordance with their terms.

     16. Amendment. This Agreement shall be binding upon the parties and may not be
amended, supplemented, changed, or modified in any manner, orally or otherwise, except by an
instrument in writing of concurrent or subsequent date signed by the parties.

     17. Successors and Assigns. This Agreement is and shall be binding upon and
inure to the benefit of the heirs, executors, successors and assigns of each of the parties.

     18. Non-Admission. This Agreement shall not in any way be construed as an
admission by the Company that it has acted wrongfully with respect to Executive, and the
Company specifically denies the commission of any wrongful acts against Executive. Executive
acknowledges that he has not suffered any wrongful treatment by the Company.

     19. Joint Drafting. Executive and the Company agree that this Agreement shall
be deemed to have been drafted jointly by the parties. Any uncertainty or ambiguity shall
not be construed for or against any party based on attribution of drafting to any party.

     20. Counterparts. For the convenience of the parties, this Agreement may be
executed in any number of counterparts, each such counterpart being deemed to be an original
instrument, and all such counterparts shall together constitute the same agreement.

     21. Governing Law. This Agreement shall be construed, performed, and enforced
in accordance with, and governed by the laws of the State of Arizona without giving effect
to the principles of conflict of laws thereof.

     22. No Duty to Mitigate. Executive shall be entitled to the full benefits
provided under this Agreement without regard to Executive’s efforts or lack of efforts to
obtain alternative employment, and the benefits provided to Executive shall not be reduced
by any amounts received by Executive from any other source.

     23. Section 409A Compliance. The parties believe that the first Severance
Payment due pursuant to Section 3(a) qualifies for the short-term deferral exception to the
requirements of Section 409A. The parties also believe that the second and third Severance
Payments called for by Section 3(a) satisfy the requirements of Section 409A as does the
accelerated payment due upon a Change in Control pursuant to Section 3(b). In addition, the
parties believe that the health care coverage reimbursements called for by Section 3(c)
satisfy the separation pay exception to the requirements of Section 409A. The parties agree
that they will not take any inconsistent positions on any tax returns that they might file.

     24. No Reemployment. Executive agrees that in the future he will not apply for
employment for any position with the Company or any of is affiliates.

     25. Consent to Disclosure. Executive acknowledges that Company is obligated to
disclose this Agreement pursuant to applicable securities law requirements. Executive also
consents to Company’s disclosure of his departure to the Company’s employees, vendors,
business partners and others. Executive understands that this disclosure will occur
immediately upon the execution of this Agreement and will not be postponed until the
expiration of the

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revocation period referred to in
Section 5(f) or the Supplemental Release. Company shall provide
Executive with an advance copy of the form 8-K that will be filed with the Securities Exchange
Commission and any press release or internal communication with which Company intends to announce
Executive’s departure.

     26. Consent to Realignment of Portfolio. In light of Executive’s desire to
accelerate his departure from the Company, Executive understands that the Company will need
to move quickly to reassign Executive’s responsibilities to others. Executive consents to
the Company’s assignment of his authority, duties and responsibilities to others immediately
following the execution of this Agreement and agrees that he will not assert that the
reassignment of his authority, duties and responsibilities to others is “Good Reason” for
his termination of employment pursuant to the provisions of the Employment Agreement, even
if Executive chooses to revoke his execution of this Agreement pursuant to Section 5(f) or
the Supplemental Release pursuant to its terms. If Executive does revoke his execution of
this Agreement or the Supplemental Agreement, the revocation shall not have any impact upon
the consent provided pursuant to this Section or Section 25, which shall continue in full
force and effect despite any revocation.

     27. Representation of Executive. Executive hereby represents to the Company
that he is not aware of any action or omission on his part or of a third party that would
give rise to any liability of the Company to any third party or would give rise to any claim
by the Company against Executive. Company hereby represents to the Executive that it is not
aware of any action or omission on its part that would give rise to any claim by the
Executive against Company.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by
its duly authorized representative and Executive has executed this Agreement on this 15th day
of June, 2010.

	 	 	 	 	 	 	 	 	 	 	 

	Medicis Pharmaceutical Corporation	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Jason D. Hanson	 	 	 	/s/ Joseph P. Cooper	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Jason D. Hanson
	 	 	 	Joseph P. Cooper	 	 
	 

	 	Title:
	 	Executive Vice President, General

Counsel & Corporate Secretary	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	6/15/10	 	 	6/15/10	 	 
	Date	 	Date	 	 

9exv10w3

Exhibit 10.3

FIRST AMENDMENT TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     Medicis Pharmaceutical Corporation (the “Company”) and Jason D. Hanson (the “Executive”)
entered into an Amended and Restated Employment Agreement (the “Agreement”) effective as of
December 22, 2008. The Company and Executive wish to amend the Agreement to modify the
description of the Executive’s position and duties and to clarify the circumstances in which a
change in the Executive’s authority, duties or responsibilities will be deemed to give rise to
“Good Reason” for the Executive to terminate the Agreement. The Company and Executive each
acknowledge that the modification of the Executive’s position and duties and the noted
clarification is valuable to it or him and provides adequate consideration for the execution
of this First Amendment.

     1. This First Amendment is effective as of June 30, 2010.

     2. Section 2.1 of the Agreement is hereby amended and restated in its entirety to read as
follows:

     2.1 Position and Duties. Executive shall serve as the
Executive Vice President and Chief Operating Officer of the
Company, and shall have such authority, duties and responsibilities as
are ordinarily assigned to an employee holding the position of Chief
Operating Officer with a publicly traded company. Executive shall
also have such additional authority, duties and responsibilities as may
be assigned to him by the Company from time to time with his
consent.

     3. Section 3.1 of the Agreement is hereby amended to provide that Executive’s salary,
effective as of the effective date of this First Amendment, shall be increased to an annual
rate of
$625,000 per year.

     4. Section 5.6(b) of the Agreement is hereby amended and restated in its entirety to read
as follows:

     (b) a material diminution in Executive’s authority, duties or
responsibilities as set forth in Section 2.1, provided, however, that for

 

 

purposes of this clause (b) a change in Executive’s authority, title, duties, or responsibilities
shall not be deemed to materially reduce Executive’s authority, duties, or responsibilities if all
of the following conditions are satisfied: (i) at the time the change is implemented
Jonah Shacknai is serving as Company’s Chief Executive Officer; (ii) Mr. Shacknai
initiated or approved the change; (iii) Executive continues to report to either the supervisor to
whom Executive reported immediately prior to such change or a supervisor at the same or higher
level of responsibility within Company’s organizational structure; and (iv) there is no material
diminution in Executive’s Base Compensation or in Executive’s opportunities for incentive or equity
compensation.

     5. This First Amendment amends only the provisions of the Agreement as set forth herein,
and those provisions not expressly amended by this First Amendment shall continue in full
force and effect. Notwithstanding the foregoing, this First Amendment shall supersede the
provisions of the Agreement to the extent those provisions are inconsistent with the provisions and
the intent of this First Amendment.

     IN WITNESS WHEREOF, Executive has executed this First Amendment, and Company has
caused this First Amendment to be executed by its duly authorized representative, on this
15th day of June, 2010.

	 	 	 	 	 
	 	MEDICIS PHARMACEUTICAL CORPORATION

 	 
	 	By  	/s/ Mark A. Prygocki
 	 
	 	 	Its Mark A. Prygocki 	 
	 	 	Executive Vice President, Chief Operating Officer 	 
	 
	 	“EXECUTIVE”

 	 
	 	/s/ Jason D. Hanson
 	 
	 	 	 
	 	 	 
	 

2

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