Document:

exv10w36

 

	 	 	 	 	 

Exhibit 10.36

AVANIR PHARMACEUTICALS

Restricted Stock Unit Grant Agreement

     This Restricted Stock Unit Grant Agreement (the “Agreement”) is dated as of [         ] and is
entered into between Avanir Pharmaceuticals, a California corporation (the “Company”), and [         ] (the “Awardee”). Capitalized terms not otherwise defined herein shall have the respective
meanings set forth in the Plan.

RECITALS

     A. The Company’s [2003 / 2005] Equity Incentive Plan (the “Plan”) provides that
the Company may issue stock awards, including awards of restricted stock units.

     B. On [         ], the Board of Directors, acting directly or through its
Compensation Committee, approved the grant of the following restricted stock units, representing
the right to receive shares of Class A common stock of the Company upon the vesting schedule set
forth below in Section 2 (the “Restricted Stock Units”).

AGREEMENT

     In consideration of the mutual promises set forth below, the parties hereto agree as follows:

     1. Award of Restricted Stock Units. Subject to the terms and conditions of this Agreement
and the Plan (the terms of which are incorporated herein by reference) and effective as of the date
set forth above, the Company hereby grants to the Awardee [         ] Restricted Stock Units.

     2. Vesting.
The Restricted Stock Units shall vest with respect to one-quarter of
the Restricted Stock Units on
the first anniversary of the grant date, and then with respect to the
remaining Restricted Stock Units, in equal portions on a quarterly
basis thereafter
over the next three years.

     3. Effect of Termination. Following the Termination of a Awardee’s service, the unvested
portions of the Restricted Stock Units, if any, as of the date of Termination shall be forfeited.

     4. Distribution. Stock certificates evidencing a one-for-one conversion (adjusted as
provided in the Plan) of vested Restricted Stock Units into Shares (the “Certificate”) shall be
issued and registered in the Awardee’s name as promptly as practicable following a particular
Vesting Date. Notwithstanding the foregoing, the distribution of the shares and the issuance of
the Certificates may, for directors and officers of the Company, be deferred beyond the vesting
date if such director or officer executes and delivers a deferral election form, which is available from Secretary of the Company. In the case of Awardee’s death, Certificates shall be
delivered to the Awardee’s beneficiary or estate as soon as practicable.

 

 

     5. Dividends. Participants holding Restricted Stock Units shall not be entitled to receive
cash payments equal to any cash dividends and other distributions paid with respect to a
corresponding number of Shares until the underlying Shares have been delivered in accordance with
this Agreement.

     6. Tax Withholding Obligations. In circumstances in which tax withholding is applicable,
to meet any such obligations of the Company and Awardee that might arise with respect to any
withholding taxes, FICA contributions, or the like under any federal, state, or local statute,
ordinance, rule, or regulation in or connection with the award, deferral, or settlement of the
Restricted Stock Units, the Awardee shall remit to the Company an amount of cash sufficient to meet
the withholding requirements and/or the Company shall withhold the required amounts from
the Awardee’s pay. Notwithstanding the foregoing, the Committee may, in its sole discretion, allow
Awardee to satisfy such withholding obligations upon settlement of the Restricted Stock Units by
withholding a number of Shares having a Fair Market Value equal to the Company’s statutory
withholding obligations. The Company shall not deliver any of the Certificates until and unless the
Awardee has made the payment(s) required herein or proper provision for required withholding has
been made. The Awardee hereby consents to any action reasonably taken by the Company to meet the
withholding obligations.

     7. Restriction on Transferability. Restricted Stock Units may not be sold, transferred,
pledged, assigned, or otherwise alienated at any time. Any attempt to do so contrary to the
provisions hereof shall be null and void. Notwithstanding the above, transfers can be made pursuant
to intra-family transfer instruments or to an inter vivos trust.

     8. Rights as Shareholder. The Awardee shall not have voting or any other rights as a
shareholder of the Company with respect to the Restricted Stock Units. Upon settlement of the
Restricted Stock Units into Shares, the Awardee will obtain full voting and other rights as a
shareholder of the Company.

     9. Administration. The Committee shall have the power to interpret the Plan and this
Agreement and to adopt such rules for the administration, interpretation, and application of the
Plan as are consistent therewith and to interpret or revoke any such rules. All actions taken and
all interpretations and determinations made by the Committee shall be final and binding upon the
Awardee, the Company, and all other interested persons. No member of the Committee shall be
personally liable for any action, determination, or interpretation made in good faith with respect
to the Plan or this Agreement.

     10. Effect on Other Employee Benefit Plans. The value of the Restricted Stock Units granted
pursuant to this Agreement shall not be included as compensation, earnings, salaries, or other
similar terms used when calculating the Awardee’s benefits under any Awardee or other benefit plan
sponsored by the Company or any Affiliate except as such plan otherwise expressly provides. The
Company expressly reserves its rights to amend, modify, or terminate any of the Company’s or any
Affiliate’s employee benefit plans.

     11. Effect on Service. The award of the Restricted Stock Units pursuant to this Agreement
shall not give the Awardee any right to remain in the service of the Company or any Affiliate. The
award is completely within the discretion of the Company. It is not made as a part

 

 

of any ongoing element of compensation or something that the Awardee should expect to receive annually or on any
other periodic basis. It does not constitute part of the Awardee’s compensation for purposes of
determining any post-employment payment or severance.

     12. Amendment. This Agreement may be amended only by a writing executed by the Company and
the Awardee which specifically states that it is amending this Agreement. Notwithstanding the
foregoing, this Agreement may be amended solely by the Committee by a writing which specifically
states that it is amending this Agreement, so long as a copy of such amendment is delivered to the
Awardee, and provided that no such amendment adversely affects the rights of the Awardee (but
limiting the foregoing, the Committee reserves the right to change, by written notice to the
Awardee, the provisions of the Restricted Stock Units or this Agreement in any way it may deem
necessary or advisable to carry out the purpose of the grant as a result of any change in
applicable laws or regulations or any future law, regulation, ruling, or judicial decision,
provided that any such change shall be applicable only to Restricted Stock Units which are then
subject to restrictions as provided herein).

     13. Notices. Any notice to be given under the terms of this Agreement to the Company shall
be addressed to the Secretary of the Company. Any notice to be given to the Awardee shall be
addressed to the Awardee at the address listed in the Company’s records. By a notice given pursuant
to this Section, either party may designate a different address for notices. Any notice shall have
been deemed given when actually delivered.

     14. Severability. If all or any part of this Agreement or the Plan is declared by any court
or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not
invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid. Any
Section of this Agreement (or part of such a Section) so declared to be unlawful or invalid shall,
if possible, be construed in a manner which will give effect to the terms of such Section or part
of a Section to the fullest extent possible while remaining lawful and valid.

     15. Construction. The Restricted Stock Units are being issued pursuant to the Plan
and are subject to the terms of the Plan, the terms of which are incorporated herein by reference.
A copy of the Plan has been given to the Awardee, and additional copies of the Plan are available
upon request during normal business hours at the principal executive offices of the Company. To the
extent that any provision of this Agreement violates or is inconsistent with an express provision
of the Plan, the Plan provision shall govern and any inconsistent provision in this Agreement shall
be of no force or effect.

     16. Miscellaneous.

          (a) The Board may terminate, amend, or modify the Plan; provided, however, that no such
termination, amendment, or modification of the Plan may in any way adversely affect the
Participant’s rights under this Agreement, without the Participant’s written approval.

          (b) This Agreement shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required.

 

 

          (c) All obligations of the Company under the Plan and this Agreement, with respect to the
Restricted Stock Units, shall be binding on any successor to the Company, whether the existence of
such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise,
of all or substantially all of the business and/or assets of the Company.

          (d) By signing this Agreement, the Awardee acknowledges that his or her personal employment
information regarding participation in the Plan and information necessary to determine and pay, if
applicable, benefits under the Plan must be shared with other entities, including companies related
to the Company and persons responsible for certain acts in the administration of the Plan. By
signing this Agreement the Awardee consents to such transmission of personal data as the Company
believes is appropriate to administer the Plan.

          (e) To the extent not preempted by federal law, this Agreement shall be governed by, and
construed in accordance with, the laws of the State of California.

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

	 	 	 	 	 	 	 	 	 
	AWARDEE	 	 	 	AVANIR PHARMACEUTICALS	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

Signature

	 	 
	 	 	 	 

Name:
	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 

Print Nameexv10w41

 

Exhibit 10.41

SEPARATION AGREEMENT AND RELEASE OF CLAIMS

(Agreement provided to Employee November 7, 2006)

     If you choose to accept Avanir Pharmaceuticals (“The Company”) Severance Package, please sign
and return this Agreement to Theresa Hope-Reese, Vice President Human Resources, by no later than
5:00 p.m. on November 29th. You may scan and e-mail the signed Agreement to Theresa Hope-Reese at
THope-Reese@Avanir.com. and mail the original to her at The Company’s offices at 101 Enterprise,
Suite 300, Aliso Viejo, California 92656, telephone 949.389.6745.

RECITALS

     WHEREAS, Mr. Berg will conclude his employment with the Company, as described herein;

     WHEREAS, after the conclusion of Mr. Berg’s employment with the Company, Mr. Berg wishes to
serve as a consultant to the Company, and the Company wishes to retain Mr. Berg as a consultant;
and

     WHEREAS, each of the Parties to this Agreement desires an amicable separation of employment
and to resolve any and all claims, disputes, issues, or matters that were asserted or could be
asserted;

     NOW THEREFORE, in consideration of the promises, covenants and agreements set forth herein,
and subject to the terms and conditions set forth below, the Parties desire to, and hereby do,
agree as follows:

	 	1.	 	Mr. Berg’s employment with the Company will terminate effective
November 7, 2006 (the “Termination Date”);
	 
	 	2.	 	For a term of twelve (12) months following the Termination Date (the
“Consulting Period”), the Company will retain Mr. Berg and Mr. Berg agrees to
provide services as an independent contractor on the terms provided in the
independent contractor agreement attached hereto as Exhibit A. The Parties agree
that, concurrent with the signing of this Agreement, they will sign the independent
contract agreement that is attached hereto as Exhibit A.
	 
	 	3.	 	In exchange for agreeing to be bound by the terms of this Agreement and
the attached Consulting Agreement, the Company will provide Mr. Berg with the
following separation payments to which she/he otherwise would not be entitled:

	 	•	 	Thirty-nine (39) weeks of separation pay, calculated based on Berg’s current
base salary, less all the required withholdings and taxes.
	 
	 	•	 	If Berg chooses to elect continuation of coverage under federal law known as
COBRA, the Company will continue to pay his medical, dental and vision premium
through 31 August 2007, unless he becomes eligible for coverage

 

 

	 	 	 	under another group insurance plan before that date. Effective 01 September
2007, COBRA payments become Berg’s responsibility.
	 
	 	•	 	Outplacement benefits as approved and offered through Right Management
Consultants.

The payment described in this paragraph will become due fourteen (14) days after the
Effective Date of this Agreement, as defined herein, provided that Employee complies
with his obligations under Section (e) below.

     4. Release.

               4.1 Berg, for himself and his heirs, agents, assigns, executors, successors and each of them,
unconditionally, irrevocably and absolutely releases and discharges the Company, and any parent and
subsidiary corporations, divisions, and affiliated corporations, partnerships or other affiliated
entities of the Company, past and present, as well as the Company’s employees, officers, directors,
agents, predecessors, successors and assigns (collectively “Released Parties”), from all claims
related in any way to the transactions or occurrences between them to date, to the fullest extent
permitted by law, including, but not limited to, Berg’s employment with the Company, the
termination of his employment, and all other losses, liabilities, claims, demands and causes of
action, known or unknown, suspected or unsuspected, arising directly or indirectly out of or in any
way connected with Berg’s employment with the Company and the termination of that employment. This
release is intended to have the broadest possible application permitted by law and includes, but is
not limited to, any tort, contract, common law, constitutional or statutory claims and all claims
for attorneys’ fees, costs and expenses. Notwithstanding the foregoing, this release shall not
serve as a waiver of Berg’s rights to (i) vested benefits such as the Avanir Pharmaceuticals
Employee Savings and Protection Plan, (ii) workers compensation or unemployment benefits,
(iii) statutorily-required indemnification under California Labor Code Section 2802 or any
comparable provisions of other states’ laws, or (iv) any other benefits or claims that cannot be
released as a matter of law.

               4.2 Berg declares and represents that he intends this Agreement to be complete and not subject
to any claim of mistake, and that the release herein expresses a full and complete release and,
regardless of the adequacy or inadequacy of the consideration, the Parties intend the release to be
final and complete. The Parties execute this release with the full knowledge that this release
covers all possible claims against the Released Parties, to the fullest extent permitted by law.

     5. Acknowledgement of Understanding. Berg and The Company acknowledge that they may
discover facts or law different from, or in addition to, the facts or law that they know or believe
to be true with respect to the claims released in this Agreement and agree, nonetheless, that this
Agreement and the release contained in it shall be and remain effective in all respects
notwithstanding such different or additional facts or the discovery of them. Berg and The Company
expressly acknowledge and agree that Berg’s rights under Section 1542 of the California Civil Code
and any comparable provisions of other states’ and federal law are expressly waived. That section
provides:

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A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing
the release, which if known by him must have materially affected his
settlement with the debtor.

     6. Pursuit of Released Claims. Berg represents that, as of the date of this
Agreement, he has not filed any lawsuits, charges, complaints, petitions, claims or other
accusatory pleadings against Released Parties in any court or with any governmental agency. Berg
further agrees that, to the fullest extent permitted by law, he/she will not prosecute, nor allow
to be prosecuted on his behalf, in any court, whether state or federal, any claim or demand of any
type related to the matters released above, it being the intention of Berg that with the execution
of this release, Released Parties will be absolutely, unconditionally and forever discharged of and
from all obligations to or on behalf of Berg related in any way to the matters discharged herein.
Berg further represents that he has not assigned any claim he may have against Released Parties to
any other person or entity. Nothing in this Agreement limits Berg’s right to file a charge or
complaint with any state or federal agency or to participate or cooperate in such a matter, but
Berg acknowledges that he is not entitled to any other monies other than those payments described
in this Agreement.

     7. Return of Company Property. By signing this Agreement, Berg represents and
warrants that he will have returned to the Company on or before the Effective Date of this
Agreement, all Company property, including all originals and copies of documents removed from The
Company’s premises at any time during his employment with The Company. Berg will not be entitled
to the Severance Package described in Paragraph 3 herein unless and until all such property is
returned to The Company.

     8. Expense Reimbursement. By signing this Agreement, Berg agrees to submit all
outstanding reimbursements he incurred as an employee of the Company to the Company on or before
the Effective Date of this Agreement.

     9. Nondisparagement. Berg will not make any voluntary statements, written or verbal,
or cause or encourage others to make any such statements that defame, disparage or in any way
criticize the Company’s business reputation, practices or conduct.

     10. Arbitration of Disputes and Enforcement of Agreement.

               10.1 Berg and the Company agree to resolve any claims they may have against each other or that
Berg has with any other Released Party through final and binding arbitration. This agreement to
arbitrate applies to any and all disputes about the validity, interpretation, or effect of this
Agreement or alleged violations of it and whether a particular claim is covered by this Agreement
(“Arbitrable Claims”). Except as provided in Section (h)(3) below, arbitration shall be the
exclusive remedy for any such claim or dispute, and the parties expressly waive their rights to a
jury trial on any such claim or dispute. Arbitration shall be conducted through JAMS or, if JAMS
is not available, through another arbitration provider mutually acceptable to the parties.
However, either party may bring an action in court to compel arbitration under this Agreement or to
enforce an arbitration award. The Federal Arbitration Act shall govern the interpretation and
enforcement of this section. If a court or arbitrator finds the Federal

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Arbitration Act does not govern, then California law shall govern the interpretation and
enforcement of this section.

               10.2 In any arbitration, legal proceeding or other proceeding brought to enforce or interpret
the terms of this Agreement, the prevailing party shall be entitled to recover reasonable
attorneys’ fees and costs. In addition, should Berg or the Company attempt to resolve any claim
waived by this Agreement or pursue any Arbitrable Claim by any method other than arbitration
(except to the extent allowed in Section (h)(3) below) the responding party will be entitled to
recover from the initiating party all damages, costs, expenses, and attorneys’ fees incurred as a
result of that breach.

               10.3 The requirement to arbitrate disputes shall not preclude Berg from filing a charge or
with a state or federal government agency. However, Berg acknowledges that he is not entitled to
any other monies other than those payments described in this Agreement.

     11. Older Workers’ Benefit Protection Act. This Agreement is intended to satisfy the
requirements of the Older Workers’ Benefit Protection Act, 29 U.S.C. sec. 626(f). The following
general provisions, along with the other provisions of this Agreement, are agreed to for this
purpose:

               11.1 Berg acknowledges and agrees that he has read and understands the terms of this
Agreement.

               11.2 Berg acknowledges that this Agreement advises him in writing that he may consult with an
attorney before executing this Agreement, and that he has obtained and considered such legal
counsel as he deems necessary, such that he is entering into this Agreement freely, knowingly and
voluntarily.

               11.3 Berg acknowledges that he has been given at least twenty-one (21) days in which to
consider whether or not to enter into this Agreement. Berg understands that, at his option, he may
elect not to use the full twenty-one (21) day period.

               11.4 Berg shall have seven (7) days after signing this Agreement to revoke this Agreement.
This Agreement will not become effective until the expiration of the revocation period. Berg’s
revocation of this Agreement must be in writing and received by Theresa Hope-Reese, Vice President
Human Resources, no later than 5:00 p.m. on the seventh day in order to be effective. If Employee
does not revoke acceptance within the seven (7) day period, this Agreement will become fully
effective and enforceable on the eighth day after the Agreement is signed (the “Effective Date”).

               11.5 Berg does not waive or release any rights or claims that he may have under the Age
Discrimination in Employment Act that arise after the execution of this Agreement. Berg is not
waiving his right to file a complaint or charge with the EEOC (including a challenge to the
validity of this Agreement) or participate in any investigation or proceeding conducted by the
EEOC.

     12. Miscellaneous. This Agreement and the exhibit hereto sets forth the entire
agreement between Berg and the Company pertaining to the subject matter of this Agreement.

4

 

This Agreement may not be modified or canceled in any manner except by a writing signed by
both Berg and an authorized Company official. Berg acknowledges that the Company has made no
representations or promises to him, other than those in this Agreement. If any provision in this
Agreement is found to be unenforceable, that provision will be enforced to the greatest extent
permitted by law and all other provisions will remain fully enforceable. This Agreement binds the
Parties and their heirs, administrators, representatives, executors, successors, and assigns. This
Agreement shall be construed as a whole according to its fair meaning. It shall not be construed
strictly for or against Berg or the Released Parties. Unless the context indicates otherwise, the
term “or” shall be deemed to include the term “and” and the singular or plural number shall be
deemed to include the other. This Agreement shall be governed by the law of the State of
California, excluding its laws relating to the choice of laws.

     13. Counterparts. This Agreement may be executed by facsimile or facsimile signature,
and in separate counterparts, each of which shall be deemed an original but all of which, when
taken together, shall constitute one and the same instrument.

     Please read this Agreement and carefully consider all of its provisions before signing it.
This Agreement includes a release of known and unknown claims. This Agreement also includes an
arbitration clause in which both parties waive any rights they may have to trial by jury with
regard to arbitrable claims. If you wish, you should take advantage of the twenty-one (21) day
consideration period provided by this Agreement and consult your attorney.

	 	 	 	 	 	 	 	 	 
	Date

	 	11/28/2006
	 	 
	 	     /s/ James E. Berg
	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Employee	 	 
	 
	 	 	 	 	 	 	 	 
	Date

	 	07 Nov 06
	 	 	 	     /s/
Theresa Hope-Reese	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Company	 	 

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EXHIBIT A

TO SEPARATION AGREEMENT AND RELEASE OF CLAIMS

INDEPENDENT CONTRACTOR AGREEMENT

07 November 2006

     This Independent Contractor Agreement (“Agreement”) is entered into by and between Avanir
Pharmaceuticals, a California corporation (“Avanir” or the “Company”), and James E. Berg
(collectively referred to as the “Parties”).

     WHEREAS, Mr. Berg will terminate his employment with Avanir, as described in the Separation
Agreement and Release entered into by Mr. Berg and Avanir (the “Separation Agreement”);

     WHEREAS, after the conclusion of Mr. Berg’s employment with Avanir, Mr. Berg wishes to serve
as a consultant to Avanir, and Avanir wishes to retain Mr. Berg as a consultant; and

     WHEREAS, each of the Parties to this Agreement desires, through a release of claims, to
resolve any and all claims, disputes, issues, or matters that were asserted or could have been
asserted or could be asserted.

     NOW, THEREFORE, in consideration of the mutual promises made herein, the Parties hereby agree
as follows:

     1. Consultancy. Mr. Berg shall serve as a consultant to the Company for a twelve
(12)-month period commencing on the date Mr. Berg’s employment with Avanir concludes pursuant to
the Separation Agreement and concluding twelve (12) months thereafter (“Consulting Period”).

     2. Scope of Work. During the Consulting Period, Mr. Berg agrees to make himself
available at reasonable times and places to perform consulting services as requested by the
Company. Such services include, but are not limited to, providing advice and assistance regarding
special projects, conference appearances or any other matter consistent with Mr. Berg’s background,
skills and experience, as requested by the Chief Executive Officer of Avanir. Mr. Berg further
agrees that during the Consulting Period he will make himself available and use his best efforts in
the transition of his former duties to designated representatives or employees of the Company.
Such efforts include, but are not limited to, providing corporate records, files and other
materials. Except as otherwise requested by the Company, Mr. Berg shall not perform his duties on
the Company’s premises, nor will he be provided with use of the Company’s telephones, voice-mail,
e-mail, internet or other Company property.

     3. Consulting Fee. As compensation for providing consulting services during the
Consulting Period, Mr. Berg will receive a $105.30 per hour of consulting service provided. If
Avanir terminates Mr. Berg’s consultancy prior to the expiration of the Consulting Period,

 

 

Avanir will continue to pay Mr. Berg any unpaid portion in accordance with the payment
schedule set forth above. Notwithstanding the preceding sentence or any other provision of this
Agreement, Avanir may terminate Mr. Berg’s consultancy and not make any further payments to
Mr. Berg should Mr. Berg violate any provision of this Agreement, including but not limited to the
provisions of Section 5, below. The Company shall reimburse Mr. Berg for reasonable expenses
incurred on behalf of the Company during the Consulting Period, provided that such expenses are
approved in advance and substantiated in accordance with Company policies.

     4. Benefits. As an independent contractor, Mr. Berg is not entitled to any Company
employee benefits, other than as outlined in the Separation Agreement and Release of Claims.

     5. Noncompetition. During the Consulting Period, Mr. Berg may engage in other
employment, consulting or businesses, provided such activity does not preclude him from making
himself reasonably available to provide consulting services to the Company as provided above.

     6. Nonsolicitation. Through 08 August 2007, Mr. Berg will not either directly or
indirectly solicit, induce, recruit or encourage any of the Company’s employees or consultants to
terminate their relationship with the Company, or attempt to solicit, induce, recruit, encourage or
take away employees or consultants of the Company, either for himself or for any other person or
entity.

     7. Confidential Information. Mr. Berg understands and agrees that his obligations to
the Company under the Employee Invention Assignment, Patent and Confidential Information Agreement
entered into between Mr. Berg and the Company on 07 April 1999 (the “Proprietary Agreement”) shall
continue through the Consulting Period and shall survive the termination of his relationship with
the Company under this Agreement.

     8. Breach of this Agreement. Mr. Berg acknowledges that upon his material breach of
any provision of this Agreement or the Proprietary Agreement, the Company would sustain irreparable
harm from such breach, and, therefore, Mr. Berg agrees that in addition to any other remedies which
the Company may have under this Agreement, the Proprietary Agreement or otherwise, the Company
shall be entitled to obtain equitable relief (without the posting of a bond) including specific
performance, injunctions and restraining Mr. Berg from committing or continuing any such violation
of this Agreement or the Proprietary Agreement.

     9. Independent Contractor Status. In performance of services under this Agreement,
Mr. Berg will be an independent contractor of, and is not an agent or employee of, and has no
authority to bind, the Company by contract or otherwise.

     10. Employment Taxes. Mr. Berg agrees that he shall report as self-employment income
all compensation he receives pursuant to this Agreement and is solely responsible for any taxes,
withholdings and similar statutory obligations. Mr. Berg will indemnify the Company and its
officers, directors, shareholders and employees and agents and will hold it and them harmless from
any and all claims made by any entity on account of an actual or alleged failure by Mr. Berg to
satisfy any such tax or withholding obligations.

2

 

     11. Authority. The Company represents and warrants that the undersigned has the
authority to act on behalf of the Company and to bind the Company and all who may claim through it
to the terms and conditions of this Agreement. Mr. Berg represents and warrants that he has the
capacity to act on his own behalf and on behalf of all whom might claim through him to bind them to
the terms and conditions of this Agreement. Each Party warrants and represents that there are no
liens or claims of lien or assignments in law or equity or otherwise of or against any of the
claims or causes of action released herein.

     12. No Representations. Neither Party has relied upon any representations or
statements made by the other Party hereto which are not specifically set forth in this Agreement
the Separation Agreement or the Proprietary Agreement.

     13. Severability. In the event that any provision hereof becomes or is declared by a
court or other tribunal of competent jurisdiction to be illegal, unenforceable or void, this
Agreement shall continue in full force and effect, and any such provision will be limited or
eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full
force and effect and enforceable.

     14. Entire Agreement. This Agreement, and the exhibit hereto, represent the entire
agreement and understanding between the Company and Mr. Berg concerning his consultancy with the
Company, and supersede and replace any and all prior agreements and understandings concerning
Mr. Berg’s relationship with the Company and his compensation by the Company, with the exception of
the Proprietary Agreement and the Separation Agreement. To the extent any provision of the
Proprietary Agreement may conflict with any provision of this Agreement or the Separation
Agreement, this Agreement and the Separation Agreement shall prevail.

     15. No Oral Modification. This Agreement may only be amended in a writing signed by
Mr. Berg and the Company.

     16. Governing Law. This Agreement shall be governed by the laws of the State of
California, without regard to its conflicts of law provisions.

     17. Effective Date. This Agreement shall he effective upon the Effective Date as
defined in the Separation Agreement and Release of Claims to which this Agreement is an exhibit.

     18. Counterparts. This Agreement may be executed in counterparts, and each
counterpart shall have the same force and effect as an original and shall constitute an effective,
binding agreement on the part of each of the undersigned.

     19. Assignment. This Agreement may not be assigned by Mr. Berg or the Company without
the prior written consent of the Company. Notwithstanding the foregoing, this Agreement may be
assigned by the Company to a corporation controlling, controlled by or under common control with
the Company without the consent of Mr. Berg.

     20. Voluntary Execution of Agreement. This Agreement is executed voluntarily and
without any duress or undue influence on the part or behalf of the Parties hereto, with the full
intent of releasing all claims. The Parties acknowledge that:

3

 

               a. they have read this Agreement;

               b. they have been represented in the preparation, negotiation, and execution of this Agreement
by legal counsel of their own choice or that they have voluntarily declined to seek such counsel;

               c. they understand the terms and consequences of this Agreement and of the releases it
contains; and

               d. they are fully aware of the legal and binding effect of this Agreement.

     IN WITNESS WHEREOF, each of the Parties has executed this Agreement, in the case of the
Company by its duly authorized officer as of the day and year first written above.

	 	 	 	 	 	 	 
	 	 	AVANIR PHARMACEUTICALS	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	Theresa Hope-Reese 07 Nov 06	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Theresa Hope-Reese	 	 
	 
	 	 	 	 	 	 
	 	 	JAMES E. BERG, an individual	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	James E. Berg                               	 	 
	 	 	 	 	 
	 	 	James E. Berg	 	 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]