Document:

exv10w45

 

EXHIBIT 10.45

SEPARATION AGREEMENT AND RELEASE

     THIS SEPARATION AGREEMENT AND RELEASE (this “Agreement”) is entered into by and between
Questcor Pharmaceuticals, Inc. (“Questcor” or the “Company”) and R. Jerald Beers (“Employee”),
collectively (the “Parties”), effective as of March 3, 2005 (the “Date of this Agreement”).

     WHEREAS, Employee is employed by the Company; and

     WHEREAS, Employee and the Company desire to terminate the employment relationship on mutually
agreed terms.

     For and in consideration of the foregoing recitals and the mutual covenants and agreements set
forth herein, the Company and Employee agree as follows:

     1.       Termination of Employment. Employee’s employment with the Company is hereby
terminated effective as of March 3, 2005 (the “Date of Termination”). Employee understands that
they are giving up any right or claim to continuing or future employment with the Company and any
benefits or compensation therefrom.

     2.       Compensation and Accrued Vacation. The Company shall pay Employee the sum of: (i)
unpaid salary earned by Employee in the amount of $2,711.44 (two thousand seven hundred eleven
dollars and forty-four cents), less tax withholding required by law and any additional applicable
withholdings or deductions; and (ii) accrued vacation in the amount of $9,557.81 (nine thousand
five hundred fifty-seven dollars and eighty-one cents), less tax withholding required by law and
any additional applicable withholdings or deductions. Except as set forth herein, Employee
acknowledges that she has received all compensation and benefits to which he is entitled through
the Date of Termination.

     3.       Severance Payment to Employee and Continuation of Benefits.

               a.       On the Release Effective Date (defined in paragraph 4(c)(6)), or as soon thereafter as
administratively practicable, the Company will pay to Employee a severance benefit, at their last
effective rate of pay, made on the Company’s regular payroll dates (the “Severance Payments”),
consistent with the Company’s then current payroll practice, for a period of six months (the
“Severance Period”) following the date of termination. The first Severance Payment will be made to
the Employee on the first regular payroll date following the Release Effective Date. Any payment
made to Employee in accordance with this Section 3 shall be made only to the extent the General
Release set forth in Section 4 becomes irrevocable in accordance with Section 4(c)(6).

               b.       Employee will be entitled to continuation of medical, dental and vision insurance, if he
timely elects to continue coverage under COBRA. If Employee timely elects to continue coverage
under COBRA, the Company will pay the medical, dental and vision insurance premiums for a period equal to that of the severance
period. Employee will not accrue

 

 

any additional benefits, including but not limited to, vacation,
holiday pay or stock option vesting during the Severance Period.

     4.       Release of the Company.

               a.       General Release. Employee hereby releases and forever discharges the Company, its
parents, subsidiaries, affiliates, and their respective representatives, predecessors, successors,
assigns, shareholders, members, partners, officers, directors, employees, accountants, insurers,
lawyers, agents and all persons acting in concert with them (the “Company Releasees”), of and from
any and all manner of action or actions, causes or causes of action, in law or in equity, suits,
debts, liens, contracts, agreements, promises, liabilities, claims, demands, damages, losses, costs
or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called
“Claims”), which he 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 the Date of this Agreement
except as expressly provided herein. The Claims released hereunder include, without limitation,
any alleged breach of any employment agreement; any alleged breach of any covenant of good faith
and fair dealing, express or implied; any alleged torts or other alleged legal restrictions
relating to Employee’s employment 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 Federal Age Discrimination in Employment Act, the Americans
with Disabilities Act, and the California Fair Employment and Housing Act, and the California Labor
Code, which concern his employment or termination thereof. This General Release shall not apply to
Employee’s right to receive the benefits provided for in this Agreement; or rights to 401(k) plan
and/or employee welfare benefits that have vested and accrued prior to the Date of Termination.

               b.       Release of Unknown Claims.

     EMPLOYEE ACKNOWLEDGES THAT HE IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION
1542, WHICH PROVIDES AS FOLLOWS:

“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.”

EMPLOYEE BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY HAVE
THEREUNDER AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

               c.       Release of Age Discrimination Claims. Employee agrees and expressly acknowledges
that this General Release includes a waiver and release of all claims that Employee has or may have
under the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621, et seq. (“ADEA”). The
following terms and conditions apply to and are part of the waiver and release of the ADEA claims
under this Agreement:

                         (1)       That this section and this Agreement are written in a manner calculated to be understood
by Employee.

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

                         (3)       This Agreement provides for consideration in addition to anything of value to which
Employee is already entitled.

                         (4)       Employee is advised to consult an attorney before signing this Agreement.

                         (5)       Employee is granted forty-five (45) days after Employee is presented with this Agreement
to decide whether or not to sign this Agreement. If Employee executes this Agreement prior to the
expiration of such period, Employee does so voluntarily and after having had the opportunity to
consult with an attorney.

                         (6)       Employee may revoke this Agreement within seven (7) days of execution of the Agreement by
Employee. Unless revoked by Employee, this General Release shall become irrevocable upon the
expiration of such 7-day period (“Release Effective Date”). In the event of such a revocation,
Employee shall not be entitled to the consideration for this General Release set forth in Sections
3 and 4.

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

               e.       No Suits or Actions. Employee has not filed any claims, actions or charges against
the Company Releasees. Employee agrees that if he 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 he will pay to the Company Releasees, in addition to any other damages
caused thereby, all attorneys’ fees incurred by the Company Releasees in defending or otherwise
responding to said suit or Claim; provided, however, that the requirement of payment of fees and/or
damages shall not apply to claims or a challenge to the release of claims under the Age
Discrimination in Employment Act.

     5.       Terminated Agreements. The offer of employment letter dated September 2, 2003
entered into between the employee and the Company (the
“Terminated Agreement”), is hereby terminated in its entirety and the obligations of the
Parties thereunder are hereby terminated. Employee waives any and all rights, claims, benefits and
awards under the Terminated Agreement and releases the Company from liability for any and all
rights, claims, benefits or awards due Employee thereunder. Employee further acknowledges and
agrees that the Terminated Agreement shall have no further force and effect.

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     6.       Confidentiality of the Agreement. The Parties and their respective agents,
representatives, shareholders, officers, directors, attorneys, employees, assigns, subsidiaries,
affiliates, related companies, parent companies, partners, partnerships, insurers, and predecessor
or successor companies shall maintain in strict confidence and shall not disclose the contents of
this Agreement (including the consideration received hereunder). Notwithstanding the foregoing,
such information may be disclosed by a party (a) in a legal action or proceeding to prove,
interpret, or enforce this Agreement; (b) by order of a court of competent jurisdiction; and (c) to
its own employees, outside accountants, financial advisors, lawyers, lenders, potential lenders,
insurers, or shareholders and taxing authorities to the extent necessary to permit such individuals
or entities to perform required tax, accounting, insurance, financial, legal, or administrative
tasks or services.

     7.       Surviving Agreements. Nothing contained in this Agreement is intended to or shall be
construed to release or waive any rights of the parties under any agreement restricting
solicitations of customers or employees of the Company, or concerning the intellectual property of
the Company.

     8.       No Admission. Employee further understands and agrees that neither the payment of
money nor the execution of this Agreement shall constitute or be construed as an admission of any
liability whatsoever by the Company Releasees.

     9.       Acknowledgment. Employee represents and warrants that he has read this Agreement,
that Employee has had adequate time to consider it; understands the meaning and application of this
Agreement; and has signed this Agreement knowingly, voluntarily and of his own free will with the
intent of being bound by it.

     10.       Severability; Modification of Agreement. If any provision of this Agreement shall
be found invalid or unenforceable in whole or in part, then such provisions shall be deemed to be
modified or restricted to the extent and in the manner necessary to render the same valid and
enforceable or shall be deemed excised from this Agreement as such circumstances may require, and
this Agreement shall be construed and enforced to the maximum extent permitted by law as if such
provision had been originally incorporated herein as so modified or restricted or as if such
provision had not been originally incorporated herein, as the case may be.

     11.       Return of Company Property. On or before the Date of this Agreement, Employee
shall return all Company property in his possession.

     12.       No Solicitation. For a period of twelve (12) months after the Date of this
Agreement, Employee shall not solicit, induce or encourage any of the Company’s employees, agents,
independent contractors or consultants to end their relationship with the Company, or recruit, hire
or otherwise induce any such person to perform services for Employee, or any other person, firm or
company.

     13.       No Disparagement. The Parties shall not make any disparaging or derogatory
comments concerning each other. The Parties shall further refrain from making any derogatory or
disparaging comments toward other Company employees, consultants or independent contractors.

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     14.       Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto and their respective successors and assigns.
Notwithstanding the foregoing, neither this Agreement nor any rights hereunder may be assigned to
any party by the Company or Employee without the prior written consent of the other party hereto.

     15.       Headings. The headings in this Agreement are for convenience only, and shall not
be given any affect in the interpretation of this Agreement.

     16.       Waiver. No waiver of any provision of this Agreement shall be valid unless it is
in writing and signed by the party against whom the waiver is sought to be enforced. The failure of
a party to insist upon strict performance of any provision of this Agreement in anyone or more
instances shall not be construed as a waiver or relinquishment of the right to insist upon strict
compliance with such provision in the future.

     17.       Entire Agreement; No Oral Modification. This is the entire agreement between the
parties with respect to the subject matter hereof. Employee represents and warrants that no
promise or inducement has been offered or made except as set forth herein and that the
consideration stated herein is the sole consideration for this Agreement. Any other promises,
written or oral, are replaced by the provisions of this document, and are no longer effective
unless they are contained in this document. This Agreement may not be modified other than in a
writing executed by both parties and stating its intent to modify or supersede this Agreement.

     18.       Choice of Law. The parties agree that this Agreement shall be construed and
enforced in accordance with the laws of the State of California without regard to the conflict of
laws provisions thereof.

     19.       Arbitration. Any dispute or controversy arising under or in connection with this
agreement shall be determined at the option of either party by binding arbitration in the County of
Alameda, California, in accordance with the rules of the American Arbitration Association then in
effect; provided, however, that to the extent such rules conflict with applicable law as to the
requirements to enforce this arbitration agreement, that shall be read to conform to applicable law
to the extent required for enforcement of this arbitration agreement. The Arbitrator may award
costs and fees in accordance with applicable law, however, in no event shall Employee be required
to incur any costs unique to arbitration. The Arbitrator’s Award shall be in writing. Judgement
may be entered on the arbitrator’s award in any court having jurisdiction. The parties hereby
waive any right to a jury trial as to any claim subject to this arbitration provision.

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20.       Counterparts; Fax Signatures. This Agreement may be executed in counterparts. The
parties may execute faxed copies of this Agreement, and faxed signatures may be relied upon by
either party.

	 	 	 
	R. Jerald Beers

	 	Questcor Pharmaceuticals, Inc.
	 
	 	 
	 /s/ R. JERALD BEERS

	 	By: /s/ FREDRIC I. STORCH
	 
	 	 
	Date: March 26, 2005

	 	Title: Sr. Director, Human Resources & Administration
	 
	 	 
	

	 	Date: March 28, 2005

6exv10w46

 

Exhibit 10.46

QUESTCOR PHARMACEUTICALS, INC.

SERIES B PREFERRED SHAREHOLDER AGREEMENT AND WAIVER

     This Series B Preferred Shareholder Agreement and Waiver (this “Agreement”) is executed as of
March 29, 2005 by Questcor Pharmaceuticals, Inc., a California corporation (the “Company”), and the
undersigned shareholders of the Company, being all of the holders of the outstanding shares of
Series B Preferred Stock of the Company. Capitalized terms used and not defined herein shall have
the meanings set forth in that certain Certificate of Determination of Series B Convertible
Preferred Stock of the Company (the “Series B Certificate of Determination”).

     The Company and the undersigned agree to the following:

     1. For the period up to, but not including, March 31, 2006, each of the holders of the Series
B Preferred Stock waives all rights under the Series B Certificate of Determination arising out of
any Additional Dividend Event pursuant to clause (9) or clause (10) of the definition of Additional
Dividend Event.

     2. Each holder of Series B Preferred Stock agrees that, with respect to dividends payable on
April 1, 2005, July 1, 2005, October 1, 2005 and January 1, 2006, it shall accept as full and
complete payment of all such dividend payments the issuance by the Company to them in a private
placement of shares of the Company’s common stock having an aggregate value equal to the dividends
otherwise payable on those dates. The Company shall issue such shares to the holders within three
business days of the date hereof. The shares of common stock so issued shall be valued at fair
market value based upon a ten-day weighted average trading price formula through the date hereof.

     3. The expiration date of the Warrants to purchase common stock held by the undersigned
holders of, and acquired in connection with the issuance of, the Series B Preferred Stock shall be
extended for one year, until January 15, 2008.

     4. Each of the undersigned shareholders hereby represents and warrants to the Company that (i)
it has not sold, transferred or otherwise conveyed any shares of Series B Preferred Stock through
the date hereof and (ii) the representations and warranties contained in Section 3 of their
respective Subscription Agreement continue to be accurate and correct as of the date hereof and
shall apply in full force and effect as though made with respect to the shares of Company common
stock referenced in Section 2 above. Each of the undersigned shareholders hereby agrees that it
may transfer its shares of Series B Preferred Stock only if it transfers such shares to a
transferee that agrees in writing to be bound by the terms of this Agreement.

     5. Except as expressly set forth herein, the agreements and waivers contained in this
Agreement shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise
affect the rights and remedies of the holders of the Series B Preferred Stock, and shall not alter,
modify, amend or in any way affect any of the terms, conditions, obligations, covenants

 

 

or agreements contained in the Series B Certificate of Determination, the Subscription
Agreements and the Warrants, all of which shall continue in full force and effect.

     6. The agreements and waivers contained in this Agreement shall become effective upon the
occurrence of all of the following: the execution of this Agreement by the Company and all of the
holders of record of outstanding shares of Series B Preferred Stock and the delivery by the Company
of copies of this Agreement as so executed to each of the undersigned shareholders.

     7. This Agreement may be executed in one or more counterparts, each of which shall for all
purposes be deemed to be an original and all of which shall constitute the same instrument.

[Signatures Follow]

-2-

 

     IN WITNESS THEREOF, the Company and the undersigned shareholders have executed this Series B
Preferred Shareholder Agreement and Waiver as of the date set forth above.

	 	 	 	 	 
	 	 	QUESTCOR PHARMACEUTICALS, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ JAMES L. FARES
	

	 	 	 	 
	

	 	 	 	Name: James L. Fares

Its: President and Chief Executive Officer
	 
	 	 	 	 
	 	 	SHAREHOLDERS:
	 
	 	 	 	 
	 	 	DELTA OPPORTUNITY FUND, LTD.
	 
	 	 	 	 
	

	 	 	 	By: Diaz & Altschul Advisors, LLC, as

Investment Advisor
	 
	 	 	 	 
	

	 	 	 	By: /s/ ARTHUR G. ALTSCHUL, JR.
	

	 	 	 	 
	

	 	 	 	Name: Arthur G. Altschul, Jr.

Title: Managing Member
	 
	 	 	 	 
	 	 	DELTA OPPORTUNITY FUND

	 	 	(INSTITUTIONAL), LLC
	 
	 	 	 	 
	

	 	 	 	By: Diaz & Altschul Management, LLC, its

Managing Member
	 
	 	 	 	 
	

	 	 	 	By: /s/ ARTHUR G. ALTSCHUL, JR.
	

	 	 	 	 
	

	 	 	 	Name: Arthur G. Altschul, Jr.

Title: Managing Member
	 
	 	 	 	 
	 	 	CORPORATE OPPORTUNITIES FUND, L.P.
	 
	 	 	 	 
	

	 	 	 	By: SMM Corporate Management, LLC, its

General Partner
	 
	 	 	 	 
	

	 	 	 	By: /s/ JAMES C. GALE
	

	 	 	 	 
	

	 	 	 	Name: James C. Gale

Title: Chief Investment Dealer

 

 

	 	 	 	 	 
	 	 	CORPORATE OPPORTUNITIES FUND

	 	 	(INSTITUTIONAL), L.P.
	 
	 	 	 	 
	

	 	 	 	By: SMM Corporate Management, LLC, its

General Partner
	 
	 	 	 	 
	

	 	 	 	By: /s/ JAMES C. GALE
	

	 	 	 	 
	

	 	 	 	Name: James C. Gale

Title: Chief Investment Dealer
	 
	 	 	 	 
	 	 	MONTREUX EQUITY PARTNERS II SBIC, L.P.
	 
	 	 	 	 
	

	 	 	 	By: Montreux Equity Management II SBIC,

L.P., its General Partner
	 
	 	 	 	 
	

	 	 	 	By: /s/ DANIEL K. TURNER, III
	

	 	 	 	 
	

	 	 	 	Name: Daniel K. Turner, III

Title: Managing Member

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