Document:

exv10w41

Exhibit 10.41

December 17, 2008

Rajiv De Silva

Dear Rajiv:

Congratulations! I am pleased to have you join the team at Valeant Pharmaceuticals International
(the “Company”).

This letter outlines the details of your employment and your Valeant assignment, which was
contingent upon your successful completion of a pre-employment drug screen and background
investigation.

	•	 	Title: Chief Operating Officer of Specialty Pharmaceuticals; you will report to
the Chief Executive Officer.
	 
	•	 	Base Salary: $35,416.67 per month ($425,000 annualized).
	 
	•	 	Starting date: January 5, 2009.
	 
	•	 	Relocation Benefits: You will be eligible for relocation benefits in accordance
with the generally applicable terms and conditions of the relocation policy available to
senior executives of the Company; provided that, at a minimum, for a period of six months
following your commencement date, you will be reimbursed for your costs of commuting between
the Company’s offices and your home in Boston, MA.
	 
	•	 	Sign-On Bonus: You have received, or will receive, a sign-on bonus of $500,000 on
or before February 5, 2009; provided, however, if you voluntarily terminate your employment,
other than for Good Reason, prior to January 5, 2010 (or you are terminated for Cause within
such period), you will be required to repay to the Company a pro rata portion of such bonus
determined by multiplying $500,000 times the quotient obtained by dividing (a) the difference
obtained by subtracting the number of days employed from 365; by (b) 365.
	 
	•	 	Salary Adjustments: You will be eligible for participation in our Merit Increase
Program, based on performance, for the period beginning April 1, 2010. This policy is subject
to change as approved by the Compensation Committee of the Valeant Board of Directors.
	 
	•	 	Annual Incentive: You will be eligible to participate in Valeant’s management
bonus plan beginning in the 2009 calendar year. Your target bonus will be 60%, with the
potential of 120% of your base pay. This plan, and therefore your participation, is subject
to change at the discretion of the Board of Directors. Bonuses are payable at the time the
other management bonuses are paid. To be eligible for any bonus payment, you must be employed
by the Company on the day in which the applicable bonus is paid to other members of Valeant management. Notwithstanding the foregoing, you shall

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Rajiv De Silva

December 17, 2008

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	 	 	be guaranteed to participate in the 2009 bonus program at the target level ($255,000), if you
remain with the Company until the date that 2009 bonuses are paid in 2010. In the event you
join Valeant on or after April 1, 2009, such amount will be prorated for your period of
employment for 2009. Such bonus guarantee is a minimum and does not limit the Company from
paying additional bonus under the program.
	 
	•	 	Equity Awards: As indicated in the employment terms provided to by you by the
Company’s Chief Executive Officer, subject to the approval of the Compensation Committee of
the Company’s Board of Directors, you will receive the following equity on the later of the
date of such approval or your first day of employment with the Company or one of its
affiliates (such later date, the “Grant Date”):

	 	o 	 	 2009 RSU Grant: You shall be granted that whole number of restricted share
units under the Company’s 2006 equity incentive plan (the “2006 Plan”) with a value equal
to the quotient obtained by dividing $350,000 by the Per Share Price (as defined below) on
the Grant Date (the “2009 RSU Grant”). The 2009 RSU Grant shall vest over a three-year
period from the Grant Date of the 2009 RSU Grant (33-1/3% per year on the anniversary of
the grant date), provided you are employed on the relevant vesting date. If your
employment is terminated by the Company without Cause or by you for Good Reason, either in
contemplation of a Change in Control or at any time within twelve (12) months following a
Change in Control, or if your employment is terminated by the Company at any time for
Disability or by reason of your death, then, your RSU’s shall immediately vest and be
settled in shares as soon as practicable (but not more than 60 days) thereafter.
	 
	 	o	 	Stock Options — You shall be granted options to acquire a whole number of
shares of the Company common stock with a Black-Scholes value equal to $900,000 as of the
Grant Date (the “Options”). For purposes of the preceding sentence, the Black-Scholes
value shall be established by the Company in accordance with its prior practices with
respect to the valuation of stock option grants for granting purposes; provided that the
value of the stock shall be determined for this purpose based on the Per Share Price on the
Grant Date. The exercise price of the Options will be priced at the fair market value at
the close of business on the Grant Date. The Options will vest over a four-year period
from the grant date of the Options (25% per year on the anniversary of the grant date) and
shall have a term of ten (10) years. If your employment is terminated by the Company
without Cause or by you for Good Reason, either in contemplation of a Change in Control or
at any time within twelve (12) months following a Change in Control, then any Option that
is not cancelled in connection with the Change in Control in exchange for cash payment will
vest on the termination date and shall remain exercisable for one year following the
termination date (but in no event beyond the 10-year term of the Option). If your
employment is terminated by the Company for Disability or by reason of your death, any
Option outstanding shall vest in full and remain exercisable following the termination date
(but in no event beyond the 10-year term of the Option).
	 
	 	o 	 	 Performance Restricted Share Units. You will also receive such number of
performance-based restricted stock units under the 2006 Plan (the “Performance Share
Units”) with a value equal to the quotient obtained by dividing $1,075,000 by the Per Share
Price on the Grant Date (such number of Performance Share Units, the “2009 Performance
Units”), which shall vest as follows, provided that, in all events, you are continually
employed by the Company through and including the 3 year anniversary of Grant Date:

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Rajiv De Silva

December 17, 2008

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	 	1.	 	If at January 5, 2012 (the “First Measurement Date), the Adjusted Share Price
(as defined below) equals the Single Vesting Share Price (as defined below), you shall
vest in 100% of the 2009 Performance Units (1 x the 2009 Performance Units).
	 
	 	2.	 	If at the First Measurement Date the Adjusted Share Price equals the Double
Vesting Share Price (as defined below), you shall vest in 200% of the 2009 Performance
Units (2 x the 2009 Performance Units).
	 
	 	3.	 	If at the First Measurement Date the Adjusted Share Price equals the Triple
Vesting Share Price (as defined below) you shall vest in 300% of the 2009 Performance
Units (3 x the 2009 Performance Units).
	 
	 	4.	 	Performance Share Units that could have been earned under any of subclauses 1,
2, or 3 above that are not earned on the First Measurement Date may be earned on
January 5, 2013 (the “Second Measurement Date”), subject to your continued employment
through that date, based upon the Adjusted Share Price on such Second Measurement Date.
	 
	 	5.	 	If the Adjusted Share Price on a measurement date is between the Single Vesting
Share Price and the Double Vesting Share Price or is between the Double Vesting Share
Price and the Triple Vesting Share Price, you shall vest in, and the Company shall
deliver, a number of Performance Share Units that is the mathematical interpolation
between the number of shares which would vest at defined ends of the spectrum.
	 
	 	6.	 	The Company shall distribute to you a number of shares of its common stock
equal to the number of Performance Shares Units that become vested as soon as
practicable (but in any event no later than 45 days) following the vesting date of such
Performance Shares Units. You shall not be permitted to sell, assign, transfer, or
otherwise dispose of more than fifty percent (50%) of the Net Shares (as defined below)
acquired upon settlement of the Performance Share Units until the expiration of the
two-year period following receipt, or, if sooner, until a Change in Control or until
you experience a termination of employment. For purposes of this letter, Net Shares
shall mean the net number of shares acquired by you upon settlement of the Performance
Share Units after subtracting any such shares withheld by the Company in payment of
withholding obligations applicable to such settlement.
	 
	 	7.	 	In the event of the occurrence of a Change in Control or termination of your
employment by death or Disability, the performance measures applicable to the
Performance Share Units will be applied as though the date of the Change in Control, or
employment termination date, as applicable, were the end of the measurement period,
with the number of units calculated in a manner consistent with the vesting schedule
described above (e.g., in the event of a Change in Control occurs or your employment is
terminated by death or Disability prior to the First Measurement Date, 100% will vest
at the date of such termination if the Adjusted Share Price is the Single Vesting Share
Price; 200% will vest if the Adjusted Share Price is the Double Vesting Share Price;
and 300% will vest if the Adjusted Share Price is the Triple Vesting Share Price; and
if the Adjusted Share Price on such measurement date is between the Single Vesting
Share Price and the Double Vesting Share Price or is between the Double Vesting Share
Price and the Triple Vesting Share Price, you shall vest in, and the Company
shall deliver, a number of Performance Share Units that is the mathematical interpolation
between the number of shares which would vest at defined ends of the spectrum).

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Rajiv De Silva

December 17, 2008

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“Adjusted Share Price” means the sum of (i) the average closing prices of a share for the twenty
trading days prior the applicable measurement date (the “Per Share Price”), and (ii) the value
that would be derived from the number of shares (including fractions thereof) that would have
been purchased had an amount equal to each dividend paid on a share of common stock after the
Grant Date and on or prior to the applicable measurement date been deemed invested on the
dividend payment date, based on the closing price of the common stock on such dividend payment
date.

“Single Vesting Share Price,” “Double Vesting Share Price,” and “Triple Vesting Share
Price” mean the Adjusted Share Prices equal to a compound annual share price
appreciation (the “Annual Compound TSR”) of 15%, 30% and 45%, respectively, as
measured between the Per Share Price on the Grant Date and the applicable measurement
date.

Grant Notices and Grant Agreements shall be prepared consistent with the terms set forth above
and providing such other terms and conditions as are in the Company’s standard such agreements.

	•	 	Share Purchase Commitment: You also agree to purchase at least $425,000 worth of
shares of the Company’s common stock on or before January 5, 2010 or such later date as
determined by the Company (the “Purchased Shares”). You shall not be permitted to sell any of
the Purchased Shares until the earlier of one year after the Final Purchase Date (as defined
below) and your date of termination of employment for any reason. As long as you remain
employed by the Company, you shall retain ownership of at least (i) seventy-five percent (75%)
of the Purchased Shares until January 5, 2011, (ii) fifty percent (50%) of the Purchase Shares
until January 5, 2012, and (iii) twenty-five percent (25%) of the Purchased Shares until
January 5, 2013 (the holding requirements in this and the immediately preceding sentence shall
be referred to as the “Purchase Obligations”). Notwithstanding the foregoing, the Purchase
Obligations shall be waived upon the occurrence of a Change of Control. The “Final Purchase
Date” shall mean the date on which you have purchased shares that, together with other shares
purchased by you on or after January 5, 2009, have an aggregate purchase price of $425,000.

	 	•	 	Matching Grants for Share Purchases: The Company shall make matching grants
with respect to the Purchased Shares and any additional shares of the Company’s common
stock you purchase (up to an aggregate purchased amount of $850,000 inclusive of the
Purchased Shares) on or before January 5, 2010. Such matching grants shall be credited to
you as soon as practicable after the end of any month in which you purchase Company shares,
in a number of restricted share units equal to the number of shares purchased in such month
(the “Matching Share Units”). The Matching Share Units shall vest and be settled in shares
on the following schedule: Twenty-five percent (25%) of the Matching Share Units shall
vest and be settled on the first anniversary of the Final Purchase Date and an additional
25% of the Matching Share Units shall vest and be settled on each of January 5, 2011,
January 5, 2012 and January 5, 2013, provided you are employed on the relevant vesting
date and you have not violated the Purchase Obligations prior to such vesting date. If
your employment is terminated by the Company without Cause or by you for Good Reason,
either in contemplation of a Change in Control or at any time within twelve (12) months
following a Change in Control, or if your employment is terminated by the Company at any
time for Disability or by reason of your death,
then, your Matching Share Units shall immediately vest and be settled in shares as soon as
practicable (but not more than 60 days) thereafter.

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Rajiv De Silva

December 17, 2008

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	 	•	 	Until the expiration of the two-year period following the date on which any portion of
the Matching Share Units are settled, you shall not be permitted to sell, assign, transfer,
or otherwise dispose of more than fifty percent (50%) of the net number of shares acquired
by you upon such settlement of such portion of the Matching Share Units after subtracting
any such shares withheld by the Company in payment of withholding obligations applicable to
such settlement acquired upon settlement of the Matching Share Units. This restriction
shall cease to apply upon a Change in Control or your earlier termination of employment.

	•	 	Good Reason. You may terminate your employment for Good Reason (as defined below)
by delivering to the Company a Notice of Termination (as defined below) not less than thirty
(30) days prior to the termination of your employment for Good Reason. The Company shall have
the option of terminating your duties and responsibilities prior to the expiration of such
thirty-day notice period, subject to the payment by the Company of the benefits provided in
this letter, as may be applicable. For purposes of this letter, Good Reason shall mean the
occurrence of any of the events or conditions described in clauses (i) through (iii)
immediately below which are not cured by the Company (if susceptible to cure by the Company)
within thirty (30) days after the Company has received written notice from you within ninety
(90) days of the initial existence of the event or condition constituting Good Reason
specifying the particular events or conditions which constitute Good Reason and the specific
cure requested by you.

	 	(i)	 	Diminution of Responsibility. (A) any material reduction in your duties or
responsibilities as in effect immediately prior thereto, or (B) removal of you from
the position of Chief Operating Officer of Specialty Pharmaceuticals. For the
avoidance of doubt, the term “Diminution of Responsibility” shall not include any such
removal resulting from your death or disability, the termination of your employment for
Cause, or your termination of your employment other than for Good Reason;
	 
	 	(ii)	 	Compensation Reduction. Any reduction in your base salary or target bonus
opportunity which is not comparable to reductions in the base salary or target bonus
opportunity of other similarly-situated senior executives at the Company; or
	 
	 	(iii)	 	Company Breach. Any other material breach by the Company of any material
provision of this letter.

	•	 	Change in Control. For purposes of this letter, a “Change in Control” shall mean
any of the following events:

(i) the acquisition (other than from the Company) by any person (as such term is defined in
Section 13(c) or 14(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”))
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of
thirty percent (30%) or more of the combined voting power of the Company’s then outstanding
voting securities;

(ii) the individuals who, as of the date hereof, are members of the Board (the “Incumbent
Board”), cease for any reason to constitute at least a majority of the Board, unless the
election, or

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Rajiv De Silva

December 17, 2008

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nomination for election by the Company’s stockholders, of any new director was
approved by a vote of at least a majority of the Incumbent Board, and such new director
shall, for purposes of this Agreement, be considered as a member of the Incumbent Board; or

(iii) the closing of:

	 	(1)	 	a merger or consolidation involving the Company if the
stockholders of the Company, immediately before such merger or consolidation, do
not, as a result of such merger or consolidation, own, directly or indirectly,
more than fifty percent (50%) of the combined voting power of the then
outstanding voting securities of the corporation resulting from such merger or
consolidation in substantially the same proportion as their ownership of the
combined voting power of the voting securities of the Company outstanding
immediately before such merger or consolidation; or
	 
	 	(2)	 	a complete liquidation or dissolution of the Company or an
agreement for the sale or other disposition of all or substantially all of the
assets of the Company.

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely
because thirty percent (30%) or more of the combined voting power of the Company’s then
outstanding securities is acquired by (i) a trustee or other fiduciary holding securities
under one or more employee benefit plans maintained by the Company or any of its
subsidiaries or (ii) any corporation which, immediately prior to such acquisition, is owned
directly or indirectly by the stockholders of the Company in the same proportion as their
ownership of stock in the Company immediately prior to such acquisition.

Upon the occurrence of a Change in Control, at the election of the Company, either (i) the
unvested Options and Matching Share Units shall vest and all Options and Matching Share
Units shall be cancelled in exchange for a cash payment based in the case of any merger
transaction on the price received by shareholders in the transaction constituting the Change
in Control or in the case of any other event that constitutes a Change in Control, the
closing price of a Share on the date such Change in Control occurs (minus, in the case of
Options, the applicable exercise price per share) or (ii) all Options and Matching Share
Units shall be converted into options or units, as applicable, in respect of the common
stock of the acquiring entity (in a merger or otherwise) on the basis of the relative values
of such stock and the Shares at the time of the Change in Control, reflecting and continuing
the same vesting schedule in place immediately prior to the Change in Control; provided that
subclause (ii) shall only be applicable if the common stock of the acquiring entity is
publicly traded on an established securities market on the date on which such Change in
Control is effected.

	 	•	 	Disability. The Company may terminate your employment, on written notice to you
after having established your Disability and while you remain Disabled, subject to the
payment by the Company to you of the applicable benefits provided pursuant to this letter.
For purposes of this letter, “Disability” shall mean your inability to substantially
perform your duties and responsibilities hereunder by reason of any physical or mental
incapacity for two or more periods of ninety (90)
consecutive days each in any three hundred and sixty (360) day period, as determined by a
physician with no history of prior dealings with the Company or you, as reasonably agreed
upon by the Company and you. You shall be entitled to the compensation and benefits provided
for

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Rajiv De Silva

December 17, 2008

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	 	 	 	under this letter for any period prior to your termination by reason of Disability
during which you are unable to work due to a physical or mental infirmity in accordance with
the Company’s policies for similarly-situated executives.
	 
	 	•	 	Cause. The Company may terminate your employment for “Cause”, subject to the
payment by the Company to you of the applicable benefits provided in this letter. “Cause”
shall mean, for purposes of this letter: (1) conviction of any felony (other than one
related to a vehicular offense) or other criminal act involving fraud; (2) willful
misconduct that results in a material economic detriment to the Company; (3) material
violation of Company policies and directives, which is not cured after written notice and
an opportunity for cure, (4) continued refusal by you to perform your duties after written
notice identifying the deficiencies and an opportunity for cure; and (5) a material
violation by you of any material covenants to the Company. No action or inaction shall be
deemed willful if not demonstrably willful and if taken or not taken by you in good faith
and with the understanding that such action or inaction was not adverse to the best
interests of the Company. Reference in this paragraph to the Company shall also include
direct and indirect subsidiaries of the Company, and materiality shall be measured based on
the action or inaction and the impact upon the Company taken as a whole. The Company may
suspend, with pay, you upon your indictment for the commission of a felony as described
under clause (A) above. Such suspension may remain effective until such time as the
indictment is either dismissed or a verdict of not guilty has been entered.

	•	 	Employee and Executive Benefits: You will be eligible to participate in the
employee benefit plans and programs generally made available to employees (on the terms and
conditions applicable generally to all employees) and the Valeant’s Executive Benefit Program:

	 	1)	 	Executive medical program
	 
	 	2)	 	Executive medical reimbursement program up to $10,000 per year
	 
	 	3)	 	Executive perquisites allowance of $25,000 (subject to applicable taxation) annually to
be used as you see fit for car, enhanced life insurance, financial planning, etc.
	 
	 	4)	 	Executive Vacation Program
	 
	 	5)	 	Executive Annual Physical Program

	•	 	Reimbursement of Certain Expenses: The Company shall fully reimburse the
reasonable fees of your counsel and financial advisor incurred in connection with the
development and implementation of the terms of your employment.

	•	 	At-Will Employment. Your employment with Valeant is “at will”. This means that
you or Valeant have the option to terminate your employment at any time, with or without
advance notice, and with or without cause. Valeant also may change your position, title, pay,
benefits, and other terms and conditions of your employment (except for the at will nature of
your employment and the terms of the Mediation and Arbitration Agreement) at any time, for any
reason, with or without notice. This offer of employment does not constitute an express or
implied agreement of continuing or long term employment. The at will nature of your
employment can be altered only by a written agreement
specifying the altered status of your employment. Such written agreement must be signed by both
you and Mr. Pearson.

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Rajiv De Silva

December 17, 2008

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	•	 	Severance Benefits. Notwithstanding the immediately preceding bullet paragraph, if
your employment is terminated by the Company without Cause or by you for Good Reason, the
Company shall have the following obligations:

	 	•	 	The Company will pay you the sum of an amount equal to your annual salary as of the
date of your termination, plus an amount equal to your annual target bonus as of the
date of your termination, provided that, if your termination occurs either in
contemplation of a Change in Control or at any time within twelve (12) months following
a Change in Control, the Company shall pay you an amount which is twice the sum
otherwise determined under this bullet;
	 
	 	•	 	The Company will pay you any accrued but unpaid salary or vacation pay and any
deferred compensation. In addition, the Company will pay you any bonus earned but
unpaid in respect of any fiscal year preceding the termination date, plus any pro-rata
bonus for the year of termination based on a target-level bonus.
	 
	 	•	 	The Company will provide you with continued coverage under any health, medical,
dental or vision program or policy in which you were eligible to participate at the
time of your employment termination for 12 months following such termination on terms
no less favorable to you and your dependents (including with respect to payment for the
costs thereof) than those in effect immediately prior to such termination;
	 
	 	•	 	The performance measures applicable to the Performance Share Units will be applied
as though the termination date were the end of the measurement period, with the number
of units calculated in a manner consistent with the vesting schedule described above
(e.g., in the event of your termination prior to the First Measurement Date, 100% will
vest at the date of such termination if the Adjusted Share Price is the Single Vesting
Share Price; 200% will vest if the Adjusted Share Price is the Double Vesting Share
Price; and 300% will vest if the Adjusted Share Price is the Triple Vesting Share
Price; and if the Adjusted Share Price on such measurement date is between the Single
Vesting Share Price and the Double Vesting Share Price or is between the Double Vesting
Share Price and the Triple Vesting Share Price, you shall vest in, and the Company
shall deliver, a number of Performance Share Units that is the mathematical
interpolation between the number of shares which would vest at defined ends of the
spectrum); provided, however, that in the event you are entitled to payment under this
bullet point, only a pro rata portion of such calculated units will vest upon your
termination (based on the number of completed months elapsed from the date of grant to
the date of termination divided by 36 months). The Company shall deliver shares in
respect of such vested Performance Share Units, if any, as soon as practicable (but not
later than sixty (60) days) following your termination date, and all other Performance
Share Units will be forfeited.
	 
	 	•	 	The Company shall provide outplacement services through one or more outside firms of
your choosing up to an aggregate of $20,000, which services shall extend until the
earlier of (i) 12 months following the termination of your employment or (ii) the date
that you secure full time employment.
	 
	 	•	 	You shall have three months following the termination date to exercise vested
Options (but in no event beyond the expiration of the 10-year Option term). Any unvested portion of the

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Rajiv De Silva

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	 	 	 	Option, any unvested Performance Share Units and any unvested
Matching Share Units shall be forfeited.

Notwithstanding anything herein to the contrary, the Company shall have no obligation to pay or
provide any of the severance benefits set forth in this letter unless you execute and deliver,
within 60 days of the date of your termination, and do not revoke, a general release in form
satisfactory to the Company and any revocation period set forth in the release has lapsed. The
Company shall pay all cash severance benefits due within 10 business days following the
satisfaction of all of the conditions set forth in the preceding sentence. You shall not be
required to mitigate the amount of any severance payment provided for under this letter by seeking
other employment or otherwise and no such payment shall be offset or reduced by the amount of any
compensation or benefits provided to you in any subsequent employment.

It is understood that, during your employment by Valeant Pharmaceuticals International, you will
not engage in any activities that constitute a conflict of interest with the interests of Valeant,
as outlined in Valeant’s conflict of interest policies for employees and executives in effect from
time to time.

	•	 	Covenant Not to Compete. To protect the confidential information and other trade
secrets of the Company and its affiliates, you agree, during the term of this Agreement and
for a period of twelve (12) months after your cessation of employment with the Company or any
of its affiliates, not to engage in Prohibited Activities (as defined below); provided,
however, that the foregoing covenant not to compete shall not apply if the Company or any of
its affiliates terminates your employment without Cause or if you resign for Good Reason. For
the purposes of this covenant, the term “Prohibited Activities” means directly or indirectly
engaging as an owner, employee, consultant or agent of any entity that develops, manufactures,
markets and/or distributes (directly or indirectly) prescription or non-prescription
pharmaceuticals or medical devices for treatments in the fields of neurology, dermatology,
oncology or hepatology; provided, that Prohibited Activities shall not mean your investment in
securities of a publicly-traded company equal to less than five (5%) percent of such company’s
outstanding voting securities. You agree that the covenants contained in this paragraph are
reasonable and desirable to protect the confidential information and other trade secrets of
the Company and its affiliates.

	•	 	Covenant Not to Solicit. To protect the confidential information and other trade
secrets of the Company and its affiliates, you agree, during your employment with the Company
or any of its affiliates and for a period of twelve (12) months after your cessation of
employment with the Company or any of its affiliates, not to solicit or participate in or
assist in any way in the solicitation of any employees of the Company or any its affiliates.
For purposes of this covenant, “solicit” or “solicitation” means directly or indirectly
influencing or attempting to influence employees of the Company or any of its affiliates to
become employed with any other person, partnership, firm, corporation or other entity. You
agree that the covenants contained in this paragraph are reasonable and desirable to protect
the confidential information and other trade secrets of the Company and its affiliates,
provided, that solicitation through general advertising or the provision of references shall
not constitute a breach of such obligations.

	•	 	It is the intent and desire of you and the Company (and its affiliates) that the
restrictive provisions in the two preceding paragraphs be enforced to the fullest extent
permissible under the laws and public policies as applied in each jurisdiction in which
enforcement is sought. If any particular provision in the preceding two paragraphs shall be
determined to be invalid or unenforceable, such covenant

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Rajiv De Silva

December 17, 2008

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	 	 	shall be amended, without any action
on the part of either party hereto, to delete therefrom the portion so determined to be
invalid or unenforceable, such deletion to apply only with respect to the operation of such
covenant in the particular jurisdiction in which such adjudication is made. Your obligations
under the two preceding paragraphs shall survive the termination of your employment with or
any other employment arrangement with the Company or any of its affiliates.

	•	 	Remedies for Breach of Obligations Under the Covenants Not to Solicit or Not to Compete
above. You acknowledge that the Company or its affiliates will suffer irreparable injury,
not readily susceptible of valuation in monetary damages, if you breach your obligations under
the paragraphs captioned “Covenant Not to Solicit” or “Covenant Not to Compete” above.
Accordingly, you agree that the Company and its affiliates will be entitled, in addition to
any other available remedies, to obtain injunctive relief against any breach or prospective
breach by you of your obligations under either such paragraph in any Federal or state court
sitting in the State of New Jersey, or, at the Company’s (or its affiliate’s) election, in any
other state in which you maintain your principal residence or your principal place of
business. You agree that the Company or its affiliates may seek the remedies described in the
preceding sentence notwithstanding any arbitration or mediation agreement that you may enter
into with the Company or any of its affiliates. You hereby submit to the non-exclusive
jurisdiction of all those courts for the purposes of any actions or proceedings instituted by
the Company or its affiliates to obtain that injunctive relief, and you agree that process in
any or all of those actions or proceedings may be served by registered mail, addressed to the
last address provided by you to the Company or its affiliates, or in any other manner
authorized by law.

You shall be indemnified by Valeant as provided in its by-laws and Certificate of Incorporation.

Section 409A. If any payments or benefits due to you hereunder would cause the application of an
accelerated or additional tax under Section 409A of the Internal Revenue Code of 1986, as amended
(“Section 409A”), such payments or benefits shall be restructured in a manner which does not cause
such an accelerated or additional tax. Without limiting the foregoing and notwithstanding anything
contained herein to the contrary, to the extent required in order to avoid accelerated taxation
and/or tax penalties under Section 409A amounts that would otherwise be payable and benefits that
would otherwise be provided pursuant to this letter during the six-month period immediately
following your separation from service shall instead be paid on the first business day after the
date that is six months following your termination date (or death, if earlier), with interest from
the date such amounts would otherwise have been paid at the short-term applicable federal rate,
compounded semi-annually, as determined under Section 1274 of the Internal Revenue Code of 1986,
as amended, for the month in which payment would have been made but for the delay in payment
required to avoid the imposition of an additional rate of tax on you under Section 409A.

It is understood that you are required to read, review, agree, sign and return the following
documents included with this letter: 1) the Conflict of Interest Policy and Agreement, 2) the
Workers’ Compensation Fraudulent Claims notification, 3) the Employee Agreement concerning
inventions, discoveries, and improvements, and 4) the Mediation and Arbitration Agreement, and 5)
the Trading in Company Stock
Interoffice Memorandum. Additionally, the Immigration and Reform Act 1986 requires each new
employee to provide proof of eligibility to work in the United States.

Valeant Policy will govern any other matter not specifically covered by this letter.

___JMP RKD______

     Initials          

 

 

Rajiv De Silva

December 17, 2008

Page 11 of 11

The terms of this letter constitute the entire agreement between Valeant and you with respect to
the subject matter hereof, superseding all prior agreements and negotiations. This letter is
governed by the laws of the State of New Jersey.

We are pleased to have you join us. As confirmation of acceptance of this employment offer, please
sign this letter indicating your agreement and acceptance of the terms and conditions of
employment. In addition, please mail the original signed offer letter in the envelope
provided. A duplicate copy of this offer letter is included for your records.

Again, welcome to Valeant!

Sincerely,

J. Michael Pearson

Chairman, Chief Executive Officer

AGREED AND ACCEPTED:

	 	 	 	 	 	 	 	 	 
	/s/ Rajiv De Silva

	 	 	 	Date:	 	12/17/08	 	 
	 

Rajiv DeSilva

	 	 	 	 	 	 

	 	 

___JMP RKD______

     Initialsexv10w14

Exhibit
10.14

EMPLOYMENT AND NONCOMPETITION AGREEMENT

     THIS AGREEMENT is made and effective this 9th day of February, 2005 between SCI Executive
Services, Inc., a Delaware corporation (the “Company”), and J. Daniel Garrison (the “Employee”):

ARTICLE I

EMPLOYMENT

     1.1 Employment Term. The Company agrees to employ the Employee and the Employee agrees to
accept such employment, in accordance with the terms and conditions of this Agreement, for the
period beginning on the date of this Agreement and ending as of the close of business on December
31, 2005 (such period together with all extensions thereof are referred to hereinafter as the
“Employment Term”); provided, however, that commencing on January 1, 2006, and on each January 1
thereafter (each such date shall be hereinafter referred to as a “Renewal Date”), the Employment
Term shall be extended so as to terminate one year from such Renewal Date if (i) the Company
notifies the Employee in writing of such extension at least thirty days prior to such Renewal Date
and (ii) the Employee has not previously given the Company written notice that the Employment Term
shall not be so extended. In the event that the Company gives the Employee written notice at any
time of its intention not to renew the Employment Term, then the Employment Term shall terminate on
December 31 of the year in which such notice of non-renewal is given and shall not thereafter be
further extended. If the Company fails to notify the Employee at least thirty days prior to a
Renewal Date either of its intention to extend the Employment Term as provided above or its
intention not to so extend the Employment Term, then the Employment Term shall not be extended and
shall terminate as of the day prior to such Renewal Date.

     1.2 Duties. The Employee shall serve the Company in an executive or managerial capacity
and shall hold such title as may be authorized from time to time by the Board of Directors of
Service Corporation International (“SCI”). The Employee shall have the duties, powers and authority
consistent therewith and such other powers as are delegated to him in writing from time to time by
the Board of Directors of SCI. If the Employee is elected to any office or other position with the
Company during the term of this Agreement, the Employee will serve in such capacity or capacities
without further compensation unless the Compensation Committee (the “Compensation Committee”) of
the Board of Directors of SCI authorizes additional compensation. The Employee’s title and duties
may be changed from time to time at the discretion of the Company. The Employee also agrees to
perform, without additional compensation, such other services for the Company and for any
subsidiary or affiliated corporations of the Company or for any partnerships in which the Company
has an interest, as the Company shall from time to time specify. The term “Company” as used
hereinafter shall be deemed to include and refer to subsidiaries and affiliated corporations and
partnerships.
Employee agrees and acknowledges that he owes, and will comply with, a fiduciary duty of loyalty,
fidelity and allegiance to act at all times in the best interests of the Company and to take no
action or fail to take action if such action or failure to act would injure the Company’s business,
its interests or its reputation.

 

 

     1.3 Extent of Service. During the Employment Term, the Employee shall devote his full
time, attention and energy to the business of the Company, and, except as may be specifically
permitted by the Company, shall not be engaged in any other business activity during the term of
this Agreement. The foregoing shall not be construed as preventing the Employee from making passive
investments in other businesses or enterprises, provided, however, that such investments will not:
(1) require services on the part of the Employee which would in any way impair the performance of
his duties under this Agreement, or (2) in any manner significantly interfere with Employee’s
responsibilities as an Employee of the Company in accordance with this Agreement.

     1.4 Compensation

          (a) Salary. The Company shall pay to the Employee a salary at the rate in effect for
Employee at the date of this Agreement. Such salary is to be payable in installments in accordance
with the payroll policies of the Company in effect from time to time during the term of this
Agreement. The Company may (but is not required to) make such upward adjustments to the Employee’s
salary as it deems appropriate from time to time.

          (b) Incentive Compensation. In addition to the above salary, the Employee shall be
eligible annually for incentive compensation at the discretion of the Compensation Committee.

          (c) Other Benefits. The Employee shall be reimbursed in accordance with the Company’s
normal expense reimbursement policy for all of the actual and reasonable costs and expenses accrued
by Employee in the performance of his or her services and duties hereunder, including but not
limited to, travel and entertainment expenses. The Employee shall be entitled to participate in all
insurance, stock options, retirement plans and other benefit plans or programs as may be from time
to time specifically adopted and approved by the Company for its employees, in accordance with the
eligibility requirements and any other terms and conditions of such plans. It is understood and
agreed between the parties hereto that the Company reserves the right, at its sole discretion, to
modify, amend or terminate such plans, programs or benefits at any time.

     1.5 Termination

          (a) Death. If the Employee dies during the term of this Agreement and while in the employ
of the Company, this Agreement shall automatically terminate and the Company shall have no further
obligation to the Employee or his estate except that (i) the Company shall continue to pay the
Employee’s estate the Employee’s salary in installments through the end of the Employment Term
which was in effect immediately prior to Employee’s death, and (ii) the Company shall pay the
Employee’s estate any applicable Pro Rated Bonus (defined hereinbelow).

          (b) Disability. If during the term of this Agreement, the Employee shall be prevented
from performing his duties hereunder by reason of disability, then the Company, on 30 days’ prior
notice to the Employee, may terminate Employee’s employment under this Agreement. For purposes of
this Agreement, the Employee shall be deemed to have become disabled when the Company, upon the
advice of a qualified physician, shall have determined that the Employee has become physically or
mentally incapable (excluding infrequent and temporary

2

 

absences due to ordinary illness) of performing his duties under this Agreement. In the event of a
termination pursuant to this paragraph 1.5(b), the Company shall be relieved of all of its
obligations under this Agreement, except that the Company shall pay to the Employee (or his estate,
in the event of his subsequent death), (i) the Employee’s salary in installments through the end of
the Employment Term which was in effect immediately prior to Employee’s disability, and (ii) any
applicable Pro Rated Bonus. Before making any termination decision pursuant to this Section 1.5(b),
the Company shall determine whether there is any reasonable accommodation (within the meaning of
the Americans With Disabilities Act) which would enable the Employee to perform the essential
functions of the Employee’s position under this Agreement despite the existence of any such
disability. If such a reasonable accommodation is possible, the Company shall make that
accommodation and shall not terminate the Employee’s employment hereunder during the Employment
Term based on such disability.

          (c) Certain Discharges. Prior to the end of the Employment Term, the Company may
discharge the Employee for Cause and terminate Employee’s employment hereunder without notice and
without any further liability hereunder to Employee or his estate. For purposes of this Agreement,
“Cause” shall mean a determination by the Company that Employee: (i) has been convicted of a crime
involving moral turpitude; (ii) has regularly failed or refused to follow policies or directives
established by the Company or the Board of Directors of SCI; (iii) has willfully and persistently
failed to attend to his duties; (iv) has committed acts amounting to gross negligence or willful
misconduct to the detriment of the Company or its affiliates; (v) has violated any of his
obligations under Articles II or III of this Agreement; or (vi) has otherwise breached any of the
terms or provisions of this Agreement.

          (d) Without Cause. Prior to the end of the Employment Term, the employment of the
Employee with the Company may be terminated by the Company other than for Cause, death or
disability. If such event occurs prior to a Change of Control (defined hereinbelow), the Company
shall have no further obligation to Employee or his estate except that the Company shall pay or
provide to the Employee (or his estate, in the event of his subsequent death), (i) the Employee’s
salary as in effect immediately prior to Employee’s termination in installments for a period ending
two years from such date of termination, provided that the Company at its sole option may prepay
all or any portion of such payments at any time, (ii) any applicable Pro Rated Bonus and (iii)
continuation of Employee’s Group Health and Dental coverage and Exec-U-Care program (including
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1986 (“Cobra”) to the extent
applicable) for a period of twenty four months beginning the month following such date of
termination, with Employee paying such amount of premiums as would have been applicable if Employee
had remained an employee of the Company.

          (e) Voluntary Termination by Employee. If during the term of this Agreement, the Employee
voluntarily terminates his employment with the Company prior to any Change of Control, the Company
shall be relieved of all of its obligations under this Agreement, except that the Company shall pay
the Employee (or his estate, in the event of his subsequent death) (i) the
Employee’s salary through the date of Employee’s termination, and (ii) any incentive compensation
under Section 1.4(b) determined by the Compensation Committee for any fiscal period ended prior to
the date of Employee’s termination which had not been paid at the time of his termination. All such
payments to the Employee or his estate shall be made in the same

3

 

manner and at the same times as the Employee’s salary or incentive compensation would have been
paid to the Employee had he not terminated his employment.

          (f) Change of Control. If (i) a Change of Control occurs during the Employment Term and
(ii) within twenty four months after such Change of Control the Employee’s employment is (x)
terminated by the Company other than for Cause, death or disability, or (y) terminated by Employee
after an occurrence of any Good Reason (except under circumstances which would be grounds for
termination of Employee by the Company for Cause), then the Company shall be relieved of all of its
obligations under this Agreement, except that the Company shall pay or provide the Employee (or his
estate, in the event of his subsequent death) the following amounts:

     (1) Three, multiplied by the sum of Employee’s most recently set Target Bonus plus his
annual salary in effect immediately prior to the Change of Control, which amount will be paid in a
lump sum in cash within 30 days after the Employee’s date of termination; and

     (2) Partial Bonus, to be paid within 30 days after the Employee’s date of termination; and

     (3) Continuation of Employee’s Group Health and Dental coverage and Exec-U-Care program
(including pursuant to COBRA to the extent applicable) for a period of thirty six months beginning
the month following such date of termination, with Employee paying such amount of premiums as would
have been applicable if Employee had remained an employee of the Company.

     In addition, Company shall pay to Employee an amount that, on an after-tax basis (including
federal income, employment, excise and social security taxes, state and local income and employment
taxes, and any other applicable taxes), equals any excise tax that is determined to be payable by
Employee pursuant to Section 4999 (or any successor provision) of the Internal
Revenue Code of 1986, as amended (and any interest or penalties related to the imposition of such
excise tax) at any time, by reason of both entitlements under this Agreement (including any and all
payments under this Section 1.5(f)) and entitlements outside of this Agreement that are described
in Section 280G(b)(2)(A)(i) of the Code (or any successor provision) with reference to Company. For
purposes of this paragraph, Employee shall be deemed to pay federal, state and local income taxes
at the highest marginal rate of taxation. Such amount will be made payable by Company or its
successor within thirty (30) days after Employee delivers a written request for reimbursement
accompanied by a statement from a nationally recognized legal, consulting or accounting firm as may
be agreed to by the parties setting forth the amount owed pursuant to this paragraph. Company shall
pay all fees and costs incurred by Employee related to the preparation, delivery and resolution of
such written request for reimbursement.

     The obligations of the Company under this Section 1.5(f) shall remain in effect for
twenty-four months after any Change of Control that occurs during the Employment Term
notwithstanding the fact that such twenty four month period may extend beyond the expiration of the
Employment Term.

4

 

     (g) Post Employment Term Matters. In the event the Employment Term terminates because it
is not extended or renewed pursuant to Section 1.1, then the Company shall be relieved of all of
its obligations under this Agreement and Employee will thereafter be an employee “at will” of the
Company.

ARTICLE II

INFORMATION

          2.1 Nondisclosure of Information. The Employee acknowledges that in the course of his
employment by the Company he will receive certain trade secrets, which may include, but are not
limited to, programs, lists of acquisition or disposition prospects and knowledge of acquisition
strategy, financial information and reports, lists of customers or potential customers and other
confidential information and knowledge concerning the business of the Company (hereinafter
collectively referred to as “Information”) which the Company desires to protect. The Employee
understands that the Information is confidential and agrees not to reveal the Information to anyone
outside the Company so long as the confidential or secret nature of the Information shall continue,
unless compelled to do so by any federal or state regulatory agency or by a court order. If
Employee becomes aware that disclosure of any Information is being sought by such an agency or
through a court order, Employee will immediately notify the Company. The Employee further agrees
that he will at no time use the Information in competing with the Company. Upon termination of
Employee’s employment with the Company, the Employee shall surrender to the Company all papers,
documents, writings and other property
produced by him or coming into his possession by or through his employment or relating to the
Information, and the Employee agrees that all such materials are and will at all times remain the
property of the Company and to the extent the Employee has any rights therein, he hereby
irrevocably assigns such rights to the Company.

     2.2 Disclosure of Information, Ideas, Concepts, Improvements, Discoveries and Inventions.
As part of the Employee’s fiduciary duties to the Company, Employee agrees that during his
employment by the Company, and for a period of six months after the termination of the employment
relationship for any reason, Employee shall promptly disclose in writing to the Company all
information, ideas, concepts, improvements, discoveries and inventions, whether patentable or not,
and whether or not reduced to practice, which are conceived, developed, made or acquired by
Employee, either individually or jointly with others, and which relate to the business, products or
services of the Company or any of its subsidiaries or affiliates, irrespective of whether Employee
utilized the Company’s time or facilities and irrespective of whether such information, idea,
concept, improvement, discovery or invention was conceived, developed, discovered or acquired by
the Employee on the job, at home, or elsewhere. This obligation extends to all types of
information, ideas and concepts, including information, ideas and concepts relating to new types of
services, corporate opportunities, acquisition prospects, the identity of key representatives
within acquisition prospect organizations, prospective names or service marks for the Company’s
business activities, and the like.

5

 

     2.3 Ownership of Information, Ideas, Concepts, Improvements, Discoveries and Inventions
and All Original Works of Authorship.

          (a) All information, ideas, concepts, improvements, discoveries and inventions, whether
patentable or not, which are conceived, made, developed or acquired by Employee or which are
disclosed or made known to Employee, individually or in conjunction with others, during Employee’s
employment by the Company and which relate to the Company’s business, products or services
(including but not limited to all such information relating to corporate opportunities, research,
financial and sales data, pricing and trading terms, evaluations, opinions, interpretations,
acquisition prospects, the identity of customers or their requirements, the identity of key
contacts within the customer’s organization or within the organization of acquisition prospects, or
marketing and merchandising techniques, prospective names and marks), are and shall be the sole and
exclusive property of the Company. Moreover, all drawings, memoranda, notes, records, files,
correspondence, manuals, models, specifications, computer programs, maps and all other writings or
materials of any type embodying any of such information, ideas, concepts, improvements, discoveries
and inventions are and shall be the sole and exclusive property of the Company.

          (b) In particular, Employee hereby specifically sells, assigns and transfers to the
Company all of his worldwide right, title and interest in and to all such information, ideas,
concepts, improvements, discoveries or inventions described in Section 2.3 (a) above, and any
United States or foreign applications for patents, inventor’s certificates or other industrial
rights that may be filed thereon, including divisions, continuations, continuations-in-part,
reissues and/or extensions thereof, and applications for registration of such names and marks. Both
during the period of Employee’s employment by the Company and thereafter, Employee shall assist the
Company and its nominees at all times in the protection of such information, ideas, concepts,
improvements, discoveries or inventions both in the United States and all foreign countries,
including but not limited to the execution of all lawful oaths and all assignment documents
requested by the Company or its nominee in connection with the preparation, prosecution, issuance
or enforcement of any applications for United States or foreign letters patent, including
divisions, continuations, continuations-in-part, reissues, and/or extensions thereof, and any
application for the registration of such names and marks.

          (c) Moreover, if during Employee’s employment by the Company, Employee creates any
original work of authorship fixed in any tangible medium of expression which is the subject matter
of copyright (such as videotapes, written presentations on acquisitions, computer programs,
drawing, maps, architectural renditions, models, manuals, brochures or the like) relating to the
Company’s business, products, or services, whether such work is created solely by Employee or
jointly with others, the Company shall be deemed the author of such work if the work is prepared by
Employee in the scope of his or her employment; or, if the work is not prepared by Employee within
the scope of his or her employment but is specially ordered by Company as a contribution to a
collective work, as a part of a motion picture or other audiovisual work, as a translation, as a
supplementary work, as a compilation or as an instructional text, then the work shall be considered
to be work made for hire and the Company shall be considered the author of the work. In the event
such work is neither prepared by the Employee within the scope of his or her employment or is not a
work specially ordered and deemed to be a work made for

6

 

hire, then Employee hereby agrees to assign, and by these presents, does assign, to the Company all
of Employee’s worldwide right, title and interest in and to the work and all rights of copyright
therein. Both during the period of Employee’s employment by the Company and thereafter, Employee
agrees to assist the Company and its nominee, at any time, in protection of the Company’s worldwide
right, title and interest in and to the work and all rights of copyright therein, including but not
limited to, the execution of all formal assignment documents requested by the Company or its
nominees and the execution of all lawful oaths and applications for registration of copyright in
the United States and foreign countries.

ARTICLE III

NONCOMPETITION

     3.1 Noncompetition. During the Employment Term (and for a period of one or two years
thereafter if the Company exercises its options under Section 3.2 hereof), Employee shall not,
acting alone or in conjunction with others, directly or indirectly, in any market in which the
Company or any of its affiliated companies conducts business, work for or engage in any business in
competition with the business conducted by the Company or any of its affiliated companies, whether
for his own account or by soliciting, canvassing or accepting any business or transaction for or
from any other company or business in competition with such business of the Company or any of its
affiliated companies. In the event that a court should determine that any restriction herein is
unenforceable, the parties hereto agree that the obligations under this paragraph shall be
enforceable for the maximum term and maximum geographical area allowable by law.

     3.2 Extension. The Company shall have the option to extend Employee’s obligations under
Section 3.1 for one additional year (the “First Extension Term”) beyond the end of the Employment
Term. If the Company exercises such option, it shall be required to pay Employee an amount equal to
one year’s salary, based on Employee’s salary rate as of the date his employment with the Company
ceased (the “Noncompetition Payment”). Such Noncompetition Payment shall be made in 12 equal
monthly installments (each installment being an amount equal to 1/12th of such annual salary)
commencing on the date which is thirty (30) days after the last day of the Employment Term.
Subsequent payments shall be made on the same day of each succeeding month until 12 payments have
been made. If the Employee breaches his noncompetition obligations, the Company shall be entitled
to cease making such monthly payments. The purpose of this paragraph is to make the noncompetition
obligation of the Employee more reasonable from the Employee’s point of view. The amounts to be
paid by the Company are not intended to be liquidated damages or an estimate of the actual damages
that would be sustained by the Company if the Employee breaches his post-employment noncompetition
obligation. If the Employee breaches his post-employment noncompetition obligation, the Company
shall be entitled to all of its remedies at law or in equity for damages and injunctive relief. The
Company may exercise the option conferred by this paragraph at any time within 30 days after the
last day of the Employment Term by mailing written notice of such exercise to Employee.

If the Company exercises its option to extend Employee’s obligations as set forth in the preceding
paragraph, then the Company shall have the option to extend Employee’s obligations

7

 

under Section 3.1 for one additional year (the “Second Extension Term”) beyond the end of the First
Extension Term. If the Company exercises its option to extend Employee’s obligations for the Second
Extension Term, the rights and obligations of the parties set forth in the preceding paragraph
shall be applicable during the Second Extension Term. The Company may exercise the option conferred
by this paragraph at any time within 30 days after the last day of the First Extension Term by
mailing written notice of such exercise to Employee.

     3.3 Termination For Cause or Termination By Employee Notwithstanding anything to the
contrary in this Agreement, in the event that Employee’s employment hereunder is terminated for
Cause pursuant to Section 1.5(c) hereof, or in the event Employee voluntarily terminates the
employment relationship for any reason other than a material breach of this Agreement by the
Company, the noncompetition obligations of Employee described in Section 3.1 above shall
automatically continue for a period of two years from the date the employment relationship ceases,
and the Company shall not be required to (i) make any payments to Employee in consideration for
such obligations, or (ii) provide any notice to Employee. Notwithstanding the foregoing this
Section 3.3 shall not be applicable in the event Employee voluntarily terminates the employment
relationship for Good Reason within twenty four months after a Change of Control that occurs during
the Employment Term; provided however, the first clause of this sentence shall be null and void if
such termination referenced therein occurs under circumstances which would be grounds for
termination of Employee by the Company for Cause.

     3.4 Obligations to Refrain From Competing Unfairly. In addition to the other obligations
agreed to by Employee in this Agreement, Employee agrees that during the Employment Term and for
five (5) year(s) thereafter, he shall not at any time, directly or indirectly for the benefit or
any other party than the Company or any of its affiliated companies, (a) induce, entice, or solicit
any employee of the Company or any of its affiliated companies to leave his employment, or (b)
contact, communicate or solicit any customer of the Company or any of its affiliated companies
derived from any customer list, customer lead, mail, printed matter or other information secured
from the Company or any of its affiliated companies or their present or past employees, or (c) in
any other manner use any customer lists or customer leads, mail, telephone numbers, printed
material or material of the Company or any of its affiliated companies relating thereto.

     3.5 Acknowledgement. Employee acknowledges that Employee’s compliance with the provisions
of this Article III is necessary to protect the existing goodwill and other proprietary rights of
the Company, as well as all goodwill and relationships that may be acquired or enhanced during the
course of Employee’s employment with the Company, and all confidential information which may come
into existence or to which Employee may have access during his employment with the Company.
Employee further acknowledges that Employee will become familiar with certain of the Company’s
affairs, operations, customers and confidential information and data by means of his employment
with the Company, and that failure to comply with the provisions of this Article III will result in
irreparable and continuing damage to the Company for which there will be no adequate remedy at law.
The Company shall be entitled to all of its remedies at law or in equity for damages and injunctive
relief in the event of any violation of this Article III by Employee.

8

 

ARTICLE IV

MISCELLANEOUS

     4.1
Notices. All notices, requests, consents, and other communications under this
Agreement shall be in writing and shall be deemed to have been delivered on the date personally
delivered or on the date mailed, postage prepaid, by certified mail, return receipt requested, or
telegraphed and confirmed if addressed to the respective parties as follows:

	 	 	 	 	 
	 

	 	If to the Employee:
	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	If to the Company:	 	 
	 
	 	 	 	 
	 

	 	General Counsel	 	 
	 

	 	c/o SCI Executive Services, Inc.	 	 
	 

	 	1929 Allen Parkway	 	 
	 

	 	Houston, Texas 77019	 	 
	 

	 	Attention: Legal Department	 	 

     Either party hereto may designate a different address by providing written notice of such new
address to the other party hereto.

     4.2 Entire Agreement. This Agreement replaces and merges all previous agreements and
discussions relating to the same or similar subject matters between Employee and the Company (or
any of its affiliates) and constitutes the entire agreement between the Employee and the Company
(and any of its affiliates) with respect to the subject matter of this Agreement. Any existing
employment agreement between the Employee and the Company (or any of its affiliates) is hereby
terminated, effective immediately. This Agreement may not be modified in any respect by any verbal
statement, representation or agreement made by an employee, officer, or representative of the
Company or by any written agreement unless signed by an officer of the Company who is expressly
authorized by the Company to execute such document.

     4.3 Specific Performance. The Employee acknowledges that a remedy at law for any breach
of Article II or III of this Agreement will be inadequate, agrees that the Company shall be
entitled to specific performance and injunctive and other equitable relief in case of any such
breach or attempted breach, and further agrees to waive any requirement for the securing or posting
of any bond in connection with the obtaining of any such injunctive or any other equitable relief.

     4.4 Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be prohibited by or invalid or unenforceable under applicable law, such
provision shall be ineffective to the extent of such prohibition, invalidity or unenforceability

9

 

without invalidating the remainder of such provision or the remaining provisions of this Agreement.

     4.5 Assignment. This Agreement may not be assigned by the Employee. Neither the Employee,
his spouse, nor his estate shall have any right to commute, encumber or dispose of any right to
receive payments hereunder, it being understood that such payments and the right thereto are
nonassignable and nontransferable. This Agreement may be assigned by the Company.

     4.6 Binding Effect. Subject to the provisions of Section 4.5 of this Agreement, this
Agreement shall be binding upon and inure to the benefit of the parties hereto, the Employee’s
heirs and personal representatives, and the successors and assigns of the Company.

     4.7 Captions. The section and paragraph headings in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

     4.8 Governing Law. This Agreement shall be construed and enforced in accordance with, and
governed by, the laws of Texas.

     4.9 Counterparts. This Agreement may be executed in multiple original counterparts, each
of which shall be deemed an original, but all of which together shall constitute the same
instrument.

     4.10 Survival of Certain Obligations. Employee’s obligations under Articles II and III
hereof shall survive any termination of Employee’s employment hereunder.

     4.11 Waiver. The waiver by either party of any right hereunder or of any breach of this
Agreement shall not operate as or be construed to be an amendment of this Agreement or a waiver of
any future right or breach.

     4.12 Gender. All references to the masculine pronoun herein are used for convenience and
ease of reading only and are intended and apply to the feminine gender as well.

     4.13 Dispute Resolution.

     (a) Employee and the Company agree that, except for the matters identified in Section
4.13(b) below, all disputes relating to any aspects of Employee’s employment with the Company shall
be resolved by binding arbitration. This includes, but is not limited to, any claims against the
Company, its affiliates or their officers, directors, employees, or agents for breach of contract,
wrongful discharge, discrimination, harassment, defamation, misrepresentation, and emotional
distress, as well as any disputes pertaining to the meaning or effect of this Agreement.

     (b) It is expressly agreed that this Section 4.13 shall not govern claims for workers’
compensation or unemployment benefits, or any claim by the Company against Employee which is based
on fraud, theft or other dishonest conduct of Employee.

10

 

     (c) Any claim which either party has against the other must be presented in writing by
the claiming party to the other within one year of the date the claiming party knew or should have
known of the facts giving rise to the claim. Otherwise, the claim shall be deemed waived and
forever barred even if there is a federal or state statute of limitations which would have given
more time to pursue the claim.

     (d) Each party may retain legal counsel and shall pay its own costs and attorneys’ fees,
regardless of the outcome of the arbitration. Each party shall pay one-half of the compensation to
be paid to the arbitrators, as well as one-half of any other costs relating to the administration
of the arbitration proceeding (for example, room rental, court reporter, etc.).

     (e) An arbitrator shall be selected by mutual agreement of the parties. If the parties
are unable to agree on a single arbitrator, each party shall select one arbitrator, and the two
arbitrators so selected shall select a third arbitrator. The three arbitrators so selected will
then hear and decide the matter. All arbitrators must be attorneys, judges or retired judges who
are licensed to practice law in the state where the Employee is or most recently was employed by
the Company. The arbitration proceedings shall be conducted within the county in which Employee is
or most recently was employed by the Company or at another mutually agreeable location.

     (f) Except as otherwise provided herein, the arbitration proceedings shall be conducted
in accordance with the statutes, rules or regulations governing arbitration in the state in which
Employee is or most recently was employed by the Company. In the absence of such statutes, rules or
regulations, the arbitration proceedings shall be conducted in accordance with the employment
arbitration rules of the American Arbitration Association (“AAA”); provided however, that the
foregoing reference to the AAA rules shall not be deemed to require any filing with that
organization, nor any direct involvement of that organization. In the event of any inconsistency
between this Agreement and the statutes, rules or regulations to be applied pursuant to this
paragraph, the terms of this Agreement shall apply.

     (g) The arbitrator shall issue a written award, which shall contain, at a minimum, the
names of the parties, a summary of the issues in controversy, and a description of the award
issued. Upon motion to a court of competent jurisdiction, either party may obtain a judgment or
decree in conformity with the arbitration award, and said award shall be enforced as any other
judgment or decree.

     (h) In resolving claims governed by this Section 4.13, the arbitrator shall apply the
laws of the state in which Employee is or most recently was employed by the Company, and/or federal
law, if applicable.

     (i) Employee and the Company agree and acknowledge that any arbitration proceedings
between them, and the outcome of such proceedings, shall be kept strictly confidential; provided
however, that the Company may disclose such information to the extent required by law and to its
employees, agents and professional advisors who have a legitimate need to know such information,
and the Employee may disclose such information (1) to the extent required by law, (2) to the extent
that the Employee is required to disclose same to professional persons assisting Employee in
preparing tax returns; and (3) to Employee’s legal counsel.

11

 

     4.14 Certain Definitions. The following defined terms used in this Agreement shall have
the meanings indicated:

     Change of Control. “Change of Control” means the happening of any of the following events:

     (a) The acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a
“Person”), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of 20% or more of either (A) the then outstanding shares of Common Stock of SCI (the
“Outstanding SCI Common Stock”) or (B) the combined voting power of the then outstanding voting
securities of SCI entitled to vote generally in the election of directors (the “Outstanding SCI
Voting Securities”); provided, however, that the following acquisitions shall not constitute a
Change of Control under this subsection (a): (i) any acquisition directly from SCI (excluding an
acquisition by virtue of the exercise of a conversion privilege), (ii) any acquisition by SCI,
(iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by
SCI or any corporation controlled by SCI, or (iv) any acquisition by any corporation pursuant to a
reorganization, merger or consolidation, if, following such reorganization, merger or
consolidation, the conditions described in clauses (A), (B) and (C) of subsection (c) of this
definition of “Change of Control” are satisfied; or

     (b) Individuals who, as of the effective date hereof, constitute the Board of Directors
of SCI (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board
of Directors of SCI; provided, however, that any individual becoming a director subsequent to the
date hereof whose election, or nomination for election by SCI’s shareholders, was approved by (A) a
vote of at least a majority of the directors then comprising the Incumbent Board, or (B) a vote of
at least a majority of the directors then comprising the Executive Committee of the Board of
Directors of SCI at a time when such committee was comprised of at least five members and all
members of such committee were either members of the Incumbent Board or considered as being members
of the Incumbent Board pursuant to clause (A) of this subsection (b), shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of either an actual or threatened
election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board of Directors of SCI; or

     (c) Approval by the shareholders of SCI of a reorganization, merger or consolidation, in
each case, unless, following such reorganization, merger or consolidation, (A) more than 60% of,
respectively, the then outstanding shares of common stock of the corporation resulting from such
reorganization, merger or consolidation and the combined voting power of the then outstanding
voting securities of such corporation entitled to vote generally in the election of directors is
then beneficially owned, directly or indirectly, by all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding SCI Common Stock and
Outstanding SCI Voting Securities immediately prior to such reorganization, merger or consolidation
in substantially the same proportions as their ownership, immediately prior to such

12

 

reorganization, merger or consolidation, of the Outstanding SCI Common Stock and Outstanding SCI
Voting Securities, as the case may be, (B) no Person (excluding SCI, any employee benefit plan (or
related trust) of SCI or such corporation resulting from such reorganization, merger or
consolidation, and any Person beneficially owning, immediately prior to such reorganization, merger
or consolidation, directly or indirectly, 20% or more of the Outstanding SCI Common Stock or
Outstanding SCI Voting Securities, as the case may be) beneficially owns, directly or indirectly,
20% or more of, respectively, the then outstanding shares of common stock of the corporation
resulting from such reorganization, merger or consolidation or the combined voting power of the
then outstanding voting securities of such corporation entitled to vote generally in the election
of directors and (C) at least a majority of the members of the board of directors of the
corporation resulting from such reorganization, merger or consolidation were members of the
Incumbent Board at the time of the execution of the initial agreement providing for such
reorganization, merger or consolidation; or

     (d) Approval by the shareholders of SCI of (A) a complete liquidation or dissolution of
SCI or (B) the sale or other disposition of all or substantially all of the assets of SCI other
than to a corporation, with respect to which following such sale or other disposition, (i) more
than 60% of, respectively, the then outstanding shares of common stock of such corporation and the
combined voting power of the then outstanding voting securities of such corporation entitled to
vote generally in the election of directors is the beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding SCI Common Stock and Outstanding SCI Voting Securities immediately
prior to such sale or other disposition in substantially the same proportion as their ownership,
immediately prior to such sale or other disposition, of the Outstanding SCI Common Stock and
Outstanding SCI Voting Securities, as the case may be, (ii) no Person (excluding SCI and any
employee benefit plan (or related trust) of SCI or such corporation, and any Person beneficially
owning, immediately prior to such sale or other disposition, directly or indirectly, 20% or more of
the Outstanding SCI Common Stock or Outstanding SCI Voting Securities, as the case may be)
beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding
shares of common stock of such corporation and the combined voting power of the then outstanding
voting securities of such corporation entitled to vote generally in the election of directors and
(iii) at least a majority of the members of the board of directors of such corporation were members
of the Incumbent Board at the time of the execution of the initial agreement or action of the Board
of Directors of SCI providing for such sale or other disposition of assets of SCI.

     Good Reason. “Good Reason” shall mean the occurrence of any of the following after a Change of
Control:

     (a) The Company requires the Employee to be relocated to such an extent that the Internal
Revenue Service requirements for a deductible relocation (currently 50 miles) are satisfied;

     (b) The Company materially reduces the responsibilities, authority or accountability of
Employee from the same in effect immediately prior to the Change of Control;

13

 

     (c) The Company reduces the base salary, Target Bonus or other compensation program
participation of Employee; or

     (d) The Company materially reduces the aggregate benefits of Employee.

     Partial Bonus. “Partial Bonus” shall mean a bonus equal to the product of (i) Employee’s most
recently set Target Bonus, and (ii) a fraction, the denominator of which is 365 and the numerator
of which is the number of days in the fiscal year being considered through the date of the
termination of Employee’s employment.

     Pro Rated Bonus. “Pro Rated Bonus” shall mean, a bonus equal to the product of (i) the bonus
Employee did not receive but would have received under Section 1.4(b) if he had remained an
employee through the end of the Employment Term, it being understood that the amount of such bonus
Employee would have received shall be determined by reference to the average amount of bonus
actually awarded to other officers who were at the same or comparable level of responsibility as
Employee immediately prior to his termination, and (ii) a fraction, the denominator of which is 365
and the numerator of which is the number of days in the fiscal year being considered through the
date of death, determination of disability or notice of termination of employment, whichever is
applicable. In the event that a majority of SCI officers do not receive a bonus for the fiscal year
being considered, then the Pro Rated Bonus shall not be applicable and Employee shall not be
entitled to a Pro Rated Bonus. The Pro Rated Bonus, if any, payable to Employee shall be paid
within 90 days after the date that bonuses, if any, are awarded for a majority of SCI officers for
the year being considered.

     Target Bonus. “Target Bonus” shall mean the percentage of salary or level of bonus for
Employee which is set by the Compensation Committee at the beginning of each year as an incentive
goal to be achieved (it being understood that the actual bonus eventually earned could be lesser or
greater than the Target Bonus).

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

	 	 	 	 	 	 	 
	 	 	“COMPANY”	 	 
	 
	 	 	 	 	 	 
	 	 	SCI Executive Services, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Curtis G. Briggs
 

	 	 
	 

	 	 	 	Curtis G. Briggs	 	 
	 

	 	 	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	“EMPLOYEE”	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ J. Daniel Garrison	 	 
	 	 	 	 	 

14

 

ADDENDUM TO EMPLOYMENT

AND NONCOMPETITION AGREEMENT

     This Addendum to the Employment and Noncompetition Agreement (“Addendum”) between SCI
Executive Services, Inc., a Delaware Corporation (the “Company”) and the undersigned executive of
the Company (the “Employee”), is executed as of December 1, 2005.

     The Company and the Employee have previously entered into an Employment and Noncompetition
Agreement (“Agreement”).

     This Addendum is intended to (i) supplement and modify such Agreement in order to comply with
applicable provisions of the Internal Revenue Code Section 409A, and (ii) extend the term of the
Agreement.

     This Agreement is modified effective as of December 31, 2005 as follows:

	 	1.	 	Notwithstanding the applicable provisions of this Agreement regarding timing of
distribution of payments, the following special rules shall apply in order for this
Agreement to comply with IRC §409A: (i) to the extent any distribution is to a
“specified employee” (as defined under IRC §409A) and to the extent such applicable
provisions of IRC §409A require a delay of such distributions by a six month period
after the date of such Employee’s separation of service with the Company, the
provisions of this Agreement shall be construed and interpreted as requiring a six
month delay in the commencement of such distributions thereunder, and (ii) in the event
there are any installment payments under this Agreement that are required to be delayed
by a six month period in order to comply with IRC §409A, the monthly installments that
would have been paid during such six month delay shall be accumulated and paid to the
Employee in a single lump sum within five business days after the end of such six month
delay, and (iii) the Company shall not have the discretion to prepay any installment
payments otherwise provided under this Agreement.
	 
	 	2.	 	To the extent of any compliance issues under Internal Revenue Code Section
409A, the Agreement shall be construed in such a manner so as to comply with the
requirements of such provision so as to avoid any adverse tax consequences to the
Employee.
	 
	 	3.	 	The term of the Agreement is hereby extended to December 31, 2006.

     EXECUTED as of the date first written above.

	 	 	 	 	 	 	 	 	 
	SCI Executive Services, Inc.	 	 	 	Employee
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Curtis G. Briggs
	 	 	 	 	 	/s/ J. Daniel Garrison
	 	 	 	 	 	 	 
	Name:

	 	Curtis G. Briggs
	 	 	 	Name:
	 	J. Daniel Garrison
	 

	 	 	 	 	 	 	 	 
	Title:

	 	Vice President	 	 	 	 	 	 

15

 

AMENDMENT TO EMPLOYMENT

AND NONCOMPETITION AGREEMENT

     THIS AMENDMENT to the Employment and Noncompetition Agreement (this “Amendment”)
between SCI Executive Services, Inc., a Delaware Corporation (the “Company”), and the
undersigned executive of the Company (the “Employee”).

     WHEREAS, the Company and Employee have previously entered into an Employment and
Noncompetition Agreement (the “Agreement”); and

     WHEREAS, this Amendment is intended to (i) supplement and modify such Agreement (including, if
applicable, any amendments or addendums thereto) in order to comply with Section 409A of the
Internal Revenue Code of 1986, as amended, and (ii) extend the term of the Agreement; and

     WHEREAS, the parties would like to make certain changes to the terms of the Agreement;

     NOW THEREFORE, Employee agrees with the Company, in consideration for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged and accepted, to amend
the Agreement as follows, effective as of the date this Amendment is executed as written below:

          4. Section 1.5(d). Section 1.5(d) is hereby amended by revising clauses (i), (ii) and
(iii) to be and to read as follows:

“(i) bi-weekly salary continuation payments calculated based on Employee’s rate of salary as in
effect immediately prior to Employee’s termination, which shall continue for a period equal to
two years from such date of termination, each of which shall be treated as a separate payment
obligation of the Company, (ii) any applicable Pro Rated bonus and (iii) continuation of
Employee’s Group Health and Dental coverage and Exec-U-Care program (including pursuant to the
Consolidated Omnibus Budget Reconciliation Act of 1986 (“Cobra”) to the extent applicable) for a
period of eighteen months beginning the month following such date of termination, with Employee
paying such amount of premiums as would have been applicable if Employee had remained an
employee of the Company.”

          5. Section 1.5(f). The paragraph numbered (3) in Section 1.5(f) is hereby amended to
be and read as follows:

          “(3) Continuation of Employee’s Group Health and Dental coverage and Exec-U-Care
program (including pursuant to COBRA to the extent applicable) for a period of eighteen
months beginning the month following such date of termination, with Employee

16

 

paying such amount of premiums as would have been applicable if Employee had remained
an employee of the Company.”

          6. Section 4.14. The definition of “Pro Rated Bonus” in Section 4.14 shall be amended
by revising its final sentence to be and to read as follows:

“The Pro Rated Bonus, if any, payable to Employee shall be paid during the period between
January 1st and March 14th of the calendar year immediately following
the date Employee ceases to be employed by the Company.”

     4. The Term of the Agreement is hereby extended to December 31, 2008.

          Except as is provided in this Amendment, the Agreement shall remain unchanged and continue in
full force and effect.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of this 30th
day of November, 2007.

	 	 	 	 	 	 	 
	 	 	SCI EXECUTIVE SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Curtis G. Briggs	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Curtis G. Briggs, Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ J. Daniel Garrison	 	 
	 	 	 	 	 
	 	 	J. Daniel Garrison	 	 

17

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