Document:

Exhibit 10.16 - Settlement agreement and release

    THIS
      AGREEMENT made as of the 11th day of January, 2006

    

    

    

    SETTLEMENT
      AGREEMENT & RELEASE

    

    

    BETWEEN:

    

    ASPREVA
      PHARMACEUTICAL CORPORATION

    1201-4464
      Markham Street

    Victoria,
      British Columbia

     

    

    (Hereinafter
      called the "Company")

    

    AND:

    

    STEVEN
      PIAZZA

    Victoria,
      BC

    

    

    (hereinafter
      called "Mr. Piazza")

    

    BACKGROUND
      FACTS

    

    
      

      
        	
                A.

              	
                Pursuant
                  to his employment agreement, dated December 7, 2004, (the “Employment
                  Agreement”) Mr. Piazza commenced employment with the Company on 20th
                  January, 2005, as Senior Vice President, Global Life Cycle
                  Management.

              

      

      

      
        	
                B.

              	
                Mr.
                  Piazza relocated to Victoria from Pennsylvania. Pursuant to the
                  Employment
                  Agreement, the Company provided him with a relocation allowance.
                  The
                  Company will provide further reimbursement to Mr. Piazza to assist
                  him to
                  relocate back to the United States.

              

      

      

      
        	
                C.

              	
                The
                  Company has advised Mr. Piazza that his employment will be terminated
                  for
                  business reasons, without cause, effective 12th
                  July, 2006. Until that time, Mr. Piazza will be on a leave of absence
                  and
                  the terms and conditions that govern his employment during that
                  time and
                  the subsequent termination of his employment are exhaustively set
                  out in
                  this agreement. 

              

      

      

      
        	
                D.

              	
                The
                  Company and Mr. Piazza wish to enter into this Settlement Agreement
                  to
                  settle conclusively all issues and disputes arising out of Mr.
                  Piazza’s
                  employment with the Company and the termination of Mr. Piazza’s employment
                  by the Company. 

              

      

       

    

    
      
        

      

    
      
        Settlement
          Agreement between Aspreva Pharmaceutical Corporation and Steven Piazza
Page
          1

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    THIS
      AGREEMENT WITNESSES THAT in consideration of the promises and the mutual
      covenants herein contained, the parties do hereby agree with each other as
      follows:

    

    Leave
      of Absence and Termination of Employment

    

    
      	
              1.

            	
              Mr.
                Piazza will be on a leave of absence from the Company from January
                11,
                2006 until July 12, 2006, (the “Leave of Absence”). During this time, Mr.
                Piazza will remain an employee of the Company but will not be required
                to
                report to work or to provide any other service to the
                Company.

            

    

    

    
      	
              2.

            	
              Mr.
                Piazza’s employment with the Company will end on July 12,
                2006.

            

    

    

    
      	
              3.

            	
              Mr.
                Piazza agrees that the terms and conditions of this Agreement meet
                all
                obligations that the Company has to Mr. Piazza during the Leave of
                Absence
                and arising out of the termination of Mr. Piazza’s employment (whether
                these obligations arise out of the Employment Agreement or otherwise),
                and
                that Mr. Piazza is not entitled to any compensation from the Company
                that
                is not provided for in this
                Agreement.

            

    

    

    
      	
              4.

            	
              The
                Company will not inform Citizenship and Immigration Canada, Service
                Canada
                (previously "Human Resources & Skills Development Canada"), including
                Regional Shared Services, Employer Services, the Canada Border Services
                Agency or the Department of Foreign Affairs, including any Canadian
                Consulate General, Canadian Embassy or Canadian High Commission of
                the
                cessation of Mr. Piazza’s employment, unless required to do so by law in
                which case Aspreva will notify Mr. Piazza as soon as
                practical.

            

    

    

    

    Payment
      by the Company to Mr. Piazza

    

    
      	
              5.

            	
              The
                Company will provide Mr. Piazza with the following compensation,
                on or
                before February 24, 2006:

            

    

    

    
      	 	
              a.

            	
              Pursuant
                to Article 18 of the Employment Agreement, a lump sum payment in
                the
                amount equivalent to six (6) months of base salary, less all applicable
                statutory deductions. The total gross amount of six months base salary
                is
                $165,000.00.

            

    

    

    
      	 	
              b.

            	
              A
                lump sum payment in the amount equivalent to 11 days’ wages of outstanding
                vacation pay to which Mr. Piazza is entitled, less applicable statutory
                deductions. The gross total amount of 11 days’ wages is
                $13,961.53.

            

    

    
       

      
        
          

        

      
        
          Settlement
            Agreement between Aspreva Pharmaceutical Corporation and Steven Piazza
Page
            2

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    
      	 	
              c.

            	
              A
                lump-sum payment in the gross amount of $39,600.00 in lieu of any
                bonus
                payment.

            

    

    

    
      	 	
              d.

            	
              A
                lump-sum payment of $25,000.00 to cover expenses incurred by Mr.
                Piazza in
                the relocation of his family and household to the United
                States.

            

    

    

    
      	 	
              e.

            	
              Reimbursement
                for any outstanding business-related expenses upon receipt of an
                approved
                expense reimbursement form.

            

    

    

    
      	
              6.

            	
              Mr.
                Piazza understands that the Company will withhold income tax and
                other
                statutory deductions from the gross settlement amount, and Mr. Piazza
                hereby indemnifies and holds the Company harmless in respect of any
                further assessment made against the Company for additional income
                tax or
                other statutory deductions that should have been made from the gross
                settlement amount.

            

    

    

    Benefits

    

    
      	
              7.

            	
              The
                Company will continue Mr. Piazza’s enrolment in MSP, until the
                31st
                July, 2006 and his extended health, and dental plans until 12th
                July, 2006, after which time Mr. Piazza will no longer be enrolled
                in
                these plans. If Mr. Piazza wishes to pursue the possibility of obtaining
                personal MSP, extended health, and/or dental coverage, it is his
                obligation to do so. Mr. Piazza acknowledges that the Company has
                no
                obligation to him relating to MSP, extended health, and/or dental
                coverage
                after these dates.

            

    

    

    
      	
              8.

            	
              The
                parties understand that Mr. Piazza’s eligibility for short term and long
                term disability insurance will end effective January 11, 2006, the
                date
                that Mr. Piazza began the Leave of Absence. Accordingly, the parties
                understand that Mr. Piazza will no longer eligible for short term
                or long
                term disability insurance coverage. Mr. Piazza acknowledges that
                the
                Company will have no obligation to him whatsoever relating to short
                term
                or long term disability insurance, including the fact that he will
                no
                longer be eligible for short term or long term disability
                benefits.

            

    

     

    
      	
              9.

            	
              Mr.
                Piazza may have the right to convert his group life-insurance policy
                to
                his own personal policy. If Mr. Piazza wishes to pursue this option,
                he
                acknowledges that it is entirely his obligation to pursue that matter
                with
                the insurer and arrange for this conversion himself. Mr. Piazza
                understands that there may be strict time deadlines with which he
                must
                comply if he wishes to pursue this conversion. Mr. Piazza acknowledges
                that the Company has no obligation to him whatsoever relating to
                life
                insurance.

            

    

    

    Career
      Counseling

    

    
      	
              10.

            	
              The
                Company will arrange for Mr. Piazza, mutually acceptable outplacement
                services up to a maximum cost of $5,000.

            

    

    

    
       

      
        
          

        

      
        
          Settlement
            Agreement between Aspreva Pharmaceutical Corporation and Steven Piazza
Page
            3

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Stock
        Options

    
      	
              11.

            	
              Notwithstanding
                Article 12 of the Employment Agreement, the Company will allow Mr.
                Piazza’s Stock Options to continue to vest throughout the period of his
                leave of absence. For greater clarity, Mr. Piazza’s options will continue
                to vest (at the rate of 7,133 per month for 6 months) in the ordinary
                course as though he were an active employee until 12th
                July, 2006, after which time no further options will vest.
                

            

    

    

    
      	
              12.

            	
              The
                Company will allow Mr. Piazza to continue to exercise his options
                with the
                assistance of Merrill Lynch under the existing “10B-5 Plan” and in the
                same manner as when he was an active employee, until July 12, 2006.
                The
                existing Plan will be reinstated by the Company on or before February
                10,
                2006. 

            

    

    

    Mr.
      Piazza’s Ongoing Obligations Under the Employment Agreement and Confidentiality
      Agreement and Assignment of Inventions

    

    
      	
              13.

            	
              Mr.
                Piazza agrees that he will honour and continues to be bound by Sections
                22
                (Confidentiality and Assignment of Inventions), 25 (Provisions
                Reasonable), 26 (Restrictive Covenant), 27 (Remedies), 34 (Surviving
                Obligations), and Schedule C (Confidentiality Agreement and Assignment
                of
                Inventions), of the Employment Agreement. With respect to Section
                2.6 of
                the Confidentiality Agreement and Assignment of Inventions, Mr. Piazza
                represents that he has returned to the Company, without making any
                copies,
                all items referred to in Section 2.6 and any other property belonging
                to
                the Company which he had in his possession. Mr. Piazza further covenants
                that if any other Company property comes into his possession, he
                will
                immediately return it to the Company without making any
                copies.

            

    

    

    Confidentiality

    

    
      	
              14.

            	
              Mr.
                Piazza will keep this Settlement Agreement, and all of its terms,
                strictly
                confidential. Mr. Piazza is only permitted to disclose the terms
                of this
                Settlement Agreement to his spouse and his legal and financial advisors,
                or as otherwise required by law or ordered by a Court of competent
                jurisdiction. If Mr. Piazza breaches this confidentiality clause,
                he
                hereby acknowledges that the Company will suffer irreparable harm
                by
                virtue of the breach and he hereby consents to the Company seeking
                injunctive relief to enforce this
                clause.

            

    

    

    

    Release
      Provisions and Related Covenants of Mr. Piazza

    

    
      	
              15.

            	
              Mr.
                Piazza does hereby remise, release and forever discharge the Company
                (which is defined throughout this Settlement Agreement to include
                the
                Company’s past and present officers, directors, servants, employees,
                agents, shareholders, related or associated companies and entities,
                and
                their predecessors, heirs, executors, administrators, successors
                and
                assigns, as the case may be) of and from all liability, damages,
                costs,
                and expenses of any nature or kind arising out of or in connection
                with
                all events that have occurred between the Company and him up to and
                including today’s date and
                all events related to his employment with the Company and
                all events related to the termination of his employment by the Company,
                and without limiting the generality of the foregoing, Mr. Piazza
                remises,
                releases, and forever discharges the Company of and from all liability,
                damages, costs, and expenses of any nature or kind arising out of
                or in
                connection with any and all actions, claims, or complaints that he
                ever
                had, now has, or may in the future have against the Company for the
                following: breach of contract; wrongful dismissal or constructive
                dismissal; tort; moving or relocation expenses; misrepresentation;
                negligent misrepresentation; bad faith discharge; any claim for damages
                or
                losses related to breach of the Human
                Rights Code;
                breach of the Employment
                Standards Act;
                breach of any other statute; loss of his position; loss of his status;
                loss of future job opportunity for him; damage to his reputation;
                loss of
                opportunity to enhance his reputation; loss of bonus; loss of his
                benefits; and/or loss of any stock options that would have vested
                in the
                future.

            

    

    
       

      
        
          

        

      
        
          Settlement
            Agreement between Aspreva Pharmaceutical Corporation and Steven Piazza
Page
            4

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    
      	
              16.

            	
              Mr.
                Piazza hereby covenants that he will not from this date forward commence,
                pursue, or maintain any proceedings against the Company relating
                to any of
                the actions, claims, or complaints described in paragraph 13 above.
                Without limiting the generality of the foregoing, Mr. Piazza hereby
                covenants that he will not commence, pursue, or maintain an action
                in
                court against the Company, a complaint under the Human
                Rights Code
                against the Company, or a complaint under the Employment
                Standards Act
                against the Company that is in any way connected or related to his
                employment with the Company, or the termination of his employment
                by the
                Company. 

            

    

    

    
      	
              17.

            	
              If,
                contrary to this Settlement Agreement, Mr. Piazza does commence,
                pursue,
                or maintain any proceedings against the Company, he hereby irrevocably
                consents to the Company relying on this provision in the Settlement
                Agreement to obtain a stay or dismissal of such proceedings. Mr.
                Piazza
                hereby irrevocably consents to such proceedings being stayed or
                dismissed.

            

    

    

    
      	
              18.

            	
              Mr.
                Piazza acknowledges that he understands that the Company is providing
                him
                with the consideration described earlier in return for his covenants
                and
                commitments in this Settlement Agreement, and also to gain the certainty
                that it will never have to defend itself against him in any of the
                actions, claims, or complaints that are described in Paragraphs 15
                and 16
                above.

            

    

    

    General
      Provisions

    

    
      	
              19.

            	
              If
                any part or provision of this Settlement Agreement or its application
                to
                any circumstance is restricted, prohibited or unenforceable, such
                part or
                provision will be ineffective only to the extent of such restriction,
                prohibition or unenforceability, and the remainder of the Settlement
                Agreement will remain in full force and
                effect.

            

    

    

    
      	
              20.

            	
              This
                Settlement Agreement settles all disputes between Mr. Piazza and
                the
                Company arising out of his employment with the Company and the termination
                of his employment by the Company, including any complaint under the
                Human
                Rights Code or
                the
                Employment Standards Act.

            

    

    
       

      
        
          

        

      
        
          Settlement
            Agreement between Aspreva Pharmaceutical Corporation and Steven Piazza
Page
            5

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    
      	
              21.

            	
              The
                law governing this Settlement Agreement is that of British Columbia,
                and
                the parties will resolve any disputes they have under this Settlement
                Agreement in the courts of British
                Columbia.

            

    

    

    
      	
              22.

            	
              The
                parties will execute this Settlement Agreement in
                counterparts.

            

    

    
       

      
        
          

        

      
        
          Settlement
            Agreement between Aspreva Pharmaceutical Corporation and Steven Piazza
            Page 6

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    
      	
              23.

            	
              Mr.
                Piazza has obtained independent legal advice about this Settlement
                Agreement prior to signing it.

            

    

    

    IN
      WITNESS WHEREOF the parties have entered into this Agreement effective the
      date
      first written above.

    

    

    
      	
              Duly
                executed on behalf of ASPREVA PHARMACEUTICAL CORPORATION

               

               

               

               /s/
                Martin Thornton

                

              

              Signature
                of Witness

            	
              )

              )

              )

              )

              )

              )

              )

              )

            	
               

               

               

               

               

              /s/
                Bruce G. Cousins

              
                

              

              Authorized
                Signatory

            
	 	 	 
	
               

              /s/
                Andrew Wong

              
                

              

              Signature
                of Witness

               

               

              
                
Name

               

              
                
Address
                

               

              
                
Occupation

            	
              )

              )

              )

              )

              )

              )

              )

              )

              )

              )

              )

              )

              )

            	
               

              /s/
                Steven Piazza

              
                
 STEVEN
                PIAZZA

            

    

     

    
      
        
          Settlement
            Agreement between Aspreva Pharmaceutical Corporation and Steven Piazza
            Page 7EX-10.3

Exhibit 10.3

PROMISSORY NOTE

February 15, 2006

$3,310,000.00

FOR VALUE RECEIVED, the undersigned, HyperFeed Technologies, Inc., a Delaware corporation
(“Borrower”), promises to pay to the order of PICO Holdings, Inc., a California corporation
(“Lender”), the principal sum of Three Million Three Hundred Ten Thousand Dollars and no cents
($3,310,000.00), together with the interest thereon at the rate of seven percent (7%) per annum,
commencing on the date hereof and continuing until the principal sum is paid in full. Interest
shall be computed on the basis of a 365-day year.

The parties acknowledge that Borrower borrowed the principal sum of $810,000 from Lender in a
Promissory Note dated December 20, 2005. The Parties also acknowledge that Borrower borrowed an
additional principal sum of $1,500,000 in a Promissory Note dated January 23, 2006.

The Parties agree that an additional principal sum of $1,000,000.00 shall be borrowed by Borrower
from Lender in this Promissory Note dated February 15, 2006 and that the principal sum borrowed by
Borrower from Lender in the December 20, 2005 Promissory Note, the January 23, 2006 Promissory
Note, and this February 15, 2006 Promissory Note totals $3,310,000.00. The Parties also agree that
the December 20, 2005 Promissory Note and the January 23, 2006 Promissory Note are hereby
cancelled.

The entire unpaid balance of, and all interest under, this Promissory Note shall be due and payable
no later than March 31, 2006. The indebtedness evidenced hereby may be prepaid in whole or in part
at any time without penalty. Any payment or prepayment shall be applied first to interest and
second to principal due and payable hereunder.

HyperFeed Technologies, Inc. covenants that, if suit be brought to enforce the payment of principal
or interest under the Promissory Note, it will pay PICO Holdings, Inc., such other amount as shall
be reasonable to cover the cost and expense of collection, including reasonable attorney fees.

HYPERFEED TECHNOLOGIES, INC.

/s/ Gemma Lahera 

Gemma R. Lahera

Principal Accounting Officer

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