Business of Questcor

EX-10.23 4 f87893exv10w23.txt EXHIBIT 10.23 Exhibit 10.23 [QUESTCOR LETTERHEAD] Charles J. Casamento Chairman, President & CEO May 2, 2000 Questcor Pharmaceuticals, Inc. 3260 Whipple Road Union City, CA 94587 Dear Ken: I am pleased to offer you the position of Vice President, Marketing and Sales for Questcor Pharmaceuticals, Inc. The terms of your offer are as follows: - - A base salary of $184,000 annually. - - An annual performance review and corresponding merit increase based on performance, each January 1, beginning in 2001. - - Stock options in the amount of 150,000 shares. The price will be determined as of the closing price on your first day of employment. Your options will vest monthly over a forty-eight month period with vesting beginning in month seven at which point you will be vested in 6/48ths of your options with another 1/8th being vested each month thereafter. - - Participation in our management bonus plan. Historically, our corporate officers have been eligible for a bonus equal to 33% ($61,000 in your case) of base salary. The exact amount to be paid will be determined based on achievement of agreed upon objectives. - - Participation in sales commission plan that will provide up to an additional $40,000 income based on over-achievement of the sales budget. 5/2/00 letter from C. Casamento Page 2 - ------------------------- - - You will participate in the Company's benefits, which are appropriate for individuals on a Vice President level. This includes medical, dental, life insurance, disability, 401-K plan and a company stock purchase plan. - - You currently have commission due from your current employer. They will not pay commission if you leave the company prematurely. To compensate for this we will pay a one-time bonus of $20,000 when you become employed by Questcor. - - We will provide you with six months severance should your employment be terminated. If the Company ever merges or is acquired and a severance plan is put in place providing for severance for a period of time different than six months, you will receive severance for the greater period of time. Ken, I believe you can make significant contributions to the growth and development of Questcor. I look forward to a mutually beneficial working relationship. Sincerely, Accepted by, /s/ Charles J. Casamento /s/ Kenneth R. Greathouse - --------------------------- ---------------------------- Charles J. Casamento Kenneth R. Greathouse Chairman, President and CEO Questcor Pharmaceuticals, Inc. Date: May 2, 2000 Date: 5/3/00 ---------------------- ------------------------------- CJC:ls